SINGAPORE, May 10, 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 first quarter
ended March 31, 2019. The
financial information presented herein for 2019 and 2018 is
reported using International Financial Reporting Standards ("IFRS")
as issued by the International Accounting Standards Board.
Financial Highlights for the First Quarter of 2019
- Net revenue was RMB 4.2 billion
(US$ 618.3 million) compared with
RMB 4.3 billion in the first quarter
of 2018;
- Gross profit was RMB 761.3
million (US$ 113.1 million),
with a gross margin of 18.3%, compared with RMB 853.5 million and a gross margin of 19.7% in
the first quarter of 2018;
- Operating profit was RMB 357.3
million (US$ 53.1 million)
compared with RMB 424.2 million in
the first quarter of 2018;
- Net earnings attributable to China Yuchai's shareholders was
RMB 198.0 million (US$29.4 million) compared with RMB 242.8 million in the first quarter of
2018;
- Basic and Diluted earnings per share were RMB 4.85 (US$0.72)
compared with RMB 5.94 and
RMB 5.93 respectively, in the first
quarter of 2018;
- The total number of engines sold was 101,300 units compared
with 110,113 units in the first quarter of 2018.
Net revenue for the first quarter of 2019 decreased by 4.0% to
RMB 4.2 billion (US$ 618.3 million) compared with RMB 4.3 billion in the first quarter of
2018. This decline was mainly due to a lower number of units
sold and a change in product mix due to market conditions, which
was partly mitigated by a higher average selling price.
The total number of engines sold by GYMCL in the first quarter
of 2019 decreased by 8.0% to 101,300 units compared with 110,113
units in the same quarter last year. Lower unit sales
primarily reflected lower sales of truck and bus engines, which
were partially offset by higher sales of engines for off-road
markets during the first quarter of 2019. According to data
reported by the China Association of Automobile Manufacturers, in
the first quarter of 2019, sales of commercial vehicles (excluding
gasoline-powered and electric-powered vehicles) decreased by
2.4%. The market was led by a 20.3% decrease in medium-duty
truck sales with continued decline in the bus market. GYMCL's
overall truck engine sales also declined in the first quarter of
2019, but the light-duty truck engine sales increased, and the
off-road engine sales rose, led by higher engine sales in the
agricultural equipment market.
Gross profit was RMB 761.3 million
(US$ 113.1 million) compared with
RMB 853.5 million in the first
quarter of 2018. Gross margin decreased to 18.3% from 19.7% in
the first quarter of 2018. The lower gross profit was mainly
due to lower sales volume and a change in product mix in the first
quarter of 2019.
Other operating income decreased by 13.0% to RMB 43.9 million (US$ 6.5
million) from RMB 50.5 million
in the first quarter of 2018. The decrease was mainly due to a
lower government grant by RMB 5.2
million in the first quarter of 2019.
Research and development ("R&D") expenses decreased by 40.1%
to RMB 71.9 million (US$ 10.7 million) compared with RMB 119.9 million in the first quarter of
2018. Lower R&D expenses in the first quarter of 2019 were
mainly due to the capitalization of development costs for National
VI and Tier 4 engines that met the IFRS capitalization
criteria. In the first quarter of 2019, the R&D
capitalization amount was RMB 47.6
million (US$ 7.1 million).
R&D expenses continued to reflect development and testing of
new engines to meet higher emission standards and further efforts
to enhance engine quality and performance. In the first
quarter of 2019, the total R&D expenditure, including
capitalized costs, was RMB 119.5
million (US$ 17.7 million) and
it represented 2.9% of the net revenue. In the first quarter
of 2018, the total R&D expenditure was RMB 119.9 million, representing a 2.8% of the net
revenue.
Selling, general & administrative ("SG&A") expenses
increased by 4.5% to RMB 376.1
million (US$ 55.9 million)
compared with RMB 359.9 million in
the first quarter of 2018. SG&A expenses represented 9.0%
of net revenue compared with 8.3% in the first quarter of
2018. The increase was primarily attributed to higher warranty
expenses.
Operating profit was RMB 357.3
million (US$ 53.1 million)
compared with RMB 424.2 million in
the first quarter of 2018. The operating margin decreased to
8.6% from 9.8% in the same quarter last year.
Finance costs increased by 12.3% to RMB
25.3 million (US$ 3.8 million)
compared with RMB 22.5 million in the
first quarter of 2018. Higher finance costs resulted mainly
from a non-recurring government interest expense grant of
RMB 4.2 million in first quarter of
2018, which was partially offset by lower bills discounting in
first quarter of 2019.
Net earnings attributable to China Yuchai's shareholders was
RMB 198.0 million (US$ 29.4 million) compared with RMB 242.8 million in the same quarter last
year.
Basic and diluted earnings per share were RMB 4.85 (US$ 0.72)
in the first quarter of 2019, compared with RMB 5.94 and RMB
5.93 respectively in the same quarter last year.
Basic and diluted earnings per share in the first quarter of
2019 were based on a weighted average of 40,858,290 shares. In the
first quarter of 2018, basic earnings per share was based on a
weighted average of 40,858,290 shares, and diluted earnings per
share was based on a weighted average of 40,916,810
shares.
Balance Sheet Highlights as at March
31, 2019
- Cash and bank balances were RMB 5.2
billion (US$ 767.8 million)
compared with RMB 6.1 billion at the
end of 2018;
- Trade and bills receivables were RMB 8.7
billion (US$ 1.3 billion)
compared with RMB 7.4 billion at the
end of 2018;
- Inventories were RMB 3.0 billion
(US$ 438.2 million) compared with
RMB 2.5 billion at the end of
2018;
- Trade and bills payables were RMB 5.2
billion (US$ 774.5 million)
compared with RMB 4.6 billion at the
end of 2018;
- Short- and long-term bank borrowings were RMB 1.7 billion (US$ 253.4
million) compared with RMB 2.0
billion at the end of 2018.
Mr. Weng Ming Hoh, President of
China Yuchai, commented, "We are well positioned with our broad
portfolio of National VI and Tier 4 engines to meet the challenges
of the new upcoming emission standards. Our new joint venture
with Eberspaecher Exhaust Technology International GmbH will
provide a ready supply of these important emission systems for the
future."
"We continue to build on our strength to provide the necessary
resources to achieve our strategic goals."
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 6.7335 =
US$ 1.00, the rate quoted by the
People's Bank of China at the
close of business on March 29, 2019.
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 March 29,
2019 or at any other date.
Unaudited First Quarter 2019 Conference
Call
A conference call and audio webcast for the investment community
has been scheduled for 8:00 A.M. Eastern
Daylight Time on May 10, 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: 6955977 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 2018,
GYMCL sold 375,731 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:
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 March 31, 2019 and 2018
|
(RMB and US$
amounts expressed in thousands, except per share
data)
|
|
|
March 31,
2019
|
March 31,
2018
|
|
|
|
|
|
RMB
'000
|
US$
'000
|
RMB
'000
|
US$
'000
|
Revenue
|
4,163,280
|
618,294
|
4,337,094
|
644,107
|
Cost of goods
sold
|
(3,401,952)
|
(505,228)
|
(3,483,614)
|
(517,356)
|
Gross
profit
|
761,328
|
113,066
|
853,480
|
126,751
|
Other operating
income, net
|
43,926
|
6,524
|
50,491
|
7,498
|
Research and
development costs
|
(71,867)
|
(10,673)
|
(119,909)
|
(17,808)
|
Selling, general and
administrative costs
|
(376,132)
|
(55,860)
|
(359,882)
|
(53,446)
|
Operating
profit
|
357,255
|
53,057
|
424,180
|
62,995
|
Finance
costs
|
(25,293)
|
(3,756)
|
(22,519)
|
(3,344)
|
Share of results of
associates and joint ventures
|
3,867
|
574
|
7,717
|
1,146
|
Profit before
tax
|
335,829
|
49,875
|
409,378
|
60,797
|
Income tax
expense
|
(62,400)
|
(9,267)
|
(81,159)
|
(12,053)
|
Profit for the
period
|
273,429
|
40,608
|
328,219
|
48,744
|
Attributable
to:
|
|
|
|
|
Equity holders of the
parent
|
198,018
|
29,409
|
242,837
|
36,064
|
Non-controlling
interests
|
75,411
|
11,199
|
85,382
|
12,680
|
|
273,429
|
40,608
|
328,219
|
48,744
|
Net earnings per
common share
|
|
|
|
|
- Basic
|
4.85
|
0.72
|
5.94
|
0.88
|
- Diluted
|
4.85
|
0.72
|
5.93
|
0.89
|
Unit sales
|
101,300
|
|
110,113
|
|
CHINA YUCHAI
INTERNATIONAL LIMITED
|
SELECTED UNAUDITED
CONSOLIDATED BALANCE SHEET ITEMS
|
For the periods
ended March 31, 2019 and December 31, 2018
|
(RMB and US$
amounts expressed in thousands)
|
|
|
As of March 31,
2019
|
As of
December 31, 2018
(Audited)
|
|
RMB
'000
|
USD'000
|
RMB
'000
|
Cash and bank
balances
|
5,170,250
|
767,840
|
6,128,522
|
Trade and bills
receivables
|
8,719,111
|
1,294,885
|
7,389,106
|
Inventories
|
2,950,785
|
438,224
|
2,517,864
|
Trade and bills
payables
|
5,214,829
|
774,460
|
4,560,629
|
Short-term and
long-term loans and borrowings
|
1,706,446
|
253,426
|
2,016,092
|
Equity attributable
to equity holders of the parent
|
8,626,545
|
1,281,138
|
8,395,849
|
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SOURCE China Yuchai International Limited