Taiwan's Giant Manufacturing Co., Ltd., the world's No. 1 complete-bicycle maker, recently announced that it aims to produce a total of five million bicycles at its production sitesfrom global situated around the globe this year, production sites and to challenge the annual revenue goal of NT$20 billion (US$600597 million at US$1: NT$33.5) this year.

Giant chairman King Liu made the statement at a recent shareholder meeting, adding. Liu says that the Giant Group had revenues and net earnings of NT$18.45 million (US$550.75 million) and NT$1.13 billion (US$343.73 million), respectively, last year, both record highs. Liu attributed the superb e brilliant operation performances to his company's long-term efforts in concentrationing on its core business and the creation of ang global value chain.

He also drew attention to the fact that Giant was chosen by the China government as one of the "most famous brands in China" in February this year, along with Coca-Cola and Nike. The award that came along with this recognition included an 800,000 Renminbi prize and--more important, according to the chairman--a better-protected trademark.

At the same meeting, Giant president Lo Hsiang-an saidys that his company's four plants worldwide together turned out 4.49 million bicycles in 2003--, including 610,000 units in Taiwan,; 2.56 million in mainland China's Kunshan, Jiangsu Province, , and 1.1 million in Shanghai, mainland China; and 210,000 units in the Netherlands.



Giant plans to set up a new plant in Chengdu, Sichuan Province, China. The new facility is expected to help in the development of the Great wWestern China market, and will have with an annual capacity of 400,000 units in the initial stage (from start-up in September this year to 2006).

According to Lo, the annual domestic bicycle demand in China is about 30 million units and Giant is targeting to get a 10% share there as its medium-to-long-term goal. Last year , Giant sold about 1.2 million bicycles in China, accounting for just under 5% of -less in the huge market. Lo reiterated the importance of the huge mainland market; and says that his company started setting up its first plant there in 11 years ago, while began marketing the the Giant- brand bikes through its own self-developed with self-deployed sales networkchannels.

Liu claimed that Giant was chosen by the China government as one of the "most famous brands in China" in February this year alone with Coca Cola and Nike. The award included an 800,000 Renminbi prize and, more important, a better-protected trade mark.

In addition to its core business, Giant's reinvested subsidiaries also enjoyed substantial big revenue growths last year. China's The company Chuansin Metal Products (Kunshan) Co., Ltd. In China is scheduled to soon double its aluminum- alloy extrusion capacity as part of after complete a plant- expansion project, soon and will diversify business scopes into also motorcycle- wheel rims business in the near future. The Composite Technology Corp., a Giant's Taiwanese subsidiary that specializes in the manufacturing of composite-material bicycle frames, will continue its would continue expansion ofding capacity and exploretap some various non-bicycle sectors-irreverent business fields, Lo says.

In terms of recent For new- product development, said Lo, Lo says, Giant pushed the Revive comfort bike model unveiled in the second half last year. Tand the new and innovative model has been winning hot market responsesbeen much in demand, and a total of over 20,000 units have been sold worldwide. Giant plans to push also an upgraded version this year, as well as refined and an electric -version. Revive models this year to further expand sales of such high-level model.

In Liu's words, claimed that Taiwan has become the global supply center for of high-level bicycles, and letting Giant's Taiwan plant had accumulated revenues of NT$3.3 billion (US$98.51 million) in the first five months, up more thanover 30% from the same period of last year. Liu addeds that his company is scheduled to double itsthe high-level bike capacity in Taiwan in the coming one year in a bid to further enhance upgrade the company's revenue and profitability.

Giant has long been a long-term sponsor to globally famous bike-racing teams of global renown. Ein early this year, the Taiwan company signed an agreement with the T-Mobile cycling team of the U.S. and begaun providing the team with it's the top-end TCR graphite bicycle frames for the team riders. The TCR bike frame, which weights only 800 grams, is a one-piece-formed frame with an integrated seat post. It is and the "secret weapon" that helped the ONCE racing team wion last year's Tour de France. With the sponsorship with T-Mobile sponsorship, Liu claimed, Giant is expected to get a further -strengthen itsed global brand image and garner more key know-how in developing top-end racing- bike products.

Giant is also enjoying smooth expansion with its electric bicycle sales in the international market. According to Lo, Giant expects to sell 120,000 such bikes this year, compared with only 40,000 units last year. The president says that the global demand for electric bikes has been constantly rising in recent years;, sales rose for example, from 500,000 units in 2001 to three million units in 2003. For the lucrative business segment, Giant plans to push eight new electric models in the lucrative segment, including some light electric scooter (, or LES), models., to stimulate purchase willingness.

In the face of Facing the rising prices for materials prices, Giant is claimingclaimed that it will seek every possible way—short of cutting quality--it would do as hard as possible to cut production costs in order tothus to maintain, and preferably e or nhance,upgrade profitability. A Giant is a Taiwan Stock Exchange (TSE)-listed company, the firm which decided on a to distribute cash dividend of NT$3 (US$0.09) per to each share on its for 2003 operations.