Giant earned 1.96 yuan per share in the first three quarters, and the industry’s profits improved

The major bicycle manufacturer Jujuang (9921) today reported a consolidated revenue of 45.5 billion yuan in the first three quarters, a year-on-year decrease of 5.1%, and the decline was less severe than in the first half of the year; operating profit in the first three quarters was 1.32 billion yuan, an annual increase of 4.7%; after-tax net profit was 765 million yuan, and earnings per share was 1.96 yuan.

Huge said that as the global bicycle market gradually recovers, the group's operations have shown steady recovery. In the third quarter, single-quarter revenue achieved two consecutive quarters of annual growth. The consolidated revenue in the third quarter was 16.31 billion yuan, an increase of 6.2% over the same period last year. The operating profit of the industry was 510 million yuan, a significant increase of 29%, indicating that the profit quality of the industry continued to improve.

In terms of market performance, benefiting from the hot sales of flagship models in the new year, the sales momentum of its own brands has continued. Among them, driven by new products, the performance of the European and Chinese markets in the first three quarters increased compared with the same period last year; the North American market was affected by the overall economy and inflation, and demand was still relatively weak.

As the high-value new products of its own brands are selling well and there is no need to carry out discounts like last year, it has effectively boosted the group's overall gross profit and profit performance in the first three quarters.

In terms of OEM business, due to the high base period caused by the concentrated shipment of deferred orders last year and the impact of the reduction in shipments to the United States, the performance in the first three quarters was relatively weak; however, with the increase in the proportion of self-owned brands and gross profit, it effectively compensated for the fluctuations in the OEM business, driving the group's overall operating structure to become more sound.

Looking forward to the future, Giant Group will continue to adhere to the core policy of "strengthening profits, improving efficiency, and expanding growth", prudently respond to market changes in various regions, and respond to market recovery opportunities through product innovation and flexible supply chains to promote the steady progress of the group's operations.