Giant Announces 2017 Financial Results, Profitability Continues to Decline

Giant announced its 2017 financial report, which reported revenue of NT$55.21 billion (approximately US$1.9 billion) last year, a year-on-year decrease of 3.5%, net profit after tax of NT$2.05 billion (approximately US$70 million), and a 33% year-on-year decrease. , EPS 5.48 yuan NT.

The report shows that the total production and sales volume of bicycles and electric bicycles in 2017 was 4.4 million units, a decrease of 3.5% from 2016, and the core factor was still due to the weak Chinese market. Giant’s European and US markets performed well. Without taking into account exchange rate factors, both markets have seen double-digit growth.

The main growth momentum of the European market came from the hot sales of high-end electric bicycles. The annual sales grew by more than 40%. The US bicycle market was relatively stable last year, but Giant performed better than other brands and performed well in the US market. The Chinese market continues to slump.

For 2018, Giant estimates that there will be single-digit growth in annual revenue. Mainly because of the addition of electric bicycles to Europe, Giant is expected to bring a wave of growth in other markets. Worryingly, the Chinese market expects the decline to shrink.

In the report, Giant said that it will enhance the Group’s automation management and production levels and will strengthen its online sales channels.