Giant Manufacturing Co, a major bicycle maker from Taiwan has reported stellar earnings for last quarter, but said they would continue to focus on electric bikes and European markets as US-China trade tensions linger.
Giant Manufacturing Co (巨大) expects the contribution of electric bike models to surpass 20 percent of revenue this year, up from 19 percent last year, as European markets continue to grow, the company said yesterday.
Giant’s board of directors on Tuesday approved an investment plan of 50.49 million euros (US$56.52 million) by its Hungary subsidiary to cement the firm’s position in the European market and begin to see a contribution by the first half of next year, it said.
The firm said that earnings growth was driven by a 60 percent increase in electric bike sales in Europe, a slight improvement in the US and Chinese markets, and foreign-exchange gains.
Electric bikes accounted for 31 percent of revenue last quarter, compared with 24.68 percent for the whole of last year, company data showed.
The bicycle chain aftermarket is expected to be a major driver of this year’s performance, it said, adding that revenue from the aftermarket business in Europe has grown 15 percent over the past three years.
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