Huge Group's First-half Sales Up 7.2% in 2022

Giant Group announced consolidated sales of NT$45.01 billion (US$1.5 billion) in the first half of 2022, up 7.2% from the first half of last year.

Huge Group said its pre-tax profit fell 5.2% from last year, and its gross profit margin was also affected by OE work, higher raw material costs and higher labor costs, as well as the temporary shutdown of some factories. In the second quarter, the increase in OE business and the recovery of the Chinese market drove the sales performance. Consolidated quarterly net sales were NT$22.74 billion, an increase of 6.4% and a company record for the quarter.

Huge Group still managed to maintain its gross profit margin at a reasonable level of 24.6% as supply chain instability and the shutdown of production facilities in China affected overall production utilization, but it did not perform well compared to the same period last year.

In North America and Europe, while inventory levels have improved, it has only eased at entry and mid-range levels, and there is still a lack of high-quality products in the higher price ranges.

Cycling is still a popular sport, judging by the Tour de France in July. And with rising energy prices, bicycles are the best choice for consumers to save fuel bills and protect the environment, which will continue to translate into strong growth potential and opportunities.