SINGAPORE, Aug. 11, 2016
/PRNewswire/ -- China Yuchai International
Limited (NYSE: CYD) ("China Yuchai" or the "Company"), a
leading manufacturer and distributor of engines for on-road 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 second quarter and first six
months ended June 30, 2016. The financial information
presented herein for the second quarter of 2016 and 2015 is
reported using International Financial Reporting Standards as
issued by the International Accounting Standards Board.
Financial highlights for the second quarter of 2016
- Revenue was RMB 3.7 billion
(US$552.4 million) compared with
RMB 4.1 billion in the second quarter
of 2015;
- Gross profit was RMB 710.4
million (US$107.1 million), a
19.4% gross margin compared with RMB 837.2
million and a gross margin of 20.3% in the second quarter of
2015;
- Operating margin was 6.6% compared with 8.3% in the same
quarter a year ago;
- Net earnings attributable to China Yuchai's shareholders was
RMB 123.7 million (US$18.7 million) compared with RMB 176.4 million in the second quarter of
2015;
- Earnings per share was RMB 3.15
(US$0.47) compared with RMB 4.62 for the same quarter in 2015;
- Total number of engines sold was 87,791 units compared with
115,208 units in the second quarter of 2015.
Unaudited Second Quarter 2016 Results
Revenue for the second quarter of 2016 declined 11.1% to
RMB 3.7 billion (US$552.4 million) compared to RMB 4.1 billion in the second quarter of
2015.
The total number of engines sold by GYMCL during the second
quarter of 2016 was 87,791 units, compared with 115,208 units in
the same quarter of 2015, a reduction of 23.8%. The decrease was
due to the general slowdown in the Chinese economy, increased
competition as well as the resultant impact from the transition to
Tier 3 emission standards in the off-highway segment. The Company's
sales in marine segment increased as compared with the same quarter
of 2015. The Company's decline in net revenue was less than the
decline in unit sales due to a higher average selling price
resulting from a greater proportion of higher-priced National IV
and V engines sold in the second quarter of 2016.
According to data reported by the China Association of
Automobile Manufacturers ("CAAM") (excluding sales of gasoline
powered and electric vehicles), in the second quarter of 2016,
sales of buses declined by 8.5% led by a 21.8% decrease in
heavy-duty bus sales while truck sales increased by 6.7%. According
to CAAM, in the second quarter of 2016, sales of commercial
vehicles (excluding sales of gasoline powered and electric
vehicles) increased by 4.5% compared to the same quarter in 2015
and sales of electric commercial vehicles continued to grow
strongly year-on-year which impacted GYMCL's sales in the bus
segment.
Gross profit decreased 15.1% to RMB
710.4 million (US$107.1
million) compared with RMB
837.2 million in the second quarter of 2015. Gross
margin was 19.4% in the second quarter of 2016 compared with 20.3%
a year ago. The decreases were mainly attributable to lower unit
sales and higher cost of goods sold during the quarter.
Other operating income was RMB
16.1 million (US$2.4
million), compared with RMB
16.5 million in the second quarter of 2015.
Research and development ("R&D") expenses were RMB 139.6 million (US$21.1 million) compared with RMB 138.9 million in the second quarter of
2015. The Company continued with its research and development of
new engine products compliant with National V and VI emission
standards for the truck and bus segments, and its expansion of Tier
3 off-road product offerings. The Company also continued with
its initiatives to improve engine performance and quality. As a
percentage of revenue, R&D spending increased to 3.8% compared
with 3.4% in the second quarter of 2015.
Selling, general and administrative ("SG&A") expenses
decreased 8.1% to RMB
343.9 million (US$51.9
million) from RMB
374.1 million in the second quarter of 2015. The
decline of RMB 30.2 million
primarily resulted from lower unit sales in the second quarter of
2016. SG&A expenses represented 9.4% of revenue compared with
9.1% in the same quarter a year ago.
Operating profit decreased 28.7% to RMB
243.0 million (US$36.6
million) from RMB
340.7 million in the second quarter of 2015. The
decrease of RMB 97.7 million was mainly due to lower
revenue. The operating margin was 6.6% compared with 8.3% in the
second quarter of 2015.
Finance costs decreased 29.9% to RMB
20.9 million (US$3.1
million) from RMB
29.8 million in the second quarter of 2015, a decrease
of RMB 8.9 million. Lower
finance costs mainly resulted from a reduction in borrowings and
lower borrowing costs. As of June 30,
2016, short- and long-term loans and borrowings were
RMB 870.6 million (US$131.3 million), compared with RMB 2.6 billion at the end of the first quarter
of 2016 and RMB 2.5 billion at the
end of 2015.
For the quarter ended June 30, 2016, total net profit
attributable to China Yuchai's shareholders was RMB 123.7 million (US$18.7 million), or earnings per share of
RMB 3.15 (US$0.47), compared with RMB 176.4 million, or earnings per share of
RMB 4.62 in the same quarter in
2015.
The earnings per share in the second quarter of 2016 was based
on a weighted average of 39,329,412 shares compared with earnings
per share in the second quarter of 2015 which was based on a
weighted average of 38,195,706 shares. In June 2016, a total of 1,413,760 new shares were
issued to shareholders who elected to receive shares in lieu of a
dividend in cash.
Financial highlights for the first six months ended
June 30, 2016
- Revenue was RMB 7.0 billion
(US$1.1 billion) compared with
RMB 7.8 billion in the same period
last year;
- Gross profit was RMB 1.3 billion
(US$198.3 million), an 18.7% gross
margin, compared with RMB 1.5 billion
and a gross margin of 19.4% in the first six months of
2015;
- Operating profit was RMB 426.8
million (US$64.4 million)
compared with RMB 568.8 million in
the same period in 2015;
- Earnings per share decreased to RMB
5.42 (US$0.82) from
RMB 7.38 in the same period a year
ago;
- Total number of engines sold was 178,562 units compared with
220,254 units in the same period of 2015.
Revenue decreased by RMB 758.7
million or 9.7% to RMB 7.0
billion (US$1.1 billion)
compared with RMB 7.8 billion in the
same period last year.
The total number of engines sold by GYMCL in the first half of
2016 was 178,562 units, compared with 220,254 units in the same
period of 2015, a reduction of 18.9%. The decrease was due to the
general slowdown in the Chinese economy, increased competition as
well as the resultant impact from the transition to Tier 3 emission
standards in the off-highway segment. Sales of electric commercial
vehicles in the first half of 2016 grew strongly year-on-year which
impacted GYMCL's sales in the bus segment. However, GYMCL's
export and marine segment sales increased compared with the first
half of 2015.
Gross profit was RMB 1.3 billion
(US$198.3 million) compared with
RMB 1.5 billion in the same period
last year. Gross margin decreased to 18.7% as compared with 19.4% a
year ago. These decreases were mainly attributable to lower unit
sales.
Other operating income was RMB
39.4 million (US$5.9
million), an increase of RMB 21.4
million from RMB
18.0 million in the same period last year. 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 239.2 million (US$36.1 million) compared with RMB 252.2 million in the same period in
2015, a decrease of 5.1%. R&D expenses were mainly related to
the research and development of new engine products compliant with
National V and VI emission standards for the truck and bus
segments, and expansion of Tier 3 off-road product offerings. The
Company also continued with its initiatives to improve engine
performance and quality. As a percentage of revenue, R&D
spending was 3.4% in the first six months of 2016 compared with
3.2% in the same period in 2015.
Selling, general & administrative ("SG&A") expenses
decreased to RMB 688.1 million
(US$103.8 million) from RMB 708.6 million in the same period in
2015, a decrease of RMB
20.5 million or 2.9%. The decrease was mainly due to
lower unit sales in the first six months of 2016 as compared with
the same period in 2015. SG&A expenses represented 9.8% of
revenue for the first six months of 2016, compared with 9.1% in the
same period last year.
Operating profit decreased to RMB
426.8 million (US$64.4
million) from RMB
568.8 million in the same period in 2015. The decrease
was mainly due to lower unit sales. The operating margin was 6.1%
compared with 7.3% in the same period last year.
Finance costs declined to RMB
49.9 million (US$7.5
million) from RMB
63.4 million in the same period last year, a decrease
of RMB 13.5 million or 21.3%.
Lower finance costs mainly resulted from a reduction in borrowings
and lower borrowing costs.
The Company's share in the loss of joint ventures was
RMB 4.9 million (US$0.7 million) compared with a loss of
RMB 13.3 million in the same
period in 2015.
For the six months ended June 30, 2016, total net profit
attributable to China Yuchai's shareholders was RMB 212.9 million (US$32.1 million), or earnings per share of
RMB 5.42 (US$0.82), compared with RMB 281.8 million, or earnings per share of
RMB 7.38 in the same period in
2015.
Balance Sheet Highlights as at June 30, 2016
- Cash and bank balances were RMB 3.7
billion (US$552.7 million)
compared with RMB 3.8 billion at the
end of 2015;
- Trade and bills receivables were RMB 6.7
billion (US$1.0 billion)
compared with RMB 7.2 billion at the
end of 2015;
- Short-term and long-term loans and borrowings were RMB 870.6 million (US$131.3 million), compared with RMB 2.5 billion at the end of 2015;
- Inventories were RMB 1.5 billion
(US$228.9 million), compared with
RMB 1.7 billion at the end of
2015;
- Trade and bills payables was RMB 4.6
billion (US$686.8 million)
compared with RMB 3.8 billion at the
end of 2015.
Mr. Weng Ming Hoh, President of China Yuchai, commented,
"Our results in the second quarter of 2016 reflect the continuing
slower economic growth in China,
adverse headwinds in several key markets and the impact of certain
government regulations on our business. Despite these challenges,
we have maintained our profitability, continued to introduce
advanced new engines, implemented additional cost controls, and
strengthened our balance sheet."
"We will continue to focus on expanding our broad portfolio for
both on- and off-road applications to meet the diversified needs of
all our customers, and to protect and improve our financial
strength," 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 6.6312 =
US$1.00, the rate quoted by the
People's Bank of China at the
close of business on June 30, 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
June 30, 2016 or at any other date.
Unaudited Second 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 August 11, 2016. The call will be
hosted by the President and Chief Financial Officer of China
Yuchai, Mr. Weng Ming Hoh and Dr. Thomas Phung respectively, who 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 dialing +1-866-519-4004 (United States), +800-906-601 (Hong Kong), 400-620-8038 (China) or +65 67135090 (International),
Conference Code: 50566156 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 STATEMENTS OF PROFIT OR
LOSS
|
For the quarters ended June 30, 2016 and
2015
|
(RMB and US$ amounts expressed in thousands,
except per share
data)
|
|
|
June 30,
2016
|
June 30,
2015
|
|
RMB
'000
|
US$
'000
|
RMB
'000
|
US$
'000
|
Revenue
|
3,663,030
|
552,393
|
4,121,904
|
621,592
|
Cost of goods
sold
|
(2,952,611)
|
(445,260)
|
(3,284,735)
|
(495,345)
|
Gross
profit
|
710,419
|
107,133
|
837,169
|
126,247
|
Other operating
income
|
16,107
|
2,429
|
16,499
|
2,488
|
Research and development
costs
|
(139,610)
|
(21,054)
|
(138,855)
|
(20,940)
|
Selling, distribution and administrative
costs
|
(343,945)
|
(51,868)
|
(374,101)
|
(56,415)
|
Operating
profit
|
242,971
|
36,640
|
340,712
|
51,380
|
Finance
costs
|
(20,851)
|
(3,144)
|
(29,755)
|
(4,487)
|
Share of (loss)/profit of
associates
|
(760)
|
(115)
|
36
|
5
|
Share of profit/(loss) of joint
ventures
|
998
|
151
|
(6,547)
|
(987)
|
Profit before
tax
|
222,358
|
33,532
|
304,446
|
45,911
|
Income tax
expense
|
(44,508)
|
(6,712)
|
(60,741)
|
(9,160)
|
Profit for the
period
|
177,850
|
26,820
|
243,705
|
36,751
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
Equity holders of the
parent
|
123,715
|
18,656
|
176,400
|
26,601
|
Non-controlling
interests
|
54,135
|
8,164
|
67,305
|
10,150
|
|
177,850
|
26,820
|
243,705
|
36,751
|
|
|
|
|
|
Net earnings per common
share
|
3.15
|
0.47
|
4.62
|
0.70
|
|
|
|
|
|
Unit
sales
|
87,791
|
|
115,208
|
|
CHINA YUCHAI INTERNATIONAL
LIMITED
|
UNAUDITED CONSOLIDATED STATEMENTS OF PROFIT OR
LOSS
|
For the six months ended June 30, 2016 and
2015
|
(RMB and US$ amounts expressed in thousands,
except per share
data)
|
|
|
June 30,
2016
|
June 30,
2015
|
|
RMB
'000
|
US$
'000
|
RMB
'000
|
US$
'000
|
Revenue
|
7,043,199
|
1,062,130
|
7,801,906
|
1,176,545
|
Cost of goods
sold
|
(5,728,462)
|
(863,865)
|
(6,290,307)
|
(948,593)
|
Gross
profit
|
1,314,737
|
198,265
|
1,511,599
|
227,952
|
Other operating
income
|
39,361
|
5,936
|
18,001
|
2,715
|
Research and development
costs
|
(239,226)
|
(36,076)
|
(252,157)
|
(38,026)
|
Selling, distribution and administrative
costs
|
(688,092)
|
(103,766)
|
(708,598)
|
(106,858)
|
Operating
profit
|
426,780
|
64,359
|
568,845
|
85,783
|
Finance
costs
|
(49,853)
|
(7,518)
|
(63,381)
|
(9,558)
|
Share of (loss)/profit of
associates
|
(727)
|
(110)
|
63
|
10
|
Share of loss of joint
ventures
|
(4,851)
|
(732)
|
(13,330)
|
(2,010)
|
Profit before
tax
|
371,349
|
55,999
|
492,197
|
74,225
|
Income tax
expense
|
(78,956)
|
(11,907)
|
(100,107)
|
(15,096)
|
Profit for the
period
|
292,393
|
44,092
|
392,090
|
59,129
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
Equity holders of the
parent
|
212,898
|
32,104
|
281,755
|
42,490
|
Non-controlling
interests
|
79,495
|
11,988
|
110,335
|
16,639
|
|
292,393
|
44,092
|
392,090
|
59,129
|
Net earnings per common
share
|
5.42
|
0.82
|
7.38
|
1.11
|
|
|
|
|
|
Unit
sales
|
178,562
|
|
220,254
|
|
CHINA YUCHAI INTERNATIONAL
LIMITED
|
SELECTED UNAUDITED CONSOLIDATED BALANCE SHEET
ITEMS
|
(RMB and US$ amounts expressed in
thousands)
|
|
|
As of June 30,
2016
(unaudited)
|
|
As of December 31, 2015
(audited)
|
|
RMB'000
|
US$'000
|
|
RMB'000
|
Cash and bank
balances
|
3,664,965
|
552,685
|
|
3,842,123
|
|
|
|
|
|
Trade and bills
receivables
|
6,741,305
|
1,016,604
|
|
7,178,513
|
|
|
|
|
|
Inventories
|
1,518,078
|
228,930
|
|
1,711,330
|
|
|
|
|
Trade and bills
payables
|
4,554,027
|
686,758
|
|
3,841,756
|
|
|
|
|
Short-term and long-term interest-bearing loans
and
borrowings
|
870,571
|
131,284
|
|
2,455,704
|
|
|
|
|
|
|
|
|
Equity attributable to equity holders of the
parent
|
7,352,440
|
1,108,765
|
|
7,239,617
|
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SOURCE China Yuchai International Limited