SINGAPORE, Feb. 26, 2015 /PRNewswire/ -- China Yuchai
International Limited (NYSE: CYD) ("China Yuchai" or the
"Company"), a leading automotive manufacturer and distributor of
diesel 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, 2014. The financial
information presented herein for 2014 and 2013 is reported using
International Financial Reporting Standards ("IFRS") as issued by
the International Accounting Standards Board.
Financial Highlights for the Fourth Quarter of 2014
- Net revenue declined by 6.4% to RMB 3.9
billion (US$ 640.8 million)
compared with RMB 4.2 billion in the
fourth quarter of 2013;
- Gross profit was RMB 970.1
million (US$ 158.5 million),
with a gross margin of 24.7% compared with RMB 976.6 million and a gross margin of 23.3% in
the fourth quarter of 2013;
- Operating profit decreased 18.0% to RMB
391.1 million (US$ 63.9
million) compared with RMB 477.0
million in the same quarter of 2013;
- Earnings per share declined 7.4% to RMB
6.31 (US$ 1.03) compared with
RMB 6.82 in the fourth quarter of
2013;
- Total number of engines sold declined 15.8% to 93,094 units
compared with 110,583 units in the fourth quarter of 2013.
Net revenue for the fourth quarter of 2014 decreased by 6.4% to
RMB 3.9 billion (US$ 640.8 million) compared with RMB 4.2 billion in the fourth quarter of 2013.
The decrease in unit sales exceeded the decline in net revenue.
This was due to a higher proportion of National IV engine sales in
the fourth quarter of 2014.
The total number of engines sold by GYMCL during the fourth
quarter of 2014 was 93,094 units compared with 110,583 units in the
same quarter of 2013, representing a decrease of 17,489 units, or
15.8%. The decrease was mainly due to a decline in engine sales in
the truck segment as well as construction applications. According
to the China Association of Automobile Manufacturers ("CAAM"),
sales for commercial vehicles (excluding gasoline-powered vehicles)
declined by 14.9% in the fourth quarter of 2014.
Gross profit decreased 0.7% to RMB 970.1
million (US$ 158.5 million)
compared with RMB 976.6 million in
the same quarter of 2013. Gross margin increased to 24.7% in the
fourth quarter of 2014 compared with 23.3% in the same quarter in
2013. The increase in gross margin was attributable to reduced
sales of lower margin engines.
Other operating income was RMB 13.8
million (US$ 2.3 million), a
decrease of RMB 56.1 million from
RMB 69.9 million in the fourth
quarter of 2013. The decrease was mainly due to lower
government grants, less interest income from bank deposits and
higher foreign exchange revaluation loss.
Research and development ("R&D") expenses were RMB 132.6 million (US$
21.7 million) compared with RMB 146.3
million in the same quarter of 2013. As a percentage of net
revenue, R&D spending was 3.4% in the fourth quarter of 2014,
as compared with 3.5% in the fourth quarter of 2013.
Selling, general & administrative ("SG&A") expenses were
RMB 460.2 million (US$ 75.2 million), up from RMB 423.3 million in the fourth quarter of 2013,
an increase of RMB 36.9 million or
8.7%. SG&A expenses represented 11.7% of net revenue compared
with 10.1% in the fourth quarter of 2013. The increase in the
SG&A percentage was mainly due to higher depreciation costs and
impairment charges relating to an intangible asset.
Operating profit decreased by 18.0% to RMB 391.1 million (US$
63.9 million) from RMB 477.0
million in the fourth quarter of 2013. This decline was
mainly due to lower other income and higher SG&A expenses,
partially offset by lower R&D expenses. The operating margin
was 10.0% in the fourth quarter of 2014 compared with 11.4% in the
fourth quarter of 2013.
Finance costs increased to RMB 36.5
million (US$ 6.0 million) from
RMB 25.9 million in the same quarter
in 2013, an increase of RMB 10.6
million.
The share of joint ventures was a loss of RMB 3.6 million (US$ 0.6
million) compared with a loss of RMB
46.3 million in the same quarter in 2013. The decrease in
loss of RMB 42.7 million was mainly
due to impairments in the fourth quarter of 2013.
In the fourth quarter of 2014, total net profit attributable to
China Yuchai's shareholders decreased 5.1% to RMB 241.2 million (US$
39.4 million), or earnings per share of RMB 6.31 (US$
1.03), compared with RMB 254.1
million, or earnings per share of RMB
6.82 in the same quarter in 2013.
Earnings per share in the fourth quarter of 2014 was based on a
weighted average of 38,195,706 shares compared with earnings per
share in the fourth quarter of 2013 which was based on a weighted
average of 37,267,673 shares. In July
2014, we issued 928,033 new shares to shareholders who
elected to receive shares in lieu of dividend in cash.
Financial Highlights for 2014
- Net revenue increased 3.4% to RMB 16.4
billion (US$ 2.7 billion)
compared with RMB 15.9 billion in
2013;
- Gross profit rose slightly to RMB 3.29
billion (US$ 537.8 million),
with a gross margin of 20.0% compared with RMB 3.26 billion and a gross margin of 20.5% in
2013;
- Operating profit decreased 7.8% to RMB
1.3 billion (US$ 211.2
million) compared with RMB 1.4
billion in 2013;
- Earnings per share increased 3.0% to RMB
19.36 (US$ 3.16) compared with
RMB 18.79 in 2013;
- Total number of engines sold declined 3.4% to 483,825 units
compared with 500,756 units in 2013.
Net revenue increased 3.4% to RMB 16.4
billion (US$ 2.7 billion)
compared with RMB 15.9 billion in
2013.
The total number of engines sold by GYMCL during 2014 was
483,825 units compared with 500,756 units in 2013, representing a
decrease of 16,931 engine units, or 3.4%. This decrease compared
favorably against the industry decline of 10.8% in unit sales of
commercial vehicles (excluding gasoline-powered vehicles) in 2014,
as reported by CAAM. The decrease in engine units was mainly
attributable to a decline in engine sales to the truck and
industrial engine markets, offset by higher sales of engines for
agriculture applications. In 2014, approximately 36,400 natural gas
engines were sold compared with approximately 32,400 units in
2013.
Gross profit was RMB 3.29 billion
(US$ 537.8 million), higher than the
RMB 3.26 billion in 2013. Gross
profit margin was 20.0% compared with 20.5% in 2013. The lower
gross margin was attributable to a change in the sales mix to
higher engine sales for light-duty engines and a more competitive
commercial vehicle market.
Other operating income was RMB 94.9
million (US$ 15.5 million)
compared with RMB 156.4 million in
2013, a decrease of RMB 61.5 million.
This was mainly due to lower interest income from bank deposits and
a decrease in government grants.
Research and development ("R&D") expenses were RMB 494.6 million (US$
80.8 million) compared with RMB 468.6
million in 2013, an increase of 5.5%. As a percentage of net
revenue, R&D spending was 3.0% compared with 2.9% in 2013.
R&D expenses were mainly related to ongoing research and
development of new and existing engine products as well as
continued initiatives to improve engine quality.
Selling, general & administrative ("SG&A") expenses were
RMB 1.6 billion (US$ 261.3 million), which was similar to 2013.
SG&A expenses represented 9.7% of net revenue in 2014 and
2013.
Operating profit declined by 7.8% to RMB
1.3 billion (US$ 211.2
million) from RMB 1.4 billion
in 2013. This decrease was mainly due to lower other income, and
higher expenses for SG&A and R&D, which was partially
offset by an increase in gross profit. The operating margin was
7.9% compared with 8.8% in 2013.
Finance costs declined to RMB 156.7
million (US$ 25.6 million)
from RMB 161.2 million in 2013, a
decrease of RMB 4.5 million, or by
2.8%. The decline in finance costs was primarily due to lower
interest expenses from the outstanding short-term and medium-term
notes and less bills discounting in 2014, as compared with
2013.
The gains arising from acquisitions were RMB 95.2 million (US$ 15.6
million). This was due to GYMCL increasing its shareholding
interest in Yuchai Remanufacturing Services (Suzhou) Co., Ltd., a
jointly controlled entity, from 51% to 100% which resulted in a
fair value gain and negative goodwill of RMB
64.8 million. The remaining gain was due to HL Global
Enterprises Ltd increasing its shareholding interest in a jointly
controlled entity involved in the hotel business, from 45% to
100%.
The share of joint ventures was a loss of RMB 30.7 million (US$ 5.0
million) as compared with a loss of RMB 79.2 million in 2013. The decrease of
RMB 48.5 million was mainly due to a
reduction of the loss in the joint ventures of GYMCL. In 2013,
there were also impairment costs arising from the joint
ventures.
Total net profit attributable to China Yuchai's shareholders
increased 4.3% to RMB 730.3 million
(US$ 119.3 million), or earnings per
share of RMB 19.36 (US$ 3.16), compared with RMB 700.4 million, or earnings per share of
RMB 18.79 in 2013.
Earnings per share were based on a weighted average of
37,720,248 shares compared with earnings per share in 2013 which
was based on a weighted average of 37,267,673 shares. In
July 2014, we issued 928,033 new
shares to shareholders who elected to receive shares in lieu of
dividend in cash.
Balance Sheet Highlights as at December 31, 2014
- Cash and bank balances were RMB 2.5
billion (US$ 410.0 million)
compared with RMB 3.6 billion at
December 31, 2013.
- Trade and bills receivable were RMB 8.1
billion (US$ 1.3 billion)
compared with RMB 7.4 billion at the
end of 2013.
- Short- and long-term borrowings were RMB
2.3 billion (US$ 373.7
million) at the end of 2014 and 2013.
- Net inventory was RMB 1.9 billion
(US$ 314.0 million) compared with
RMB 2.3 billion at the end of
2013.
Mr. Weng Ming Hoh, President of
China Yuchai, commented, "As China began the strict enforcement of
the National IV emission standards nationwide on January 1, 2015, we saw a noticeable product mix
shift towards engines compliant with National IV emission standards
in the fourth quarter of 2014. We believe that the emission change
is beneficial for GYMCL in the long term as the technological entry
barrier in the marketplace is now higher."
"Since 2012, we added 30 new engines which improved our engines'
performance and provided leading emission technologies to
strengthen our customer relationships and attract new customers as
well. Our new high horsepower engines have been well received and
sales of our natural gas engines increased in 2014. We are already
selling National V natural gas and National VI diesel engines in
China and are ahead of the
technology curve. We are well positioned for future growth in
China." Mr. Hoh concluded.
Mr. Kok Ho Leong, Chief Financial
Officer of China Yuchai, stated, "We generated healthy cash flow
from operations and maintained a strong balance sheet for
2014. We will continue to exercise financial prudence in the
management of the Company."
Disclaimer Regarding Unaudited Financial Results
Investors should note that the Company has not yet finalized its
consolidated financial results for fiscal year 2014. 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 2014 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 6.1190 =
US$ 1.00, the rate quoted by the
People's Bank of China at the
close of business on December 31,
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 December 31, 2014 or at any other date.
Unaudited Full Year 2014 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 26,
2015. The call will be hosted by Mr. Weng Ming HOH,
President, and Mr. Kok Ho LEONG, Chief Financial Officer of China
Yuchai. They 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 dialling +1-866-519-4004 (United States), +800-906-601 (Hong Kong), 400-620-8038 (China) or +656-723-9381 (International),
Conference Code: 76369450, 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 2014, GYMCL sold 483,825 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", "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
Grayling
Tel: +1-646-284-9409
Email: cyd@grayling.com
-- Tables Follow --
CHINA YUCHAI
INTERNATIONAL LIMITED UNAUDITED CONSOLIDATED INCOME
STATEMENTS For the quarters ended December 31, 2014 and
2013 (RMB and US$ amounts expressed in thousands, except
per share data)
|
|
December 31,
2014
|
December 31,
2013
|
|
RMB'000
|
US$'000
|
RMB'000
|
US$'000
|
Revenue
|
3,920,895
|
640,774
|
4,190,097
|
684,768
|
Cost of goods
sold
|
(2,950,802)
|
(482,236)
|
(3,213,513)
|
(525,170)
|
Gross
profit
|
970,093
|
158,538
|
976,584
|
159,598
|
Other operating
income
|
13,786
|
2,253
|
69,936
|
11,429
|
Research and
development costs
|
(132,553)
|
(21,663)
|
(146,266)
|
(23,904)
|
Selling, distribution
and administrative costs
|
(460,219)
|
(75,211)
|
(423,284)
|
(69,175)
|
Operating
profit
|
391,107
|
63,917
|
476,970
|
77,948
|
Finance
costs
|
(36,485)
|
(5,963)
|
(25,852)
|
(4,225)
|
Share of
profit/(loss) of associates
|
804
|
131
|
(49)
|
(8)
|
Share of loss of
joint ventures
|
(3,591)
|
(587)
|
(46,344)
|
(7,574)
|
Profit before
tax
|
351,835
|
57,498
|
404,725
|
66,141
|
Income tax
expense
|
(27,209)
|
(4,447)
|
(74,323)
|
(12,146)
|
Profit for the
period
|
324,626
|
53,051
|
330,402
|
53,995
|
Attributable
to:
|
|
|
|
|
Equity holders of the
parent
|
241,171
|
39,413
|
254,121
|
41,529
|
Non-controlling
interests
|
83,455
|
13,638
|
76,281
|
12,466
|
|
324,626
|
53,051
|
330,402
|
53,995
|
Net earnings per
common share:
|
|
|
|
|
Basic
|
6.31
|
1.03
|
6.82
|
1.11
|
Diluted
|
6.31
|
1.03
|
6.82
|
1.11
|
Unit sales
|
93,094
|
|
110,583
|
|
CHINA YUCHAI
INTERNATIONAL LIMITED UNAUDITED CONSOLIDATED INCOME
STATEMENTS For the years ended December 31, 2014 and
2013 (RMB and US$ amounts expressed in thousands, except
per share data)
|
|
December 31,
2014
(Unaudited)
|
December 31,
2013
(Audited)
|
|
RMB'000
|
US$'000
|
RMB'000
|
US$'000
|
Revenue
|
16,436,142
|
2,686,083
|
15,902,355
|
2,598,849
|
Cost of goods
sold
|
(13,145,152)
|
(2,148,252)
|
(12,637,451)
|
(2,065,280)
|
Gross
profit
|
3,290,990
|
537,831
|
3,264,904
|
533,569
|
Other operating
income
|
94,892
|
15,508
|
156,352
|
25,552
|
Research and
development costs
|
(494,594)
|
(80,829)
|
(468,612)
|
(76,583)
|
Selling, distribution
and administrative costs
|
(1,598,670)
|
(261,263)
|
(1,550,228)
|
(253,347)
|
Operating
profit
|
1,292,618
|
211,247
|
1,402,416
|
229,191
|
Finance
costs
|
(156,670)
|
(25,604)
|
(161,211)
|
(26,346)
|
Share of profit of
associates
|
956
|
156
|
159
|
26
|
Share of loss of
joint ventures
|
(30,711)
|
(5,019)
|
(79,245)
|
(12,951)
|
Gains arising from
acquisitions
|
95,192
|
15,557
|
-
|
-
|
Profit before
tax
|
1,201,385
|
196,337
|
1,162,119
|
189,920
|
Income tax
expense
|
(179,638)
|
(29,357)
|
(222,147)
|
(36,304)
|
Profit for the
period
|
1,021,747
|
166,980
|
939,972
|
153,616
|
Attributable
to:
|
|
|
|
|
Equity holders of the
parent
|
730,281
|
119,347
|
700,423
|
114,468
|
Non-controlling
interests
|
291,466
|
47,633
|
239,549
|
39,148
|
|
1,021,747
|
166,980
|
939,972
|
153,616
|
Net earnings per
common share:
|
|
|
|
|
Basic
|
19.36
|
3.16
|
18.79
|
3.07
|
Diluted
|
19.36
|
3.16
|
18.79
|
3.07
|
Unit sales
|
483,825
|
|
500,756
|
|
CHINA YUCHAI
INTERNATIONAL LIMITED SELECTED UNAUDITED CONSOLIDATED
BALANCE SHEET ITEMS (RMB and US$ amounts expressed in
thousands)
|
|
As of December 31, 2014
(Unaudited)
|
As of December 31, 2013
(Audited)
|
|
RMB'000
|
US$'000
|
RMB'000
|
Cash and bank
balances
|
2,509,034
|
410,040
|
3,561,848
|
Trade and bills
receivables
|
8,113,095
|
1,325,886
|
7,437,948
|
Inventories
|
1,921,180
|
313,970
|
2,334,052
|
Trade and bills
payables
|
4,214,289
|
688,722
|
5,085,349
|
Short-term and
long-term interest bearing loans and borrowings
|
2,286,717
|
373,708
|
2,259,377
|
Equity attributable
to equity holders of the parent
|
6,988,434
|
1,142,088
|
6,391,573
|
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SOURCE China Yuchai International Limited