J-Star Holding shares surge 27.27% after-hours as company exits China operations, focusing on U.S. expansion and automation to mitigate geopolitical risks.

J-Star Holding Co. surged 27.27% in after-hours trading following its announcement to exit China operations and reallocate resources toward U.S. expansion, automation, and innovation-driven growth. The strategic shift, driven by geopolitical uncertainties and regulatory challenges in China, includes writing off $1.7 million in China investments and establishing an automated production line in the U.S. to enhance efficiency and supply chain resilience. The move aligns with broader industry trends of reducing China exposure and emphasizes an asset-light operating model, leveraging proprietary materials and third-party manufacturing. Management highlighted the decision as a proactive risk-mitigation strategy to strengthen long-term competitiveness, particularly in key markets like the U.S. Institutional investors, including Citadel Advisors and Two Sigma, also added shares in Q3 2025, signaling confidence in the strategic realignment.