SINGAPORE, Aug. 11, 2015 /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,
2015. The financial information presented herein for the
second quarter of 2015 and 2014 is reported using International
Financial Reporting Standards as issued by the International
Accounting Standards Board.
Financial highlights for the second quarter of 2015
- Revenue was RMB 4.1 billion
(US$674.2 million) compared
with RMB 4.2 billion in the second quarter of 2014;
- Gross profit increased 2.5% to RMB 837.2
million (US$136.9 million), a
20.3% gross margin compared with RMB 816.8
million and a gross margin of 19.4% in the second quarter of
2014;
- Operating margin was 8.3% compared with 7.8% in the same
quarter a year ago;
- Net earnings attributable to China Yuchai's shareholders rose
6.7% to RMB 176.4 million
(US$28.9 million) compared with
RMB 165.4 million in the second
quarter of 2014;
- Earnings per share was RMB 4.62
(US$0.76) compared with RMB 4.44 for the same quarter in 2014;
- Total number of engines sold was 115,208 units compared with
127,799 units in the second quarter of 2014.
Unaudited Second Quarter 2015 Results
Revenue for the second quarter of 2015 declined 2.1% to
RMB 4.1 billion (US$674.2 million) compared to RMB 4.2 billion in the second quarter of 2014.
The total number of engines sold by GYMCL during the second
quarter of 2015 was 115,208 units compared with 127,799 units in
the same quarter in 2014, a 9.9% decrease. GYMCL's decline in
unit sales was mainly due to the general weakness of the commercial
vehicle market in China and
general slowdown in China's
economy. This was partially offset by the growth in sales of
agriculture applications in the second quarter of 2015. The
commercial vehicle industry in China experienced a steeper decline of 14.2%
in year-over-year unit sales (excluding gasoline-powered vehicles)
in the second quarter of 2015, as reported by the China Association
of Automobile Manufacturers ("CAAM"). The decline of 2.1% in net
revenue was less than the 9.9% decline in unit sales due to sales
of more higher-priced National IV and V engines in the second
quarter of 2015.
Gross profit increased 2.5% to RMB 837.2
million (US$136.9 million)
compared with RMB 816.8 million in
the second quarter of 2014. Gross margin increased to 20.3% in the
second quarter of 2015 compared with 19.4% a year ago. This
increase was mainly attributable to lower material costs and
efficiency gains.
Other operating income was RMB 16.5
million (US$2.7 million),
compared with RMB 12.0 million in the
second quarter of 2014.
Research and development ("R&D") expenses increased 13.6% to
RMB 138.9 million (US$22.7 million) from RMB
122.2 million in the second quarter of 2014. The increase of
RMB 16.7 million was mainly due to
the Company's ongoing research and development of new engine
products compliant with National V, VI & Tier 3 emission
standards and its continued initiatives to improve engine
performance and quality. As a percentage of revenue, R&D
spending increased to 3.4% compared with 2.9% in the second quarter
of 2014.
Selling, general and administrative ("SG&A") expenses
decreased to RMB 374.1 million
(US$61.2 million) from RMB 379.5 million in the second quarter of 2014.
The decline of RMB 5.4 million
primarily resulted from lower unit sales in the second quarter of
2015. SG&A expenses represented 9.1% of revenue compared with
9.0% in the same quarter a year ago.
Operating profit increased to RMB 340.7
million (US$55.7 million) from
RMB 327.2 million in the second
quarter of 2014. The RMB 13.5 million
increase in operating profit was mainly due to higher gross profit.
The operating margin was 8.3% compared with 7.8% in the second
quarter of 2014.
Finance costs decreased to RMB 29.8
million (US$4.9 million) from
RMB 30.7 million in the second
quarter of 2014, a decrease of RMB 0.9
million or 2.9%.
The Company's share in the loss of joint ventures was
RMB 6.5 million (US$1.1 million) compared with a loss of
RMB 9.0 million in the second quarter
of 2014.
For the quarter ended June 30,
2015, total net profit attributable to China Yuchai's
shareholders was RMB 176.4 million
(US$28.9 million), or earnings per
share of RMB 4.62 (US$0.76), compared with RMB 165.4 million, or earnings per share of
RMB 4.44 in the same quarter in
2014.
The earnings per share in the second quarter of 2015 was based
on a weighted average of 38,195,706 shares compared with earnings
per share in the second quarter of 2014 which was based on a
weighted average of 37,267,673 shares. In July 2015, a total of 1,102,634 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, 2015
- Revenue was RMB 7.8 billion
(US$1.3 billion) compared with
RMB 8.8 billion in the same period
last year;
- Gross profit was RMB 1.5 billion
(US$247.3 million), a 19.4% gross
margin, compared with RMB 1.6 billion
and a gross margin of 18.3% in the first six months of
2014;
- Operating profit was RMB 568.8
million (US$93.0 million)
compared with RMB 673.9 million in the same period in
2014;
- Earnings per share decreased to RMB
7.38 (US$1.21) from
RMB 9.27 in the same period a year
ago;
- Total number of engines sold was 220,254 units compared with
279,708 units in the same period of 2014.
Revenue was RMB 7.8 billion
(US$1.3 billion) compared with
RMB 8.8 billion in the same period
last year. The decrease in revenue was RMB
1.0 billion, as compared with the same period in 2014.
The total number of engines sold by GYMCL was 220,254 units
compared with 279,708 units in the same period of 2014,
representing a decrease of 59,454 units, or 21.3%. The decrease in
GYMCL's engine sales was mainly due to the general weakness of the
commercial vehicle market in China
and the general slowdown in China's economy. This was partially offset by
the growth in sales of agriculture applications in the first half
of 2015. The commercial vehicle industry in China experienced a decline of 20.1% in unit
sales (excluding gasoline-powered vehicles), led by a 31.1%
decrease in heavy-duty truck sales in the first six months of 2015,
as reported by CAAM.
Gross profit was RMB 1.5 billion
(US$247.3 million) compared with
RMB 1.6 billion in the same period
last year. Gross margin increased to 19.4% as compared with 18.3% a
year ago. This increase was mainly attributable to lower material
costs and efficiency gains.
Other operating income was RMB 18.0
million (US$2.9 million), a
decrease of RMB 23.5 million from
RMB 41.5 million in the same period
last year. This decrease was mainly due to higher foreign exchange
revaluation losses and increased losses from the disposal of fixed
assets.
Research and development ("R&D") expenses were RMB 252.2 million (US$41.2
million) compared with RMB 227.1
million in the same period in 2014, an increase of 11.0%.
The increase in R&D expenses of RMB 25.1
million was mainly due to higher spending in the research
and development of new engine products compliant with National V,
VI and Tier 3 emission standards and continued initiatives to
improve engine performance and quality. As a percentage of revenue,
R&D spending was 3.2% in the first six months of 2015 compared
with 2.6% in the same period in 2014.
Selling, general & administrative ("SG&A") expenses were
RMB 708.6 million (US$115.9 million), down from RMB 745.7 million in the same period in 2014, a
decrease of RMB 37.1 million or 5.0%.
The decrease in expenses was mainly due to lower unit sales in the
first six months of 2015 as compared with the same period in 2014.
SG&A expenses represented 9.1% of revenue for the first six
months of 2015, compared with 8.5% in the same period last
year.
Operating profit decreased to RMB 568.8
million (US$93.0 million) from
RMB 673.9 million in the same period
in 2014. The decrease of RMB 105.1
million was mainly due to lower gross profit and higher
R&D expenses. The operating margin was 7.3% compared with 7.7%
in the same period last year.
Finance costs declined to RMB 63.4
million (US$10.4 million) from
RMB 68.5 million in the same period
last year, a decrease of RMB 5.1
million or 7.4%. The lower finance costs mainly resulted
from a reduction in the cost of borrowings.
The Company's share in the loss of joint ventures was
RMB 13.3 million (US$2.2 million) compared with a loss of
RMB 24.2 million in the same period
in 2014. The reduction in loss was mainly due to the cessation of a
joint venture entity in 2015.
For the six months ended June 30,
2015, total net profit attributable to China Yuchai's
shareholders was RMB 281.8 million
(US$46.1 million), or earnings per
share of RMB 7.38 (US$1.21), compared with RMB 345.3 million, or earnings per share of
RMB 9.27 in the same period in
2014.
Balance Sheet Highlights as at June
30, 2015
- Cash and bank balances increased 33.9% to RMB 3.4 billion (US$549.4
million) compared with RMB 2.5
billion at the end of 2014;
- Trade and bills receivables were RMB 7.7
billion (US$1.3 billion)
compared with RMB 8.1 billion at the
end of 2014;
- Short-term and long-term interest-bearing loans and borrowings
were RMB 2.3 billion (US$380.9 million), similar to the end of
2014;
- Inventories were RMB 1.9 billion
(US$314.4 million), similar to the
end of 2014;
- Trade and bills payables was RMB 4.5
billion (US$728.8 million)
compared with RMB 4.2 billion at the
end of 2014.
Mr. Weng Ming Hoh, President of
China Yuchai, commented, "While both the industry and competitive
landscape are experiencing adverse headwinds, our second quarter
2015 profit was better than last year demonstrating the
resilience of our Company. We have shown that we are among the
best-in-class independent engine makers in China with a wide array of product offerings.
China is now strictly enforcing
higher emission standards nationwide, and we were able to increase
sales of National IV and V engines. As a result, our average sales
price and gross profit margin improved in the second quarter."
"In these challenging times, we tightened controls on our
capital expenditures and implemented a variety of cost-saving
measures. We will continue to exercise strict financial discipline
to improve the balance sheet and protect our cash position," 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 6.1136 =
US$1.00, the rate quoted by the
People's Bank of China at the
close of business on June 30, 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 June 30,
2015 or at any other date.
Unaudited Second 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 August 11,
2015. The call will be hosted by the President and Chief
Financial Officer of China Yuchai, Mr. Weng
Ming Hoh and Mr. Kok Ho Leong
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 dialling +1-866-519-4004 (United States), +800-906-601 (Hong Kong), 400-620-8038 (China) or +65 67135090 (International),
Conference Code: 82762132, 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 June 30, 2015 and 2014
|
(RMB and US$
amounts expressed in thousands, except per share
data)
|
|
|
June 30,
2015
|
June 30,
2014
|
|
RMB
'000
|
US$
'000
|
RMB
'000
|
US$
'000
|
Revenue
|
4,121,904
|
674,219
|
4,212,298
|
689,005
|
Cost of goods
sold
|
(3,284,735)
|
(537,283)
|
(3,395,460)
|
(555,395)
|
Gross
profit
|
837,169
|
136,936
|
816,838
|
133,610
|
Other operating
income
|
16,499
|
2,699
|
12,035
|
1,969
|
Research and
development costs
|
(138,855)
|
(22,712)
|
(122,183)
|
(19,985)
|
Selling, distribution
and administrative costs
|
(374,101)
|
(61,192)
|
(379,509)
|
(62,076)
|
Operating
profit
|
340,712
|
55,731
|
327,181
|
53,518
|
Finance
costs
|
(29,755)
|
(4,867)
|
(30,656)
|
(5,014)
|
Share of
profit/(loss) of associates
|
36
|
6
|
(61)
|
(10)
|
Share of loss of
joint ventures
|
(6,547)
|
(1,071)
|
(9,021)
|
(1,476)
|
Profit before
tax
|
304,446
|
49,799
|
287,443
|
47,018
|
Income tax
expense
|
(60,741)
|
(9,935)
|
(58,180)
|
(9,516)
|
Profit for the
period
|
243,705
|
39,864
|
229,263
|
37,502
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
Equity holders of the
parent
|
176,400
|
28,855
|
165,361
|
27,050
|
Non-controlling
interests
|
67,305
|
11,009
|
63,902
|
10,452
|
|
243,705
|
39,864
|
229,263
|
37,502
|
|
|
|
|
|
Net earnings per
common share
|
4.62
|
$
0.76
|
4.44
|
$
0.73
|
Unit sales
|
115,208
|
|
127,799
|
|
CHINA YUCHAI
INTERNATIONAL LIMITED
|
UNAUDITED
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
|
For the six months
ended June 30, 2015 and 2014
|
(RMB and US$
amounts expressed in thousands, except per share
data)
|
|
|
June 30,
2015
|
June 30,
2014
|
|
RMB
'000
|
US$
'000
|
RMB
'000
|
US$
'000
|
Revenue
|
7,801,906
|
1,276,156
|
8,763,058
|
1,433,371
|
Cost of goods
sold
|
(6,290,307)
|
(1,028,904)
|
(7,157,867)
|
(1,170,810)
|
Gross
profit
|
1,511,599
|
247,252
|
1,605,191
|
262,561
|
Other operating
income
|
18,001
|
2,944
|
41,531
|
6,793
|
Research and
development costs
|
(252,157)
|
(41,245)
|
(227,102)
|
(37,147)
|
Selling, distribution
and administrative costs
|
(708,598)
|
(115,905)
|
(745,725)
|
(121,978)
|
Operating
profit
|
568,845
|
93,046
|
673,895
|
110,229
|
Finance
costs
|
(63,381)
|
(10,367)
|
(68,456)
|
(11,197)
|
Share of profit of
associates
|
63
|
10
|
155
|
25
|
Share of loss of
joint ventures
|
(13,330)
|
(2,180)
|
(24,191)
|
(3,957)
|
Profit before
tax
|
492,197
|
80,509
|
581,403
|
95,100
|
Income tax
expense
|
(100,107)
|
(16,374)
|
(114,361)
|
(18,706)
|
Profit for the
period
|
392,090
|
64,135
|
467,042
|
76,394
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
Equity holders of the
parent
|
281,755
|
46,088
|
345,325
|
56,485
|
Non-controlling
interests
|
110,335
|
18,047
|
121,717
|
19,909
|
|
392,090
|
64,135
|
467,042
|
76,394
|
|
|
|
|
|
Net earnings per
common share
|
7.38
|
$
1.21
|
9.27
|
$
1.52
|
Unit sales
|
220,254
|
|
279,708
|
|
|
|
|
|
|
|
|
|
CHINA YUCHAI
INTERNATIONAL LIMITED
|
SELECTED UNAUDITED
CONSOLIDATED BALANCE SHEET ITEMS
|
(RMB and US$
amounts expressed in thousands)
|
|
|
As of June 30,
2015
|
As of December 31,
2014
(audited)
|
|
RMB'000
|
US$'000
|
RMB'000
|
Cash and bank
balances
|
3,358,830
|
549,403
|
2,509,034
|
Trade and bills
receivables
|
7,678,095
|
1,255,904
|
8,113,094
|
Inventories
|
1,922,041
|
314,388
|
1,921,180
|
Trade and bills
payables
|
4,455,386
|
728,766
|
4,214,289
|
Short-term and
long-term interest-bearing
loans and borrowings
|
2,328,542
|
380,879
|
2,286,717
|
Equity attributable
to equity holders of the
parent
|
7,019,074
|
1,148,108
|
6,988,432
|
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SOURCE China Yuchai International Limited