Giant Group reports Q1 loss of NT$0.51 per share, board approves share repurchase of 4,000 shares

Taipei, May 8 (CNA) Bicycle giant Giant Group today announced its first-quarter financial report. Despite being affected by the high base period last year and structural adjustments in its OEM business, the company reported a loss of NT$0.51 per share in the first quarter. However, the group's overall gross profit margin remained at 19.6%, showing significant results from the launch of high-margin new products under its own brand in the first quarter.

Giant stated that to demonstrate strong confidence in its long-term development, the board of directors today approved a share repurchase plan. It is expected to repurchase 4,000 shares from the centralized market between May 8 and July 7, at a price range of NT$60 to NT$100 per share. If the stock price falls below the lower limit of the range, repurchases will continue.

The board of directors also approved the capital expenditure plan for the "Wind Tunnel Laboratory," which will invest in world-class aerodynamic testing equipment, becoming a core facility for Giant's Cycling Science and professional competition-grade bicycle and product development.

Giant explained that the consolidated revenue for the first quarter of 2026 was NT$12.52 billion. Although the revenue scale was affected by OEM business adjustments, with a year-on-year decrease of 53.9%, the group's overall gross profit margin increased from 17.8% in the same period of 2025 to 19.6%. The main reason for the growth is the stabilization of its own brands, and the proportion of OEM business decreased from 39% to 24%, indicating that the group's strategy of continuously launching high-value-added new products has achieved substantial results.

The U.S. Customs and Border Protection (CBP) issued a Withhold Release Order (WRO) against Giant Group's Taiwan manufacturing base on September 24, 2025, U.S. Eastern Time, suspending bicycles, bicycle parts, and accessories exported to the U.S.

Giant pointed out that the operating expense ratio increased to 21.2% in the first quarter, mainly due to a one-time recognition of subsequent expenses related to the WRO, amounting to approximately NT$80 million. The case has now entered the final settlement stage and is not expected to have any further impact on profit and loss.

Giant stated that although the net loss after tax in the first quarter was NT$200 million, the continuous positive growth in its Vietnam factory and electric vehicle-related OEM business shows that the market demand for high-quality bicycles and E-bikes remains strong.

Looking ahead, Giant explained that with the traditional sales peak seasons in the second and third quarters approaching, coupled with the successive launch of new model year bikes, purchasing sentiment has shown signs of recovery. The group maintains a cautiously optimistic attitude towards regaining growth momentum this year. (Editor: Chang Chun-mao) 1150508