Giant to Further Expand Capacity of Assembled Bicycles in China

Taipei, June 29, 2012 (CENS)--To meet increasing demand in China, Giant Manufacturing Co., Ltd., the largest bicycle manufacturer in Taiwan, will further expand production there by doubling annual capacity at its plant in Kunshan, Jiangsu Province, and Tianjin to about 2.5 million units this year.

At the recent shareholders meeting, Giant CEO Tony Lo pointed out that revenue is expected to grow 20% this year thanks mainly to hot sales in Asia, especially in China, despite debt-impacted shipments to Europe.

In the first five months, Lo pointed out, sales in North America climbed 7% to 8%, and that in China were up more than 30% year-on-year (YoY). As a result, though sales in Europe were affected, Giant's first-five-month consolidated cumulative revenue increased 13% YoY to NT$21.39 billion (US$713 million).

Some institutional investors recently reported that disposable incomes in China have been rapidly rising to create pickier demand for high-end bicycles. With the global brand image and higher average selling prices, hot sales in China is expected to drive Giant's annual profitability to 14% this year.

Due to prioritized duty-reduction allowed under the Economic Cooperation Framework Agreement (ECFA) signed between China and Taiwan, and Chinese central governmental policy to cut carbon footprint, industry sources said that sales of electric bicycles in China are expected to drive revenue growth for Taiwanese makers.

In 2011, Giant's Taiwanese factory had revenue of NT$19.03 billion (US$634.3 million), and consolidated revenue of NT$47.38 billion (US$1.6 billion), for net earnings of NT$3.03 billion (US$1 billion) and earnings per share (EPS) of NT$8.04 (US$0.27).

Last year, Giant's six global factories turned out 5.77 million bicycles, up 10% from a year earlier.