Giant, Merida Report Increase in Jan. Revenues

Taipei, March 8, 2011 (CENS)--Major assembled-bicycle makers in Taiwan listed on the Taiwan Stock Exchange (TSE) reported fluctuating revenues in January.

Merida Industry Co., Ltd., the second-largest bicycle maker in Taiwan, had revenue of NT$1.26 billion (US$41.9 million) in January, up 27.65% year-on-year (YoY); while Giant Manufacturing Co., Ltd., the No. 1 player in the business, saw a 7% YoY revenue increase to reach NT$1.63 billion (US$54.4 million), or consolidate revenue of NT$3.25 billion (US$108.5 million), a 5% YoY increase.

Ideal Bike Corp., the No. 3 player on the island, reported January revenue of NT$199 million (US$6.6 million), down 32.8% YoY.

Giant pointed out that the bicycle market in Taiwan has not totally recovered from the global recession, but that in the U.S. and Europe has been generating strong demand thanks to the rising environment-protection consciousness and recreation requirement, plus the rapid-rising sales in China. The major bicycle maker added that sales mainstream of assembled bicycles in China has shifted from transportation vehicle to recreational equipment, and the rising average selling prices (ASPs) in the big market have effectively helped upgrade Taiwanese bicycle makers' revenues.

Institutional investors said that both Giant and Merida set up record revenue highs in 2010 and the two companies' revenues are expected to continue challenging new highs this year. Giant said that its revenue is expected to continue a growth trend, but it has to carefully observe the currency exchange rates, material prices, and the following development of the anti-dumping sanctions adopted by European Union.

All major bicycle makers in Taiwan are expected to win more lucrative business opportunities in the coming 24th Taipei International Cycle Show (2011 Taipei Cycle) held during March 16-19 2011 at the Nangang Exhibition Hall in Taipei. Show organizer Taiwan External Trade Development Council (TAITRA) pointed out that up to date more than 1,000 domestic and foreign companies have registered as exhibitors and booked more than 3,800 booths. To meet the excessive booth demand, TAITRA will open a outdoor area at Nankang Exhibition Hall's south side for locating more booths.