SINGAPORE, Nov. 10, 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 third quarter
and nine months ended September 30,
2015.
Financial Highlights for the Third Quarter of 2015
- Net revenue declined to RMB 3.0
billion (US$ 472.4 million)
compared with RMB 3.8 billion in the
third quarter of 2014;
- Gross profit was RMB 586.8
million (US$ 92.3 million),
with a gross margin of 19.5% compared with RMB 715.7 million and a gross margin of 19.1% in
the third quarter of 2014;
- Operating profit decreased to RMB 74.2
million (US$ 11.7 million)
compared with RMB 227.6 million in
the third quarter of 2014;
- Net earnings attributable to China Yuchai's shareholders
decreased to RMB 0.35 million
(US$ 0.05 million) from RMB 143.8 million;
- Earnings per share were RMB 0.01
(US 0.14 cents) compared with
RMB 3.77 in the third quarter of
2014;
- Total number of engines sold was 84,170 units compared with
111,023 units in the third quarter of 2014.
Net revenue for the third quarter of 2015 was RMB 3.0 billion (US$ 472.4
million) compared with RMB 3.8
billion in the third quarter of 2014.
The total number of engines sold during the third quarter of
2015 was 84,170 units compared with 111,023 units in the same
quarter a year ago, representing a decrease of 24.2%. As reported
by the China Association of Automobile Manufacturers ("CAAM"), in
the third quarter of 2015, sales of commercial vehicles (excluding
gasoline-powered vehicles) declined by 5.5%. The market
remained weak in the heavy-duty and medium-duty truck and
medium-duty bus segments.
Gross profit was RMB 586.8 million
(US$ 92.3 million) compared with
RMB 715.7 million in the same quarter
of 2014. The gross profit decline was mainly attributable to lower
unit sales in the third quarter of 2015 compared with the same
quarter last year. Gross margin was 19.5% in the third quarter of
2015 compared with 19.1% in the same quarter last year.
Other operating loss was RMB 24.5
million (US$ 3.8 million),
compared with other operating income of RMB
39.6 million in the same quarter last year. This decrease
was mainly due to a loss of RMB 12.5
million from the disposal of GYMCL's entire shareholding
interest in Xiamen Yuchai Diesel Engines Co., Ltd. ("Xiamen
Factory") and foreign exchange revaluation losses. In 2014,
the Company recorded a foreign revaluation gain and waiver of
payable.
Research and development ("R&D") expenses declined by 1.9%
to RMB 132.3 million (US$ 20.8 million) from RMB
134.9 million in the same quarter of 2014. As a percentage
of net revenue, R&D spending was 4.4% compared with 3.6% in the
same quarter of 2014. R&D expenses reflected development and
testing costs as new engines were introduced to the market and
GYMCL continued its initiatives to improve engine
quality.
Selling, general & administrative ("SG&A") expenses of
RMB 355.9 million (US$ 55.9 million) declined from RMB 392.7 million in the third quarter last year,
a decrease of RMB 36.8 million or
9.4%. SG&A expenses represented 11.8% of net revenue compared
with 10.5% in the third quarter of 2014. The increase in the
SG&A percentage was mainly due to the effect of lower sales as
well as higher warranty expenses and provision for doubtful
debts.
Operating profit decreased to RMB 74.2
million (US$ 11.7 million)
from RMB 227.6 million in the third
quarter of 2014. The decrease was mainly due to lower gross profit,
and other operating losses compared with other operating income in
the third quarter of 2014. The operating margin was 2.5% compared
with 6.1% in the third quarter of 2014.
Finance costs decreased by 40.3% to RMB
30.9 million (US$ 4.9 million)
from RMB 51.7 million in the same
quarter last year. Lower finance costs mainly resulted from less
bills discounting.
The share of joint ventures was a loss of RMB 5.9 million (US$ 0.9
million), compared with a loss of RMB
2.9 million in the same quarter of 2014.
In the third quarter of 2015, profit before tax was RMB 37.3 million (US$ 5.9
million), compared with a profit of RMB 268.1 million, a decrease of RMB 230.8 million. In 2015, there was a
loss of RMB 17.3 million relating to
Xiamen Factory's loss from disposal and writing off of certain
plant and equipment. In 2014, there were gains from
acquisitions of RMB 95.2
million.
In the third quarter of 2015, total net profit attributable to
China Yuchai's shareholders was RMB 0.35
million (US$ 0.05 million), or
earnings per share of RMB 0.01 (US
0.14 cents), compared with
RMB 143.8 million, or earnings per
share of RMB 3.77 in the same quarter
in 2014.
Earnings per share in the third quarter 2015 was based on a
weighted average of 39,142,533 shares compared with earnings per
share in the third quarter 2014 which was based on a weighted
average of 38,135,182 shares.
Financial Highlights for the Nine Months ended September 30, 2015
- Net revenue declined to RMB 10.8
billion (US$ 1.7 billion)
compared with RMB 12.5 billion a year
ago;
- Gross profit was RMB 2.1 billion
(US$ 329.9 million), or a gross
margin of 19.4%, compared with RMB 2.3
billion, or a gross margin of 18.5% a year ago;
- Operating profit decreased to RMB 643.0
million (US$ 101.1 million)
compared with RMB 901.5 million a
year ago;
- Earnings per share were RMB 7.32
(US$ 1.15) compared with RMB 13.02 a year ago;
- Total number of engines sold was 304,424 units compared with
390,731 units a year ago.
For the nine months ended September 30,
2015, net revenue was RMB 10.8
billion (US$ 1.7 billion)
compared with RMB 12.5 billion in the
same period last year.
The total number of engines sold during the first nine months of
2015 was 304,424 units compared with 390,731 units in the same
period last year. This decrease of 22.1% compared with the industry
decline of 16.2% in unit sales of commercial vehicles (excluding
gasoline-powered vehicles) for the nine months of 2015, as reported
by CAAM. The market remained weak in the heavy-duty and medium-duty
truck and medium-duty bus segments.
Gross profit was RMB 2.1 billion
(US$ 329.9 million) compared with
RMB 2.3 billion in the same period
last year. The decline was mainly attributable to lower unit sales
compared with the first nine months of 2014. Gross profit margin
increased to 19.4% compared with 18.5% for the first nine months of
2014.
Other operating loss was RMB 6.5
million (US$ 1.0 million)
versus other operating income of RMB 81.1
million in the same period last year, a decrease of
RMB 87.6 million. This decrease
was mainly due to a loss of RMB 12.5
million from the disposal of GYMCL's entire shareholding
interest in Xiamen Factory and foreign exchange revaluation losses.
In 2014, the Company recorded foreign exchange revaluation losses
and waiver of payable.
Research and development ("R&D") expenses increased 6.2% to
RMB 384.5 million (US$ 60.4 million) compared with RMB 362.0 million in the same period in 2014. As
a percentage of net revenue, R&D spending was 3.6% compared
with 2.9% in the first nine months of 2014. R&D expenses
increased mainly due to the ongoing research and development of new
and existing engine products as well as continued initiatives to
improve engine quality.
Selling, general & administrative ("SG&A") expenses
declined 6.5% to RMB 1.06 billion
(US$ 167.3 million) compared with
RMB 1.14 billion in the same period
last year. SG&A expenses represented 9.9% of net revenue for
the first nine months of 2015, compared with 9.1% in the same
period last year.
Operating profit decreased to RMB 643.0
million (US$ 101.1 million)
from RMB 901.5 million in the same
period last year. The decrease was mainly due to lower gross
profit and other operating loss compared with other operating
income in the third quarter of 2014. The operating margin was 5.9%
compared with 7.2% in the same period last year.
Finance costs declined 21.6% to RMB 94.3
million (US$ 14.8 million)
from RMB 120.2 million in the same
period last year, a decrease of RMB 25.9
million. Lower finance costs mainly resulted from less bills
discounting.
The share of joint ventures was a loss of RMB 19.2 million (US$ 3.0
million), a reduction in loss of RMB
7.8 million compared with a loss of RMB 27.0 million in the same period in 2014.
In the nine months ended September 30,
2015, profit before tax was RMB 529.5
million (US$ 83.2 million),
compared with a profit of RMB 849.6
million, a decrease of RMB 320.0
million. In 2015, there was a loss of RMB 17.3 million relating to Xiamen Factory's
loss from disposal and writing off of certain plant and
equipment. In 2014, there were gains from acquisitions of
RMB 95.2 million.
For the nine months ended September 30,
2015, total net profit attributable to China Yuchai's
shareholders was RMB 282.1 million
(US$ 44.3 million), or earnings per
share of RMB 7.32 (US$ 1.15), compared with RMB 489.1 million, or earnings per share of
RMB 13.02 in the same period last
year.
Earnings per share for the nine months ended September 30, 2015 was based on a weighted
average of 38,514,783 shares compared with earnings per share for
the nine months ended September 30,
2014 which was based on a weighted average of 37,560,020
shares.
Balance Sheet Highlights as at September 30, 2015
- Cash and bank balances were RMB 2.4
billion (US$ 380.6 million)
compared with RMB 2.5 billion as at
December 31, 2014.
- Short- and long-term borrowings were RMB
2.7 billion (US$ 419.4
million) compared with RMB 2.3
billion at the end of 2014.
- Net inventory was RMB 1.7 billion
(US$ 263.1 million) compared with
RMB 1.9 billion at the end of
2014.
Mr. Weng Ming Hoh, President of
China Yuchai, commented, "The Company has maintained its
profitability despite the third quarter decline and the weaker than
usual demand in the commercial vehicle market. The challenging
market environment was aggravated by lower than expected economic
growth in China. We responded by
increasing our efficiency through the disposal of Xiamen Factory
and consolidating our manufacturing and assembly operations in
Yulin. We continue to emphasize operational efficiency and cost
controls to increase profitability."
"The near-term outlook remains uncertain, but we are encouraged
by the Chinese government's policies to ensure stability of its
economy. We continue to look for ways to strengthen our balance
sheet and enhance shareholder value."
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 6.3613 =
US$ 1.00, the rate quoted by the
People's Bank of China at the
close of business on September 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 September 30, 2015 or at any other date.
Third Quarter 2015 Conference Call
A conference call and audio webcast for the investment community
has been scheduled for 8:00 A.M. Eastern
Standard Time on November 10,
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 on 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: 59701094, 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 INCOME STATEMENTS
|
For the quarters
ended September 30, 2015 and 2014
|
(RMB and US$
amounts expressed in thousands, except per share
data)
|
|
|
September 30,
2015
|
September 30,
2014
|
|
RMB
'000
|
US$
'000
|
RMB
'000
|
US$
'000
|
Revenue
|
3,005,080
|
472,400
|
3,752,189
|
589,846
|
Cost of goods
sold
|
(2,418,247)
|
(380,150)
|
(3,036,483)
|
(477,337)
|
Gross
profit
|
586,833
|
92,250
|
715,706
|
112,509
|
Other operating
(expense)/income
|
(24,462)
|
(3,845)
|
39,574
|
6,221
|
Research and
development costs
|
(132,320)
|
(20,801)
|
(134,939)
|
(21,212)
|
Selling, distribution
and administrative costs
|
(355,900)
|
(55,948)
|
(392,725)
|
(61,737)
|
Operating
profit
|
74,151
|
11,656
|
227,616
|
35,781
|
Finance
costs
|
(30,903)
|
(4,858)
|
(51,729)
|
(8,132)
|
Share of loss of
associates
|
(6)
|
(1)
|
(3)
|
-
|
Share of loss of
joint ventures
|
(5,922)
|
(931)
|
(2,929)
|
(460)
|
Gains arising from
acquisitions
|
-
|
-
|
95,192
|
14,964
|
Profit before
tax
|
37,320
|
5,866
|
268,147
|
42,153
|
Income tax
expense
|
(18,982)
|
(2,984)
|
(38,068)
|
(5,984)
|
Profit for the
period
|
18,338
|
2,882
|
230,079
|
36,169
|
Attributable
to:
|
|
|
|
|
Equity holders of the
parent
|
349
|
54
|
143,785
|
22,604
|
Non-controlling
interests
|
17,989
|
2,828
|
86,294
|
13,565
|
|
18,338
|
2,882
|
230,079
|
36,169
|
Net earnings per
common share:
|
|
|
|
|
Basic
|
0.01
|
0.0014
|
3.77
|
0.59
|
Diluted
|
0.01
|
0.0014
|
3.77
|
0.59
|
Unit sales
|
84,170
|
|
111,023
|
|
CHINA YUCHAI
INTERNATIONAL LIMITED
|
UNAUDITED
CONSOLIDATED INCOME STATEMENTS
|
For the nine
months ended September 30, 2015 and 2014
|
(RMB and US$
amounts expressed in thousands, except per share
data)
|
|
September 30,
2015
|
September 30,
2014
|
|
RMB
'000
|
US$
'000
|
RMB
'000
|
US$
'000
|
Revenue
|
10,806,986
|
1,698,864
|
12,515,247
|
1,967,404
|
Cost of goods
sold
|
(8,708,554)
|
(1,368,990)
|
(10,194,350)
|
(1,602,558)
|
Gross
profit
|
2,098,432
|
329,874
|
2,320,897
|
364,846
|
Other operating
(expense)/income
|
(6,461)
|
(1,016)
|
81,106
|
12,750
|
Research and
development costs
|
(384,477)
|
(60,440)
|
(362,041)
|
(56,913)
|
Selling, distribution
and administrative costs
|
(1,064,498)
|
(167,340)
|
(1,138,450)
|
(178,965)
|
Operating
profit
|
642,996
|
101,078
|
901,512
|
141,718
|
Finance
costs
|
(94,284)
|
(14,822)
|
(120,185)
|
(18,893)
|
Share of profit of
associates
|
57
|
9
|
152
|
24
|
Share of loss of
joint ventures
|
(19,252)
|
(3,026)
|
(27,120)
|
(4,263)
|
Gains arising from
acquisitions
|
-
|
-
|
95,192
|
14,964
|
Profit before
tax
|
529,517
|
83,239
|
849,551
|
133,550
|
Income tax
expense
|
(119,089)
|
(18,721)
|
(152,429)
|
(23,962)
|
Profit for the
period
|
410,428
|
64,518
|
697,122
|
109,588
|
Attributable
to:
|
|
|
|
|
Equity holders of the
parent
|
282,104
|
44,346
|
489,111
|
76,889
|
Non-controlling
interests
|
128,324
|
20,172
|
208,011
|
32,699
|
|
410,428
|
64,518
|
697,122
|
109,588
|
Net earnings per
common share:
|
|
|
|
|
Basic
|
7.32
|
1.15
|
13.02
|
2.05
|
Diluted
|
7.32
|
1.15
|
13.02
|
2.05
|
Unit sales
|
304,424
|
|
390,731
|
|
CHINA YUCHAI
INTERNATIONAL LIMITED
|
SELECTED UNAUDITED
CONSOLIDATED BALANCE SHEET ITEMS
|
(RMB and US$
amounts expressed in thousands)
|
|
As of September
30, 2015
(Unaudited)
|
As of December 31,
2014
(Audited)
|
|
RMB
'000
|
US$
'000
|
RMB
'000
|
Cash and bank
balances
|
2,421,155
|
380,607
|
2,509,034
|
Trade and bills
receivables
|
9,116,666
|
1,433,145
|
8,113,094
|
Inventories
|
1,673,509
|
263,077
|
1,921,180
|
Trade and bills
payables
|
4,245,794
|
667,441
|
4,214,289
|
Short-term and
long-term interest
bearing loans and borrowings
|
2,668,046
|
419,418
|
2,286,717
|
Equity attributable
to equity holders
of the parent
|
7,177,376
|
1,128,288
|
6,988,432
|
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SOURCE China Yuchai International Limited