SINGAPORE, Feb. 23,
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
2022 second half-year ("2H 2022") and fiscal year ("FY 2022") ended
December 31, 2022. The
financial information presented herein for the second half year and
fiscal year of 2022 and the second half year ("2H 2021") and fiscal
year ("FY 2021") ended December 31,
2021 is reported using the International Financial Reporting
Standards ("IFRS") as issued by the International Accounting
Standards Board.
Financial Highlights for 2H 2022
- Revenue was RMB 7.5 billion
(US$ 1.1 billion) compared with
RMB 8.6 billion in 2H 2021;
- Gross profit was RMB 1.3 billion
(US$ 182.4 million) compared with
RMB 1.3 billion in 2H 2021. Gross
margin was 17.0% in 2H 2022 compared with 15.4% in 2H 2021;
- Operating profit grew by 41.2% to RMB
231.3 million (US$ 33.2
million) compared with RMB 163.8
million in 2H 2021;
- Basic and diluted earnings per share increased by 565.2% to
RMB 3.06 (US$
0.44) compared with RMB 0.46
in 2H 2021;
- Total number of engines sold decreased by 18.1% to 140,345
units compared with 171,449 units in 2H 2021.
Revenue was RMB 7.5 billion
(US$ 1.1 billion) compared with
RMB 8.6 billion in 2H 2021.
The total number of engines sold by GYMCL in 2H 2022 declined by
18.1% to 140,345 units compared with 171,449 units in 2H 2021. The
decrease was mainly due to lower engine sales in the truck, bus,
marine and power generation application markets, partially offset
by higher sales in agricultural and industrial engines.
According to data reported by the China Association of
Automobile Manufacturers ("CAAM"), in 2H 2022, commercial vehicle
unit sales (excluding sales of gasoline-powered and
electric-powered vehicles) decreased by 26.3% compared to 2H 2021,
as sales of trucks and buses declined by 27.5% and 18.4%
respectively, reflecting weak demand in these market
segments.
Gross profit was RMB 1.3 billion
(US$ 182.4 million), compared with
the same amount of RMB 1.3 billion in
2H 2021. Gross margin increased to 17.0% as compared with 15.4% in
2H 2021. The increase in gross margin was mainly attributable
to a change in revenue mix with an increase in off-road segment
over the on-road segment, cost reductions, and lower sales
rebates.
Other operating income increased by 22.9% to RMB 251.3 million (US$
36.1 million) compared with RMB 204.5
million in 2H 2021. The increase was mainly due to higher
government grants.
Research and development ("R&D") expenses decreased by 19.7%
to RMB 428.0 million (US$ 61.4 million) compared with RMB 533.1 million in 2H 2021 due to lower R&D
expenses incurred in commercial vehicle engines that were partially
offset by higher R&D expenses incurred in marine engines and
power generation engines and new energy products. Total R&D
expenditures, including capitalized costs, were RMB 540.8 million (US$
77.6 million) representing 7.3% of revenue in 2H 2022, as
compared to RMB 712.2 million
representing 8.3% of revenue in 2H 2021.
Selling, general and administrative ("SG&A") expenses
increased slightly to RMB 862.1
million (US$ 123.8 million)
from RMB 835.9 million in 2H 2021.
The increase was mainly due to increased warranty expenses
compared with the same period last year. SG&A expenses
represented 11.6% of revenue for 2H 2022 compared with 9.7% in 2H
2021.
Operating profit rose by 41.2% to RMB
231.3 million (US$ 33.2
million) from RMB 163.8
million in 2H 2021. The operating margin was 3.1% compared
with 1.9% in 2H 2021.
Finance costs declined by 15.3% to RMB
40.2 million (US$ 5.8 million)
from RMB 47.5 million in 2H 2021.
The share of financial results of the associates and joint
ventures was a profit of RMB 1.8
million (US$ 0.3 million)
compared with a loss of RMB 108.4
million in 2H 2021. This gain was largely due to
higher profit at the MTU Yuchai Power Company Limited and the share
of lower losses at Y&C Engine Co. Ltd.
Income tax expense was RMB 2.6
million (US$ 0.4 million) as
compared with an income tax credit of RMB
42.4 million in 2H 2021. The change was mainly due to the
higher taxable income in 2H 2022.
Net profit attributable to equity holders of the Company was
RMB 124.9 million (US$ 17.9 million) compared with RMB 19.0 million in 2H 2021.
Basic and diluted earnings per share were RMB 3.06 (US$ 0.44)
compared with RMB 0.46 in 2H
2021.
Basic and diluted earnings per share for 2H 2022 and 2H 2021
were based on a weighted average of 40,858,290 shares.
Financial Highlights for FY 2022
- Revenue decreased to RMB 16.0
billion (US$ 2.3 billion)
compared with RMB 21.3 billion in FY
2021;
- Gross profit was RMB 2.6 billion
(US$ 377.7 million), a 16.4% gross
margin, compared with RMB 3.0 billion
and a gross margin of 13.9% in FY 2021;
- Operating profit was RMB 519.3
million (US$ 74.6 million)
compared with RMB 663.5 million in FY
2021;
- Basic and diluted earnings per share were RMB 5.35 (US$ 0.77)
compared with RMB 6.67 in FY
2021;
- Total number of engines sold decreased by 29.7% to 321,256
units compared with 456,791 units in FY 2021.
Revenue was RMB 16.0 billion
(US$ 2.3 billion) compared with
RMB 21.3 billion in FY 2021.
The total number of engines sold by GYMCL in FY 2022 decreased
by 29.7% to 321,256 units compared with 456,791 units in FY 2021.
The decrease was mainly due to weakness in the truck and bus
markets, and the markets of marine and power generation
engines.
According to CAAM, commercial vehicle unit sales (excluding
sales of gasoline-powered and electric-powered vehicles) decreased
by 41.4% in FY 2022, as sales of trucks declined by 42.9% while
sales of buses decreased by 27.1%. The impact of COVID-19
restrictions and related supply chain disruptions impacted market
conditions in China and in foreign
markets.
Gross profit decreased by 10.9% to RMB
2.6 billion (US$ 377.7
million) compared with RMB 3.0
billion in FY 2021. Gross margin increased to 16.4%
compared with 13.9% in FY 2021. The increase in gross margin
was mainly attributable to a change in revenue mix with higher
off-road revenue as a greater proportion of the total revenue, and
lower sales rebates.
Other operating income increased by 6.5% to RMB 336.8 million (US$
48.4 million) compared with RMB 316.2
million in FY 2021. The increase was mainly due to higher
government grants.
R&D expenses decreased by 1.5% to RMB
836.4 million (US$ 120.1
million) compared with RMB 848.8
million in FY 2021. GYMCL continued with its initiatives to
improve engine performances and the qualities of its engines
compliant with China's National VI
and Tier 4 emission standards, and to develop new energy
products. In FY 2022, total R&D expenditures including
capitalized costs were RMB 1.0
billion (US$ 146.1 million)
compared with RMB 1.2 billion in FY
2021, representing 6.4% of the revenue compared with 5.5% in FY
2021.
SG&A expenses were RMB 1.6
billion (US$ 231.4 million)
representing 10.1% of the revenue compared with RMB 1.8 billion, representing 8.3% of the revenue
in FY 2021. This decrease was mainly due to lower freight,
personnel and warranty expenses.
Operating profit was RMB 519.3
million (US$ 74.6 million),
down from RMB 663.5 million in FY
2021. The operating margin was 3.2% compared with 3.1% in FY
2021.
Finance costs decreased by 17.6% to RMB
95.5 million (US$ 13.7
million) from RMB 115.9
million in FY 2021.
The share of financial results of the associates and joint
ventures was a loss of RMB 29.1
million (US$ 4.2 million)
compared with a loss of RMB 95.9
million in FY 2021. The decreased loss was primarily
attributable to higher profit at the MTU Yuchai Power Company
Limited and the share of lower losses at Y&C Engine Co. Ltd.
Income tax expense was RMB 59.1
million (US$ 8.5 million) as
compared with RMB 43.8 million in FY
2021.
Net profit attributable to China Yuchai's shareholders was
RMB 218.6 million (US$ 31.4 million) compared with RMB 272.7 million in FY 2021.
Basic and diluted earnings per share were RMB 5.35 (US$ 0.77)
compared with RMB 6.67 in
FY2021.
Basic and diluted earnings per share for FY 2022 and FY 2021
were based on a weighted average of 40,858,290 shares.
Balance Sheet Highlights as at December 31, 2022
- Cash and bank balances were RMB
4.9 billion (US$ 696.5
million) compared with RMB
5.3 billion at the end of FY 2021;
- Trade and bills receivables were RMB
6.8 billion (US$ 975.4
million) compared with RMB
6.8 billion at the end of FY 2021;
- Inventories were RMB
4.9 billion (US$ 709.0
million) compared with RMB
5.2 billion at the end of FY 2021;
- Trade and bills payables were RMB
6.9 billion (US$ 993.5
million) compared with RMB
7.4 billion at the end of FY 2021;
- Short-term and long-term bank borrowings were RMB 2.3 billion (US$
336.2 million) compared with RMB
2.2 billion at the end of FY 2021.
Mr. Weng Ming Hoh, President of
China Yuchai, commented, "Our results once again demonstrated the
strong resilience of our businesses in selling into diversified
engine markets."
"Market demand for trucks and buses was down significantly in
the second half and for the full year of 2022. Chinese
economic growth was weak in 2022 and investment in the property
markets declined affecting demand for trucks. In addition,
slower global economic growth also affected Chinese exports.
The COVID-19 pandemic-related lockdowns and travel
restrictions impacted the supply chain and affected commercial
vehicle production in 2022."
"However, many COVID-19 restrictions have recently been
rescinded creating more opportunities for growth in the
future. We continued to maintain a strong balance sheet
despite the weak operating environment," Mr. Hoh concluded.
Disclaimer Regarding Unaudited Financial
Results
Investors should note that the Company has not yet finalized its
consolidated financial results for FY 2022. The financial
information of the Company presented above is unaudited and may
differ materially from the audited financial statements of the
Company for FY 2022 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 6.9646 =
US$1.00, the rate quoted by the
People's Bank of China at the
close of business on December 31,
2022. 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, 2022 or at any other date.
Unaudited 2H 2022 and FY 2022 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 23,
2022. 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 and business outlook of the Company followed with a Q&A
session.
Analysts and institutional investors may participate in the
conference call by registering at:
https://register.vevent.com/register/BIadf79c13ba63410187ba354842c0be45 at
least one hour before the scheduled start time. A return
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 http://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 team 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
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 China Yuchai's
and the joint venture's 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 it is
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 six months
ended December 31, 2022 and 2021
(RMB and US$ amounts expressed in thousands)
|
|
|
Second Half of 2022
|
Second Half of 2021
|
|
|
RMB
'000
|
US$
'000
|
RMB
'000
|
US$
'000
|
Revenue
|
7,462,131
|
1,071,437
|
8,636,804
|
1,240,101
|
Cost of
sales
|
(6,192,112)
|
(889,084)
|
(7,308,512)
|
(1,049,380)
|
Gross profit
|
1,270,019
|
182,353
|
1,328,292
|
190,721
|
Other operating income,
net
|
251,264
|
36,077
|
204,487
|
29,361
|
Research and
development expenses
|
(427,957)
|
(61,447)
|
(533,116)
|
(76,547)
|
Selling, general and
administrative expenses
|
(862,073)
|
(123,780)
|
(835,899)
|
(120,021)
|
Operating
profit
|
231,253
|
33,203
|
163,764
|
23,514
|
Finance
costs
|
(40,241)
|
(5,778)
|
(47,518)
|
(6,823)
|
Share of results of
associates and joint ventures
|
1,849
|
265
|
(108,377)
|
(15,561)
|
Profit before
tax
|
192,861
|
27,690
|
7,869
|
1,130
|
Income tax
(expense)/credit
|
(2,578)
|
(370)
|
42,435
|
6,093
|
Profit for the
period
|
190,283
|
27,320
|
50,304
|
7,223
|
Attributable
to:
|
|
|
|
|
Equity holders of the
Company
|
124,857
|
17,926
|
18,966
|
2,723
|
Non-controlling
interests
|
65,426
|
9,394
|
31,338
|
4,500
|
|
190,283
|
27,320
|
50,304
|
7,223
|
Net earnings per common
share
|
|
|
|
|
- Basic
|
3.06
|
0.44
|
0.46
|
0.07
|
- Diluted
|
3.06
|
0.44
|
0.46
|
0.07
|
Unit sales
|
140,345
|
|
171,449
|
|
CHINA YUCHAI
INTERNATIONAL LIMITED
UNAUDITED
CONSOLIDATED INCOME STATEMENTS
For the years ended
December 31, 2022 and 2021
(RMB and US$ amounts
expressed in thousands, except per share data)
|
|
|
December 31, 2022
|
December 31, 2021
|
|
|
RMB
'000
|
US$
'000
|
RMB
'000
|
US$
'000
|
Revenue
|
16,030,636
|
2,301,731
|
21,265,930
|
3,053,432
|
Cost of
sales
|
(13,399,986)
|
(1,924,014)
|
(18,313,817)
|
(2,629,558)
|
Gross profit
|
2,630,650
|
377,717
|
2,952,113
|
423,874
|
Other operating income,
net
|
336,756
|
48,353
|
316,189
|
45,399
|
Research and
development expenses
|
(836,438)
|
(120,098)
|
(848,812)
|
(121,875)
|
Selling, general and
administrative expenses
|
(1,611,677)
|
(231,411)
|
(1,755,957)
|
(252,127)
|
Operating
profit
|
519,291
|
74,561
|
663,533
|
95,271
|
Finance
costs
|
(95,472)
|
(13,708)
|
(115,928)
|
(16,645)
|
Share of results of
associates and joint
ventures
|
(29,093)
|
(4,177)
|
(95,895)
|
(13,769)
|
Profit before
tax
|
394,726
|
56,676
|
451,710
|
64,857
|
Income tax
expense
|
(59,065)
|
(8,481)
|
(43,816)
|
(6,291)
|
Profit for the
period
|
335,661
|
48,195
|
407,894
|
58,566
|
Attributable
to:
|
|
|
|
|
Equity holders of the
Company
|
218,581
|
31,384
|
272,673
|
39,151
|
Non-controlling
interests
|
117,080
|
16,811
|
135,221
|
19,415
|
|
335,661
|
48,195
|
407,894
|
58,566
|
Net earnings per common
share
|
|
|
|
|
- Basic
|
5.35
|
0.77
|
6.67
|
0.96
|
- Diluted
|
5.35
|
0.77
|
6.67
|
0.96
|
Unit sales
|
321,256
|
|
456,791
|
|
CHINA YUCHAI
INTERNATIONAL LIMITED
SELECTED UNAUDITED
CONSOLIDATED BALANCE SHEET ITEMS
For the years ended
December 31, 2022 and December 31, 2021
(RMB and US$ amounts
expressed in thousands)
|
|
|
December 31,
2022
|
December 31, 2021
|
|
RMB
'000
|
US$
'000
|
RMB
'000
|
Cash and bank
balances
|
4,850,743
|
696,486
|
5,331,555
|
*Trade and bills
receivables
|
6,792,958
|
975,355
|
6,837,118
|
Inventories
|
4,937,755
|
708,979
|
5,208,636
|
Trade and bills
payables
|
6,919,421
|
993,513
|
7,361,817
|
Short-term and
long-term loans and borrowings
|
2,341,432
|
336,190
|
2,203,000
|
Equity attributable to equity holders of the
Company
|
9,008,946
|
1,293,534
|
8,859,152
|
|
*Comparatives
The Group enters into
contractual arrangements with certain customers that entitle them
to sales rebates
based on sales volume
achieved in the financial year. The management has determined
that it is more
appropriate to net such
sales rebates with the receivables due from these customers in the
same financial
year. Where
receivables have been settled, such sales rebates will then be
classified as refund liabilities.
Accordingly, the
comparative figures in the balance sheet as of December 31, 2021
had been adjusted to
conform with current's
year presentation. The changes to 2021 comparatives have no
impact on the income
statement, net current
assets and net assets of the Group.
|
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SOURCE China Yuchai International Limited