Description of J Star Holding Co Ltd's Business Segments
The company's reportable operating segments for the years ended December 31, 2025, 2024, and 2023 include Bicycle Frame, Racket, Crank, Service Provision, and Others. Bicycle Frame segment revenues were $4,678,501 (47.1%) in 2025, $14,400,846 (82.0%) in 2024, and $15,219,005 (64.0%) in 2023. Racket segment revenues were $184,663 (1.9%) in 2025, $1,684,837 (9.6%) in 2024, and $7,042,493 (29.6%) in 2023. Crank segment revenues were $1,515,032 (15.3%) in 2025, $686,657 (3.9%) in 2024, and $0 in 2023. Service Provision segment revenues were $3,160,000 (31.8%) in 2025 and $0 in both 2024 and 2023. Others segment revenues were $388,323 (3.9%) in 2025, $791,645 (4.5%) in 2024, and $1,516,454 (6.4%) in 2023.
In 2025, the company transitioned from an original equipment manufacturer (OEM) model to a trading business model by outsourcing production to manufacturers in the People's Republic of China, resulting in the recognition of net revenue rather than gross revenue. Revenue decreases were influenced by strategic decisions to move away from low-margin customers, contraction in the global bicycle market, changes in transaction models and sales arrangements, and the disposition of Dongguan YMA and Dongguan Forwell in April 2023. The company anticipates recognizing gross revenue again in 2026 through improvements in accounting support documentation.
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