SINGAPORE, Oct. 6, 2015 /PRNewswire/ -- China Yuchai
International Limited (NYSE: CYD) ("China Yuchai" or the
"Company") announced today that its main subsidiary, Guangxi
Yuchai Machinery Company Limited ("GYMCL"), has entered into an
equity transfer agreement ("Agreement") to sell its 100%
shareholding interest in Xiamen Yuchai Diesel Engines Co., Ltd.
("Xiamen Yuchai") to a third party. This transaction has been
approved by the Xiamen Industry and Commerce Administration
Bureau.
Pursuant to the Agreement, GYMCL will receive a total
consideration of RMB189.5 million. On
a preliminary basis, GYMCL expects to record a loss of RMB 17.6 million from this transaction.
Xiamen Yuchai was established in December
2006 to facilitate the construction of a new diesel engine
assembly factory in Xiamen,
Fujian Province, mainly for
6-cylinder heavy-duty diesel engines. Commercial production at
Xiamen Yuchai commenced in September 2009. With a total
investment of RMB 200 million and
annual production capacity of 100,000 units, the intended aim of
this assembly facility was to supply to several large customers of
GYMCL in the surrounding region. After the disposal, GYMCL will
continue to serve these customers from its main manufacturing base
in Yulin City.
Weng Ming Hoh, President of China
Yuchai, commented, "We believe that the consolidation of our
facilities will create more value for our shareholders. The
operating environment has changed since the commencement of
production at Xiamen Yuchai in 2009. With this disposal, we are
able to become more efficient and cost-effective as we consolidate
our operations back to Yulin City. In this current challenging
environment, we will continue to explore cost-saving initiatives
while maintaining our market leadership by providing high-quality
engine products and best-in-class services to all our customers
throughout China."
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",
"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
Grayling
Tel: +1-646-284-9409
Email: cyd@grayling.com
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SOURCE China Yuchai International Limited