SINGAPORE, Nov. 11, 2014 /PRNewswire/ -- China
Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the
"Company"), a leading automotive manufacturer and distributor of
engines 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, 2014.
Financial Highlights for the Third Quarter of 2014
- Net revenue was RMB 3.75 billion
(US$ 609.9 million ) compared with
RMB 3.70 billion in the third quarter
of 2013;
- Gross profit was RMB 715.7
million (US$ 116.3 million),
with a gross margin of 19.1% compared with RMB 740.4 million and a gross margin of 20.0% in
the third quarter of 2013;
- Operating profit decreased 10.0% to RMB
227.6 million (US$ 37.0
million) compared with RMB 252.8
million in the same quarter a year ago;
- Net earnings attributable to China Yuchai's shareholders
increased to RMB 143.8 million
(US$ 23.4 million) from RMB 106.5 million;
- Earnings per share were RMB 3.77
(US$ 0.61) compared with RMB 2.86 in the third quarter of 2013;
- Total number of engines sold was 111,023 units compared with
118,282 units in the third quarter of 2013.
Net revenue for the third quarter of 2014 was RMB 3.75 billion (US$
609.9 million) compared with RMB 3.70
billion in the third quarter of 2013.
The total number of engines sold during the third quarter of
2014 was 111,023 units compared with 118,282 units in the same
quarter a year ago, representing a decrease of 6.1%, which compared
favorably with the industry decline of 19.4% in unit sales of
commercial vehicles (excluding gasoline-powered vehicles) in the
third quarter of 2014, as reported by the China Association of
Automobile Manufacturers ("CAAM").
Gross profit was RMB 715.7 million
(US$ 116.3 million) compared with
RMB 740.4 million in the same quarter
of 2013. Gross margin was 19.1% in the third quarter of 2014
compared with 20.0% in the same quarter last year.
Other operating income was RMB 39.6
million (US$ 6.4 million), an
increase of RMB 10.7 million from
RMB 28.9 million in the same quarter
last year.
Research and development ("R&D") expenses were RMB 134.9 million (US$
21.9 million) compared with RMB 111.6
million in the same quarter of 2013, an increase of 20.9%.
As a percentage of net revenue, R&D spending was 3.6% compared
with 3.0% in the same quarter of 2013. The increase in R&D
percentage was mainly due to higher development and testing costs
as new engines were introduced to the market.
Selling, general & administrative ("SG&A") expenses of
RMB 392.7 million (US$ 63.8 million), declined from RMB 404.9 million in the third quarter last year,
a decrease of RMB 12.2 million or
3.0%. SG&A expenses represented 10.5% of net revenue compared
with 10.9% in the third quarter of 2013. The decline in the
SG&A percentage was mainly due to lower warranty and travelling
expenses.
Operating profit decreased by 10.0% to RMB 227.6 million (US$
37.0 million) from RMB 252.8
million in the third quarter of 2013. The decrease of
RMB 25.2 million was mainly due to
lower gross profit and higher R&D expenses. The operating
margin was 6.1% compared with 6.8% in the third quarter of
2013.
Finance costs decreased by 16.0% to RMB
51.7 million (US$ 8.4 million)
from RMB 61.6 million in the same
quarter last year. Lower finance costs mainly resulted from 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 share of joint ventures was a loss of RMB 2.9 million (US$ 0.5
million), compared with a loss of RMB
7.2 million in the same quarter last year.
The gains arising from acquisitions in the third quarter of 2014
were RMB 95.2 million (US$ 15.5 million). This was due to GYMCL
increasing its shareholding interest in Yuchai Remanufacturing
Services (Suzhou) Co., Ltd 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 hotel
property from 45% to 100%. It is to be noted that these are
preliminary assessments.
In the third quarter of 2014, total net profit attributable to
China Yuchai's shareholders was RMB 143.8
million (US$ 23.4 million), or
earnings per share of RMB 3.77
(US$ 0.61), compared with
RMB 106.5 million, or earnings per
share of RMB 2.86 in the same quarter
in 2013.
Earnings per share in the third quarter 2014 was based on a
weighted average of 38,135,182 shares compared with earnings per
share in the third quarter 2013 which was based on a weighted
average of 37,267,673 shares.
Financial Highlights for the Nine Months ended September 30, 2014
- Net revenue increased 6.9% to RMB 12.5
billion (US$ 2.0 billion)
compared with RMB 11.7 billion a year
ago;
- Gross profit increased to RMB 2.3
billion (US$ 377.2 million),
or a gross margin of 18.5%, compared with RMB 2.3 billion, or a 19.5% margin a year
ago;
- Operating profit decreased to RMB 901.5
million (US$ 146.5 million)
compared with RMB 925.4 million a
year ago;
- Earnings per share were RMB 13.02
(US$ 2.12) compared with RMB 11.98 a year ago;
- Total number of engines sold was 390,731 units compared with
390,173 units a year ago.
For the nine months ended September 30,
2014, net revenue was RMB 12.5
billion (US$ 2.0 billion)
compared with RMB 11.7 billion in the
same period last year. The increase in net sales was RMB 803.0 million, or 6.9%, as compared with the
same period in 2013.
The total number of engines sold by GYMCL during the first nine
months of 2014 was 390,731 units compared with 390,173 units in the
same period last year. This slight increase compared favorably with
the industry decline of 9.5% in unit sales of commercial vehicles
(excluding gasoline-powered vehicles) for the nine months of 2014,
as reported by CAAM. Higher engine sales were mainly attributable
to increased sales to the agriculture market.
Gross profit was RMB 2.3 billion
(US$ 377.2 million) similar to the
same period last year. Gross profit margin remained at 18.5%
compared with 19.5% for the first nine months of 2013. The decline
was mainly attributable to the change in sales mix to higher engine
sales for agriculture applications, and a more competitive
commercial vehicle market.
Other operating income was RMB 81.1
million (US$ 13.2 million), a
decrease of RMB 5.3 million from
RMB 86.4 million in the same period
last year.
Research and development ("R&D") expenses were RMB 362.0 million (US$
58.8 million) compared with RMB 322.3
million in the same period in 2013, an increase of 12.3%. As
a percentage of net revenue, R&D spending was 2.9% compared
with 2.8% in the first nine months of 2013. R&D expenses
increased mainly due to the 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 1.14 billion (US$ 185.0 million) which was similar to
RMB 1.13 billion in the same period
last year. SG&A expenses represented 9.1% of net revenue for
the first nine months of 2014, compared with 9.6% in the same
period last year. The decline in the SG&A percentage was mainly
due to lower advertising and promotion expenditures and travelling
expenditures, which was offset by higher warranty expenses.
Operating profit decreased to RMB 901.5
million (US$ 146.5 million)
from RMB 925.4 million in the same
period last year. The decrease of RMB
23.9 million was mainly due to an increase in R&D
expenses and SG&A expenses, offset by higher gross profit. The
operating margin was 7.2% compared with 7.9% in the same period
last year.
Finance costs declined to RMB 120.2
million (US$ 19.5 million)
from RMB 135.4 million in the same
period last year, a decrease of RMB 15.2
million or 11.2%. The decline in finance costs was mainly
due to lower interest costs from the outstanding short-term and
medium-term notes and less bills discounting in the first nine
months of 2014, as compared with the same period in 2013.
The share of joint ventures was a loss of RMB 27.1 million (US$ 4.4
million), a reduction in loss of RMB
5.8 million compared with a loss of RMB 32.9 million in the same period in 2013.
The gains arising from acquisitions were RMB 95.2 million (US$ 15.5
million). These gains were recorded in the third quarter of
2014.
For the nine months ended September 30,
2014, total net profit attributable to China Yuchai's
shareholders was RMB 489.1 million
(US$ 79.5 million), or earnings per
share of RMB 13.02 (US$ 2.12), compared with RMB 446.3 million, or earnings per share of
RMB 11.98 in the same period last
year.
Earnings per share for the nine months ended September 30, 2014 was based on a weighted
average of 37,560,020 shares compared with earnings per share for
the nine months ended September 30,
2013 which were based on a weighted average of 37,267,673
shares.
Balance Sheet Highlights as at September 30, 2014
- Cash and bank balances were RMB 2.9
billion (US$ 467.3 million)
compared with RMB 3.6 billion as at
December 31, 2013.
- Short- and long-term borrowings were RMB
2.7 billion (US$ 437.7
million) compared with RMB 2.3
billion at the end of 2013.
- Net inventory was RMB 2.1 billion
(US$ 341.3 million) compared with
RMB 2.3 billion at the end of
2013.
Mr. Weng Ming Hoh, President of
China Yuchai, commented, "We are pleased to have achieved higher
revenues as our strategy of supplying advanced engines to multiple
markets enabled us to counteract volatility across different
segments. Higher sales to the agriculture, bus and natural gas
engine markets in the third quarter mitigated headwinds in other
market segments. Our ability to develop engines with increased
performance and industry-leading engine emissions enhanced our
customer relationships in the large Chinese engine market."
Mr. Kok Ho Leong, Chief Financial
Officer of China Yuchai, stated, "The strength of our balance sheet
and cash position helped us to weather the changing economic
environment in China. We also
benefited from the issuance of three-year, medium-term notes in
2013 at a low interest rate of 4.69%. As a result of our
performance in 2013, we rewarded our shareholders with a dividend
of US$1.20 per share which was made
wholly in cash or in new shares at the election of our
shareholders."
Exchange Rate Information
The Company's functional currency is the U.S. dollar and its
reporting currency is Renminbi. The translation of amounts from
Renminbi to U.S. dollars is solely for the convenience of the
reader. Translation of amounts from Renminbi to U.S. dollars has
been made at the rate of RMB 6.1525 =
US$ 1.00, the rate quoted by the
People's Bank of China at the
close of business on September 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 September 30, 2014 or at any other date.
Third Quarter 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 November 11,
2014. 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 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 dialing +1-866-519-4004 (United States), 800-906-601 (Hong Kong), 400-620-8038 (China) or +656-723-9381 (International),
Conference Code: 22946148, 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: cyd@grayling.com
CHINA YUCHAI
INTERNATIONAL LIMITED
|
UNAUDITED
CONSOLIDATED INCOME STATEMENTS
|
For the quarters
ended September 30, 2014 and 2013
|
(RMB and US$
amounts expressed in thousands, except per share
data)
|
|
|
September 30,
2014
|
September 30,
2013
|
|
RMB
'000
|
US$
'000
|
RMB
'000
|
US$
'000
|
Revenue
|
3,752,189
|
609,864
|
3,701,224
|
601,580
|
Cost of goods
sold
|
(3,036,483)
|
(493,536)
|
(2,960,839)
|
(481,242)
|
Gross
profit
|
715,706
|
116,328
|
740,385
|
120,338
|
Other operating
income
|
39,575
|
6,432
|
28,910
|
4,699
|
Research and
development costs
|
(134,939)
|
(21,932)
|
(111,613)
|
(18,141)
|
Selling, distribution
and administrative costs
|
(392,726)
|
(63,832)
|
(404,905)
|
(65,811)
|
Operating
profit
|
227,616
|
36,996
|
252,777
|
41,085
|
Finance
costs
|
(51,729)
|
(8,408)
|
(61,568)
|
(10,007)
|
Share of (loss) /
profit of associates
|
(3)
|
-
|
102
|
17
|
Share of loss of
joint ventures
|
(2,929)
|
(476)
|
(7,154)
|
(1,163)
|
Gains arising from
acquisitions
|
95,192
|
15,472
|
-
|
-
|
Profit before
tax
|
268,147
|
43,584
|
184,157
|
29,932
|
Income tax
expense
|
(38,068)
|
(6,187)
|
(37,178)
|
(6,043)
|
Profit for the
period
|
230,079
|
37,397
|
146,979
|
23,889
|
Attributable
to:
|
|
|
|
|
Equity holders of the
parent
|
143,785
|
23,370
|
106,518
|
17,313
|
Non-controlling
interests
|
86,294
|
14,027
|
40,461
|
6,576
|
|
230,079
|
37,397
|
146,979
|
23,889
|
Net earnings per
common share:
|
|
|
|
|
Basic
|
3.77
|
0.61
|
2.86
|
0.46
|
Diluted
|
3.77
|
0.61
|
2.86
|
0.46
|
Unit sales
|
111,023
|
|
118,282
|
|
CHINA YUCHAI
INTERNATIONAL LIMITED
|
UNAUDITED
CONSOLIDATED INCOME STATEMENTS
|
For the nine
months ended September 30, 2014 and 2013
|
(RMB and US$
amounts expressed in thousands, except per share
data)
|
|
|
September 30,
2014
|
September 30,
2013
|
|
RMB
'000
|
US$
'000
|
RMB
'000
|
US$
'000
|
Revenue
|
12,515,247
|
2,034,173
|
11,712,258
|
1,903,658
|
Cost of goods
sold
|
(10,194,350)
|
(1,656,944)
|
(9,423,938)
|
(1,531,725)
|
Gross
profit
|
2,320,897
|
377,229
|
2,288,320
|
371,933
|
Other operating
income
|
81,106
|
13,183
|
86,416
|
14,046
|
Research and
development costs
|
(362,041)
|
(58,845)
|
(322,346)
|
(52,393)
|
Selling, distribution
and administrative costs
|
(1,138,451)
|
(185,039)
|
(1,126,944)
|
(183,168)
|
Operating
profit
|
901,511
|
146,528
|
925,446
|
150,418
|
Finance
costs
|
(120,185)
|
(19,534)
|
(135,359)
|
(22,001)
|
Share of profit of
associates
|
152
|
25
|
208
|
34
|
Share of loss of
joint ventures
|
(27,120)
|
(4,408)
|
(32,901)
|
(5,348)
|
Gains arising from
acquisitions
|
95,192
|
15,472
|
-
|
-
|
Profit before
tax
|
849,550
|
138,083
|
757,394
|
123,103
|
Income tax
expense
|
(152,429)
|
(24,775)
|
(147,824)
|
(24,027)
|
Profit for the
period
|
697,121
|
113,308
|
609,570
|
99,076
|
Attributable
to:
|
|
|
|
|
Equity holders of the
parent
|
489,110
|
79,499
|
446,302
|
72,539
|
Non-controlling
interests
|
208,011
|
33,809
|
163,268
|
26,537
|
|
697,121
|
113,308
|
609,570
|
99,076
|
Net earnings per
common share:
|
|
|
|
|
Basic
|
13.02
|
2.12
|
11.98
|
1.95
|
Diluted
|
13.02
|
2.12
|
11.98
|
1.95
|
Unit sales
|
390,731
|
|
390,173
|
|
CHINA YUCHAI
INTERNATIONAL LIMITED
|
SELECTED UNAUDITED
CONSOLIDATED BALANCE SHEET ITEMS
|
(RMB and US$
amounts expressed in thousands)
|
|
|
As of September 30, 2014
(Unaudited)
|
As of December 31, 2013
(Audited)
|
|
RMB
'000
|
US$
'000
|
RMB
'000
|
Cash and bank
balances
|
2,875,073
|
467,302
|
3,561,848
|
Trade and bills
receivables
|
8,578,240
|
1,394,269
|
7,437,948
|
Inventories
|
2,099,920
|
341,312
|
2,334,052
|
Trade and bills
payables
|
4,907,361
|
797,621
|
5,085,349
|
Short-term and
long-term interest bearing loans and borrowings
|
2,692,952
|
437,700
|
2,259,377
|
Equity attributable
to equity holders of the parent
|
6,736,958
|
1,094,995
|
6,391,573
|
SOURCE China Yuchai International Limited