MERIDA INDUSTRY Business Summary

Merida Industry Ltd (9914.TW) is a premier global manufacturer and distributor of mid-to-high-end bicycles, generating revenue through the production of mountain, road, and electric-assist bicycles (e-bikes), as well as frames and related components. The company operates a dual-track business model, serving as a high-capacity Original Equipment Manufacturer (OEM) for global brands while simultaneously scaling its own-brand "Merida" and "Centurion" labels. Revenue is geographically diversified across three primary segments: the Domestic segment (Taiwan), Asia (China and Hong Kong), and Europe, with the latter serving as a critical growth engine for its premium e-bike portfolio. Merida maintains a strategic 49% stake in Specialized Bicycle Components, further integrating its supply chain with the global enthusiast market. Its primary direct competitors include Giant Manufacturing Co. Ltd. (Giant Group), Trek Bicycle Corporation, and Scott Sports SA. Within this landscape, Merida is positioned as Taiwan's second-largest bicycle manufacturer and a global leader in technical innovation, particularly through its specialized R&D operations in Germany. Founded in 1972 by the late visionary engineer Ike Tseng, the company remains under the stewardship of the founding family, who retain a shareholding of over 20%. The current leadership team is headed by Chairman Michael Tseng (Tseng Song-Chu), who oversaw the company's global expansion before passing the role of Chief Executive Officer to his son, Vansen Tseng, in 2023. This third-generation leadership transition focuses on digital transformation and the premiumization of the e-bike segment. Key technical leadership includes Benjamin Diemer, who serves as the CEO of Merida R&D and Director of Product, spearheading the company’s engineering efforts from its German design center. Notable institutional support is provided by the Tseng family's investment vehicles, including Ting Cheng Investment Co. Ltd., ensuring long-term stability and a focus on sustainable ESG initiatives as the company navigates post-pandemic inventory corrections and evolving global trade tariffs.