SINGAPORE, Feb. 22, 2017 /PRNewswire/ -- China Yuchai
International Limited (NYSE: CYD) ("China Yuchai" or the
"Company"), a leading automotive manufacturer and distributor of
engines 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 year ended December 31, 2016. The financial information
presented herein for 2016 and 2015 is reported using International
Financial Reporting Standards ("IFRS") as issued by the
International Accounting Standards Board.
Financial Highlights for the Fourth Quarter of 2016
- Net revenue increased by 27.7% to RMB
3.7 billion (US$ 538.5
million) compared with RMB 2.9
billion in the fourth quarter of 2015;
- Gross profit rose by 47.2% to RMB 1.0
billion (US$ 146.9 million),
with an increase in gross margin to 27.3% compared with
RMB 692.1 million and a gross margin
of 23.7% in the fourth quarter of 2015;
- Operating profit increased by 133.9% to RMB 379.3 million (US$
54.7 million) compared with RMB 162.2
million in the same quarter of 2015;
- Net earnings attributable to China Yuchai's shareholders
increased by 283.1% to RMB 226.0
million (US$ 32.6 million)
from RMB 59.0 million in the fourth
quarter of 2015;
- Earnings per share were RMB 5.55
(US$ 0.80) compared with RMB 1.50 in the fourth quarter of 2015;
- The total number of engines sold increased by 26.1% to 75,849
units compared with 60,143 units in the fourth quarter of
2015.
Net revenue for the fourth quarter of 2016 increased by 27.7% to
RMB 3.7 billion (US$ 538.5 million) compared with RMB 2.9 billion in the fourth quarter of
2015.
The total number of engines sold by GYMCL in the fourth quarter
of 2016 increased by 26.1% to 75,849 units compared with 60,143
units in the same quarter a year ago. According to data
reported by China Association of Automobile Manufacturers ("CAAM"),
in the fourth quarter of 2016, sales of commercial vehicles
(excluding gasoline-powered and electric-powered vehicles)
increased by 15.7%. The market was led by a 21.4% increase in
truck sales with heavy-duty truck sales climbing 69.5%. The
bus market was weak showing declines in every size category led by
a 18.6% decrease in heavy-duty bus sales. GYMCL's on-road
engine sales reflected the sales trend in the commercial vehicle
engine market.
Gross profit increased by 47.2% to RMB
1.0 billion (US$ 146.9
million) compared with RMB 692.1
million in the same quarter of 2015. Gross margin rose
to 27.3% in the fourth quarter of 2016 compared with 23.7% in the
same quarter of 2015. The gross profit increase was mainly
attributable to lower raw material costs and better product
mix.
Other operating income was RMB 43.6
million (US$ 6.3 million)
compared with RMB 25.8 million in the
same quarter of 2015. This increase was due to higher government
grants in the fourth quarter of 2016 as compared to the same
quarter of 2015.
Research and development ("R&D") expenses increased by 53.0%
to RMB 187.3 million (US$ 27.0 million) from RMB
122.5 million in the same quarter of 2015. As a
percentage of net revenue, R&D spending was 5.0% compared with
4.2% in the same quarter of 2015. R&D expenses reflected
development and testing costs of new engines meeting higher
emission standards and GYMCL's continued initiatives to improve
engine quality.
Selling, general & administrative ("SG&A") expenses
increased by 14.4% to RMB 495.7
million (US$ 71.5 million)
from RMB 433.3 million in the fourth
quarter of 2015. SG&A expenses represented 13.3% of net
revenue compared with 14.8% in the fourth quarter of 2015.
The decrease in the SG&A as a percentage of total net
sales was mainly due to higher net sales.
Operating profit increased by 133.9% to RMB 379.3 million (US$
54.7 million) from RMB 162.2
million in the fourth quarter of 2015. The increase was
mainly due to higher revenue and higher gross profit. The
operating margin was 10.2% compared with 5.5% in the same period of
2015.
Finance costs decreased by 48.8% to RMB
11.3 million (US$ 1.6 million)
from RMB 22.1 million in the same
quarter of 2015. Lower finance costs mainly resulted from reduced
bank loans and borrowings. External borrowings
decreased to RMB 910.4 million from
RMB 2.5 billion in the same period in
2015.
The share of joint ventures' gain was RMB
1.8 million (US$ 0.3 million),
compared with RMB 16.3 million in the
same quarter of 2015. This was mainly due to a one-time
reversal of the impairment made for a joint venture of our
subsidiary in 2015.
In the fourth quarter of 2016, total net profit attributable to
China Yuchai's shareholders was RMB 226.0
million (US$ 32.6 million), or
earnings per share of RMB 5.55
(US$ 0.80), compared with
RMB 59.0 million, or earnings per
share of RMB 1.50 in the same quarter
in 2015.
Earnings per share in the fourth quarter of 2016 was based on a
weighted average of 40,712,100 shares compared with 39,298,340
shares in the same period in 2015. In June
2016, 1,413,760 new shares were issued to shareholders who
elected to receive shares in lieu of dividend in cash.
Financial Highlights for the Financial Year of 2016
- Net revenue was RMB 13.7 billion
(US$ 2.0 billion) compared with
RMB 13.7 billion in 2015;
- Gross profit increased by 6.2% to RMB
3.0 billion (US$ 427.3
million) with gross margin increasing to 21.7%, compared
with RMB 2.8 billion and a gross
margin of 20.3% in 2015;
- Operating profit increased by 20.1% to RMB 967.2 million (US$
139.4 million) compared with RMB
805.2 million in 2015;
- Earnings per share rose by 46.3% to RMB
12.89 (US$ 1.86) compared with
RMB 8.81 in 2015;
- The total number of engines sold declined by 12.1% to 320,424
units compared with 364,567 units in 2015.
Net revenue was RMB 13.7 billion
(US$ 2.0 billion) compared with
RMB 13.7 billion in 2015.
The total number of engines sold by GYMCL in 2016 was 320,424
units compared with 364,567 units in 2015, representing a decrease
of 44,143 units, or 12.1%, mainly due to lower unit sales to the
agricultural market. According to CAAM, sales of commercial
vehicles (excluding gasoline-powered and electric-powered vehicles)
increased by 8.3% in 2016. The truck market rebounded with an
11.6% gain led by a 33.1% increase in heavy-duty truck sales.
The bus market remained weak experiencing a 9.9% decline in
overall sales with heavy-duty bus sales down by 20.1%. Again, GYMCL
on-road engine sales reflected the sales trend in the commercial
vehicle market.
Gross profit increased by 6.2% to RMB 3.0
billion (US$ 427.3 million)
compared with RMB 2.8 billion in
2015. The gross profit margin increased to 21.7% compared
with 20.3% in 2015. The higher gross profit and higher gross
profit margin were mainly due to lower raw material costs and
better product mix.
Other operating income increased by 393.1% to RMB 95.4 million (US$ 13.7
million) compared with RMB 19.3
million in 2015. This increase was mainly due to lower
foreign exchange revaluation losses, higher interest income from
bank deposits and a one-time loss in 2015 from the disposal of
GYMCL's entire shareholding interest in Xiamen Yuchai Diesel
Engines Co., Ltd.
Research and development ("R&D") expenses increased by 16.0%
to RMB 588.0 million (US$ 84.8 million) compared with RMB 507.0 million in 2015. As a percentage
of net revenue, R&D spending was 4.3% compared with 3.7% in
2015. R&D expenses increased mainly due to the ongoing
research and development of new and existing engine products as
well as continued initiatives to improve engine quality. The
Company remains committed to its R&D programs and continues to
introduce new engine models for both the on- and off – road markets
compliant with increasingly stringent emission standards.
Selling, general & administrative ("SG&A") expenses
remained unchanged at RMB 1.5 billion
(US$ 216.9 million) for 2016 and
2015. These expenses represented 11.0% of net revenue,
compared with 10.9% in 2015.
Operating profit increased by 20.1% to RMB 967.2 million (US$
139.4 million) from RMB 805.2
million in 2015. The operating margin was 7.1%
compared with 5.9% in 2015.
Finance costs declined by 31.5% to RMB
79.7 million (US$ 11.5
million) from RMB 116.4
million in 2015. Lower finance costs mainly resulted from
reduced bank loans and borrowings. External borrowings decreased to
RMB 910.4 million from RMB 2.5 billion in the same period in 2015.
The share of joint ventures was a loss of RMB 4.1 million (US$ 0.6
million), compared with a loss of RMB
2.9 million in 2015.
The net profit attributable to China Yuchai's shareholders was
RMB 515.7 million (US$ 74.3 million), or earnings per share of
RMB 12.89 (US$
1.86), compared with RMB 341.1
million, or earnings per share of RMB
8.81 in 2015.
Earnings per share were based on a weighted average of
40,016,808 shares compared with 38,712,282 shares in 2015. In
June 2016, 1,413,760 new shares were
issued to shareholders who elected to receive shares in lieu of
dividend in cash.
Balance Sheet Highlights as at December 31, 2016
- Cash and bank balances were RMB 4.1
billion (US$ 584.3 million)
compared with RMB 3.8 billion at the
end of 2015;
- Trade and bills receivables were RMB 7.1
billion (US$ 1.0 billion)
compared with RMB 7.2 billion at the
end of 2015;
- Inventories remained unchanged at RMB
1.7 billion (US$ 239.9
million) ;
- Short- and long-term borrowings were RMB
910.4 million (US$ 131.2
million) compared with RMB 2.5
billion at the end of 2015;
- Trade and bills payables were RMB 4.7
billion (US$ 672.8 million)
compared with RMB 3.8 billion at the
end of 2015.
Mr. Weng Ming Hoh, President of
China Yuchai, commented, "2016 started out challenging for the
engine business in China, but
concluded the year with strong growth in several engine sectors.
We increased engine sales in both the on-road and off-road
markets in the fourth quarter of 2016. In addition to the
increase in unit sales in the fourth quarter of 2016, we increased
sales of higher margin products resulting in an enhanced average
selling price and improved profitability."
"We continued to generate cash-flow and improved return on
invested capital. Together with our healthy financial
position and improved operational efficiency, we believe that we
will continue to create shareholder value." Mr. Hoh
concluded.
Disclaimer Regarding Unaudited Financial Results
Investors should note that the Company has not yet finalized its
consolidated financial results for fiscal year 2016. 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 2016 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 6.9370 =
US$ 1.00, the rate quoted by the
People's Bank of China at the
close of business on December 31,
2016. 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, 2016 or at any other date.
Unaudited Full Year 2016 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 22,
2017. The call will be hosted by Mr. Weng Ming HOH,
President, and Dr. Thomas Phung,
Chief Financial Officer of China Yuchai. They will present on 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: 65471266 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 2016, GYMCL sold 320,424 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: +1-646-726-6511
Email: cyd@bluefocus.com
-- Tables Follow --
CHINA YUCHAI
INTERNATIONAL LIMITED
|
UNAUDITED
CONSOLIDATED INCOME STATEMENTS
|
For the quarters
ended December 31, 2016 and 2015
|
(RMB and US$
amounts expressed in thousands, except per share
data)
|
|
|
Quarter ended
on
December 31, 2016
|
Quarter
ended on
December 31,
2015
|
|
RMB
'000
|
US$
'000
|
RMB
'000
|
US$
'000
|
Revenue
|
3,735,859
|
538,541
|
2,926,451
|
421,861
|
Cost of goods
sold
|
(2,717,159)
|
(391,691)
|
(2,234,311)
|
(322,086)
|
Gross
profit
|
1,018,700
|
146,850
|
692,140
|
99,775
|
Other operating
income
|
43,605
|
6,286
|
25,798
|
3,719
|
Research and
development costs
|
(187,345)
|
(27,007)
|
(122,478)
|
(17,656)
|
Selling, general and
administrative costs
|
(495,650)
|
(71,450)
|
(433,276)
|
(62,459)
|
Operating
profit
|
379,310
|
54,679
|
162,184
|
23,379
|
Finance
costs
|
(11,298)
|
(1,629)
|
(22,067)
|
(3,181)
|
Share of profit of
associates
|
445
|
64
|
188
|
27
|
Share of profit of
joint ventures
|
1,788
|
258
|
16,316
|
2,352
|
Profit before
tax
|
370,245
|
53,372
|
156,621
|
22,577
|
Income tax
expense
|
(51,433)
|
(7,414)
|
(57,729)
|
(8,322)
|
Profit for the
period
|
318,812
|
45,958
|
98,892
|
14,255
|
Attributable
to:
|
|
|
|
|
Equity holders of the
parent
|
226,029
|
32,583
|
59,004
|
8,505
|
Non-controlling
interests
|
92,783
|
13,375
|
39,888
|
5,750
|
|
318,812
|
45,958
|
98,892
|
14,255
|
Net earnings per
common share
|
|
|
|
|
Basic
|
5.55
|
0.80
|
1.50
|
0.22
|
Diluted
|
5.55
|
0.80
|
1.50
|
0.22
|
Unit sales
|
75,849
|
|
60,143
|
|
CHINA YUCHAI
INTERNATIONAL LIMITED
|
UNAUDITED
CONSOLIDATED INCOME STATEMENTS
|
For the years
ended December 31, 2016 and 2015
|
(RMB and US$
amounts expressed in thousands, except per share
data)
|
|
|
December 31,
2016
|
December 31,
2015
|
|
RMB
'000
|
US$
'000
|
RMB
'000
|
US$
'000
|
Revenue
|
13,664,840
|
1,969,849
|
13,733,437
|
1,979,737
|
Cost of goods
sold
|
(10,700,655)
|
(1,542,548)
|
(10,942,865)
|
(1,577,464)
|
Gross
profit
|
2,964,185
|
427,301
|
2,790,572
|
402,273
|
Other operating
income
|
95,355
|
13,746
|
19,337
|
2,788
|
Research and
development costs
|
(588,007)
|
(84,764)
|
(506,955)
|
(73,080)
|
Selling, general and
administrative costs
|
(1,504,360)
|
(216,860)
|
(1,497,774)
|
(215,911)
|
Operating
profit
|
967,173
|
139,423
|
805,180
|
116,070
|
Finance
costs
|
(79,683)
|
(11,487)
|
(116,351)
|
(16,773)
|
Share of profit of
associates
|
456
|
66
|
245
|
35
|
Share of loss of
joint ventures
|
(4,068)
|
(586)
|
(2,936)
|
(423)
|
Profit before
tax
|
883,878
|
127,416
|
686,138
|
98,909
|
Income tax
expense
|
(160,270)
|
(23,104)
|
(176,818)
|
(25,489)
|
Profit for the
year
|
723,608
|
104,312
|
509,320
|
73,420
|
Attributable
to:
|
|
|
|
|
Equity holders of the
parent
|
515,737
|
74,346
|
341,108
|
49,171
|
Non-controlling
interests
|
207,871
|
29,966
|
168,212
|
24,249
|
|
723,608
|
104,312
|
509,320
|
73,420
|
Net earnings per
common share
|
|
|
|
|
Basic
|
12.89
|
1.86
|
8.81
|
1.28
|
Diluted
|
12.89
|
1.86
|
8.81
|
1.28
|
Unit sales
|
320,424
|
|
364,567
|
|
CHINA YUCHAI
INTERNATIONAL LIMITED
|
SELECTED UNAUDITED
CONSOLIDATED BALANCE SHEET ITEMS
|
For the years
ended December 31, 2016 and 2015
|
(RMB and US$
amounts expressed in thousands, except per share
data)
|
|
|
As of December 31, 2016,
(Unaudited)
|
As of December 31,
2015
(Audited)
|
|
RMB
'000
|
US$
'000
|
RMB
'000
|
Cash and bank
balances
|
4,052,957
|
584,252
|
3,842,123
|
Trade and bills
receivables
|
7,059,179
|
1,017,613
|
7,178,513
|
Inventories
|
1,663,878
|
239,856
|
1,711,330
|
Trade and bills
payables
|
4,666,950
|
672,762
|
3,841,756
|
Short-term and
long-term interest bearing loans and
borrowings
|
910,406
|
131,239
|
2,455,704
|
Equity attributable
to equity holders of the parent
|
7,683,834
|
1,107,660
|
7,239,617
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/china-yuchai-international-announces-2700-increase-in-unaudited-2016-fourth-quarter-earnings-per-share-300411392.html
SOURCE China Yuchai International Limited