Giant Group BOD today approved Giant Group’s 9M23 financial report, consolidated sales are NT$62.1billion, a decrease of 12.4% YoY. Although the strong growth from the China domestic market, however, the weak demand from the US and Europe markets on the entry to mid-level products and the high inventories within the distribution network resulted in the decline in sales. In 9M23, net income after tax came to NT$3.12billion, a decrease of 44.6% YoY, and EPS were NT$7.96.

3Q23 consolidated sales for the group operating came at NT$19.52billion, a decrease of 24.6% compared to last year. This is due to a reduction in orders placements from OEM customers. In terms of non-operating income, due to the strong USD performance helped to offset the interest expenses increase in 3Q23, net income before tax came at NT$1.51billion, a decrease of 49% YoY and net income after tax came at NT1.10billion, a decrease of 45% YoY. EPS were NT$2.81.

This year inventory reductions in both the US and Europe markets were slower than expected which affected sales performance for Giant’s OB sales in both the US and Europe markets for the first 3 quarters but China domestic sales saw close to 70% sales increase which compensated the sales decline in the US and Europe. Due to the increase popularity in cycling for recreation and fitness that started a huge cycling trend in China. Giant Group has been operating in the China market for over 30 years establishing sales and service integration from online to offline, activating social media marketing and over 2,500 exclusive dealers organizing group rides that supported performance product sales which led to growth in both volume and ASP that strengthen Giant’s leading market position in China.

E-Bike sales (OB+OE) for the first 3 quarters of this year contributed 32% of Giant Group sales. Although E-Bike sales performance were impacted due to the slow down in consumer demand, however, in the mid to long run Giant continues to project the growth in this category.

Short term market outlook, the bicycle industry would continue to face challenges with inventory reduction as well as the business risks arise from the global economy. However, demand for performance level products in the US and Europe remain strong and the cycling trend in China will continue to support sales growth.