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Giant Group annual revenues up 17%, to $2.9 billion

Published March 25, 2022

TAIPEI, Taiwan (BRAIN) — Giant Group says its full-year 2021 sales were 81.8 billion New Taiwan dollars ($2.85 billion), up 17% from 2020.

"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 U.S. and European countries," the company said.

Giant also hit record profit levels, with its net profit after tax at NT$5.93 billion and earnings per share at NT$15.80. The net profit after tax was up 19.8% from 2020.

The giant Group board approved a cash dividend of NT$10 per share at a recent meeting. The board also approved a capital increase through issuing of 17,000,000 new shares and to issue conversion bond of NT$4 billion. "This additional capital raised would be used mainly in repaying of existing loans as well as improving overall company financial position," the company said. 

On a quarterly basis, Giant Group said its revenues were NT$19.9 billion in the fourth quarter of 2021, a 13.6% increase. However, an increase in raw material cost, logistic expenses, and unfavorable exchange rate affected Giant's gross margin in the quarter.  Fourth quarter net profit after tax came at NT$1.1billion, a decrease of 16.5% compared to 2020 final quarter.

"Looking at 2022, inflation, (and the) 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," Giant said.

"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 a more cycling-friendly environment to encourage bike commuting to solve traffic congestion issues, which will increase the cycling population."

Topics associated with this article: Electric bike, Earnings/Financial Reports

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