Net income at the bike maker was halved to NT 257,872,000 ($8.8 mm) from NT 516,313,000 in the first quarter on sales that grew 3% to NT 13,974,326,000 ($475.1 mm) from NT 13,552,441,000 boosted by a 30% jump in high-end electric bicycle sales. Gross margin narrowed by 90 basis points to 17.9% blamed on the appreciation of the Yuan and weak domestic sales. The bottom line decline was exacerbated by Taiwan’s income tax rate increase from 17% to 20%, which increased the income tax provision by NT 147 million ($5 mm); pre-tax profit was down 17% from Q1 last year.

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