China Yuchai International Ltd (CYD) 2022 Q4 法說會逐字稿

Good day, and thank you for standing by. Welcome to the China Yuchai International Limited 2022 Unaudited Second Half and Full Year Financial Results Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Kevin Theiss. Please go ahead.

美好的一天，感謝您的支持。歡迎參加中國玉柴國際有限公司2022年未經審計的下半年及全年財務業績電話會議。 （操作員指示）請注意，今天的會議正在錄製中。現在我想將會議交給今天的第一位發言人凱文·泰斯 (Kevin Theiss)。請繼續。

Thank you for joining today, and welcome to China Yuchai International Limited's Second Half Year and Full Year Ended December 2022 Conference Call and Webcast. Joining us today are Mr. Weng Ming Hoh and Mr. Choon Sen Loo, President and Chief Financial Officer of CYI, respectively. In addition, we also have in attendance Mr. Kelvin Lai, VP of Operations of CYI.

感謝您今天參加，歡迎參加中國玉柴國際有限公司截至 2022 年 12 月的下半年和全年電話會議和網絡直播。今天加入我們的有 CYI 總裁兼首席財務官 Weng Ming Hoh 先生和 Choon Sen Loo 先生。此外，出席的還有CYI運營副總裁Kelvin Lai先生。

Before we begin, I will remind all listeners that throughout this call, we may make statements that 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, confident that, continue to, predict, intend, aim, will or similar expressions are all intended to point out forward-looking statements. All statements other than statements of historical fact are statements that may be deemed forward-looking statements.

在我們開始之前，我將提醒所有聽眾，在整個電話會議中，我們可能會發表可能包含 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述的聲明。這些詞包括相信、期望、預期、預測、目標、樂觀、相信、繼續、預測、打算、目標、意願或類似表達方式均旨在指出前瞻性陳述。除歷史事實陳述外的所有陳述均可能被視為前瞻性陳述。

These forward-looking statements include, but are not limited to, statements concerning the company's operations and financial performance and conditions and are based on current expectations, beliefs and assumptions that are subject to change at any time.

這些前瞻性陳述包括但不限於有關公司運營以及財務業績和狀況的陳述，並且基於當前的預期、信念和假設，這些預期、信念和假設可能隨時發生變化。

The company cautions that these statements, by their nature, involve risks and uncertainties, and actual results may differ materially depending upon a variety of important factors such as government and stock exchange regulations; competition; political, economic and social conditions around the world and in China, including those discussed in the company's Form 20-F under the headings Risk Factors, Results of Operations and Business Overview, and in other reports filed with the Securities and Exchange Commission from time to time.

該公司警告說，這些陳述本質上涉及風險和不確定性，實際結果可能會因政府和證券交易所法規等各種重要因素而產生重大差異；競賽;世界各地和中國的政治、經濟和社會狀況，包括公司 20-F 表格中風險因素、運營結果和業務概覽標題下討論的內容，以及不時向美國證券交易委員會提交的其他報告中討論的內容時間。

If the COVID-19 pandemic is not effectively controlled, our business operations and financial conditions may be materially and adversely affected due to a deteriorating market for automotive sales, an economic slowdown in China and abroad, a potential weakening of the financial condition of our customers, potential adverse impact to our suppliers and supply chain, or other factors that we cannot foresee. All forward-looking statements are applicable only as of the date they are made, and the company specifically disclaims any obligation to maintain or update the forward-looking information, whether of the nature contained in the press release, made during today's call or otherwise in the future.

如果 COVID-19 大流行得不到有效控制，由於汽車銷售市場惡化、國內外經濟放緩、客戶財務狀況可能惡化，我們的業務運營和財務狀況可能會受到重大不利影響、對我們的供應商和供應鏈的潛在不利影響，或我們無法預見的其他因素。所有前瞻性陳述僅適用於其作出之日，並且公司明確不承擔任何維護或更新前瞻性信息的義務，無論是新聞稿中包含的性​​質、今天的電話會議中的內容還是以其他方式發布的內容。未來。

Mr. Hoh will begin -- will provide a brief overview and summary, then Mr. Loo will review the financial results for the second half and full year ended December 31, 2022. Thereafter, we will conduct a question-and-answer session. For the purposes of today's call, the 2022 and 2021 second half financial results and the 2022 year financial results are unaudited, and they will be presented in RMB and U.S. dollars. The 2021 year results are audited. All the financial information presented is reported using the International Financial Reporting Standards as issued by the International Accounting Standards Board. Mr. Hoh, please begin your prepared remarks.

Hoh 先生將首先提供簡要概述和總結，然後 Loo 先生將回顧截至 2022 年 12 月 31 日的下半年和全年財務業績。此後，我們將進行問答環節。在今天的電話會議中，2022 年和 2021 年下半年財務業績以及 2022 年年度財務業績未經審計，並將以人民幣和美元列報。 2021年業績已經過審計。所提供的所有財務信息均使用國際會計準則委員會頒布的國際財務報告準則進行報告。何先生，請開始您準備好的發言。

Thank you, Kevin. Following the sluggish 2.5% GDP growth year-over-year in the first half of 2022, the Chinese economy continued its slow growth trend with 3.9% year-over-year growth for the third quarter of 2022 and 2.9% in the fourth quarter. Quarter-over-quarter economic growth between the third quarter and the fourth quarter of 2022 Q2 was flat.

謝謝你，凱文。繼2022年上半年GDP同比增長2.5%的低迷後，中國經濟延續低速增長態勢，2022年第三季度同比增長3.9%，第四季度增長2.9%。 2022年第二季度第三季度至第四季度經濟環比增長持平。

For fiscal year 2022, Chinese economic growth was 3%, down sharply from 8.5%, 8.4% growth experienced in 2021. The total retail sales in China declined by 0.2% and the investment in real estate development declined by 10% in fiscal 2022 year. According to data reported by China Association of Automobile Manufacturers, total industry unit sales of commercial vehicles, excluding gasoline-powered and electric powered vehicles for the second half of 2022, declined by 26.3% year-over-year, with truck and bus unit sales down by 27.5% and 18.4%, respectively.

2022財年，中國經濟增速為3%，較2021年的8.5%和8.4%大幅下滑。2022財年中國零售總額下降0.2%，房地產開發投資下降10% 。中國汽車工業協會數據顯示，2022年下半年商用車（不含汽油車和電動汽車）行業總銷量同比下降26.3%，其中卡車和客車銷量分別下降27.5%和18.4%。

For the fiscal year 2022, commercial vehicles sales were down by 21.4% year-on-year, with truck unit sales 2.9% lower and bus unit sales down 27.1%. COVID-related lockdowns and travel restrictions in China resulted in reduced demand for commercial vehicles and logistical activity declined, and there were fewer infrastructure and construction projects in 2022. The real estate market suffered for financial liquidity and uncertainties. In addition, the interruption of the supply chain have affected production schedule.

2022財年，商用車銷量同比下降21.4%，其中卡車銷量下降2.9%，客車銷量下降27.1%。中國與新冠肺炎相關的封鎖和旅行限制導致商用車需求減少和物流活動下降，2022 年基礎設施和建設項目減少。房地產市場因金融流動性和不確定性而受到影響。此外，供應鏈的中斷也影響了生產進度。

In this uneasy Chinese commercial vehicle environment, our subsidiary, Guangxi Yuchai Machinery Company Limited, or GYMCL, reported a combined truck and bus unit sales decline of 33% year-over-year in the second half of 2022. Truck sales was 33.2% lower and buses declined by 32.1%. However, GYMCL [maybe see] bus sales decrease by 16.9% by exceeding their market growth. GYMCL's engine sales in the off-road segment experienced a more modest engine sales reduction of 5% year-over-year in the second half of 2022. Both industrial and agricultural engine unit sales growth in the second half of 2022 on a year-over-year basis.

在中國商用車環境不穩定的情況下，我們的子公司廣西玉柴機械股份有限公司 (GYMCL) 報告稱，2022 年下半年卡車和客車銷量同比下降 33%。卡車銷量下降 33.2%公交車下降了32.1%。然而，GYMCL [也許會看到] 巴士銷量下降了 16.9%，超過了其市場增長。 2022年下半年，GYMCL越野領域的發動機銷量出現了較為溫和的同比下降5%。2022年下半年工業和農業發動機銷量均同比增長年為基礎。

On a more positive note, our new energy products segment has reported sales over 5,000 [treaded] units in the second half of 2022. For the 2022 fiscal year, GYMCL reported sales -- [in its] sales of trucks and buses down by 27.8% year-over-year. Truck sales declined by 49.6% and bus unit sales were down 33.2%. Off-road engine sales declined by 9.8% year-over-year. New energy product unit sales were over 6,300 units from a low base for these new products.

從更積極的角度來看，我們的新能源產品部門在 2022 年下半年的銷量超過 5,000 輛。GYMCL 報告 2022 財年的銷量——卡車和公共汽車的銷量下降了 27.8% ％ 一年又一年。卡車銷量下降 49.6%，客車銷量下降 33.2%。越野發動機銷量同比下降 9.8%。新能源產品銷量超過 6,300 輛，基數較低。

Our revenue for second half of 2022 was RMB 7.5 billion or USD 1.1 billion, a 13.6% decline compared with RMB 8.6 billion in the same period [4] of 2021. For fiscal year 2022, revenue was RMB 16 billion or USD 2.3 billion compared with RMB 21.3 billion in 2021. Gross profit was flat at RMB 1.3 billion or USD 182.4 million in the second half of 2022 compared to the same period last year. However, the gross margin rose to 17% as compared with 16.4% in the second half of 2021. The increase in gross margin was mainly attributable to the change in revenue mix with higher off-road revenue, cost reductions, especially materials and production-related expenses, and lower sales rebate.

2022 年下半年，我們的收入為 75 億元人民幣（11 億美元），與 2021 年同期的 86 億元人民幣[4]相比，下降 13.6%。2022 財年，收入為 160 億元人民幣（23 億美元）。 2021 年毛利潤為 213 億元人民幣。2022 年下半年毛利潤與去年同期持平，為 13 億元人民幣（1.824 億美元）。然而，毛利率上升至17%，而2021年下半年為16.4%。毛利率的增長主要歸因於收入結構的變化，非公路收入增加，成本降低，特別是材料和生產成本降低——相關費用，以及較低的銷售返利。

For 2022 year, gross profit decreased by 7.9% year-over-year to RMB 2.6 billion or USD 377.7 million, but the gross margin increased to 16.4% compared with 13.9% in 2021. We are especially pleased to report a 21.2% year-over-year increase in operating profit to RMB 231.3 million or USD 33.2 million and a higher operating margin in the second half of 2022 despite the lower sales.

2022 年，毛利潤同比下降 7.9%，至 26 億元人民幣（3.777 億美元），但毛利率從 2021 年的 13.9% 上升至 16.4%。我們特別高興地報告，全年毛利率為 21.2%。儘管銷售額下降，但 2022 年下半年營業利潤仍同比增長至 2.313 億元人民幣（3320 萬美元），營業利潤率更高。

Our 2022 operating profit was RMB 519.3 million or USD 34.6 million. As part of our cost savings initiative, selling, general and administrative expenses were reduced by approximately 8.2% year-over-year to RMB 1.6 billion or USD 231.4 million. And our research and development expenditures decreased by 1.5% year-on-year to RMB 836.4 million or USD 130.1 million for 2022.

我們2022年的營業利潤為5.193億元人民幣（3460萬美元）。作為成本節約計劃的一部分，銷售、一般和管理費用同比減少約 8.2%，達到 16 億元人民幣（2.314 億美元）。 2022年我們的研發支出同比下降1.5%至8.364億元人民幣（1.301億美元）。

For the second half of 2022, our basic and diluted earnings per share of RMB 3.06, or USD 0.44, increased by 565.2% above the RMB 0.46 in the same period last year. For the 2022 fiscal year, basic and diluted earnings per share were RMB 5.35 or USD 0.77. In summary, our financial results once again demonstrated the strong resilience of our businesses and our presence in diversified engine market.

2022年下半年，我們的基本和稀釋每股收益為人民幣3.06元（即0.44美元），比去年同期的人民幣0.46元增長了565.2%。 2022財年，基本每股收益和稀釋每股收益為人民幣5.35元或0.77美元。綜上所述，我們的財務業績再次證明了我們業務的強大韌性以及我們在多元化發動機市場的地位。

On the sales front, we had some notable new orders in 2022. The city of Macau ordered more than 600 new energy buses equipped with Yuchai range extenders, which were fully delivered in 2022 and being operated by Macau public transit services. GYMCL's other order is for 100 heavy-duty truck, it is from Jianghuai. Heavy duty truck consist of YCK-06, YCK-08, YCK-11 and YCK-12 engines. These engines are recognized for their low-fuel consumption, low noise and high reliability. The partnership with China JAC HD Truck is extended to other National-VI compliant model engines.

在銷售方面，2022年我們有一些值得注意的新訂單。澳門市訂購了600多輛配備玉柴增程器的新能源公交車，這些公交車已於2022年全部交付並由澳門公共交通公司運營。 GYMCL的另一筆訂單是100輛重型卡車，來自江淮。重型卡車由YCK-06、YCK-08、YCK-11和YCK-12發動機組成。這些發動機因其低油耗、低噪音和高可靠性而受到認可。與中國江淮重型卡車的合作夥伴關係已擴展到其他符合國六標準的車型發動機。

GYMCL's YC6GN sale for 8-liter heavy-duty natural gas engines became the exclusive engine to power 800 Ankai buses shipped to Monterey, Mexico, that country's largest city. The YC6GN provides a more environmentally-friendly bus solution. [Below] are some progress in the new energy segment in 2022. Yuchai model YCA07N model and hybrid engines are propelling the 10-liter gas electric hybrid buses produced by the largest bus producer in China, eCorp Group, and delivered to the bus operator in the city of Nanjing.

GYMCL銷售的YC6GN 8升重型天然氣發動機成為800輛運往墨西哥最大城市蒙特雷的安凱客車的獨家發動機。 YC6GN提供了更加環保的公交解決方案。 [下]2022年新能源領域的一些進展。玉柴YCA07N車型和混合動力發動機正在推動中國最大的客車生產商eCorp集團生產的10升燃氣電動混合動力客車，並於2022年交付給該客車運營商。南京市。

Yuchai energy powered technology [popular with the] (foreign language) successfully integrated the 3.5 ton electric axle drive axle for the first time into an EV light bus from [Potish and Lome] in the first quarter of 2022. [E try silan] 300kw high power range extender power train system was integrated into [Inomomole] technologies, 200 metric ton [smart mining truck] the EM200 in the third quarter of 2022. The EM200 is China's first domestically made 200 metric tons smart mining truck and features really improved payload management efficiency, low carbon emissions and provides intelligent control.

玉柴新能源動力技術【流行】（外文）於2022年第一季度成功將3.5噸電動車驅動橋首次集成到【Potish和Lome】的EV輕客中。【E試士蘭】300kw高功率增程動力總成系統集成到[Inomomole]技術，2022年第三季度200噸[智能礦用卡車]EM200。EM200是中國第一輛國產200噸智能礦用卡車，具有真正提高的有效載荷管理高效、低碳排放並提供智能控制。

After introducing its first hydrogen engine for commercial research in 2021, GYMCL introduced the new heavy-duty hydrogen engine [the YCK66H] engine in the second quarter of 2022. Yuchai [engine lab] has received a total of RMB 17 million capital from 3 new investors. These funds are targeted to expand working capital and to enhance development's high-power full-electric drive system for hybrid and range-extended drive system for both on and off-road application.

繼2021年推出首款用於商業研究的氫發動機後，GYMCL於2022年第二季度推出了新型重型氫發動機[YCK66H]發動機。玉柴[發動機實驗室]已獲得來自3個新發動機的總計1700萬元人民幣的資金投資者。這些資金旨在擴大營運資金，並加強混合動力大功率全電動驅動系統的開發以及公路和越野應用的增程驅動系統。

As at December 31, 2022, we have cash and bank balances of RMB 4.9 billion or USD 693.5 million, and we maintained a strong balance sheet. During the year, the Board of Directors declared a dividend, a cash dividend of USD 0.14 per ordinary share for the year ended 31st December 2021, which was paid on July 15, 2022.

截至2022年12月31日，我們的現金和銀行餘額為49億元人民幣（6.935億美元），資產負債表保持強勁。年內，董事會宣派股息，即截至2021年12月31日止年度每股普通股現金股息0.14美元，並於2022年7月15日支付。

We are cautiously optimistic for 2023. Recent policy changes in 2023 have greatly reduced COVID-19 lockdowns and travel restrictions, which will improve the business and investment activities, including the supply chain. Any new policies introduced will help improve the investment environment for both domestic and export markets as well as enhance the operating environment. With that, I would like to turn the call over to Choon Sen Loo, our Chief Financial Officer, who will provide more details on the financial results. Choon Sen?

我們對 2023 年持謹慎樂觀態度。2023 年最近的政策變化大大減少了 COVID-19 封鎖和旅行限制，這將改善商業和投資活動，包括供應鏈。任何新政策的出台，都將有助於改善國內和出口市場的投資環境，改善經營環境。我想將電話轉給我們的首席財務官 Choon Sen Loo，他將提供有關財務業績的更多詳細信息。春森？

Thank you, Weng Ming. Now let me review our unaudited 6 months' results ended December 31, 2022. Revenue was RMB 7.5 billion or USD 1.1 billion compared with RMB 8.6 billion in second half 2021. The total number of engines sold by GYMCL in second half 2022 declined by 18.1% to 140,305 units compared with 131,449 units in the second half of 2021. The decrease was mainly due to lower IG sales in the truck, bus, marine and power generation application market, partially offset by higher sales in agricultural and industrial engines.

謝謝你，翁明。現在讓我回顧一下截至 2022 年 12 月 31 日的未經審計的 6 個月業績。收入為 75 億元人民幣（11 億美元），而 2021 年下半年為 86 億元人民幣。2022 年下半年 GYMCL 銷售的發動機總數下降了 18.1與 2021 年下半年的 131,449 台相比，下降 % 至 140,305 台。下降主要是由於卡車、公共汽車、船舶和發電應用市場的 IG 銷量下降，部分被農業和工業發動機銷量的增加所抵消。

According to data reported by the China Association of Automobile Manufacturers, CAAM, in the second half 2022, commercial vehicle unit sales, excluding sales of gasoline-powered and electric-powered vehicles decreased by 36.3% compared to the second half of 2021, as sales of trucks and buses declined by 37.5% and 18.4%, respectively, reflecting demand in these market segments.

中國汽車工業協會數據顯示，2022年下半年，商用車銷量（不含汽油車和電動車）較2021年下半年下降36.3%。卡車和公共汽車的銷量分別下降了 37.5% 和 18.4%，反映了這些細分市場的需求。

Gross profit was RMB 1.3 billion or USD 182.4 million compared with the same amount of RMB 1.3 billion in second half 2021. Gross margin increased to 17% as compared with 15.4% in second half 2021. The increase in cost margin was mainly attributable to a change in revenue mix, with an increase in off-road segment over the on-road segment, cost reductions and lower sales rebate.

毛利潤為 13 億元人民幣（1.824 億美元），而 2021 年下半年為 13 億元人民幣。毛利率從 2021 年下半年的 15.4% 增加至 17%。成本利潤率的增加主要歸因於收入結構發生變化，越野業務相對於公路業務有所增加，成本降低，銷售回扣降低。

Other operating income increased by 22.9% to RMB 251.3 million or USD 36.1 million compared with RMB 204.5 million in second half 2021. The increase was mainly due to higher government grants. Research and development, R&D, expenses decreased by 19.7% to RMB 428 million or USD 61.4 million compared with RMB 533.1 million in the second half of 2021 due to lower R&D expenses incurred in commercial vehicle engines that were partially offset by higher R&D expenses incurred in marine engines and power generation engines and new energy products.

其他營業收入較 2021 年下半年的人民幣 2.045 億元增長 22.9%，達到人民幣 2.513 億元（約合 3,610 萬美元）。這一增長主要是由於政府補貼增加。研發費用下降 19.7%，至 4.28 億元人民幣（6140 萬美元），較 2021 年下半年的 5.331 億元人民幣下降，原因是商用車發動機研發費用減少，但部分被 2021 年下半年研發費用增加所抵消。船用發動機和發電發動機及新能源產品。

Total R&D expenditures, including capitalized costs, were RMB 540.8 million or USD 77.6 million, representing 7.3% of revenue in second half 2022 as compared to RMB 712.2 million, representing 8.3% of revenue in second half 2021. Selling, general and administrative, SG&A, expenses increased slightly to RMB 802.1 million or USD 133.8 million from RMB 835.9 million in the second half 2021. The increase was mainly due to increased warranty expenses compared with the same period last year. SG&A expenses represented 11.6% of revenue for second half 2022 compared with 9.7% in second half 2021.

包括資本化成本在內的研發總支出為人民幣 5.408 億元（7,760 萬美元），佔 2022 年下半年收入的 7.3%，而研發支出總額為人民幣 7.122 億元，佔 2021 年下半年收入的 8.3%。 銷售、一般和管理、SG&A費用從 2021 年下半年的人民幣 8.359 億元小幅增加至人民幣 8.021 億元，即 1.338 億美元。增加的主要原因是保修費用較去年同期增加。 2022 年下半年，SG&A 費用佔收入的 11.6%，而 2021 年下半年則為 9.7%。

Operating profit rose by 41.2% to RMB 231.3 million or USD 33.2 million from RMB 153.8 million in second half 2021. The operating margin was 3.1% compared with 1.9% in second half 2021. Finance costs decreased by 15.3% to RMB 40.2 million or USD 5.8 million from RMB 47.5 million in second half of 2021. The share of financial results of the associates and joint ventures was a profit of RMB 1.8 million or USD 0.3 million compared with a loss of RMB 108.4 million in second half 2021. This gain was largely due to higher profit at the MTU Yuchai Power Company Limited and a share of lower losses at Y&C Engine Company Limited.

營業利潤從2021年下半年的1.538億元人民幣增長41.2%至2.313億元人民幣（3320萬美元）。營業利潤率為3.1%，而2021年下半年為1.9%。財務成本下降15.3%至4020萬元人民幣（3320萬美元）從 2021 年下半年的人民幣 4750 萬元增至 580 萬元。聯營企業和合資企業的財務業績份額為利潤 180 萬元人民幣（即 30 萬美元），而 2021 年下半年則為虧損人民幣 1.084 億元。這一收益為主要是由於玉柴安特優動力有限公司的利潤增加以及Y&C發動機有限公司的虧損減少。

Income tax expense was RMB 2.6 million or USD 0.4 million as compared with an income tax credit of 42.4 million in the second half of 2021. The change was mainly due to the higher export income in second half 2022. Net profit attributable to equity holders of the company was RMB 124.9 million or USD 17.9 million compared with RMB 19 million in second half 2021. Basic and diluted earnings per share were RMB 3.06 or USD 0.44 compared with RMB 0.46 in second half 2021. Basic and diluted earnings per share for second half 2022 and second half 2021 were based on a weighted average of 40,858,290 shares.

所得稅費用為人民幣 260 萬元（40 萬美元），而 2021 年下半年所得稅抵免為 4,240 萬美元。這一變化主要是由於 2022 年下半年出口收入增加。歸屬於股東的淨利潤該公司的淨利潤為 1.249 億元人民幣（1790 萬美元），而 2021 年下半年為 1900 萬元人民幣。每股基本和稀釋每股收益為 3.06 元人民幣（0.44 美元），而 2021 年下半年為 0.46 元人民幣。 下半年基本和稀釋每股收益2022年和2021年下半年的加權平均股數為40,858,290股。

Now we review the unaudited financial results for the 2022 fiscal year ended December 31, 2022. Revenue was RMB 16 billion or USD 2.3 billion compared with RMB 21.3 billion in full year 2021. The total number of engines sold by GYMCL in financial year 2022 decreased by 29.7% to 301,256 units compared with 456,791 units in financial year 2021. The decrease was mainly due to weakness in the truck and bus market and the markets of marine and power generation engines.

現在我們回顧一下截至2022年12月31日的2022財年未經審計的財務業績。收入為160億元人民幣（23億美元），而2021年全年為213億元人民幣。GYMCL在2022財年銷售的發動機總數有所下降與 2021 財年的 456,791 輛相比，增長 29.7% 至 301,256 輛。減少的主要原因是卡車和客車市場以及船用和發電發動機市場疲軟。

According to CAAM, commercial vehicle unit sales, excluding sales of gasoline-powered and electric-powered vehicles, decreased by 41.4% in financial year 2022 as sales of trucks declined by 42.9% while sales of buses declined by 27.1%. The impact of COVID-19 restrictions and related supply chain disruptions impacted market conditions in China and in foreign markets.

根據中國汽車工業協會的數據，2022 財年商用車銷量（不包括汽油車和電動車的銷量）下降了 41.4%，其中卡車銷量下降了 42.9%，客車銷量下降了 27.1%。 COVID-19 限制和相關供應鏈中斷影響了中國和國外市場的市場狀況。

Gross profit decreased by 10.9% to RMB 2.6 billion or USD 37.7 million compared with RMB 3 billion in financial year 2021. Gross margin increased to 16.4% compared with 13.9% in H1 2021. The increase in gross margin was mainly attributable to a change in revenue mix with higher off-road revenue as a greater proportion of the total revenue and lower sales rebate. Other operating income increased by 6.5% to RMB 306.8 million or USD 48.4 million compared with RMB 315.2 million in financial year 2021. The increase was mainly due to higher government grants.

毛利潤下降 10.9%，至 26 億元人民幣，即 3770 萬美元，較 2021 財年的 30 億元人民幣下降。毛利率從 2021 年上半年的 13.9% 上升至 16.4%。毛利率上升的主要原因是收入結構：越野收入佔總收入的比例較高，銷售回扣較低。其他營業收入增長 6.5%，達到人民幣 3.068 億元（4840 萬美元），而 2021 財年為人民幣 3.152 億元。這一增長主要是由於政府補貼增加。

R&D expenses decreased by 1.4% to RMB 836.4 million or USD 120.1 million compared with RMB 846.8 million in FY 2021. GYMCL continued with its initiative to improve engine performance and the qualities of its engines compliant with China's National VI and Tier 4 emission standards and to develop new energy products. In FY 2022, total R&D expenditures, including capitalized cost, was RMB 1 billion or USD 36.1 million compared with RMB 1.2 billion in financial year 2021, representing 6.4% of the revenue compared with 5.5% in financial year 2021.

研發費用下降 1.4%，至人民幣 8.364 億元（1.201 億美元），而 2021 財年為人民幣 8.468 億元。GYMCL 繼續致力於提高發動機性能和發動機質量，使其符合中國國六和四級排放標準，並開發新能源產品。 2022 財年，包括資本化成本在內的研發總支出為 10 億元人民幣（3,610 萬美元），而 2021 財年為 12 億元人民幣，佔收入的 6.4%，而 2021 財年為 5.5%。

SG&A expenses were RMB 1.6 billion or USD 231.4 million, representing 10.1% of the revenue compared with RMB 1.2 -- 1.8 billion, representing 8.3% of the revenue in full year 2021. This decrease was mainly due to lower freight, personnel and warranty expenses. Operating profit was RMB 519.3 million or USD 74.6 million, down from RMB 663.5 million in financial year 2021. The operating margin was 3.2% as compared with 3.1% in FY 2021.

SG&A 費用為 16 億元人民幣（2.314 億美元），佔收入的 10.1%，而 2021 年全年的銷售費用為 1.2 - 18 億元人民幣，佔收入的 8.3%。這一下降主要是由於運費、人員和保修費用減少。營業利潤為人民幣 5.193 億元（7,460 萬美元），低於 2021 財年的人民幣 6.635 億元。營業利潤率為 3.2%，而 2021 財年為 3.1%。

Finance costs decreased by 17.6% to RMB 95.5 million or USD 13.7 million from RMB 115.9 million in FY 2021. The share of financial results of the associates and joint ventures was a loss of RMB 39.1 million or USD 4.2 million compared with a loss of RMB 95.9 million in financial year 2021. The decreased loss was primarily attributable to higher profit at the MTU Yuchai Power Company Limited and the share of lower losses at Y&C Engine Company Limited.

財務成本從 2021 財年的人民幣 1.159 億元下降 17.6% 至人民幣 9550 萬元（折合 1370 萬美元）。聯營公司和合資企業的財務業績份額為虧損人民幣 3910 萬元（折合 420 萬美元），而虧損則為人民幣 3910 萬元（折合 420 萬美元）。 2021 財年為 9590 萬美元。虧損減少主要歸因於玉柴安特優動力有限公司的利潤增加以及 Y&C 發動機有限公司的虧損減少。

Income tax expense was RMB 59.1 million or USD 8.5 million as compared with RMB 43.8 million in FY 2021. Net profit attributable to China Yuchai shareholders was RMB 218.6 million or USD 31.4 million compared with RMB 232.7 million in FY 2021. Basic and diluted earnings per share were RMB 5.35 or USD 0.77 compared with RMB 6.67 in FY 2021. Basic and diluted earnings per share for FY 2021 and FY 2022 -- sorry, for FY 2022 and FY 2021 were based on a weighted average of 40,858,219 shares.

所得稅費用為人民幣 5,910 萬元（約合 850 萬美元），而 2021 財年為人民幣 4,380 萬元。歸屬於中國玉柴股東的淨利潤為人民幣 2.186 億元（約合 3,140 萬美元），而 2021 財年為人民幣 2.327 億元。基本和稀釋每股收益每股價格為 5.35 元人民幣或 0.77 美元，而 2021 財年為 6.67 元人民幣。2021 財年和 2022 財年的基本每股收益和稀釋每股收益——抱歉，2022 財年和 2021 財年基於 40,858,219 股的加權平均值。

Now let me walk you through our financial highlights as of December 31, 2022. Cash and bank balances were RMB 4.9 billion, USD 606.5 million compared with RMB 5.3 billion at the end of FY 2021. Trade and bills receivables were RMB 6.8 billion, USD 935.4 million compared with RMB 6.8 billion at the end of financial year 2021. Inventories were RMB 4.9 billion or USD 709 million compared with RMB 5.2 billion at the end of FY 2021.

現在讓我向您介紹我們截至 2022 年 12 月 31 日的財務亮點。現金和銀行餘額為 49 億元人民幣（6.065 億美元），而 2021 財年末為 53 億元人民幣。應收賬款和應收票據為 68 億元人民幣（6.065 億美元）。 9.354 億元人民幣，而 2021 財年末為 68 億元人民幣。庫存為 49 億元人民幣（7.09 億美元），而 2021 財年末為 52 億元人民幣。

Trade and bills payables were RMB 6.9 billion or USD 993.5 million compared with RMB 7.4 billion at the end of financial year 2021. Short-term and long-term bank borrowings were RMB 2.3 billion or USD (technical difficulty) compared with RMB 2.2 billion at the end of financial year 2021. I will now turn the call over to Kevin for his comment before we begin our Q&A.

應付賬款和應付票據為 69 億元人民幣或 9.935 億美元，而 2021 財年末為 74 億元人民幣。短期和長期銀行借款為 23 億元人民幣或美元（技術難度），而 2021 財年末為 22 億元人民幣。 2021 財年結束。在我們開始問答之前，我現在將把電話轉給 Kevin，徵求他的意見。

Thank you. Please note, some officers of China Yuchai are remotely calling in to the conference call. This may result in a slight delay in providing answers to some questions. We apologize for any inconvenience, and thank you for your patience. With that, operator, we are now ready to begin the Q&A session.

謝謝。請注意，中國玉柴的部分管理人員正在遠程撥入電話會議。這可能會導致某些問題的答案略有延遲。對於給您帶來的任何不便，我們深表歉意，並感謝您的耐心等待。至此，操作員，我們現在準備開始問答環節。

(Operator Instructions)

（操作員說明）

Dear speakers, there are no questions at this time. Please continue.

尊敬的發言者，目前沒有問題。請繼續。

Okay. Thank you all for participating in our conference call. We wish each of you good health, and please be safe during this pandemic. We look forward to speaking with you again. Goodbye.

好的。感謝大家參加我們的電話會議。祝愿大家身體健康，疫情期間注意安全。我們期待再次與您交談。再見。

That does conclude our conference for today. Thank you for participating. You may now all disconnect. Have a nice day.

我們今天的會議到此結束。感謝您的參與。你們現在可以斷開連接了。祝你今天過得愉快。