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 China Yuchai (NYSE:CYD)

Monday, August 11, 2014
Comments & Business Outlook

Second Quarter 2014 Financial Results

  • Revenue was RMB 4.2 billion (US$684.6 million) which was similar to the second quarter of 2013
  • Earnings per share was RMB 4.44 (US$0.72) compared with RMB 4.46 for the same quarter in 2013

Mr. Weng Ming Hoh, President of China Yuchai, commented, "We have improved our market position and shown our resilience in a difficult environment in China. We are pleased to report higher revenue in the first six months of 2014 as a result of increased engine sales to the off-road market, namely the agriculture, marine and power generation segments. We are encouraged by the continued demand for our natural gas engines as well as National IV compliant diesel engines. Due to the change in our product mix, our gross margin has improved compared to the first quarter of 2014. We continue to focus our research and development efforts to build higher quality engines with enhanced performance and improved engine emissions which will help to strengthen our relationships with our customers."


Monday, July 7, 2014
Special Dividend

SINGAPORE, July 4, 2014 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company") announced today the results of stockholders' elections in relation to the dividend declared by its Board of Directors on May 12, 2014. The dividend of US$1.20 per share of common stock for the financial year 2013 to be made either wholly in cash or in new shares of CYI's common stock ("Shares") at the option of the stockholder, will be paid on July 7, 2014 to shareholders of record at the close of business on May 28, 2014.

Based on the elections by Shareholders, the aggregate dividend will be paid in the form of approximately US$26 million in cash and 928,033 Shares. The number of Shares to be issued per share of common stock was determined based on the volume weighted average trading prices of the Company's common stock on the New York Stock Exchange during the period from June 18 to and including June 20, 2014 which was US$20.1343 per Share. Further to the issuance of 928,033 Shares pursuant to the dividend payment, the Company's outstanding shares of common stock will increase to 38,195,706.

Shareholders who did not make an election or failed to respond within the given timeline will receive the dividend entirely in cash. CYI will pay fractional shares in cash which was determined based on the volume weighted average trading prices of the Company's common stock on the New York Stock Exchange during the period from June 18 to and including June 20, 2014 which was US$ 20.1343 per Share.


Wednesday, July 2, 2014
Corporate Structure Info.

SINGAPORE, July 2, 2014 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company"), announced today that its main operating subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL"), has entered into an equity transfer agreement to restructure the ownership of its joint venture company - Yuchai Remanufacturing Services (Suzhou) Co., Ltd. ("YRC").

Pursuant to the agreement, Caterpillar (China) Investment Co., Ltd. ("Caterpillar") will transfer its entire 49% equity ownership in YRC to GYMCL, bringing GYMCL's equity ownership to 100%. As a result, YRC will become a wholly-owned subsidiary of GYMCL. No financial terms are disclosed, as the total consideration is nominal to China Yuchai's balance sheet. The transaction is subject to approval by the Suzhou Bureau of Commerce.

YRC was established in China to provide remanufacturing services for GYMCL's diesel engines and components as well as selected Caterpillar diesel engines and components. Incorporated in April 2010, YRC began operations in 2011.

Benefitting from Caterpillar's expertise, YRC has developed high-quality standards and critical management processes. Both parties have agreed that it is now an appropriate time for GYMCL to assume control of YRC as there are significant advantages from the integration of the remanufacturing business with GYMCL's manufacturing operations. Caterpillar has agreed to continue to provide technical support to YRC and to further enhance awareness of the advantages of remanufacturing within China. Both parties will continue to maintain a mutually beneficial working relationship as a result of their partnership in YRC over the past few years.

Weng Ming Hoh, President of China Yuchai, commented, "We look forward to further developing the remanufacturing business as we believe that it provides a sustainable long-term solution to the increasing concerns over environmental pollution in China. Remanufacturing is beneficial to our customers and is an additional service we can offer. We believe that our engine operations and now wholly-owned remanufacturing subsidiary will be able to generate greater synergy and create more value for GYMCL's engine users."


Joint Venture

SINGAPORE, July 2, 2014 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company"), announced today that its main operating subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL"), has entered into an equity transfer agreement to restructure the ownership of its joint venture company - Yuchai Remanufacturing Services (Suzhou) Co., Ltd. ("YRC").

Pursuant to the agreement, Caterpillar (China) Investment Co., Ltd. ("Caterpillar") will transfer its entire 49% equity ownership in YRC to GYMCL, bringing GYMCL's equity ownership to 100%. As a result, YRC will become a wholly-owned subsidiary of GYMCL. No financial terms are disclosed, as the total consideration is nominal to China Yuchai's balance sheet. The transaction is subject to approval by the Suzhou Bureau of Commerce.

YRC was established in China to provide remanufacturing services for GYMCL's diesel engines and components as well as selected Caterpillar diesel engines and components. Incorporated in April 2010, YRC began operations in 2011.

Benefitting from Caterpillar's expertise, YRC has developed high-quality standards and critical management processes. Both parties have agreed that it is now an appropriate time for GYMCL to assume control of YRC as there are significant advantages from the integration of the remanufacturing business with GYMCL's manufacturing operations. Caterpillar has agreed to continue to provide technical support to YRC and to further enhance awareness of the advantages of remanufacturing within China. Both parties will continue to maintain a mutually beneficial working relationship as a result of their partnership in YRC over the past few years.

Weng Ming Hoh, President of China Yuchai, commented, "We look forward to further developing the remanufacturing business as we believe that it provides a sustainable long-term solution to the increasing concerns over environmental pollution in China. Remanufacturing is beneficial to our customers and is an additional service we can offer. We believe that our engine operations and now wholly-owned remanufacturing subsidiary will be able to generate greater synergy and create more value for GYMCL's engine users."


Tuesday, June 24, 2014
Joint Venture

SINGAPORE, June 24, 2014 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company") announced today that new-energy buses running on engines supplied by the Company's main operating subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL"), have been launched in Fushun City ("Fushun"), Liaoning Province located in Northeast China.

As a national pilot city for new-energy buses, Fushun has made its first large purchase of new-energy buses from Zhengzhou Yutong Bus Company. Out of the 800 new buses ordered, 600 buses were installed with GYMCL's gas-electric hybrid engines with the remaining 200 buses running on GYMCL's liquefied natural gas engines.

Officials from the Fushun municipal government, representatives from GYMCL and Zhengzhou Yutong Bus Company attended the new-energy bus launch event.

Mr. Weng Ming Hoh, President of China Yuchai, commented, "The introduction of new-energy buses in Fushun shows the determination of the Chinese government to improve the environment through the reduction of harmful emissions. We are receiving increasing demand for our hybrid and natural gas engines to provide solutions for reducing engine emissions and improving fuel efficiency. The selection of GYMCL's engines by Fushun is an endorsement of our superior design and product quality and we are well positioned to benefit from the expected market expansion of new-energy vehicles."


Comments & Business Outlook

SINGAPORE, June 24, 2014 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company") announced today that new-energy buses running on engines supplied by the Company's main operating subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL"), have been launched in Fushun City ("Fushun"), Liaoning Province located in Northeast China.

As a national pilot city for new-energy buses, Fushun has made its first large purchase of new-energy buses from Zhengzhou Yutong Bus Company. Out of the 800 new buses ordered, 600 buses were installed with GYMCL's gas-electric hybrid engines with the remaining 200 buses running on GYMCL's liquefied natural gas engines.

Officials from the Fushun municipal government, representatives from GYMCL and Zhengzhou Yutong Bus Company attended the new-energy bus launch event.

Mr. Weng Ming Hoh, President of China Yuchai, commented, "The introduction of new-energy buses in Fushun shows the determination of the Chinese government to improve the environment through the reduction of harmful emissions. We are receiving increasing demand for our hybrid and natural gas engines to provide solutions for reducing engine emissions and improving fuel efficiency. The selection of GYMCL's engines by Fushun is an endorsement of our superior design and product quality and we are well positioned to benefit from the expected market expansion of new-energy vehicles."


Wednesday, May 14, 2014
Special Dividend

SINGAPORE, May 14, 2014 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company") announced today a change to the ex-dividend date of May 26, 2014 as stated in its dividend announcement of May 12, 2014. Due to the New York Stock Exchange being closed on May 26, 2014 in observance of Memorial Day in the United States, the ex-dividend date will now be May 23, 2014.

All other dates in the May 12 dividend announcement remain unchanged.


Monday, May 12, 2014
Special Dividend

SINGAPORE, May 12, 2014 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company") announced today that a dividend of US$1.20 per share of common stock for the financial year 2013 has been declared by its Board of Directors. The dividend payment will be made either wholly in cash or in new shares of CYI's common stock ("Shares") at the option of the stockholder.

Stockholders will make an election to receive the dividend either wholly in cash or in Shares. The number of Shares to be issued per share of common stock as a result of the dividend payment will be determined based on the volume weighted average trading prices of the Company's common stock on the New York Stock Exchange during the period from June 18 to and including June 20, 2014. The dividend is payable on July 7, 2014 to shareholders of record at the close of business on May 28, 2014 with an ex-dividend date of May 26, 2014.

Shareholders who do not make an election will receive the dividend entirely in cash. CYI will pay fractional shares in cash which will be determined based on the volume weighted average trading prices of the Company's common stock on the New York Stock Exchange during the period from June 18 to and including June 20, 2014. The Company reserves the right to pay the dividend entirely in cash.


Comments & Business Outlook

First Quarter 2014 Financial Results

  • Revenue was RMB 4.6 billion (US$739.7 million) compared with RMB 3.8 billion in the first quarter of 2013
  • Earnings per share were RMB 4.83 (US$0.78) compared with RMB 4.66 for the same quarter in 2013;

Mr. Weng Ming Hoh, President of China Yuchai, commented, "We are pleased to report continued growth and profitability in the first quarter of 2014 in a slower economic growth environment in China. We have, today also announced a dividend of US$ 1.20 per ordinary share for the financial year 2013, payable wholly in cash or in new shares at the option of the stockholder, in view of the better performance over 2012."

Mr. Hoh further explained, "Our diverse product lines again created growth opportunities as we sold more engines to the truck market and the agriculture segment. We are encouraged over our natural gas engines as sales continued to post strong growth in 2014. Eight new engines have been launched in 2014, joining the 12 new engines launched in 2013, to further solidify our leadership in multiple market segments in China."

"We remain cautious as the Chinese government implements wide-ranging reforms to restructure its economy. As we enter into the replacement cycle for trucks, we believe that this combined with the continued pre-buying of National III-compliant commercial vehicles and the increase in public housing and railway construction will help sustain overall engine sales in 2014," Mr. Hoh concluded.


Regular Dividend News

SINGAPORE, May 12, 2014 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company") announced today that a dividend of US$1.20 per share of common stock for the financial year 2013 has been declared by its Board of Directors. The dividend payment will be made either wholly in cash or in new shares of CYI's common stock ("Shares") at the option of the stockholder.

Stockholders will make an election to receive the dividend either wholly in cash or in Shares. The number of Shares to be issued per share of common stock as a result of the dividend payment will be determined based on the volume weighted average trading prices of the Company's common stock on the New York Stock Exchange during the period from June 18 to and including June 20, 2014. The dividend is payable on July 7, 2014 to shareholders of record at the close of business on May 28, 2014 with an ex-dividend date of May 26, 2014.


Wednesday, February 26, 2014
Comments & Business Outlook

Fourth Quarter 2013 Financial Results

  • Net revenue increased 24.5% to a fourth quarter record high of RMB 4.1 billion (US$ 666.6 million) compared with RMB 3.3 billion in the fourth quarter of 2012;
  • Earnings per share increased 11.3% to RMB 6.61 (US$ 1.08) compared with RMB 5.94 in the fourth quarter of 2012;

Mr. Weng Ming Hoh, President of China Yuchai, commented, "We ended the year strong with a new net revenue record for any fourth quarter achieved by the Company. According to data from the China Association of Automobile Manufacturers ("CAAM"), in 2013, our engine unit sales growth of 16.1% (inclusive of engines for both on-road and off-road applications) far surpassed the 5.6% growth in the commercial vehicle diesel engine market. Our investment in growing our technology base enabled us to provide more solutions to meet our customers' needs. We have introduced a full line of natural gas engines to complement our wide range of diesel engines. We were one of the earliest companies in China to launch a National IV compliant diesel engine and we now have a diversified engine portfolio meeting the current National IV emission standards. In addition, we also have available diesel and natural gas engines that comply with the more stringent National V emission standards. To penetrate off-road markets and enhance our growth, we have launched new engines in the high horsepower markets to capture more share in the marine, mining, construction equipment and power generation markets. Between 2013 and 2014, we launched 20 new engine models to increase our leadership position and to provide new solutions to our customers. "

Mr. Kok Ho Leong, Chief Financial Officer of China Yuchai, stated, "We continue to focus on maintaining a strong balance sheet to provide the resources to take advantage of our growth opportunities and reward our shareholders."


Wednesday, February 19, 2014
Deal Flow

China Yuchai International Extends Loan Agreement with HL Global Enterprises Limited

SINGAPORE, February 19, 2014 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company"), announced today that its wholly-owned subsidiary Venture Lewis Limited ("VLL") has entered into a loan agreement with HL Global Enterprises Limited ("HLGE") ("2014 Loan Agreement") for the extension of a loan of S$68,000,000 ("Loan") to HLGE. The original amount of the Loan was S$93,000,000 which was granted to HLGE in February 2009 to refinance the zero coupon, unsecured, non-convertible bonds ("Bonds") issued by HLGE in 2006 and which matured on July 3, 2009 ("Maturity Date"). However, the principal amount has been reduced to S$68,000,000 pursuant to partial repayments of S$10,000,000, S$8,000,000 and S$7,000,000 made by HLGE in February 2011, April 2012 and July 2013 respectively. The Company through another wholly-owned subsidiary, Grace Star Services Ltd., owns 48.9% of the issued ordinary shares of HLGE.

The unsecured Loan has, pursuant to the terms of the 2014 Loan Agreement, been extended for one year from July 2014 and is due for repayment in July 2015. Under the terms of the 2014 Loan Agreement, the interest payable will remain as the aggregate of a margin of 1.25% per annum and the 12-month Singapore Interbank Offer Rate expressed in a percentage rate fixed by the Association of Banks in Singapore for Singapore Dollars as of February 18, 2014. In the event the interest rate charged on external funds utilized by China Yuchai for their investment in HLGE is increased, the Company has a right to negotiate with HLGE with a view to agreeing on an increase in the interest rate payable by HLGE under the 2014 Loan Agreement subject to compliance with certain regulatory requirements. A negative pledge undertaking against any disposal or creation of security over substantially all of HLGE's assets without VLL's consent is also included.


Monday, January 27, 2014
Comments & Business Outlook

SINGAPORE, January 27, 2014 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company"), announced today that the Company's main operating subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL"), has, at a product conference held in Nanning City, capital of Guangxi Province in China, unveiled 8 new engine models to further increase its leadership in the engine market in 2014.

To better meet the needs of the truck and bus markets in China, several new engine models were introduced, all meeting the National IV emission standards:

  • The new YC4E-48 is a light-truck diesel engine for urban logistical uses, special purpose vehicles and other vehicles focused on short- to mid-range transportation. This model uses a two-valve cylinder head combined with a Bosch common rail system paired with EGR, DOC and POC technologies. Its power range covers 103-118 KW and its advantage is enhancing operating cost savings.
  • The YC4D20 2 litre diesel engine was jointly developed by GYMCL and AVL Powertrain Engineering. It produces 60 KW/L of power for SUVs/MPVs/N2 light-duty trucks and buses that are shorter than 6 meters. This engine uses 4 valves per cylinder, double overhead camshafts, high-pressure common rail injection technology, an electric EGR valve and variable swirl intake system.
  • A redesigned 400-horsepower YC6MK engine for on-road trucks. This model provides enhanced low-speed torque improving stability when using high-speed gears. In addition to a reduction in fuel consumption, the engine's noise level has also been reduced by more than 3 decibels providing superior comfort. More than 70% of the core components of the YC6MK engine are industry-leading global products assembled under best practices in the industry.
  • The model YC4S-48 which was upgraded from the YC4S engine for the high-end, light-truck market. This model targets mid- and high-end, on-road vehicles with a load capacity between 5-8 metric tons. It generates 88-110 KW power using a common rail system paired with EGR, DOC and POC technologies.

GYMCL also introduced its second-generation hybrid engine, model YCHPT II, to address the growing customer demand for advanced hybrid engines. The engine adopts plug-in systems to charge the vehicles' batteries, and it features an upgraded gearbox with an interchangeable 5-speed automatic and manual system. This hybrid engine meets the national energy vehicle policy conditions set out in the Chinese government's 12th Five-Year plan, qualifying it for energy subsidies.

For the construction equipment market, two new engines were developed and launched to meet the EPA Tier 3 emission standards. The new model, YC6G220L-T31 series, replaces the 5 metric ton loaders' current 10-litre standard displacement engine with a 7.8 litres engine. This engine features a turbocharged intercooling system and an electronically controlled fuel injection system to enable quick adjustments to the engine's power and torque. Additionally, the new diesel engine model YC4FA45-T30 series targets hydraulic excavators and it features a mechanical rotary pump, with a faster response and low fuel consumption. This model meets the EU S3A or EPA Intermittent Tier 4 emission standards, and it has been awarded the e-mark certificate allowing for marketing into the European Union.

To further improve its position in the marine and power-gen engine markets, GYMCL launched the YC6CL1035L-C20 engine for low-speed engine applications. This engine is lightweight, fuel efficient and it is very adaptive allowing for different configuration options.

Weng Ming Hoh, President of China Yuchai, commented, "As a proud leader in the Chinese engine market, we are once again raising the bar with our new models for 2014. We continue to add advanced technologies to enhance the operating performance of our suite of engines. Since 2013, we have launched 20 new engine models to our broad portfolio of diesel and natural gas engines to better meet the needs of our customers across diverse market segments. Our robust product portfolio and strong pipeline demonstrates our advanced technical capabilities, dedication to innovation and commitment to customer relationships in the Chinese commercial engine market."


Friday, December 27, 2013
Comments & Business Outlook

SINGAPORE, Dec. 27, 2013 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company"), announced today that engine sales by its main operating subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL") is expected to exceed 500,000 units in 2013 compared with 431,350 units in 2012.

GYMCL's total unit sales in 2013 is anticipated to exceed the average growth in the engine industry in China.


Wednesday, December 11, 2013
Comments & Business Outlook

SINGAPORE, December 11, 2013 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company"), announced today that the first vehicles using heavy-duty diesel engines produced by the Company's main operating subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL"), have been delivered to Zibo Yaoxin Logistics Co., Ltd (ZYL).

The Shandong office of GYMCL together with Dongfeng Liuzhou Motor Co., Ltd., recently participated in a ceremony in Zichuan District, Zibo in Shandong Province, marking the delivery of 10 heavy-duty trucks powered by GYMCL's YC6MK engines to ZYL. With over 100 vehicles in its fleet, ZYL mainly transports ceramics and chemical materials between the ports of Zibo and Weifang in Shandong Province. ZYL previously used vehicles powered by engines from other manufacturers but has now decided to switch to GYMCL's engines.

The YC6MK 6-cylinder engine is an upgraded model from the existing 6M engine using newly developed 6K technology. This new generation, patented four-valve, supercharged, heavy-duty engine is compliant with National 4 emission standards. The YC6MK's four-valve technology with its unique combustion system provides increased power while reducing fuel consumption.

Weng Ming Hoh, president of China Yuchai, commented, "We welcome ZYL as a new customer and we are pleased that our advanced, heavy-duty diesel engine has been exclusively preferred over other engine manufacturers. The selection of our YC6MK engine is an endorsement of its enhanced power, higher reliability, environmental friendliness and lower fuel consumption. We believe this initial order signals a good opportunity for us to expand further in this region."


Monday, November 11, 2013
Comments & Business Outlook

Third Quarter 2013 Financial Results

  • Net revenue increased 21.6% to RMB 3.7 billion (US$ 608.7 million) compared with RMB 3.1 billion in the third quarter of 2012;
  • Earnings per share were RMB 2.86 (US$ 0.46) compared with RMB 2.98 in the third quarter of 2012;

Mr. Weng Ming Hoh, President of China Yuchai, commented, "We are pleased with our continued revenue growth. Similar to the previous quarter, the 'pre-buy' effect is still evident and we continue to fulfill orders from our OEM customers. China is gradually implementing the National IV emissions standard nationwide in its efforts to improve its on-going environmental issues. Our diversified product portfolio and in-house developed proprietary technologies enabled us to increase market share throughout the marketplace product upgrade. Our superior technology worked to our advantage as it enabled us to meet the increasing stringent emission standards in the industry. In addition to our product strategy, we continue to position ourselves strategically by forming key long-term partnerships. We are focused on maintaining our market leadership in the Chinese engine industry."

Mr. Kok Ho Leong, Chief Financial Officer of China Yuchai, stated, "We continued to improve our sound balance sheet and maintained our operating margin. While we are benefiting from the improved sentiment in the engine market, we remain cautious over the overall macroeconomic environment as the Chinese government focuses on restructuring the Chinese economy for its long-term viability and future growth prospects."


Monday, October 14, 2013
Joint Venture

SINGAPORE, Oct. 14, 2013 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company"), announced today changes in the ownership structure of the joint venture entered into by its main operating subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL") and GYMCL's joint venture company, Y&C Engine Co., Ltd. ("Y&C Engine") with Baotou BeiBen Heavy Duty Truck Co., Ltd. ("BeiBen") and Inner Mongolia First Machinery Group Co., Ltd. ("First Machinery Group"), which was announced on June 4, 2013.

Further to discussions between the joint venture parties, the First Machinery Group will exit from the joint venture and be replaced with Baotou Beifang Chuangye Co., Ltd. ("Beifang") in which the First Machinery Group is the single largest shareholder with a 23.62% interest as reported in Beifang's semi-annual report released on August 27, 2013, covering the period January 1, 2013 to June 30, 2013.

Beifang is listed on the Shanghai Stock Exchange and is principally engaged in the research, development, manufacture and sale of railway transportation vehicles. The Company distributes its products domestically in China as well as overseas. As at the end of June 2013, Beifang had net assets of RMB 2.3 billion and net profit of RMB 164 million.

Beifang will hold 15% of the new joint venture entity with the remaining 85% interest held between BeiBen, GYMCL and Y&C Engine.


Monday, September 9, 2013
Comments & Business Outlook

SINGAPORE, Sept. 5, 2013 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company") announced today that the YC6K 6 cylinder 12L series of engines developed by Y & C Engine Co., Ltd. ("Y&C"), a joint venture of the Company's principal operating subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL"), have been awarded the European Union's ("EU") E-mark certification.

In order to enter the EU market, automotive systems, electronic products and a variety of related components must be certified to meet the basic requirements of traffic safety, noise levels and environmental protection. The E-mark is a compulsory safety certification mark which the European Commission requires member states to display on motor vehicles, parts and systems.

The tests were conducted on Y & C's test stands which are certified to Euro IV and Euro V emission standards as well as on-board diagnostic certification for heavy-duty engines, and all tests were successfully completed.

Mr. Weng Ming Hoh, President of China Yuchai, commented, "By achieving the stringent E-mark certification, we have demonstrated that our advanced engines meet global technology and performance standards. Our YC6K diesel engines can now access countries that adopt EU regulations, which significantly broaden our export opportunities for these engines."


Monday, August 19, 2013
Comments & Business Outlook

SINGAPORE, August 19, 2013 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company") announced today that the Dalian Public Transport Group ("DPTG") Tourism Branch is using engines manufactured by its subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL), in 80% of its fleet of approximately 80 buses. GYMCL's engines have now become DPTG's preferred engine for use.

In 2008, DPTG started using GYMCL's engines in several of its buses and found that these buses outperformed other buses in their fleet running on other engines. DPTG attributed the difference to the reliability, fuel economy and adaptability of GYMCL's engines. GYMCL's excellent after-market service and ready availability of parts also played a part in DPTG's decision to switch to GYMCL's engines.

DPTG's buses are in continuous operation to provide reliable mass transportation in Dalian, Liaoning Provincein North-East China. DPTG's buses range from 10 - 12 meters and typically travel routes from between 300 - 3,000 kilometers. DPTG specially highlighted GYMCL's YC6M and the YC6MK engines for its superior power and fuel efficiency especially when used in mountainous terrain. The YC6M engine is a 10-liter, 6-cylinder in-line engine and the YC6MK is an upgraded YC6M model using newly developed 6K technology. The YC6MK engine has a 10.34-liter capacity and its main applications are in the heavy-duty truck, coach and bus market as well as in heavy construction machinery.

Weng Ming Hoh, President of China Yuchai, commented, "We are pleased that our heavy-duty engines continue to dominate the Chinese bus market. The YC6MK has become our new flagship engine targeting the heavy-duty truck, coach and over 12 meter bus markets. We are actively working with our original equipment manufacturers to increase visibility and acceptance of our YC6MK engines so as to further expand our market share in this important segment."


Monday, August 5, 2013
Regular Dividend News

SINGAPORE, Aug. 5, 2013 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company") announced today that an interim cash dividend of US$0.10 per ordinary share for the financial year 2013 has been declared by its Board of Directors. The interim cash dividend will be paid on August 26, 2013 to shareholders of record as of the close of business on August 16, 2013.


Comments & Business Outlook

Second Quarter of 2013 Financial Results

  • Net revenue was RMB 4.25 billion (US$ 688.1 million) compared with RMB 3.43 billion in the second quarter of 2012;
  • Gross profit was RMB 855.2 million (US$ 138.4 million), with a gross margin of 20.1% compared with 19.7% in the second quarter of 2012;
  • Operating profit was RMB 333.8 million (US$ 54.0 million) compared with RMB 210.1 million in the same quarter a year ago;
  • Net earnings attributable to China Yuchai's shareholders were RMB 166.3 million (US$ 26.9 million) compared with RMB 67.1 million in the second quarter of 2012;
  • Earnings per share were RMB 4.46 (US$ 0.72) compared with RMB 1.80 for the same quarter in 2012

Mr. Weng Ming Hoh, President of China Yuchai, commented, "We are pleased to report a good quarter with growth in net revenue and operating profit. We continued to expand our market share and maintained our leadership in the world's largest commercial vehicle market. Our natural gas engines continue to gain market acceptance as our gas combustion technology helped generate strong fuel conservation with reduced emissions. In the first six months of this year, we sold approximately 13,000 natural gas engines, representing a 92% increase year-on-year. We continue to expand on our strategy of producing world-class engines through superior research and development combined with manufacturing excellence."

"We rewarded shareholders with a cash dividend of US$ 0.80 per share on July 10, 2013 for financial year 2012 and have just announced an interim cash dividend of US$ 0.10 per share for financial year 2013. However, we remain cautious as we enter the second half of 2013 in view of the uncertainty over China's economy. Notwithstanding, we continue to strive to maintain our market leadership in the Chinese engine industry," Mr. Hoh concluded.


Monday, June 17, 2013
Regular Dividend News

SINGAPORE, June 17, 2013 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company") announced today that a dividend of US$0.40 per ordinary share and a special dividend ofUS$0.40 per ordinary share for the year ended December 31, 2012 has been declared by its Board of Directors. The cash dividend will be paid on July 10, 2013 to shareholders of record as of the close of business on June 28, 2013.


Tuesday, June 4, 2013
Joint Venture

SINGAPORE, June 4, 2013 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company"), announced today that its main operating subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL") and GYMCL's joint venture company,Y&C Engine Co., Ltd. ("Y&C Power"), has entered into a Framework Agreement with Baotou Bei Ben Heavy Duty Truck Co., Ltd. (" Bei Ben "), and Inner Mongolia First Machinery Group Co., Ltd. ("Yiji Group"), to form a new joint venture company ("JV Company"), to be located in Baotou, Inner Mongolia. The JV Company will have a registered capital of RMB 600 million.

The new JV Company will focus on the production of GYMCL's diesel and gas engine models YC6A, YC6L, YC6MK and Y&C Power's advanced diesel and gas engine model YC6K to meet the needs of Bei Ben's heavy-duty and medium-duty trucks and buses. GYMCL's service network and the repair and maintenance centres of Bei Ben will provide after-sales service for all engines sold by the JV Company. The annual production capacity of the JV Company is estimated to reach 100,000 units, subject to the prevailing market conditions.

Y&C Power is the joint venture company formed in 2009 between GYMCL, China International Marine Containers Containers Group Ltd and Chery Automobile Co., Ltd to produce the YC6K diesel engine.

GYMCL and Y&C Power will together hold 50% of the JV Company with Bei Ben and the Yiji Group holding the other 50%. Bei Ben , one of the top five truck manufacturers in China, and the Yiji Group are subsidiaries of China North Industries Group Corporation ("Norinco"). Norinco is one of China's 500 largest companies principally engaged in the manufacture and production of vehicles and equipment.


Thursday, May 30, 2013
Deal Flow

SINGAPORE, May 30, 2013 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company") announced today that its main operating subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL") further to the receipt of approval from China's National Association of Financial Market Institutional Investors ("NAFMII") for the issuance of Rmb denominated 3-year unsecured medium-term notes ("Notes") amounting to Rmb 1.6 billion had, on May 28, 2013 issued the first tranche of the Notes amounting toRmb 1 billion. The par value and issue price of each Note is Rmb 100. The fixed annual interest payable on the Notes is 4.69% which is the rate as of May 30, 2013. The maturity date of the Notes is May 30, 2016.

Subscription to and trading of the Notes is only available in China to institutional investors of China's National Inter-bank Bond Market. The first tranche of the Notes was underwritten by China CITIC Bank Corporation Limited. The proceeds from the issuance of the Notes are to be used by GYMCL to repay bank loans and for working capital purposes. It is believed that the issuance of the Notes is a cost-effective option of raising capital given that China's benchmark one-year lending rate is at 6%.

This press release does not constitute an offer of securities for sale in the United States, and securities may not be offered or sold in the United States absent registration or an exemption from registration. The Company does not intend to register any portion of the Notes issue referred to above in the United States or to conduct a public offering in the United States. Any public offering of securities to be made in the United States will be by means of a prospectus that can be obtained from the Company and that will contain detailed information about the Company and management, as well as financial statements.


Monday, May 13, 2013
Comments & Business Outlook

First Quarter 2013  Financial Results

  • Net revenue for the first quarter of 2013 was RMB 3.84 billion (US$ 613.1 million) compared with RMB 3.68 billion in the first quarter of 2012. The increase in net sales was RMB 161.7 million, or 4.4% as compared with the same period in 2012.
  • Gross profit was RMB 777.3 million (US$ 124.0 million) compared with RMB 779.4 million in the first quarter of 2012. Gross margin decreased to 20.2% in the first quarter of 2013 as compared with 21.2% a year ago.
  • Net profit attributable to China Yuchai's shareholders was RMB 173.5 million (US$ 27.7 million), or earnings per share of RMB 4.66 (US$ 0.74), compared with RMB 167.9 million, or earnings per share of RMB 4.50 in the same quarter in 2012.

Mr. Benny H Goh, President of China Yuchai, commented, "We regained revenue growth, outperformed the Chinese diesel engine market and further expanded our market leadership. Industry data indicates that sales of diesel-powered commercial vehicles declined by 6.8% while our total unit sales remained steady year-over-year. Unit sales of our light-duty and heavy-duty engines rose in the first quarter of 2013 compared with a year ago. Our engine sales in the agriculture segment improved compared with sales in the first quarter last year. The increase in heavy-duty unit sales in the first quarter of 2013 reinforces our belief in the long-term potential of this market segment."

Mr Goh further commented, "We continue with our strategy to deliver a range of diverse high-quality, high-performance engines to better meet the needs of our customers and break into new markets. Our research and development programs continue to focus on upgrading our existing suite of products and developing new engine products. Our research capabilities and evolving product line of light-duty, medium-duty and heavy-duty engines continue to place us at the forefront of China's automotive market.

"The Chinese government is increasing its focus on combating air pollution and the National IV emission standards for diesel engines are targeted to be implemented throughout China on July 1, 2013. Notwithstanding, we remain guarded over growth in 2013 due to the continuing weak and uncertain recovery in the global economy."


Thursday, May 9, 2013
Comments & Business Outlook

SINGAPORE, May 9, 2013 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company"), announced today that its main operating subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL"), has won two of the most prestigious auto part after-sales service awards in China.

At an award ceremony in April 2013 hosted by "Commercial Vehicle", a major industry publication in China, GYMCL won the premier "Gold Cup Award" as well as the "Annual Service Award". This annual award ceremony is the culmination of a large survey conducted over a few months, involving visits to commercial vehicle manufacturers, service providers and interviews with nearly 2,000 commercial vehicle drivers. The survey results provided a comprehensive understanding of China's commercial vehicle after-sales market in 2012 to improve transparency and help to standardize after-sales services. Representatives from commercial vehicle manufacturers, auto parts companies, and after-sales service providers from around China were in attendance at the award ceremony.

Benny H. Goh, president of China Yuchai, commented, "We have invested time and effort in developing the largest after-sales service network with over 2,800 locations across China and these two awards are an acknowledgement by our customers and peers of the high-quality of our after-sales service. Our investment in developing high-quality products, technology and advanced management systems has been recognized by our OEM customers, distributors and end user customers for their affordability, reliability and efficiency. We have been ranked No. 1 for our service standards for ten consecutive years, and we intend to further enhance our service network expertise in 2013 to be among the first with capabilities to service vehicles complying with new and more stringent emissions standards," concluded Mr. Goh


Friday, April 12, 2013
Comments & Business Outlook

SINGAPORE, April 12, 2013 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company"), announced today that its main operating subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL"), has sold 298 units of its YC6J gas and electric hybrid engines to the Baoding Bus Company in Hebei Province.

The Baoding Bus Company is the first company in Baoding City to operate buses using GYMCL's gas and electric hybrid engines ("Engine"). One hundred and fourteen buses fitted with this Engine were delivered to the Baoding Bus Company in March 2013 and the remaining buses are scheduled to be delivered in April 2013. Baoding City which connects to the southern side of Beijing, is located in the central part of Hebei Province and has a population of almost 11 million.

The hybrid YC6J medium-duty engine was launched in October 2010 and is primarily intended for use in public buses and coaches of between 8-11 meters in length. The battery-powered motors in the hybrid buses significantly reduce fuel consumption and emissions. The YC6J engine previously compliant only with National IV emission standards have been upgraded to meet the National V emission standards. A 24/7 remote tracing and diagnostic service is provided for each engine supplied by GYMCL to the Baoding Bus Company in order to ensure optimal performance.

Benny H. Goh, President of China Yuchai, commented, "Our gas and electric hybrid engine was specifically designed for use in crowded urban environments such as Baoding City. This engine consumes less fuel and generates lower emissions than standard engines, which are tremendous advantages for urban bus operators. This order from the Baoding Bus Company is a further validation of our strategy to provide diversified solutions to meet the changing requirements of our customers and support the Chinese government's drive to reduce emissions and conserve the environment. Our innovation in engine technology continues to position us as a leading engine supplier to the bus market in China.


Wednesday, February 27, 2013
Comments & Business Outlook

Fourth quarter of 2012

  • Net revenue was RMB 3.26 billion (US$ 519.3 million) compared with RMB 3.75 billion in the fourth quarter of 2011;
  • Gross profit was RMB 804.9 million (US$ 128.1 million), a 24.7% gross margin;
  • Operating profit was RMB 382.3 million (US$ 60.8 million) compared with RMB 649.4 million in the same quarter a year ago;
  • Net earnings attributable to China Yuchai's shareholders were RMB 217.8 million (US$ 34.7 million); and
  • Earnings per share were RMB 5.84 (US$ 0.93).

Mr. Benny H Goh, President of China Yuchai, commented, "2012 was not an easy year for China Yuchai. However, our strategy of selling into multiple engine markets has allowed us to maintain our market leadership and going forward, we will be even better positioned in the market with the expected launch of 5 new National IV compliant diesel and 7 new National V compliant natural gas engines in 2013. These new engines further enhance our product portfolio, already the broadest in the Chinese commercial vehicle engine industry, and provide a wider range of engines to meet the anticipated implementation of National IV emission standards nationwide in China. We also complement our diesel engines by offering similar natural gas engines in the light-, medium- and heavy-duty engine markets, which will help forge another stream of growth. We maintained our leadership in the bus engine market and preserved our position in the truck market in 2012, despite the heavy-duty diesel truck market declining by 28.6%. Going into 2013, diversification into high-horsepower engines will be the catalyst to further penetrate into the marine, power generation and mining industries."


Wednesday, January 30, 2013
Deal Flow

SINGAPORE, Jan. 30, 2013 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company"), announced today that its wholly owned subsidiary Venture Lewis Limited ("VLL") has entered into a loan agreement with HL Global Enterprises Limited ("HLGE") ("2013 Loan Agreement") for the extension of a loan of S$75,000,000 ("Loan") to HLGE. The original amount of the Loan was S$93,000,000 which was granted to HLGE in February 2009 to refinance the zero coupon, unsecured, non-convertible bonds ("Bonds") issued by HLGE in 2006 and which matured on July 3, 2009 ("Maturity Date"). However, the principal amount has been reduced to S$75,000,000 pursuant to partial repayments of S$10,000,000 and S$8,000,000 made by HLGE in February 2011 and April 2012 respectively. The Company through another wholly-owned subsidiary, Grace Star Services Ltd., owns 48.9% of the issued ordinary shares of HLGE.

The unsecured Loan has, pursuant to the terms of the 2013 Loan Agreement, been extended for one year from July 2013 and is due for repayment in July 2014. Under the terms of the 2013 Loan Agreement, the interest payable will remain as the aggregate of a margin of 1.50% per annum and the 12-month Singapore Interbank Offer Rate expressed in a percentage rate fixed by the Association of Banks in Singapore for Singapore Dollars as of January 29, 2013 which was 0.561%. In the event the interest rate charged on external funds utilized by China Yuchai for their investment in HLGE is increased, the Company has a right to negotiate with HLGE with a view to agreeing on an increase in the interest rate payable by HLGE under the 2013 Loan Agreement subject to compliance with certain regulatory requirements. A negative pledge undertaking against any disposal or creation of security over substantially all of HLGE's assets without VLL's consent is also included.

The Company's Board of Directors approved the Loan extension after taking into account (i) the continued challenges facing HLGE's hospitality operations in China from increasing competition and the slowdown in China's economy which impacted on its results; (ii) the weak financial position of HLGE and its difficulties in obtaining financing from financial institutions, (iii) the need to provide continuing support to HLGE to allow it sufficient time to dispose of its non-performing assets in an orderly manner to repay the Loan, and (iv) continued efforts being made by HLGE to explore opportunities to grow its earnings base and improve its cash flow. This transaction has also been reviewed and approved by the Company's audit committee who has determined that the terms of the Loan extension are fair and reasonable and are not prejudicial to the interests of the Company's shareholders. In coming to its decision, in addition to the various factors set out in this paragraph, the audit committee also considered the costs and sources of funding for the Loan and the recoverability of the Loan based on a valuation of HLGE's assets.



Monday, November 12, 2012
Comments & Business Outlook

Third quarter of 2012

  • Net revenue was RMB 3.08 billion (US$ 485.2 million) compared with RMB 3.45 billion in the third quarter of 2011;
  • Gross profit was RMB 621.5 million (US$ 98.0 million), a 20.2% gross margin compared with RMB 691.0 millionin the third quarter of 2011, a 20.0% gross margin;
  • Operating profit was RMB 215.2 million (US$ 33.9 million) compared with RMB 166.9 million in the same quarter a year ago;
  • Net earnings attributable to China Yuchai's shareholders were RMB 111.1 million (US$ 17.5 million) versus RMB 63.6 million in the same quarter in 2011;
  • Earnings per share were RMB 2.98 (US$ 0.47) compared with RMB 1.71 for the same period in 2011.
Mr. Benny H Goh, President of China Yuchai, commented, "We successfully maintained our market position during the third quarter, 2012 despite the continued softening in the commercial vehicle market. The truck market remained weak with the heavy-duty segment continuing to experience much slower demand as sales declined 27.4% compared with a year ago. As a leading engine producer in China, we continue to benefit from selling into diversified markets with our new products, many of which are geared towards more stringent emission standards and better fuel economy. As we increase our production capacity for engines targeting the natural gas and high-horsepower markets, our market reach will expand. This competitive advantage enabled us to maintain our average selling price and our gross margin. There is an increasing focus on clean energy and energy conservation and we believe that we are developing the right products to meet current and future market demand in the world's most populous nation. We continue to strengthen our balance sheet and we remain focused on generating positive cash flow."

Friday, October 19, 2012
Joint Venture

SINGAPORE, Oct. 19, 2012 /PRNewswire-FirstCall/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company"), announced today that its main operating subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL") has entered into a new joint venture with Guangxi Skylink Software Technology Co., Ltd ("Guangxi Skylink") to design, develop, manage and market an Electronic Operations Management Platform ("the Platform"). The Platform offers radio-frequency identification capabilities and will enable the owners and operators of vehicles who use the Platform to remotely monitor engine performance and pinpoint vehicle location through GPS tracking. The Platform will provide instant communication between GYMCL, vehicle operators using its diesel engines and the vehicle owners. In the future, other service providers, customers and vendors will be integrated onto the Platform to conduct marketing and conclude sales which will improve supply chain efficiency.

The new joint venture company ("JV Company") will be located in the High-tech Industrial Development Zone of Nanning, the capital of Guangxi Province. Guangxi Skylink will own 60% of the JV Company with GYMCL taking the other 40%.

GYMCL is responsible for the Platform's engine interfaces, development of technical parameters and analytical techniques, development of the system's terminal and managing its e-commerce capabilities and customer service. Skylink Communications is responsible for the Platform's hardware, servicing the operating system, government relations, securing the physical infrastructure for the joint venture, and running the daily operations of the Platform.         

Benny Goh, President of China Yuchai, commented, "The Platform is the next generation of technology enabling communications within the vast Chinese transportation industry. Through this platform, we can remotely monitor the location of our engines, supervise real-time engine performance and conduct analytical diagnostics on any engine within the system. We and our customers will be able to use the Platform to better manage our supply chain operations. In the future, vehicle operators will be able to receive new instructions via our internet connectivity and order equipment through our marketing channels enabling faster and more efficient service.

"A number of potential customers have expressed interest in trying out this new system and we expect trials to commence later this year. There is an immediate need for this communications platform for the many buses and trucks in China which make up the largest commercial vehicle market in the world," Mr. Goh concluded.


Tuesday, August 28, 2012
Deal Flow

SINGAPORE, August 28, 2012 /PRNewswire-Asia-FirstCall/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company") announced today that its key subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL") has received approval from China's National Association of Financial Market Institutional Investors ("NAFMII") for the issuance of RMB-denominated, unsecured, short-term financing bonds ("Bonds") amounting to RMB 1 billion. The Bonds will be issued on August 28, 2012 and mature on August 29, 2013. The par value and issue price of each Bond is RMB 100.

The Bonds will bear a fixed annual interest rate of 4.45%. Subscription to and trading of the Bonds is only available in China to institutional investors of China's National Inter-bank Bond Market. The lead underwriter and bookrunner for the Bonds is the Industrial and Commercial Bank of China.

The proceeds from the issuance of the Bonds are to be used by GYMCL for working capital purposes. GYMCL decided on the Bonds issue as it is a cost effective option of raising capital in the current monetary market. China's benchmark one-year lending rate is currently at 6% and the prevailing discount rate for bank bills is higher than the fixed annual interest rate of the Bonds.

This Bonds issuance is in addition to the RMB 690 million short-term financing bonds issued by GYMCL on November 22, 2011. GYMCL will continue to review its financing strategy according to changes inChina's economic environment and monetary policy.

This press release does not constitute an offer of securities for sale in the United States, and securities may not be offered or sold in the United States absent registration or an exemption from registration. The Company does not intend to register any portion of the Bonds issue referred to above in the United States or to conduct a public offering in the United States. Any public offering of securities to be made inthe United States will be by means of a prospectus that can be obtained from the Company and that will contain detailed information about the Company and management, as well as financial statements.


Friday, August 10, 2012
Comments & Business Outlook

Second Quarter 2012 Results

  • Net revenue was RMB 3.43 billion (US$ 541.7 million) compared with RMB 4.02 billion in the second quarter of 2011;
  • Gross profit was RMB 674.1 million (US$ 106.6 million), a 19.7% gross margin compared with RMB 771.1 million in the second quarter of 2011, a 19.2% gross margin;
  • Operating profit was RMB 210.1 million (US$ 33.2 million) compared with RMB 290.2 million in the same quarter a year ago;
  • Net earnings attributable to China Yuchai's shareholders were RMB 67.1 million (US$ 10.6 million) versus RMB 155.1 million in the same quarter in 2011;
  • Earnings per share were RMB 1.80 (US$ 0.28) compared with RMB 4.16 (US$ 0.66) for the same period in 2011.

Mr. Benny H Goh, President of China Yuchai, commented, "Following a weak first quarter, the Chinese truck market continued to deteriorate and the heavy-duty truck sector experienced a further decline in the second quarter of 2012. The bus market remains a bright spot in the commercial vehicle market. As a leading player in the medium to large bus sector in China, we continued to benefit from higher bus sales. Our diversified product mix, once again, enabled us to defend our gross margin in the second quarter of 2012 and maintain a competitive edge despite the overall weak commercial vehicle market. We continued to increase sales in the natural gas engine sector and maintained our leadership in the on-road diesel engine market through our ongoing introduction of new products and closer collaboration with our OEM customers. We will continue to maintain a strong balance sheet in the midst of an uncertain market. We were able to improve cash-flow from operations due to our continual management of inventory and accounts receivables.


Friday, July 13, 2012
Joint Venture

SINGAPORE, July 13, 2012 /PRNewswire-Asia-FirstCall/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company"), announced today the inauguration of Yuchai Remanufacturing Services (Suzhou) Co., Ltd's ("Yuchai Remanufacturing") new permanent factory at Suzhou Industrial Park. The new factory will replace Yuchai Remanufacturing's operations at a temporary workshop located nearby.

Yuchai Remanufacturing is a joint venture company formed in 2010 between the Company's main operating subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL") and Caterpillar (China) Investment Co., Ltd. ("Caterpillar China"), a subsidiary of Caterpillar Inc. to provide remanufacturing services mainly for GYMCL's diesel engines and components. Yuchai Remanufacturing delivered its first remanufactured engine in September 2011. With phase one of the permanent plant commencing operations, approximately 14,000 square meters of space is now available to support Yuchai Remanufacturing's activities. The new plant is expected to reach full operational capacity in 2014 with approximately 400 employees.

Mr. Yan Ping, Chairman of the Board of Directors of GYMCL together with representatives from Caterpillar and members from the Working Committee of the Suzhou Industrial Park as well as from the Chinese Academy of Engineering attended the inauguration ceremony.

Mr. Benny H. Goh, President of China Yuchai, commented, "Moving into our new permanent facility sets the groundwork for us to reach our remanufacturing goals in the future. Through our sophisticated remanufacturing process, matured parts and components are transformed to become like-new products in terms of reliability, durability and performance which is a cost-effective solution for our customers. Our remanufacturing services will minimize raw material usage and waste during the remanufacturing process thereby enhancing our "green" environment agenda. We expect Yuchai Remanufacturing to become the leader in China for remanufactured engine parts."


Thursday, July 5, 2012
Comments & Business Outlook

SINGAPORE, July 5, 2012 /PRNewswire-Asia-FirstCall/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company"), announced today that its main operating subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL"), has, based on unit sales in the first six months of 2012, maintained its leading position in the diesel engine industry in China.

Despite the recent slowdown in China's domestic truck market, GYMCL was able to arrest a decline in its market share of the diesel engine market with its comprehensive offerings, well-established products, and its extensive service network of over 2,800 service stations throughout China. GYMCL has established excellent relationships with key automotive manufacturers such as Dongfeng Motor, Beiqi Foton Motor and JAC Motor. GYMCL has extended its heavy-duty engine sales to mining applications and has become one of the leading engine suppliers for mining trucks. It is also ranked second in terms of engine sales to trucks which are used for engineering construction. GYMCL's goal is to become one of China's four largest heavy-duty engine providers by 2015.

GYMCL has five heavy-duty product offerings: YC6A, YC6G, YC6L, YC6MK and YC6K, with a displacement range of between 7.3 liters to 13 liters corresponding to a power range of between 280 and 550 horsepower. Notwithstanding that GYMCL entered the heavy-duty diesel engine market later than its competitors, its products have quickly gained a reputation for reliability, high performance, low emissions and low fuel consumption compared with other products. Most of these advantages result from GYMCL's advanced engine designs.

Mr. Benny H. Goh, President of China Yuchai, commented, "GYMCL's leadership in the diesel engine industry is the result of our strategic plan. We have the widest range of engines in China to meet the needs of a number of important engine markets which combined with industry-leading research and development capabilities, enable us to meet our customers' requirements. Our advanced heavy-duty engines will improve GYMCL's market share and we believe GYMCL is well-positioned to continue to lead the diesel engine industry in China."


Friday, June 15, 2012
Special Dividend
SINGAPORE, June 15, 2012 /PRNewswire-Asia-FirstCall/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company") announced today that a dividend of US$0.50 per ordinary share and a special dividend of US$0.40 per ordinary share for the year ended December 31, 2011 has been declared by its Board of Directors. The cash dividend will be paid on July 9, 2012 to shareholders of record as of the close of business on June 28, 2012.

Tuesday, May 22, 2012
Joint Venture

SINGAPORE, May 22, 2012 /PRNewswire-Asia-FirstCall/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company"), announced today changes to its joint venture entered into by its main operating subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL") with Zhejiang Geely Holding Group Co., Ltd. ("Geely") and Zhejiang Yinlun Machinery Co, Ltd. ("Yinlun").

Pursuant to the Equity Joint Venture Agreement entered into between GYMCL, Geely and Yinlun, two joint venture companies were to be established for the development, production and sales of a proprietary diesel engine and its parts for passenger vehicles. Subsequently in 2008, Jining Yuchai Engine Company Limited ("Jining Yuchai") and Zhejiang Yuchai Sanli Engine Company Limited ("Zhejiang Yuchai") were established in Jining, Shandong Province and Tiantai, Zhejiang Province, respectively. The main product of the joint ventures was to be a 4D20 diesel engine and the technology for the new diesel engine was to be purchased from Geely subject to certain specified design technology standards being met. GYMCL was the controlling shareholder with 52% in both joint ventures with Geely and Yinlun holding 30% and 18% shareholding, respectively.

Further to discussions between GYMCL, Geely and Yinlun, in order to streamline the operations of both joint venture companies and to ensure that GYMCL's resources and costs are prudently allocated, a share swap agreement has been entered into such that GYMCL exits from Zhejiang Yuchai and focuses only on Jining Yuchai. The share swap involves GYMCL transferring its 52% shareholding in Zhejiang Yuchai to Yinlun, and Yinlun transferring its 18% shareholding in Jining Yuchai to GYMCL. Upon the completion of the share swap, GYMCL will hold a 70% shareholding in Jining Yuchai with Geely maintaining its 30% shareholding. The technology for the 4D20 diesel engine purchased from Geely will be entirely owned by Jining Yuchai. The share swap between GYMCL and Yinlun at historical cost, will result in a cash payment of Rmb 25 million from Yinlun to GYMCL.

As a result of the share swap, GYMCL through Jining Yuchai will concentrate on continuing the development and production of the 4D20 diesel engine which is central to the joint venture, and Zhejiang Yuchai's focus will be on manufacturing crankshafts. As earlier reported, the second- and third-generation prototype 4D20 diesel engines are currently undergoing developmental tests which are scheduled to be completed at the end of 2012.


Monday, May 14, 2012
Comments & Business Outlook

First Quarter 2012 Results

  • Net revenue was RMB 3.7 billion (US$ 585.0 million) compared with RMB 4.2 billion in the first quarter of 2011;
  • Gross profit was RMB 779.4 million (US$ 123.8 million), a 21.2% gross margin compared with RMB 944.1 million in the first quarter of 2011, a 22.3% gross margin;
  • Operating profit was RMB 347.2 million (US$ 55.2 million) compared with RMB 428.5 million in the same quarter a year ago;
  • Net earnings attributable to China Yuchai's shareholders were RMB 167.9 million (US$ 26.7 million) versus RMB 230.5 million in the same quarter in 2011;
  • Earnings per share were RMB 4.50 (US$ 0.72) compared with RMB 6.18 for the same period in 2011.

Mr. Benny H Goh, President of China Yuchai, commented, "The weak market conditions continued into the first quarter of 2012 and were exacerbated by higher fuel costs as well as sluggish demand from the OEMs despite a decrease in their inventory levels. The Chinese truck and diesel engine markets continue to stagnate as construction activity across China slowed down. While we are still encountering strong headwinds due to the continued softening in the commercial vehicle market, we are attempting to mitigate the impact through our diversification strategy of being in different industries and offering diesel engines of different sizes. The bright spot in the current market is the bus segment which has continued to show growth. Our development of new products such as our high horse power marine and power generator engines and suite of natural gas engines will help us when the market recovers. "


Tuesday, March 6, 2012
Comments & Business Outlook

SINGAPORE, March 6, 2012 /PRNewswire-Asia-FirstCall/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company") announced today that its main operating subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL") has inaugurated a new project to develop and produce a full portfolio of natural gas powered engines to complement its existing suite of diesel engines. Customers will be offered a greater choice of GYMCL's engines to meet their needs, especially in the large bus, mid- to heavy-duty truck, power generator and marine engine markets.

In recent years, the policies of the Chinese government have encouraged energy conservation and emissions reduction. China's 12th Five-Year Plan targets natural gas to make up 8.3% of the primary energy mix by 2015, which represents approximately 9.2 trillion cubic feet of gas, or more than three times the consumption in 2008. The major oil companies, China National Petroleum Corporation (CNPC), China Petrochemical Corporation (SINOPEC) and China National Offshore Oil Corporation (CNOOC) are actively building pipelines and natural gas facilities to increase the use of natural gas. These firms currently operate five gas product facilities, have 10 plants under construction with another five gas facilities in the planning stages. Two pipelines linking western to eastern China are in operation with a third under construction which will provide approximately 72 billion cubic meters of natural gas into eastern China.

The 12th Five-Year Plan also calls for between 10%-20% of municipal buses and large trucks to be powered by gas by 2020. In the gas-rich areas of China, there are now 101 liquefied natural gas (LNG) filling stations with plans to expand to 380 stations by the end of 2012. In 2009, when the development of new alternative energy diesel engines by GYMCL was announced, sales of high-quality and reliable gas powered engines rose 287% between 2009 and 2011.


Monday, February 27, 2012
Comments & Business Outlook

Fourth Quarter 2011 Results

  • Net revenue was RMB 3.7 billion (US$ 594.6 million) compared with RMB 3.8 billion in the fourth quarter of 2010;
  • Gross profit was RMB 1.0 billion (US$ 164.4 million), a 27.7% gross margin compared with RMB 1.3 billion in the fourth quarter of 2010, a 34.8% gross margin;
  • Operating profit was RMB 636.4 million (US$ 101.0 million) compared with RMB 793.9 million in the same quarter a year ago;
  • Net earnings attributable to China Yuchai's shareholders was RMB 342.6 million (US$ 54.4 million) versus RMB 448.9 million in the same quarter in 2010;
  • Earnings per share was RMB 9.19 (US$ 1.46) compared with RMB 12.05 in the same period in 2010.

Mr. Benny H Goh, President of China Yuchai, commented, "We are pleased with our performance in the difficult environment in China in 2011. While challenges were experienced in certain segments such as the heavy-duty diesel engine sector, our broad and diverse portfolio of diesel engines allowed us to leverage on our strength in the light-duty engine segment. In 2011, we also made progress into the market for off-road applications. Our off-road applications, noticeably in the engineering machinery, agricultural equipment and marine sector, although making up a small segment of sales in 2011, showed promising growth."


Monday, January 30, 2012
Comments & Business Outlook

SINGAPORE, January 30, 2012 /PRNewswire-Asia-FirstCall/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company") announced today that Yuchai Remanufacturing Services (Suzhou) Co., Ltd. ("Yuchai Remanufacturing Services"), the remanufacturing joint venture between its main operating subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL") and Caterpillar (China) Investment Co., Ltd. ("Caterpillar China"), received positive remarks at a recent assessment conference from the Guangxi Development and Reform Commission, a regional division of the National Development and Reform Commission ("NDRC").

Yuchai Remanufacturing Services which is held 49%-51% by Caterpillar China and GYMCL respectively, was incorporated in April 2010 in Suzhou, Jiangsu Province in China to provide remanufacturing services for and relating to GYMCL's diesel engines and components and certain Caterpillar diesel engines and components.


Thursday, January 19, 2012
Deal Flow
 

SINGAPORE, Jan. 19, 2012 /PRNewswire-Asia-FirstCall/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company"), announced today that its wholly owned subsidiary Venture Lewis Limited ("VLL") has entered into a loan agreement with HL Global Enterprises Limited ("HLGE") ("2012 Loan Agreement") for the extension of a loan of S$83,000,000 ("Loan") to HLGE. The original amount of the Loan was S$93,000,000 which was granted to HLGE in February 2009 to refinance the zero coupon, unsecured, non-convertible bonds ("Bonds") issued by HLGE in 2006 and which matured on July 3, 2009 ("Maturity Date").  However, the principal amount was reduced to S$83,000,000 pursuant to a partial repayment of S$10,000,000 made by HLGE in February 2011. The Company through another wholly owned subsidiary, Grace Star Services Ltd., owns 48.12% of the issued ordinary shares of HLGE.

The unsecured Loan has, pursuant to the terms of the 2012 Loan Agreement, been extended for one year from July 2012 and is due for repayment in July 2013. Under the terms of the 2012 Loan Agreement, the interest payable is the aggregate of a margin of 1.50% per annum, a reduction from 1.75% per annum from the previous loan extension and the 12-month Singapore Interbank Offer Rate expressed in a percentage rate fixed by the Association of Banks in Singapore for Singapore Dollars as of January 18, 2012 which was 0.584%. In the event the interest rate charged on external funds utilized by China Yuchai for their investment in HLGE is increased, the Company has a right to negotiate with HLGE with a view to agreeing on an increase in the interest rate payable by HLGE under the 2012 Loan Agreement subject to compliance with certain regulatory requirements.  A negative pledge undertaking against any disposal or creation of security over substantially all of HLGE's assets without VLL's consent is also included.

The Company's Board of Directors approved the Loan extension at a reduced interest rate after taking into account (i) the continued challenges facing HLGE's hospitality operations in China from increasing competition and the uncertain global economic outlook impacting on its results; (ii) difficulties faced by HLGE in obtaining financing from financial institutions, (iii) the need to provide continuing support to HLGE to allow it sufficient time to successfully dispose of its non-core and non-performing assets in an orderly manner to repay the Loan, and (iv) potential acquisition opportunities being explored by HLGE to grow its earnings base and improve its cash flow. This transaction has also been reviewed and approved by the Company's audit committee who has determined that the terms of the Loan extension are fair and reasonable and are not prejudicial to the interests of the Company's shareholders. In coming to its decision, in addition to the various factors set out in this paragraph, the audit committee also considered the costs and sources of funding for the Loan, reduction in interest income to the Company from a corresponding reduction in the interest rate charged, and the recoverability of the Loan based on a valuation of HLGE's assets.


Monday, January 9, 2012
CFO Trail

SINGAPORE, January 9, 2012 /PRNewswire-Asia-FirstCall/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company"), announced today the appointment of Mr. Kok Ho Leong as Chief Financial Officer with effect from January 9, 2012. Mr. Leong takes over from Benny H Goh, President of the Company who took on the role of Acting Chief Financial Officer on November 11, 2011.

Prior to this appointment, Mr. Leong was the Regional Commercial Manager for Parker Drilling Co. (NYSE: PKD) where he was responsible for financial reporting, tax, budgeting and compliance for the Asia Pacific region. Before that, he was Chief Financial Officer of KS Energy Services Limited which is listed on the Main Board of the Singapore Exchange, and he managed the accounting, finance, compliance and corporate secretarial functions. Mr. Leong's previous positions include Financial Controller / Senior Manager of Corporate Development at Alliance Technology & Development Ltd., and Finance Manager / Operation Manager for the Kuok Group of companies in China (Shenzhen and Chengdu) where he widened his business exposure and working knowledge of joint venture operations in China. He started his career in audit at Coopers & Lybrand in Singapore.

Mr. Leong has, in the course of his career gained extensive experience in financial reporting, auditing, cost and management accounting, tax, regulatory compliance by listed entities, budgeting and fund raising. Mr. Leong received his Bachelor of Accountancy from the National University of Singapore in 1988 and an MBA from the University of Southern Queensland in Australia in 1999. He is a Certified Public Accountant (CPA) of Singapore and a Fellow Certified Public Accountant (FCPA) of Singapore.


Thursday, January 5, 2012
Comments & Business Outlook

SINGAPORE, January 5, 2012 /PRNewswire-Asia-FirstCall/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company") announced today that Mr. Yuwei Zhong, a Deputy General Manager of its major operating subsidiary, Guangxi Yuchai Machinery Company Limited, ("GYMCL"), had at GYMCL's 2012 Sales and Marketing Conference, shared that GYMCL's target in 2012 was to sell 568,000 diesel engine units. This would represent an approximate 9.1% increase from expected 2011 unit sales.

However, in order for GYMCL to achieve its target of 568,000 units in 2012, Mr. Zhong explained that it would be necessary for GYMCL to further optimise operations by adopting more sophisticated operational techniques, emphasizing customized products with a focus on marine engines, 6L and 6M heavy-duty engines for use in buses and selected truck engine models in the light-duty range, as well as better management of relationships with key customers and increasing the focus on service quality instead of quantity. The latter should serve to further improve the brand and image of GYMCL.

Mr. Benny H. Goh, President of China Yuchai, commented, "I am pleased with Yuchai's steady performance in a challenging year for the Chinese vehicle market and global economy. In 2012, we intend to further strengthen our competitive position through implementing advanced operational management techniques, providing more specialized engines in the product portfolio, and improving our service quality. We anticipate stronger relationships with a number of customers this year as our production capacity and product portfolio increases."


Monday, November 7, 2011
Comments & Business Outlook

Thrid Quarter 2011 Results

  • Net revenue was RMB 3.4 billion (US$ 542.6 million) compared with RMB 3.3 billion (US$ 524.4 million) in the third quarter of 2010;
  • Total number of diesel engine units sold by the Company's main operating subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL") was 106,358 units compared with 109,023 units in the same quarter of 2010;
  • The gross margin was 20.0%, down from 23.1% in the third quarter of 2010, but up from 19.2% in the second quarter of 2011;
  • Total net profit attributable to China Yuchai's shareholders was RMB 63.6 million (US$ 10.0 million), compared with RMB 217.5 million (US$ 34.2 million) in the third quarter of 2010;
  • Earnings per share of RMB 1.71 (US$ 0.27), compared with RMB 5.84 (US$ 0.92) in the
    third quarter of 2010;
  • As of September 30, 2011, cash and cash equivalents were RMB 2.6 billion (US$ 406.5 million).

Mr. Benny H. Goh, President of China Yuchai, commented, "The third quarter of 2011 continued to face head winds and proved to be a challenging quarter as demand in the commercial vehicle sector dropped due to two main causes: Firstly, the slow-down in construction activities and secondly, the Chinese government's credit tightening measures to contain inflation which affected demand. Our strategy of offering a diversified line of advanced diesel engines into several market segments in China generated slightly higher revenues in the third quarter compared with the same quarter a year ago notwithstanding the difficult market for commercial vehicles."


Monday, August 8, 2011
Comments & Business Outlook

The financial highlights for the second quarter of 2011 are:

  • Net revenue was RMB 4.0 billion (US$ 620.7 million);
  • Total number of diesel engine units sold was 139,236 compared with 132,092 units in the second quarter of 2010;
  • The gross margin was 19.2%, down from 22.3% in the second quarter of 2010;
  • Total net profit attributable to China Yuchai's shareholders was RMB 155.1 million (US$ 24.0 million), compared with RMB 179.1 million (US$ 27.7 million) in the second quarter of 2010;
  • Earnings per share of RMB 4.16 (US$ 0.64), compared with RMB 4.81 (US$ 0.74) in the second quarter of 2010;
  • As of June 30, 2011, cash and cash equivalents were RMB 2.9 billion (US$ 452.2 million).

Mr. Weng Ming Hoh, Acting President and Chief Financial Officer commented, "Our success in selling a greater number of diesel engines in China during the second quarter of 2011 compared with the same quarter a year ago reflect our high-quality, advanced engines and the strength of our diversified product lines. We were able to quickly respond to changes in demand from different diesel engine market segments, providing an advantage over many of our domestic competitors. Sales of our diesel engines in both the off-highway category and our light-duty diesel engines offset lower demand in other market segments in the second quarter of 2011. The Board of Directors of GYMCL recently approved the construction of facilities at GYMCL's main plant at Yulin City, Guangxi Province, to increase the annual production capacity of marine diesel engines and power generators to meet potential demand over the next few years."

"Given the PRC government's current anti-inflationary policies and measures, interest rates have continued to rise and are expected to increase further. The Group continues to explore financing options such as the issuance of short-term financing bonds to improve our profitability, financial flexibility and to meet our working capital requirements," Mr. Hoh concluded.


Friday, July 22, 2011
Deal Flow

SINGAPORE, July 22, 2011 /PRNewswire-Asia-FirstCall/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company") announced today that further to its announcement on March 10, 2011, its key subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL") will be issuing the second tranche of its RMB-denominated unsecured short-term financing bonds ("Bonds") amounting to RMB 700 million on July 22, 2011. The second tranche of the Bonds will mature on July 22, 2012. GYMCL issued the first tranche of the Bonds amounting to RMB 1 billion on March 9, 2011. The par value and issue price of each Bond is RMB 100.


Tuesday, July 5, 2011
Comments & Business Outlook

SINGAPORE, July 4, 2011 /PRNewswire-Asia-FirstCall/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company"), announced today that its main operating subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL"), recently introduced China's first prototype diesel engine compliant with Euro VI emission standards. As China's first Euro VI-compliant automotive diesel engine, GYMCL's heavy-duty model YC6L-60 diesel engine has set another milestone in its history of technological achievement.

At a press conference hosted by GYMCL at its offices in Yulin City, Guangxi Province, the National Passenger Car Quality Supervision and Inspection Center (Tianjin Automotive Test Center) released the test results of the YC6L-60 engine which was jointly developed over a four-year period, between GYMCL and researchers from Tianjin University's National Key Laboratory of engine combustion. The results indicate that the nitrogen oxide emissions and particulate matter emissions of the YC6L-60 were well below the Euro VI emission requirements hence meeting the Euro VI emission standard. There are three key features of GYMCL's YC6L-60 engine: (a) a proprietary low-temperature combustion technology which reduces the fuel injection pressure requirement hence improving the life span of the fuel injection system and other core parts of the engine; (b) the use of medium-intensity cooled exhaust gas recirculation (EGR) technology resulting in a clean and economic combustion process; and (c) the use of selective catalytic reduction (SCR) technology combined with diesel particulate filter (DPF) regeneration capability will reduce urea consumption during the after-treatment process resulting in cost savings to end-users.

Since its introduction in the European Union (EU) in 2009, the Euro VI emission standard is, by far, the most stringent emission standard in the world. As the EU has announced plans to implement the Euro VI emission standards beginning in 2013, most European engine producers have been actively developing their products accordingly. The introduction of China's first Euro VI-compliant diesel engine by GYMCL demonstrates its world-class research and development capabilities.  


Wednesday, June 29, 2011
Liquidity Requirements

Our primary sources of cash are funds from operations generated by Yuchai, as well as debt financing obtained by us. Our operations generated positive net cash flows in 2008, 2009 and 2010. Our primary cash requirements are for working capital, capital expenditures to complete the expansion of production capacity and funding our business expansion and diversification plan. We believe that our sources of liquidity are sufficient for our operational requirements over the next twelve months from the date of this Annual Report. However, under the current market conditions there can be no assurance that our business activity will be maintained at the expected level to generate the anticipated cash flows from operating activities.

As our business continues to grow, we will also require additional funds for increased working capital requirements and to finance increased trade accounts receivable. We expect to fund our capital expenditures and working capital requirements primarily from funds from operations generated by Yuchai and, to the extent that is insufficient, from bank loans and other financing activities by Yuchai and us.


Wednesday, May 11, 2011
Comments & Business Outlook

First Quarter Results:

  • Net revenues for the first quarter of 2011 were RMB 4.2 billion (US$645.5 million) compared with RMB 5.1 billion (US$773.2 million) in the first quarter of 2010
  • Gross profit was RMB 944.1 million (US$144.0 million) in the first quarter of 2011, compared with RMB 1.0 billion (US$156.4 million) in the first quarter of 2010
  • Net income attributable to China Yuchai shareholders in the first quarter of 2011 was RMB 230.5 million (US$35.2 million), or earnings per share of RMB 6.18 (US$0.94), compared with RMB 271.8 million (US$41.5 million), or earnings per share of RMB 7.29 (US$1.11), in the first quarter of 2010.

Mr. Boo Guan Saw, President of China Yuchai, commented, "Engine sales in the first quarter of 2011 have improved compared to the fourth quarter of 2010, but unit sales were down year-over-year. The higher inventory in the supply chain during the first quarter of 2011, combined with higher fuel prices and tightening credit resulted in slower sales in the first quarter. Although we are experiencing a large improvement in off-highway application engine sales, which rose 45% in the first quarter compared with the same quarter a year ago, this improvement did not fully offset the drop in sales of automotive engines. Moving forward, we will be working to continue improving off-highway engine and heavy-duty engine sales, which will result in better margins. While we penetrate the higher-margin, heavy-duty diesel engine market, we intend to maintain our light-duty market presence by focusing on the more profitable models and improving competitiveness by reducing product costs and increasing unit sales. In March 2011, we began to see some recovery in engine sales compared to the first two months of 2011 when sales in March increased 35% over February as a result of improved automotive sales."

 


Thursday, March 31, 2011
Comments & Business Outlook

Fourth Quarter Results:

  • Net revenue was RMB 4.0 billion (US$ 606.5 million) compared with RMB 3.2 billion (US$ 490.6 million) in the fourth quarter of 2009;
  • Gross profit increased to RMB 1.3 billion (US$ 200.7 million) from RMB 781.2 million (US$ 118.0 million) in the fourth quarter of 2009;
  • Operating margin increased to 20.3% from 10.9% in the fourth quarter of 2009;
  • Total net profit attributable to China Yuchai's shareholders was RMB 461.7 million (US$ 69.7 million), or earnings per share of RMB 12.39 (US$ 1.87), compared with RMB 195.6 million (US$ 29.5 million), or earnings per share of RMB 5.25 (US$ 0.79) in the fourth quarter of 2009.

"Our high-quality products, innovative new engines developed by our leading research and development programs, and excellent customer service provide a competitive advantage that will strengthen our leadership position in the large Chinese automotive market," Mr. Saw concluded.


Monday, February 28, 2011
Comments & Business Outlook

Company unable to report earnings as expected:

  • Net revenues for the fourth quarter of 2010 were RMB 4.0 billion (US$ 606.5 million) compared with RMB 3.2 billion (US$ 490.6 million) in the fourth quarter of 2009.

The Company will report the detailed unaudited consolidated financial results for the fourth quarter and full year 2010 as soon as they are available which will be followed by an earnings call for the investment community.


Monday, January 31, 2011
Deal Flow

SINGAPORE, Jan. 31, 2011 /PRNewswire-Asia-FirstCall/ -- China Yuchai International Limited, announced today that its wholly-owned subsidiary Venture Lewis Limited has entered into a loan agreement with HL Global Enterprises Limited to extend the loan of S$93,000,000 originally granted to HLGE in February 2009 to refinance the zero coupon, unsecured, non-convertible bonds issued by HLGE in 2006 and which matured on July 3, 2009. This Loan was due to be repaid in July 2010 but was extended for one year pursuant to a loan agreement entered into in February 2010.


Thursday, November 11, 2010
Comments & Business Outlook

The financial highlights for the third quarter of 2010 are:

  • Net revenue was RMB 3.3 billion (US$ 497.6 million) compared with RMB 3.5 billion (US$ 524.0 million) in the third quarter of 2009;
  • The gross margin increased to 23.1% from 19.9% in the third quarter of 2009;
  • Operating margin increased to 10.7% from 7.6% in the third quarter of 2009;
  • Total net profit attributable to China Yuchai's shareholders was RMB 217.5 million (US$ 32.5 million), or earnings per share of RMB 5.84 (US$ 0.87), compared with RMB 160.2 million (US$ 23.9 million), or earnings per share of RMB 4.30 (US$ 0.64) in the third quarter of 2009.

Mr. Boo Guan Saw, President of China Yuchai, commented, "We are encouraged by our strong third quarter results and the significant margin expansion due to the successful transition in our product mix. After three years' thorough preparation, our heavy-duty engines have begun to gain traction in China's heavy-duty market. While our award-winning hybrid engines continue to enhance our brand equity and market leadership in the Chinese bus market, our heavy-duty YC6K product line should propel our entry into the higher-barrier heavy-duty truck market. We continue to invest in R & D and in-sourcing facilities to maintain our technology and production leadership in China. With the CIMC-Chery joint venture expected to come to production at the end of 2010, we remain optimistic over increasing our market share in the heavy-duty engine market in 2011."


Wednesday, August 11, 2010
Comments & Business Outlook
The financial highlights for the second quarter of 2010 are:

    -- Net revenue was RMB 4.0 billion (US$ 591.4 million), an increase of
       15.7% compared to the second quarter of 2009;
    -- The gross margin was 22.3% compared with 16.7% for the second quarter
       of 2009;
    -- Operating margin was 8.2% compared with 3.6% in the second quarter of
       2009;
    -- Total net profit attributable to China Yuchai's shareholders was RMB
       179.1 million (US$ 26.4 million), or earnings per share of RMB 4.81
       (US$ 0.71), compared with RMB 64.8 million (US$ 9.5 million), or
       earnings per share of RMB 1.74 (US$ 0.26) in the second quarter of 2009;
    -- As of June 30, cash and cash equivalent was RMB 3.5 billion (US$ 509.9
       million).

Mr. Boo Guan Saw, President of China Yuchai, commented, "Our market share in the more profitable heavy and medium-duty engines has been increasing in the first half of 2010 compared with a year ago. We are introducing new engine models and increasing our production capacity of heavy-duty engines to improve our competitive position in this important segment. Pricing in the heavy-duty market remains favourable. We also see good opportunities in the industrial, marine and power generation markets to expand our sales and market position in both the domestic and international markets especially with our new engines. We have made great strides in enhancing the efficiency of our new automated foundry to increase production of key components and reduce costs. Also, production capacity at our new assembly facility at Xiamen has reached 50,000 units annually to supply to our customers in South-Central China."

"Combining our increased in-sourcing capabilities through the new foundry and assembly plant, with the expansion of our product lines through our 3 strategic joint ventures, CIMC-Chery, Caterpillar and Geely, China Yuchai is in a better position to maintain its leadership position in China's diesel engine industry. The CIMC-Chery joint venture is expected to commence production of its heavy-duty YC6K diesel engines at the end of 2010 which will add capacity to our heavy-duty engine volume. We have invested approximately RMB 140 million to double production of our 6L and 6M heavy-duty diesel engines from 62,000 units to a forecasted 120,000 units in early 2011. The remanufacturing joint venture with Caterpillar is expected to begin operations at Suzhou Industrial Park, Jiangsu Province in 2011 and the joint venture with Geely is expected to yield the first-generation prototype of the 4D20-2L diesel engine by the end of 2010. As urbanization continues in China with ongoing infrastructure investment and anticipated acceleration in public housing construction, trucks and buses will play an important role in the demand for transportation. According to the People's Bank of China, China's economy grew 10.3% in the second quarter of 2010 compared with 11.9% in the first quarter of 2010 due to the effects of the Chinese government's credit tightening policy. Notwithstanding that 2010 is expected to continue to be a growth year in China, China's slowing growth momentum could have an impact on our operating performance in the subsequent quarters of 2010 as compared with the first six months of 2010," Mr. Saw concluded.


Thursday, May 13, 2010
Comments & Business Outlook
Mr. Boo Guan Saw, President of China Yuchai, commented, "We are pleased by the robust increase in unit sales and improved product-mix in the first quarter of 2010. We are now well-positioned to offer a wider range and higher volume of high quality engines ranging from light-duty to heavy-duty to meet the growing transportation demand in China. While this has been a strong quarter, it is to be noted that going forward, the diesel engine market in China is likely to be affected by inventories available in the industry as well as the Chinese government's credit tightening policy to contain inflation. In relation to our production capabilities, the new foundry equipped with high-grade imported machinery and robotic product tools is anticipated to significantly strengthen our in-sourcing capabilities for key performance engine components as well as improve the efficiency of our foundry operations. Trial production at the new foundry commenced in the first quarter of 2010 and this together with our strategic partnerships with CIMC-Chery, Caterpillar and Geely allows us to continue to be an active and integral participant in the growth of China's automotive industry."

Thursday, July 16, 2009
Investor Alert

Share holders take action to recommend changes to China Yuchai management positions.

Link to letter.

Source: PR Newswire (July 9, 2009 - 6:54 AM EDT)