Due to the inventory pressure in the global bicycle supply chain, the situation of insufficient cash flow may be further triggered, and the market has reported that a huge (9921-TW) sent a letter to the third party to coordinate the extension of the ticket period by 45 days, which aroused market attention. In this regard, Giant responded today (12th) that the company’s operations are safe at present, and the outside world does not need to worry.
Huge pointed out that starting from the second half of this year, the situation of the bicycle market that has grown significantly due to the epidemic in the past two years has gradually returned to normal. The demand for low-priced models has declined, and the inventory of general models has risen sharply. The disorder in the supply chain has not yet eased. Facing the headwinds of the general environment, Juju Group, as a major manufacturer and brand in the bicycle industry, shared responsibility with its supply chain partners, carried out risk dispersion and active handling of inventory, and tried to work with partners to straighten out the supply chain within a few months Returning to normalcy is a huge responsibility that cannot be slackened.
Huge emphasized that Huge is deeply grateful to every cooperative partner, including Japanese manufacturers, for their flexible cooperation and active adjustment of orders or payment.
Huge pointed out that due to the slowdown of the overall market, Huge expects that the inventory will gradually return to normal levels in the first half of next year. Jujufang announced on November 24 that it has completed capital increase in cash and raised 6.75 billion yuan in convertible corporate bonds, and its working capital is normal. In the long run, consumers around the world have greatly improved their awareness of environmental protection and health, and Huge is still very optimistic regarding the long-term development and prospects of the bicycle market.
Giant said that the letters that caused concerns regarding the outflow of the market are mainly communication documents between Giant Group and its cooperative supply chain partners. The content involves confidentiality clauses and cannot be explained to the outside world. I deeply regret that the leak of this letter has caused many speculations from the outside world.
Juju’s revenue in the first November of 2022 is 86.428 billion yuan, an annual increase of 14.56%, and has surpassed the 81.84 billion yuan for the whole year of 2021. (electrically assisted bicycles), the women’s bicycle market and the sales of peripheral parts and components are the main growth drivers.
Huge pointed out that the revenue in November 2022 will be 7.607 billion yuan, a monthly decrease of 4.19%, and an annual increase of 8.52%. The cumulative revenue for the first November is 86.428 billion yuan, an annual increase of 14.56%.
Huge’s revenue in the first three quarters of 2022 is 70.874 billion yuan, with a gross profit margin of 23.25%, an annual decrease of 1.46 percentage points, following-tax net profit of 5.63 billion yuan, an annual increase of 16.5%, and a net profit of 15.01 yuan per share.
