The Giant Group reported a 5.3 percent increase in revenues to a record 63,449 million New Taiwan dollars (€1.9bn-$2.1bn) in 2019, boosted by the rising popularity of e-bikes, especially in Europe, where sales gained about 13 percent to NT$ 18,667 million (€571.6m-$617.4m). Collectively, the Taiwanese bike manufacturer’s brands - Cadex, Giant, Liv and Momentum - collectively posted double-digit growth in the region, with an increase in e-bike sales of over 40 percent.
The group, which was previously called Giant Manufacturing, also benefited from the recovery of the bicycle market in China, where sales grew at a double-digit rate. As a result, the company’s total sales in Asia inched up by 2 percent to NT$ 36,173 million (€1.1bn-$1.2bn).
In the Americas, the company’s revenues progressed by 5 percent to NT$ 6,341 million (€194.3m-$206.7m) thanks to better product optimization. Other regions rose by 6 percent to NT$ 2,268 million (€69.5m-$75.0m).
Overall, Giant’s gross margin moved up by 0.8 percentage points to 21.5 percent, lifted by strong turnover and partly offset by increased marketing spending.
Net income jumped by 17.8 percent to NT$ 3,375 million (€103.4m-$110.0m).
The management pointed out that its factories in Kunshan and Tianjin, China, have now resumed normal operations after shutting down during the coronavirus outbreak, and a new Hungarian factory will begin production in the middle of this year. The Taiwanese factory has continued to roll out automation to enhance production capacities.
The group has adopted a new brand structure in a bid to consolidate resources. The producer’s Original Equipment Manufacturing business is run separately from the production and sale of its consumer brands: Cadex, Giant, Liv and Momentum. They are in turn separated from The Cycling Lifestyle Foundation, YouBike and the Giant Travel Agency.
