TAIPEI, Taiwan (BRAIN) — Giant Group's sales in the first three quarters of the year were NT$62.1 billion ($1.97 billion), a decrease of 12.4% from the same period last year. The manufacturer's net income after tax was NT$3.12 billion, a 45% decrease year-over-year.
The company said it has had strong growth in China, "however, the weak demand from the US and Europe markets on the entry to mid-level products and the high inventories within the distribution network resulted in the decline in sales."
"This year inventory reductions in both the U.S. and Europe markets were slower than expected, which affected sales performance for Giant's OB (own brand) sales in both the U.S, and Europe markets for the first three quarters, but China domestic sales saw close to 70% sales increase which compensated the sales decline in the U.S. and Europe. Due to the increased popularity in cycling for recreation and fitness that started a huge cycling trend in China," the company said.
E-bike sales, both under Giant's brands and to OE customers, contributed 32% of Giant's sales through the first three quarters.
"Although e-bike sales performance were impacted due to the slowdown in consumer demand, however, in the mid to long run Giant continues to project the growth in this category," the company said.
Giant said the industry will continue to face inventory challenges and risks from the global economy. However it said demand for performance level bikes remains strong in Europe and the U.S. and the trend in China will support sales growth.
