Yulon Motor recently held an online investor conference to announce its operating results for the first quarter of 2026.

During the event, the company also confirmed that Luxgen has formally been transferred to Hon Hai Advanced Technology and will no longer be consolidated into Yulon's financial statements from the second quarter onwards.

Reviewing Taiwan's automotive market, Yulon reported a 3% decline compared with the same period last year in total new vehicle registrations during the first quarter of 2026.

While sales of petrol-powered vehicles fell by 17%, hybrid vehicle registrations increased by 15%, and pure electric vehicle registrations rose by 39%, indicating continued demand for electrified and energy-efficient mobility solutions.

Yulon's revenue in the first quarter declined year-on-year, mainly due to weaker overall automotive demand and reduced contributions from its financial services business.

Through cost structure optimisation and tighter expense control, the company improved profitability, with after-tax earnings per share (EPS) reaching NTD 0.35.

In addition, Yulon and Hon Hai Advanced Technology reached an agreement at the end of last year under which Hon Hai Advanced Technology acquired 100% of Luxgen's shares for NTD 787.6 million (US$ 24.98 million). The company has confirmed that the transaction has been completed. As a result, Luxgen will no longer be included in Yulon's consolidated financial statements, which is expected to reduce annual revenue by approximately NTD 4 billion.

Regarding its future business strategy, Yulon outlined three key directions for its complete vehicle manufacturing operations: improving operational efficiency through cost structure adjustments, strengthening localised product development and manufacturing capabilities, and introducing automated testing systems to enhance production quality and efficiency.