Company Overview - China Yuchai International Limited is one of the largest powertrain solution manufacturers in China, primarily through its subsidiary Guangxi Yuchai Machinery Company Limited [1][3] - Yuchai specializes in the design, manufacture, assembly, and sale of a variety of engines for trucks, buses, and other applications, including diesel, natural gas, and new energy products [3] Recent Developments - Yuchai Foundry commenced the shipment of its first batch of 30,000 high-end cylinder head castings to a German customer, marking a significant recognition of its product quality [1] - The production process for these castings utilized special alloys and vermicular iron thermal analysis technology to meet stringent German technical standards [2] Market Position - In 2024, Yuchai sold 356,586 engines, reinforcing its position as a leading manufacturer and distributor of engines in China [3] - The company has established a strong brand reputation and significant market share, supported by a robust research and development team [3]

Financial Data and Key Metrics Changes - Revenue increased by 34% year over year to RMB 13.8 billion or $1.9 billion [7] - Gross profit rose by 30.3% year over year to RMB 1.8 billion or $257 million [7] - Operating profit increased by 42.3% year over year [7] - Profit attributable to equity holders rose by 52.2% year over year [21] - Earnings per share increased by 65.8% year over year to RMB 9.75 or $1.36 [22] Business Line Data and Key Metrics Changes - Truck and bus engine unit sales rose by 38% year over year [15] - Truck engine sales increased by 44.3% year over year, while heavy-duty truck market unit sales declined by 2.8% [8][16] - Overall bus engine unit sales increased by 8.9% year over year, contrasting with a 7.5% decline in the overall market [10][17] - Off-road market unit sales increased by 17.5% year over year, driven by a 31.5% increase in marine and power generation engine sales [10][18] Market Data and Key Metrics Changes - The truck and bus unit market sales, excluding gasoline and electric vehicles, declined by 2.6% year on year [8] - The heavy-duty truck segment experienced a negative growth of 2.8% year over year [9] - The overall market for daily duty bus unit sales declined by 30.5% [10] Company Strategy and Development Direction - The company views international markets, particularly the ASEAN region, as important drivers for future sales growth [13] - The company is enhancing its power generation business to service additional customers and application requirements [11] - Research and development is focused on new energy products, including alternative fuels such as hydrogen and methanol [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future revenue, profits, and cash flow generation, as evidenced by a cash dividend of $50 per share [13] - The company is optimistic about maintaining its market share in the data center engine segment, which is currently above 10% [33] - Management noted that the demand for data center engines is strong, and they are cautious about expanding capacity due to market dynamics [58] Other Important Information - Cash and bank balances increased to RMB 7.8 billion or $1.1 billion [22] - Research and development expenses increased to RMB 551.7 million or $37.1 million, representing 4% of revenue [19] - Selling, general, and administrative expenses increased by 37.4% to RMB 962.5 million or $134.5 million [20] Q&A Session Summary Question: Plans to raise capacity for the joint venture - Management indicated sufficient capacity exists but is limited by component supply from Germany [27][28] Question: Guidance for full year unit sales - Management stated they do not provide guidance on unit sales [29] Question: Market share in long bore engines for data centers - Management confirmed market share is above 10% and expects to maintain it [32][33] Question: Initiatives to improve net return - Management did not provide a specific target date for net return improvement [34] Question: Average selling price increase for data center engines - Management noted no significant increase in average selling price for the first half [38][40] Question: Expansion from engine making to generation making - Management clarified they prefer not to compete with OEM customers in this area [41] Question: Reasons for strong market share in on-highway engines - Management attributed strong market share to new customers and successful product introductions [46][49] Question: Plans for capital operations or shareholder returns - Management indicated no specific plans for capital operations but noted a good track record of dividend payments [50][87] Question: Capacity for data center engines - Management confirmed a 30% increase in capacity by the end of the year [55][57] Question: Order visibility and delivery timelines - Management stated they have a full order book for the year and are starting to receive orders for 2026 [100]

Company Overview - China Yuchai International Limited (CYD) holds a 76.4% equity interest in Guangxi Yuchai Machinery Company Limited (GYMCL)[9] - Yuchai has a total engine production capacity of 600,000 units per annum[11] - Yuchai has over 3,000 domestic service stations throughout China[11] Market and Sales - China's GDP is targeted to grow approximately 5% for 2025[20] - In 2024, commercial vehicle industry unit sales reached 1 million, a YoY decrease of 9.9%[20] - In 2024, total truck sales increased by 15% YoY, with the HD segment accounting for 43% of total truck sales[24] - In 2024, total bus sales approximated 300,000 units, an increase of 28% YoY[24] - China Yuchai's total unit sales in 2024 (excluding NEV) were 344,486 units[31] Financial Performance - In 2024, the company's revenue reached RMB 19.1 billion[128] - The gross profit percentage in 2024 was 14.7%[136] - The profit after tax in 2024 was RMB 0.5 billion[136] - As of 2024, the company's cash and bank balance was RMB 6.4 billion[137] - In 2024, a share buyback was conducted for approximately US$ 39.8 million[142]

Group 1 - China Yuchai International Limited declared a cash dividend of US$0.53 per ordinary share for the year ended December 31, 2024, to be paid on July 7, 2025, to shareholders of record as of June 25, 2025 [1] - The company is a leading powertrain solution provider in China, primarily through its subsidiary Guangxi Yuchai Machinery Company Limited, which specializes in various engine types for multiple applications [2] - In 2024, Yuchai sold a total of 356,586 engines, including diesel, natural gas, and new energy products such as pure electric and hybrid engines [2]

Group 1 - China Yuchai (CYD) is a notable stock in the Auto-Tires-Trucks sector, currently outperforming its peers with a year-to-date return of approximately 62.5% compared to the sector's average return of -20.1% [4] - The Zacks Rank for China Yuchai is 1 (Strong Buy), indicating strong analyst sentiment and an improving earnings outlook, with a consensus estimate for full-year earnings having increased by 19.1% in the past quarter [3][4] - The Automotive - Original Equipment industry, to which China Yuchai belongs, has an average loss of 6.9% this year, further highlighting CYD's superior performance within its industry [6] Group 2 - Xos, Inc. (XOS) is another stock in the Auto-Tires-Trucks sector that has shown strong performance, with a year-to-date return of 19.8% and a Zacks Rank of 2 (Buy) [5] - The Automotive - Domestic industry, which includes Xos, has experienced a decline of 27% this year, indicating that XOS is also outperforming its industry despite the overall negative trend [6]

Part I [Key Information](index=7&type=section&id=Item%203.%20Key%20Information) The company faces principal risks from its dependence on the Chinese economy, evolving NEV policies, supply chain reliance, and potential U.S. delisting - The company's business heavily relies on the Chinese economy and government policies, especially regarding emissions standards and New Energy Vehicles (NEVs)[32](index=32&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) - Sales to the **top five customers** constituted **39.1% of total revenue** in 2024, with the largest customer group contributing **16.2%**[42](index=42&type=chunk) - China's transition to NEVs poses a significant competitive threat, with **12.9 million NEV units sold** in 2024, representing **40.9% of total vehicle sales**[51](index=51&type=chunk) - The company faces risks from PRC regulations on overseas listings and stringent cybersecurity laws (CSL, DSL, PIPL) impacting data handling[92](index=92&type=chunk)[140](index=140&type=chunk) - The Holding Foreign Companies Accountable Act (HFCAA) poses a delisting risk if PCAOB inspections are hindered, though 2022 inspections vacated prior negative determinations[147](index=147&type=chunk)[150](index=150&type=chunk) [Information on the Company](index=49&type=section&id=Item%204.%20Information%20on%20the%20Company) CYI is a Bermuda-based holding company primarily owning a 76.4% stake in Yuchai, a leading Chinese powertrain manufacturer expanding into new energy products and international markets - The company's primary operating asset is its **76.4% ownership** in Guangxi Yuchai Machinery Company Limited (Yuchai)[153](index=153&type=chunk)[156](index=156&type=chunk) - Yuchai is expanding its new energy product portfolio, including hydrogen combustion engines, range extenders, and full electric power systems, via its subsidiary Yuchai Simlan[173](index=173&type=chunk)[183](index=183&type=chunk)[190](index=190&type=chunk) Yuchai Engine Sales Breakdown (2022-2024) | Product Category | 2022 Units Sold | 2023 Units Sold | 2024 Units Sold | % Change (2024 vs 2023) | | :--- | :--- | :--- | :--- | :--- | | Light-duty engines | 94,340 | 72,875 | 101,676 | +39.5% | | Medium-duty engines | 162,018 | 169,498 | 164,986 | -2.7% | | Heavy-duty engines | 58,336 | 62,611 | 76,002 | +21.4% | | **Total Engines Sold** | **321,256** | **313,493** | **356,586** | **+13.7%** | - Yuchai possesses a total production capacity of approximately **633,000 units per year**, with an additional **30,000 units** for new energy products, and commenced operations at a new Thailand factory in 2024[203](index=203&type=chunk)[205](index=205&type=chunk) - In 2024, Yuchai signed a 15-year technology licensing agreement with Vietnam's Kim Long Motor for **US$28 million** in total fees[222](index=222&type=chunk) [Operating and Financial Review and Prospects](index=79&type=section&id=Item%205.%20Operating%20and%20Financial%20Review%20and%20Prospects) In FY2024, revenue grew 6.0% to RMB 19.1 billion, driven by a 13.7% increase in engine sales, leading to improved gross margin and a 13.1% rise in net profit Key Financial Performance (2023 vs. 2024) | Metric | 2023 (RMB'000) | 2024 (RMB'000) | % Change | | :--- | :--- | :--- | :--- | | Revenue | 18,046,349 | 19,133,575 | +6.0% | | Gross Profit | 2,543,473 | 2,818,501 | +10.8% | | Operating Profit | 609,449 | 596,974 | -2.0% | | Profit for the year | 422,856 | 491,742 | +16.3% | | Profit Attributable to Equity Holders | 285,518 | 323,055 | +13.1% | | Basic EPS (RMB) | 6.99 | 8.21 | +17.5% | Cash Flow Summary (2024) | Cash Flow Item | Amount (RMB'000) | | :--- | :--- | | Net cash from operating activities | 779,416 | | Net cash from investing activities | 113,101 | | Net cash used in financing activities | (526,635) | - Capital expenditures in 2024 totaled **RMB 537.9 million**, primarily for expanding and upgrading Yuchai's production capacity and technology development[308](index=308&type=chunk) - The company has significant off-balance sheet arrangements, including **RMB 1.0 billion** in discounted bills receivable with recourse and **RMB 1.4 billion** in endorsed bills to suppliers with recourse as of December 31, 2024[311](index=311&type=chunk)[312](index=312&type=chunk) [Directors, Senior Management and Employees](index=94&type=section&id=Item%206.%20Directors,%20Senior%20Management%20and%20Employees) The company's Board comprises nine members, with majority designation by Hong Leong Asia, and its 2014 Equity Incentive Plan expired, while new equity schemes diluted subsidiary interests - The Board of Directors consists of **nine members**, with the controlling shareholder, Hong Leong Asia, having the right to elect a majority via a special share[315](index=315&type=chunk) - The company's 2014 Equity Incentive Plan expired in May 2024, with all **270,000 outstanding options** expiring unexercised in July 2024[359](index=359&type=chunk)[364](index=364&type=chunk) - In 2024, new equity schemes at Yuchai and MGP diluted Yuchai's interest in MGP from **100% to 93.46%**, and the company's effective interest in MGP from **76.4% to 71.4%**[96](index=96&type=chunk)[97](index=97&type=chunk) Employee Count by Location | As of December 31, | Singapore | PRC | Others | Total | | :--- | :--- | :--- | :--- | :--- | | 2022 | 15 | 8,583 | 122 | 8,720 | | 2023 | 15 | 8,036 | 126 | 8,177 | | 2024 | 15 | 8,802 | 113 | 8,930 | [Major Shareholders and Related Party Transactions](index=110&type=section&id=Item%207.%20Major%20Shareholders%20and%20Related%20Party%20Transactions) Hong Leong Asia is the controlling shareholder with 48.70% ownership and a special share, while significant related party transactions occur with the GY Group and its affiliates Major Shareholders (as of Dec 31, 2024) | Identity of Person or Group | Number of Shares | Percentage | | :--- | :--- | :--- | | Hong Leong Asia Ltd | 18,270,965 | 48.70 % | | Coomber Investments Limited | 7,537,160 | 20.10 % | | Shah Capital Management | 4,345,471 | 11.58 % | - A special share held by a Hong Leong Asia affiliate grants the right to elect a majority of directors and provides veto power over shareholder resolutions[379](index=379&type=chunk) - Significant related party transactions with the GY Group and its affiliates included **RMB 2.1 billion** in engine and parts sales and **RMB 1.9 billion** in parts and supplies purchases in 2024[390](index=390&type=chunk)[869](index=869&type=chunk) - The company charges Yuchai an annual management and consulting fee, which was **US$1.0 million** plus a supplemental fee of **RMB 6 million** for fiscal year 2023[354](index=354&type=chunk)[388](index=388&type=chunk) [Financial Information](index=116&type=section&id=Item%208.%20Financial%20Information) This section covers legal proceedings, particularly historical disputes with Yuchai's minority shareholder, and details the company's dividend distributions, primarily sourced from Yuchai - The company has engaged in past legal proceedings with Yuchai and the GY Group over corporate governance, now intended to be managed via Reorganization and Cooperation Agreements[395](index=395&type=chunk)[396](index=396&type=chunk) Dividend History (2020-2024) | Fiscal Year | Dividend paid by Company (per share) | Dividend paid/payable by Yuchai to Company (RMB'000) | | :--- | :--- | :--- | | 2020 | US$ 1.70 | 151,796 | | 2021 | US$ 0.40 | 115,654 | | 2022 | US$ 0.28 | 155,411 | | 2023 | US$ 0.38 | 191,553 | | 2024 | - | (Approved for payment) | - Dividends from Yuchai are subject to PRC regulations, requiring tax liabilities and statutory reserve contributions, and are subject to a **10% withholding tax** for the company as a non-resident enterprise[398](index=398&type=chunk)[466](index=466&type=chunk) [Additional Information](index=119&type=section&id=Item%2010.%20Additional%20Information) As a foreign private issuer, the company's corporate governance differs from NYSE standards, and it is subject to exchange controls in Bermuda and China, with specific tax implications across Bermuda, Singapore, PRC, and U.S. jurisdictions - As a foreign private issuer, the company is exempt from certain NYSE corporate governance rules, including requirements for a majority of independent directors or fully independent committees[407](index=407&type=chunk)[423](index=423&type=chunk) - The company is non-resident for Bermuda exchange control, allowing free fund transfers, but its Chinese subsidiary Yuchai is subject to PRC foreign exchange controls on currency conversion and remittance[445](index=445&type=chunk)[448](index=448&type=chunk) - Under PRC tax law, dividends from Yuchai are subject to a **10% withholding tax**, while Yuchai benefits from a reduced **15% Enterprise Income Tax rate** under the High Technology Incentive Scheme[466](index=466&type=chunk)[476](index=476&type=chunk) - For U.S. federal income tax purposes, the company believes it was not a Passive Foreign Investment Company (PFIC) for 2024, though this status is subject to annual re-evaluation[495](index=495&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=143&type=section&id=Item%2011.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to interest rate risk from variable-rate borrowings and foreign currency risk from various currencies, managing these through debt mix and derivative instruments - A **50 basis point change** in interest rates would impact the company's profit before tax by approximately **RMB 12.5 million (US$1.7 million)** for 2024[509](index=509&type=chunk) Foreign Currency Exposure (Net Assets/Liabilities) as of Dec 31, 2024 | Currency | Net Exposure (RMB'000) | | :--- | :--- | | Singapore Dollar | 126,011 | | Euro | 7,687 | | US Dollar | 69,047 | | Others | (3,438) | Foreign Currency Sensitivity (Impact on Profit Before Tax from 10% Strengthening) | Currency | 2024 Impact (RMB'000) | | :--- | :--- | | Singapore Dollar | 12,601 | | Euro | 769 | | US Dollar | 6,905 | Part II [Controls and Procedures](index=85&type=section&id=Item%2015.%20Controls%20and%20Procedures) Management and the independent auditor concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2024 - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2024[521](index=521&type=chunk) - Based on the COSO 2013 framework, management concluded that the company's internal control over financial reporting was effective as of December 31, 2024[525](index=525&type=chunk) - The independent registered public accounting firm provided an unqualified attestation report on the effectiveness of the company's internal control over financial reporting as of December 31, 2024[526](index=526&type=chunk) [Corporate Governance and Other Matters](index=86&type=section&id=Item%2016.%20Corporate%20Governance%20and%20Other%20Matters) This section details corporate governance, including the audit committee financial expert, Code of Conduct, a terminated share buyback plan, and cybersecurity risk management oversight Principal Accountant Fees (2023-2024) | Fee Type | 2023 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Audit fees | 8,426 | 10,613 | | Audit-related fees | 352 | 216 | | Tax fees | 173 | 10 | | All other fees | 224 | 432 | | **Total** | **9,174** | **11,271** | - The company adopted and terminated a share buyback plan in 2024, repurchasing **3.34 million shares** for approximately **US$39.8 million**[538](index=538&type=chunk)[539](index=539&type=chunk) - The company maintains a cybersecurity risk management program, with the Audit Committee providing oversight and management responsible for assessment and implementation guided by PRC laws[545](index=545&type=chunk)[546](index=546&type=chunk)[551](index=551&type=chunk) Part III [Financial Statements](index=90&type=section&id=Item%2018.%20Financial%20Statements) This section presents the audited consolidated financial statements for 2022-2024, with an unqualified auditor opinion, noting a critical audit matter regarding development cost capitalization and a reclassification of warranty expenses - The independent auditor, Ernst & Young LLP, issued an unqualified opinion on the consolidated financial statements and internal control over financial reporting as of December 31, 2024[565](index=565&type=chunk)[572](index=572&type=chunk) - A critical audit matter was identified concerning the capitalization of development costs, totaling **RMB 204.3 million** in 2024, due to complex management judgment in qualifying activities and expenses[569](index=569&type=chunk)[571](index=571&type=chunk) Consolidated Statement of Financial Position (Abridged) | Metric (RMB'000) | Dec 31, 2023 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | 25,757,618 | 27,048,094 | | Total Liabilities | 13,581,993 | 14,748,529 | | Total Equity | 12,175,625 | 12,299,565 | | - Equity attributable to equity holders | 9,226,528 | 9,164,625 | - Assurance-type warranty expenses were reclassified from selling, general and administrative expenses to cost of sales for 2024, with comparative figures adjusted accordingly and no impact on operating profit[270](index=270&type=chunk)[912](index=912&type=chunk)

Financial Data and Key Metrics Changes - The company reported a revenue increase of 6% year over year to RMB 19.1 billion or $2.7 billion for the fiscal year 2024, compared to RMB 18 billion in 2023 [21] - Gross profit rose by 10.8% to RMB 2.8 billion or $392.1 million, with a gross margin increase to 14.4% from 14.1% in the previous year [22] - Net profit attributable to shareholders increased to RMB 323.1 million or $44.9 million, compared to RMB 285.5 million in FY2023 [25] Business Line Data and Key Metrics Changes - Truck and bus engine sales increased by 17.2% year over year for FY2024, while agricultural engine sales remained flat and industrial engine sales rose by 11% [5][7] - Marine and genset engine sales saw a significant increase of 25.5% year over year [7] - The total number of engines sold in FY2024 increased by 13.7% to 356,586 units compared to 313,493 units in FY2023 [21] Market Data and Key Metrics Changes - The Chinese truck and bus vehicle market experienced a 9.9% year-over-year decline in sales, while the company’s truck and bus engine sales outperformed this trend [5] - The overall operating environment in China was challenging, with GDP growth of 5% year over year in 2024 [11] Company Strategy and Development Direction - The company is focusing on enhancing manufacturing capabilities in Thailand for diesel engines and has entered a strategic cooperation agreement with Kimlong Motor in Vietnam for technology licensing [10] - Investment in research and development (R&D) increased by 12.3% to RMB 984.7 million or $137 million, representing 6.2% of revenue, as the company continues to develop new energy products and improve engine efficiency [23][12] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth in the data center generator business, expecting at least a 30% growth in 2025 due to a full order book [35] - The company anticipates a significant increase in demand for its products, particularly in the data center segment, which is expected to impact revenue positively [55] Other Important Information - The company initiated its first share buyback plan, repurchasing 3.3 million shares for a total cost of $39.8 million, and paid a cash dividend of $0.38 per share [15] - R&D expenditures, including capitalized costs, were RMB 1.2 billion or $165.4 million for FY2024, reflecting a commitment to innovation and development [12] Q&A Session Summary Question: What were the sales figures for the data center generator business? - The MTU joint venture sold over 700 units, including various applications, while the GYN sold about 800 units [31] Question: What is the expected growth rate for the data center generator business in 2025? - The company expects a significant growth rate of at least 30% for both GYMCO and the MTU joint venture in 2025 [35] Question: Will the profit attributed to minorities remain high in the future? - Management noted that the performance of associate companies has improved significantly, contributing to higher profits attributed to minorities [37] Question: How will other operating income be treated in the future? - Other operating income is influenced by government grants and VAT rebates, and while some components may be recurring, it is subject to various factors [80][82] Question: Will there be a price increase for generators due to strong demand? - Management indicated that while there may be some improvement in pricing, there are no significant plans for immediate price increases [42] Question: What is the capacity expansion plan for 2025 and 2026? - The company plans to increase capacity by 35% to 40% in 2025, with further increases planned for 2026 [46]

China Yuchai International Limited (NYSE:CYD) Q2 2024 Earnings Conference Call August 12, 2024 8:00 AM ET Company Participants Kevin Theiss - Head, Investor Relations Weng Ming Hoh - President Choon Sen Loo - Chief Financial Officer Conference Call Participants Gary Nash - Nash Consulting Operator Good day, and thank you for standing by. Welcome to the China Yuchai International Limited First Half 2024 Financial Results Conference call. At this time, all participants are in a listen-only mode. After the spe ...

Table of Contents Title of Each ClassTrading Symbol(s) Name of Each Exchange on Which Registered Common Stock, par value US$0.10 per Share CYD The New York Stock Exchange Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRA ...

China Yuchai International Limited (NYSE:CYD) Second Half and Full Year 2023 Earnings Conference Call February 27, 2024 8:00 AM ET Company Participants Kevin Theiss - Head, Investor Relations Weng Ming Hoh - President Choon Sen Loo - Chief Financial Officer Conference Call Participants William Gregozeski - Greenridge Global Operator Good day and thank you for standing by. Welcome to China Yuchai International Limited Second-Half and Fiscal Year 2023 Financial Results Conference Call. At this time all partic ...