Giant Group today (May 8) announced its financial results for the first quarter of 2026. Consolidated revenue totaled NT$12.52 billion, with an EPS of NT$ -0.51, primarily due to last year’s high comparison base and structural normalization of the OEM business mix. Despite these factors, gross margin rate maintained its upward trend to reach 19.6%, up from 17.8% year-over-year, reflecting the successful market launch of high-margin new products under the Group’s own brands.
Product Mix Optimization Supports Margin Resilience
While Q1 revenue was impacted by normalization of OEM business mix following an elevated prior-year comparison base and softer demand, the Group continued to improve profitability through product mix optimization strategy and a stronger contribution from premium innovation and higher-value products in the own brand business. As a result, the Group’s gross margin showed resilience, rising to 19.6% from 17.8% year-over-year.
Sound Financial Health: One-off Impact Does Not Alter Long-term Growth
The Operating expense ratio increased to 21.2%, primarily due to a one-time recognition of approximately NT$80 million in WRO-related costs. The Group states that this case has entered its final stage and is not expected to have any further impact on future earnings. Although the Group recorded a net loss after tax of NT$200 million for the quarter, continued growth in Vietnam’s manufacturing operations and the E-bike OEM business highlights resilient demand in key segments.
Announcing Share Buyback and Wind Tunnel Investment
To protect shareholder interests and motivate employees, the Board today officially approved a share buyback program (treasury shares), with repurchased shares to be transferred to employees. This reflects management’s proactive response to the current market valuation. In addition, the Board approved a capital investment in a new wind tunnel laboratory featuring world-class aerodynamic testing capabilities, which will serve as a critical platform for advancing Giant Group’s expertise in cycling science and the development of professional-grade racing products.
Outlook: Entering Peak Season with Improving Performance
Looking ahead, the Group expects market conditions to gradually improve as the industry enters the traditional peak season in the second and third quarters, supported by the launch of new products and improving retail demand. Giant Group will continue to leverage its global manufacturing footprint and vertically integrated capabilities to enhance operational resilience and efficiency, and continue to drive innovation in support of global sustainable mobility.
