Giant Manufacturing Co (巨大), one of the world’s leading bicycle manufacturers, yesterday expressed concern that global inventory adjustments would continue into the first quarter next year.
Speaking at the company’s annual general meeting, Giant chairwoman Bonnie Tu (杜?珍) said that although pressure from inventory adjustments hit its peak at the end of last year, the inventory digestion has been slower than expected.
Given weaker-than-expected demand, the impact could last into the first quarter of next year, she said.
Photo: CNA
The bicycle industry had expected inventory levels to return to normal in the third quarter or even the fourth quarter.
This year has been a challenging year for the bicycle industry, leading to inventory adjustments in the US and European markets, Tu said.
Nonetheless, Giant remains upbeat about the industry’s long-term prospects, Tu said, citing demand driven by e-mobility, environmental protection and sports.
Giant CEO Liu Yuon-chan (劉湧昌) said that demand for low-to-mid-end bicycle models in the US market has stayed weak.
However, the Chinese market is showing signs of a recovery, especially for mid-to-high-end models, he said.
Globally speaking, the demand for pedal-assist e-bikes, high-end road bikes and mountain bikes have improved, Liu said.
In December last year, Giant reportedly sent a letter to suppliers asking for a 45-day payment extension in the wake of weak global demand.
The reports said the letter, signed by Yen Ching-hsin (顏清鑫), head of Giant’s global manufacturing center, was sent to suppliers that had or would ship their products to Giant between December last year and March.
The reports triggered a sell-off of Giant shares.
In response, Giant said that nondisclosure agreements prevented it from discussing the details of the letter sent to its suppliers, but added that, as a leader in the global bicycle industry, the company was determined to work closely with its suppliers to deal with inventory adjustments and diversify market risks.
In the first five months of this year, Giant posted consolidated sales of NT$34.9 billion (US$1.13 billion), down 3.45 percent from a year earlier.
The bicycle brand said that revenue from China rose more than 70 percent from a year earlier, while sales in the US and European markets dropped during the same period.
Shareholders yesterday approved Giant’s proposal to distribute NT$7.80 in cash dividends after posting earnings per share of NT$15.51 for last year.
Semiconductor business between Taiwan and the US is a “win-win” model for both sides given the high level of complementarity, the government said yesterday responding to tariff threats from US President Donald Trump. Home to the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), Taiwan is a key link in the global technology supply chain for companies such as Apple Inc and Nvidia Corp. Trump said on Monday he plans to impose tariffs on imported chips, pharmaceuticals and steel in an effort to get the producers to make them in the US. “Taiwan and the US semiconductor and other technology industries
SMALL AND EFFICIENT: The Chinese AI app’s initial success has spurred worries in the US that its tech giants’ massive AI spending needs re-evaluation, a market strategist said Chinese artificial intelligence (AI) start-up DeepSeek’s (深度求索) eponymous AI assistant rocketed to the top of Apple Inc’s iPhone download charts, stirring doubts in Silicon Valley about the strength of the US’ technological dominance. The app’s underlying AI model is widely seen as competitive with OpenAI and Meta Platforms Inc’s latest. Its claim that it cost much less to train and develop triggered share moves across Asia’s supply chain. Chinese tech firms linked to DeepSeek, such as Iflytek Co (科大訊飛), surged yesterday, while chipmaking tool makers like Advantest Corp slumped on the potential threat to demand for Nvidia Corp’s AI accelerators. US stock
The US Federal Reserve is expected to announce a pause in rate cuts on Wednesday, as policymakers look to continue tackling inflation under close and vocal scrutiny from US President Donald Trump. The Fed cut its key lending rate by a full percentage point in the final four months of last year and indicated it would move more cautiously going forward amid an uptick in inflation away from its long-term target of 2 percent. “I think they will do nothing, and I think they should do nothing,” Federal Reserve Bank of St Louis former president Jim Bullard said. “I think the
SUBSIDIES: The nominee for commerce secretary indicated the Trump administration wants to put its stamp on the plan, but not unravel it entirely US President Donald Trump’s pick to lead the agency in charge of a US$52 billion semiconductor subsidy program declined to give it unqualified support, raising questions about the disbursement of funds to companies like Intel Corp and Taiwan Semiconductor Manufacturing Co (台積電). “I can’t say that I can honor something I haven’t read,” Howard Lutnick, Trump’s nominee for commerce secretary, said of the binding CHIPS and Science Act awards in a confirmation hearing on Wednesday. “To the extent monies have been disbursed, I would commit to rigorously enforcing documents that have been signed by those companies to make sure we get
RSS