Taiwan's two largest bicycle companies, Giant and Merida, both saw a return to healthy profit and revenue growth in 2018. Although continuing to be affected by the poor Chinese domestic market, both companies issued financial reports which showed that the growth of e-bike sales had played a significant role in their double-digit increases in profits.

Merida
Merida profit in 2018 was significantly better than the previous year, which the company attributed to good sales and stable currency exchange rates. Net profit was NT$2.62 billion, 153% higher from the previous year.

In its financial report, Merida noted that although the Chinese bicycle market continued to be sluggish in 2018 and Merida’s sales in China market were down from the previous year, sales of traditional bikes and e-bikes to Europe and the US markets were up by 18% and 54% respectively. Overall, sales to around the globe were down by 7% on quantity but up by 15% on revenue.

In January and February of this year, Merida showed good growth, particularly for e-bikes, in its two major markets, USA and Europe. Merida's Taiwan factory grew by 22% in quantity for e-bike sales in Jan and Feb, which resulted in the e-bike sales growth of over 40% on revenue. Additionally, the company noted that Merida’s sales in the China market were finally showing signs of recovery with a 28% increase in sales quantity.

Giant
According to its financial report of 2018, Giant Group benefited from the continued sales of e-bikes and favorable exchange rates, which led to an increase in gross profit margin. In 2018, annual profit increased by 39.4% compared with 2017, and the Group's consolidated revenue was NT$60.24 billion, the second highest in its history, up 9.1% from 2017. Net profit before tax was NT$4.25 billion, up 46.3% from 2017. Net profit after tax was NT$2.86 billion yuan.

Last year, the production and sales volume of the Giant Group's e-bikes reached 500,000 units, and the sales amount accounted for 19% of the Group's revenue. At present, the European and American electric bicycle products are mainly supplied by the group's Taiwanese and Dutch factories; the new Hungarian factory is expected to start operation in the first half of next year. In addition to traditional bicycles, electric bicycles will also be produced to quickly reflect market demand.

Looking forward to 2019, the company noted that while market uncertainties, protectionism, trade wars and the slowdown of China's economic growth all posed challenges for business, Giant would maintain its intentions of creating a new ecology of cycling, developing innovative products that lead trends, shaping short and fast-responding supply chains, online and offline dual-channel providing high-quality services, in order to continue to drive the growth of the Group's revenue and profit.