Click here to close now.

SYS-CON MEDIA Authors: Liz McMillan, Pat Romanski, Carmen Gonzalez, Kevin Jackson, Peter Silva

News Feed Item

China Yuchai International Announces Unaudited Second Quarter 2014 Financial Results

SINGAPORE, Aug. 11, 2014 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company"), a leading manufacturer and distributor of engines for on-road 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 second quarter and first six months ended June 30, 2014. The term "engine" as used in this announcement covers diesel, natural gas and hybrid engines for on- and off-road applications. The financial information presented herein for the second quarter of 2014 and 2013 is reported using International Financial Reporting Standards as issued by the International Accounting Standards Board.

Financial highlights for the second quarter of 2014

  • Revenue was  RMB 4.2 billion (US$684.6 million) which was similar to the second quarter of 2013;
  • Gross profit was RMB 816.8 million (US$132.8 million), a 19.4% gross margin compared with RMB 810.8 million and a gross margin of 19.3% in the second quarter of 2013;
  • Operating profit was RMB 327.2 million (US$53.2 million) compared with RMB 333.8 million in the same quarter a year ago;
  • Net earnings attributable to China Yuchai's shareholders were RMB 165.4 million (US$26.9 million) compared with RMB 166.3 million in the second quarter of 2013; 
  • Earnings per share was RMB 4.44 (US$0.72) compared with RMB 4.46 for the same quarter in 2013;
  • Total number of engines sold was 127,799 units compared with 141,147 units in the second quarter of 2013.

Unaudited Second Quarter 2014 Results

Revenue for the second quarter of 2014 was RMB 4.2 billion (US$684.6 million) which was similar to the second quarter of 2013.  

The total number of engines sold by GYMCL during the second quarter of 2014 was 127,799 units compared with 141,147 units in the same quarter in 2013, a 9.5% decrease which compared favorably with the industry decline of 13.7% in unit sales of commercial vehicles (excluding gasoline-powered vehicles) in the second quarter of 2014, as reported by the China Association of Automobile Manufacturers ("CAAM").

Gross profit was RMB 816.8 million (US$132.8 million) compared with RMB 810.8 million in the second quarter of 2013. Gross margin increased to 19.4% in the second quarter of 2014 compared with 19.3% a year ago.

Other operating income was RMB 12.0 million (US$2.0 million), compared with RMB 36.6 million in the second quarter of 2013. This decrease was mainly due to lower interest income from bank deposits and higher foreign exchange revaluation losses. In addition, there was a gain from the sale of assets in the second quarter of 2013.

Research and development ("R&D") expenses increased by 5.4% to RMB 122.2 million (US$19.9 million) from RMB 115.9 million in the second quarter of 2013. The increase was mainly due to the research and development of new engines as well as continued initiatives to improve engine performance and quality. As a percentage of revenue, R&D spending increased to 2.9% compared with 2.8% in the second quarter of 2013.

Selling, general and administrative ("SG&A") expenses were RMB 379.5 million (US$61.7 million), a reduction from RMB 397.7 million in the second quarter of 2013. The decline primarily resulted from lower freight expenditures as fewer units were shipped during the second quarter of 2014. SG&A expenses represented 9.0% of revenue compared with 9.5% in the same quarter a year ago. 

Operating profit declined to RMB 327.2 million (US$53.2 million) from RMB 333.8 million in the second quarter of 2013. The reduced operating profit was mainly due to lower other operating income and higher R&D expenses. The operating margin was 7.8% compared with 7.9% in the second quarter of 2013.

Finance costs decreased to RMB 30.7 million (US$5.0 million) from RMB 39.6 million in the second quarter of 2013, a decrease of RMB 8.9 million or 22.6%. This was mainly due to less bills discounting and lower interest costs from the issuance of three-year medium-term notes amounting to RMB 1 billion in May 2013 at a fixed annual interest rate of 4.69%.

The Company's share in the loss of joint ventures was RMB 9.0 million (US$1.5 million) compared with a loss of RMB 10.0 million in the second quarter of 2013.

For the quarter ended June 30, 2014, total net profit attributable to China Yuchai's shareholders was RMB 165.4 million (US$26.9 million), or earnings per share of RMB 4.44 (US$0.72), compared with RMB 166.3 million, or earnings per share of RMB 4.46 in the same quarter in 2013.

Financial highlights for the first six months ended June 30, 2014

  • Revenue increased by 9.4% to RMB 8.8 billion (US$1.4 billion) compared with RMB 8.0 billion in the same period last year;
  • Gross profit increased to RMB 1.6 billion (US$260.9 million), an 18.3% gross margin, compared with RMB 1.5 billion and a gross margin of 19.3% in the first six months of  2013;
  • Operating profit was RMB 673.9 million (US$109.5 million) compared with  RMB 672.7 million in the same period in 2013;
  • Earnings per share increased to RMB 9.27 (US$1.51) from RMB 9.12 in the same period a year ago;
  • Total number of engines sold was 279,708 units compared with 271,891 units in the same period of 2013.

Revenue was RMB 8.8 billion (US$1.4 billion) compared with RMB 8.0 billion in the same period last year. The increase in revenue was RMB 752.0 million, or 9.4% as compared with the same six-month period in 2013.

The total number of diesel engines sold by GYMCL was 279,708 units compared with 271,891 units in the same period of 2013, representing an increase of 7,817 units, or 2.9%. This increase compares favorably with the industry sales decrease of 5.2% in commercial vehicle units (excluding gasoline-powered vehicles) in the first six months of 2014, as reported by CAAM. Higher engine sales were mainly attributable to increased sales to the heavy-duty truck and natural gas engine markets and increased engine sales for agricultural applications in the first half of 2014.

Gross profit was RMB 1.6 billion (US$260.9 million) compared with RMB 1.5 billion in the same period last year. Gross margin decreased to 18.3% as compared with 19.3% a year ago. This decline was mainly attributable to a shift in the sales mix to higher engine sales for agriculture applications and lower bus sales.   

Other operating income was RMB 41.5 million (US$6.8 million), a decrease of RMB 16.0 million from RMB 57.5 million in the same period last year. This decrease was mainly due to lower interest income from bank deposits offset by lower foreign exchange revaluation losses.  In addition, there was a gain from the sale of assets in the same period last year.  

Research and development ("R&D") expenses were RMB 227.1 million (US$36.9 million) compared with RMB 210.7 million in the same period in 2013, an increase of 7.8%. The increase in R&D expenses was mainly related to higher spending in the research and development of new engines and ongoing initiatives to improve engine quality. As a percentage of revenue, R&D spending was 2.6% in the first six months of both 2014 and 2013.

Selling, general & administrative ("SG&A") expenses were RMB 745.7 million (US$121.2 million), up from RMB 722.0 million in the same period last year, an increase of RMB 23.7 million or 3.3%. The increase in expenses was mainly due to higher unit sales in the first six months of 2014 as compared with the same period in 2013. SG&A expenses represented 8.5% of revenue for the first six months of 2014, compared with 9.0% in the same period last year.

Operating profit increased to RMB 673.9 million (US$109.5 million) from RMB 672.7 million in the same period last year, mainly due to an increase in gross profit partially offset by higher R&D and SG&A expenses. The operating margin was 7.7% compared with 8.4% in the same period last year.

Finance costs declined to RMB 68.5 million (US$11.1 million) from RMB 73.8 million in the same period last year, a decrease of RMB 5.3 million or 7.2%. The decrease was primarily attributable to less bills discounting and lower interest costs from the issuance of three-year medium-term notes amounting to RMB 1 billion in May 2013 at a fixed annual interest rate of 4.69%.

The Company's share in the loss of joint ventures was RMB 24.2 million (US$3.9 million) compared with a loss of RMB 25.7 million in the same period in 2013.

For the six months ended June 30, 2014, total net profit attributable to China Yuchai's shareholders was RMB 345.3 million (US$56.1 million), or earnings per share of RMB 9.27 (US$1.51), compared with RMB 339.8 million, or earnings per share of RMB 9.12 in the same period in 2013.

Balance Sheet Highlights as at June 30, 2014

  • Cash and bank balances were RMB 2.4 billion (US$385.6 million) compared with RMB 3.6 billion at the end of 2013;
  • Trade and bills receivables were RMB 8.5 billion (US$1.4 billion) compared with RMB 7.4 billion at the end of 2013; 
  • Short-term and long-term interest-bearing loans and borrowings were RMB 2.1 billion (US$343.1 million) compared with RMB 2.3 billion at the end of 2013;
  • Inventories were RMB 2.2 billion (US$355.9 million) compared with RMB 2.3 billion at the end of 2013.

Mr. Weng Ming Hoh, President of China Yuchai, commented, "We have improved our market position and shown our resilience in a difficult environment in China. We are pleased to report higher revenue in the first six months of 2014 as a result of increased engine sales to the off-road market, namely the agriculture, marine and power generation segments. We are encouraged by the continued demand for our natural gas engines as well as National IV compliant diesel engines. Due to the change in our product mix, our gross margin has improved compared to the first quarter of 2014. We continue to focus our research and development efforts to build higher quality engines with enhanced performance and improved engine emissions which will help to strengthen our relationships with our customers."   

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 6.1528 = US$1.00, the rate quoted by the People's Bank of China at the close of business on June 30, 2014. 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, 2014 or at any other date.

Unaudited Second Quarter 2014 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 11, 2014. The call will be hosted by the President and Chief Financial Officer of China Yuchai, Mr. Weng Ming Hoh and Mr. Kok Ho Leong 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 dialing +1-866-519-4004 (United States), +800-930-346 (Hong Kong), 400-620-8038 (China) or +656-723-9381 (International), Conference Code: 71285626, 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 2013, GYMCL sold 500,756 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", "target", "optimistic", "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 are based on current expectations or beliefs, including, but not limited to, statements concerning the Company's operations, financial performance and condition. 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, including those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time. 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 / Dixon Chen
Grayling
Tel: +1-646-284-9409
Email: [email protected]
[email protected]

-- Tables Follow –

CHINA YUCHAI INTERNATIONAL LIMITED

UNAUDITED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS

For the quarters ended June 30, 2014 and 2013

(RMB and US$ amounts expressed in thousands, except per share data)




June 30, 2014

June 30, 2013


 RMB '000

 US$ '000

 RMB '000

 US$ '000

Revenue

4,212,298

684,615

4,207,482

683,832

Cost of goods sold

(3,395,460)

(551,856)

(3,396,703)

(552,058)

Gross profit

816,838

132,759

810,779

131,774

Other operating income

12,035

1,956

36,588

5,947

Research and development costs

(122,183)

(19,858)

(115,874)

(18,833)

Selling, distribution and administrative costs

(379,509)

(61,681)

(397,735)

(64,643)

Operating profit

327,181

53,176

333,758

54,245

Finance costs

(30,656)

(4,982)

(39,597)

(6,436)

Share of (loss)/profit of associates

(61)

(10)

112

18

Share of loss of joint ventures

(9,021)

(1,466)

(9,989)

(1,623)

Profit before tax

287,443

46,718

284,284

46,204

Income tax expense

(58,180)

(9,456)

(54,240)

(8,815)

Profit for the period

229,263

37,262

230,044

37,389






Attributable to:





Equity holders of the parent

165,361

26,876

166,280

27,026

Non-controlling interests

63,902

10,386

63,764



229,263

37,262

230,044


Net earnings per common share

4.44

0.72

4.46

0.73






Unit sales

127,799


141,147







 

CHINA YUCHAI INTERNATIONAL LIMITED

UNAUDITED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS

For the six months ended June 30, 2014 and 2013

(RMB and US$ amounts expressed in thousands, except per share data)



June 30, 2014

June 30, 2013


 RMB '000

 US$ '000

 RMB '000

 US$ '000

Revenue

8,763,058

1,424,239

8,011,034

1,302,014

Cost of goods sold

(7,157,867)

(1,163,351)

(6,463,099)

(1,050,432)

Gross profit

1,605,191

260,888

1,547,935

251,582

Other operating income

41,531

6,750

57,506

9,346

Research and development costs

(227,102)

(36,910)

(210,733)

(34,250)

Selling, distribution and administrative costs

(745,725)

(121,201)

(722,039)

(117,351)

Operating profit

673,895

109,527

672,669

109,327

Finance costs

(68,456)

(11,126)

(73,791)

(11,993)

Share of profit of associates

155

25

106

17

Share of loss of joint ventures

(24,191)

(3,932)

(25,747)

(4,185)

Profit before tax

581,403

94,494

573,237

93,166

Income tax expense

(114,361)

(18,587)

(110,646)

(17,983)

Profit for the period

467,042

75,907

462,591

75,183






Attributable to:





Equity holders of the parent

345,325

56,125

339,784

55,223

Non-controlling interests

121,717

19,782

122,807

19,960


467,042

75,907

462,591

75,183






Net earnings per common share

9.27

1.51

9.12

1.48






Unit sales

279,708


271,891







 

CHINA YUCHAI INTERNATIONAL LIMITED

SELECTED UNAUDITED CONSOLIDATED BALANCE SHEET ITEMS

(RMB and US$ amounts expressed in thousands)




As of June 30, 2014

As of December 31,
2013
(audited)


RMB'000

US$'000

RMB'000

Cash and bank balances

2,372,569

385,608

3,561,848

Trade and bills receivables

8,495,057

1,380,681

7,437,948

Inventories

2,189,499

355,854

2,334,052

Trade and bills payables

5,298,514

861,155

5,085,349

Short-term and long-term interest-bearing loans and borrowings

2,111,216

343,131

2,259,377

Equity attributable to equity holders of the parent

6,474,828

1,052,338

6,391,573

SOURCE China Yuchai International Limited

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the...
While not quite mainstream yet, WebRTC is starting to gain ground with Carriers, Enterprises and Independent Software Vendors (ISV’s) alike. WebRTC makes it easy for developers to add audio and video communications into their applications by using Web browsers as their platform. But like any market, every customer engagement has unique requirements, as well as constraints. And of course, one size does not fit all. In her session at WebRTC Summit, Dr. Natasha Tamaskar, Vice President, Head of C...
ProfitBricks, the provider of painless cloud infrastructure IaaS, today released its SDK for Ruby, written against the company's new RESTful API. The new SDK joins ProfitBricks' previously announced support for the popular multi-cloud open-source Fog project. This new Ruby SDK, which exposes advanced functionality to take advantage of ProfitBricks' simplicity and productivity, aligns with ProfitBricks' mission to provide a painless way to automate infrastructure in the cloud. Ruby is a genera...
DevOps tasked with driving success in the cloud need a solution to efficiently leverage multiple clouds while avoiding cloud lock-in. Flexiant today announces the commercial availability of Flexiant Concerto. With Flexiant Concerto, DevOps have cloud freedom to automate the build, deployment and operations of applications consistently across multiple clouds. Concerto is available through four disruptive pricing models aimed to deliver multi-cloud at a price point everyone can afford.
WebRTC is an up-and-coming standard that enables real-time voice and video to be directly embedded into browsers making the browser a primary user interface for communications and collaboration. WebRTC runs in a number of browsers today and is currently supported in over a billion installed browsers globally, across a range of platform OS and devices. Today, organizations that choose to deploy WebRTC applications and use a host machine that supports audio through USB or Bluetooth can use Plantro...
ProfitBricks has launched its new DevOps Central and REST API, along with support for three multi-cloud libraries and a Python SDK. This, combined with its already existing SOAP API and its new RESTful API, moves ProfitBricks into a position to better serve the DevOps community and provide the ability to automate cloud infrastructure in a multi-cloud world. Following this momentum, ProfitBricks has also introduced several libraries that enable developers to use their favorite language to code ...
What exactly is a cognitive application? In her session at 16th Cloud Expo, Ashley Hathaway, Product Manager at IBM Watson, will look at the services being offered by the IBM Watson Developer Cloud and what that means for developers and Big Data. She'll explore how IBM Watson and its partnerships will continue to grow and help define what it means to be a cognitive service, as well as take a look at the offerings on Bluemix. She will also check out how Watson and the Alchemy API team up to off...
The IoT Bootcamp is coming to Cloud Expo | @ThingsExpo on June 9-10 at the Javits Center in New York. Instructor. Registration is now available at http://iotbootcamp.sys-con.com/ Instructor Janakiram MSV previously taught the famously successful Multi-Cloud Bootcamp at Cloud Expo | @ThingsExpo in November in Santa Clara. Now he is expanding the focus to Janakiram is the founder and CTO of Get Cloud Ready Consulting, a niche Cloud Migration and Cloud Operations firm that recently got acquir...
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding bu...
As enterprises move to all-IP networks and cloud-based applications, communications service providers (CSPs) – facing increased competition from over-the-top providers delivering content via the Internet and independently of CSPs – must be able to offer seamless cloud-based communication and collaboration solutions that can scale for small, midsize, and large enterprises, as well as public sector organizations, in order to keep and grow market share. The latest version of Oracle Communications U...
SYS-CON Media announced today that @ThingsExpo Blog launched with 7,788 original stories. @ThingsExpo Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @ThingsExpo Blog can be bookmarked. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago.
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, will provide some practical insights on what, how and why when implementing "software-defined" in the dat...
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
Wearable technology was dominant at this year’s International Consumer Electronics Show (CES) , and MWC was no exception to this trend. New versions of favorites, such as the Samsung Gear (three new products were released: the Gear 2, the Gear 2 Neo and the Gear Fit), shared the limelight with new wearables like Pebble Time Steel (the new premium version of the company’s previously released smartwatch) and the LG Watch Urbane. The most dramatic difference at MWC was an emphasis on presenting we...
Chef and Canonical announced a partnership to integrate and distribute Chef with Ubuntu. Canonical is integrating the Chef automation platform with Canonical's Machine-As-A-Service (MAAS), enabling users to automate the provisioning, configuration and deployment of bare metal compute resources in the data center. Canonical is packaging Chef 12 server in upcoming distributions of its Ubuntu open source operating system and will provide commercial support for Chef within its user base.