Giant Group Posts Q1 Loss After Revenues Fall Over 25 Percent on Tough Comps and WRO Issue

May 12, 2026

Giant Group posted a net loss in the first quarter of 2026 after revenues fell more than 25 percent year‑on‑year, reflecting tough comparisons to a much stronger prior‑year quarter and ongoing pressure from softer global demand. The company reported consolidated revenue of about NT$12.52 billion (roughly €347 million), down about 25.7–26 percent from the same period in 2025, marking another step down in a run of negative growth.

The decline was driven by a normalization of its OEM business mix following an elevated comparison base in early 2025, weaker consumer demand in key markets, and the lingering drag from the US Withhold Release Order (WRO) that has constrained shipments of some Giant Taiwan–made products. Giant disclosed a one‑time cost of around NT$80 million (about $2.56 million) tied to the WRO, mainly related to migrant‑worker refund payments and associated government fees, which contributed to the quarter’s loss.

Despite the loss, the company highlighted some positive signs: gross margins improved to about 19.6 percent from 17.8 percent a year earlier, thanks to new own‑brand product launches and better product mix. Giant also said the WRO issue has “entered its final stage” and is not expected to materially affect future earnings, while April 2026 sales showed a much smaller year‑on‑year drop, suggesting the steepest part of the revenue slump may be easing. SGB