TAICHUNG, Taiwan (BRAIN) — Despite concerns over protectionism, ongoing trade disputes and a continued slowdown in China, Giant Manufacturing Ltd. reported the second highest annual revenue in its history.
In 2018, the manufacturing powerhouse generated $1.95 billion (NT $60.24 billion), a 9.1 percent increase over 2017. King Liu founded the company, which began its initial growth as a supplier to the Schwinn company.
In its annual report released Tuesday, Giant said income before taxes was up 46.3 percent to $137.8 million. Its after-tax revenue was $92.8 million. And Giant’s shareholders will get a slice of the company’s good fortune with earning per share of 25 cents (NT $7.64) and a per share dividend of 15 cents (NT $4.60).
In a release, Giant said its growth was powered by strong demand for e-bikes bolstered by favorable foreign exchange rates. That boosted its gross margin adding 39.4 percent to the company’s bottom line.
“Giant’s strength in manufacturing high quality products and its brand positioning enabled Giant to perform in both Europe and North America,” the company said. Europe was a clear bright spot for the Taiwan manufacturer where it saw double-digit growth.
“Within this growth, Giant’s e-bikes equipped with Giant’s proprietary SyncDrive system saw sales growth over 40 percent compared to 2017,” the company said.
But a continued soft market in China hurt Giant’s growth — last year its annual sales declined 20 percent. Still, Giant saw an uptick in sales in the fourth quarter helped by what it said was a “significant” slowdown among Chinese consumers using bike share programs.
Despite China’s economic turbulence, Giant remains the market leader and foresees a growing market in the future.
“Giant continues to stand by its belief in creating new cycling lifestyles through developing innovative and trending products,” it said. That will also depend on creating shorter and more responsive supply chain logistics and boosting higher quality service online and in the store, the company added.
