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The Giant Group has announced that its first half revenues were NT$37.23 billion – approximately £900 million – a 12.6% decline from the same period in 2023.
According to an update issued earlier this week, due to profit growth in China, group gross margin rate was at 21.3%, net profit after tax was NT$1.67 billion, which equates to around £40 million.
This represents a decrease of 17.1% from the same period last year.
As the sales of high-end bikes in China’s domestic market continued to be strong, Giant Group consolidated revenue in the second quarter was NT$21.17 billion (£520 million), a slight decrease of 5.8% from the same period last year.
Due to the increase in the proportion of own brands, group gross margin rate to rebound to 22.2%, net profit after tax was NT$1.15 billion (£28 million).
This was a decrease of 2.5% compared with the same period last year.
A spokesperson for the Giant Group, which owns Giant, Liv, Momentum and Cadex brands, commented: “Looking forward to the second half of the year, inventory adjustments in the European and American markets will return to normal, and the cycling trend in the Chinese market will continue to drive performance growth.
“It can be expected that the group’s operations will gradually improve.”
This latest set of financial results marks a significant improvement on those published after Q1.
Sales in that period, when compared to 2023, fell by 20.2% with post-tax profits down 37.8%.
At the time, a statement from the group continued to focus on the Chinese market as a positive driver for its performance, with too much inventory still an issue in Europe and America.
The statement read: “In terms of own brand sales performance, bicycle sales in China in [the] first quarter remain strong .
“This is mainly due to an increasing trend in sports and recreation which supported the sales of mid to high end bicycles.
“With the launch of new models, Giant expects to see continued sales growth in China.”
