SINGAPORE, Nov. 9, 2016 /PRNewswire/ -- China Yuchai
International Limited (NYSE: CYD) ("China Yuchai" or the
"Company"), a leading manufacturer and distributor of engines for
on- 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,
2016.
Financial Highlights for the Third Quarter of 2016
- Net revenue declined to RMB 2.9
billion (US$ 432.1 million)
compared with RMB 3.0 billion in the
third quarter of 2015;
- Gross profit was RMB 630.7
million (US$ 94.5 million),
with gross margin increasing to 21.9% compared with RMB 586.8 million and a gross margin of 19.5% in
the third quarter of 2015;
- Operating profit increased 117.2% to RMB
161.1 million (US$ 24.1
million) compared with RMB 74.2
million in the third quarter of 2015;
- Net earnings attributable to China Yuchai's shareholders
increased to RMB 76.8 million
(US$ 11.5 million) from RMB 0.3 million;
- Earnings per share were RMB 1.89
(US$ 0.28) compared with RMB 0.01 in the third quarter of 2015;
- Total number of engines sold was 66,013 units compared with
84,170 units in the third quarter of 2015.
The net revenue for the third quarter of 2016 declined by 4.0%
to RMB 2.9 billion (US$ 432.1 million) from RMB 3.0 billion for the same quarter last
year.
The total number of engines sold was 66,013 units as compared
with 84,170 units for the same period last year, a reduction of
21.6%. According to the China Association of Automobile
Manufacturers ("CAAM"), in the third quarter of 2016, sales of
commercial vehicles (excluding gasoline-powered and electric
vehicles) increased by 10.5% led by an increase of 15.4% in the
truck segment whereas sales in the bus segment decreased by 13.1%.
China Yuchai's sales reflected these trends as our engine sales to
the truck segment increased whereas sales to the bus segment
decreased compared with the same quarter last year. Sales of
marine and power generation engines increased as compared with the
same quarter last year. As a result of the transition to Tier
3 emission standard in the off-highway segment, sales to the
agricultural segment declined as compared with the same quarter
last year.
Gross profit was RMB 630.7 million
(US$ 94.5 million) compared with
RMB 586.8 million in the same quarter
last year. The gross profit margin increased by 2.4% to 21.9%
compared with 19.5% in the same quarter last year. The
increase on gross profit margin was mainly due to lower raw
material costs and better product mix.
Other operating income was RMB 12.4
million (US$ 1.9 million)
compared with other operating loss of RMB
24.5 million in the same quarter last year. The
improvement resulted mainly from lower foreign exchange revaluation
losses. There was also a loss of RMB
12.5 million in the third quarter of 2015 which resulted
from the disposal of GYMCL's entire shareholding interest in Xiamen
Yuchai Diesel Engines Co., Ltd. ("Xiamen Factory").
Research and development ("R&D") expenses increased by 22.0%
to RMB 161.4 million (US$ 24.2 million) from RMB
132.3 million in the same quarter last year. 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. As a
percentage of net revenue, R&D spending was 5.6% as compared
with 4.4% in the same quarter last year.
Selling, general & administrative ("SG&A") expenses
declined by RMB 35.3 million, or 9.9%
to RMB 320.6 million (US$ 48.0 million) from RMB
355.9 million in the third quarter last year. The
decrease was mainly due to lower warranty expenses and lower
provision of doubtful debts. SG&A expenses represented
11.1% of net revenue as compared with 11.8% in the same period last
year.
Operating profit increased by 117.2% to RMB
161.1 million (US$ 24.1
million) from RMB 74.2 million
in the third quarter last year. The increase was mainly due
to higher gross profit, lower SG&A costs and other operating
income compared with the same quarter last year. The operating
margin was 5.6% compared with 2.5% in the same quarter last
year.
Finance costs decreased by 40.0% to RMB
18.5 million (US$ 2.8 million)
from RMB 30.9 million in the third
quarter last year. Lower finance costs mainly resulted from
reduced bank loans and lower borrowings. External borrowings
decreased to RMB 763.1 million from
RMB 2.7 billion in the same period
last year.
Profit before tax was RMB 142.3
million (US$ 21.3 million),
compared with RMB 37.3 million in the
third quarter last year, an increase of RMB
105.0 million.
Total net profit attributable to China Yuchai's shareholders was
RMB 76.8 million (US$ 11.5 million), or earnings per share of
RMB 1.89 (US$
0.28), compared with RMB 0.3
million, and RMB 0.01
respectively in the third quarter last year. Earnings per
share in the third quarter of 2016 was based on a weighted average
of 40,712,100 shares compared with 39,142,533 shares in the third
quarter of 2015.
Financial Highlights for the Nine Months ended September 30, 2016
- Net revenue declined to RMB 9.9
billion (US$ 1.5 billion)
compared with RMB 10.8 billion a year
ago;
- Gross profit was RMB 1.9 billion
(US$ 291.3 million), or a gross
margin of 19.6%, compared with RMB 2.1
billion, or a gross margin of 19.4% a year ago;
- Operating profit decreased to RMB 587.9
million (US$ 88.0 million)
compared with RMB 643.0 million a
year ago;
- Earnings per share were RMB 7.28
(US$ 1.09) compared with RMB 7.32 a year ago;
- Total number of engines sold was 244,575 units compared with
304,424 units a year ago.
For the nine months ended September 30,
2016, net revenue declined 8.1% to RMB 9.9 billion (US$ 1.5
billion) from RMB 10.8 billion
in the same period last year.
The total number of engines sold was 244,575 units compared with
304,424 units in the same period last year, representing a
reduction of 19.7%. The decrease was due to the decline in sales to
the bus segment, and the transition to Tier 3 emission standards in
the off-highway segments which impacted on our sales to the
agricultural market. This decrease was mitigated by increased sales
to the truck and marine and power generation markets. According to
CAAM, in the nine months ended September 30,
2016, sales of commercial vehicles (excluding
gasoline-powered and electric vehicles) increased 5.6% led by an
increase of 8.1% in the truck segment whereas sales in the bus
segment decreased by 8.0%.
Gross profit was RMB 1.9 billion
(US$ 291.3 million) compared with
RMB 2.1 billion in the same period
last year. The decline was mainly attributable to lower unit
sales. Gross profit margin increased by 0.2% to 19.6%
compared with the same period last year.
Other operating income was RMB 51.8
million (US$ 7.8 million)
versus a loss of RMB 6.5 million in
the same period last year, an increase of RMB 58.2 million. This increase was mainly due to
foreign exchange revaluation gains and higher interest income from
bank deposits compared with foreign exchange revaluation losses and
a non-recurring loss from the disposal of Xiamen Factory in the
same period last year.
Research and development ("R&D") expenses increased by 4.2%
to RMB 400.7 million (US$ 60.0 million) compared with RMB 384.5 million in the same period in
2015. 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. As a
percentage of net revenue, R&D spending was 4.0% compared with
3.6% in the first nine months of 2015.
Selling, general & administrative ("SG&A") expenses
declined 5.2% to RMB 1.0 billion
(US$151.1 million) compared with
RMB 1.1 billion in the same period
last year. This was mainly due to lower spending on outward
freight costs, lower staff costs, and lower provision of doubtful
debts, partially offset by higher provision for warranty
expenses. SG&A expenses represented 10.2% of net revenue
for the first nine months of 2016, compared with 9.9% in the same
period last year.
Operating profit decreased to RMB 587.9
million (US$ 88.0 million)
from RMB 643.0 million in the same
period last year. The decrease was mainly due to lower gross
profit and higher R&D expenses. The operating margin was 5.9%
in the first nine months of 2016 and 2015.
Finance costs declined 27.5% to RMB 68.4
million (US$ 10.2 million)
from RMB 94.3 million in the same
period last year, a decrease of RMB 25.9
million. Lower finance costs resulted from lower bank
loans and reduced borrowings. External borrowings decreased to
RMB 763.1 million from RMB 2.7 billion in the same period last
year.
The share of joint ventures was a loss of RMB 5.9 million (US$ 0.9
million) compared with a loss of RMB
19.3 million in the same period last year. Lower
losses from joint ventures were mainly due to Y&C Engine Co.,
Ltd's improved operational performance and the reclassification of
Copthorne Hotel Qingdao Co., Ltd as assets held for sale.
Profit before tax was RMB 513.6
million (US$ 76.9 million),
compared with RMB 529.5 million, a
decrease of RMB 15.9 million.
Total net profit attributable to China Yuchai's shareholders was
RMB 289.7 million (US$ 43.4 million), or earnings per share of
RMB 7.28 (US$
1.09), compared with RMB 282.1
million, and RMB 7.32
respectively in the same period last year. Earnings per share
for the first nine months of 2016 was based on a weighted average
of 39,783,353 shares compared with 38,514,783 shares for the same
period in 2015.
Balance Sheet Highlights as at September 30, 2016
- Cash and bank balances were RMB 3.1
billion (US$ 462.7 million)
compared with RMB 3.8 billion as at
December 31, 2015.
- Short- and long-term borrowings were RMB
763.1 million (US$ 114.3
million) compared with RMB 2.5
billion at the end of 2015.
- Net inventory was RMB 1.6 billion
(US$ 232.5 million) compared with
RMB 1.7 billion at the end of
2015.
Mr. Weng Ming Hoh, President of
China Yuchai, commented, "We have improved our profitability by
selling higher value products in this challenging market
environment. Our off-road engine sales have been affected by the
ongoing transition from Tier 2 to the more advanced Tier 3 emission
standards. This transition should be completed by the end of 2016.
We managed to increase sales in the truck and marine and power
generation markets in the third quarter."
"With a focus on cash generation and balance sheet management,
we reduced our long- and short- term borrowings by 68.9% since the
end of 2015 while maintaining a strong cash position. As the
near-term outlook remains uncertain, we continue to look for ways
to better utilize our financial resources and seek new growth
opportunities."
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 6.6778 =
US$ 1.00, the rate quoted by the
People's Bank of China at the
close of business on September 30,
2016. 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, 2016 or at any other date.
Third Quarter 2016 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 9,
2016. The call will be hosted by Mr. Weng Ming HOH,
President, and Dr. Thomas PHUNG, 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: 2644560 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:
Dixon Chen
Tel: +1-646-726-6511
Email: cyd@bluefocus.com
- Tables Follow -
CHINA YUCHAI
INTERNATIONAL LIMITED
|
UNAUDITED
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
|
For the quarters
ended September 30, 2016 and 2015
|
(RMB and US$
amounts expressed in thousands, except per share
data)
|
|
September
30, 2016
|
September
30, 2015
|
|
RMB
'000
|
US$
'000
|
RMB
'000
|
US$
'000
|
Revenue
|
2,885,782
|
432,146
|
3,005,080
|
450,010
|
Cost of goods
sold
|
(2,255,034)
|
(337,691)
|
(2,418,247)
|
(362,132)
|
Gross
profit
|
630,748
|
94,455
|
586,833
|
87,878
|
Other operating
income/(expense)
|
12,389
|
1,855
|
(24,462)
|
(3,663)
|
Research and
development costs
|
(161,436)
|
(24,175)
|
(132,320)
|
(19,815)
|
Selling, general and
administrative costs
|
(320,618)
|
(48,013)
|
(355,900)
|
(53,296)
|
Operating
profit
|
161,083
|
24,122
|
74,151
|
11,104
|
Finance
costs
|
(18,532)
|
(2,775)
|
(30,903)
|
(4,628)
|
Share of
profit/(loss) of associates
|
738
|
111
|
(6)
|
(1)
|
Share of loss of
joint ventures
|
(1,005)
|
(150)
|
(5,922)
|
(887)
|
Profit before
tax
|
142,284
|
21,308
|
37,320
|
5,588
|
Income tax
expense
|
(29,881)
|
(4,475)
|
(18,982)
|
(2,843)
|
Profit for the
period
|
112,403
|
16,833
|
18,338
|
2,745
|
Attributable
to:
|
|
|
|
|
Equity holders of the
parent
|
76,810
|
11,503
|
349
|
51
|
Non-controlling
interests
|
35,593
|
5,330
|
17,989
|
2,694
|
|
112,403
|
16,833
|
18,338
|
2,745
|
Net earnings per
common share
|
|
|
|
|
Basic
|
1.89
|
0.28
|
0.01
|
0.0013
|
Diluted
|
1.89
|
0.28
|
0.01
|
0.0013
|
Unit sales
|
66,013
|
|
84,170
|
|
CHINA YUCHAI
INTERNATIONAL LIMITED
|
UNAUDITED
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
|
For the nine
months ended September 30, 2016 and 2015
|
(RMB and US$
amounts expressed in thousands, except per share
data)
|
|
September
30, 2016
|
September
30, 2015
|
|
RMB
'000
|
US$
'000
|
RMB
'000
|
US$
'000
|
Revenue
|
9,928,981
|
1,486,864
|
10,806,986
|
1,618,345
|
Cost of goods
sold
|
(7,983,496)
|
(1,195,528)
|
(8,708,554)
|
(1,304,105)
|
Gross
profit
|
1,945,485
|
291,336
|
2,098,432
|
314,240
|
Other operating
income/(expense)
|
51,750
|
7,750
|
(6,461)
|
(968)
|
Research and
development costs
|
(400,662)
|
(59,999)
|
(384,477)
|
(57,575)
|
Selling, general and
administrative costs
|
(1,008,710)
|
(151,054)
|
(1,064,498)
|
(159,408)
|
Operating
profit
|
587,863
|
88,033
|
642,996
|
96,289
|
Finance
costs
|
(68,385)
|
(10,241)
|
(94,284)
|
(14,119)
|
Share of profit of
associates
|
11
|
2
|
57
|
9
|
Share of loss of
joint ventures
|
(5,856)
|
(877)
|
(19,252)
|
(2,883)
|
Profit before
tax
|
513,633
|
76,917
|
529,517
|
79,296
|
Income tax
expense
|
(108,837)
|
(16,298)
|
(119,089)
|
(17,834)
|
Profit for the
period
|
404,796
|
60,619
|
410,428
|
61,462
|
Attributable
to:
|
|
|
|
|
Equity holders of the
parent
|
289,708
|
43,385
|
282,104
|
42,245
|
Non-controlling
interests
|
115,088
|
17,234
|
128,324
|
19,217
|
|
404,796
|
60,619
|
410,428
|
61,462
|
Net earnings per
common share
|
|
|
|
|
Basic
|
7.28
|
1.09
|
7.32
|
1.10
|
Diluted
|
7.28
|
1.09
|
7.32
|
1.10
|
Unit sales
|
244,575
|
|
304,424
|
|
CHINA YUCHAI
INTERNATIONAL LIMITED
|
SELECTED UNAUDITED
CONSOLIDATED BALANCE SHEET ITEMS
|
(RMB and US$
amounts expressed in thousands)
|
|
|
As of September
30, 2016
|
|
As of December 31, 2015
|
|
|
(unaudited)
|
|
(audited)
|
|
|
RMB'000
|
|
US$'000
|
|
RMB'000
|
|
|
|
|
|
|
|
Cash and bank
balances
|
|
3,089,562
|
|
462,662
|
|
3,842,123
|
|
|
|
|
|
|
|
Trade and bills
receivables
|
|
7,337,615
|
|
1,098,807
|
|
7,178,513
|
|
|
|
|
|
|
|
Inventories
|
|
1,552,462
|
|
232,481
|
|
1,711,330
|
|
|
|
|
|
|
|
Trade and bills
payables
|
|
4,412,023
|
|
660,700
|
|
3,841,756
|
|
|
|
|
|
|
|
Short-term and
long-term interest-bearing loans
and borrowings
|
|
763,058
|
|
114,268
|
|
2,455,704
|
|
|
|
|
|
|
|
Equity attributable
to equity holders of the
parent
|
|
7,437,460
|
|
1,113,759
|
|
7,239,617
|
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SOURCE China Yuchai International Limited