China Yuchai International Ltd (CYD) 2024 Q2 法說會逐字稿

Good day and thank you for standing by.

美好的一天，感謝您的支持。

Welcome to the China Yuchai International Limited first-half 2024 financial results conference call.

歡迎參加中國玉柴國際有限公司2024年上半年財務業績電話會議。

(Operator Instructions) Please be advised that today's conference is being recorded.

（操作員指示）請注意，今天的會議正在錄製中。

I would like to now turn the conference over to Kevin Theiss.

我現在想把會議交給凱文·泰斯。

Please go ahead, sir.

請繼續，先生。

Thank you for joining us today, and welcome to China Yuchai International Limited's conference call and webcast for the first six months of 2024 ended on June 30, 2024.

感謝您今天加入我們，歡迎參加中國玉柴國際有限公司於 2024 年 6 月 30 日結束的 2024 年前六個月的電話會議和網路直播。

Joining us today are Mr. Weng Ming Hoh; and Mr. Choon Sen Loo, President, and Chief Financial Officer of CYI, respectively.

今天加入我們的是何翁明先生；分別為 CYI 總裁兼財務長 Choon Sen Loo 先生。

In addition, we also have in attendance Mr. Kelvin Lai, General Manager of Operations of CYI.

此外，出席的還有CYI營運總經理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.

在我們開始之前，我要提醒所有聽眾，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。

The words believe, expect, anticipate, project, targets, optimistic, confident that, continue to, predict, intend, aim, will or similar expressions are intended to identify forward-looking statements.

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旨在識別前瞻性陳述。

All statements, other than statements of historical fact are statements that may be deemed forward-looking statements.

除歷史事實陳述外，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 operation and financial performance and condition, and are based on current expectations, beliefs and assumptions, which are subject to change at any time.

這些前瞻性陳述包括但不限於有關公司營運以及財務表現和狀況的陳述，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 on a variety of important factors such as government and stock exchange regulations, competition, political and 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, Result 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，實際結果可能會因各種重要因素而產生重大差異，例如世界各地和中國的政府和證券交易所法規、競爭、政治、經濟和社會狀況，包括公司 20-F 表格中風險因素、營運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。

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 towards today's call or otherwise in the future.

所有前瞻性陳述僅適用於其作出之日，且本公司明確不承擔任何維護或更新前瞻性資訊的義務，無論是新聞稿中包含的性​​質、今天的電話會議中的性質還是以其他方式作出的性質。

Mr. Hoh will provide a brief overview and summary, then Mr. Loo will review the financial results for the first half ended June 30, 2024.

Hoh 先生將提供簡要概述和總結，然後 Loo 先生將審查截至 2024 年 6 月 30 日的上半年財務表現。

Thereafter, we will conduct a question-and-answer session.

隨後，我們將進行問答環節。

For the purposes of today's call, the 2024 and 2023 first half year financial numbers are unaudited and they will be presented in RMB and US dollars.

就今天的電話會議而言，2024 年和 2023 年上半年的財務數據未經審計，並將以人民幣和美元列示。

All the financial information presented is reported using the International Financial Reporting Standards as issued by the International Accounting Standards Board.

所提供的所有財務資訊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。

Mr. Hoh, please begin your prepared remarks.

何先生，請開始您準備好的發言。

Thank you, Kevin.

謝謝你，凱文。

We are pleased to report higher revenue, operating profit, and higher earnings per share in the first half of 2024 compared with the same period last year.

我們很高興地報告，與去年同期相比，2024 年上半年的收入、營業利潤和每股盈餘均有所提高。

Sales grew by 12.4% on a 16.3% increase in unit sales -- units sold on a year-over-year basis.

銷量成長 12.4%，單位銷量較去年同期成長 16.3%。

We achieved engine unit sales growth in every market category except pickup, which is a small portion of our sales.

我們在每個市場類別中都實現了引擎銷售成長，皮卡除外，皮卡只占我們銷售額的一小部分。

Combined unit sales of our engines in the truck and bus market rose by 32.8% year over year compared with data from China Association of Automobile Manufacturers, CAAM, showing truck and bus vehicle sales growth of 4.4% year over year.

中國汽車工業協會數據顯示，卡客車市場引擎銷量較去年同期成長32.8%，卡客車銷量較去年同期成長4.4%。

Our unit sales in the important truck engine market grew by 35.6% year over year, compared to an increase of 3.7% for truck vehicle sales according to CAAM data.

根據中國汽車工業協會的數據，我們在重要的卡車引擎市場的銷量年增 35.6%，而卡車整車銷量較去年同期成長 3.7%。

Our heavy-duty truck engine sales grew by 32.9% year over year, compared with a 0.3% increase in CAAM heavy truck vehicle sales in the first half of 2024.

我們的重卡引擎銷量年增32.9%，而2024年上半年中汽重卡整車銷量成長0.3%。

And our medium-duty truck engine sales grew faster than CAAM medium-duty truck vehicle sales with a year-over-year increase of 33.1%, compared to 17.4%.

我們的中型卡車引擎銷售成長快於中汽協中型卡車整車銷量，較去年同期成長33.1%，而中汽協中型卡車引擎銷量較去年同期成長17.4%。

Likewise, our light-duty truck engines sales also exceeded the CAAM vehicle sales growth, growing by 45.6% compared to 5.4% year on year in the first half of 2024.

同樣，我們的輕卡引擎銷量也超過了中汽協整車銷量增速，年增45.6%，而2024年上半年年增5.4%。

Similarly, our bus engine sales in the heavy, medium, and light vehicle market segments witnessed a year-over-year growth of 40.3%, 32% and 28.2%, respectively, in the first half of 2024.

同樣，2024年上半年，我們在重型、中型和輕型車細分市場的客車發動機銷量同比分別增長40.3%、32%和28.2%。

Our engine sales in the off-road markets exceeded 104,000 units for the first half of 2024, representing a 6.4% year-over-year growth.

2024年上半年，我們越野市場引擎銷售超過10.4萬台，較去年同期成長6.4%。

These sales were led by a 13.1% increase in engine sales in the industrial segment compared to the same period last year.

與去年同期相比，工業領域引擎銷量成長了 13.1%，帶動了這些銷售額的成長。

Marine and generator engine unit sales increased by 5.2% with higher demand from data

數據需求增加，船用和發電機引擎銷售成長 5.2%

[centers].

[中心]。

New energy product engine sales grew by 19.9% year over year from a small base from these emerging products.

新能源產品引擎銷量較去年同期成長19.9%，這些新興產品的基數較小。

These notable results were achieved despite little slower economic growth in China.

儘管中國經濟成長略有放緩，但仍取得了這些顯著成果。

According to the National Bureau of Statistics, Chinese GDP increased by 5% year over year in the first six months of 2024.

國家統計局數據顯示，2024年前6個月，中國國內生產毛額年增5%。

However, 2024 second-quarter GDP growth declined to 4.7%, compared with an estimate of 5.1% growth and down from the 5.3% growth in the third quarter of 2024.

然而，2024年第二季GDP成長率下降至4.7%，而預期成長率為5.1%，也低於2024年第三季5.3%的成長速度。

While the Chinese economy grew in the first half of 2024, growth was uneven in different market segments.

儘管2024年上半年中國經濟有所成長，但不同細分市場的成長並不均衡。

The equipment manufacturing increased by 7.8% and high tech manufacturing increased by 8.7% for a select segment of industrial enterprises.

部分工業企業裝備製造業成長7.8%，高技術製造業成長8.7%。

The total value of export rose by 6.9% year over year for the first half of 2024.

2024年上半年出口總值年增6.9%。

However, property investments fell 10.1% and home sales by floor area fell 19% in the first half of 2024 from the year earlier similar period.

然而，2024 年上半年房地產投資年減 10.1%，房屋銷售面積較去年同期下降 19%。

In the first half of 2024, our total R&D expenditures, including capitalized costs, were RMB463.2 million or USD65 million, compared to RMB465.2 million in the first half of 2023.

2024年上半年，我們的研發總支出（包括資本化成本）為人民幣4.632億元（約6,500萬美元），而2023年上半年為人民幣4.652億元。

We continue to improve the quality and performance of our National VI and Tier 4 engines, even as we have initiated the development of the next-generation emission standard engine for on-road and off-road engine market.

我們不斷提高國六和國四引擎的品質和性能，同時我們已經啟動了針對公路和越野引擎市場的下一代排放標準引擎的開發。

In addition, the continuing development of new energy products, including products using alternative fuels, remains as the high priority.

此外，繼續開發新能源產品，包括使用替代燃料的產品，仍然是重中之重。

We have established a track record of introducing new energy powertrains, including two hydrogen-fired engines with using renewable hydrogen and off-gas power generation system at the production plant which utilizes off-gas discharges to generate power and eliminate greenhouse gas emissions and the new model, YCK07N hybrid engine, which was chosen to power 10-meter gas electric hybrid buses in

我們已經建立了引進新能源動力總成的記錄，包括兩台使用再生氫氣的氫燃料引擎以及生產工廠的廢氣發電系統，利用廢氣排放發電並消除溫室氣體排放，以及新能源汽車型號為YCK07N混合動力發動機，被選為2018年10米油電混合動力客車提供動力

[Nanjing].

[南京]。

In the first half of 2024, new energy applications include the first 50 Suzhou King Long 12-meter buses using our hydrogen fuel cells, commence our commercial operations, and the launch of QT700-10 turbine fan main shaft to improve wind power performance to reduce current emissions.

2024年上半年，新能源應用包括首批50輛蘇州金龍12米公車使用我們的氫燃料電池並開始商業運營，以及推出QT700-10渦輪風扇主軸以提高風電性能以減少目前的排放量。

As a result of this innovative achievement, Guangxi Yuchai Machinery Company Limited or [Yuchai], our main operating subsidiary in China, was appointed as a Committee Member of the New Hydrogen Combustion Engine, Innovation Consortium division of the China Internal Combustion Engine Society.

由於這項創新成果，我們在中國的主要營運子公司廣西玉柴機器股份有限公司或[玉柴]被任命為中國內燃機學會創新聯盟委員會新型氫燃燒發動機委員會成員。

The consortium will lead the development of hydrogen combustion engines for applications in the automobile, power generation, marine, and industrial and agricultural industries, among other applications.

該聯盟將領導氫燃燒發動機的開發，應用於汽車、發電、船舶、工業和農業等領域。

To encourage improved performance, equity and incentive plans have been implemented by our subsidiaries.

為鼓勵提高績效，我們的子公司實施了股權激勵計畫。

Selected senior men and leaders and key employees of Yuchai and its subsidiaries acquired indirectly their respective portions of the [enlarged] with the interest of Guangxi Yuchai Marine and Genset Power Company Limited, or MPG, to better align their interest with the success of this organization.

玉柴及其子公司選定的高級管理人員、領導者和關鍵員工以廣西玉柴船舶及發電機組動力有限公司（MPG）的利益間接收購了他們各自的[擴大]部分，以更好地將他們的利益與該組織的成功結合起來。

These incentives for selected participants are important to motivate them for their continued contribution, dedication, and loyalty for long-term growth.

這些針對選定參與者的激勵措施對於激勵他們為長期發展做出持續貢獻、奉獻和忠誠非常重要。

In early June, the company adopted a share buyback plan, whereby the company may repurchase its ordinary share, up to [USD20 million] in dollar amount or [4 million] in the number, whichever occurs first.

6月初，該公司通過了一項股票回購計劃，公司可以回購其普通股，金額最多為[2,000萬美元]或數量為[400萬]，以先到者為準。

China Yuchai may repurchase shares on the open market at prevailing market prices in privately negotiated transactions or by other legally permissible means.

中國玉柴可以透過私下協商交易或其他法律允許的方式在公開市場上以現行市場價格回購股份。

Share repurchases will be financed through operating cash flow and existing cash balances.

股票回購將透過經營現金流和現有現金餘額提供資金。

In addition, the company has declared a cash dividend of USD0.38 for ordinary share for shareholders of record as of the close of business on August 19, 2024, to be paid on August 28, 2024.

此外，公司也宣布向截至2024年8月19日營業結束時登記在冊的股東派發普通股現金股利0.38美元，並於2024年8月28日支付。

These share repurchases and dividend distribution reward demonstrate our commitment to shareholder value.

這些股份回購和股利分配獎勵體現了我們對股東價值的承諾。

With that, I would now like to turn the call over to Choon Sen Loo, our Chief Financial Officer, who will provide more details on the financial results.

現在，我想將電話轉給我們的財務長 Choon Sen Loo，他將提供有關財務業績的更多詳細資訊。

Choon Sen, you may begin your part.

春森，你可以開始你的部分了。

Thank you, Weng Ming.

謝謝你，翁明。

Now let me review our unaudited six-month results ended June 30, 2024.

現在讓我回顧一下截至 2024 年 6 月 30 日的未經審計的六個月業績。

Revenue was RMB10.3 billion or USD1.4 billion, compared with RMB9.2 billion in first half 2023.

收入為 103 億元人民幣（14 億美元），而 2023 年上半年為 92 億元。

The total number of engines sold by Yuchai in first half 2024 increased by 16.3% to 192,743 units compared with 165,793 units in first half 2023.

玉柴2024年上半年銷售引擎總數192,743台，較2023年上半年的165,793台成長16.3%。

The increase was mainly driven by a 35.6% increase in truck engine sales with heavy-duty truck engine sales up by 32.9%.

這一增長主要是由於卡車引擎銷量增長35.6%，其中重型卡車引擎銷量增長32.9%。

Additionally, bus engine sales rose by 21.7%, and engine sales for industrial applications increased by 13.1%.

此外，客車引擎銷量成長21.7%，工業應用引擎銷量成長13.1%。

Sales increased in all product categories except pickups.

除皮卡外，所有產品類別的銷售額均有所成長。

According to data reported by the China Association of Automobile Manufacturers, CAAM, in first half 2024, commercial vehicle unit sales excluding gasoline-powered and electric-powered vehicles increased by 4.4% compared to first half 2023, as truck and bus sales increased by 3.7% and 9%, respectively.

中國汽車工業協會數據顯示，2024年上半年，商用車（不含汽油車和電動車）銷量較2023年上半年成長4.4%，其中卡車和客車銷量成長3.7%分別為 % 和 9%。

Gross profit was up by 16.8% to RMB1.7 billion or USD242.9 million from RMB1.5 billion in first half 2023.

毛利從 2023 年上半年的 15 億元成長 16.8% 至 17 億元人民幣（即 2.429 億美元）。

Gross margin grew to 16.8% as compared with 16.2% in first half 2023.

毛利率從 2023 年上半年的 16.2% 成長至 16.8%。

The increases in gross profit and gross margin were mainly attributable to higher engine sales, especially sales of heavy-duty vehicle engines and industrial engines and contributions from ongoing cost reduction efforts.

毛利和毛利率的成長主要歸因於引擎銷售的增加，特別是重型汽車引擎和工業引擎的銷售以及持續的成本削減措施的貢獻。

Other operating income increased by 27.8% to RMB174.1 million or USD24.4 million compared with RMB136.2 million in first half 2023.

其他營業收入較 2023 年上半年的 1.362 億元成長 27.8%，達到 1.741 億元（2,440 萬美元）。

The increase was mainly due to government grants and the government's rebate on value-added tax.

增加的主要原因是政府補助和政府增值稅退稅。

Research and development, R&D expenses decreased by 3.1% to RMB393.6 million or USD55.2 million compared with RMB406 million in the first half 2023.

研究與開發、研發費用較 2023 年上半年的人民幣 4.06 億元下降 3.1%，至人民幣 3.936 億元，即 5,520 萬美元。

The company continues to invest in research and development for on-road engines in the commercial vehicle market and off-road engines as well as new energy products.

本公司持續投入商用車市場道路引擎和越野引擎以及新能源產品的研發。

Total R&D expenditures, including capitalized costs, were RMB463.2 million or USD65 million, representing 4.5% of revenue in first half 2024, as compared to RMB465.2 million or 5.1% of revenue in first half 2023.

包括資本化成本在內的研發總支出為人民幣 4.632 億元（即 6,500 萬美元），佔 2024 年上半年收入的 4.5%，而 2023 年上半年為人民幣 4.652 億元，佔收入的 5.1%。

Selling, general and administrative, SG&A expenses increased by 30.3% to RMB1.1 billion or USD150.8 million from RMB824.7 million in first half 2023.

銷售、一般及管理、SG&A 費用從 2023 年上半年的人民幣 8.247 億元增長 30.3% 至人民幣 11 億元（合 1.508 億美元）。

The increase was mainly due to higher warranty expenses, and higher warrant provision of personnel costs compared with the same period last year.

增加的主要原因是保固費用以及人員費用與去年同期相比增加。

SG&A expenses represented 10.4% of revenue for first half 2024 compared with 9% in first half 2023.

2024 年上半年，SG&A 費用佔收入的 10.4%，而 2023 年上半年則為 9%。

Operating profit increased by 12.7% to RMB436.9 million or USD61.3 million from RMB387.7 million in the first half 2023.

營業利潤從 2023 年上半年的人民幣 3.877 億元成長 12.7% 至人民幣 4.369 億元（約 6,130 萬美元）。

The operating margin remained steady at 4.2% in both periods.

兩個時期的營業利益率均穩定在 4.2%。

Finance costs declined by 23.7% to RMB40.9 million or USD5.7 million from RMB53.6 million in first half 2023, mainly due to lower bills discounting.

財務成本從 2023 年上半年的人民幣 5,360 萬元下降 23.7% 至人民幣 4,090 萬元（即 570 萬美元），主要是因為票據貼現減少。

The share of financial results of the associates and joint ventures achieved a 45.4% increase in profit to RMB43.1 million or USD6 million compared with a profit of RMB29.6 million in first half 2023.

與2023年上半年的利潤人民幣2,960萬元相比，聯營公司和合資公司的財務業績份額實現利潤增長45.4%至人民幣4,310萬元（約600萬美元）。

The improvement was primarily contributed by higher profit at MTU Yuchai Power Company Limited.

這項改善主要是由於玉柴安特優動力有限公司的利潤增加所致。

Income tax expense decreased by 7.4% to RMB102.4 million or USD14.4 million as compared with RMB110.6 million in the first half 2023.

所得稅費用較 2023 年上半年的人民幣 1.106 億元下降 7.4%，至人民幣 1.024 億元（1,440 萬美元）。

Net profit attributable to equity holders of the company increased by 34.7% to RMB240.3 million or USD33.7 million compared with RMB178.4 million in first half 2023.

歸屬於公司股東的淨利較2023年上半年的人民幣1.784億元成長34.7%至人民幣2.403億元，即3,370萬美元。

Basic and diluted earnings per share were RMB5.88 or USD0.83 compared with RMB4.37 in the first half 2023.

每股基本和稀釋每股收益為人民幣 5.88 元或 0.83 美元，而 2023 年上半年為人民幣 4.37 元。

Basic and diluted earnings per share for first half 2024 and first half 2023 were based on a weighted average of 40,858,290 shares.

2024年上半年和2023年上半年的基本每股盈餘和稀釋每股盈餘是基於40,858,290股的加權平均數。

Now we will move to our balance sheet highlights as of June 30, 2024.

現在我們將重點放在截至 2024 年 6 月 30 日的資產負債表要點。

Cash and bank balances were RMB6.3 billion or USD890 million compared with RMB6 billion at the end of FY 2023.

現金和銀行餘額為 63 億元人民幣（8.9 億美元），而 2023 財年末為 60 億元人民幣。

Trade and bills receivables were RMB10.2 billion or USD 1.4 billion compared with RMB 7.8 billion at the end of financial year 2023.

應收帳款和應收票據為 102 億元人民幣（14 億美元），而 2023 財年末為 78 億元。

Inventories were RMB4.6 billion or USD640.2 million compared with RMB4.6 billion at the end of financial year 2023.

庫存為 46 億元人民幣（6.402 億美元），而 2023 財政年度末的庫存為 46 億元。

Trade and bills payables were RMB8.6 billion or USD1.2 billion compared with RMB7.6 billion at the end of financial year 2023.

應付帳款和應付票據為 86 億元人民幣（12 億美元），而 2023 財年末為 76 億元人民幣。

Short-term and long-term loans and borrowings were RMB2.8 billion or USD390.6 million compared with RMB2.5 billion at the end of financial year 2023.

短期和長期貸款和借款為 28 億元人民幣（3.906 億美元），而 2023 財政年度末為 25 億元人民幣。

I will now turn the call over to Kevin for a comment for Q&A session.

我現在會把電話轉給凱文，徵求問答環節的評論。

Please note some officers of China Yuchai are remotely calling into the conference call.

請注意，中國玉柴的部分管理人員正在遠端撥入電話會議。

This may result in a slight delay in providing answers to some questions.

這可能會導致某些問題的答案略有延遲。

We apologize for any inconvenience, and thank you for your patience.

對於造成您的不便，我們深表歉意，並感謝您的耐心等待。

With that, operator, we are ready to begin the Q&A.

接線員，我們準備好開始問答了。

(Operator Instructions) Gary Nash, Nash Consulting.

（操作員說明）Gary Nash，Nash Consulting。

Thank you.

謝謝。

First, good evening, good morning, where appropriate, to everyone.

首先，酌情向大家晚上好、早安。

I guess -- my question is how much is your 2024 capital expenditures, and in which products or areas are you investing?

我想──我的問題是你們 2024 年的資本支出是多少，你們投資的是哪些產品或領域？

Okay.

好的。

In 2024, we are investing in a few areas.

2024 年，我們將在幾個領域進行投資。

Firstly, I think it is the power generation.

首先，我認為是發電。

There is quite a good demand, especially for standby power generation in the (inaudible) for the data center

有相當好的需求，特別是資料中心（聽不清楚）的備用發電

[application].

[應用]。

And the demand is actually quite strong, so that's why we are increasing our capacity in that area.

而且需求實際上相當強勁，所以這就是我們增加該領域產能的原因。

We also are investing in the wind turbine main shaft, which is a new area that we have been getting into.

我們還投資了風力發電機主軸，這是我們一直在進入的新領域。

And the other area of investment is the new energy

另一個投資領域是新能源

[side].

[邊]。

Jessica

潔西卡

[Lynn].

[林恩]。

Hello.

你好。

Good morning.

早安.

Hello.

你好。

My question is how many of the shares has the company purchased under the buyback plan that was announced in June?

我的問題是，公司根據6月宣布的回購計畫購買了多少股票？

We have purchased more than half of our target, so close to about 2.7 million, and a large part of it from the aftermarket.

我們已經購買了目標數量的一半以上，接近 270 萬輛，其中很大一部分來自售後市場。

Thank you.

謝謝。

As there are no further questions on the phone line, I would now like to hand back to the room for any questions on the webcast.

由於電話線路上沒有進一步的問題，我現在想回到會議室詢問有關網路廣播的任何問題。

We have now reached the end of our Q&A session.

我們的問答環節現在已經結束了。

I would now like to turn the call back over to Mr. Hoh.

我現在想把電話轉回給何先生。

Thank you all for participating in our conference call.

感謝大家參加我們的電話會議。

We wish each of you good health and look forward to speaking with you again.

我們祝福大家身體健康，並期待與您再次交談。

So goodbye for now.

所以現在再見了。

This concludes today's conference call.

今天的電話會議到此結束。

Thank you for participating.

感謝您的參與。

You may now disconnect.

您現在可以斷開連線。