Yulon Motor's April revenue dropped by 27%, bringing the total revenue decline to 17% for the first four months.
Yulon Motor announced its revenue data for April 2024 on May 9, 2025. The consolidated revenue for the month was NT$56.04 billion, a decrease of 27.41% compared to NT$77.20 billion in the same period last year. Cumulatively, by the end of April, Yulon's consolidated revenue for the first four months of this year was NT$234.75 billion, a decrease of 17.24% compared to the same period last year. The decline in revenue reflects challenges including reduced sales of brand models, adjustments in subsidiary operations, and weak market demand.
Impact of Reduced Brand Models and Weak Market Demand on Revenue Performance
According to Yulon's previously announced Q1 2025 financial report, the company's consolidated revenue for the first quarter was NT$17.588 billion, down 15.24% from the same period last year. Operating profit was NT$1.5 billion, a year-on-year decrease of 22.8%; net profit attributable to the parent company's shareholders was NT$435 million, with a significant year-on-year decrease of 49.71%. The company pointed out that one of the main reasons for the decline in revenue and profit was the reduction in the number of brand models, leading to an overall decrease in sales.
In addition, the sales performance of Yulon's brands such as Luxgen and Nissan did not meet expectations, further dragging down overall revenue. Weak market demand and the yet-to-materialize effect of new cars make it difficult for Yulon to reverse the revenue downturn in the short term.
Subsidiary Operational Adjustments Also a Dragging Factor
In Yulon Group's revenue structure, the performance of its subsidiary Yulon Finance (9941) in the financing business has a significant impact on overall operations. According to the financial report, Yulon Finance's revenue for Q1 2025 was NT$9.698 billion, a year-on-year decrease of 6.71%; operating profit was NT$1.381 billion, a year-on-year decrease of 21.84%; net profit attributable to the owners of the parent company was NT$1.146 billion, a year-on-year decrease of 12.09%. Due to Yulon Finance's adjustments in its business strategy and model, the proportion of the financing business has decreased, and its contribution to Yulon's overall profit has also diminished.
Moreover, Yulon's external investments have not shown results. Its investment in Yulon Nissan (2227) resulted in a loss in Q1 2025, with a single-quarter net loss of NT$156 million, marking a deficit record for nearly 15 years. These factors collectively form the backdrop for Yulon's decline in both revenue and profit.
April Revenue Decline Widened, Cumulative Performance Continues to Be Under Pressure
According to the latest announcement, Yulon's consolidated revenue for April 2025 was NT$5.604 billion, a decrease of NT$2.116 billion from NT$7.720 billion in the same period last year, a year-on-year decrease of 27.41%. This follows a year-on-year decrease of 10.69% in March, 7.53% in February, and 20.63% in January, with the monthly year-on-year decrease expanding again, indicating that operational pressure has not eased.
Cumulatively, Yulon's consolidated revenue for the first four months of 2025 was NT$23.475 billion, a decrease of NT$4.889 billion compared to NT$28.364 billion in the same period last year, a year-on-year decrease of 17.24%. This data is consistent with the 15.24% year-on-year decrease revealed in the Q1 financial report, indicating that the revenue performance at the beginning of the second quarter continues the weak trend of the first quarter.
Interplay of Industry Environment and Internal Adjustments
Yulon pointed out in the announcement that in addition to the reduction in brand models and subsidiary operational adjustments, the overall industry environment is also exerting pressure on its revenue. Since 2025, domestic car market demand has weakened, coupled with global economic fluctuations and uncertainty in tariff policies, posing multiple challenges to the automotive industry.
Although Yulon Group continues to promote the development of electric vehicles and has obtained some export orders, it has not yet made a significant contribution to revenue. The n7 model launched by its electric vehicle brand Luxgen once achieved good monthly sales, but recent sales performance has been flat, failing to effectively support overall revenue.
Financial Report Data Reveals Operational Pressure
From the financial report data, Yulon's gross profit for the first quarter of 2025 was NT$6.012 billion, a year-on-year decrease of 14.12%; operating profit was NT$1.5 billion, a year-on-year decrease of 22.80%; net profit for the period was NT$1.078 billion, a year-on-year decrease of 34.06%. These figures indicate that in addition to the decline in revenue, the cost structure and operational efficiency are also under pressure.
In terms of earnings per share, Yulon's basic earnings per share for the first quarter was NT$0.42, marking a new low for a single quarter over the past two years, and also below market expectations. This reflects that in the context of declining revenue and profit, shareholder returns are also affected.
