Fri, May 12, 2017 - Page 12 News List

Giant’s net income falls on slowing Chinese demand

By Kuo Chia-erh  /  Staff reporter

Bicycle maker Giant Manufacturing Co Ltd (巨大機械) yesterday said that first-quarter net profit plunged 39.6 percent year-on-year to NT$516 million (US$17.08 million), dragged down by declining sales and volatile foreign-exchange rates.

That translates into earnings per share of NT$1.38, compared with NT$2.27 per share over the same period last year.

Revenue shrank 5.9 percent annually from NT$14.35 billion to NT$13.51 billion, a company statement said.

Sales volume declined 7.9 percent from 1.26 million bicycles to 1.16 million units on an annual basis, company data showed.

Giant, which has more than 12,000 dealers in 80 countries, attributed the sluggish performance to slowing demand in the Chinese market and a strong New Taiwan dollar.

China contributes nearly 18 percent to the company’s overall sales, while Europe and the US account for 31 percent and 21 percent respectively, company data showed.

The bicycle manufacturer foresees a challenging year amid an uncertain sales outlook for the Chinese market, despite the bike-sharing boom there.

Giant mainly provides high-end products, such as road bikes and touring bikes, but Chinese bike-sharing platform operators tend to purchase low-priced bikes for commuters, the company said.

Giant is relatively positive about its electric bike business, saying its revenue contribution is expected to rise to 10 percent from 7 percent, buoyed by demand in Europe.

Giant shares rose 2.8 percent to NT$183.50 in Taipei trading yesterday, outpacing the TAIEX, which climbed 0.33 percent to 10,001.48 points.

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