Giant Group plans to acquire roughly 36% of the non-controlling interests in D.Mag (Kunshan) New Material Technology for up to RMB 597 million. Giant currently holds 60.3938% of D.Mag indirectly; after completion, its consolidated ownership is expected to rise to 96.63%.
D.Mag manufactures and sells advanced alloy-material products and accounts for approximately 7% to 8% of Giant Group’s consolidated revenue. Giant says the transaction is intended to sharpen business focus and improve operational management efficiency. For the wider bicycle and e-bike sector, the deal highlights the strategic value of controlling materials and upstream manufacturing capabilities during a period of margin pressure and volatile demand.
WHY IT MATTERS• Large bicycle groups continue to prioritize vertical integration and tighter control of strategic materials.• Upstream ownership can improve cost visibility, production coordination and supply security for both conventional bikes and e-bikes.• Component and frame suppliers may face more pressure to offer technology, flexibility or cost advantages that justify external sourcing.