The global Covid-induced bike boom has seen Giant Group’s net profit grow by almost half in 2020.
Net profit for 2020 was up 46.7% over 2019. It reached NT$4.95 billion (A$228 million). This was based upon total sales for 2020 of NT$70 billion (A$3.22 billion) meaning that the net profit percentage rate was still a quite modest 7.1%.
Giant said all its sales companies, in the US, Europe, and China, saw significant growth in sales and profitability.
“Giant foresees as more consumers are choosing bicycle and e-bike as a means of transportation, leisure and sports, bicycles and e-bikes will become a part of the new lifestyle post-pandemic,” the company said.
“E-bikes have become one of the key growth drivers for Giant group where last year total e-bike sales grew 28%, representing 26% of the group’s revenue.”
Giant forecast that the sales growth will continue in 2021. “This pandemic has certainly changed the way of living and there is a huge shift in people’s awareness on health and fitness. In addition, there is a continuous push from governments across different nations to reduce carbon footprint by encouraging people to use bicycles or e-bikes, increasing investments in establishing bicycle-related infrastructures and offering bicycle purchase subsidizes. Therefore, Giant foresees the demand will continue to exceed supply,” the company predicted.