China Yuchai International Announces Unaudited 2024 Second Half-Year and Full Year Financial Results

Core Viewpoint - China Yuchai International Limited reported its unaudited consolidated financial results for the second half of 2024 and the fiscal year 2024, highlighting a mixed performance with increased engine sales but a decline in operating profit and net profit compared to the previous year [1][2]. Financial Highlights for 2H 2024 - Revenue for 2H 2024 was RMB 8.8 billion (US$1.2 billion), slightly down from RMB 8.9 billion in 2H 2023 [3]. - The total number of engines sold increased by 10.9$ 195.7 million), with a gross margin of 15.9% compared to 13.9% in 2H 2023 [5]. - Other operating income increased by 31.2% to RMB 401.5 million (US 55.9 million) due to higher government grants and technology licensing fees [6]. - R&D expenses increased by 25.6% to RMB 591.1 million (US 82.2 million), representing 8.2% of revenue [7]. - SG&A expenses rose by 25.1% to RMB 1.1 billion (US$147.0 million), accounting for 12.0$ 22.3 million) with an operating margin of 1.8% [9]. - Net profit attributable to equity holders was RMB 82.7 million (US$11.5 million), down from RMB 107.1 million in 2H 2023 [11][12]. Financial Highlights for FY 2024 - Revenue for FY 2024 was RMB 19.1 billion (US$ 2.7 billion), an increase from RMB 18.0 billion in FY 2023 [14]. - The total number of engines sold increased by 13.7% to 356,586 units compared to 313,493 units in FY 2023 [15]. - Gross profit increased by 10.8% to RMB 2.8 billion (US$392.1 million), with a gross margin of 14.7$ 80.1 million) [17]. - R&D expenses increased by 12.3% to RMB 984.7 million (US$137.0 million), representing 6.2$ 252.1 million), representing 9.5% of revenue [19]. - Operating profit was RMB 597.0 million (US$83.0 million), down from RMB 609.4 million in FY 2023 [19]. - Net profit attributable to equity holders was RMB 323.1 million (US$ 44.9 million), compared to RMB 285.5 million in FY 2023 [22]. - Basic and diluted earnings per share increased by 17.5% to RMB 8.21 (US$1.14) from RMB 6.99 in FY 2023 [22]. Balance Sheet Highlights - As of December 31, 2024, cash and bank balances were RMB 6.4 billion (US$ 895.0 million) compared to RMB 6.0 billion at the end of FY 2023 [26]. - Trade and bills receivables were RMB 8.8 billion (US$1.2 billion) compared to RMB 7.8 billion at the end of FY 2023 [26]. - Inventories were RMB 4.7 billion (US$ 647.5 million) compared to RMB 4.6 billion at the end of FY 2023 [26]. - Trade and bills payables were RMB 8.5 billion (US$1.2 billion) compared to RMB 7.6 billion at the end of FY 2023 [26]. - Short-term and long-term loans and borrowings remained stable at RMB 2.5 billion (US$ 349.1 million) [26]. Management Commentary - The President of China Yuchai highlighted profitable sales growth and free cash flow generation, with on-road engine sales outperforming the overall Chinese truck and bus vehicle markets [25]. - The company is expanding its joint venture with MTU Yuchai and enhancing its product portfolio to meet increasing demand, particularly in power generation [25]. - A share buyback program was initiated, repurchasing 3.3 million shares for a total of US$ 39.8 million [25].