Bike makers hit hard by sharp slowdown in sharing sector

Bike manufacturers' interim results indicate that they are taking a hit due to the slowdown in China's once-vibrant bike-sharing sector.

Century-old bike maker Shanghai Phoenix Enterprise (Group) Co Ltd said in its half-year fiscal report released on Aug 25 that its turnover for the first six months slumped 55.72 percent year-on-year to 353 million yuan ($51.8 million). Its net income contracted by 55.44 percent to 19.11 million yuan. During the same period, the Shanghai Composite Index fell 13.9 percent.

The significant decline in orders from bike-sharing service providers was the main reason for its sluggish performance in the first half of this year, Phoenix said in its fiscal report. As a result, Chinese bike manufacturers and parts suppliers have been faced with overcapacity.