Giant group BOD today (Mar. 25) approved Giant group’s 2021 financial report. The surge in bicycle demand continued last year since the start of the pandemic in 2020, in addition demands for E-Bikes continue to grow in both US and European countries which aided Giant group’s sales growth reaching consolidated sales of NT$81.8billion, growth of 17%. The strong market demand continues to improve capacity utilization rates within the Giant group’s production facilities, further the increase in Giant group’s own brand E-Bike sales contribution also pushed Giant group’s profitability to historic record with 19.8% increase in net profit after tax to NT$5.93billion with EPS at NT$15.80. A cash dividend of NT$10 per share was also approved during the BOD meeting and this dividend payout will be announced in the annual general meeting on 23^rd of June. At the same time, the BOD has also approved a capital increase through issuing of 17,000,000 new shares and to issue conversion bond of NT$4billion. This additional capital raised would be used mainly in repaying of existing loans as well as improving overall company financial position.

In Q4 of 2021 Giant group managed to overcome raw material and container shortage which enable Giant group to report a quarter consolidated sales of NT$19.9billion, a 13.6% increase compared to previous year. However further increase in raw material cost, logistic expenses as well as unfavorable exchange rate impacted group’s gross margin. Fourth quarter net profit after tax came at NT$1.1billion, a decreased of 16.5% compare to last year and reported EPS at NT$2.93.

Looking at 2022, inflation, conflict between Russia and Ukraine will bring more uncertainties to the overall business environment; further increase in operation costs would also put pressure on profitability. However, as the world transitions into a post-pandemic New Normal, people will be more health-conscious than ever, continuing to engage with nature outdoors and with each other online through indoor cycling. Hence, Giant Group expects this would continue to support the growth of mid to high cycling products. In addition, consensus in environment protection continue to grow across the world, nations are taking more actions in reducing carbon emission, hence creating more cycling friendly environment to encourage bike commute to solve traffic congestion issues which will increase the cycling population.