Merida Industry Co (美利達) has seen signs of recovery in the US and European markets this year, as customers are gradually depleting their inventories, the bicycle maker told shareholders yesterday.
Given robust growth in new orders at its Taiwanese factory, coupled with its subsidiaries’ improving performance, Merida said it remains confident about the bicycle market’s prospects and expects steady growth in its core business this year.
CAUTION ON CHINA
Photo: Ritchie B. Tongo, EPA-EFE
However, the company must handle the Chinese market with great caution, as sales of road bikes there have declined significantly, affecting its revenue and profitability, Merida said in a statement, adding that it would continue to control inventory and flexibly adjust market strategies in that market.
Merida is a leading mid to high-end bicycle manufacturer, which distributes its products under the Specialized and Merida brands. The company is a major player in the bicycle industry and Taiwan's second-largest bicycle manufacturer after Giant Manufacturing Co (巨大機械). Merida has a global market share of around 2 percent, according to SinoPac Securities Investment Service Corp's (永豐投顧) estimate.
Cumulative revenue in the first five months of this year edged up 0.9 percent year-on-year to NT$12.06 billion (US$410.3 million). Net profit in the first quarter rose 0.7 percent from a year earlier to NT$418.53 million, or earnings per share of NT$1.4, company data showed.
During the company’s earnings conference on May 22, Merida said that the New Taiwan dollar’s rapid appreciation early last month would affect its revenue and profits in the second quarter.
The company might seek pricing adjustments if the NT dollar continues to strengthen, it said.
As for the US’ baseline tariff of 10 percent on all imports, Merida said brand customers have raised retail prices for the US market and so far, had not asked the company to share the costs.
Regarding the US’ so-called “reciprocal” tariffs, the company would respond according to the government’s negotiations with the US, it said.
CASH DIVIDENDS
Shareholders yesterday approved a proposal to distribute a cash dividend of NT$4 per share, even though the company posted a loss per share of NT$2.34 last year.
Merida’s revenue last year rose 8.7 percent year-on-year to NT$29.63 billion and operating profit reached NT$3.03 billion, from NT$3.39 billion the previous year.
However, with significant non-operating losses of NT$3.77 billion due to one-time impairments, including a deferred income tax asset write-down and goodwill impairments related to its retail operations, the company reported a net loss of NT$766.17 million for last year.
The company decided to use its retained earnings to reward shareholders, as the non-operating losses for last year did not involve cash outflows and it remains confident about the outlook for the bicycle business this year, Merida said.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday said its materials management head, Vanessa Lee (李文如), had tendered her resignation for personal reasons. The personnel adjustment takes effect tomorrow, TSMC said in a statement. The latest development came one month after Lee reportedly took leave from the middle of last month. Cliff Hou (侯永清), senior vice president and deputy cochief operating officer, is to concurrently take on the role of head of the materials management division, which has been under his supervision, TSMC said. Lee, who joined TSMC in 2022, was appointed senior director of materials management and
Nvidia Corp CEO Jensen Huang (黃仁勳) on Thursday met with US President Donald Trump at the White House, days before a planned trip to China by the head of the world’s most valuable chipmaker, people familiar with the matter said. Details of what the two men discussed were not immediately available, and the people familiar with the meeting declined to elaborate on the agenda. Spokespeople for the White House had no immediate comment. Nvidia declined to comment. Nvidia’s CEO has been vocal about the need for US companies to access the world’s largest semiconductor market and is a frequent visitor to China.
MAJOR CONTRIBUTOR: Revenue from AI servers made up more than 50 percent of Wistron’s total server revenue in the second quarter, the company said Wistron Corp (緯創) on Tuesday reported a 135.6 percent year-on-year surge in revenue for last month, driven by strong demand for artificial intelligence (AI) servers, with the momentum expected to extend into the third quarter. Revenue last month reached NT$209.18 billion (US$7.2 billion), a record high for June, bringing second-quarter revenue to NT$551.29 billion, a 129.47 percent annual increase, the company said. Revenue in the first half of the year totaled NT$897.77 billion, up 87.36 percent from a year earlier and also a record high for the period, it said. The company remains cautiously optimistic about AI server shipments in the third quarter,
Hypermarket chain Carrefour Taiwan and upscale supermarket chain Mia C’bon on Saturday announced the suspension of their partnership with Jkopay Co (街口支付), one of Taiwan’s largest digital payment providers, amid a lawsuit involving its parent company. Carrefour and Mia C’bon said they would notify customers once Jkopay services are reinstated. The two retailers joined an array of other firms in suspending their partnerships with Jkopay. On Friday night, popular beverage chain TP Tea (茶湯會) also suspended its use of the platform, urging customers to opt for alternative payment methods. Another drinks brand, Guiji (龜記), on Friday said that it is up to individual
RSS