Yulon Motor Co (裕隆汽車), one of the nation’s largest automakers, reported a 15.7 percent annual contraction in net profit for the first half of the year, dragged by its unprofitable Chinese venture.
Net profit dropped to NT$1.1 billion (US$36.4 million) in the January-to-June period, compared with NT$1.3 billion in the same period last year.
Revenue decreased 15.3 percent annually from NT$56.8 billion to NT$48.1 billion, company data show.
The firm attributed the decline to a loss of nearly NT$2.6 billion from its Chinese business, Dongfeng Yulon Motor Co (東風裕隆), a joint venture with China’s Dongfeng Automobile Co (東風汽車).
Dongfeng Yulon, which distributes Luxgen vehicles in China, has reported three consecutive years of losses since 2014.
However, Yulon’s two local units reported annual growth in net profit for the first half.
China Motor Corp (CMC, 中華汽車), which sells Mitsubishi sedans and its own-brand CMC models, saw its net profit rise 13.6 percent annually from NT$2 billion to NT$2.28 billion.
Revenue rose 2.8 percent from NT$21.5 billion to NT$22.06 billion.
The growth is primarily attributable to profit generated by CMC’s Chinese joint venture, South-East Motors Co (東南汽車), the firm said.
Yulon Nissan Motor Co (裕隆日產), which sells Nissan and Infiniti vehicles in Taiwan, posted 35.9 percent year-on-year growth in net profit at NT$3.27 billion for the first half, compared with NT$2.4 billion the previous year, thanks to better cost control.
Revenue fell 2.01 percent from NT$19.1 billion to NT$18.7 billion, according a company financial statement.
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