SINGAPORE, Feb. 26, 2019 /PRNewswire/ -- China Yuchai
International Limited (NYSE: CYD) ("China Yuchai" or the
"Company"), a leading automotive manufacturer and distributor of
engines for on- and off-road applications in China through its main operating subsidiary,
Guangxi Yuchai Machinery Company Limited ("GYMCL"), announced today
its unaudited consolidated financial results for the fourth quarter
and the twelve months ended December 31,
2018. The financial information presented herein for the
fourth quarter and year 2018 and 2017 is reported using
International Financial Reporting Standards ("IFRS") as issued by
the International Accounting Standards Board.
The comparative figures for the fourth quarter and twelve months
ended December 31, 2017 were restated
due to the adoption of IFRS 15 effective on or after January 1, 2018, on Revenue from Contracts
with Customers by a full retrospective application. The
adoption of IFRS 15 resulted in a decrease of the Group's profit
after tax by RMB 77.6 million and
RMB 85.2 million for the fourth
quarter and twelve months ended December 31,
2017 respectively. The financial impact on the adoption of
IFRS 15 is described and attached at the end of the press
release.
Financial Highlights for the Fourth Quarter of 2018
- Net revenue increased by 19.7% to RMB
4.5 billion (US$ 660.4
million) compared with RMB 3.8
billion in the fourth quarter of 2017;
- Gross profit declined by 18.0% to RMB
0.9 billion (US$ 125.6
million), with gross margin decreasing to 19.0%, compared
with RMB 1.1 billion and a gross
margin of 27.7% in the fourth quarter of 2017;
- Operating profit decreased by 48.2% to RMB 332.6 million (US$
48.5 million), compared with RMB
641.7 million in the fourth quarter of 2017, which included
a gain of RMB 252.6 million from a
one-time event in the fourth quarter of 2017;
- Net earnings attributable to China Yuchai's shareholders
decreased by 45.0% to RMB 191.8
million (US$ 27.9 million)
compared with RMB 348.6 million in
the fourth quarter of 2017, which included a net gain of
RMB 111.6 million from one-time and
extraordinary events;
- Basic and diluted earnings per share were RMB 4.69 (US$
0.68), compared with RMB 8.54
basic and RMB 8.52 diluted
respectively, in the fourth quarter of 2017, which included a net
gain of RMB 2.73 in basic and diluted
earnings per share from one-time and extraordinary events;
- The total number of engines sold increased by 27.5% to 93,881
units compared with 73,610 units in the fourth quarter of
2017.
According to data reported by the China Association of
Automobile Manufacturers ("CAAM"), in the fourth quarter of 2018,
sales of commercial vehicles (excluding gasoline-powered and
electric-powered vehicles) decreased by 6.3%; truck sales decreased
by 6.0% with heavy-duty truck sales increased by 3.6%. GYMCL's
heavy- and medium-duty truck engine sales in the fourth quarter of
2018 increased. The bus market continued to decline in the fourth
quarter of 2018. GYMCL's off-road engine sales rose in the fourth
quarter of 2018, led by higher sales in the agricultural equipment
market.
Gross profit decreased by 18.0% to RMB
0.9 billion (US$ 125.6
million) compared with RMB 1.1
billion in the fourth quarter of 2017. Gross margin was
19.0% in the fourth quarter of 2018 compared with 27.7% in the
fourth quarter of 2017. The decrease in the gross margin was
mainly attributable to market conditions and product mix. The
market conditions resulted in a drop in the average selling price
compared with the fourth quarter of 2017. The product mix
effect was from higher sales volume of smaller capacity engines, a
lower average selling price, and lower gross profit for off-road
engines as compared with the fourth quarter of 2017.
Other operating income was RMB 64.4
million (US$ 9.4 million)
compared with RMB 370.6 million in
the fourth quarter of 2017. The decrease was mainly due to a
one-time gain in the fourth quarter of 2017 of RMB 324.1 million on the sale of HL Global
Enterprises Limited's ("HLGE") hotel assets.
Research and development ("R&D") expenses decreased by 53.4%
to RMB 107.7 million (US$ 15.7 million) from RMB
231.0 million in the fourth quarter of 2017. Lower R&D
expenses were mainly due to the capitalization of development costs
for National VI and Tier 4 engines that met the IFRS capitalization
criteria. In the fourth quarter of 2018, the R&D capitalization
amount was RMB 115.2 million
(US$ 16.8 million). The ongoing
investment in R&D continues to be focused on new engines to
meet the next-generation National VI and Tier 4 emission standards,
and initiatives to improve engine quality and performance. As
a percentage of net revenue, R&D expenses were 2.4% compared
with 6.1% in the fourth quarter of 2017. In fourth quarter of
2018, the total R&D expenditure, including capitalized costs,
was RMB 222.9 million (US$ 32.5 million) and it represented a 4.9% of
the net revenue.
Selling, general & administrative ("SG&A") expenses
decreased by 11.4% to RMB 485.8
million (US$ 70.8 million)
from RMB 548.5 million in the fourth
quarter of 2017. SG&A expenses represented 10.7% of net revenue
compared with 14.5% in the fourth quarter of 2017. The lower
SG&A expenses were mainly attributed to lower warranty expenses
in the fourth quarter of 2018 and the extraordinary events
including an impairment charge of RMB 40.0
million related to intellectual property right and a staff
severance cost of RMB 31.5 million in
2017. Excluding these extraordinary events, the SG&A expenses
would have been RMB 477.0 million in
the fourth quarter of 2017.
Operating profit declined by 48.2% to RMB
332.6 million (US$ 48.5
million) from RMB 641.7
million in the fourth quarter of 2017. The decrease
reflected a gain of RMB 252.6 million
from one-time and extraordinary events in the fourth quarter of
2017. The operating margin was 7.3% compared with 16.9% in the
fourth quarter of 2017. Excluding the one-time and extraordinary
events, the operating profit would have been RMB 389.1 million in the fourth quarter of
2017.
Finance costs increased to RMB 31.1
million (US$ 4.5 million) from
RMB 24.5 million in the fourth
quarter of 2017 mainly due to increased bank borrowings.
In the fourth quarter of 2018, total net profit attributable to
China Yuchai's shareholders decreased by 45.0% to RMB 191.8 million (US$
27.9 million) from RMB 348.6
million in the fourth quarter of 2017. Basic and diluted
earnings per share were RMB 4.69
(US$ 0.68) compared with basic
earnings per share of RMB 8.54 and
diluted earnings per share of RMB
8.52 in the fourth quarter of 2017.
In the fourth quarter of 2017, the net profit attributable to
China Yuchai's shareholders included a net gain of RMB 111.6 million from one-time and extraordinary
events. Adjusted total net profit attributable to China
Yuchai's shareholders in the fourth quarter of 2017, excluding the
one-time and extraordinary events, was RMB
237.0 million. Adjusted basic and diluted earnings per share
were RMB 5.81 and RMB 5.79 respectively in the fourth quarter of
2017. A reconciliation table reflecting the impact of the one-time
and extraordinary events on the fourth quarter of 2017 results is
attached at the end of the press release.
Basic and diluted earnings per share in the fourth quarter of
2018 were based on a weighted average of 40,858,290 shares compared
with 40,832,405 basic and 40,889,954 diluted shares in the fourth
quarter of 2017. In July 2017,
99,970 new shares were issued to shareholders who elected to
receive shares in lieu of a dividend in cash.
Financial Highlights for the Financial Year of 2018
- Net revenue of RMB 16.3 billion
(US$ 2.4 billion) compared with
RMB 16.2 billion in 2017;
- Gross profit declined by 7.9% to RMB 3.1
billion (US$ 450.5 million)
with a gross margin of 19.0%, compared with RMB 3.4 billion and a gross margin of 20.7% in
2017;
- Operating profit decreased by 20.1% to RMB 1.3 billion (US$ 186.9
million) compared with RMB 1.6 billion in 2017, which
included a gain of RMB 176.4 million
from one-time and extraordinary events;
- Earnings per share declined by 21.9% to RMB 17.02 (US$
2.48) compared with RMB 21.80
in 2017, which included a net gain of RMB
1.52 from one-time and extraordinary events;
- The total number of engines sold increased by 2.4% to 375,731
units compared with 367,097 units in 2017.
According to CAAM, sales of commercial vehicles (excluding
gasoline-powered and electric-powered vehicles) decreased by 1.7%
in 2018; the truck market decreased by 1.3% with a 2.7% increase in
heavy-duty truck sales. GYMCL truck sales increased led by a gain
in medium-duty engine sales. The bus market remained weak and
experienced a decline in overall sales. GYMCL's off-road engine
sales increased in 2018 compared with 2017.
Gross profit declined by 7.9% to RMB 3.1
billion (US$ 450.5 million)
compared with RMB 3.4 billion in
2017. The gross profit margin was 19.0% in 2018 compared with 20.7%
in 2017. The 2018 gross profit and margin declined primarily due to
changes in the market conditions and products mix.
Other operating income was RMB 192.7
million (US$ 28.1 million)
compared with RMB 509.4 million in
2017. In 2017, the Company had a one-time gain of RMB 324.1 million from the sale of HLGE's hotel
assets. Excluding this one-time item, the other operating
income in 2018 was higher than that in 2017, which was mainly
attributed to higher interest income partly offset by lower foreign
exchange revaluation gain.
R&D expenses decreased by 26.4% to RMB 447.7 million (US$
65.2 million) compared with RMB 608.2
million in 2017. Lower R&D expenses were mainly due to
the capitalization of development costs for National VI and Tier 4
engines that met the IFRS capitalization criteria. The R&D
capitalization amount was RMB 195.9
million (US$ 28.5 million). As
a percentage of net revenue, R&D expenses were 2.8% compared
with 3.8% in 2017. In 2018, total R&D expenditure including
capitalized costs, was RMB 643.5
million (US$ 93.8 million) and
represented 4.0% as a percentage of net revenue. R&D
expenses were mainly for research and development of new engines
compliant with the more stringent National VI and Tier 4 emission
standards that are to be implemented over the next few
years.
SG&A expenses declined by 5.9% to RMB
1.6 billion (US$ 226.5
million) from RMB 1.7 billion
in 2017. These expenses represented 9.6% of net revenue compared
with 10.2% in 2017. SG&A expenses included an impairment charge
of RMB 40.0 million related to the
intellectual property for the 4Y20 engine platform, and the staff
severance cost of RMB 107.7 million
in 2017, which are extraordinary events. Excluding these
extraordinary events, the 2017 SG&A expenses were RMB 1.5 billion.
Operating profit decreased by 20.1% to RMB 1.3 billion (US$ 186.9
million) from RMB 1.6 billion
in 2017. The operating margin was 7.9% in 2018 compared with
9.9% in 2017. In addition, 2017 benefitted by a gain of
RMB 176.4 million from one-time and
extraordinary events. Excluding these one-time and extraordinary
events, operating profit in 2017 would be RMB 1.4 billion.
Finance costs increased by 12.6% to RMB
113.1 million (US$ 16.5
million) from RMB 100.4
million in 2017 mainly due to increased borrowing costs.
The net profit attributable to China Yuchai's shareholders
decreased by 21.8% to RMB 695.3
million (US$ 101.3 million),
or earnings per share of RMB 17.02
(US$ 2.48), compared with
RMB 888.8 million, or earnings per
share of RMB 21.80 in 2017.
Net profit attributable to China Yuchai's shareholders in 2017
included a net gain of RMB 62.1
million from the one-time and extraordinary
events. Adjusted total net profit attributable to China
Yuchai's shareholders in 2017, excluding the one-time and
extraordinary events, was RMB 826.7
million, and the adjusted basic and diluted earnings per
share were RMB 20.28.
Basic and diluted earnings per share in 2018 were based on a
weighted average of 40,858,290 shares and in 2017 were based on a
weighted average of 40,764,569 shares.
Balance Sheet Highlights as at December 31, 2018
- Cash and bank balances were RMB 6.1
billion (US$ 893.0 million)
compared with RMB 6.0 billion at the
end of 2017;
- Trade and bills receivables were RMB 7.4
billion (US$ 1.1 billion)
compared with RMB 7.0 billion at the
end of 2017;
- Inventories were RMB 2.5 billion
(US$ 366.9 million) compared with
RMB 2.6 billion at the end of
2017;
- Trade and bills payables were RMB 4.6
billion (US$ 664.5 million)
compared with RMB 5.2 billion at the
end of 2017;
- Short- and long-term borrowings were RMB
2.0 billion (US$ 293.8
million) compared with RMB 1.6
billion at the end of 2017.
Mr. Weng Ming Hoh, President of
China Yuchai, commented, "Our truck engine sales grew higher than
the overall truck vehicle market in the fourth quarter of 2018 with
growth in medium-duty truck engine sales. Our light-duty truck
engine sales also increased as compared to the light-duty truck
vehicle market. Sales to the agricultural equipment market was
higher in the fourth quarter of 2018 as well."
"During 2018, we introduced 14 new engines for the on-road
National VI emission standards, and 10 new engines for the upcoming
new Tier 4 emission standard for off-road vehicles. These standards
are significantly more stringent than the current standards and
require advanced technology and new production
techniques."
"We continue to see uncertainty in the China economy this year in view of the US and
China trade dispute and world
economic development."
Disclaimer Regarding Unaudited Financial Results
Investors should note that the Company has not yet finalized its
consolidated financial results for fiscal year 2018. The financial
information of the Company presented above is unaudited and may
differ materially from the audited financial statements of the
Company for fiscal year 2018 to be released when it is
available.
Exchange Rate Information
The Company's functional currency is the U.S. dollar and its
reporting currency is Renminbi. The translation of amounts from
Renminbi to U.S. dollars is solely for the convenience of the
reader. Translation of amounts from Renminbi to U.S. dollars has
been made at the rate of RMB 6.8632 =
US$ 1.00, the rate quoted by the
People's Bank of China at the
close of business on December 31,
2018. No representation is made that the Renminbi amounts
could have been, or could be, converted into U.S. dollars at that
rate or at any other certain rate on December 31, 2018 or at any other date.
Unaudited Full Year 2018 Conference
Call
A conference call and audio webcast for the investment community
has been scheduled for 8:00 A.M. Eastern
Standard Time on February 26,
2019. The call will be hosted by Mr. Weng Ming HOH,
President, and Dr. Thomas Phung,
Chief Financial Officer of China Yuchai. They will present and
discuss the financial results and business outlook of the Company
followed with a Q&A session.
Analysts and institutional investors may participate in the
conference call by dialing +1-866-519-4004 (United States), +800-906-601 (Hong Kong), 400-620-8038 (China) or +65 67135090 (International),
Conference Code: 9666145 approximately five to ten minutes
before the call start time.
For all other interested parties, a simultaneous webcast can be
accessed at the investor relations section of the Company's website
located at http://www.cyilimited.com. Participants are requested to
log into the webcast at least 10 minutes prior to the scheduled
start time. The recorded webcast will be available on the website
shortly after the earnings call.
About China Yuchai International
China Yuchai International Limited, through its subsidiary,
Guangxi Yuchai Machinery Company Limited ("GYMCL"), engages in the
manufacture, assembly, and sale of a wide variety of light-,
medium- and heavy-duty engines for trucks, buses, passenger
vehicles, construction equipment, marine and agriculture
applications in China. GYMCL also produces diesel power
generators. The engines produced by GYMCL range from diesel to
natural gas and hybrid engines. Through its regional sales
offices and authorized customer service centers, the Company
distributes its engines directly to auto OEMs and retailers and
provides maintenance and retrofitting services throughout
China. Founded in 1951, GYMCL has established a reputable
brand name, strong research and development team and significant
market share in China with
high-quality products and reliable after-sales support. In
2017, GYMCL sold 367,097 engines and is recognized as a leading
manufacturer and distributor of engines in China. For more
information, please visit http://www.cyilimited.com.
Safe Harbor Statement
This news release may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. The words "believe", "expect", "anticipate", "project",
"targets", "optimistic", "confident that", "continue to",
"predict", "intend", "aim", "will" or similar expressions are
intended to identify forward-looking statements. All statements
other than statements of historical fact are statements that may be
deemed forward-looking statements. These forward-looking statements
including, but not limited to, statements concerning the Company's
operations, financial performance and condition are based on
current expectations, beliefs and assumptions which are subject to
change at any time. The Company cautions that these statements by
their nature involve risks and uncertainties, and actual results
may differ materially depending on a variety of important factors
such as government and stock exchange regulations, competition,
political, economic and social conditions around the world and in
China including those discussed in
the Company's Form 20-Fs under the headings "Risk Factors",
"Results of Operations" and "Business Overview" and other reports
filed with the Securities and Exchange Commission from time to
time. All forward-looking statements are applicable only as of the
date it is made, and the Company specifically disclaims any
obligation to maintain or update the forward-looking information,
whether of the nature contained in this release or otherwise, in
the future.
For more information, please contact:
Investor Relations
Kevin Theiss
Tel: +1-212-521-4050
Email: cyd@bluefocus.com
-- Tables Follow --
CHINA YUCHAI
INTERNATIONAL LIMITED
UNAUDITED CONSOLIDATED INCOME STATEMENTS
For the quarters ended December 31,
2018 and 2017
(RMB and US$ amounts expressed in thousands, except per share
data)
|
December 31,
2018
|
December 31,
2017
|
|
RMB
'000
|
US$
'000
|
RMB
'000
|
US$
'000
|
|
|
|
Restated
|
Restated
|
Revenue
|
4,532,178
|
660,359
|
3,786,352
|
551,689
|
Cost of goods
sold
|
(3,670,367)
|
(534,789)
|
(2,735,790)
|
(398,617)
|
Gross
profit
|
861,811
|
125,570
|
1,050,562
|
153,072
|
Other operating
income, net
|
64,359
|
9,377
|
370,561
|
53,992
|
Research and
development costs
|
(107,677)
|
(15,689)
|
(230,984)
|
(33,655)
|
Selling, distribution
and administrative costs
|
(485,846)
|
(70,790)
|
(548,453)
|
(79,912)
|
Operating
profit
|
332,647
|
48,468
|
641,686
|
93,497
|
Finance
costs
|
(31,090)
|
(4,530)
|
(24,521)
|
(3,573)
|
Share of results of
associates and joint
ventures
|
(2,999)
|
(437)
|
(732)
|
(107)
|
Profit before
tax
|
298,558
|
43,501
|
616,433
|
89,817
|
Income tax
expense
|
(28,364)
|
(4,133)
|
(28,154)
|
(4,102)
|
Profit for the
period
|
270,194
|
39,368
|
588,279
|
85,715
|
Attributable
to:
|
|
|
|
|
Equity holders of the
parent
|
191,782
|
27,944
|
348,558
|
50,787
|
Non-controlling
interests
|
78,412
|
11,424
|
239,721
|
34,928
|
|
270,194
|
39,368
|
588,279
|
85,715
|
Net earnings per
common share
|
|
|
|
|
- Basic
|
4.69
|
0.68
|
8.54
|
1.24
|
- Diluted
|
4.69
|
0.68
|
8.52
|
1.24
|
Unit sales
|
93,881
|
|
73,610
|
|
CHINA YUCHAI
INTERNATIONAL LIMITED
UNAUDITED CONSOLIDATED INCOME STATEMENTS
For the years ended December 31, 2018
and 2017
(RMB and US$ amounts expressed in thousands, except per share
data)
|
December 31,
2018
|
December 31,
2017
|
|
RMB
'000
|
US$
'000
|
RMB
'000
|
US$
'000
|
|
|
|
Restated
|
Restated
|
Revenue
|
16,263,248
|
2,369,630
|
16,197,819
|
2,360,097
|
Cost of goods
sold
|
(13,171,227)
|
(1,919,109)
|
(12,841,768)
|
(1,871,105)
|
Gross
profit
|
3,092,021
|
450,521
|
3,356,051
|
488,992
|
Other operating
income, net
|
192,680
|
28,074
|
509,397
|
74,222
|
Research and
development costs
|
(447,668)
|
(65,227)
|
(608,181)
|
(88,615)
|
Selling, distribution
and administrative costs
|
(1,554,512)
|
(226,500)
|
(1,652,856)
|
(240,829)
|
Operating
profit
|
1,282,521
|
186,868
|
1,604,411
|
233,770
|
Finance
costs
|
(113,088)
|
(16,477)
|
(100,439)
|
(14,634)
|
Share of results of
associates and joint
ventures
|
11,634
|
1,695
|
10,054
|
1,465
|
Profit before
tax
|
1,181,067
|
172,086
|
1,514,026
|
220,601
|
Income tax
expense
|
(206,667)
|
(30,112)
|
(194,173)
|
(28,292)
|
Profit for the
period
|
974,400
|
141,974
|
1,319,853
|
192,309
|
Attributable
to:
|
|
|
|
|
Equity holders of the
parent
|
695,266
|
101,303
|
888,807
|
129,504
|
Non-controlling
interests
|
279,134
|
40,671
|
431,046
|
62,805
|
|
974,400
|
141,974
|
1,319,853
|
192,309
|
Net earnings per
common share
|
|
|
|
|
- Basic
|
17.02
|
2.48
|
21.80
|
3.18
|
- Diluted
|
17.02
|
2.48
|
21.80
|
3.18
|
Unit sales
|
375,731
|
|
367,097
|
|
CHINA YUCHAI
INTERNATIONAL LIMITED
SELECTED UNAUDITED CONSOLIDATED
BALANCE SHEET ITEMS
For the years ended December 31, 2018 and 2017
(RMB and US$
amounts expressed in thousands)
|
As of December 31,
2018
|
As of
December 31,
2017
(Audited)
|
|
RMB
'000
|
US$'000
|
RMB
'000
|
|
|
|
Restated
|
Cash and bank
balances
|
6,128,521
|
892,954
|
6,029,207
|
Trade and bills
receivables
|
7,389,105
|
1,076,627
|
7,031,544
|
Inventories
|
2,517,864
|
366,864
|
2,572,745
|
Trade and bills
payables
|
4,560,628
|
664,505
|
5,177,123
|
Short-term and
long-term loans and borrowings
|
2,016,092
|
293,754
|
1,626,341
|
Equity attributable
to equity holders of the parent
|
8,395,870
|
1,223,317
|
8,334,289
|
Non-IFRS Financial Measures
This press release makes reference to certain non-IFRS measures.
Management uses these non-IFRS financial measures for purposes of
comparison to prior periods and development of future projections
and earnings growth prospects. This information is also used by
management to measure the profitability of ongoing operations and
in analyzing the Company's business performance and trends. These
measures are not recognized measures under IFRS, do not have a
standardized meaning prescribed by IFRS and are therefore unlikely
to be comparable to similar measures presented by other companies.
Rather, these measures are provided as additional information to
complement those IFRS measures by providing further understanding
of the Company's results of operations from management's
perspective. Accordingly, they should not be considered in
isolation nor as a substitute for analysis of the Company's
financial information reported under IFRS.
Non-IFRS Financial Measures
To supplement our consolidated financial statements, we
provide the following additional information on the
adjustments:
UNAUDITED Reconciliation of adjusted restated net profit for
the quarter ended December 31,
2017 (RMB and US$ amounts expressed in thousands,
except per share data)
|
Quarter
Ended
December 31,
2017
|
|
RMB
'000
|
US$
'000
|
Net profit
|
665,882
|
97,022
|
Adjustment arising
from adoption of IFRS 15
|
(77,603)
|
(11,307)
|
Restated net
profit
|
588,279
|
85,715
|
Adjustments to
restated net profit excluding one-
time and extraordinary events:
|
|
|
Sales of hotel
assets
|
(324,092)
|
(47,222)
|
Staff Severance
cost
|
31,485
|
4,588
|
Impairment charge on
intellectual property
|
40,000
|
5,828
|
Related income tax
effects
|
(4,723)
|
(688)
|
Adjusted restated net profit
|
330,949
|
48,221
|
Adjusted restated net
profit attributable to:
|
|
|
Equity holders of the
parent
|
236,974
|
34,528
|
Non-controlling
interests
|
93,975
|
13,693
|
|
330,949
|
48,221
|
Restated net earnings
per common share
|
|
|
- Basic
|
8.54
|
1.24
|
- Diluted
|
8.52
|
1.24
|
Net earnings per
common share adjustment due to
one-time and extraordinary events
|
|
|
- Basic
|
(2.73)
|
(0.40)
|
- Diluted
|
(2.73) )
|
(0.40)
|
Adjusted restated
net earnings per common share
excluding one-time and extraordinary events
|
|
|
- Basic
|
5.81
|
0.84
|
- Diluted
|
5.79
|
0.84
|
Non-IFRS Financial Measures
To supplement our consolidated financial statements, we
provide the following additional information on the
adjustments:
UNAUDITED Reconciliation of adjusted restated net profit for
the year ended December 31, 2017
(RMB and US$ amounts expressed in thousands, except per share
data)
|
Year
ended
December 31,
2017
|
|
RMB
'000
|
US$
'000
|
Net profit
|
1,405,070
|
204,726
|
Adjustment arising
from adoption of IFRS 15
|
(85,217)
|
(12,417)
|
Restated net
profit
|
1,319,853
|
192,309
|
Adjustments to net
profit excluding one-time
and extraordinary events:
|
|
|
Sales of hotel
assets
|
(324,092)
|
(47,222)
|
Staff severance
cost
|
107,732
|
15,697
|
Impairment charge on
intellectual property
|
40,000
|
5,828
|
Related income tax
effects
|
(16,160)
|
(2,355)
|
Adjusted restated net
profit
|
1,127,333
|
164,257
|
Adjusted restated net
profit attributable to:
|
|
|
Equity holders of the
parent
|
826,744
|
120,460
|
Non-controlling
interests
|
300,589
|
43,797
|
|
1,127,333
|
164,257
|
Restated net earnings
per common share
|
|
|
- Basic
|
21.80
|
3.18
|
- Diluted
|
21.80
|
3.18
|
Net earnings per
common share adjustment
due to one-time and extraordinary events
|
|
|
- Basic
|
(1.52)
|
(0.22)
|
- Diluted
|
(1.52)
|
(0.22)
|
Adjusted restated
net earnings per common
share excluding one-time and extraordinary events
|
|
|
- Basic
|
20.28
|
2.96
|
- Diluted
|
20.28
|
2.96
|
CHINA YUCHAI INTERNATIONAL
LIMITED
Impact on adoption of IFRS 15 Revenue from Contracts with
Customers:
The figures presented below are all expressed in thousands
except for per share data.
IFRS 15 Revenue from Contracts with Customers
IFRS 15 Revenue from Contracts with Customers is effective for
the annual periods beginning on or after January 1, 2018. IFRS 15 establishes a five
steps model to account for the revenue arising from the contracts
with customers. Under IFRS 15, revenue is recognized at an
amount that reflects the consideration to which an entity expects
to be entitled in exchange for transferring of goods or services to
a customer.
The Group has applied the changes in accounting policies
retrospectively to each reporting period presented, using the full
retrospective approach. Accordingly, the comparative figures
in the balance sheet at December 31,
2017 and the income statement for the quarter and
year-to-date ended December 31, 2017
have been restated to reflect the retrospective adjustments upon
adoption of IFRS 15.
Warranty obligations
Under IFRS 15, the Group accounts for a service-type warranty as
a separate performance obligation to which the Group allocates a
portion of the transaction price. The portion of the
consideration allocated to the service-type warranty is initially
recorded as a contract liability and recognized as revenue over the
period which warranty services are provided.
As a result, the Group's income statement for the fourth quarter
of 2017 was restated as follows:
- Revenue increased by RMB 5,540 to
RMB 3,786,352.
- Cost of sales increased by RMB
35,468 to RMB 2,735,790.
- Other operating income, net decreased by RMB 115,236 to RMB
370,561. This RMB 115.2
million was the one-time gain on the sale of technology
know-how of YC6K upon completion of engineering design
services.
- Selling, general and administrative cost decreased by
RMB 41,567 to RMB 548,453.
- Income tax expenses decreased by RMB
25,994 to RMB 28,154. This
RMB 26.0 million was the relative
income tax expenses attributed to the sales of technology know–how
of YC6K.
- Profit after tax was adjusted from RMB
665,882 to RMB 588,279.
- Profit attributable to the equity holders of the parent was
adjusted from RMB 407,855 to
RMB 348,558.
- Basic and diluted earnings per share were adjusted from
RMB 9.99 and RMB 9.97 to RMB
8.54 and RMB 8.52
respectively.
As a result, the Group's income statement for the twelve months
ended 2017 was restated as follows:
- Revenue decreased by RMB 24,623
to RMB
16,197,819.
- Cost of sales increased by RMB
134,349 to RMB
12,841,768.
- Other operating income, net decreased by RMB 115,236 to RMB
509,397. This RMB 115.2
million was the one-time gain on the sale of technology
know-how of YC6K upon completion of engineering design
services.
- Selling, general and administrative cost decreased by
RMB 162,997 to RMB 1,652,856.
- Income tax expenses decreased by RMB
25,994 to RMB 194,173. This
RMB 26.0 million was the relative
income tax expenses attributed to the sales of technology know–how
of YC6K.
- Profit after tax was adjusted from RMB
1,405,070 to RMB
1,319,853.
- Profit attributable to the equity holders of the parent was
adjusted from RMB 953,922 to
RMB 888,807.
- Earnings per share were adjusted from RMB 23.40 to RMB
21.80.
The effect of the restatements on the equity attributable to
equity holders of the parent as at December
31, 2017 was adjusted from RMB
8,347,562 to RMB
8,334,289.
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SOURCE China Yuchai International Limited