SINGAPORE, Aug. 10,
2023 /PRNewswire/ -- China Yuchai
International Limited (NYSE: CYD) ("China Yuchai"
or the "Company"), a leading manufacturer and distributor of
engines for on- and off-road applications in China through its main operating subsidiary,
Guangxi Yuchai Machinery Company Limited ("GYMCL"), wishes to
announce today its unaudited consolidated financial results for the
2023 first half-year ("1H 2023") ended June
30, 2023. The financial information presented herein
for 1H 2023 and for the 2022 first half-year ("1H 2022") are
reported using the International Financial Reporting Standards
("IFRS") as issued by the International Accounting Standards
Board.
Financial Highlights for 1H 2023
- Revenue grew by 7.0% to RMB 9.2
billion (US$ 1.3 billion)
compared with RMB 8.6 billion in 1H
2022;
- Gross profit increased by 14.1% to RMB
1.6 billion (US$ 214.8
million) compared with RMB 1.4
billion in 1H 2022. Gross margin increased to 16.9% in 1H
2023 compared with 15.9% in 1H 2022;
- Operating profit grew by 34.6% to RMB
387.7 million (US$ 53.7
million) compared with RMB 288.0
million in 1H 2022;
- Basic and diluted earnings per share increased by 90.8% to
RMB 4.37 (US$
0.60) compared with RMB 2.29
in 1H 2022;
- Total number of engines sold decreased by 8.4% to 165,793 units
compared with 180,911 units in 1H 2022.
Revenue was RMB 9.2 billion
(US$ 1.3 billion) compared with
RMB 8.6 billion in 1H 2022.
The total number of engines sold by GYMCL in 1H 2023 declined by
8.4% to 165,793 units compared with 180,911 units in 1H 2022.
The decrease was mainly due to lower engine sales in the
truck and agriculture application markets, partially offset by
higher engine sales in the bus, industrial, and marine and power
generation markets.
According to data reported by the China Association of
Automobile Manufacturers ("CAAM"), in
1H 2023, commercial vehicle unit sales (excluding gasoline-powered
and electric-powered vehicles) increased by 8.3% compared to 1H
2022 as truck and bus sales increased by 6.0% and 28.1%
respectively.
Gross profit increased by 14.1% to RMB
1.6 billion (US$ 214.8
million), compared with RMB 1.4
billion in 1H 2022. Gross margin increased to 16.9 %
as compared with 15.9% in 1H 2022. The increase in gross
profit and gross margin was mainly attributable to margin
improvement across most market segments with greater sales of
larger engines, and contributions from ongoing cost reduction
efforts.
Other operating income increased by 59.3% to RMB 136.2 million (US$
18.8 million) compared with RMB
85.5 million in 1H 2022. The increase was mainly
due to higher government grants received and recognized.
Research and development ("R&D") expenses decreased slightly
to RMB 406.0 million (US$ 56.2 million) compared with RMB 408.5 million in 1H 2022. The Company
continues to invest in research and development for on-road engines
in the commercial vehicle markets and off-road engines as well as
new energy products. Total R&D expenditures, including
capitalized costs, were RMB 465.2
million (US$ 64.4 million)
representing 5.1% of revenue in 1H 2023, as compared to
RMB 476.9 million, or 5.6% of
revenue, in 1H 2022.
Selling, general and administrative ("SG&A") expenses
increased by 19.3% to RMB 894.5
million
(US$ 123.8 million) from RMB 749.6 million in 1H 2022. The increase
was mainly due to higher provision for personnel and other selling
and administrative expenses compared with the same period last
year. SG&A expenses represented 9.8% of revenue for 1H
2023 compared with 8.7% in 1H 2022.
Operating profit rose by 34.6% to RMB
387.7 million (US$ 53.7
million) from RMB 288.0
million in 1H 2022. The operating margin was 4.2%
compared with 3.4% in 1H 2022.
Finance costs declined by 2.9% to RMB
53.6 million (US$ 7.4 million)
from RMB 55.2 million in 1H 2022.
The share of financial results of the associates and joint
ventures was a profit of RMB 29.6
million (US$ 4.1 million)
compared with a loss of RMB 30.9
million in 1H 2022. This improvement was primarily due
to higher profits at MTU Yuchai Power Company Limited and a return
to profitability at Y&C Engine Co. Ltd.
Income tax expense was RMB 110.6
million (US$ 15.3 million) as
compared with RMB 56.5 million in 1H
2022. The change was mainly due to the higher taxable income
in 1H 2023 and adjustment for under provision in the prior
year.
Net profit attributable to equity holders of the Company was
RMB 178.4 million (US$ 24.7 million) compared with RMB 93.7 million in 1H 2022.
Basic and diluted earnings per share were RMB 4.37 (US$ 0.60)
compared with RMB 2.29 in 1H
2022.
Basic and diluted earnings per share for 1H 2023 and 1H 2022
were based on a weighted average of 40,858,290 shares.
Balance Sheet Highlights as at June
30, 2023
- Cash and bank balances were RMB 5.6
billion (US$ 777.2 million)
compared with
RMB 4.9 billion at the end of FY
2022;
- Trade and bills receivables were RMB 9.0
billion (US$ 1.3 billion)
compared with
RMB 6.8 billion at the end of FY
2022;
- Inventories were RMB 4.9 billion
(US$ 682.4 million) compared with
RMB 4.9 billion at the end of FY
2022;
- Trade and bills payables were RMB 8.0
billion (US$ 1.1 billion)
compared with
RMB 6.9 billion at the end of FY
2022;
- Short-term and long-term loans and borrowings were RMB 3.0 billion (US$ 419.7
million) compared with RMB 2.3
billion at the end of FY 2022.
Mr. Weng Ming Hoh, President of
China Yuchai, commented, "We achieved better financial results,
with higher revenue, margins and earnings per share than the same
period last year despite uneven growth in the China's commercial vehicle markets.
Investments in key joint ventures are now contributing more
to net profits."
"Our revenues in the first half of 2023 reflected the breadth of
our product portfolio to serve our customers across a number of
industries. We are confident that we can leverage the
long-term growth potential of our businesses and create value for
our shareholders," Mr. Hoh concluded.
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 7.2258 =
US$1.00, the rate quoted by the
People's Bank of China at the
close of business on June 30, 2023.
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 June 30,
2023 or at any other date.
Unaudited 1H 2023 Conference Call
A conference call and audio webcast for the investment community
has been scheduled for 8:00 A.M. Eastern
Daylight Time on August 10,
2023. The call will be hosted by the President and Chief
Financial Officer of China Yuchai, Mr. Weng
Ming Hoh and Mr. Choon Sen
Loo, respectively, who will present and discuss the
financial results of the Company followed by a Q&A session.
Analysts and institutional investors may participate in the
conference call by registering at:
https://register.vevent.com/register/BI74bf52d8366e405fac48da1ef3a1942d
at least one hour before the scheduled start time. A reply
email will be sent with instructions and numbers to join the
call.
For all other interested parties, a simultaneous webcast can be
accessed at the investor relations section of the Company's website
located at https://www.cyilimited.com. Participants
are encouraged to join 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, GYMCL 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 teams and significant market share
in China with high-quality
products and reliable after-sales support. In 2022, GYMCL
sold 321,256 engines and is recognized as a leading manufacturer
and distributor of engines in China. For more information, please
visit https://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
China Yuchai's and the joint ventures' operations, financial
performance and condition are based on current expectations,
beliefs and assumptions which are subject to change at any time.
China Yuchai 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
China Yuchai'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. Among others, if the COVID-19
pandemic is not effectively and timely controlled, our business
operations and financial condition may be materially and adversely
affected due to a deteriorating market for automotive sales, an
economic slowdown in China and
abroad, a potential weakening of the financial condition of our
customers, or other factors that we cannot foresee. All
forward-looking statements are applicable only as of the date they
are made and China Yuchai 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:
Investor Relations
Kevin Theiss
Tel: +1-212-510-8922
Email: cyd@bluefocus.com
-- Tables Follow –
CHINA YUCHAI
INTERNATIONAL LIMITED
|
UNAUDITED
CONSOLIDATED INCOME STATEMENTS
|
For the first half –
years ended June 30, 2023 and 2022
(RMB and US$ amounts expressed in thousands)
|
|
|
June 30,
2023
|
June 30,
2022
|
|
|
RMB
'000
|
US$
'000
|
RMB
'000
|
US$
'000
|
Revenue
|
9,171,003
|
1,269,202
|
8,568,505
|
1,185,821
|
Cost of
sales
|
(7,618,986)
|
(1,054,414)
|
(7,207,874)
|
(997,519)
|
Gross profit
|
1,552,017
|
214,788
|
1,360,631
|
188,302
|
Other operating income,
net
|
136,201
|
18,849
|
85,492
|
11,831
|
Research and
development expenses
|
(406,047)
|
(56,194)
|
(408,481)
|
(56,531)
|
Selling, general and
administrative expenses
|
(894,485)
|
(123,790)
|
(749,604)
|
(103,740)
|
Operating
profit
|
387,686
|
53,653
|
288,038
|
39,862
|
Finance
costs
|
(53,642)
|
(7,424)
|
(55,231)
|
(7,644)
|
Share of results of
associates and joint ventures
|
29,626
|
4,100
|
(30,942)
|
(4,282)
|
Profit before
tax
|
363,670
|
50,329
|
201,865
|
27,936
|
Income tax
expense
|
(110,627)
|
(15,310)
|
(56,487)
|
(7,817)
|
Profit for the
period
|
253,043
|
35,019
|
145,378
|
20,119
|
Attributable
to:
|
|
|
|
|
Equity holders of the
Company
|
178,377
|
24,686
|
93,724
|
12,970
|
Non-controlling
interests
|
74,666
|
10,333
|
51,654
|
7,149
|
|
253,043
|
35,019
|
145,378
|
20,119
|
Net earnings per
share
|
|
|
|
|
- Basic
|
4.37
|
0.60
|
2.29
|
0.32
|
- Diluted
|
4.37
|
0.60
|
2.29
|
0.32
|
Unit sales
|
165,793
|
|
180,911
|
|
CHINA YUCHAI
INTERNATIONAL LIMITED
|
SELECTED UNAUDITED
CONSOLIDATED BALANCE SHEET ITEMS
|
For the periods
ended June 30, 2023 and December 31, 2022
|
(RMB and US$ amounts
expressed in thousands)
|
|
|
June 30,
2023
(Unaudited)
|
December 31,
2022
(Audited)
|
|
RMB
'000
|
US$
'000
|
RMB
'000
|
Cash and bank
balances
|
5,616,231
|
777,247
|
4,850,743
|
Trade and bills
receivables
|
9,049,354
|
1,252,367
|
6,792,958
|
Inventories
|
4,931,085
|
682,428
|
4,937,755
|
Trade and bills
payables
|
8,002,430
|
1,107,480
|
6,919,421
|
Short-term and
long-term loans and borrowings
|
3,032,581
|
419,688
|
2,341,432
|
Equity attributable to
equity holders of the
Company
|
9,230,044
|
1,277,373
|
9,008,946
|
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SOURCE China Yuchai International Limited