CYD

Image source: The Motley Fool. Friday, Aug. 7, 2026 at 8:00 a.m. ET President - Weng Ming Hoh Chief Financial Officer - Choon Sen Loo General Manager of Operations - Kelvin Lai Operator: Good day and thank you for standing by. Welcome to China Yuchai International Limited First Half 2026 Financial Results. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to turn the call over to your first speaker today, Kevin Theiss. Please go ahead, sir. Kevin Theiss: Thank you for joining us today, and welcome to China Yuchai International Limited's conference call and webcast for the 2026 first half year ended on June 30, 2026. Joining us today are Mr. Weng Ming Hoh and Mr. Choon Sen Loo, the President and Chief Financial Officer of China Yuchai International, respectively. In addition, we also have in attendance, Mr. Kelvin Lai, General Manager of Operations of China Yuchai International. Before we begin, I would like to 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 intended to identify forward-looking statements. All statements other than statements of historical fact are statements that may be deemed forward-looking statements. These forward-looking statements 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, which are subject to change at any time. 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. 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 on today's call or otherwise in the future. Mr. Hoh will provide a brief overview and summary, then Mr. Loo will provide the financial results for the first half year ended June 30, 2026. Thereafter, we will conduct a question-and-answer session. For the purposes of today's call, the first half year numbers for 2026 and 2025 are unaudited. Financial results are presented in RMB and U.S. dollars. All the financial information presented is reported using IFRS accounting standards as issued by the International Accounting Standards Board. Mr. Hoh, please begin your prepared remarks. Weng Ming Hoh: Thank you, Kevin. We are pleased to report continuing growth in sales and profit in the first half of 2026. Revenue increased by 13.9% year-over-year with a 10.9% year-over-year gain in engine unit sales. Our gross profit rose by 36.5% year-over-year to RMB 2.5 billion or USD 368.7 million with gross profit margin increasing to 17.1%. Operating profit was 58.9% higher at RMB 988.2 million or USD 145.1 million. Profit attributable to our shareholders rose by 53.2% year-over-year to RMB 560.6 million or USD 82.3 million, with diluted earnings per share of RMB 14.81 or USD 2.17 in first half 2026. Higher sales of our larger engines enhanced both our average selling price and profitability compared with the same period last year. Total truck engine unit sales were up 20.4% year-over-year, led by a heavy-duty truck engine unit sales increase of 47.3% year-over-year. Engine unit sales to off-road markets increased by 7.7% year-over-year in first half 2026, primarily driven by strong demand in marine and power generation markets, where engine unit sales increased by 42% year-over-year. Our joint ventures and associates produced a 56.2% year-over-year growth in profits in first half 2026, propelled by higher sales and profit mainly from MTU Yuchai. Order demand for high horsepower engines continues to be strong. The combined production capacity for high horsepower engines across the MTU JV and Yuchai currently stands at approximately 5,000 units. Sales for AI data centers by MTU JV and Yuchai's own brand grew to approximately 1,800 units in first half 2026. With increased engine technology content, advancing performance and environmental impact, we increased total R&D expenditures including capitalized costs by almost 13% to RMB 622.5 million or USD 91.4 million in first half 2026. In addition to enhancing the quality and performance of our current products, we have introduced new innovative products in first half 2026. Commercial minibuses equipped with Yuchai's YCY24-65kW Flywheel Range Extender System, or YC-FRS, were launched in the heavily congested Hong Kong vehicle market. This new technology reduces the need for fixed charging infrastructure. We also created a breakthrough in our alternative fuels program with our first high-pressure direct injection internal combustion engine capable of operating entirely on ammonia. We acquired 27.97% equity interest of Nanyue Fuel Injection Systems or NYDK in short. It was previously known as Nanyue Diankong (Hengyang) Industrial Technology Company Limited. This transaction strengthens our technology capabilities, access to new powertrain products and supply chain resilience. Since April 1, 2026, NYDK's financial results have been consolidated following Yuchai's acquisition of control over NYDK on March 31, 2026. Our subsidiary, Guangxi Yuchai Machinery, that genset power company limited continue to process for its IPO application with the Hong Kong Stock Exchange. Upon completion, the listing is expected to provide the subsidiary with more resources to accelerate its growth while we remain -- we will remain the controlling shareholder of this subsidiary. This will enable us to continue to benefit from the subsidiary's long-term development while focusing additional resources on our other operations. To further support our strategy of identifying and participating in emerging growth opportunities, we invested in and became a limited partner in Guangxi Yuchai Growth Fund, a private equity fund that invests in businesses focusing on innovative technologies. At the end of June 2026, our cash management and cash flow from operations provided higher cash and bank balances totaling approximately USD 1.2 billion with lower borrowings, reflecting our commitment to delivering value to shareholders. A cash dividend of USD 0.87 per ordinary share for 2025 was paid in July 2026, compared with USD 0.53 per ordinary share for 2024 paid in 2025. Our strong financial position empowers Yuchai's ongoing investment in product upgrades and new product development, which furthers establishment of our growing presence in selected international markets to support future growth. Our strategy remains to be to sell into multiple end markets with a growing and diverse product portfolio. With that, I would now like to turn the call over to Mr. Choon Sen Loo, our Chief Financial Officer, who will provide more details on the financial results. Choon Sen, you may begin your remarks. Choon Sen Loo: Thank you, Weng Ming. Now let me review our unaudited 2026 first 6 months results ended June 30, 2026. Revenue was RMB 14.7 billion or USD 2.2 billion compared with RMB 12.9 billion in first half 2025, a 13.9% year-over-year growth. Engine sales reached 277,684 units in first half 2026, an increase of 10.9% compared with 250,396 units in first half 2025. This growth was driven by stronger performance in the truck segment as well as in off-road applications, particularly construction machinery and marine and power generation. Total truck engine unit sales were up 20.4% year-over-year in the first half 2026, outperforming the 5.8% year-over-year growth in overall commercial truck, excluding gasoline and electric vehicles sales reported by the China Association of Automobile Manufacturers, CAAM, in the same period. Heavy-duty truck engine unit sales increased by 47.3% year-over-year compared with the 13.1% year-over-year growth in heavy-duty truck sales reported by CAAM. Light-duty truck engine unit sales rose by 23.6%, contrasted with a decline in light-duty truck sales according to CAAM. Medium-duty truck engine unit sales also grew 7.9% year-over-year. Engine unit sales to off-road markets increased by 7.7% year-over-year in the first half 2026. The growth was primarily driven by strong demand in the marine and power generation markets, where engine unit sales increased by 42% year-over-year. Sales for industrial applications rose by 15.8% year-over-year, while engine sales for agricultural machinery declined by 18.9% in the same period. Gross profit increased by 36.5% to RMB 2.5 billion or USD 368.7 million from RMB 1.8 billion in first half 2025. The increase was mainly due to higher sales volume, better sales mix and reduced warranty expenses. Overall, gross margin was 17.1% in first half 2026 compared with 14.3% in first half 2025. Increased sales of larger engines enhanced the gross profit margin in first half 2026 year-over-year. Other operating income net decreased by 32.2% to RMB 150.2 million or USD 22.1 million compared with RMB 221.4 million in first half 2025. The decrease was mainly attributable to lower government grants and the absence of technology licensing fees income in first half 2026 as compared with that of first half 2025. Research and development, R&D, expenses increased by 24.5% to RMB 593.4 million or USD 87.1 million compared with RMB 476.7 million in first half 2025, due to higher experimental and personnel costs and a lower level of capitalized project costs. Total R&D expenditures, including capitalized costs, were RMB 622.5 million or USD 91.4 million, representing 4.2% of revenue in first half 2026 compared to RMB 551.7 million and 4.3% of revenue in first half 2025. Selling, general and administrative, SG&A, expenses increased by 12.2% to RMB 1.1 billion or USD 158.5 million from RMB 962.5 million in first half 2025. This increase was driven by higher personnel expenses and legal professional and consultancy fees compared with first half 2025. SG&A expenses represented 7.4% of revenue for first half 2026 compared with 7.5% of revenue in first half 2025. Operating profit increased by 58.9% to RMB 988.2 million or USD 145.1 million compared to RMB 621.7 million in first half 2025. The operating margin increased to 6.7% in contrast with 4.8% in first half 2025. Higher operating profit and operating margin were achieved by increased sales and gross margin, combined with controlled growth in operating expenses. Finance costs decreased by 16% to RMB 27 million or USD 4 million compared with RMB 32.2 million in first half 2025, primarily due to reduced term loans during the period. The share of financial results of the associates and joint ventures grew by 56.2% to a profit of RMB 95.9 million or USD 14.1 million compared with RMB 61.4 million in first half 2025. The increase was mainly driven by higher profits at MTU Yuchai Power Company Limited. Income tax expense increased by 85.3% to RMB 215.3 million or USD 31.6 million compared with RMB 116.2 million in first half 2025 primarily due to higher profits and the utilization of deferred tax assets. The effective income tax rate increased to 20.4% compared with 17.8% in first half 2025. Net profit attributable to equity holders of the company increased by 53.2% to RMB 560.6 million or USD 82.3 million compared with RMB 365.8 million in first half 2025. Basic earnings per share were RMB 14.94, USD 2.19 compared with RMB 9.75 in first half 2025, both based on a weighted average of 37,518,322 shares. Diluted earnings per share were RMB 14.81 or USD 2.17 based on a weighted average of 37,845,508 shares compared with RMB 9.75 based on a weighted average of 37,518,322 shares in first half 2025. The company adopted the China Yuchai International Limited 2025 Equity Incentive Plan with a duration of 10 years, and granted share options in August 2025 and December 2025 respectively, with a total of 820,000 share options granted as of December 31, 2025. No comparable share options were granted in first half 2025 and half 2026. Now we will go through some balance sheet highlights as of June 30, 2026. Cash and bank balances were RMB 8.1 billion or USD 1.2 billion compared with RMB 7.9 billion at the end of 2025. Trade and bills receivables were RMB 14.1 billion or USD 2.1 billion compared with RMB 11 billion at the end of 2025. Inventories were RMB 5.8 billion or USD 844.5 million compared with RMB 5.6 billion at the end of 2025. Trade and bill payables were RMB 13.2 billion or USD 1.9 billion compared with RMB 11.6 billion at the end of 2025. Short-term and long-term loans and borrowings were RMB 1.4 billion or USD 210.1 million compared with RMB 2 billion at the end of 2025. I will now turn the call over to Kevin for a comment for Q&A session. Kevin, please. Kevin Theiss: Okay. All right. So please note some officers of China Yuchai are remotely calling into the conference. This may result in a slight delay in providing answers to some questions. We apologize for any inconvenience and thank you for your patience. [Operator Instructions] Now operator, we are ready for questions. Operator: [Operator Instructions] Our first question comes from the line of Wei Shen from UBS. Wei Shen: Congratulations on strong results. My question is about the AIDC kind of volume guidance. So we have achieved like 1,800. And I think at the beginning of the year, we are targeting like 2,600. So any color into the second half of this year? This is first question. And my second question is about the dividend. I noticed that the company announced 2025 dividend, but the payout ratio seems to be lower than 2024. So I'm wondering any color on this. Weng Ming Hoh: Okay. I'll take the questions on dividend, and I'll let Kelvin take the question on the AIDC. No, there's no particular reason. I think the payout ratio, if you look at our payout ratios in the past 10 years, it ranges from about 30% to 40%, sometimes a little bit higher, sometimes a little bit lower. So it's still within that range. So that hasn't changed. So yes, there's no anything untowards there. Tak Chuen Lai: [Indiscernible] Lai Chuen regarding on the volume of the AIDC. So in the first half and then the total volume of the AIDC from both the Yuchai and plus the MTU joint venture joint venture is 1,800 units. So that is for the AIDC only. And for the second half and then we will expect the whole year and then will be around about 3,500 and more. So this is -- we have adjusted the production and also the sales volume of the whole year of 2026. And it means that there will be quite a significant growth compared to the year of 2025. Operator: The next question comes from the line of Fuyin Liang of Bank of America. Fuyin Liang: Management, this is Fuyin from Bank of America. I have a question about our gross margin profile. So in the first half, we see that the blended gross margin improved quite a lot. Could you explain more about the factors behind whether it is due to the product mix change or our improving cost efficiency? And actually, I also want to ask the gross margin or the net margin on Yuchai MTU. So for the first half, our share of profit from associate and JV improved a lot. So what's the margin profile for Yuchai MTU currently? Weng Ming Hoh: So I will take the first question, right, regarding the gross margin expansion or improvement, right, from 14.3% to 17.1%. So yes, I think you mentioned earlier on that the first thing first that the product mix, right, the product mix actually drove the margin up particularly in the large engine or high power engine, right? So that gives us a nice uptick for the margin, right? So that's number one, okay? And then we also mentioned that our heavy-duty engine unit sales has increased as well. So that also give us some favorable margin increase in that aspect, okay? Of course, the third point is that I think you also mentioned that we have continued to enhance our operational efficiency, right? That is actually will help our cost rationalization, right, in the first half. Of course, our first half, we also been affected by some unfavorable precious metal price increase. So that is kind of being offset against what we have been doing for the cost improvement. I hope that I addressed your first question, Fuyin. Okay. Then the second question on... Choon Sen Loo: Okay. I'll take the MTU question. So the -- actually, this year and 2026, the GP of the MTU joint ventures saw a little bit reduced and mainly because of the cost of the engine and also the -- there's some pricing pressure, and we had to offer further discount in engine, both to OEMs and also our partners. And the overall sales of the first half and then increasing by over 40%. And so the revenue and also the net profit is also increased, but net profit percentage is not as good as the revenue growth. But we are still maintaining about over 30% GP of the whole assets overall. So this is still quite promising on the net profit. Thank you. Operator: Our next question comes from the line of Yiming Liu of Haitong Securities. Yiming Liu: Congratulations for your strong H1. So I've got 2 questions. Number one, could you describe any progress on your gas engine product? Is there any chance that they could be used in the data center business for prime power, especially in North America? And another question on fuel cell. So could you describe any progress on your fuel cell business? Is there any chance that they could be used in the data center in the future? Choon Sen Loo: Okay. Let me take the first part, Yiming, and regarding on the gas engine. So the gas engine actually is a traditional engine product and then it is available in Yuchai for many years. So when we develop the diesel and then the gas engine is also available. So it's a ready available product and ready for the market. But you're mentioning about on the North American market. And then at the moment, our engine is still under the certification process. So now is waiting and then for all the testing and it can be fully done and then before we can release the engine and then for any other region. And at this stage, we still end up using our existing platform of the VC engine and then that is up to 2.5 megawatt for diesel and about 3 megawatt for the rail application. So we don't have exact timing regarding when we can -- I mean, get into the U.S. market. We are actually doing everything we can there. Thank you. Weng Ming Hoh: And can you repeat your second question again on the fuel cell? Yiming Liu: Yes. So could you give us some introduction of your fuel cell business? And is there any chance that they could be used in the data center power generation in the future? Weng Ming Hoh: Well, I mean, our fuel cell unit is still in progress. We have been developing products in the past. We have some products that's been installed in the past, especially in Beijing. We haven't -- we have not started working on the power generation side of it. So I guess at some point in the future, it is a possibility, but that's definitely not in the short term. We have not -- do not have a product in the short term for power generation for fuel cell system as yet. Okay? Operator: [Operator Instructions] We have a new question from the line of Natalie Ong from CGSI. Natalie Ong: Congratulations on this good set of results. I have some questions regarding your AIDC capacity. I'm not sure if I heard this wrongly earlier. At the start of the call, you mentioned that your current capacity for high horsepower engines/DC engines is currently 5,000 for 2026. Is that correct? Weng Ming Hoh: Yes, that's correct. Natalie Ong: So does that mean that actually there has been an increase in capacity? Because I think previously, you were guiding about 4,000 capacity for 2026. Choon Sen Loo: Let me take this question. Last year and then our capacity for the high horsepower engine, I mean the combined Yuchai local brand plus the MTU JV brand and all add together is about 3,000 last year. And we had the capacity expansion program at the end of 2024, so that it was complete last year. So we had about -- increasing about 700 unit capacity for the high horsepower. But at the beginning of this year, then we also by then modified our internal process so that we had to subcontract out some of our machining process and to the external subcontractor. Through this practice and then we can increasing about 1,000 unit capacity for machining. So now we have all add together and then total is about 5,000. So this is our current capacity for the high horsepower engine, so including then for those AIDC or non-AIDC application. We are still in the planning to further increase the capacity for next year. But I think we are now not had a final decision regarding what's the volume will be increasing and then for the next and then the year on this. Thank you. Natalie Ong: Okay. So my understanding is that the capacity has increased due to outsourcing of certain machining requirements. Is that correct? Choon Sen Loo: Yes. Yes, we contract out some of the machining process in the past and then we do all the machining in-house. But now and then we are using the external contractor and then to do some of the machining for us so that we can scale out and then further capacity and then to build more engine. Natalie Ong: Okay. So does this mean that you're still guiding for 3,500 only AIDC, that means excluding those sold to non-AI? Choon Sen Loo: That is -- it's AI only, yes. 3,500. Yes. Natalie Ong: So that means we expect to sell all the capacity that we have, which is going to be 5,000 for the year? Choon Sen Loo: Yes, this is -- yes, exactly. It is 5,000 for the year. Natalie Ong: And to be clear, right, the ASPs for high horsepower engines, be it sold to AIDC customers or non-AIDC, the ASPs are actually similar. Choon Sen Loo: Yes. Correct. And because the high horsepower engine is not only for application of AIDC, this is only for using the engine for the power generation. So the power generation can be using in the factory. You may be using in the commercial building. And then so there's quite a lot of non-AIDC application and then using the high horsepower engine as well. Natalie Ong: That's perfect. Can I also check? I know some of your competitors have also been ramping up their manufacturing capacity. How has that affected your ability to command or maintain increase your average selling prices for these high horsepower/AIDC engines? Choon Sen Loo: In fact, the -- I mean that because of the surge in demand of the AIDC engine in the high horsepower engine market, so not only Yuchai with MTU, but I mean all other engine manufacturers, they also do the same thing and then have the capacity expansion program. And then the beginning of 2024, 2025 and this year. So I think the market is still very competitive. And the engine supplier and then they -- I mean, they have to do whatever they can to win the order. Otherwise, the expansion program and then we will have to be -- I mean difficult then to get the return. So the pricing-wise and then we haven't had any -- I mean, a real pricing increase compared to last year, except we have the cost increase and then from our suppliers and then coming by to the end user for all those additional costs [indiscernible] quite stable pricing, anyway, yes. Thank you. Natalie Ong: One last question. I know you mentioned that you have not firmed up your capacity -- available capacity for next year. So do you mean to say that you could try to outsource more of this machining and maybe increase capacity? Or do you think that this will require expansion of lines and therefore, more CapEx spending? Choon Sen Loo: Actually, we will do in a dual way. I mean, one is that we will further outsource some of the process. But we cannot outsource every process, I mean to the external supplier because we can do the -- what we call the first machining, the fine machining, we need to do it in-house anyway. So we still have to -- I mean, increasing some of the machinery and then for the fine machining process inside the factory. So we will have to do it both ways. And then also then try to increasing the subcontract processing. And secondly, and then we still have to be increasing -- I mean to buy some more equipment and then for the internal process as well. So we will do the same. And we have some planning done or reasonable planning regarding on the capacity of next year, but we need to finalize and then before we absolutely put into action. Operator: [Operator Instructions] At this time, we do not have any further questions from the phone or webcast. Allow me to hand the call back to Mr. Hoh for closing. Weng Ming Hoh: All right. Thank you all for participating in our conference call. We wish all of you good health and look forward to speaking with you again. Thank you. Goodbye. Operator: This conference call, thank you for your participation. You may now disconnect your lines. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Revenue growth of 13.9% was primarily driven by a 10.9% increase in engine unit sales, with heavy-duty truck engines leading the segment with 47.3% growth. Gross profit margin expanded to 17.1% from 14.3%, attributed to a favorable shift toward larger, high-margin engines and enhanced operational efficiency. The MTU Yuchai joint venture saw a 56.2% profit increase, fueled by robust demand for high-horsepower engines in the marine and power generation sectors. Management successfully mitigated rising precious metal costs through cost rationalization and improved sales mix in the heavy-duty segment. The acquisition of a 27.97% stake in Nanyue Fuel Injection Systems (NYDK) was executed to strengthen supply chain resilience and access advanced powertrain technologies. Strategic focus on the AI data center (AIDC) market resulted in approximately 1,800 units sold in the first half of 2026, reflecting strong sector tailwinds. Management expects full-year 2026 AI data center engine sales to reach approximately 3,500 units or more, indicating significant year-over-year growth. Production capacity for high-horsepower engines has been expanded to 5,000 units through a combination of internal process optimization and external subcontracting. The company is pursuing an IPO for its genset power subsidiary on the Hong Kong Stock Exchange to unlock resources for accelerated growth while maintaining control. R&D efforts are focused on alternative fuels, including a breakthrough high-pressure direct injection engine capable of operating entirely on ammonia. Future capacity expansion for 2027 is under evaluation, involving a dual strategy of further outsourcing and internal investment in fine-machining equipment. Consolidation of NYDK financial results began on April 1, 2026, following the acquisition of control on March 31, 2026. Other operating income decreased by 32.2% due to lower government grants and the absence of one-time technology licensing fees received in the prior year. The effective income tax rate rose to 20.4% from 17.8%, primarily due to higher taxable profits and the utilization of deferred tax assets. Cash and bank balances reached approximately USD 1.2 billion, supporting a dividend increase to USD 0.87 per share for 2025. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed 1,800 units were sold in H1 and adjusted the full-year target to 3,500 units or more. The growth represents a significant increase over 2025 levels, supported by adjusted production schedules. Margin improvement was driven by product mix shifts toward high-power engines and operational efficiency, offsetting higher precious metal prices. The MTU JV maintains a gross profit margin over 30%, though net profit growth lagged revenue due to pricing pressure and OEM discounts. Capacity increased from 3,000 to 5,000 units by subcontracting initial machining processes to external partners. Management plans to continue this dual approach of outsourcing and internal equipment upgrades to meet 2027 demand. Gas engines are currently undergoing certification for the North American market; timing remains dependent on testing completion. Fuel cell development is ongoing for mobile applications, but management clarified there is no short-term plan for fuel-cell-based power generation.

Interested in China Yuchai International Limited? Here are five stocks we like better. Strong first-half financial performance: Revenue rose 14% to RMB 14.7 billion, while engine sales increased 10.9% to 277,684 units. Gross margin expanded to 17.1%, and net profit attributable to shareholders climbed 53.2% to RMB 560.6 million. Higher-margin demand drove growth: Truck-engine sales increased 20.4%, led by a 47.3% jump in heavy-duty engines, while marine and power-generation engine sales rose 42%. Agricultural-machinery engine sales declined 18.9%. Data-center opportunity and investment expansion: AI data-center engine sales reached about 1,800 units in the first half, with full-year sales expected at roughly 3,500 or more. China Yuchai also raised R&D spending nearly 30%, expanded high-horsepower capacity, and reduced borrowings to RMB 1.4 billion. China Yuchai International (NYSE:CYD) reported higher revenue, engine sales and profitability for the first half of 2026, as demand for larger engines, heavy-duty trucks and power-generation applications supported margins. President Weng Ming Hoh said the company’s revenue reached RMB 14.7 billion, or $2.2 billion, for the six months ended June 30, compared with RMB 12.9 billion in the prior-year period. Engine unit sales increased 10.9% to 277,684 units. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Gross profit rose 36.5% year over year to RMB 2.5 billion, or $368.7 million, while gross margin expanded to 17.1% from 14.3%. Operating profit increased 58.9% to RMB 988.2 million, or $145.1 million, and net profit attributable to shareholders rose 53.2% to RMB 560.6 million, or $82.3 million. Diluted earnings per share were RMB 14.81, or $2.17, compared with RMB 9.75 in the first half of 2025. The company said the first-half figures were unaudited and prepared under IFRS accounting standards. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Management attributed the improvement in profitability in part to higher sales of larger engines, which lifted average selling prices and margins. Total truck-engine unit sales rose 20.4% from a year earlier, led by a 47.3% increase in heavy-duty truck engine sales. Chief Financial Officer Choon Sen Loo said the company’s truck-engine growth outpaced industry trends cited by the China Association of Automobile Manufacturers. Heavy-duty truck engine unit sales increased more rapidly than reported heavy-duty truck sales, while light-duty truck engine unit sales rose 23.6% despite a reported decline in the broader light-duty truck market. Medium-duty truck engine sales increased 7.9%. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Off-road engine unit sales grew 7.7%, supported by marine and power-generation demand. Engine sales in those marine and power-generation markets increased 42%, while industrial-application sales rose 15.8%. Agricultural-machinery engine sales, however, declined 18.9%. Loo said gross-margin expansion reflected a more favorable product mix, including larger and heavy-duty engines, along with continuing operational-efficiency efforts. He noted that higher precious-metal prices partly offset the company’s cost-improvement measures. The company said combined production capacity for high-horsepower engines across its own operations and the MTU Yuchai joint venture stood at roughly 5,000 units. Sales of engines to artificial-intelligence data centers from the joint venture and China Yuchai’s own brand totaled about 1,800 units during the first half. During the question-and-answer session, Investor Relations representative Kevin Theiss said the company now expects full-year AI data-center engine sales of about 3,500 units or more. Management said that figure applies only to AI data-center applications, while high-horsepower engines are also sold for other power-generation uses. General Manager of Operations Kelvin Lai said capacity increased from approximately 3,000 units last year after the company completed a capacity-extension program and subcontracted certain machining processes. The company also expects to use both additional outsourcing and internal equipment investments to potentially expand capacity further next year, though it has not finalized its production plans. Lai said competition in the high-horsepower engine market remains strong as other manufacturers also add capacity. He said the company had not seen a material engine-price increase from last year, apart from passing through supplier cost increases to end users. China Yuchai increased total research-and-development expenditures, including capitalized costs, by nearly 30% to RMB 622.5 million, or $91.4 million. The company introduced commercial minibuses in Hong Kong equipped with its YCY24-65kW flywheel range-extender system, which management said reduces reliance on fixed charging infrastructure. The company also said it developed its first high-pressure direct-injection internal-combustion engine capable of operating entirely on ammonia. In addition, it acquired a 27.97% equity interest in Nanyue Fuel Injection Systems, or NYDK, and began consolidating NYDK’s financial results on April 1 after obtaining control on March 31. China Yuchai’s Guangxi Yuchai Marine and Genset Power subsidiary continued its Hong Kong Stock Exchange initial public offering application process. Management said China Yuchai expects to remain the controlling shareholder if the listing is completed. As of June 30, cash and bank balances were RMB 8.1 billion, compared with RMB 7.9 billion at the end of 2025. Total short- and long-term loans and borrowings declined to RMB 1.4 billion from RMB 2 billion. The company paid a cash dividend of $0.87 per ordinary share for 2025 in July 2026, compared with $0.53 per share paid for 2024. On questions about alternative technologies, Lai said the company’s gas engines are established products, but its engines remain in the certification process for the North American market. Management did not provide a timetable for U.S. market entry. Loo said fuel-cell products have been installed in buses, including in Beijing, but the company does not have a near-term fuel-cell product for power generation or data-center applications. China Yuchai International Ltd. (NYSE: CYD) is a Cayman Islands–incorporated holding company with principal executive offices in Singapore. Through its subsidiaries, the company is a leading manufacturer and distributor of diesel engines in the People’s Republic of China. Its principal operating subsidiary, Guangxi Yuchai Machinery Company Limited (GYMCL), has been producing diesel engines since 1951 and ranks among the country’s largest heavy-duty engine makers. The company’s core product portfolio includes high-speed and medium-speed diesel engines for on-highway trucks and buses, off-road vehicles such as construction and agricultural machinery, marine propulsion systems, and power generator sets. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "China Yuchai International H1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Revenue: RMB14.7 billion (USD2.2 billion) in 1H 2026, up 13.9% year-over-year. Engine Unit Sales: 277,684 units, up 10.9% year-over-year. Gross Profit: RMB2.5 billion (USD368.7 million), up 36.5% year-over-year. Gross Margin: 17.1% in 1H 2026, compared with 14.3% in 1H 2025. Operating Profit: RMB988.2 million (USD145.1 million), up 58.9% year-over-year. Operating Margin: 6.7% in 1H 2026, compared with 4.8% in 1H 2025. Net Profit Attributable to Shareholders: RMB560.6 million (USD82.3 million), up 53.2% year-over-year. Diluted EPS: RMB14.81 (USD2.17) in 1H 2026, compared with RMB9.75 in 1H 2025. Truck Engine Unit Sales: Up 20.4% year-over-year, with heavy-duty truck engine unit sales up 47.3%. Off-Road Engine Unit Sales: Up 7.7% year-over-year, driven by a 42% increase in marine and power generation markets. R&D Expenses: RMB583.4 million (USD87.1 million), up 24.5% year-over-year. SG&A Expenses: RMB1.1 billion (USD158.5 million), up 12.2% year-over-year. Finance Costs: RMB27 million (USD4 million), down 16% year-over-year. Share of Associates and JV Profits: RMB95.9 million (USD14.1 million), up 56.2% year-over-year. Income Tax Expense: RMB215.3 million (USD31.6 million), up 85.3% year-over-year. Cash and Bank Balances: RMB8.1 billion (USD1.2 billion) as of June 30, 2026. Short-term and Long-term Loans: RMB1.4 billion (USD210.1 million), down from RMB2 billion at end of 2025. Warning! GuruFocus has detected 2 Warning Sign with CYD. Is CYD fairly valued? Test your thesis with our free DCF calculator. Release Date: August 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue increased by 30.9% year-over-year, with a 10.9% gain in unit sales, indicating strong demand. Gross profit margin improved to 17.1% from 14.3%, driven by a better sales mix of larger engines and reduced warranty expenses. Heavy-duty truck engine unit sales surged 47.3% year-over-year, outperforming the industry's 13.1% growth. Sales to AI data centers reached approximately 1,800 units in H1 2026, with full-year guidance raised to 3,500+ units. Joint ventures and associates' profits grew 56.2% year-over-year, led by strong performance at MTU-Hi Power. Cash and bank balances remained robust at approximately $1.2 billion, with lower borrowings, supporting continued investment. Increased dividend payout to $0.87 per share for 2025, up from $0.53 for 2024, reflecting commitment to shareholder returns. Other operating income decreased by 32.2% due to lower government grants and absence of technology licensing fees. R&D expenses increased by 24.5%, with higher experimental and personnel costs and lower capitalized project costs. Effective income tax rate rose to 20.4% from 17.8%, due to higher profits and utilization of deferred tax assets. Agricultural machinery engine sales declined by 18.9% year-over-year. Pricing pressure in the high-horsepower engine market, with no real price increases despite cost increases. Gross margin at MTU-JV was slightly reduced due to cost increases and pricing discounts offered to OEMs and partners. Fuel cell business is still in progress with no short-term plans for power generation applications. Q: What is the company's guidance for AI data center (AIDC) engine sales in 2026, and how does this compare to the first half performance?A: Weng Ming Hoh (President) stated that AIDC engine sales from both E-Chai and the MTU joint venture reached 1,800 units in the first half of 2026. The company expects total AIDC sales for the full year to be around 3,500 units or more, representing a significant growth compared to 2025. Q: Can you explain the factors behind the significant gross margin improvement in the first half of 2026?A: Choon Sen Loo (CFO) attributed the gross margin expansion from 14.3% to 17.1% to three main factors: a favorable product mix driven by higher sales of larger, high-horsepower engines; increased heavy-duty truck engine unit sales; and continued improvements in operational efficiency and cost rationalization. These gains were partially offset by some unfavorable price increases. Q: What is the current production capacity for high-horsepower engines, and how was it increased?A: Choon Sen Loo (CFO) confirmed that the combined production capacity for high-horsepower engines across the MTU-JV and E-Chai is currently approximately 5,000 units. This represents an increase from the previous capacity of around 4,000 units, achieved by subcontracting some machining processes to external suppliers, which freed up internal capacity to build more engines. Q: What is the margin profile for the MTU joint venture, and how is it performing?A: Choon Sen Loo (CFO) noted that while the gross profit margin for the MTU joint venture has slightly decreased due to higher engine costs and pricing pressure requiring discounts to OEMs and partners, the overall sales increased by over 40% in the first half. The JV is still maintaining a gross profit margin of over 30%, which remains promising for net profit. Q: What is the progress on the company's gas engine products, and are they being targeted for the North American data center market?A: Weng Ming Hoh (President) explained that gas engines are a traditional, readily available product in China. However, for the North American market, the engines are still undergoing the certification process. Until testing is fully completed, the company is using its existing VC engines, which can provide up to 1.5 megawatts for diesel and about 3 megawatts for other applications. Q: What is the status of the company's fuel cell business, and could it be used for data center power generation in the future?A: Choon Sen Loo (CFO) stated that the fuel cell unit is still in progress. While some products have been installed in the past, particularly in Beijing, the company has not started working on the power generation side for fuel cells. It is a possibility in the future, but definitely not in the short-term. Q: Why was the dividend payout ratio for 2025 lower than the previous year?A: Choon Sen Loo (CFO) clarified that there was no particular reason for the change. He noted that the company's payout ratio over the past 10 years has ranged from about 30% to 40%, sometimes a little higher or lower, and the 2025 dividend remains within that historical range. Q: How is increased competition from other manufacturers ramping up capacity affecting the company's ability to maintain or increase average selling prices for high-horsepower/AIDC engines?A: Choon Sen Loo (CFO) acknowledged that the market is very competitive, as all major manufacturers have been expanding capacity since 2024. He stated that the company has not seen real pricing increases compared to last year. While there have been cost increases from suppliers, these have been passed on to end users, keeping the engine pricing itself relatively stable. Q: What are the plans to further increase capacity for high-horsepower engines next year?A: Choon Sen Loo (CFO) explained that the company will pursue a two-pronged approach. First, it will further outsource some machining processes to external suppliers. However, since fine machining must be done in-house, the company will also need to invest in new equipment to increase internal capacity. A final decision on the capacity increase for next year has not yet been made. Q: Can you provide more detail on the performance of the truck engine segment in the first half of 2026?A: Choon Sen Loo (CFO) reported that total truck engine unit sales were up 20.4% year-over-year, significantly outperforming the 25.8% growth in overall commercial truck sales reported by CAAM (excluding gasoline and electric vehicles). Heavy-duty truck engine unit sales increased by 47.3% year-over-year, compared to the 13.1% growth in heavy-duty truck sales reported by CAAM. Light-duty truck engine unit sales rose by 23.6%, contrasting with a decline in the overall light-duty truck market. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

SINGAPORE, Aug. 7, 2026 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai International" or the "Company"), one of the largest powertrain solution manufacturers through its main operating subsidiary in China, Guangxi Yuchai Machinery Company Limited ("Yuchai"), announces today its unaudited consolidated financial results for the first half-year ended June 30, 2026 ("1H 2026"). The financial information presented herein for 1H 2026 and the first half-year of 2025 ("1H 2025") is reported using the IFRS Accounting Standards as issued by the International Accounting Standards Board. Financial Highlights for 1H 2026 Revenue increased by 13.9% to RMB 14.7 billion (US$2.2 billion) compared with RMB 12.9 billion in 1H 2025; Gross profit increased by 36.5% to RMB 2.5 billion (US$368.7 million) compared with RMB 1.8 billion in 1H 2025. Gross margin was 17.1% in 1H 2026 compared with 14.3% in 1H 2025; Operating profit increased by 58.9% to RMB 988.2 million (US$145.1 million) compared with RMB 621.7 million in 1H 2025; Profit for the period increased by 57.4% to RMB 841.8 million (US$123.6 million) compared with RMB 534.8 million in 1H 2025; Profit attributable to CYD shareholders rose by 53.2% to RMB 560.6 million (US$82.3 million) compared with RMB 365.8 million in 1H 2025; Basic earnings per share were 53.2% higher at RMB 14.94 (US$2.19) compared with RMB 9.75 in 1H 2025. Diluted earnings per share were RMB 14.81 (US$2.17) in 1H 2026; Total number of engines sold increased by 10.9% to 277,684 units compared with 250,396 units in 1H 2025. Revenue was RMB 14.7 billion (US$2.2 billion) compared with RMB 12.9 billion in 1H 2025, a 13.9% year-over-year ("YoY") growth. Engine sales reached 277,684 units in 1H 2026, an increase of 10.9% compared with 250,396 units in 1H 2025. This growth was driven by stronger performance in the truck segment, as well as in off–road applications, particularly construction machinery and marine & power generation. Total truck engine unit sales were up 20.4% YoY in 1H 2026, outperforming the 5.8% YoY growth in overall commercial truck (excluding gasoline and electric vehicles) sales reported by the China Association of Automobile Manufacturers ("CAAM") in the same period. Heavy–duty ("HD") truck engine unit sales increased by 47.3% YoY, compared with the 13.1% YoY growth in HD truck sales reported by CAAM. Light–duty ("LD") truck engine unit sales rose by 23.6%, contrasted with a decline in LD truck sales according to CAAM. Medium–duty truck engine unit sales also grew 7.9% YoY. Engine unit sales to off–road markets increased by 7.7% YoY in 1H 2026. The growth was primarily driven by strong demand in the marine and power generation markets, where engine unit sales increased by 42% YoY. Sales for industrial applications rose by 15.8% YoY, while engine sales for agricultural machinery declined by 18.9% in the same period. Gross profit increased by 36.5% to RMB 2.5 billion (US$368.7 million), from RMB 1.8 billion in 1H 2025. The increase was mainly due to higher sales volume, better sales mix and reduced warranty expenses. Overall gross margin was 17.1% in 1H 2026 compared with 14.3% in 1H 2025. Increased sales of larger engines enhanced the gross profit margin in 1H 2026 YoY. Other operating income, net decreased by 32.2% to RMB 150.2 million (US$22.1 million), compared with RMB 221.4 million in 1H 2025. The decrease was mainly attributable to lower government grants, and the absence of technology licensing fees income in 1H 2026 as compared with that of 1H 2025. Research and development ("R&D") expenses increased by 24.5% to RMB 593.4 million (US$87.1 million), compared with RMB 476.7 million in 1H 2025, due to higher experimental and personnel costs and a lower level of capitalized project costs. Total R&D expenditures, including capitalized costs, were RMB 622.5 million (US$91.4 million), representing 4.2% of revenue in 1H 2026, as compared to RMB 551.7 million and 4.3% of revenue in 1H 2025. Selling, general and administrative ("SG&A") expenses increased by 12.2% to RMB 1.1 billion (US$158.5 million), from RMB 962.5 million in 1H 2025. This increase was driven by higher personnel expenses and legal, professional & consultancy fees compared with 1H 2025. SG&A expenses represented 7.4% of revenue for 1H 2026 compared with 7.5% of revenue in 1H 2025. Operating profit increased by 58.9% to RMB 988.2 million (US$145.1 million), compared to RMB 621.7 million in 1H 2025. The operating margin increased to 6.7%, in contrast with 4.8% in 1H 2025. Higher operating profit and operating margin were achieved by increased sales and gross margin combined with controlled growth in operating expenses. Finance costs decreased by 16.0% to RMB 27.0 million (US$4.0 million), compared with RMB 32.2 million in 1H 2025, primarily due to reduced term loans during the period. The share of financial results of the associates and joint ventures grew by 56.2% to a profit of RMB 95.9 million (US$14.1 million), compared with RMB 61.4 million in 1H 2025. The increase was mainly driven by higher profits at MTU Yuchai Power Company Limited ("MTU JV"). Income tax expense increased by 85.3% to RMB 215.3 million (US$31.6 million), compared with RMB 116.2 million in 1H 2025, primarily due to higher profits and the utilization of deferred tax assets. The effective income tax rate increased to 20.4% compared with 17.8% in 1H 2025. Net profit attributable to equity holders of the Company increased by 53.2% to RMB 560.6 million (US$82.3 million), compared with RMB 365.8 million in 1H 2025. Basic earnings per share were RMB 14.94 (US$2.19) compared with RMB 9.75 in 1H 2025, both based on a weighted average of 37,518,322 shares. Diluted earnings per share were RMB 14.81 (US$2.17) based on a weighted average of 37,845,508 shares, compared with RMB 9.75 based on a weighted average of 37,518,322 shares in 1H 2025. The Company adopted the China Yuchai International Limited 2025 Equity Incentive Plan with a duration of 10 years, and granted share options in August 2025 and December 2025 respectively, with a total of 820,000 share options granted as of December 31, 2025. No comparable share options were granted in 1H 2025. Balance Sheet Highlights as at June 30, 2026 Cash and bank balances were RMB 8.1 billion (US$1.2 billion) compared with RMB 7.9 billion at the end of 2025; Trade and bills receivables were RMB 14.1 billion (US$2.1 billion) compared with RMB 11.0 billion at the end of 2025; Inventories were RMB 5.8 billion (US$844.5 million) compared with RMB 5.6 billion at the end of 2025; Trade and bills payables were RMB 13.2 billion (US$1.9 billion) compared with RMB 11.6 billion at the end of 2025; Short-term and long-term loans and borrowings were RMB 1.4 billion (US$210.1 million) compared with RMB 2.0 billion at the end of 2025. Mr. Weng Ming Hoh, President of China Yuchai International, commented, "Our revenue witnessed a 13.9% YoY increase to RMB 14.7 billion (US$2.2 billion), with a 10.9% YoY increase in unit sales to 277,684 units. Our higher sales of larger engines improved both our average selling price and profitability as our diluted earnings per share grew by 51.9% to US$2.17." "For 1H 2026, our marine and power generation business recorded strong growth, with unit sales rising 42% YoY to 44,544 units. Sales to AI data centers by the MTU JV and Yuchai's own brand totaled approximately 1,800 units." "We continued to introduce new innovative products in 1H 2026. Commercial minibuses equipped with Yuchai's YCY24-65kW Flywheel Range Extender System (YC-FRS) were launched in Hong Kong. This new technology seamlessly integrates flywheel, engine crankshaft and alternator into a single unit designed for city transportation vehicles." "We acquired a 27.97% equity interest in Nanyue Fuel Injection Systems Co., Ltd (previously known as Nanyue Diankong (Hengyang) Industrial Technology Company Limited) ("NYDK") and became the second-largest shareholder of NYDK. We entered into a concerted action agreement with the largest shareholder of NYDK and secured operational control over NYDK. NYDK is a national high-tech and industry leader specializing in fuel injection systems covering common rail systems, unit pumps and mechanical pumps. This acquisition helps secure the supply of our key powertrain components." "At the end of June 2026, cash and bank balances totaled approximately US$1.2 billion, despite lower borrowings. Our solid financial position continues to empower Yuchai's ongoing investment in new product development, and further establishment of our presence in selected international markets to support future growth. To enhance shareholder returns, a cash dividend of US$0.87 per ordinary share for 2025 was paid in July 2026, compared with US$0.53 per ordinary share for 2024, paid in 2025," Mr. Hoh concluded. Exchange Rate Information The Company's functional currency is the U.S. dollar and its reporting currency is Renminbi. The translation of amounts from Renminbi to U.S. dollars is solely for the convenience of the reader. Translation of amounts from Renminbi to U.S. dollars has been made at the rate of RMB 6.8109 = US$1.00, the rate quoted by the People's Bank of China at the close of business on June 30, 2026. No representation is made that the Renminbi amounts could have been, or could be, converted into U.S. dollars at that rate or at any other certain rate on June 30, 2026 or at any other date. Unaudited 1H 2026 Conference Call A conference call and audio webcast for the investment community has been scheduled for 8:00 A.M. Eastern Daylight Time on August 7, 2026. The call will be hosted by the President and Chief Financial Officer of China Yuchai International, Mr. Weng Ming Hoh and Mr. Choon Sen Loo, respectively, who will present and discuss the financial results of the Company followed by a Q&A session. Analysts and institutional investors may participate in the conference call by registering at: https://register-conf.media-server.com/register/BIc272d6a9866e4edf9de866564468c2d6 at least one hour before the scheduled start time. A reply email will be sent with instructions and phone numbers to join the call. For all other interested parties, a simultaneous webcast can be accessed at the investor relations section of the Company's website located at http://www.cyilimited.com. Participants are encouraged to join the webcast at least 10 minutes prior to the scheduled start time. The recorded webcast will be available on the website shortly after the earnings call. About China Yuchai International China Yuchai International, through its principal operating subsidiary, Guangxi Yuchai Machinery Company Limited ("Yuchai"), is one of the leading powertrain solutions manufacturers in China. Founded in 1951, Yuchai maintains a reputable brand name, a strong research and development team, and a significant market share in China. Yuchai specializes in the design, manufacture, and sale of light-, medium- and heavy-duty engines for trucks, buses, pickups, construction and agricultural machinery, and marine and power generation applications. It delivers a comprehensive portfolio of powertrain solutions, spanning traditional diesel and natural gas engines to alternate fuels and new energy products, including pure electric, range extenders, hybrid, and fuel cell systems. Through an extensive network of regional sales offices and authorized customer service centers, Yuchai distributes engines directly to auto OEMs and distributors while providing after-sales services across China and globally. In 2025, Yuchai sold 461,309 engines and reported total revenue of RMB 24.6 billion. For more information, please visit http://www.cyilimited.com. Safe Harbor Statement: This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe", "expect", "anticipate", "project", "targets", "optimistic", "confident that", "continue to", "predict", "intend", "aim", "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that may be deemed forward-looking statements. These forward-looking statements, including, but not limited to, statements concerning China Yuchai International's and the joint ventures' operations, financial performance and condition, are based on current expectations, beliefs and assumptions which are subject to change at any time. China Yuchai International 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, economic and social conditions around the world and in China, including those discussed in the Company's Form 20-Fs under the headings "Risk Factors", "Results of Operations" and "Business Overview" and 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 China Yuchai International specifically disclaims any obligation to maintain or update the forward-looking information, whether of the nature contained in this release or otherwise, in the future. For more information: Investor RelationsKevin TheissTel: +1-212-510-8922Email: [email protected] -- Tables Follow – View original content:https://www.prnewswire.com/news-releases/china-yuchai-international-announces-unaudited-2026-first-half-year-financial-results-302845952.html

SINGAPORE, Aug. 6, 2026 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai International" or the "Company") wishes to announce that all the resolutions as set out in its Notice of Annual General Meeting dated July 7, 2026 were duly passed at its Annual General Meeting held in Singapore today. About China Yuchai International China Yuchai International, through its principal operating subsidiary, Guangxi Yuchai Machinery Company Limited ("Yuchai"), is one of the leading powertrain solutions manufacturers in China. Founded in 1951, Yuchai maintains a reputable brand name, a strong research and development team, and a significant market share in China. Yuchai specializes in the design, manufacture, and sale of light-, medium- and heavy-duty engines for trucks, buses, pickups, construction and agricultural equipment, and marine and power generation applications. It delivers a comprehensive portfolio of powertrain solutions, spanning traditional diesel and natural gas engines to alternate fuels and new energy products, including pure electric, range extenders, hybrid, and fuel cell systems. Through an extensive network of regional sales offices and authorized customer service centers, Yuchai distributes engines directly to auto OEMs and distributors while providing after-sales services across China and globally. In 2025, Yuchai sold 461,309 engines and reported total revenue of RMB 24.6 billion. For more information, please visit http://www.cyilimited.com. Safe Harbor Statement: This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe", "expect", "anticipate", "project", "targets", "optimistic", "confident that", "continue to", "predict", "intend", "aim", "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that may be deemed forward-looking statements. These forward-looking statements, including, but not limited to, statements concerning China Yuchai International's and the joint ventures' operations, financial performance and condition, are based on current expectations, beliefs and assumptions which are subject to change at any time. China Yuchai International 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, economic and social conditions around the world and in China, including those discussed in the Company's Form 20-Fs under the headings "Risk Factors", "Results of Operations" and "Business Overview" and 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 China Yuchai International specifically disclaims any obligation to maintain or update the forward-looking information, whether of the nature contained in this release or otherwise, in the future. For more information: Investor RelationsKevin TheissTel: +1-212-510-8922Email: [email protected] View original content:https://www.prnewswire.com/news-releases/results-of-annual-general-meeting-held-on-august-6-2026-302844715.html

- Earnings Call to Begin at 8:00 A.M. EDT – SINGAPORE, July 24, 2026 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai International" or the "Company"), announced today that it will be releasing its 2026 unaudited first-half financial results on Friday, August 7, 2026 before the market opens for trading. A conference call and audio webcast for the investment community has been scheduled for 8:00 A.M. Eastern Daylight Time on August 7, 2026. The call will be hosted by the President and Chief Financial Officer of China Yuchai International, Mr. Weng Ming Hoh and Mr. Choon Sen Loo, respectively, who will present and discuss the financial results of the Company followed by a Q&A session. Analysts and institutional investors may participate in the conference call by registering at: https://register-conf.media-server.com/register/BIc272d6a9866e4edf9de866564468c2d6 at least one hour before the scheduled start time. A reply email will be sent with instructions and phone numbers to join the call. For all other interested parties, a simultaneous webcast can be accessed at the investor relations section of the Company's website located at http://www.cyilimited.com. Participants are encouraged to join the webcast at least 10 minutes prior to the scheduled start time. The recorded webcast will be available on the website shortly after the earnings call. About China Yuchai International China Yuchai International, through its principal operating subsidiary, Guangxi Yuchai Machinery Company Limited ("Yuchai"), is one of the leading powertrain solutions manufacturers in China. Founded in 1951, Yuchai maintains a reputable brand name, a strong research and development team, and a significant market share in China. Yuchai specializes in the design, manufacture, and sale of light-, medium- and heavy-duty engines for trucks, buses, pickups, construction and agricultural equipment, and marine and power generation applications. It delivers a comprehensive portfolio of powertrain solutions, spanning traditional diesel and natural gas engines to alternate fuels and new energy products, including pure electric, range extenders, hybrid, and fuel cell systems. Through an extensive network of regional sales offices and authorized customer service centers, Yuchai distributes engines directly to auto OEMs and distributors while providing after-sales services across China and globally. In 2025, Yuchai sold 461,309 engines and reported total revenue of RMB 24.6 billion. For more information, please visit http://www.cyilimited.com. Safe Harbor Statement: This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe", "expect", "anticipate", "project", "targets", "optimistic", "confident that", "continue to", "predict", "intend", "aim", "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that may be deemed forward-looking statements. These forward-looking statements, including, but not limited to, statements concerning China Yuchai International's and the joint ventures' operations, financial performance and condition, are based on current expectations, beliefs and assumptions which are subject to change at any time. China Yuchai International 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, economic and social conditions around the world and in China, including those discussed in the Company's Form 20-Fs under the headings "Risk Factors", "Results of Operations" and "Business Overview" and 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 China Yuchai International specifically disclaims any obligation to maintain or update the forward-looking information, whether of the nature contained in this release or otherwise, in the future. For more information: Investor RelationsKevin TheissTel: +1-212-510-8922Email: [email protected] View original content:https://www.prnewswire.com/news-releases/china-yuchai-international-to-announce-unaudited-2026-first-half-financial-results-on-august-7-2026-302833893.html

Strong financial and volume recovery: Second‑half revenue rose 33.5% to RMB 11.8 billion and full‑year revenue was up 20.9% to RMB 24.7 billion, with gross margins expanding and full‑year EPS increasing to RMB 14.32 as total engine sales climbed 29.4% to 461,309 units. Data‑center genset demand driving growth: Combined sales of high‑horsepower engines to data centers jumped to over 2,000 units in 2025 (from 750), prompting capacity expansion and management calling data‑center demand a “bright spot,” though outlook remains tied to policy uncertainty. Higher R&D and shift to new‑energy/emissions readiness: R&D spending rose sharply (total R&D ~RMB 1.5 billion, ~6.2% of revenue) as the company advances National VI/Tier‑4 performance, explores hydrogen/methanol/ammonia combustion and fuel‑cell work, and prepares for a potential National VII standard. Interested in China Yuchai International Limited? Here are five stocks we like better. China Yuchai International (NYSE:CYD) reported higher revenue and profit for the second half of 2025 and for the full year, citing broad-based unit sales gains across most engine categories and a richer sales mix that favored heavy-duty and high-horsepower products. Management said second-half revenue rose 33.5% year over year to RMB 11.8 billion (about $1.7 billion). Gross profit increased 50.4% to RMB 2.2 billion ($317 million), and gross margin expanded to 18.9% from 15.9% a year earlier. Operating profit rose to RMB 469.2 million ($66.7 million), and basic and diluted earnings per share were RMB 4.57 ($0.65), up from RMB 2.19 in the prior-year period. → Hinge Health’s AI Moat Might Be Its Patient Movement Data Chief Financial Officer Choon Sen Loo attributed the margin improvement primarily to higher unit sales volume, a change in sales mix toward heavy-duty and high-horsepower engines, and ongoing cost-reduction initiatives. He added that SG&A expenses rose modestly in absolute terms but fell as a percentage of revenue to 9.4% from 12.0%. Engine unit sales increased 28.7% in the second half to 210,913 units. The company said growth was led by truck and bus engines, which rose 49.2% year over year. Truck engine unit sales increased 59.4%, including a 100.61% increase in heavy-duty truck engines. Off-road engine unit sales rose 7.5%, supported by more than 22% growth in industrial engines and marine and genset engines, partially offset by lower agricultural engine unit sales. → Gold and Silver Pulled Back—Here’s Why the Bull Case Is Intact For the year ended Dec. 31, 2025, the company reported revenue of RMB 24.7 billion (about $3.5 billion), up 20.9% from RMB 19.1 billion in 2024, according to the CFO’s prepared remarks. Gross profit rose 44.3% to RMB 4.1 billion ($578.7 million) and gross margin improved to 16.5% from 14.7%. Operating profit increased 82.7% to RMB 1.1 billion ($155.2 million), with operating margin at 4.4% versus 3.1% in 2024. Net profit attributable to shareholders grew 66.3% to RMB 537.4 million ($76.5 million). Basic and diluted EPS rose to RMB 14.32 ($2.04) from RMB 8.21. → Opendoor Pops After Earnings, But the Big Question Hasn’t Changed For the full year, total engines sold increased 29.4% to 461,309 units. Truck and bus engine unit sales rose 42.8%, while total truck engine sales increased 50.7%. Within trucks, the company reported heavy-duty truck engine sales up 80.1%, medium-duty truck engines up 34.2%, and light-duty truck engine sales up 67.6%. Off-road engine unit sales increased 13%, with industrial engines and marine and genset engines each posting more than 24% unit growth, offset by lower agricultural engine unit sales. Management repeatedly pointed to demand for backup generators supporting data center operations as a key growth driver. President Weng Ming Hoh said combined sales of MTU, Yuchai Power and Yuchai-branded high-horsepower engines to data centers exceeded 2,000 units in 2025, up from 750 units in the prior year. The company said it is expanding production capacity to meet expected increases in power generation engine demand. On the call, management said it expects data center-related demand to improve in 2026 and described it as a “bright spot,” though it did not provide a companywide revenue or profit forecast and emphasized uncertainty tied to government policy. Responding to a question on whether the improved product mix could continue, management said providing guidance in China is challenging given the influence of policy-driven replacement programs. In response to questions on high-horsepower engines and natural gas generator applications, management said Yuchai has natural gas engine technology for power generation. It described a natural gas configuration based on its 16VC engine capable of generating about 2 MW. However, management said natural gas high-horsepower applications are currently focused mainly on industrial uses and that, in China and Asia, customers are not yet using natural gas engines for AI data center needs “at this stage.” R&D expenses rose 48% in the second half to RMB 884.9 million ($124.5 million) and increased 37.3% for the full year to RMB 1.4 billion ($192.3 million). Management attributed the increases to higher experimental costs, personnel expenses, mold costs, and impairments related to fuel cell development. Total R&D spending including capitalized costs was RMB 1.5 billion ($217.1 million) for the year, representing 6.2% of revenue, consistent with the prior year on a percentage basis. Management said R&D initiatives include improving the efficiency and performance of National VI and Tier 4 emissions-compliant engines and advancing new energy products, including hydrogen, methanol and ammonia combustion technologies. The company also said it has begun work to prepare for a potential National VII emissions standard in the next two to three years. Other operating income fell 44.1% in the second half and 22.5% for the year, which the CFO said was primarily due to lower government grants and, for the full year, lower bank interest income as well. Asked about the outlook for other operating income, management said it would not project future government incentives and suggested the trend could remain similar to 2025. On joint ventures, management said profit contributions rose 9.4% year over year for 2025, driven mainly by MTU Yuchai. In Q&A, MTU Yuchai’s chairman said the joint venture generated net profit of about RMB 211 million in 2025, up 22% from 2024, with revenue up more than 30%. He said profit growth lagged volume and revenue due to a product mix shift, including fewer 20-cylinder engines. Management also discussed steps to strengthen its technology capabilities and supply chain resilience, including acquiring a 27.97% equity interest in Nanyue Diankong Industrial Technology Company, which it described as specializing in fuel injection systems. The company also became a limited partner in the Guangxi Yuchai Double Growth Fund, a private equity fund focused on emerging and innovative technologies. Additionally, management said its indirect subsidiary Guangxi Yuchai Marine and Genset Power Company filed an application for listing on the Hong Kong Stock Exchange on Jan. 26, noting that any listing remains subject to regulatory review, approval and market conditions. On capital returns and liquidity, management said the company paid a cash dividend of $0.53 per ordinary share in July 2025. Cash and bank balances were RMB 7.9 billion ($1.1 billion) as of Dec. 31, 2025, up from RMB 6.4 billion at the end of 2024. The company reported trade and bills receivables of RMB 10.4 billion, inventories of RMB 5.6 billion, trade and bills payables of RMB 11.1 billion, and loans and borrowings of RMB 2.0 billion, down from RMB 2.5 billion a year earlier. China Yuchai International Ltd. (NYSE: CYD) is a Cayman Islands–incorporated holding company with principal executive offices in Singapore. Through its subsidiaries, the company is a leading manufacturer and distributor of diesel engines in the People’s Republic of China. Its principal operating subsidiary, Guangxi Yuchai Machinery Company Limited (GYMCL), has been producing diesel engines since 1951 and ranks among the country’s largest heavy-duty engine makers. The company’s core product portfolio includes high-speed and medium-speed diesel engines for on-highway trucks and buses, off-road vehicles such as construction and agricultural machinery, marine propulsion systems, and power generator sets. The article "China Yuchai International H2 Earnings Call Highlights" was originally published by MarketBeat.

This article first appeared on GuruFocus. Release Date: February 24, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. China Yuchai International Ltd (NYSE:CYD) reported a strong sales and profit growth in the second half and full year of 2025, with revenue increasing by 33.5% year over year. Gross profit increased by 58.4% year over year, and the gross margin rose to 18.9%, indicating improved profitability. The company saw a significant increase in unit sales, particularly in heavy-duty and high-horsepower engines, contributing to revenue growth. Exports played a crucial role in sales growth, with successful international partnerships and expansion in markets like Vietnam and Mexico. Research and development expenses increased by 37.3%, reflecting the company's commitment to enhancing engine efficiency and developing new energy products. Other income decreased by 44.1% due to lower government grants, impacting overall profitability. Research and development expenses rose significantly, driven by higher experimental costs and impairments related to fuel cell development. The share of financial results from associates and joint ventures decreased by 15.1%, mainly due to reduced profits at YMC Engine Co Limited. Income tax expenses increased significantly, driven by higher profits and deferred tax expenses. The company faces challenges in providing guidance for 2026 due to uncertainties in government policies affecting sales. Warning! GuruFocus has detected 10 Warning Signs with CYD. Is CYD fairly valued? Test your thesis with our free DCF calculator. Q: Can you explain the higher tax expenses in the second half of 2025, where the effective tax rate was about 44%? A: Jun Fan, CFO: The higher tax expense is due to deferred tax adjustments. We wrote off about RMB 100 million in deferred tax assets, which is a non-cash item. This adjustment aligns with accounting standards that require us to assess future profits and impair deferred tax assets accordingly. Excluding this, the effective cash tax rate would be around 20-21%. Q: What caused the decrease in other operating income in 2025, and what is the outlook for 2026? A: Jun Fan, CFO: The decrease in other operating income was mainly due to lower government grants, as the Chinese government tightened incentive policies. We expect this trend to continue into 2026, but it's difficult to predict future government incentives. Q: Can you provide details on the profit growth of the MTU joint venture in 2025? A: Calvin Lai, Chairman of MTU: The joint venture generated net profits of RMB 211 million in 2025, an increase of 22% from 2024. However, the profit growth was not as high as the sales volume increase due to changes in product mix, with fewer high-margin 20-cylinder engines sold. Q: What contributed to the improved gross profit margin in the second half of 2025, and what is the outlook for 2026? A: The improved gross profit margin was due to a 30% increase in unit sales and a higher proportion of high horsepower engine sales. For 2026, the outlook is challenging due to reliance on government policies, but we expect continued demand from data centers, potentially leading to double-digit growth in that segment. Q: What are the key R&D focuses for 2026 and 2027, and what is the expected growth rate for R&D expenses? A: R&D expenses are expected to grow by around 5% of revenue. Key focuses include new energy solutions like ammonia, methanol, and hydrogen-powered engines, as well as preparations for potential National 7 emission standards. Continuous improvement in engine efficiency and performance is also a priority. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Revenue growth of 28.9% for the full year was driven by higher unit sales across nearly every reporting category, particularly in heavy-duty and high-horsepower engines. The data center market emerged as a critical growth engine, with combined sales of MTU Yuchai and Yuchai branded high-horsepower units increasing from 750 to over 2,000 units. Gross margin expansion to 16.5% was attributed to a favorable shift in product mix toward high-margin heavy-duty engines and ongoing cost reduction initiatives. Market share gains in the truck and bus segments significantly outpaced industry averages, led by a 146.1% year-over-year surge in heavy-duty truck engine sales during the second half. Strategic globalization efforts were bolstered by new production partnerships in Vietnam and Thailand, alongside expanding bus engine deliveries in Mexico. Management strengthened the supply chain and technological moat through a 27.97% equity acquisition in Nanyue Diankong, a leader in fuel injection systems. R&D investment increased by 37.3% to support National VI and Tier 4 compliance while advancing alternative fuel technologies including hydrogen, methanol, and ammonia. Management expects double-digit growth in the data center segment for 2026, though overall vehicle engine demand remains highly dependent on Chinese government replacement policies. Production capacity expansion is currently underway to meet the anticipated rise in demand for power-generating engines used in backup data center operations. The company is preparing for the potential introduction of National VII emission standards within the next 2 to 3 years through targeted R&D programs. An application for listing the Guangxi Yuchai Marine and Genset Power subsidiary on the Hong Kong Stock Exchange was filed in January 2026 to secure additional growth resources. Future profitability in the MTU Yuchai joint venture may be impacted by supply chain constraints from German partners and shifts in the high-horsepower product mix. The effective tax rate spiked to 44% in the second half due to a non-cash write-off of deferred tax assets, though the normalized rate remains approximately 20% to 21%. Other operating income declined by 22.5% for the year, primarily due to a substantial reduction in government grants as Chinese incentive policies tightened. R&D expenses included specific impairment charges related to fuel cell development during the second half of 2025. Rising raw material costs are expected to exert upward pressure on engine pricing and production costs in the coming periods. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management clarified the 44% rate was driven by a non-cash impairment of deferred tax assets required by accounting standards based on future profit assessments. Excluding this one-time adjustment, the effective tax rate for 2025 would have been between 20% and 21%. Order backlogs remain strong with typical delivery lead times of 3 to 4 months. While domestic supply chains for Yuchai-branded engines are stable, the MTU joint venture faces component bottlenecks from German suppliers. Yuchai possesses the technology for 2-megawatt natural gas generators, but current data center customers in Asia still prefer diesel due to cost considerations. Natural gas engine applications are currently limited primarily to industrial sectors rather than primary data center power. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.