Yulon Group Earnings Call: Sanyi Plant Implements Quality Traceability System; Export Production for NZ/AU Markets to Deliver in Q4

Yulon Motor (2201-TW) held its earnings briefing today (26th), stating that customer Mitsubishi Motors recently announced the launch of new vehicles in the New Zealand and Australian markets in the fourth quarter. Accordingly, Yulon will complete all necessary delivery preparations in advance and carry out vehicle delivery operations before the market launch.

The 2024 revenue target for Xindian Yulon City is set at NT$5.9 billion, representing an 8% year-on-year increase, contributing to new business momentum.

Yulon Motor CEO Hsu Kuo-Hsing stated that despite intensifying market competition, the company achieved a 9% year-on-year growth in consolidated operating profit in the first half, demonstrating operational resilience through structural adjustments and improved efficiency.

In the first half, Yulon successfully introduced mass production of new vehicles from Foxtron Advanced, initiated production preparations for export vehicles to the NZ/AU markets, and established a quality traceability system at the Sanyi plant.

In energy development, post-meter energy storage business continues to expand, with cumulative sales approaching 15MW. Contract manufacturing capacity for power batteries is steadily increasing, and operational benefits are gradually emerging. Yulon plans to actively expand its energy engineering business and strengthen its EPC turnkey integration capabilities.

Additionally, following initial success in the Philippines market, the first franchise service center officially opened, with market response and operational performance exceeding expectations.

Looking ahead to the second half, Yulon will focus on mass production and delivery of the Foxtron Cavira EV and capture export demand from Mitsubishi for the NZ/AU markets as key growth drivers. The company will also validate and replicate the successful maintenance, energy, and leasing business models from the Philippines to establish a profitable and replicable overseas business platform.

Yulon further emphasized that the Sanyi plant possesses one of the top manufacturing capabilities in Taiwan. If new vehicle models are introduced in the future, customers are expected to conduct thorough evaluations and comparisons. Given its long-term partnership with Foxtron Advanced, Yulon anticipates maintaining a stable collaboration, with manufacturing continuing to be handled by Yulon.

Although the revenue contribution from the energy business remains relatively limited at present, Yulon expressed strong confidence in its future prospects. The business achieved profitability in Q2 alone, and both post-meter energy storage and other energy-related operations are showing positive growth trends.