China Yuchai International Limited · NYSE:CYD
China Yuchai International — Investor Presentation (2024)
43 slides from China Yuchai International's investor presentation, Dec 6, 2024
Slide 1: China Yuchai International Limited [NYSE: CYD] Mid-2024
China Yuchai International Limited China Yuchai International Limited [NYSE: CYD] Mid-2024
Slide 2: Forward-looking statements
China Yuchai International Limited This presentation 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
Slide 3: Engine applications: truck and bus, off-road, marine and power generation
China Yuchai International Limited Truck and Bus engines applications Off-road and Agriculture applications Marine and Power Generation engines applications 3
Slide 4: Corporate Structure
Corporate Structure China Yuchai International Limited (“China Yuchai” or the “Company”) is a Bermuda holding company established on April 29, 1993, and listed on the New York Stock Exchange under symbol “CYD”. It is a subsidiary of Singapore-based Hong Leong Asia Ltd. China Yuchai, through six whol
Slide 5: Main Operating Subsidiary - Yuchai
Main Operating Subsidiary - Yuchai Founded in 1951, Yuchai as our main operating subsidiary in China, has established a reputable brand name, strong research and development team and significant market share in China. • One of the top commercial vehicle engine suppliers in annual unit sales as ranke
Slide 6: Subsidiaries, Joint Ventures and Alliances
Subsidiaries, Joint Ventures and Alliances • Y&C Engine Co., Ltd. (“Y&C”) is a 45% owned JV with Jirui United Heavy Industry Co., Ltd., specializing in heavy-duty vehicle engines. • MTU Yuchai Power Company Limited (“MTU Yuchai”) is a 50-50 JV of Yuchai and MTU Friedrichshafen GmbH (“MTU”), a subsid
Slide 7: Subsidiaries, Joint Ventures and Alliances
Subsidiaries, Joint Ventures and Alliances • Suzhou Yuxing Automobile Technology Co., Ltd. is a 30% owned JV with certain engine service firms to provide vehicle monitoring, vehicle and engine maintenance and repairs solutions. • Guangxi Xing Yun Cloud Technology Co., Ltd. (“Xing Yun Cloud”) a new s
Slide 8: Vehicle Engine OEMs
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Slide 9: Off Road /Marine Engine OEMs
Off Road /Marine Engine OEMs 9
Slide 10: 2024 Market Overview
2024 Market Overview Market Statistics China’s GDP is targeted to grow around 5% for 2024. On Sept 25, Beijing announced a slew of stimulus programs to revitalize its economy: PBOC cut reserve requirement ratios (RRR) by 50 bps, interest rate for medium-term lending facility to 2% from 2.3%, minimum
Slide 11: Market Overview: Commercial Vehicles 2019-2023
Market Overview: Commercial Vehicles 2019-2023 unit in ‘000 China Truck Market unit in ‘000 China Bus Market 5000 450 4500 400 4000 350 3500 300 3000 250 2500 200 2000 150 1500 1000 100 500 50 0 0 HD MD LD Mini Total Large Medium Small Total 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Source:
Slide 12: Sales Volume
China Yuchai Unit Sales: 2019-2023 500,000 450,000 400,000 350,000 Sales Volume 300,000 250,000 200,000 150,000 100,000 50,000 - 2019 2020 2021 2022 2023 1H 24 On Road Engine 259,005 275,398 251,575 129,896 132,048 87,120 Off Road Engine 117,143 154,922 205,216 191,360 173,388 104,041 Total 376,148
Slide 13: Operations Strategy
Operations Strategy 1. Product Strategy • Ensure all products meet current stringent emission standards and be among the first engine manufacturers compliant with future emission standards • Extend HD products into construction and mining applications • Expand HHP products into marine and power gene
Slide 14: Operational Overview
China Yuchai International Limited China Yuchai International Ltd. [NYSE: CYD] Operational Overview
Slide 15: GYMCL Strategic Locations
GYMCL Strategic Locations Shenyang Urumqi Beijing Beijing Xinshunda Xi’an Jining Wuhu Wuhan Shanghai Chongqing Wuhan Suzhou Wuxi Chengdu Hydrogen Kunming Guangdon Yulin Xinlan Guangzhou g Facilities & JVs 15
Slide 16: Engine Assembly Plants
Manufacturing Capability Engine Assembly Plants 16 16
Slide 17: Intelligent Digital Factory
Manufacturing Capability Intelligent Digital Factory Casting Machining Assembly and Testing Core making Robot Machining centre from International Enclosed and constant temperature and Domestic Suppliers workshop Molten Iron Pouring Robot Logistics + auxiliary tools are fully Robot + vision + full- a
Slide 18: Full Automated Machining Centre
Manufacturing Capability Full Automated Machining Centre ➢ 恒温、恒湿、微正压、无尘车间环境 Constant temperature, constant humidity, slight positive pressure, dust-free workshop environment ➢ 从上下料、加工，到检测全过程自动化，属于无人化”黑灯”工厂 The whole process from loading and unloading, processing to inspection is automated, belonging
Slide 19: Foundry Centre
Manufacturing Capability Foundry Centre Automatic molten iron pouring Automatic core making center 19 The world's first robot core setting 19
Slide 20: 3D Printing for Trial Production
Manufacturing Capability 3D Printing for Trial Production New Product Trial Production Centre 20 Additive printing technology Subtractive printing application technology application 20
Slide 21: Nat VI Engine Manufacturing Plants
Yulin Facility Nat VI Engine Manufacturing Plants Engine Component Machining Plants Engine Assembly Plant 微正压、恒温、恒湿车间 Micro-positive pressure, constant temperature and humidity workshop. 21
Slide 22: MTU Yuchai Power Company Ltd.
MTU Yuchai Power Company Ltd. Our JV partner MTU A diesel engine manufacturer specializing in high-speed, large-rating diesel engines for power generation, oil & gas, railway, marine and mining, and data centers MTU is a wholly owned subsidiary of Rolls-Royce Power Systems The Joint Venture Th
Slide 23: Yuchai National VI-b Compliant Engines
23 Yuchai National VI-b Compliant Engines Yuchai National VI–b Emission Standard Compliant Engines K13 (600－660) K12 (530－600) K11 (430－460) K09 (350－380) K08 (280－350) Engine S06 (200－260) K05 (190－230) S04 (140－200) Y30 (150－180) Y24 (120－165) 0 100 200 300 400 500 600 700 Power Rating (PS) •Full
Slide 24: Yuchai National VI-b Compliant Gas Engines
Yuchai National VI-b Compliant Gas Engines Yuchai National VI Emission Standard Compliant Gas Engines K15N （500~560） K13N （400~500） K11N （340~400） Engine K08N （260~300） A07N （190~260） K05N （185~210） S04N （140~160） 0 100 200 300 400 500 600 Power Rating (PS) •Implementation of National VI-a emission
Slide 25: Yuchai Tier-4 Compliant Off-road Engines
Yuchai Tier-4 Compliant Off-road Engines 20 engine series with Power range: 15~2550 hp 16VTD 1800-2550 12VTD 1000-1620 6TD 765-950 K16 580-775 K13 480-580 K11 350-480 K09 220-400 K08 300-350 A08 220-320 A07/A07K 125-300 K05/A05/A05K 110-240 A04 110-175 F36 75-175 功率/PS F39 80-160 F30 50-115 F25 40-5
Slide 26: Marine and Power Generation Engine Platform (Tier 3 & 4)
Marine and Power Generation Engine Platform (Tier 3 & 4) 20VC(132L) 2808 3610 16VC(105L) 2205 2808 20VTF(104L) 3300 4000 16VTF(83L) 2420 3300 12VC(79L) 1680 2005 TD65(65L) 1680 2005 12VTF(63L) 2005 2420 TD52(52L) 1520 1680 TD40(40L) 900 1345 6TH(28L) 715 1016 TD20(20L) 441 668 K13(13L) 365 441 6MJ(1
Slide 27: LD and MD National VI Engines
LD and MD National VI Engines Y24 – 120-165 PS Y30 – 150-180 PS S04 – 140-200 PS S06 – 200-260 PS 27
Slide 28: MD and HD National VI Engines
MD and HD National VI Engines K05 – 190-230 PS K08 – 260 - 300 PS K09 – 360- 380 PS K12 – 530-600 PS K11 – 430-460 PS K13 – 600-660 PS 28
Slide 29: HHP Marine and Power Generation Engines
HHP Marine and Power Generation Engines YC12VTD YC6C YC12VC YC16VC • YC6T - 6 cylinders, 16/19.5L, with 360 - 600 Ps power rating • YC6C/6CL – 6 cylinders, 40-54L, with 700 - 1200 Ps power rating • YC8CL – 8 cylinders, 72.8L , rated at 692 - 1176 Ps power rating • YC12VTD – 12 cylinders, 39L, rated
Slide 30: Regional Sales and Service Support
Regional Sales and Service Support 个大400+Distributors in 100+Countries Support Network Marine Powergen On- and off-road Central Indo-Malaysia Vietnam South America Philippine CentralNorth Middle East America South Asia Central South Northwest Asia Africa Euro Asia Saudi Arabic Northeast Africa Centr
Slide 31: Green Technology
Green Technology • National VI Emission Standards (Equivalent to Euro VI) ▪ National VI-a emission standard for gas engine was implemented from July 1, 2019 ▪ National VI-b emission standard for gas engine was implemented from January 1, 2021 ▪ National VI-a standard for all engines was implemented
Slide 32: Cost & Technology Improvement
Cost & Technology Improvement Lean Manufacturing ➢ Promote lean manufacturing across all machining and engine assembly plants ➢ Machining processes outsourced to reduce capital investment Supply Chain Improvement ➢ Reduced number of suppliers through stringent vendor selection policy and establish l
Slide 33: R&D Capability
R&D Capability ➢ Self-established National Engineering Laboratory, an efficient, energy-saving and environmentally-friendly internal combustion engine testing laboratory in China, rated as top tier in Chinese Diesel Industry. ➢ Installation of 84 engine test benches and 16 parts & components test be
Slide 34: R&D capabilities
R&D capabilities ❑ Approximately 650 engineers including PhDs and Master Degree holders ❑ Over 3,000 patents have been registered as of December 2023 ❑ New Energy R&D and Production facilities were set up in Nanning R&D center Powertrain innovations ❑ Late 2018: Model K08 engine was first domestic d
Slide 35: R & D - Hydrogen for the Future
R & D - Hydrogen for the Future 2 Developing Technologies Fuel Cells Hydrogen Combustion Engines Mid-2021: Late-2021: Commercially launched the 90kW fuel First ignition of the YCK05 Hydrogen cell power system on buses Combustion engine 2023: Launched Nat VI, 2nd Generation Mid-2022: engine platforms
Slide 36: Yuchai New Energy Products
Yuchai New Energy Products New energy power Fuel cell system ➢High efficiency: maximum efficiency＞70% Integrated bridge system ➢High integration, high power density, ➢ Highly integrated motor, motor controller, and ultra-low starting temperature. TCU, oil pump and sensor. ➢Wide application fields. ➢
Slide 37: Business and Finance Overview
China Yuchai International Limited China Yuchai International Ltd. [NYSE: CYD] Business and Finance Overview
Slide 38: Financial Performance Review
Financial Performance Review Y2019 Y2020 Y2021 Y2022 Y2023 Units of engine sold (in thousands) 376 430 457 321 313 Revenue (in billion RMB) 18.0 20.6 21.3 16.0 18.0 RMB, billions Units in ‘000 Revenues Engine Sales 500 457 25.0 450 430 21.3 20.6 400 376 20.0 18.0 18.0 350 321 313 16.0 300 15.0 250 2
Slide 39: Financial Performance Review
Financial Performance Review Profit Performance Y2019 Y2020 Y2021 Y2022 Y2023 Gross Profit % 17.2% 15.5% 13.9% 15.6% 16.2% Operating Profit % 6.4% 5.7%. 3.1% 3.2% 3.4% EBITDA (RMB Billion) 1.4 1.5 1.2 1.0 1.2 Profit After Tax % 4.8% 3.8% 1.9% 2.1% 2.3% Profit After Tax (RMB Billion) 0.9 0.8 0.4 0.3
Slide 40: Financial Performance Review: Financial Indicators
Financial FinancialPerformance Review Indicators Review Y2018 Y2019 Y2020 Y2021 Y2022 Y2023 Dividend per share (USD) $0.85 $0.85 $1.70 $0.40 $0.28 $0.38 Earnings per share (USD) $2.54 $2.09 $2.08 $1.06 $0.77 $0.98 Dividend / EPS, Ratio 33.5% 40.7% 81.7% 37.7% 36.4% 38.8% Div/EPS % $4.00 Y2018 33.5%
Slide 41: Financial Performance Review: Key Financial Ratios
Financial Performance Review Financial Indicators Review Key Financial Ratios Y2019 Y2020 Y2021 Y2022 Y2023 Debt/Equity Ratio 18.3% 19.2% 19.3% 20.3% 21.3% Current Ratio 1.55 1.48 1.42 1.52 1.41 ➢ Financial Ratios remain strong (* Y2023 numbers are unaudited) ➢ On June 7, 2024, a share buyback plan
Slide 42: 1H 2024 Results
1H 2024 Results 1H 2023 1H 2023 1H 2024 1H 2024 RMB ‘000 US$ ‘000 RMB ‘000 US$ ‘000 Units of engine sold (‘000) 165,793 192,743 Revenues 9,171,003 1,286,833 10,306,424 1,286,833 Gross Margin 16.2% 16.8% Operating Profit 436,894 61,302 387,686 54,398 Operating Profit Margin 4.2% 4.2% EPS 5.88 0.83 4.
Slide 43: Thank You
China Yuchai International Limited [NYSE: CYD] Thank You
China Yuchai International — Investor Presentation (2024) on 6ix