Merida’s sales revenue of 2017 was down by 2% from the year before.  The sales quantity was 22% down from the prior year.  China market has continued to get worse largely due to the impact from share bikes.  Europe and USA markets are both seeing significant growth on higher value e-bikes. 

Though the sales revenue was only down by 2%, the profit has suffered more from various unfavorable situations.  The exchange rate fluctuation has created significant loss and the gain from investment was less than before.  The net profit in 2017 was NT$798.47 million, 58.31% down from the prior year.

The 2017 financial statement was approved in the 2nd Board of Directors meeting on Mar 27th.  The EPS was NT$2.67. The Board of Directors also proposed that the General Meeting of shareholders scheduled for June 26th approve a dividend of NT$2 per share for 2017.

The main reason to report a loss on long term equity investment for 2017 is because SBC company has listed a large one-time tax expense due to Trump’s tax reform.  SBC’s result became loss and resulted in a reduction of NT1.8 on Merida’s EPS.  However, the lower tax rate going forward will be beneficial to SBC in the long term.

The 2 major markets USA and Europe are both showing signs of recovery for the bicycle market.  The e-bike demands are particularly strong.  Merida Taiwan factory has grown by 1.6% on quantity and 33.9% on revenue for Jan and Feb.  E-bike has grown by over 70%.  It’s likely that the 2018 result will be better off than the past 2 years.