Core Viewpoint - J-Star Holding Co., Ltd. is strategically exiting its China operations to focus on expansion in the United States, automation-driven manufacturing, and innovation-led growth in response to geopolitical uncertainties and evolving regulatory dynamics in China [1][2][3]. Strategic Rationale and Key Initiatives - The company plans to establish its first automated production line in the United States while significantly reducing its activities in China, aligning with its long-term vision of high-value innovation [3][6]. - J-Star will write off two minority manufacturing investments in China, valued at approximately US$1.7 million, and dissolve its wholly owned subsidiary, Bohong Technology Jiangsu Co., Ltd., which has no active operations [5]. - The company will retain Dongguan Changrong New Material Technology Co., Ltd. for limited trading purposes during the transition [5]. - Management believes these actions will enhance operational flexibility and position the company for sustainable long-term growth, particularly in the U.S. market [6]. Focus Areas - J-Star is transitioning away from traditional OEM manufacturing in China, emphasizing proprietary design, research and development, and intellectual property creation [7]. - The company is preparing to develop its first automated production line in the U.S. to improve efficiency and supply-chain resilience [7]. - J-Star will adopt an asset-light operating model by leveraging third-party manufacturers for production, ensuring competitive costs while maintaining quality [7]. - Resources will be reallocated towards advanced material development, product design, and automation capabilities, which are seen as central to the company's long-term competitive advantage [7].