SINGAPORE, Feb. 24, 2016 /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 fourth quarter and the year ended December 31, 2015. The financial information
presented herein for 2015 and 2014 is reported using International
Financial Reporting Standards ("IFRS") as issued by the
International Accounting Standards Board.
Financial Highlights for the Fourth Quarter of 2015
- Net revenue declined to RMB 2.9
billion (US$ 450.7 million)
compared with RMB 3.9 billion in the
fourth quarter of 2014;
- Gross profit was RMB 692.1
million (US$ 106.6 million),
with a gross margin of 23.7% compared with RMB 970.1 million and a gross margin of 24.7% in
the fourth quarter of 2014;
- Operating profit decreased to RMB 162.2
million (US$ 25.0 million)
compared with RMB 391.1 million in
the same quarter of 2014;
- Net earnings attributable to China Yuchai's shareholders
decreased to RMB 59.0 million
(US$ 9.1 million) from RMB 241.2 million in the fourth quarter of
2014;
- Earnings per share were RMB 1.50
(US$ 0.23) compared with RMB 6.31 in the fourth quarter of 2014;
- Total number of engines sold was 60,143 units compared with
93,094 units in the fourth quarter of 2014.
Net revenue for the fourth quarter of 2015 decreased by 25.4% to
RMB 2.9 billion (US$ 450.7 million) compared with RMB 3.9 billion in the fourth quarter of
2014.
The total number of GYMCL engines sold in the fourth quarter of
2015 was 60,143 units compared with 93,094 units in the same
quarter a year ago, representing a decrease of 35.4%. As reported
by the China Association of Automobile Manufacturers ("CAAM"), in
the fourth quarter of 2015, sales of commercial vehicles (excluding
gasoline-powered and electric-powered vehicles) decreased by
4.7%. The market remained weak in the heavy- and medium-duty
truck segments, which registered a decline in sales of 12.2% and
9.0%, respectively. The market was also weak in the heavy- and
medium-duty bus segments, which registered a decline in sales of
29.4% and 31.6%, respectively.
Gross profit decreased by 28.7% to RMB
692.1 million (US$ 106.6
million) compared with RMB 970.1
million in the same quarter of 2014. The gross profit
decline was mainly attributable to lower unit sales in the fourth
quarter of 2015 compared with the same quarter of 2014. Gross
margin was 23.7% in the fourth quarter of 2015 compared with 24.7%
in the same quarter of 2014.
Other operating income was RMB 25.8
million (US$ 4.0 million),
compared with RMB 13.8 million in the
same quarter of 2014. This increase was mainly due to foreign
exchange gain in the fourth quarter of 2015 as compared to a loss
in the corresponding quarter of 2014.
Research and development ("R&D") expenses declined by 7.6%
to RMB 122.5 million (US$ 18.9 million) from RMB
132.6 million in the same quarter of 2014. As a percentage
of net revenue, R&D spending was 4.2% compared with 3.4% 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. Although the market condition softened, the Company
maintained its efforts in R&D to prepare for the transition
from Tier 2 to Tier 3 emission standards in the off-road segment
and continued to introduce new engine models.
Selling, general & administrative ("SG&A") expenses
decreased by 5.9% to RMB 433.3
million (US$ 66.7 million)
from RMB 460.2 million in the fourth
quarter of 2014. SG&A expenses represented 14.8% of net revenue
compared with 11.7% in the fourth quarter of 2014. The increase in
the SG&A percentage was mainly due to the effect of lower unit
sales.
Operating profit decreased by 58.5% to RMB 162.2 million (US$
25.0 million) from RMB 391.1
million in the fourth quarter of 2014. The decrease was
mainly due to lower revenue and lower gross profit in the fourth
quarter of 2015. The operating margin was 5.5% compared with 10.0%
in the fourth quarter of 2014.
Finance costs decreased by 39.5% to RMB
22.1 million (US$ 3.4 million)
from RMB 36.5 million in the same
quarter of 2014. Lower finance costs mainly resulted from lower
costs for term loans.
The share of joint ventures was a gain of RMB 16.3 million (US$ 2.5
million), compared with a loss of RMB
3.6 million in the same quarter of 2014. This was mainly due
to the reversal of impairment made for a joint venture of our
subsidiary that was booked in 2013.
In the fourth quarter of 2015, total net profit attributable to
China Yuchai's shareholders was RMB 59.0
million (US$ 9.1 million), or
earnings per share of RMB 1.50
(US$ 0.23), compared with
RMB 241.2 million, or earnings per
share of RMB 6.31 in the same quarter
in 2014.
Earnings per share in the fourth quarter 2015 was based on a
weighted average of 39,298,340 shares compared with earnings per
share in the fourth quarter 2014 which was based on a weighted
average of 38,195,706 shares. In July
2015, 1,102,634 new shares were issued to shareholders who
elected to receive shares in lieu of dividend in cash.
Financial Highlights 2015
- Net revenue decreased by 16.4% to RMB
13.7 billion (US$ 2.1 billion)
compared with RMB 16.4 billion in
2014;
- Gross profit decreased by 15.2% to RMB
2.8 billion (US$ 429.7
million) with a gross margin of 20.3%, compared
with RMB 3.3 billion and a gross
margin of 20.0% in 2014;
- Operating profit decreased by 37.7% to RMB 805.2 million (US$
124.0 million) compared with RMB 1.3
billion in 2014;
- Earnings per share were RMB 8.81
(US$ 1.36) compared with RMB 19.36 in 2014;
- Total number of engines sold declined by 24.6% to 364,567 units
compared with 483,825 units in 2014.
Net revenue decreased by 16.4% to RMB
13.7 billion (US$ 2.1 billion)
compared with RMB 16.4 billion in
2014.
The total number of engines sold by GYMCL in 2015 was 364,567
units compared with 483,825 units in 2014, representing a decrease
of 119,258 units, or 24.6%. As reported by CAAM, sales of
commercial vehicles (excluding gasoline-powered and
electric-powered vehicles) decreased by 14.4% in 2015. The
market remained weak in the heavy- and medium-duty truck segments,
which registered a decline in sales of 26.0% and 21.0%,
respectively. The market was also weak in the heavy- and
medium-duty bus segments, which registered a decline in sales of
25.5% and 19.8%, respectively.
Gross profit decreased by 15.2% to RMB
2.8 billion (US$ 429.7
million) compared with RMB 3.3
billion in 2014. The gross profit decline was mainly
attributable to lower unit sales. Gross profit margin increased to
20.3% compared with 20.0% in 2014. The higher gross margin was
mainly due to higher average selling price and lower raw material
costs.
Other operating income was RMB 19.3
million (US$ 3.0 million)
compared with RMB 94.9 million in
2014, a decrease of RMB 75.6 million.
This decrease was mainly due to foreign exchange losses and losses
from the disposal of GYMCL's shareholding interest in Xiamen Yuchai
Diesel Engines Co., Ltd. ("Xiamen Factory").
Research and development ("R&D") expenses increased by 2.5%
to RMB 507.0 million (US$ 78.1 million) compared with RMB 494.6 million in 2014. As a percentage of net
revenue, R&D spending was 3.7% compared with 3.0% in 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. Although the
market condition softened, the Company maintained its efforts in
R&D to prepare for the transition from Tier 2 to Tier 3
emission standards in the off-road segment and continued to
introduce new engine models.
Selling, general & administrative ("SG&A") expenses
declined 6.3% to RMB 1.5 billion
(US$ 230.7 million) compared with
RMB 1.6 billion in 2014. SG&A
expenses represented 10.9% of net revenue, compared with 9.7% in
2014. The increase in the SG&A percentage was mainly due to the
effect of lower unit sales.
Operating profit decreased by 37.7% to RMB 805.2 million (US$
124.0 million) from RMB 1.3
billion in 2014. The decrease was mainly due to lower
revenues. The operating margin was 5.9% compared with 7.9% in
2014.
Finance costs declined 25.7% to RMB 116.4
million (US$ 17.9 million)
from RMB 156.7 million in 2014. Lower
finance costs mainly resulted from lower costs for term loans and
less bills discounting.
The share of joint ventures was a loss of RMB 2.9 million (US$ 0.5
million), compared with a loss of RMB
30.7 million in 2014. This was mainly due to the reversal of
impairment made for a joint venture of our subsidiary that was
booked in 2013.
In 2015, there was a loss of RMB 17.3
million (US$ 2.7 million)
relating to Xiamen Factory's disposal. However, in 2014, there
were gains arising from acquisitions of RMB
95.2 million.
The net profit attributable to China Yuchai's shareholders was
RMB 341.1 million (US$ 52.5 million), or earnings per share of
RMB 8.81 (US$
1.36), compared with RMB 730.3
million, or earnings per share of RMB
19.36 in 2014.
Earnings per share were based on a weighted average of
38,712,282 shares compared with earnings per share in 2014 which
were based on a weighted average of 37,720,248 shares. In
July 2015, 1,102,634 new shares were
issued to shareholders who elected to receive shares in lieu of
dividend in cash.
Balance Sheet Highlights as at December 31, 2015
- Cash and bank balances were RMB 3.8
billion (US$ 582.4 million)
compared with RMB 2.5 billion at
December 31, 2014;
- Trade and bills receivables were RMB 7.2
billion (US$ 1,105.5 million)
compared with RMB 8.1 billion at the
end of 2014;
- Inventories were RMB 1.7 billion
(US$ 263.5 million) compared with
RMB 1.9 billion at the end of
2014;
- Short- and long-term borrowings were RMB
2.5 billion (US$ 378.2
million) compared with RMB 2.3
billion at the end of 2014;
- Trade and bills payables were RMB 3.9
billion (US$ 594.5 million)
compared with RMB 4.2 billion at the
end of 2014.
Mr. Weng Ming Hoh, President of
China Yuchai, commented, "2015 was a challenging year for the
diesel engine industry in China
due to the sluggish macroeconomic environment as well as emission
standard transitions in both the on- and off-road segments. We
managed to improve our average selling price and maintained our
profitability despite the decline in unit sales in a weaker than
usual market environment."
"While we wait for the economy to improve, we will continue to
focus on costs control, expanding our product offerings, improving
engine quality and strengthening our financial position," Mr. Hoh
concluded.
Disclaimer Regarding Unaudited Financial Results
Investors should note that the Company has not yet finalized its
consolidated financial results for fiscal year 2015. The financial
information of the Company presented above is unaudited and may
differ materially from the audited financial statements of the
Company for fiscal year 2015 to be released when it is
available.
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 6.4936 =
US$ 1.00, the rate quoted by the
People's Bank of China at the
close of business on December 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 December 31, 2015 or at any other date.
Unaudited Full Year 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 February 24,
2016. 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 dialing +1-866-519-4004 (United States), +800-906-601 (Hong Kong), 400-620-8038 (China) or +65 67135090 (International),
Conference Code: 37474119, 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 2015, GYMCL sold 364,567 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:
Shiwei Yin
Grayling
Tel: +1-646-284-9409
Email: cyd@grayling.com
-- Tables Follow --
CHINA YUCHAI
INTERNATIONAL LIMITED
|
UNAUDITED
CONSOLIDATED INCOME STATEMENTS
|
For the quarters
ended December 31, 2015 and 2014
|
(RMB and US$
amounts expressed in thousands, except per share
data)
|
|
|
December 31,
2015
|
December 31,
2014
|
|
RMB '000
|
US$ '000
|
RMB '000
|
US$ '000
|
Revenue
|
2,926,451
|
450,667
|
3,920,895
|
603,809
|
Cost of goods
sold
|
(2,234,311)
|
(344,079)
|
(2,950,802)
|
(454,417)
|
Gross
profit
|
692,140
|
106,588
|
970,093
|
149,392
|
Other operating
income
|
25,798
|
3,973
|
13,786
|
2,123
|
Research and
development costs
|
(122,478)
|
(18,861)
|
(132,553)
|
(20,413)
|
Selling, distribution
and administrative costs
|
(433,276)
|
(66,724)
|
(460,219)
|
(70,873)
|
Operating
profit
|
162,184
|
24,976
|
391,107
|
60,229
|
Finance
costs
|
(22,067)
|
(3,398)
|
(36,485)
|
(5,619)
|
Share of gain of
associates
|
188
|
29
|
804
|
124
|
Share of gain /
(loss) of joint ventures
|
16,316
|
2,513
|
(3,591)
|
(553)
|
Gains arising from
acquisitions
|
-
|
-
|
-
|
-
|
Profit before
tax
|
156,621
|
24,120
|
351,835
|
54,181
|
Income tax
expense
|
(57,729)
|
(8,890)
|
(27,209)
|
(4,190)
|
Profit for the
period
|
98,892
|
15,230
|
324,626
|
49,991
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
Equity holders of the
parent
|
59,004
|
9,087
|
241,171
|
37,139
|
Non-controlling
interests
|
39,888
|
6,143
|
83,455
|
12,852
|
|
98,892
|
15,230
|
324,626
|
49,991
|
Net earnings per
common share
|
|
|
|
|
Basic
|
1.50
|
0.23
|
6.31
|
0.97
|
Diluted
|
1.50
|
0.23
|
6.31
|
0.97
|
Unit sales
|
60,143
|
|
93,094
|
|
ÂÂÂ
CHINA YUCHAI
INTERNATIONAL LIMITED
|
UNAUDITED
CONSOLIDATED INCOME STATEMENTS
|
For the years
ended December 31, 2015 and 2014
|
(RMB and US$
amounts expressed in thousands, except per share
data)
|
|
|
December 31,
2015
|
December 31,
2014
|
|
RMB '000
|
US$ '000
|
RMB '000
|
US$ '000
|
Revenue
|
13,733,437
|
2,114,919
|
16,436,142
|
2,531,129
|
Cost of goods
sold
|
(10,942,865)
|
(1,685,177)
|
(13,145,152)
|
(2,024,324)
|
Gross
profit
|
2,790,572
|
429,742
|
3,290,990
|
506,805
|
Other operating
income
|
19,337
|
2,978
|
94,892
|
14,613
|
Research and
development costs
|
(506,955)
|
(78,070)
|
(494,594)
|
(76,166)
|
Selling, distribution
and administrative costs
|
(1,497,774)
|
(230,654)
|
(1,598,670)
|
(246,192)
|
Operating
profit
|
805,180
|
123,996
|
1,292,618
|
199,060
|
Finance
costs
|
(116,351)
|
(17,918)
|
(156,670)
|
(24,127)
|
Share of gain of
associates
|
245
|
38
|
956
|
147
|
Share of loss of
joint ventures
|
(2,936)
|
(452)
|
(30,711)
|
(4,729)
|
Gains arising from
acquisitions
|
-
|
-
|
95,192
|
14,659
|
Profit before
tax
|
686,138
|
105,664
|
1,201,385
|
185,010
|
Income tax
expense
|
(176,818)
|
(27,230)
|
(179,638)
|
(27,664)
|
Profit for the
period
|
509,320
|
78,434
|
1,021,747
|
157,346
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
Equity holders of the
parent
|
341,108
|
52,530
|
730,281
|
112,461
|
Non-controlling
interests
|
168,212
|
25,904
|
291,466
|
44,885
|
|
509,320
|
78,434
|
1,021,747
|
157,346
|
Net earnings per
common share
|
|
|
|
|
Basic
|
8.81
|
1.36
|
19.36
|
2.98
|
Dilute
|
8.81
|
1.36
|
19.36
|
2.98
|
Unit sales
|
364,567
|
|
483,825
|
|
CHINA YUCHAI
INTERNATIONAL LIMITED
|
SELECTED UNAUDITED
CONSOLIDATED BALANCE SHEET ITEMS
|
For the years
ended December 31, 2015 and 2014
|
(RMB and US$
amounts expressed in thousands, except per share
data)
|
|
|
As of December 31, 2015
(Unaudited)
|
As of December 31, 2014
(Audited)
|
|
RMB
'000
|
US$
'000
|
RMB
'000
|
|
Cash and bank
balances
|
3,782,123
|
582,439
|
2,509,034
|
Trade and bills
receivables
|
7,178,530
|
1,105,478
|
8,113,095
|
Inventories
|
1,711,330
|
263,541
|
1,921,180
|
Trade and bills
payables
|
3,860,723
|
594,543
|
4,214,289
|
Short-term and
long-term interest bearing loans and borrowings
|
2,455,704
|
378,173
|
2,286,717
|
Equity attributable
to equity holders of the parent
|
7,239,617
|
1,114,885
|
6,988,434
|
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SOURCE China Yuchai International Limited