TAICHUNG, Taiwan (BRAIN) — On Wednesday, Giant Group's board approved its full 2023 financial report, which shows consolidated sales of NT$76.95 billion ($2.44 billion), an annual decline of 16.4%.
The company said weak demand for entry-level and mid-level products in North America and Europe contributed to the decline, as did high inventory in the channel. On the other hand, the company said it had seen "huge" bicycle sales growth in China.
Giant's net profit before tax declined by 45.1% to NT$4.8 billion; net profit after tax came at NT$3.4 billion, a decrease of 41.8% and earnings per share were NT$8.68. The board approved a cash dividend of NT$5.
Since the start of 2024, Giant's revenues have not improved. January revenues were down 18% from the year prior and February was down 27%.
Giant said e-bikes — sold under its own brand and made for other brands — provided 30% of its revenue last year.
"E-bikes not only align with the current green energy trend but through product diversification, new innovative products developments and offerings would cater more towards consumers’ lifestyle and broaden global cycling population," the company said. It said it saw a reduction in e-bike sales in 2023 but said in the mid- to long-term, e-bikes would be "the main growth driver in the cycling market."
The company said that in 2024 industry will continue to deal with the excess inventory challenge, as well uncertainties in the economy. However it said Europe and North America show strong demand for performance-level products while sales in China will continue to grow.
It noted that its 10th generation Giant TCR road bike and other new products were well received at last week's Taipei Cycle show, "hence Giant Group is optimistic with the long-term development of the cycling industry."
