China Yuchai Sells Xiamen Plant and Consolidates Assembly Operations
Singapore, Singapore October 6, 2015 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 Companys
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 Companys 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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