SINGAPORE, May 7, 2015 /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, 2015. The financial information presented herein for the
first quarter of 2015 and 2014 is reported using International
Financial Reporting Standards as issued by the International
Accounting Standards Board.
Financial highlights for the first quarter of 2015
- Revenue was RMB 3.7 billion
(US$599.1 million) compared with
RMB 4.6 billion in the first quarter
of 2014;
- Gross profit was RMB 674.4
million (US$109.8 million), a
18.3% gross margin compared with RMB 788.4
million and a gross margin of 17.3% in the first quarter of
2014;
- Operating profit was RMB 228.1
million (US$37.1 million)
compared with RMB 346.7 million in
the same quarter a year ago;
- Net earnings attributable to China Yuchai's shareholders were
RMB 105.4 million (US$17.2 million) compared with RMB 180.0 million in the first quarter of 2014;
- Earnings per share were RMB 2.76
(US$0.45) compared with RMB 4.83 for the same quarter in 2014;
- Total number of engines sold was 105,046 units compared with
151,909 units in the first quarter of 2014.
Unaudited First Quarter 2015 Results
Revenue for the first quarter of 2015 decreased 19.1% to
RMB 3.7 billion (US$599.1 million) from RMB
4.6 billion in the first quarter of 2014. The total number
of engines sold by GYMCL during the first quarter of 2015 was
105,046 units compared with 151,909 units in the same quarter in
2014, representing a decrease of 46,863 units, or 30.8%. This was
mainly due to the weak commercial vehicle market and economic
slowdown in China in the first
quarter of 2015. This decrease was comparable to the industry
decline of 25.6% in commercial vehicle sales including a 29.2%
decrease in truck sales mainly due to a 33.7% reduction in
heavy-duty truck sales in the first quarter of 2015, as reported by
the China Association of Automobile Manufacturers in commercial
vehicle sales data (excluding petrol-powered vehicles).
Gross profit was RMB 674.4 million
(US$109.8 million) compared with
RMB 788.4 million in the first
quarter of 2014. Gross margin increased to 18.3% in the first
quarter of 2015 compared with 17.3% in the same quarter last year.
The higher gross margin was mainly attributable to a lower raw
material costs and change in sales mix in the first quarter of
2015.
Other income was RMB 1.5 million
(US$0.2 million), compared with
RMB 29.5 million in the first quarter
of 2014. This decrease was mainly due to unrealized foreign
exchange revaluation losses as compared to a gain in the first
quarter last year which contributed to a movement of RMB 24.5 million.
Research and development ("R&D") expenses increased by 8.0%
to RMB 113.3 million (US$18.4 million) from RMB
104.9 million in the first quarter of 2014. The increase was
mainly due to the development of new engines as well as continued
initiatives to improve engine quality. In the first quarter of
2015, R&D activities focused on emission standard compliance,
exhaust after treatment system integration and fuel efficiency
improvement. The Company is also expanding the number of engines
compliant with Tier 3 emission standards for off-road applications.
As a percentage of revenue, R&D spending increased to 3.1%
compared with 2.3% in the first quarter of 2014.
Selling, general and administrative ("SG&A") expenses were
RMB 334.5 million (US$54.5 million), a decrease from RMB 366.2 million in the first quarter of 2014.
SG&A expenses represented 9.1% of revenue compared with 8.0% in
the same quarter a year ago. The higher percentage in the first
quarter of 2015 was mainly due to lower sales revenue.
Operating profit decreased to RMB 228.1
million (US$37.1 million) from
RMB 346.7 million in the first
quarter of 2014. The operating margin was 6.2% compared with 7.6%
in the first quarter of 2014.
Finance costs decreased to RMB 33.6
million (US$5.5 million) from
RMB 37.8 million in the first quarter
of 2014, a decrease of RMB 4.2
million or 11.0%. Lower finance costs mainly resulted from a
reduction in the cost of borrowings.
Share of joint ventures was a loss of RMB
6.8 million (US$1.1 million)
compared with a loss of RMB 15.2
million in the first quarter of 2014.
Profit before tax was RMB 187.8
million (US$30.6 million)
compared with RMB 294.0 million in
the first quarter of 2014. This was mainly due to lower sales
volume and higher unrealized revaluation foreign exchange
losses.
In the first quarter of 2015, total net profit attributable to
China Yuchai's shareholders was RMB 105.4
million (US$17.2 million), or
earnings per share of RMB 2.76
(US$0.45) compared with RMB 180.0 million, or earnings per share of
RMB 4.83 in the same quarter in
2014.
Earnings per share in the first quarter of 2015 was based on a
weighted average of 38,195,706 shares compared with 37,267,673
shares in the first quarter of 2014. 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 March
31, 2015
- Cash and bank balances were RMB 2.4
billion (US$392.4 million)
compared with RMB 2.5 billion at the
end of 2014;
- Short-term and long-term interest-bearing loans and borrowings
were RMB 2.7 billion (US$432.7 million) compared with RMB 2.3 billion at the end of 2014;
- Inventories were RMB 2.3 billion
(US$370.8 million) compared with
RMB 1.9 billion at the end of
2014.
Mr. Weng Ming Hoh, President of
China Yuchai, commented, "Our sales results in the first quarter of
2015 reflected the impact of both a slowing economy and reduced
commercial vehicle demand. We were also affected by the pre-buying
of commercial vehicles compliant with National III emission
standards whereby sales were brought forward to 2014 before the
strict enforcement of the National IV emission standards nationwide
on January 1, 2015. Truck sales were
particularly affected and heavy-duty truck sales declined 33.7% in
the first quarter of 2015."
"We anticipated this challenging environment and made
adjustments to our operations to manage production in line with
current requirements. We continue to execute our diversification
strategy as we added new diesel and natural gas engines for the
truck market, and for the bus market to enhance our leadership
there. We are using our new high horsepower engines to further
penetrate the off-road markets. We will continue to maintain
discipline in the management of our balance sheet in a changing
business environment in China."
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 6.1422 =
US$1.00, the rate quoted by the
People's Bank of China at the
close of business on March 31, 2015.
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,
2015 or at any other date.
Unaudited First Quarter 2015 Conference
Call
A conference call and audio webcast for the investment community
has been scheduled for 8:00 A.M. Eastern
Daylight Time on May 7, 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 (Mainland China) or +656-723-9381 (International),
Conference Code: 29794356, 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 STATEMENTS OF PROFIT OR LOSS
|
For the quarters
ended March 31, 2015 and 2014
|
(RMB and US$
amounts expressed in thousands, except per share
data)
|
|
March 31,
2015
|
March 31,
2014
|
|
RMB
|
US$
|
RMB
|
US$
|
Revenue
|
3,680,002
|
599,134
|
4,550,760
|
740,901
|
Cost of goods
sold
|
(3,005,572)
|
(489,332)
|
(3,762,407)
|
(612,550)
|
Gross
profit
|
674,430
|
109,802
|
788,353
|
128,351
|
Other
income
|
1,502
|
245
|
29,496
|
4,802
|
Research and
development costs
|
(113,302)
|
(18,446)
|
(104,919)
|
(17,082)
|
Selling, general and
administrative expenses
|
(334,497)
|
(54,459)
|
(366,216)
|
(59,623)
|
Operating
profit
|
228,133
|
37,142
|
346,714
|
56,448
|
Finance
costs
|
(33,626)
|
(5,475)
|
(37,800)
|
(6,154)
|
Share of profit of
associates
|
27
|
4
|
216
|
35
|
Share of loss of
joint ventures
|
(6,783)
|
(1,104)
|
(15,170)
|
(2,470)
|
Profit before
tax
|
187,751
|
30,567
|
293,960
|
47,859
|
Income tax
expense
|
(39,366)
|
(6,409)
|
(56,181)
|
(9,147)
|
Profit for the
period
|
148,385
|
24,158
|
237,779
|
38,712
|
Attributable
to:
|
|
|
|
|
Equity holders of the
parent
|
105,355
|
17,152
|
179,964
|
29,299
|
Non-controlling
interests
|
43,030
|
7,006
|
57,815
|
9,413
|
|
148,385
|
24,158
|
237,779
|
38,712
|
|
|
|
|
|
Net earnings per
common share
|
2.76
|
0.45
|
4.83
|
0.79
|
|
|
|
|
|
Unit sales
|
105,046
|
|
151,909
|
|
CHINA YUCHAI
INTERNATIONAL LIMITED
|
SELECTED UNAUDITED
CONSOLIDATED BALANCE SHEET ITEMS
|
(RMB and US$
amounts expressed in thousands)
|
|
As of March 31,
2015
|
As of December 31,
2014
(audited)
|
|
RMB
|
US$
|
RMB
|
Cash and bank
balances
|
2,410,137
|
392,390
|
2,509,034
|
Trade and bills
receivables
|
8,654,609
|
1,409,041
|
8,113,094
|
Inventories
|
2,277,315
|
370,765
|
1,921,180
|
Trade and bills
payables
|
4,749,510
|
773,259
|
4,214,289
|
Short-term and
long-term interest-bearing
loans and
borrowings
|
2,657,742
|
432,702
|
2,286,717
|
Equity attributable
to equity holders of the
parent
|
7,100,949
|
1,156,092
|
6,988,432
|
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SOURCE China Yuchai International Limited