On March 25, 2022, the board of directors of Huo Group approved the 2021 financial report. Continuing the global bicycle market sales boom, coupled with the continued hot sales of electric assisted bicycles in Europe and the United States, boosting the merger revenue of Huo Group in 2021 to NT$1,281.8 billion, an annual increase of 17%.
Strong market demand has also driven the increase in capacity utilization. In addition, the proportion of sales of private brand e-bike has increased, which has led the group to make profits once again breaking through a record high. After-tax net profit grew by 19.8%, reaching NT$5.93 billion, and after-tax surplus per share was 15.8 yuan.
Board of Directors also passed the surplus distribution case, intending to allocate cash dividends of RMB 10 per share, which will be submitted with the consolidated financial statements to the shareholders' regular meeting to be admitted on June 23. At the same time, in response to the group's rapid growth in recent years, the board of directors has also issued 17,000 new shares through cash capital increase and issuance of 24 billion yuan of domestic convertible corporate bonds, mainly used to repay bank loans to improve the financial structure.
Huge Group worked hard to overcome the limitations of shortage of materials and cabinets in the fourth quarter of 2021, with a combined revenue of NT$19.9 billion in a single quarter, an increase of 13.6% year-on-year. However, due to the adverse factors of rising material and transportation costs and exchange rate , the net profit after tax in the fourth quarter was NT$1.1 billion, a year-on-year decrease of 16.5%, and the after-tax surplus per share in a quarter was 2.93 yuan.
In recent years, global electric assisted bicycles (e-bike) sales have grown rapidly and have become one of the important growth engines of the giant group. In 2021, e-bike's revenue accounted for 31% of the group's revenue (26% in 2020), and it is expected that the proportion of revenue will continue to increase year by year in the next few years. Europe is the main global e-bike market. Giant European e-bike sales grew by 30% last year, and has maintained double-digit growth for four consecutive years; the US market is gradually loosening its riding regulations, and the market is also growing rapidly.
Looking ahead to 2022, inflation and war add uncertainty to the operating environment, and rising costs still bring considerable pressure to make profits. However, after the epidemic, people will pay more attention to sports and fitness, and are expected to drive the demand for mid-to-high-end sports car models. In addition to riding outdoors and enjoying the natural environment, consumers can also enjoy the fun of riding indoors; in addition, the awareness of caring for the earth has increased, governments of various countries advocate energy conservation and carbon reduction, continuously constructing a friendly riding environment, and encouraging bicycle commuting to solve traffic congestion problems will bring more new riding populations. The huge group is still confident in the future growth of the bicycle industry.
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