The latest financial report shows that Giant Group encountered challenges in early 2024: compared with the same period last year, total sales in the first quarter of this year fell by 20.2% to NT$16.06 billion (approximately 45.9 million euros). However, with the arrival of April, the market has shown signs of positive recovery, bringing hope to the group.
Quarterly sales decline
Although the popularity of cycling activities in China has led to an increase in bicycle sales, this positive trend has not been able to fully offset the continued inventory reduction in the European and North American markets and the adjustment of OEM customer orders.
Against this background, Giant Group announced its financial report that its net profit after tax fell 37.8% year-on-year to NT$520 million (approximately 14.9 million euros). At the same time, the group also adjusted its earnings per share (EPS) to NT$1.33 (approximately 0.038 euros).
Improved performance in April
After a slightly weak market performance in the first quarter of 2024, Giant Group experienced a significant improvement in April. Although sales in the first three months of the year showed double-digit declines, sales in April showed a positive change. The year-on-year decline in monthly sales narrowed to 1.75%, and total monthly revenue reached NT$6.9 billion. yuan (approximately 19.74 million euros). Although it is too early to tell whether this is a new trend that will continue in the coming months or just a short-term recovery, this positive sign undoubtedly injects confidence into the market.
Chinese bicycle market
Regarding the current sales performance, the company made it clear in its latest statement that the Chinese market continued to perform strongly in bicycle sales in the first quarter. "This performance is mainly attributed to the increasing popularity of sports and leisure activities, which has strongly promoted sales growth in the mid-to-high-end bicycle market. With new models being launched one after another, we are confident that this market will continue to grow."
The popularity of China's road bicycle market became one of the hotly discussed topics at the China International Bicycle Exhibition held in Shanghai from May 5 to 8. This event attracted many bicycle enthusiasts and further promoted the popularity of "cycling culture". Giant reports that its latest tenth-generation carbon fiber road performance bike, TCR, and other innovative products have received enthusiastic praise from consumers and industry experts.
