Merida Industry (9914) Q1 2026 earnings summary

Executive summary

• Launched new e-bike model Lethos on June 19, 2026, and held multiple global product launches in Germany and Spain, with 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.

• Inventory levels normalized, supporting accelerated new product rollout.

Financial highlights

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

• Gross margin improved to 16.60% in Q1 2026, up from 13.60% in Q4 2025, due to a higher mix of new products and more stable foreign exchange rates.

• 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.