SINGAPORE, May 12, 2016 /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 first quarter ended March
31, 2016. The financial information presented herein for
2016 and 2015 is reported using International Financial Reporting
Standards ("IFRS") as issued by the International Accounting
Standards Board.
Financial Highlights for the First Quarter of 2016
- Net revenue declined to RMB 3.4
billion (US$ 523.1 million)
compared with RMB 3.7 billion in the
first quarter of 2015;
- Gross profit was RMB 604.3
million (US$ 93.5 million),
with a gross margin of 17.9% compared with RMB 674.4 million and a gross margin of 18.3% in
the first quarter of 2015;
- Operating profit decreased to RMB 183.8
million (US$ 28.4 million)
compared with RMB 228.1 million in
the same quarter of 2015;
- Net earnings attributable to China Yuchai's shareholders
decreased to RMB 89.2 million
(US$ 13.8 million) from RMB 105.4 million in the first quarter of
2015;
- Earnings per share were RMB 2.27
(US$ 0.35) compared with RMB 2.76 in the first quarter of 2015;
- Total number of engines sold was 90,771 units compared with
105,046 units in the first quarter of 2015.
Revenue for the first quarter of 2016 was RMB 3.4 billion (US$523.1 million), a decrease of 8.1% compared
with RMB 3.7 billion in the first
quarter of 2015. The total number of engines sold by GYMCL in the
first quarter of 2016 was 90,771 units compared with 105,046 units
in the same quarter in 2015, representing a decrease of 14,275
units, or 13.6%. According to data reported by the China
Association of Automobile Manufacturers ("CAAM") (excluding sales
of gasoline powered and electric engines), in the first quarter of
2016, there was a 2.0% reduction in bus sales led by a 7.9%
decrease in heavy-duty bus sales while there was a 3.3% increase in
truck sales. The increase in truck sales comprised mainly engine
sales for mini-trucks and trailers. According to CAAM, sales of
commercial vehicles recorded an increase of 2.6% in the first
quarter of 2016, compared to the same quarter in 2015.
Gross profit was RMB 604.3 million (US$93.5 million) compared with RMB 674.4
million in the first quarter of 2015, representing a decrease
of 10.4%. Gross margin was 17.9% compared with 18.3% in the same
quarter last year. The lower gross margin was mainly attributable
to the decline in unit sales by 13.6% compared with the same period
in 2015.
Other income was RMB 23.3 million (US$3.6 million), compared with RMB 1.5
million in the first quarter of 2015, representing an increase
of RMB 21.8 million. This increase
was mainly due to unrealized foreign exchange revaluation gains and
higher interest income from bank deposits.
Research and development ("R&D") expenses were RMB 99.6 million (US$15.4 million), compared with RMB 113.3 million in the first quarter of
2015, representing a decrease of 12.1%. R&D expenses were
mainly related to the development of new and existing engine
products compliant with National V emission standards for the truck
and bus segments, and expansion of our off-road product offerings.
As a percentage of revenue, R&D spending decreased to 2.9%
compared with 3.1% in the first quarter of 2015.
Selling, general and administrative ("SG&A") expenses
were RMB 344.1 million (US$53.3
million), an increase from RMB
334.5 million in the first quarter of 2015. SG&A
expenses represented 10.2% of revenue compared with 9.1% in the
same quarter a year ago. The higher percentage was mainly due to
lower unit sales, higher warranty expense and higher allowance for
doubtful debts.
Operating profit decreased to RMB 183.8
million (US$28.4 million)
from RMB 228.1 million in the first quarter of 2015. The
operating margin was 5.4% compared with 6.2% in the first quarter
of 2015.
Finance costs decreased to RMB 29.0
million (US$4.5 million)
from RMB 33.6 million in the first quarter of 2015, a
decrease of RMB 4.6 million or 13.7%. Lower finance costs
mainly resulted from a reduction in borrowings and lower borrowing
costs.
Profit before tax was RMB 149.0 million (US$23.1 million) compared with RMB 187.8
million in the first quarter of 2015, representing a decrease
of RMB 38.8 million. This was mainly
due to lower gross profit, higher other operating income and lower
R&D expenses.
Total net profit attributable to China
Yuchai's shareholders was RMB 89.2 million (US$13.8 million), or earnings per share
of RMB 2.27 (US$0.35) compared with RMB 105.4
million, or earnings per share of RMB 2.76 in the same
quarter in 2015.
Earnings per share in the first quarter of 2016 was based on a
weighted average of 39,298,340 shares compared with 38,195,706
shares in the first quarter of 2015. In July 2015, we issued
1,102,634 new shares to shareholders who elected to receive shares
in lieu of dividend in cash.
Balance Sheet Highlights as at March
31, 2016
- Cash and bank balances were RMB 4.3
billion (US$ 659.0 million)
compared with RMB 3.8 billion at
December 31, 2015;
- Trade and bills receivables were RMB 7.3
billion (US$ 1,123.1 million)
compared with RMB 7.2 billion at the
end of 2015;
- Inventories were RMB 1.7 billion
(US$ 267.8 million) which was similar
to the balance as at December 31,
2015;
- Short- and long-term borrowings were RMB
2.6 billion (US$ 396.2
million) compared with RMB 2.5
billion at the end of 2015;
- Trade and bills payables were RMB 4.2
billion (US$ 651.6 million)
compared with RMB 3.8 billion at the
end of 2015.
Mr. Weng Ming Hoh, President of
China Yuchai, commented, "Our first quarter results reflected the
continued weak macroeconomic environment and the resultant impact
of government policies. The transition in applicable emission
standards in both the on- and off-road segments have affected our
sales. Notwithstanding, we improved our average selling price
and adjusted our cost structure to maintain our profitability
despite lower unit sales".
"We continue to focus on cost controls, expansion of our product
offerings of advanced National V and VI engines even as we
strengthen our cash position and financial strength. We introduced
four new National V compliant engines and entered into a new joint
venture with Rolls Royce to produce the acclaimed MTU Series 4000
diesel engines compliant with China
Tier 3 emission standards primarily for China's off-highway
market. We believe that these new developments will further expand
on our current product portfolio," 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 6.4612 =
US$ 1.00, the rate quoted by the
People's Bank of China at the close of business on March 31, 2016. 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
March 31, 2016 or at any other
date.
Unaudited First Quarter 2016 Conference
Call
A conference call and audio webcast for the investment community
has been scheduled for 8:00 A.M. Eastern
Daylight Time on Thursday, May 12,
2016. 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 +65
67135090 (International), Conference Code:
98554129, 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 2015, GYMCL sold
364,567 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:
Dixon Chen
Tel: +1-646-726-6511
Email: cyd@bluefocus.com
-- Tables Follow --
CHINA YUCHAI
INTERNATIONAL LIMITED
|
UNAUDITED
CONSOLIDATED INCOME STATEMENTS
|
For the quarters
ended March 31, 2016 and 2015
|
(RMB and US$
amounts expressed in thousands, except per share
data)
|
|
March 31,
2016
|
March 31,
2015
|
|
RMB
'000
|
US$
'000
|
RMB
'000
|
US$
'000
|
Revenue
|
3,380,169
|
523,149
|
3,680,002
|
569,554
|
Cost of goods
sold
|
(2,775,851)
|
(429,618)
|
(3,005,572)
|
(465,172)
|
Gross
profit
|
604,318
|
93,531
|
674,430
|
104,382
|
Other operating
income
|
23,254
|
3,599
|
1,502
|
232
|
Research and
development costs
|
(99,616)
|
(15,418)
|
(113,302)
|
(17,536)
|
Selling, distribution
and administrative costs
|
(344,147)
|
(53,264)
|
(334,497)
|
(51,770)
|
Operating
profit
|
183,809
|
28,448
|
228,133
|
35,308
|
Finance
costs
|
(29,002)
|
(4,489)
|
(33,626)
|
(5,204)
|
Share of profit of
associates
|
33
|
5
|
27
|
4
|
Share of loss of
joint ventures
|
(5,849)
|
(905)
|
(6,783)
|
(1,050)
|
Profit before
tax
|
148,991
|
23,059
|
187,751
|
29,058
|
Income tax
expense
|
(34,448)
|
(5,332)
|
(39,366)
|
(6,093)
|
Profit for the
period
|
114,543
|
17,727
|
148,385
|
22,965
|
Attributable to:
|
|
|
|
|
Equity holders of the
parent
|
89,183
|
13,802
|
105,355
|
16,305
|
Non-controlling
interests
|
25,360
|
3,925
|
43,030
|
6,660
|
|
114,543
|
17,727
|
148,385
|
22,965
|
Net earnings per
common share
|
2.27
|
0.35
|
2.76
|
0.43
|
Unit sales
|
90,771
|
|
105,046
|
|
CHINA YUCHAI
INTERNATIONAL LIMITED
|
SELECTED UNAUDITED
CONSOLIDATED BALANCE SHEET ITEMS
|
For the periods
ended March 31, 2016 and December 31, 2015
|
(RMB and US$
amounts expressed in thousands, except per share
data)
|
|
As of March 31,
2016
(Unaudited)
|
As of December
31,
2015
(Audited)
|
|
RMB
'000
|
US$
'000
|
RMB
'000
|
Cash and bank
balances
|
4,258,015
|
659,013
|
3,842,123
|
Trade and bills
receivables
|
7,256,520
|
1,123,092
|
7,178,513
|
Inventories
|
1,730,466
|
267,824
|
1,711,330
|
Trade and bills
payables
|
4,210,314
|
651,630
|
3,841,756
|
Short-term and
long-term interest bearing
loans and borrowings
|
2,559,763
|
396,175
|
2,455,704
|
Equity attributable
to equity holders of the
parent
|
7,326,002
|
1,133,845
|
7,239,617
|
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SOURCE China Yuchai International Limited