Merida Registers NT$20.2 B. in Consolidate Revenue in 2011

Taipei, March 26, 2012 (CENS)--Merida Industry Co., Ltd., the second-largest bicycle manufacturer in Taiwan, recently announced its 2011 operation results, having registered consolidated revenue of NT$20.16 billion (US$671.8 million), or net earnings of NT$181 million (US$6 million) and earnings per share (EPS) of NT$7.33 (US$0.24), all of which being record highs in company history.

Merida enjoyed explosive revenue growths in the past two years due mainly to buoyant sales in China, and the company's stock price has risen by 50% this year. In 2010, the maker sold about 280,000 bicycles in China, which doubled to 560,000 units in 2011. In 2012, some institutional investors predict, Merida's shipments in China will continue to grow 30% to 50%.

To tap opportunities in China, Merida plans to invest about US$1 billion to set up a bicycle production base, the largest ever in company history, in Nantong, Jiangsu Province, which has been approved by the Investment Commission of the Ministry of Economic Affairs (MOEA). The company plans to set up a new company in China in the first half of 2012 to handle related affairs.

If all goes well, the new facility is expected to kick off mass production by the end of 2013 with initial capacity of 500,000 units, which will be raised to 1.5 million to 2.0 million to meet demand.

Revenue generated from Chinese operation accounted for 10% of Merida's overall revenue in 2010, 25% in 2011, and this year is expected to rise to 30% due to a 30% to 50% growth in sales volume.