Merida announced its 2017 financial report. The financial report showed that the net profit before tax last year was NT$798 million (US$27 million), a year-on-year decrease of 58.31%, EPS of NT$2.67, the lowest since 2004. Passed by the board of directors of Merida, the dividend per share was NT$2, which was the lowest in nearly ten years. It was calculated at NT$131.50 yesterday and the interest rate was 1.52%.
The bicycle giant from Changhua, Taiwan, said that shared bicycles have affected the company’s revenue in the Chinese mainland market. Like Giant, the growth of the European and American electric bike market is the main source of Merida’s growth in the winter of the bicycle market.
Last year, sales of bicycles decreased by 22% year-on-year. The sales amount declined slightly by 2% from last year. However, the profitability was greatly fluctuating by the international currency exchange rate. The appreciation of the NT and the loss of long-term investment income outside the industry caused the overall profit to decline significantly. In particular, the largest OEM customer, and SBC (which is also the largest shareholder of SBC), is the second largest bicycle company in the United States. As a result of Trump’s tax reform, the company turned the company from profitable to loss, which in turn dragged on Merrill’s overall profitability.
Merida believes that demand for electric bicycles in Europe and the United States will continue to be strong this year. Accumulated exports and values in January-February this year are 1.6% and 33.9% higher than the same period of last year, respectively. Among them, electric bike exports have grown by 70% year-on-year, so they are optimistic about this year. Operation is expected to surpass the slump in performance in the past two years.