Merida Industry (9914) Q1 2026 earnings summary

Executive summary

• Launched new e-bike model Lethos on June 19, 2026, with multiple global product launches in Germany and Spain, and another major event planned for summer 2026.

• Subsidiary sales grew 13% year-over-year from January to May 2026, driven by European market recovery and new product introductions.

• Revenue for Q1 2026 was NT$5,323 million, down 30% year-over-year, with net profit at NT$328 million, a 27% decrease from Q1 2025.

• Gross margin remained stable at 17%, but operating profit dropped 54% year-over-year.

• Inventory levels normalized, supporting accelerated new product rollout.

Financial highlights

• Group revenue from subsidiaries increased 16% in Q1 2026 compared to the previous year.

• Earnings per share were NT$1.09 basic and NT$1.08 diluted, compared to NT$1.40 in Q1 2025.

• Cash and cash equivalents increased to NT$3,922 million from NT$3,577 million at year-end 2025.

• Operating cash flow was NT$381 million, a significant improvement from negative NT$144 million in Q1 2025.

• Inventory decreased by 21% at the end of 2025 compared to the end of 2024 and remained stable into 2026.

Outlook and guidance

• Ongoing inventory destocking, but signs of modest market recovery in Europe and China.

• Continued new product launches expected to stimulate demand, with a global dealer event scheduled in Europe for July 2026.

• Management continues to monitor market and industry conditions, focusing on optimizing capital structure and maintaining liquidity.

• Dividend policy remains unchanged, with a proposed cash dividend of NT$2.8 per share for 2025, pending shareholder approval.