Yulon Projects Growth in Taiwan's Auto Market; Luxgen Stake Transfer Completed in April

(CNA, Taipei, May 20, by reporter Chung Jung-feng) Yulon Motor stated today that once uncertainties in Taiwan's auto market decrease and the political and economic situation becomes clearer, market momentum is expected to gradually stabilize and normalize. The company anticipates that Taiwan's auto sales volume this year will be flat or show slight growth compared to the previous year. Yulon also noted that Foxtron's acquisition of Luxgen's equity was completed in April of this year, and Luxgen will no longer be included in its consolidated financial statements starting from the second quarter. During an investor conference this afternoon, Yulon observed that Taiwan's new car market was in an adjustment phase in the first quarter, with overall vehicle registration momentum slowing compared to the same period last year. The demand for gasoline-powered vehicles was notably weaker due to the impact of international situations on oil price volatility, while electrified and energy-efficient models continued to grow. Market momentum is expected to gradually stabilize and normalize as market uncertainties diminish and the political-economic landscape becomes clearer. Regarding Q1 operations, Yulon pointed out that the year-over-year decline in revenue was mainly affected by the slowdown in the overall auto market and a decrease in financial services income. However, operating net profit grew compared to the same period last year as cost structure optimization and expense control measures gradually took effect. Looking ahead, Yulon stated that stable battery contract manufacturing services maintain positive cash flow from operating activities, supporting daily operations and funding. Although cash outflow from investing activities has increased, the company dynamically adjusts its investment portfolio based on market conditions and asset levels, maintaining a stable overall cash position while balancing debt management, capital security, and investment return opportunities. Yulon explained that the focus of its energy services business has shifted from energy storage batteries to traction batteries. The company is actively investing in the construction and maintenance of energy storage projects, focusing on 'behind-the-meter' storage applications. A larger-scale shipment is expected soon, and services have been extended to the market of large electricity consumers. In vehicle manufacturing, Yulon said it is advancing domestic product reviews, deepening local manufacturing capabilities, and introducing automated inspection systems to enhance process quality and efficiency. In energy development, Yulon noted it is stabilizing battery contract manufacturing services, expanding the behind-the-meter storage business, and developing battery inspection and repair technologies. When asked by institutional investors about the operations of Yulon City, Yulon stated that the Xindian Yulon City generates NT$500 million in annual rental income. According to data, a total of 96,400 new cars were registered in Taiwan in the first quarter, a decrease of 3.4% from the same period last year. Among them, gasoline-powered cars decreased by 17% year-on-year, pure electric vehicles increased by 39%, and hybrid vehicles increased by 15%. (Editor: Yang Kai-hsiang) 1150520