SINGAPORE, Nov. 13, 2017 /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"), announced today its unaudited consolidated financial
results for the third quarter and nine months ended September
30, 2017. The financial information presented herein for the third
quarter of 2017 and 2016 is reported using International Financial
Reporting Standards as issued by the International Accounting
Standards Board.
Financial Highlights for the Third Quarter of 2017
- Net revenue was RMB 3.8 billion (US$ 570.9 million) compared with RMB 2.9
billion in the third quarter of 2016;
- Gross profit was RMB 761.2 million (US$ 114.7 million), with a gross margin of 20.1%,
compared with RMB 630.7 million and a gross margin of
21.9% in the third quarter of 2016;
- Operating profit was RMB 297.9 million (US$ 44.9 million) compared with RMB 161.1
million in the third quarter of 2016;
- Net earnings attributable to China
Yuchai's shareholders increased to RMB
165.6 million (US$ 25.0
million) from RMB 76.8 million
in the third quarter of 2016;
- Earnings per share were RMB 4.06 (US$ 0.61)
compared with RMB 1.89 in the third quarter of 2016, an
increase of 114.8%;
- Total number of engines sold was 82,839 units compared with
66,013 units in the third quarter of 2016.
The net revenue for the third quarter of 2017 increased by 31.3%
to RMB 3.8 billion (US$ 570.9 million) from RMB 2.9 billion for the same quarter last
year.
The total number of engines sold by GYMCL during the third
quarter of 2017 was 82,839 units, compared with 66,013 units for
the same quarter last year, an increase of 25.5%. Sales reflected
the industry trend with higher engine sales to the truck segment
and lower engine sales to the bus segment compared with the same
quarter last year. Sales to the off-road engine market increased in
the third quarter of 2017 with higher sales in the power
generation, industrial and agriculture sectors compared with the
same quarter last year.
According to data reported by the China Association of
Automobile Manufacturers ("CAAM"), in the third quarter of 2017,
sales of commercial vehicles (excluding gasoline–powered and
electric vehicles) increased by 28.0% led by an increase of 31.8%
in the truck segment and a rebound of 4.3% in the bus segment
compared to the same quarter last year.
Gross profit increased by 20.7% to RMB
761.2 million (US$ 114.7
million) from RMB 630.7
million in the same quarter last year. Gross margin was
20.1% compared with 21.9% in the same quarter last year. The
decrease was mainly attributable to higher materials costs during
the quarter.
Other operating income was RMB 50.6
million (US$ 7.6 million)
compared with RMB 12.4 million in the
same quarter last year. The increase was mainly due to higher
interest income from bank deposits, higher foreign exchange
revaluation gains and higher fair value gain on held for trading
investment compared to the same quarter last year.
Research and development ("R&D") expenses decreased to
RMB 139.6 million (US$ 21.0 million) from RMB
161.4 million in the same quarter last year. Lower
R&D expenses were mainly due to lower experimental costs and
reduced consultancy costs. The ongoing R&D program is
focused on new and existing engine products as well as continued
initiatives to improve engine quality. As a percentage of
revenue, R&D expenses decreased to 3.7% compared with 5.6% in
the same quarter last year.
Selling, general & administrative ("SG&A") expenses
increased by 16.8% to RMB 374.4
million (US$ 56.4 million)
from RMB 320.6 million in the same
quarter last year. The
increase was mainly due to staff severance costs, higher staff
costs and higher freight charges recorded in the quarter. SG&A
expenses represented 9.9% of revenue compared with 11.1% in the
same quarter last year.
Operating profit increased by 84.9% to RMB 297.9 million (US$
44.9 million) from RMB 161.1
million in the same quarter last year. The operating
margin was 7.9% compared with 5.6% in the same quarter last
year.
Finance costs were RMB 32.7
million (US$ 4.9 million)
compared with RMB 18.5 million in the
same quarter last year. Higher finance costs mainly resulted
from higher borrowings. External borrowings increased to
RMB 1.9 billion (US$ 290.6 million) from RMB 763.1 million in the same quarter last
year.
For the quarter ended September 30,
2017, total net profit attributable to China Yuchai's
shareholders was RMB 165.6 million
(US$ 25.0 million), or earnings per
share of RMB 4.06 (US$ 0.61), compared with RMB 76.8 million, or earnings per share of
RMB 1.89, in the same quarter last
year.
Earnings per share in the third quarter of 2017 were based on a
weighted average of 40,799,959 shares compared with 40,712,100
shares in the same quarter last year. In July 2017, a total of 99,790 new shares were
issued to shareholders who elected to receive shares in lieu of a
dividend in cash.
Financial Highlights for the Nine Months ended September
30, 2017
- Net revenue was RMB 12.4 billion (US$ 1.9 billion) compared with RMB 9.9
billion a year ago;
- Gross profit was RMB 2.4 billion (US$ 366.8 million), or a gross margin of 19.6%,
compared with RMB 1.9 billion, or a gross margin of 19.6%, a
year ago;
- Operating profit was RMB 970.3 million (US$ 146.2 million) compared with RMB 587.9
million a year ago;
- Earnings per share increased to RMB
13.40 (US$
2.02) from RMB 7.28 a year ago;
- Total number of engines sold was 293,487 units compared with
244,575 units a year ago.
For the nine months ended September 30,
2017, net revenue increased by 25.3% to RMB 12.4 billion (US$ 1.9
billion) from RMB 9.9 billion
in the same period last year.
The total number of engines sold by GYMCL in the first nine
months of 2017 was 293,487 units compared with 244,575 units in the
same period last year, an increase of 20.0%. The increase was due
to higher engine sales in the truck and off-road segments
offsetting lower engine sales in the bus segment.
According to data reported by CAAM, in the nine months ended
September 30, 2017, sales of
commercial vehicles (excluding gasoline–powered and electric
vehicles) increased by 23.9% led by an increase of 27.9% in the
truck segment whereas sales in the bus segment decreased by
2.4%.
Gross profit was RMB 2.4 billion
(US$ 366.8 million) compared with
RMB 1.9 billion in the same period
last year. The increase was mainly attributable to higher
unit sales. Gross margin was 19.6% for the same period in 2016
and 2017.
Other operating income was RMB 138.8
million (US$ 20.9 million)
compared with RMB 51.8 million in the
same period last year. This
increase was mainly due to higher interest income from bank
deposits, higher foreign exchange revaluation gains, gains on
disposal of property, plant and equipment, and higher fair value
gain on held for trading investment in the first nine months of
2017. In the same period last year,
the Company incurred losses on disposal of property, plant and
equipment.
R&D expenses were RMB 377.2
million (US$ 56.8 million)
compared with RMB 400.7 million in
the same period last year. Lower R&D expenses were mainly
due to lower experimental costs and a decrease in quality-related
costs. The ongoing R&D program
is focused on new and existing engine products as well as continued
initiatives to improve engine quality. As a percentage of
revenue, R&D spending was 3.0% in the first nine months of 2017
compared with 4.0% in the same period last year.
SG&A expenses increased to RMB 1.2
billion (US$ 184.7 million)
from RMB 1.0 billion in the same
period last year. This
increase was mainly due to staff severance costs, higher staff
costs and higher freight charges recorded in the nine months ended
September 30, 2017. SG&A expenses represented 9.9% of
revenue for the first nine months of 2017 compared with 10.2% in
the same period last year.
Operating profit increased to RMB 970.3
million (US$ 146.2 million)
from RMB 587.9 million in the same
period last year. The increase was mainly due to higher unit
sales. The operating margin was 7.8% in the first nine months
of 2017 compared with 5.9% in the same period last year.
Finance costs were RMB 75.9
million (US$ 11.4 million)
compared with RMB 68.4 million in the
same period last year. Higher
finance costs were mainly due to higher borrowings. External
borrowings increased to RMB 1.9
billion (US$ 290.6 million)
from RMB 763.1 million in the same
period last year.
The Company's share in the gains of joint ventures was
RMB 10.7 million (US$ 1.6 million) compared with a loss of
RMB 5.9 million in the same period
last year. The increase was mainly attributable to the performance
of Y & C Engine Co., Ltd.
For the nine months ended September 30,
2017, total net profit attributable to China Yuchai's
shareholders was RMB 546.1 million
(US$ 82.3 million), or earnings per
share of RMB 13.40 (US$ 2.02), compared with RMB 289.7 million, or earnings per share of
RMB 7.28, in the same period last
year.
Earnings per share in the nine months ended September 30, 2017 were based on a weighted
average of 40,741,708 shares compared with 39,783,353 shares in the
same period in 2016.
Balance Sheet Highlights as at September 30,
2017
- Cash and bank balances were RMB 4.4
billion (US$ 667.0 million)
compared with RMB 4.1 billion at the end of
2016;
- Trade and bills receivables were RMB 9.5
billion (US$ 1.4 billion)
compared with RMB 7.1 billion at the
end of 2016;
- Inventories were RMB 1.9 billion (US$ 281.3 million) compared with RMB 1.7
billion at the end of 2016;
- Trade and bills payables were RMB 5.4
billion (US$ 815.3 million)
compared with RMB 4.7 billion at the
end of 2016;
- Short-term and long-term borrowings were RMB 1.9
billion (US$ 290.6 million)
compared with RMB 910.4 million at the end of 2016.
Mr. Weng Ming Hoh, President of China Yuchai,
commented, "We are excited to report strong third quarter results.
Our higher sales were mainly due to increased truck sales and
greater penetration of the off-road market with gains in the power
generation, industrial and agriculture engine sectors. We are
focusing on developing more reliable and higher performance engines
while we continue to expand our National VI engine portfolio as
these technologically advanced products have enhanced our
profitability."
"Notwithstanding China's policies to promote electric vehicles,
diesel engines remain an integral part of the growth in
transportation and off-road applications. In addition to our
diesel engines, we witnessed increased sales of our natural gas
engines in China. We will continue
to focus on cash generation to further strengthen our balance sheet
and to provide the resources for future growth," Mr. Hoh
concluded.
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 6.6369 = US$ 1.00, the rate
quoted by the People's Bank of China at the close of
business on September 30, 2017. 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 September 30, 2017 or at any other date.
Unaudited Third Quarter 2017
Conference Call
A conference call and audio webcast for the investment community
has been scheduled for 8:00 A.M. Eastern Standard
Time on November 13, 2017. The call will be hosted by Mr.
Weng Ming HOH, President, and Dr. Thomas PHUNG, Chief Financial
Officer, of China Yuchai. They will present on 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 +65 67135090 (International),
Conference Code: 1170953 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 2016, GYMCL sold 320,424 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 the Company's
operations, financial performance and condition are based on
current expectations, beliefs and assumptions which are subject to
change at any time. 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
such as government and stock exchange regulations, competition,
political, economic and social conditions around the world and in
China including those discussed in
the Company'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. All forward-looking statements are applicable only as of the
date they are made, and 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
Tel: +1-646-726-6511
Email: cyd@bluefocus.com
- Tables Follow -
CHINA YUCHAI
INTERNATIONAL LIMITED
|
UNAUDITED
CONSOLIDATED INCOME STATEMENTS
|
For the quarters
ended September 30, 2017 and 2016
|
(RMB and US$
amounts expressed in thousands, except per share
data)
|
|
|
September 30,
2017
|
September 30,
2016
|
|
RMB
'000
|
US$
'000
|
RMB
'000
|
US$
'000
|
Revenue
|
3,788,758
|
570,863
|
2,885,782
|
434,809
|
Cost of goods
sold
|
(3,027,563)
|
(456,171)
|
(2,255,034)
|
(339,772)
|
Gross
profit
|
761,195
|
114,692
|
630,748
|
95,037
|
Other operating
income, net
|
50,642
|
7,630
|
12,389
|
1,867
|
Research and
development costs
|
(139,573)
|
(21,030)
|
(161,436)
|
(24,324)
|
Selling, general and
administrative costs
|
(374,375)
|
(56,408)
|
(320,618)
|
(48,308)
|
Operating
profit
|
297,889
|
44,884
|
161,083
|
24,272
|
Finance
costs
|
(32,667)
|
(4,922)
|
(18,532)
|
(2,792)
|
Share of profit of
associates
|
31
|
5
|
738
|
111
|
Share of
profit/(loss) of joint ventures
|
5,591
|
842
|
(1,005)
|
(151)
|
Profit before
tax
|
270,844
|
40,809
|
142,284
|
21,440
|
Income tax
expense
|
(46,420)
|
(6,994)
|
(29,881)
|
(4,502)
|
Profit for the
period
|
224,424
|
33,815
|
112,403
|
16,938
|
Attributable
to:
|
|
|
|
|
Equity holders of the
parent
|
165,598
|
24,952
|
76,810
|
11,574
|
Non-controlling
interests
|
58,826
|
8,863
|
35,593
|
5,364
|
|
224,424
|
33,815
|
112,403
|
16,938
|
Net earnings per
common share
Basic
Diluted
|
4.06
4.06
|
0.61
0.61
|
1.89
1.89
|
0.28
0.28
|
Unit sales
|
82,839
|
|
66,013
|
|
CHINA YUCHAI
INTERNATIONAL LIMITED
|
UNAUDITED
CONSOLIDATED INCOME STATEMENTS
|
For the nine
months ended September 30, 2017 and 2016
|
(RMB and US$
amounts expressed in thousands, except per share
data)
|
|
|
September 30,
2017
|
September 30,
2016
|
|
|
RMB
'000
|
US$
'000
|
RMB
'000
|
US$
'000
|
|
Revenue
|
12,441,630
|
1,874,615
|
9,928,981
|
1,496,027
|
|
Cost of goods
sold
|
(10,007,097)
|
(1,507,797)
|
(7,983,496)
|
(1,202,895)
|
|
Gross
profit
|
2,434,533
|
366,818
|
1,945,485
|
293,132
|
|
Other operating
income, net
|
138,836
|
20,919
|
51,750
|
7,797
|
|
Research and
development costs
|
(377,197)
|
(56,833)
|
(400,662)
|
(60,369)
|
|
Selling, general and
administrative costs
|
(1,225,833)
|
(184,700)
|
(1,008,710)
|
(151,985)
|
|
Operating
profit
|
970,339
|
146,204
|
587,863
|
88,575
|
|
Finance
costs
|
(75,918)
|
(11,439)
|
(68,385)
|
(10,304)
|
|
Share of profit of
associates
|
49
|
7
|
11
|
2
|
|
Share of
profit/(loss)of joint ventures
|
10,737
|
1,618
|
(5,856)
|
(882)
|
|
Profit before
tax
|
905,207
|
136,390
|
513,633
|
77,391
|
|
Income tax
expense
|
(166,019)
|
(25,015)
|
(108,837)
|
(16,399)
|
|
Profit for the
period
|
739,188
|
111,375
|
404,796
|
60,992
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
Equity holders of the
parent
|
546,067
|
82,277
|
289,708
|
43,651
|
|
Non-controlling
interests
|
193,121
|
29,098
|
115,088
|
17,341
|
|
|
739,188
|
111,375
|
404,796
|
60,992
|
|
Net earnings per
common share
Basic
Diluted
|
13.40 13.40
|
2.02
2.02
|
7.28
7.28
|
1.10
1.10
|
|
Unit sales
|
293,487
|
|
244,575
|
|
|
CHINA YUCHAI
INTERNATIONAL LIMITED
|
UNAUDITED SELECTED
CONSOLIDATED BALANCE SHEET ITEMS
|
(RMB and US$
amounts expressed in thousands)
|
|
|
As of
September
30, 2017
|
As of
December
31, 2016
(Audited)
|
|
RMB
'000
|
US$
'000
|
RMB
'000
|
|
|
|
|
Cash and bank
balances
|
4,426,534
|
666,958
|
4,052,957
|
Trade and bills
receivables
|
9,548,720
|
1,438,732
|
7,057,256
|
Inventories
|
1,866,723
|
281,264
|
1,663,879
|
Trade and bills
payables
|
5,411,305
|
815,336
|
4,672,750
|
Short-term and
long-term interest-bearing loans and borrowings
|
1,928,801
|
290,618
|
910,406
|
Equity attributable
to equity holders of the parent
|
7,952,649
|
1,198,248
|
7,683,834
|
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SOURCE China Yuchai International Limited