China Yuchai International Ltd (CYD) 2024 Q4 法說會逐字稿

Good day and thank you for standing by. Welcome to China Yuchai International Limited second half and full year 2024 financial results conference call and webcast. (Operator Instructions)

您好，感謝您的支持。歡迎參加中國玉柴國際有限公司2024年下半年及全年財務業績電話會議及網路直播。（操作員指示）

Please be advised that today's conference is being recorded. I'd like now to turn the conference over to Kevin Theiss. Please go ahead, sir.

請注意，今天的會議正在錄音。現在我想將會議交給 Kevin Theiss。先生，請繼續。

Thank you for joining us today and welcome to China Yuchai International Limited's conference call and webcast for the second half and fiscal year of 2024 ended on December 31, 2024.

感謝您今天的加入我們，歡迎參加中國玉柴國際有限公司截至 2024 年 12 月 31 日的 2024 年下半年及財年電話會議和網路廣播。

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. LAI Tak Chuen Kelvin; general manager of operations of CYI and Chairman of MTU Yuchai Power Company Limited, MTU Power Company.

今天與我們一起參加的有 Weng Ming Hoh 先生和 Choon Sen Loo 先生；彼等分別為CYI之總裁及財務長。此外，出席的還有黎德全先生； CYI 營運總經理兼 MTU 動力公司 玉柴安特優動力有限公司董事長。

Before we begin, I will remind all listeners that throughout this call, we may make statements that may contain forward-looking statements within the private Securities Litigation Reform Act of 1995. The words believe, expect, anticipate, project, target, optimistic, confident that continue to predict, intend, aim, will or similar expressions are intended to identify forward-looking statements.

在我們開始之前，我要提醒所有聽眾，在整個電話會議中，我們可能會發表包含《1995 年私人證券訴訟改革法案》中前瞻性陳述的聲明。相信、期望、預期、預期、目標、樂觀、有信心繼續預測、打算、瞄準、將會或類似表達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. These forward-looking statements include but are not limited to statements concerning the company's operations and financial performance and condition and are based on current expectations, beliefs, and assumptions.

除歷史事實陳述之外的所有陳述均可視為前瞻性陳述。這些前瞻性陳述包括但不限於有關公司營運和財務表現和狀況的陳述，並且基於當前的預期、信念和假設。

Which are subject to change at any time. The company cautions that these statements by their nature involve risk and uncertainties, and actual results may differ materially, depending on 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 Form 20F under the headings risk factors.

這些內容隨時都可能改變。該公司提醒，這些聲明本質上涉及風險和不確定性，實際結果可能存在重大差異，取決於各種重要因素，例如政府和證券交易所法規、競爭、世界各地和中國的政治、經濟和社會條件，包括公司 20F 表格中「風險因素」標題下討論的因素。

Results of operations and business overview. And in other reports filed with the Securities and Exchange Commission from time to time. 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.

經營成果和業務概況。以及不時向美國證券交易委員會提交的其他報告中。所有前瞻性陳述僅在其作出之日適用，本公司明確否認有義務維護或更新前瞻性訊息，無論其性質包含在新聞稿中、今天的電話會議中還是將來的其他情況下。

Mr. Hoh will provide a brief overview and summary. Then Mr. Loo will provide the financial results for the second half and full year ended December 31, 2024. Thereafter, we will conduct a question and answer session. For purposes of today's call, the 2024 results are unaudited and the 2023 financial numbers are audited. And it would be presented in RMB and US dollars.

何先生將提供簡要的概述和總結。隨後，Loo先生將提供截至2024年12月31日的下半年和全年的財務表現。隨後，我們將進行問答環節。為了今天的電話會議的目的，2024 年的結果未經審計，而 2023 年的財務數據已經過審計。並以人民幣和美元計價。

All 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.

所有呈現的財務資訊均採用國際會計準則委員會發布的國際財務報告準則報告。何先生，請開始您的準備好的發言。

Thank you, Kevin. We are pleased to report that our unit sales outperform the Chinese truck and bus vehicle markets in the second half and for the full year 2024. According to data from China Association of Automobile Manufacturers, CAAM, compared with a 9.9% year on year decline in trucks and bus vehicle sales in second half '24, our truck and bus engine sales are up by 1.6% year on year.

謝謝你，凱文。我們很高興地報告，我們的銷售量在下半年和 2024 年全年均超過中國卡車和巴士市場。根據中國汽車工業協會（CAAM）的數據，與2024年下半年卡車和客車銷量年減9.9％相比，我們的卡車和客車引擎銷量年增1.6％。

For the full year 2024, our truck and bus engine sales rose by 17.2% year on year, compared with a 2.6% year or year decline in truck and bus vehicle sales. Our off sales rose by 12.6% year over year in the second half of 2024 and by 9.1% year over year for 2024 for full year.

2024 年全年，我們的卡車和客車引擎銷量較去年同期成長 17.2%，而卡車和客車車輛銷量較去年同期下降 2.6%。2024 年下半年我們的場外銷售額年增 12.6%，2024 年全年銷售額年增 9.1%。

Agriculture engine sales was flat in 2024, while industrial engine sales are up by 11% year over year, marine and gent engine sales increased by 25.5% year over year. Revenue in [two half], 2024 was flat compared with the same period last year. Revenue in 2024 rose by 6.6% year over year RMB 19.1 billion [or] USD 2.7 billion.

2024年農業引擎銷量持平，而工業引擎銷量較去年同期成長11%，船用和輕型引擎銷量較去年同期成長25.5%。2024年[二半年]的營收與去年同期持平。2024 年營收年增 6.6% 至 191 億元 [或] 27 億美元。

Gross profit increased faster than revenue rising by 14.3% year on year in second half 2024 and 10.8% year over year in full year 2024 to RMB 2.8 billion or USD 392.1 million compared with RMB 2.5 billion in FY 2023.Gross margin increased to 14.7% compared with 14.1% in FY 2023. The increase in drug funding was mainly attributable to higher revenue and continuing cost reduction initiative.

毛利成長快於收入，2024 年下半年年增 14.3%，2024 年全年年增 10.8%，達到 28 億元（3.921 億美元），而 2023 財年為 25 億元。毛利率從 2023 財年的 14.1% 上升至 14.7%。藥品資金的增加主要歸因於收入增加和持續的成本削減措施。

Although our operating profit decreased slightly in FY 2024, our investment in associated companies and ventures delivered higher profits, growing by 80.2% year on year in second half 2024 and by 63.6% year on year for full year 2024.

儘管我們的營業利潤在 2024 財年略有下降，但我們對聯營公司和合資企業的投資帶來了更高的利潤，2024 年下半年同比增長 80.2%，2024 年全年同比增長 63.6%。

Our fifty-fifty joint venture MTU Yuchai Power which sells large power generator engines achieve higher profit than the previous year. Our YSC engines (inaudible) achieved profitability in FY 2024 compared to the losses last year. Generator engine sales remain robust. Additionally, Yuchai's Marine and Genset Power subsidiary and Rolls-Royce Power System division have entered into a second phase cooperation and development for MTU Yuchai Power venture.

我們各佔一半股份的合資公司玉柴安特優動力銷售大功率發電機組發動機，利潤比上年有所提高。與去年的虧損相比，我們的 YSC 引擎（聽不清楚）在 2024 財年實現了盈利。發電機發動機銷售仍然強勁。此外，玉柴船舶與發電機組動力子公司和勞斯萊斯動力系統部門已就 MTU 玉柴動力合資企業達成第二階段合作與開發協議。

As part of this development, production and sales of MTU Series 4,000 oil and gas engine is expected to begin shipment in late 2025. Manufacturing capabilities will be enhance accordingly to cater to the expanded thinking box product offer. In 2024, Yuchai Machinery Power System Thailand Company or Yuchai Thailand, a mass production operation.

作為此次開發的一部分，MTU 4,000 系列油氣引擎的生產和銷售預計將於 2025 年底開始出貨。製造能力將隨之增強，以滿足擴大的思維盒產品供應。2024年，玉柴機器動力系統泰國公司或玉柴泰國公司實現量產營運。

Yuchai Thailand will mainly produce a range of diesel engines and other products for on and off-road applications. We have additionally, we entered into a comprehensive strategic cooperation agreement with Kim Long Motu Q or Kim Long Motu, a subsidiary of Vietnam's Phu Tham Group.

玉柴泰國將主要生產一系列柴油引擎和其他公路和非公路用產品。此外，我們也與越南 Phu Tham 集團的子公司 Kim Long Motu Q 或 Kim Long Motu 簽訂了全面策略合作協議。

This strategic cooperation consists of the grant and provision of technology licenses, component supply, and related support and services for the construction of a factory in Kim Long Motu's designated site in Vietnam. Kim Long Motu [10] technology licensing rights from certain Yuchai engine models to be manufactured primarily for trucks, buses, and other commercial vehicles.

此次策略合作包括授予和提供技術許可、零件供應以及在越南金龍魚指定地點建造工廠的相關支援和服務。金龍摩圖[10]獲得了玉柴某些引擎型號的技術許可權，主要用於卡車、巴士和其他商用車輛。

Kim Long will have exclusive rights, sales rights for the licenses engines in the Vietnam market, along with priority sales rights in other ASEAN countries and South Korea. These licenses are valid for 15 years, with total licensing fee of USD 28 million. The operating in China was challenging in 2024. According to the National Bureau of Statistics, Chinese GDP increased by 5% year on year in 2024.

金龍將擁有越南市場引擎的獨家銷售權，以及其他東協國家和韓國的優先銷售權。這些許可證有效期為15年，許可證費總額為2800萬美元。2024年在中國的營運充滿挑戰。根據國家統計局預測，2024年中國GDP年增5%。

The total value of our support rose to [$3 US dollars, $3.6 trillion] both of goods and services, creating a trade surplus of almost $1 trillion. Last year for 2024. However, property investment continued to decline in 2024.

我們所支持的商品和服務總價值上升至3.6兆美元，創造了近1兆美元的貿易順差。2024 年的最後一年。然而，2024年房地產投資持續下降。

In the second half of 2024, our R&D total R&D expenditures, including capitalized costs, increased by 21.2% to RMB 726 million or USD 101 million representing 8.2% of revenue in second half 2024, as compared to RMB 599.2 million representing $6.8 million of revenue in second half 2023. For FY 2024, total R&D expenditures, including capitalized costs were RMB 1.2 billion or USD 165.4 million, representing 6.2% of revenue compared with RMB 1.1 billion representing 5.9% of revenue in that 2023.

2024 年下半年，我們的研發總支出（包括資本化成本）成長 21.2% 至人民幣 7.26 億元或 1.01 億美元，佔 2024 年下半年收入的 8.2%，而 2023 年下半年為人民幣 5.992 億元，佔收入的 680 萬元，佔收入的 680 萬元，佔收入。2024 財年，包括資本化成本在內的研發總支出為 12 億元或 1.654 億美元，佔營收的 6.2%，而 2023 年為 11 億元，佔營收的 5.9%。

We continue to improve the efficiency and performance of our national sixth and tier four engines and initiated the development of the next generation and the standard emission standard engines for the on-road and off-road engine market. We continue the development of new energy products, including products using alternative fuels such as hydrogen technologies.

我們不斷提高國六和國四引擎的效率和性能，並啟動了針對公路和非公路引擎市場的下一代和標準排放標準引擎的開發。我們持續開發新能源產品，包括使用氫技術等替代燃料的產品。

Our innovative new energy power trains include two hydrogen-powered combustion engines, and of gas power generation system and a production plant which utilizes of gas discharges to generate power and eliminate greenhouse gas emissions.

我們創新的新能源動力傳動系統包括兩台氫動力內燃機、一套燃氣發電系統和一個利用氣體排放發電並消除溫室氣體排放的生產工廠。

The model YCA07N hybrid engine, which was chosen to power 10-meter gas electric hybrid buses in Nanjing. The first 50 Suzhou Qinglong buses using our hydrogen fuel cells has commenced commercial operations in Beijing. And most recently, a new foray into enhancing wind power with the launch of the high-strength QT700-10 turbine fan main shaft to improve wind turbine performance.

該引擎為YCA07N混合動力發動機，被南京10公尺氣電混合動力公車選用。首批50輛採用本公司氫燃料電池的蘇州青龍公車已在北京投入商業營運。最近，公司又在增強風力發電方面邁出了新的一步，推出了高強度的QT700-10渦輪風扇主軸，以提高風力渦輪機的性能。

In recognition of our innovative achievements which utilizes hydrogen. Guangxi Yichang Engineering Company Limited, our main operating subsidiary in China, was appointed as a committee member of the new hydrogen combustion engine Innovation Consortium, division of China Internal combustion Engine Society.

表彰我們利用氫氣的創新成就。我們在中國的主要營運子公司廣西宜昌工程有限公司被任命為中國內燃機學會新型氫能內燃機創新聯盟的委員會成員。

To encourage improved performance, selected senior leaders and key employees of each has any subsidiaries have participated incentive plans beginning in 2024. The plans are both a reward and incentive to motivate these senior leaders with key talents for their continued contributions and and their dedication and loyalty to enhance long-term growth of the company.

為鼓勵提升績效，各子公司的部分高階領導和骨幹員工自2024年起參與激勵計畫。這些計劃既是一種獎勵，也是一種激勵，旨在激勵這些擁有關鍵才能的高階領導者持續做出貢獻，並保持他們的奉獻精神和忠誠度，以促進公司的長期發展。

In early June, we adopted our first share buyback plan whereby we repurchase a total of 3.3 million shares, amounting to a total cost of USD 39.8 million.

6月初，我們採用了首個股票回購計劃，共回購330萬股股票，總成本為3,980萬美元。

In addition, The company pays a cash dividend of USD 0.38 per ordinary shares on August 28, 2024. These share repurchases and dividend distribution demonstrate the company's confidence in our future revenue, profit and cash flow generation and to show our commitment to building shareholder value.

此外，本公司將於2024年8月28日派發每股普通股0.38美元的現金股利。這些股票回購和股利分配顯示了公司對未來收入、利潤和現金流產生的信心，並表明了我們致力於創造股東價值的承諾。

Despite the share repurchase and cash dividends, our cash and bank balances were RMB 6.4 billion or USD 895 million as at 31, December 2024. With that, I would now like to turn the call over to Mr. Loo Choon Sen, our Chief Financial Officer, who will provide more details on the financial results. She said he may begin your remarks.

儘管進行了股份回購和現金分紅，截至 2024 年 12 月 31 日，我們的現金及銀行存款仍為人民幣 64 億元或 8.95 億美元。現在，我想將電話轉給我們的財務長 Loo Choon Sen 先生，他將提供有關財務結果的更多詳細資訊。她說他可以開始你的發言了。

Thank you, Weng Ming. Now let me review our [unaudited] six month results ended December 31, 2024. Revenue was RMB 8.8 billion or USD1.2 billion compared with RMB 8.9 billion in the second half of 2023. The total number of engines sold in the second half of 2024 increased by 10.9% to [163,843] units compared with 1,47,700 units in the second half of 2023. The increase was mainly due to higher sales in truck, bars, industrial, and marine and power generation markets.

謝謝你，翁明。現在讓我回顧一下截至 2024 年 12 月 31 日的六個月[未經審計]業績。收入為 88 億元（約 12 億美元），而 2023 年下半年為 89 億元。2024 年下半年售出的引擎總數為 [163,843] 台，與 2023 年下半年的 1,47,700 台相比，成長了 10.9%。成長主要歸因於卡車、酒吧、工業、船舶和發電市場的銷售成長。

The better performance in truck and bus engine sales was achieved despite a decline by 9.9% in sales of commercial vehicles. Excluding gasoline and electric powered vehicles compared to second half 2023, as reported by the China Association of Automobile Manufacturers, CAAM. Gross profit increased by 14.3% to RMB 1.4 billion or USD 195.7 million from RMB1.2 billion in the second half of 2023. The increase was mainly due to higher unit sales volume combined with lower material cost.

儘管商用車銷量下降了 9.9%，但卡車和巴士引擎的銷售表現仍然較好。根據中國汽車工業協會 (CAAM) 報告，與 2023 年下半年相比，不包括汽油和電動車。毛利從 2023 年下半年的人民幣 12 億元成長 14.3% 至 14 億元或 1.957 億美元。成長的主要原因是單位銷售量增加以及材料成本下降。

Overall gross margin was 15.9% in the second half of 2024 compared with 13.9% in the second half of 2023. Other opening income increased by 31.2% to RMB 401.5 million or USD 55.9 million compared with RMB 306.2 million in the second half of 2023. The increase was mainly due to higher government grants, higher rebate on value added taxes, and recognition of technology licensing fees.

2024 年下半年整體毛利率為 15.9%，而 2023 年下半年為 13.9%。其他開業收入較 2023 年下半年的人民幣 3.062 億元成長 31.2% 至人民幣 4.015 億元或 5,590 萬美元。成長的主要原因是政府補助增加、增值稅退稅增加以及技術許可費的確認。

Research and development R&D expenses increased by 25.6% to RMB 591.1 million or USD 82.2 million compared with RMB 470.5 million in the second half of 2023 due to higher more cost and impairment of a discontinued R&D project.

研發費用由 2023 年下半年的人民幣 4.705 億元增加 25.6% 至人民幣 5.911 億元或 8,220 萬美元，原因是成本增加以及已終止的研發項目減損。

Total R&D expenditures, including capitalized cost will I be RMB 726 million or USD 101 million representing 8.2% of revenue in the second half of 2024 as compared to RMB 599.2 million representing 6.8% of revenue in the second half 2023.

包括資本化成本在內的總研發支出將達到人民幣 7.26 億元或 1.01 億美元，佔 2024 年下半年收入的 8.2%，而 2023 年下半年為人民幣 5.992 億元，佔收入的 6.8%。

Selling, general and administrative SGA expenses increased by 25.1% to RMB 1.1 billion or USD 147 million from RMB 844.6 million in second half 2023. This increase was mainly due to higher receivables permission and higher traveling personnel and selling expenses compared with the same period last year. SG&A expenses represented 12% of revenue for 2024 compared with 9.5% for second half 2023.

銷售、一般及行政費用從 2023 年下半年的人民幣 8.446 億元增加 25.1% 至 11 億元或 1.47 億美元。成長的主要原因是應收帳款許可證較上年同期增加以及差旅人員和銷售費用增加。2024 年，銷售、一般及行政費用佔收入的 12%，而 2023 年下半年為 9.5%。

Operating profit declined to RMB 160.1 million or USD 22.3 million from RMB 221.8 million in the second half of 2023. The opening margin was 1.8% compared with 2.5% in 2023. Finance costs decreased by 20.4% to RMB 37.1 million or USD 5.2 million from RMB 46.5 million in the second half of 2023, primarily due to lower bills discounting.

營業利潤從 2023 年下半年的人民幣 2.218 億元下降至人民幣 1.601 億元或 2,230 萬美元。開業利潤率為 1.8%，而 2023 年為 2.5%。財務成本從 2023 年下半年的人民幣 4,650 萬元下降 20.4% 至人民幣 3,710 萬元或 520 萬美元，主要原因是票據貼現減少。

The share of financial results of the associates and joint ventures grew by 80.2% to a profit of RMB 58.5 million or USD 8.1 million compared with RMB 32.5 million in the second half of 2023. The improvement was mainly driven by higher profits at MTU Yuchai Power Company Limited.

聯營公司和合資公司的財務業績份額增長了 80.2%，實現利潤 5,850 萬元或 810 萬美元，而 2023 年下半年為人民幣 3,250 萬元。這一成長主要得益於玉柴安特優動力有限公司的利潤提高。

MTU Yuchai, Additionally, YSC Engine Company Limited, YSC Engine and Guangxi program. Yuchai automotive LG Company Limited. Program Yuchai reach high achieved profitability in the second half of 2024 compared to a loss in the same period last year.

玉柴安特優、此外還有玉柴引擎有限公司、玉柴引擎公司和廣西專案。玉柴汽車LG有限公司。玉柴計劃在2024年下半年獲利，去年同期則為虧損。

Income tax was RMB 26.4 million or USD 3.7 million compared with RMB 37.9 million in the second half of 2023. Net profit attributable to equity holders of the company was RMB 82.7 million or USD 11.5 million compared with RMB 107.1 million in the second half of 2023.

所得稅為人民幣 2,640 萬元（370 萬美元），而 2023 年下半年為 3,790 萬元。歸屬於公司股東的淨利潤為人民幣 8,270 萬元（約 1,150 萬美元），而 2023 年下半年為 1.071 億元。

Basic and directed earnings per share were RMB 2.19 or USD 0.30 compared with RMB 2.62 in the second half of 2023. Basic and earnings per share for second half 2024 and second half 2023 were based on the weighted average of 37,809,894 shares. And 40,858,290 shares respectively.

每股基本和預期收益為人民幣 2.19 元或 0.30 美元，而 2023 年下半年為 2.62 元。2024 年下半年和 2023 年下半年的基本每股盈餘和每股盈餘是根據 37,809,894 股的加權平均數。及40,858,290股。

Now we review the unaudited financial results for the fiscal year ended December 21, 2024. Revenue was RMB 19.1 billion or USD 2.7 billion compared with RMB 18 billion in financial year 2023. The total number of energy sold in financial year increased by 13.7% to 3,56,586 units compared with 313,493 units in FY 2024. The increase was mainly due to higher sales in the truck, bus, industrial, and marine and power generation markets.

現在我們審查截至 2024 年 12 月 21 日的財政年度的未經審計財務結果。收入為 191 億元（約 27 億美元），而 2023 財年為 180 億元。本財政年度售出的能源總量為 3,56,586 單位，而 2024 財年為 313,493 單位，成長了 13.7%。成長主要歸因於卡車、巴士、工業、船舶和發電市場的銷售成長。

The stronger performance in truck and bus engine sales was achieved despite a 2.6% year on year decrease in sales of commercial vehicles, excluding gasoline and electric power vehicles in financial year 2024 as reported by CAAM. Gross profit increased by 10.8% to RMB 2.8 billion or USD 392.1 billion compared with RMB 2.5 billion in FY 2023. Gross margin increased to 14.4% compared with 14.1% in financial year 2023.

根據中汽協報告，儘管2024財年商用車（不包括汽油車和電動車）銷量較去年同期下降2.6%，但卡車和客車引擎的銷量仍表現強勁。毛利為人民幣 28 億元（3,921 億美元），較 2023 財年的 25 億元 25 億元增長 10.8%。毛利率由2023財年的14.1%上升至14.4%。

The increase in block margin was mainly attributable to higher venue from increased unit volume and continuing cost reduction initiative, partially offset by greater labor and overhead expenses.

區塊利潤的增加主要歸因於單位數量增加帶來的場地成本增加和持續的成本削減舉措，但勞動力和管理費用的增加部分抵消了這一增長。

Other operating income increased by 30.1% to RMB 575.7 million or USD 80.1 million compared with RMB 442.4 million in financial year 2023. The increase was mainly due to higher government grants, higher rebate on value-added taxes, and recognition of technology licensing fees.

其他營業收入較 2023 財年的 4.424 億元成長 30.1% 至 5.757 億元或 8,010 萬美元。成長的主要原因是政府補助增加、增值稅退稅增加以及技術許可費確認。

R&D expenses increased by 12.3% to RMB 984.7 million or USD 137 million compared with RMB 876.6 million in financial year 2023, mainly attributable to higher more cost and impairment of a [discontinue R&D] project.[I had continued with] its initiative to enhance the engine efficiency and performance of its national 6 and tier 4 emission standard compliant engines, marine power generation applications, wow, and one thing new energy solutions.

研發費用為人民幣 9.847 億元（1.37 億美元），而 2023 財年為人民幣 8.766 億元，增長 12.3%，主要原因是 [停止研發] 項目的成本增加和減值。 [我繼續] 提高符合國六和 Tier 4 排放標準的引擎、船舶發電應用、哇，以及一項新能源解決方案的效率和性能的舉措。

Total R&D expenditures, including capitalized cost will RMB 1.2 billion on USD 165.4 million, representing 6.2% of revenue for financial year 2024 compared with RMB 1.1 billion representing 5.9% of revenue for financial year 2023.

包括資本化成本在內的總研發支出將達到 1.654 億美元，即 12 億元人民幣，佔 2024 財年收入的 6.2%，而 2023 財年的總研發支出為 11 億元人民幣，佔營收的 5.9%。

SGA expenses were RMB 1.8 billion or USD 252.1 million, representing 9.5% of revenue in FY 2024 compared with RMB 1.5 billion representing 8.3% of revenue in FY 2023. This increase was mainly due to higher credit receivables provision and higher traveling personnel and selling expenses compared with financial year 2023.

2024 財年銷售及一般行政費用 (SGA) 為人民幣 18 億元（2.521 億美元），佔營收的 9.5%，而 2023 財年為人民幣 15 億元，佔營收的 8.3%。這一增長主要是由於與 2023 財年相比，應收信貸撥備增加以及差旅人員和銷售費用增加。

Operating profit was RMB 597 million or USD 83 million compared with RMB 609.4 million in financial year 2023. The opening margin was 3.1% compared with 3.4% in financial year 2023. Finance cost decreased by 22.2% to RMB 78 million or USD 10.8 million from RMB 100.2 million in financial year 2023, primarily due to lower bills discounting. The share of financial results of the associates and joint ventures increased by 63.6% to income of RMB 101.5 million or USD 14.1 million compared with income of RMB 62.1 million in financial 2023.

營業利潤為人民幣 5.97 億元（約 8,300 萬美元），而 2023 財年為人民幣 6.094 億元。開業利潤率為 3.1%，而 2023 財年為 3.4%。財務成本從 2023 財年的人民幣 1.002 億元下降 22.2% 至人民幣 7,800 萬元或 1,080 萬美元，主要原因是票據貼現減少。聯營公司和合資公司的財務表現份額增長了 63.6%，達到人民幣 1.015 億元或 1,410 萬美元，而 2023 財年的收入為人民幣 6,210 萬元。

The improvement was mainly driven by higher profits and NGO each. Additionally, YSC engine and program each achieved profitability in financial year 2024 compared to a loss last year.

這種改善主要得益於更高的利潤和非政府組織的努力。此外，YSC 引擎和專案在 2024 財年均實現盈利，而去年則出現虧損。

Income tax expenses declined by 13.3% to RMB 128.8 million or USD 17.9 million as compared with RMB 148.5 million in financial year 2023. Net profit attributable to China Yuchai's shareholders was RMB 323.1 million or USD 44.9 million compared with RMB 285.5 million in financial year 2023. Basic and valued earnings per share were RMB 8.21 or USD 1.14 compared with RMB 6.99 in financial year 2023.

所得稅費用為人民幣 1.288 億元或 1,790 萬美元，較 2023 財年的人民幣 1.485 億元下降 13.3%。歸屬於中國玉柴股東的淨利潤為人民幣 3.231 億元（約 4,490 萬美元），而 2023 財年為 2.855 億元。每股基本收益和估值收益為 8.21 元或 1.14 美元，而 2023 財年為 6.99 元。

Basic and directed earnings per share for FY 2024 and FY 2023 were based on the weighted average of 39,3085,753 shares and 140,858,290 shares respectively. As of December 21, 2024, the company of the shares were following a share buyback plan reduced to 37,518,382. From 40,858,290 shares as of December 31, 2023. Now we'll go through our balance sheet highlights as of December 21, 2024.

2024 財年和 2023 財年的每股基本收益和預期每股收益分別基於 39,3085,753 股和 140,858,290 股的加權平均數。截至2024年12月21日，本公司股份已依股票回購計畫減至37,518,382股。截至 2023 年 12 月 31 日，共 40,858,290 股。現在讓我們來回顧一下截至 2024 年 12 月 21 日的資產負債表要點。

Cash and bank balances for RMB 6.4 billion or USD 895 million compared with RMB 6 billion at the end of financial year 2023. Trade and bills receivables were RMB 8.8 billion or USD 1.2 billion compared with RMB 7.8 billion at the end of financial year 2023. Inventories were RMB 4.7 billion or USD 647.5 million compared with RMB 4.6 billion at the end of financial year 2023. Trade and bills receivable will RMB 8.5 billion or USD 1.2 billion compared with RMB 7.6 billion at the end of financial year 2023.

現金及銀行存款為人民幣 64 億元或 8.95 億美元，而 2023 財年末為人民幣 60 億元。貿易應收款項及票據應收款項為人民幣 88 億元或 12 億美元，而 2023 財年末為人民幣 78 億元。庫存為人民幣 47 億元（6.475 億美元），而 2023 財政年度末為人民幣 46 億元。貿易應收帳款和應收票據將達到 85 億元或 12 億美元，而 2023 財年末為 76 億元。

Short term and long term loans and borrowings were RMB 2.5 billion or USD 349.1 billion compared with RMB 2.5 billion at the end of financial year 2023. I will now turn the call over to Kevin for a comment for the Q&A section.

短期和長期貸款和借款為人民幣 25 億元或 3,491 億美元，而 2023 財年末為人民幣 25 億元。現在我將把電話轉給凱文，請他針對問答部分發表評論。

Thank you, Choon sen. Please note, some officers of China Yuchai are remotely calling into 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 ready to begin the Q&A.

謝謝你，Choon sen。請注意，中國玉柴的一些官員正在遠端撥打電話會議。這可能會導致某些問題的答案稍微延遲。對於造成您的不便，我們深表歉意，並感謝您的耐心等待。有了這個操作員，我們就可以開始問答了。

Thank you. (Operator Instructions)

謝謝。（操作員指示）

We will now take our first question from the line of Yiming Liu from High town Securities. Please ask your question, Yiming.

現在我們來回答高城證券劉一鳴提出的第一個問題。請提出你的問題，一鳴。

No, this is, Yiming from High town Securities. Thank you very much for having me. So I have two questions. Number one is about your data center generator business. So, looks like your JB with MTU got a very good result in a '24, but, so I'm just wondering how many units did you sell from both sides, I mean from both G and YCL you are controllings and from the NTU JB. Yeah, this is my question number one. Thanks.

不是，我是高城證券的李一鳴。非常感謝你們的邀約。我有兩個問題。第一點是關於您的資料中心發電機業務。因此，看起來您的 JB 與 MTU 在 '24 年取得了非常好的成績，但是，我只是想知道您從雙方銷售了多少台，我的意思是從您控制的 G 和 YCL 以及從 NTU JB 銷售了多少台。是的，這是我的第一個問題。謝謝。

Okay, can [Kelvin take the question], please.

好的，請問 Kelvin 可以回答這個問題嗎？

Hi, regarding on the genset sales and genset engine sales and then from 2024, our, the NTU joint venture sales is about, more than 700 units. But this is including not only not all for data centers is is including the other applications and for the GIM so the high horsepower we saw last year is about 1,000, no, it's about 800, yeah, altogether, yeah, but that is again and then it will be putting our application.

您好，關於發電機組銷售和發電機組發動機銷售，從 2024 年開始，我們 NTU 合資企業的銷售量約為 700 多台。但這不僅包括資料中心，還包括其他應用程式和 GIM，所以我們去年看到的高馬力大約是 1,000，不，大約是 800，是的，總共是的，但那是再次，然後它將投入我們的應用程式。

Yeah.

是的。

Okay. All right, thank you. So just a continuation of this question. So, looks like MTU JB was very profitable, and so I wonder what is the probability of your, of this type of generators in the GMYCL? Either in terms of like gross margin or net net margin or something like that.

好的。好的，謝謝。這只是這個問題的延續。因此，看起來 MTU JB 非常有利可圖，所以我想知道在 GMYCL 中使用這種類型發電機的可能性有多大？無論是毛利率或淨利率，或諸如此類。

Thanks.

謝謝。

I'm sorry that we cannot call the margin of the two different type of engines because and then the, in terms of the of the output or in terms of the performance and then both engine and then can meet with the requirement of the data center requirement and they they had the very similar power range and the suitable for the major streamline of the data center construction and so I would take this way and then the NTU is because the international branding and then there will be some premium and then the end user would like to buy them and but for the price wise and then I cannot make any comment.

很抱歉，我們無法比較兩種不同類型引擎的利潤率，因為就輸出或性能而言，兩種引擎都可以滿足資料中心的要求，而且它們具有非常相似的功率範圍，適合資料中心建設的主要流程，所以我會選擇這種方式，而 NTU 是因為它是國際品牌，所以會有一些溢價，最終用戶會願意購買它們，但就價格而言，我無法發表任何價格。

Okay, understood. Thank you. So my question number two is what is the expected growth rate on the data center generator business in '25? If it's possible, could you describe separately for the GMYCL and the and the JV business? I wonder if there's any difference and what is the exact growth rate in '25. Thanks.

好的，明白了。謝謝。所以我的第二個問題是，25 年資料中心發電機業務的預期成長率是多少？如果可以的話，您能否分別描述一下 GMYCL 和合資業務？我想知道是否存在差異以及 25 年的具體成長率是多少。謝謝。

I would say it this way, the, no matter the GYMCL or the MTU, joint venture and the, our order book for 2025 is already full, and then we are actually and then we are we are refusing for the order because we cannot take any because due to the capacity is constraint or due to the component supply, but, I would say and then the in the 2025. It's very low compared to last year. It's at least 30%.

我想這樣說，無論是 GYMCL 還是 MTU 合資企業，我們 2025 年的訂單都已經滿了，然後我們實際上拒絕了訂單，因為我們無法接受任何訂單，因為產能限製或零部件供應有限，但是，我想說，然後在 2025 年。與去年相比，這個數字非常低。至少有30%。

Okay, great. Thank you. So just one more additional question. So it looks like the profit attributed to the minorities in the second half of '24 was pretty high. I just calculated it it looks like it was like 47% of the total profit. So would that be a constant value in the future, because in the past, it looks like it was like 30% or so. Thanks.

好的，太好了。謝謝。再問一個問題。因此看起來，24 年下半年少數族裔獲得的利潤相當高。我剛剛計算了一下，看起來這佔了總利潤的 47%。那麼這在未來會是一個恆定值嗎，因為在過去，它看起來是 30% 左右。謝謝。

Okay, let me answer that question. Compared to the past, I think, our, the performance of our associate companies has been significantly better, in particular MTO because I feel alluded to earlier, where there's a big growth and demand for the data centers which fits right into our product offering.

好的，讓我來回答這個問題。與過去相比，我認為，我們的關聯公司的業績明顯更好，特別是 MTO，因為我感覺之前提到過，那裡的資料中心有很大的成長和需求，這正好符合我們的產品供應。

And at the same time, our other associate companies, joint ventures. There are a couple of them most significant ones have turned from, losses to profitability. So that's why this year you're seeing a largest, whitefall, number for our, associate trumpets. It Is that a sufficient?

同時，還有我們的其他聯營公司和合資企業。其中有幾家最重要的公司已經轉虧為盈。這就是為什麼今年我們會看到小號方面出現最大數量白雪的原因。這樣就夠了嗎？

Okay. All right, thanks. I'm sorry, just one more question. So looks like there's an item called Operational profit or something, which is pretty big. It was like RMB 500 million in '24. So, I wonder how to expect that in the future. So is that going to be like proportional to your revenue or something like that? Thanks.

好的。好的，謝謝。抱歉，我還有一個問題。因此看起來有一項稱為「營業利潤」的項目，金額相當大。1924 年約 5 億元。所以，我不知道未來會發生什麼事。那麼這是否與您的收入成比例或類似呢？謝謝。

Sorry, can you repeat the question? I missed that.

抱歉，您能重複這個問題嗎？我錯過了。

Sorry, can you repeat your question? (inaudible)

抱歉，您能重複您的問題嗎？（聽不清楚）

[Pretty big item income].

[相當大的物品收入]。

(inaudible)

（聽不清楚）

All right, we have lost the line of Yiming. So we'll take our next question from Peng Yubai from Pinpoint Asset Management. Please ask your question, Peng.

好的，我們已經失去了與一鳴的連結。那麼我們的下一個問題來自 Pinpoint Asset Management 的彭玉柏。請提出你的問題，彭。

Hi. Actually, I have a question is, are we going to raise our price since the demand for, I think two megawatt generators in China, AIDC is very strong, and, as we know, the supply is fixed. So in the future, both regarding 2025 and also '26, are we going to raise our price for the generator? That's my first question.

你好。實際上，我有一個問題，我們是否會提高價格，因為我認為中國對兩兆瓦發電機的需求非常強勁，而且我們知道供應是固定的。那麼在未來，也就是 2025 年和 2026 年，我們會提高發電機的價格嗎？這是我的第一個問題。

Well, I mean, in terms of raising price, I think we will, of course, there will be some improvements in the pricing, but at this stage now, we haven't had any significant plans to increase in a big way, but we believe there will be some improvement in pricing.

嗯，我的意思是，就提高價格而言，我認為我們當然會在定價方面有所改善，但目前這個階段，我們還沒有任何大幅提高價格的重大計劃，但我們相信定價會有所改善。

Okay. Gotcha. So, as I understand, we are going to increase our price, but it's not right now, maybe in the future. Okay. My next question is, are we going to produce the generator set or the module by ourselves since we only produce generator right now. So, are we going to do the set in the future if. (multiple speakers)

好的。明白了。因此，據我了解，我們將提高價格，但不是現在，也許是將來。好的。我的下一個問題是，由於我們目前只生產發電機，我們是否要自己生產發電機組或模組。那麼，我們將來還會做這個設定嗎？（多位發言者）

The there's no plan for that. We are actually an engine manufacturer, so we only produce, we produce the engines mostly, for our OEM customers. If there is any customers want us to to produce the jet set, we can work on that, but that will not be our main business.

目前還沒有這樣的計劃。我們實際上是一家發動機製造商，因此我們只為我們的 OEM 客戶生產發動機，我們主要生產發動機。如果有客戶希望我們生產噴射機，我們可以做，但這不是我們的主要業務。

Okay. Gotcha. So, my last question is, as I just heard that we already produced, anyway, 700 or 800 generators in the last year. So, what is our capacity plan for 2025 and also for '26? Are we going to increase it by a very strong number, for example, above 100%? Can you, actually give us some color in this question? Yeah.

好的。明白了。所以，我的最後一個問題是，我剛剛聽說我們去年已經生產了 700 或 800 台發電機。那麼，我們 2025 年和 2026 年的產能計畫是什麼？我們是否要將其增加一個很大的數字，例如超過 100％？您能給我們解釋一下這個問題嗎？是的。

Calvin can you take that question? (inaudible)

卡爾文，你能回答這個問題嗎？（聽不清楚）

So, are we going to expand our capacity for a very large number? In the future. In this year and also. (multiple speakers)

那麼，我們是否要擴大我們的容量以容納大量的人？將來。今年也。（多位發言者）

Actually, and then we have the planning and then to increasing our to expand our capacity since last year and the but you know the two I mean that there's a two [different major factory and then] we have to consider first is regarding how to How can we increasing our supply of the casting for the for the for the big engine on the like the engine block and engine heads and then (inaudible) authority of the machining center and then will be arrival you try and then by mid this year so.

實際上，我們有計劃，並從去年開始擴大我們的產能，但你知道，我的意思是有兩個 [不同的主要工廠，然後] 我們首先要考慮的是如何增加大型發動機鑄件的供應，比如發動機缸體和發動機蓋，然後（聽不清）加工中心的權威，然後你試試，然後在今年年中到達。

Lightly and then by end of this year and then we can increasing our capacity and the, we will be gradually running up and so the next year and then we'll be about 35% to 40% increase and then we'll be another further up on the 2027. So this is our current pending on how to try to meet up with the market demand.

稍微增加一點，然後到今年年底，我們就可以增加我們的產能，然後我們會逐步提高，到明年，我們的產能將增加約 35％ 到 40％，然後在 2027 年，我們將進一步提高產能。因此，這是我們目前面臨的問題，即如何滿足市場需求。

Oh, okay. Gotcha. So, you just mentioned that the growth rate is about 30% to 40%. So at least for this year, we are going to have more than 1,000 to two megawatts generators capacity in this year, right? It's more than 1,000.

哦好的。明白了。所以，您剛才提到成長率大約是30%到40%。所以至少今年，我們的發電機容量將超過 1,000 到 2 兆瓦，對嗎？超過1000了。

Yeah

是的

all right. Gotcha. And I believe that's all my questions. Thank you.

好的。明白了。我相信這就是我的全部疑問。謝謝。

Thank you. (Operator Instructions)

謝謝。（操作員指示）

We will now take our third question from the line of Andy Lee from Daiwa. Please ask your question, Andy.

現在讓我們來回答 Daiwa 的 Andy Lee 提出的第三個問題。請提出你的問題，安迪。

Hi, thank you for taking my question. This is Andy Lee from Daiwa. Yeah, I just want to quickly clarify. I think I heard another 30% capacity up in '27, right?

你好，謝謝你回答我的問題。我是 Daiwa 的 Andy Lee。是的，我只是想快速澄清一下。我記得我聽說 27 年產能又增加了 30%，對嗎？

Yeah, by 2026, yeah.

是的，到 2026 年，是的。

Hello?

你好？

I mean, we are, building capacity now the capacity will come on stream by 2026. Can you hear us, Andy Lee.

我的意思是，我們現在正在建立產能，這些產能將於 2026 年投入使用。你聽得到我們說話嗎，安迪李。

He lost it

他失去了

Daiwa, can you can you hear us?

大和，你聽得到我們說話嗎？

No, I can't hear anything, yeah.

不，我什麼都聽不到，是的。

Yeah, if we have lost it there.

是的，如果我們在那裡丟失了它。

We have lost the line of Andy. If you have further questions, please request to rejoin the queue. I'll be turning back to the presenters in the room for webcast questions.

我們失去了安迪的聯繫。如果您還有其他問題，請要求重新加入佇列。我將回到會議室向主持人詢問網路直播問題。

Okay, there are a few questions from webcast. The first I'm going to read out now is the search in demand for producer engines, driven by AI data centers. Will that have an impact on the revenue growth? Will they give us some color on both revenue and net profit impact from AI. And now, yes, there's a big demand now for data centers, we called segment of business. We expect to see growth in it growth as we discussed earlier.

好的，網路直播有幾個問題。我現在要讀出的第一項是人工智慧資料中心推動的生產者引擎需求搜尋。這會對收入成長產生影響嗎？他們能否向我們介紹人工智慧對營收和淨利的影響？是的，現在對資料中心的需求很大，我們稱之為業務部分。正如我們之前所討論的，我們預計它的成長將會實現。

So yeah, that will have an impact on our, definitely have an impact on our revenue growth, particularly for that particular segment. Now, how is that going to impact our overall like our business revenue or our group revenue that I don't think that we are ready to release that part of that information.

是的，這肯定會對我們的收入成長產生影響，特別是對於那個特定的部分。現在，這將如何影響我們的整體業務收入或集團收入？我認為我們還沒有準備好發布這部分資訊。

And we can't unfortunately, I can't tell you exactly how much revenue it is for this segment, not the profit impact for this segment. So the next question is from Jack Xia. Congratulations on your great performance currently. And explosive growth in the effects of major Chinese internet companies leads to significant shortage of power generators. If you entered Domestic data set mark with major clients. Is there room for price increase?

不幸的是，我們不能，我無法告訴你這個部分的具體收入是多少，也不能告訴你這個部分對利潤的影響。下一個問題來自 Jack Xia。恭喜您目前的出色表現。而中國各大網路公司效應的爆發性成長，導致發電量嚴重短缺。如果您輸入國內資料集並標記主要客戶。還有漲價空間嗎？

What's your future expansion plan? Can you share your overall outlook for data generators of IDC sector this year? Kevin (inaudible)

您未來的擴展計劃是什麼？能否分享一下今年IDC領域資料產生器的整體展望？凱文（聽不清楚）

Sorry.

對不起。

you have to answer this question.

你必須回答這個問題。

Can you repeat the question?

你能重複一下這個問題嗎？

You can see it. (multiple speakers)

你可以看到它。（多位發言者）

I can't see.(multiple speakers)

我看不見。 （多位發言者）

Okay. All right. So sorry, Kelvin is calling from China, so he probably can't see the question. Okay, let me answer some of it, right? So have you entered domestic data center market with major clients? Yes, we have entered China domestic market, and we have orders from some of the big data centers, operators in China. We also, not only that, we also expanded to the sub-estation market as well.

好的。好的。非常抱歉，Kelvin 是從中國打來的，所以他可能看不到這個問題。好的，讓我來回答一些問題，可以嗎？那麼你們是否已經進入國內資料中心市場並且擁有大客戶了？是的，我們已經進入中國國內市場，並且獲得了中國一些大型資料中心和營運商的訂單。不僅如此，我們還將業務擴展到了住宅小區市場。

So yes, is there room for price increase, we think there'll be improvement, but again, a lot of these data centers, for, sales, achieved through a tender. So in the case of a tender, the price is actually quite transparent, right? So, we do expect to see improvement, but it's, I don't think it's going to be a huge improvement unless everybody also increase, the price accordingly. So it's still a very competitive, industry out there for, gensets.

所以是的，價格還有上漲的空間嗎？我們認為會有改善，但同樣，許多資料中心的銷售都是透過招標實現的。那麼在招標的情況下，價格實際上是相當透明的，對嗎？因此，我們確實希望看到改善，但我認為，除非每個人都相應地提高價格，否則這不會是一個巨大的改善。因此，發電機組行業仍然是一個競爭非常激烈的行業。

What is your future expansion plan? We are building capacity to cater to cater to the huge demand that we saw this year. So we expect the capacity to come on stream next year in 2026 for both ourselves GICL as well as the NTU. And can you share your overall outlook for this engine diesel generated business of IDC sector this year.

您未來的擴展計劃是什麼？我們正在建立產能以滿足今年看到的巨大需求。因此，我們預期 GICL 和 NTU 的產能將於明年（2026 年）投入使用。您能否分享一下今年 IDC 部門柴油引擎業務的整體展望？

We believe this year is going to be significant growth. There's a lot of demand out there still. So and this demand has not been, what got satisfied as of this year. As Kevin mentioned earlier, our order book is full for the year. So we we are, we will expect to see more demand next year, I would think. But by then the capacity for most of the these tractors and the jet site manufacturers over yes would have also increased the economy, so we believe that the, a lot of the demand will be satisfied next year or in the next two years.

我們相信今年將會顯著成長。市場需求仍然很大。所以，截至今年，這項需求尚未被滿足。正如凱文之前提到的，我們今年的訂單已經滿了。所以我認為，我們預計明年的需求會更多。但到那時，大多數拖拉機和噴射機場地製造商的產能也會增加，因此我們相信，許多需求將在明年或未來兩年得到滿足。

R&D, the next question is from from Jay Chan. Your R&D expenses grew meaningfully in 2024 in excess of revenue. What sort of R&D expense growth should we expect in 2025? Was it moderate? Okay, so we will answer this question.

研發部，下一個問題來自 Jay Chan。2024 年，您的研發費用大幅成長，超過了收入。2025 年研發費用預計會出現什麼樣的成長？適度嗎？好的，我們將回答這個問題。

Hi, Jay Chan, yeah, thank you for the questions. Yeah, we respect the, 2025, we remain, pretty much the same or slight increase. What happened is that we are, we are balancing that, the market, demand, right? So we have commercial retail and then we have offload, marine power generation and, induction and so forth. So we are balancing the the spend, but overall, I need. Spend will continue, we'll continue to maintain that, to improve our engine efficiency and performance, that we will not slow down, we'll continue to do that, and but overall expense perspective. We will still maintain and, we will have moderate increased defense.

你好，Jay Chan，謝謝你的提問。是的，我們尊重這一目標，到 2025 年，我們的目標將保持不變或略有增加。實際情況是，我們正在平衡市場需求，對嗎？因此，我們有商業零售，然後我們有卸貨、船舶發電和感應等等。所以我們正在平衡支出，但總的來說，我需要。支出將繼續，我們將繼續保持這一點，以提高我們的引擎效率和性能，我們不會放慢速度，我們會繼續這樣做，但從整體費用角度來看。我們仍將維持並適度增加防禦。

Okay. So next question again from the same person, does management expect a growth acceleration in 2025 on the back of a national six [four-trust trade-in policy?] Yes, we do hope to see some more, some some acceleration, but it's very hard to, determine how much they will be for now. Yeah, the chances, yes.

好的。那麼，同一個人又問了下一個問題，管理階層是否預期在國家六項 [四信託以舊換新政策] 的支持下，2025 年的成長會加速？是的，我們確實希望看到更多的成長，一些加速，但目前很難確定會加速多少。是的，機會是的。

The last question on the website page is, your SG&A expense increased a lot in second half to '24. Could you please give us some guidance on the trend going forward?

網站頁面上的最後一個問題是，你們的銷售、一般及行政費用在 24 年下半年大幅增加。您能否給我們一些關於未來趨勢的指導？

Okay, I will take this question, Lastly, thank you for the question. Yeah, in fact, our second half, 2024, our actually expenses, mainly, they increase mainly cost by the, receivers provision, right? So that we have accounted for that in 2024, although the market still, challenging, we expect that, will be better in the 2025 in terms of our trade receivable provisions. So, other than that, the spending, the spending will will pretty much remain the same as the 2024 level, but of course, when we continue to expand our part and overseas market, that you expect was slight increase, from that perspective.

好的，我會回答這個問題，最後，感謝您的提問。是的，事實上，我們的下半年，也就是 2024 年，我們的實際費用主要是透過接收方提供的資金增加成本，對嗎？因此，我們在 2024 年已經考慮到了這一點，儘管市場仍然充滿挑戰，但我們預計，到 2025 年，我們的貿易應收款撥備將會更好。因此，除此之外，支出將基本保持與 2024 年的水平相同，但當然，當我們繼續擴大我們的部分和海外市場時，從這個角度來看，您預計支出會略有增加。

Right, thank you. We will now take our next phone question from the line of Andy Lee from Daiwa. Please ask your question, Andy.

好的，謝謝。我們現在將接聽來自 Daiwa 的 Andy Lee 的下一個電話提問。請提出你的問題，安迪。

Hi, I'm back. This is Andy. My line was cut off. Hope my phone work properly this time. Yeah, thanks for the clarification before.So my question is on the associates and JV profit.

嗨，我回來了。這是安迪。我的電話被切斷了。希望這次我的手機能正常運作。是的，感謝您之前的澄清。我的問題是關於聯營公司和合資企業的利潤。

This accounted for over 30% of your second half profit. So I was just wondering, could you please break down how much is from MTU you try? And I also know you have different lines of production lines for MTU. So can you walk us through which lines are for the large power generators applicable for data centers Please?

這佔了你下半年利潤的30%以上。所以我只是想知道，您能否分解一下您嘗試的 MTU 是多少？我還知道你們擁有多條 MTU 生產線。那麼，您能向我們介紹一下適用於資料中心的大型發電機的線路嗎？

Okay, Kevin, you want to take a question?

好的，凱文，你想回答一個問題嗎？

I mean, the, regarding on the product wise and. The MTU product at the moment and then we had different cylinder configuration. So we have the 12V 12 cylinder and the 16V 16,6 cylinder, 16 cylinder and also the 20V that's the the 20 cylinder. So I think the I would say this way, the bigger the engine and then the better the return because of the limited. I mean the competition because of the high horsepower engine.

我的意思是，就產品而言。目前的 MTU 產品和我們的汽缸配置不同。因此，我們有 12V 12 缸和 16V 16.6 缸、16 缸，還有 20V 即 20 缸。所以我認為，我會這樣說，引擎越大，由於有限，回報越好。我指的是由於大馬力引擎而產生的競爭。

And the I mean, but it will always and it depends on the customer requirements. So, at our joint venture, we were manufacturing then the according to the to the customers back, but of course, and then we can have the product mix and then can have a more high power high power engine and they will be more benefit to the to the operation.

我的意思是，但它總是會的，並且取決於客戶的要求。因此，在我們的合資企業中，我們根據客戶的需求進行生產，當然，然後我們可以擁有產品組合，然後可以擁有更高功率的大功率發動機，這將對營運更有利。

Yes, and, say for example, any number or percentage contributed to our profit.

是的，例如，任何數字或百分比都為我們的利潤做出了貢獻。

Sorry, I cannot give the figure.

抱歉，我無法給出具體數字。

Okay. Okay, so do you do you start to negotiate with the data centers and what's the what does the competition look like? Did you encounter any Chinese peers in the bidding or you know kind of competition?

好的。好的，那麼您開始與資料中心進行談判了嗎？競爭是什麼樣的？你們在競標中遇過中國同行嗎？或者你們知道有什麼樣的競爭嗎？

I mean, the genset market is It's very competitive, because, in the China and then the, it's always, it's an open tender and then from the telecom telecommunication operator or from the AI and then for example, from the by the dance and then so it's transparent, I mean the if you want and then the, we understand, the winner that what's the price they are at the end of the day.

我的意思是，發電機組市場競爭非常激烈，因為在中國，它始終是公開招標，然後來自電信運營商或人工智能，然後例如，通過舞蹈，然後所以它是透明的，我的意思是，如果你想要，然後，我們明白，獲勝者最終的價格是多少。

So, I would like to say it's very fierce competition, and that's why and then the, I mean the, there's a very difficult and then to raise the bar of the pricing at this stage, even though the very high demand because I then we had to make sure and then we can win the bid of the major projects and then from those key payers because, in one single tender, it could be, up to 200, 300 or 500 engines. So, that is a very careful and then they regarding on the, on the pricing. So competition is too feasible, yeah.

所以，我想說競爭非常激烈，這就是為什麼，我的意思是，在這個階段提高定價標準非常困難，儘管需求很高，但我們必須確保我們能夠贏得主要項目的競標，然後從那些主要付款人那裡贏得競標，因為在一次招標中，可能會有多達 200、300 或 500 台發動機。所以，他們在定價方面非常謹慎。所以競爭太可行了，是的。

Got it. Thanks for the color. Maybe lastly on your capacity expansion, what keeps you up at night, any bottleneck you are, spend most of your time addressing on like maybe super alloy in Cornell has to lie. Yeah, I appreciate it if you can share and comment on this. Thanks.

知道了。謝謝你的顏色。也許最後，關於你的產能擴張，是什麼讓你夜不能寐，你遇到的任何瓶頸，你都要花大部分時間來解決，例如康乃爾大學的超級合金可能就是一個問題。是的，如果您能分享並評論此內容，我將不勝感激。謝謝。

It's a little bit different between the GYMCO and the and the and the MTU joint venture. MTU joint venture, actually we had the, problem of the supply chain because, there's still some component we had, I mean we are imported from Germany and they, there's a, I mean there's a shortage of the some of the key components from our parent from our partners.

GYMCO 和 MTU 合資企業略有不同。MTU 合資企業實際上存在供應鏈問題，因為我們仍有一些零件是從德國進口的，而我們的母公司和合作夥伴的一些關鍵零件存在短缺。

And this is a handicapped, the overhaul assembly of the engine. So the, I mean the our partner MTU and then they are also doing some more investment and then they also work with their supplier and then try to ease up the supply chain issue. Hopefully by next year and then we can have more, available resource and then we can take more engine orders.

這是一輛殘障人士的、經過大修的引擎總成。所以，我的意思是我們的合作夥伴 MTU，他們也在做一些更多的投資，然後他們也與他們的供應商合作，然後試圖緩解供應鏈問題。希望到明年我們可以擁有更多可用資源，然後我們可以承接更多的引擎訂單。

I said any chance you can use the Chinese domestic supplier in replace of those imports.

我說有沒有可能你可以用中國國內供應商來取代那些進口產品。

We actually, we have what we call the localization program and so we will localize and then the majority of the T-com majority of the engine component in China and but there's this some of the very key component and then the our partner and then we serve the right and then to not to localize and then we had to buy from them anyway. So this is some of the bottom left sometime, yeah.

實際上，我們有所謂的本地化計劃，因此我們將對 T-com 的大部分發動機部件進行本地化，並將其供應給中國，但也有一些非常關鍵的部件，然後是我們的合作夥伴，然後我們提供服務，如果不進行本地化，無論如何我們都必須從他們那裡購買。是的，這是左下角的一些內容。

Got it. That's all from me, and also congratulations on the results.

知道了。我要說的就這些，也祝賀你所取得的成績。

Thank you.

謝謝。

Thank you. Our next question comes from the line of Yiming Liu from High Town Securities. Please go ahead, Yiming.

謝謝。我們的下一個問題來自高城證券的劉一鳴。請繼續，一鳴。

Hello, this is, Yiming again. Thank you very much for having me again. So I was cut off, so I'm trying to continue with my question. So, from your income statement, there's a, big item called other operating income. Which is 576 million in the fiscal year '24. So I wonder if this value is proportional to your revenue or if there's other factors that is impacting that. So how do we accept that in '25 or in the future? Thanks

大家好，我是一鳴。非常感謝你們再次邀請我。我被打斷了，所以我試著繼續我的問題。因此，從您的損益表中，有一項大項目稱為「其他營業收入」。24 財年為 5.76 億美元。所以我想知道這個價值是否與您的收入成正比，或者是否有其他因素影響它。那麼我們在 2025 年或將來該如何接受這一點呢？謝謝

Hi, Yiming, thank you for the questions. Yeah, in that line, we have this, government grant income, right, as I mentioned earlier on, right. So that is, that's based on the revenue that, the income that you recognize according to the project, that we earn during the period. So that's told by the timing, so the second part is the VAT rebate, right? So, there's a tax policy that, for us, we are in this, advanced technology, zoom that we are qualified or or we are eligible for that incentive.

你好，Yiming，謝謝你的提問。是的，在這方面，我們有政府補助收入，對的，正如我之前提到的，對的。所以，這是基於收入，即根據項目確認的收入，也就是我們在該期間賺取的收入。那麼時間上來說，第二部分就是增值稅退稅，對嗎？因此，對我們來說，有一項稅收政策，我們處於這種先進的技術中，我們有資格或有資格獲得這種誘因。

So basically we get a rebate for the VAT, tax, right? So that's another big part, contributed the income for 2024. So that, from our understanding that will be subject to the applications each time. So once we're successful, that will continue in 2025 if we are successfully applied. So, that another part, the part is the, licensing fee, right, for that right now Kim Long, right, so we have recognized half of that, USD 28 million right, in 2024. Yeah, so that the big increase in our other income.

所以基本上我們得到了增值稅退稅，對嗎？所以這是另一個重要部分，為 2024 年的收入做出了貢獻。因此，根據我們的理解，這將取決於每次的申請。因此，一旦我們成功了，如果我們成功應用的話，這種情況將會在 2025 年繼續下去。所以，另一部分，也就是許可費，對吧，現在 Kim Long，對吧，所以我們已經確認了其中的一半，即 2800 萬美元，在 2024 年。是的，所以我們的其他收入就大幅增加了。

So, can we treat the majority of this value as recurring? Or I mean, what is the percentage of this value which is not recurring in the future?

那麼，我們可以將這個值的大部分視為重複的嗎？或者我的意思是，這個價值中有多少百分比在未來不會重複出現？

Okay, the right time is a subjective that, how much, you can, recognize based on what we earn for the project. So that is probably, may remain, pretty much flat, right, but VAT, we repeat that subject to, the applications and also subject to the VAT input output offset, right, that is still yet to be determined, yeah.

好的，正確的時間是一個主觀的問題，你可以根據我們為專案賺到多少錢來判斷。所以這可能，可能會保持基本平穩，對吧，但增值稅，我們重複一遍，要受制於應用，也要受制於增值稅投入產出抵消，對吧，這還有待確定，是的。

Of course that likely income as I mentioned, you recognize, that, half of it from the what we have awarded, right, 28 million. So that we shall see some in 2025.

當然，正如我所提到的，您可能知道，其中一半來自我們已經授予的獎金，2800 萬美元。因此我們將在 2025 年看到一些。

Okay. I guess. I see. Thank You very much.

好的。我猜是的。我懂了。非常感謝。

Thank you.

謝謝。

Thank you. I'll now turn to the room for webcast questions.

謝謝。現在我將轉向網路直播提問環節。

No, not yet.

不，還沒有。

Okay, that we answer some of the questions from, the webcast. The next question now is, From the, from, okay Rodin Xiao. For data center generator, is there any particular part source from third party could face more bottleneck I think can answer that, for MTU. So, there is some parts that we buy from Germany, which will be, we will cost a bottleneck. So I think he has expressed that question.

好的，我們回答網路廣播中的一些問題。現在的下一個問題是，從，從，好的 Rodin Xiao。對於資料中心發電機，是否有任何來自第三方的特定部件來源可能會面臨更多瓶頸，我認為可以回答這個問題，對於 MTU。因此，我們從德國購買了一些零件，這將成為我們的成本瓶頸。所以我認為他已經表達了這個問題。

The next one, I'll go down to what is your capacity, CapEx plan this year and next year given the strong demand, would there be new share repurchase? Our CapEx plan this year and next year will be probably still remains about the same.

下一個問題，我將討論一下你們的產能是多少，鑑於強勁的需求，今年和明年的資本支出計劃是多少，是否會有新的股票回購？我們今年和明年的資本支出計畫可能仍然保持不變。

There, there'll be more of the resources that will be channeled towards the data centers since there's a big demand for it, but that has already started, right? So we have to see what the demand is going forward and how much capacity there are in the whole industry before we take, we decide on more capacity expansion or more backs on that area.

由於需求量很大，將會有更多的資源被輸送到資料中心，但這已經開始了，對嗎？因此，我們必須了解未來的需求以及整個產業的產能，然後我們才能決定是否擴大產能或進一步支持該領域。

Will there be a new share repurchase plan? I can't say you that, we haven't discussed this, since the last plan that was implemented. So, yeah, we can, for now, this has not been discussed. Can you share your revenue breakdown by domestic sales and export sales? Can you help us to understand how that makes a shift in 2025 and the impact on ASD profit gross margin.

是否會有新的股票回購計畫？我不能告訴你，自從上一個計劃實施以來，我們還沒有討論過這個問題。是的，我們可以，但目前我們還沒有討論過這個問題。能否分享一下國內銷售和出口銷售的收入明細？您能否幫助我們了解這將如何改變 2025 年以及對 ASD 利潤毛利率的影響。

I will answer the top part, but not probably not the scale probably too sensitive for us, right? So, in terms of, domestic sales and export sales, about close to More than 20%,[ 20%], 25% of our engines in terms of unit sales are exported. So it's grown quite rapid in the last few years.

我會回答上面的部分，但可能規模對我們來說可能太敏感了，對嗎？因此，就國內銷售和出口銷售而言，我們的引擎單位銷售額中約有 20% 以上 [ 20% ]、25% 是出口的。所以它在過去幾年裡發展得相當快。

In the case of how the product needs to shift, it was the whole for the entire group, it will shift slightly more towards. The marine power generation, which is the jet set, because of the the big demands that they're facing now, from the data centers. So that will have an impact on the ASP for sure, and also gross profit margin. Do you consider more share buyback programs and what's the dividend policy? Okay, we have addressed the share buyback program.

至於產品需要如何轉變，對於整個集團來說，整體上會稍微轉向一些。海洋發電是噴射機的專利，因為他們現在面臨著資料中心的巨大需求。因此這肯定會對平均售價和毛利率產生影響。您是否考慮過更多的股票回購計畫？股利政策是什麼？好的，我們已經討論了股票回購計劃。

The dividend policy, we do not have a formal dividend policy. But if you look at the dividends that payout in the past, you get an idea as to how we decide on the dividend payout, but we do not have a formal dividend policy.

股利政策，我們沒有正式的股利政策。但如果你看看過去支付的股息，你就會知道我們如何決定股息支付，但我們沒有正式的股息政策。

Thank you. We will now take our next phone question from the line of William Grzegorzewski from Green Bridge Global.

謝謝。我們現在將接聽來自 Green Bridge Global 的 William Grzegorzewski 的下一個電話提問。

Please ask your question, William.

請提出你的問題，威廉。

Hi, I'm, Kim Long. When is the expected start date that you'll ship the engine kit and you have like a a number of units you expect to sell and a rough margin profile for those?

你好，我是 Kim Long。您預計何時開始運送引擎套件？您預計銷售的套件數量是多少？以及這些套件的大致利潤如何？

Sorry, Will, I didn't quite catch that. Can you repeat that again?

抱歉，威爾，我沒聽清楚。你能再說一次嗎？

Yeah, on the Kim Long, when do you expect to start shipping the engine kits and then do you have an estimate on the number of kits and margin profile for those?

是的，關於 Kim Long，您預計什麼時候開始運送引擎套件，然後您對套件的數量和利潤情況有什麼估計嗎？

Kelvin. Do you want to address that question?

開爾文。你想回答這個問題嗎？

So we need to help them and then to build up the whole plant and also we need to assist them and then to purchasing all the equipment for the factory. So I would expect and then after all and then all this I mean the installation commissioning, and then it's done and then also the carry on the, further testing of the of the whole line and then it will take at least about nine to 10 months. So by the end of this year. If we, everything's moving and, we may start shipping the parts, yeah, this is, my explanation.

所以我們需要幫助他們，然後建立整個工廠，我們還需要協助他們，然後購買工廠的所有設備。所以我預計，然後，然後所有這些，我的意思是安裝調試，然後完成，然後繼續對整個生產線進行進一步測試，然後至少需要大約九到十個月。所以到今年底。如果一切順利，我們可能會開始運送零件，是的，這就是我的解釋。

Okay, do you have an idea of how big this plant is going to be or how many units they expect to do a year?

好的，您知道這個工廠的規模有多大或是他們預計一年能生產多少台設備嗎？

In fact, the market is quite quite a good design market. They, I mean because from GYM sale, our export to Vietnam is about 20,000-25,000 per annum and then the the so I mean, to take, if they take all most of those and then the order, we previously and then we shipped from China and then there will be around this number, but I will, of course, and then it will be depends how is the competitive lats of the Kim Long motor in the Vietnam market.

事實上，這個市場是一個相當不錯的設計市場。他們，我的意思是，因為從 GYM 銷售來看，我們每年對越南的出口量約為 20,000-25,000 輛，然後，所以，我的意思是，如果他們接受其中的大部分，然後訂單，我們之前從中國發貨，然後大約會有這個數字，但我當然會，然後這將取決於金龍汽車在越南市場的競爭力如何。

So, I mean, We didn't have any concrete sales number because our agreement with them is only a licensing agreement and so that we will help them and then to build up the whole plan then the we will provide the component according to the actual demand.

所以，我的意思是，我們沒有任何具體的銷售數字，因為我們與他們的協議只是許可協議，所以我們將幫助他們，然後製定整個計劃，然後我們將根據實際需求提供組件。

Okay. All right. And then my last question is, do you have expectations for this year for the in-vehicle engines? Just in general?

好的。好的。我的最後一個問題是，您對今年的車載引擎有什麼期望？只是一般而言嗎？

Can you repeat that again, it's not quite that. (inaudible)

你能再說一次嗎，不完全是那樣。（聽不清楚）

Yeah, I was looking for if if you can provide any expectations for in vehicle engines for this year.

是的，我想知道您是否可以提供對今年車載引擎的任何期望。

It means it means the total engine sales for the year.

這意味著該年引擎的總銷量。

Yeah.

是的。

Oh, EV, you're talking about EV are you? Are you talking about electric vehicles?

哦，EV，您說的是 EV 嗎？您說的是電動車嗎？

I mean, if you can break out the new energy versus the traditional, that would be even better.

我的意思是，如果你能夠突破傳統能源的限制，那就更好了。

Oh, I see. No, I think this year we sold about 356,000 engines, right? So, I think segment by segment, we expect the the vehicle engines to move within minus 5% to 5%, maybe 10%. So it's pretty for the domestic market. So, as for the marine power generation is expected to perhaps increase by about 10% this year. For the, as far as the industrial and agricultural machinery, the agriculture machinery I'm expecting to have a slight growth and the industrial machinery. I think for the market it'd be quite flat, but we expect to see some growth in there, so.

我懂了。不，我認為今年我們銷售了大約 356,000 台發動機，對嗎？因此，我認為，我們預計，根據細分市場來看，汽車引擎的漲幅將在-5%到5%之間，甚至可能是10%。因此，這對於國內市場來說相當不錯。因此，預計今年海洋發電量可能會增加10％左右。就工業和農業機械而言，我預計農業機械將略有成長，工業機械也將略有成長。我認為對於市場來說它會相當平穩，但我們預計會看到一些成長，所以。

But sorry, I can't give you a number, the number, but generally that's how the market is.

但抱歉，我無法給你一個數字，這個數字，但一般來說市場就是這樣的。

Thank you. We have now reached the end of our question and answer session and now turn the call back to Kevin Theiss

謝謝。我們的問答環節已經結束，現在請 Kevin Theiss 回答我們的問題。

Okay, thank you very much all for participating in our conference call. We wish each of you good health, and we look forward to speaking with you again, next time.

好的，非常感謝大家參加我們的電話會議。我們祝福大家身體健康，並期待下次再次與您交談。

Thank you.

謝謝。

Well, thank you for your participation in today's conference. This does conclude the program.

好的，感謝您參加今天的會議。該計劃確實就此結束。

(Operator Instructions)

（操作員指示）