About China Yuchai International

China Yuchai International Limited, through its subsidiaries, manufactures, assembles, and sells diesel and natural gas engines. Segments The company operates in two segments, Yuchai and HLGE. Yuchai This segment primarily manufactures and sells diesel engines, which are mainly distributed in the People's Republic of China (PRC) market. HLGE This segment engages in the hospitality and property development activities conducted mainly in the PRC and Malaysia. The company owns, through six of its wholly-owned subsidiaries, 76.4% Yuchai (Guangxi Yuchai Machinery Company Limited and its subsidiaries). The company provides certain management, financial planning, internal audit services, internal control testing, the International Financial Reporting Standards (IFRS) training, business enhancement consulting, and other services to Yuchai. Products and Product Development - Yuchai Yuchai engages in the manufacture, assembly and sale of a wide variety of light-, medium- and heavy-duty engines for trucks, buses, passenger vehicles, construction equipment, and marine and agriculture applications in China. Yuchai also produces engines for diesel power generators. The engines produced by Yuchai range from diesel to natural gas and hybrid engines. Through its regional sales offices and authorized customer service centers, Yuchai distributes its engines directly to auto original equipment manufacturers (OEMs), agents and retailers and provides maintenance and retrofitting services throughout China. To meet the demand of clean-energy engines, Yuchai is also expanding its production and research and development capabilities in natural gas engines, fuel cells, hybrid power system, pure electric system, engine range extenders, and electric drive axle. Yuchai has an agreement with the Government of Nanning Municipality to invest on the research, development and construction of new production capacity for new energy technologies, including fuel cell systems, range extenders, hybrid power and electric drive system. Yuchai has a new smart powertrain system, IE-Power, and the China's first heavy-duty tractor CVT hybrid powertrain. Yuchai has its first operating hydrogen engine for China's commercial vehicle market, the YCK05 hydrogen-powered engine. In 2022, Yuchai introduced its next-generation hydrogen engine for heavy on-road vehicle applications, YCK16H, a heavy-duty hydrogen combustion engine that has a displacement volume of 15.9 litre with a design output of 560hp. An ISG power generation powertrain (YC IE-Power); An e-CVT power-split hybrid powertrain (YC e-CVT); An integrated electric drive axel powertrain (YC e-Axel); and A fuel cell system (YC FCS). In October 2018, Yuchai introduced the below 10 new engine models compliant with the Tier-4 emission standards for industrial and agricultural off-road applications, which are YCA05, YCA07, YCA08, YCF36 (2 models), YCK09, YCK11, YCK13, YCK15 and YCTD20. The YCA05-T40 engine has a displacement volume of 4.8 liter and a maximum power output of 220 PS with a maximum torque of 720 N-m. The YCA07-T40 engine has a displacement volume of 6.9 liter and a maximum power output of 260 PS with a maximum torque of 1050 N-m. The YCA08-T40 engine has a displacement volume of 7.5 liter and a maximum power output of 320 PS with a maximum torque of 1200 N-m. The YCF36-T48 engine has a displacement volume of 3.6 liter and a maximum power output of 125 PS with a maximum torque of 480 N-m. The YCF36-T40 engine has a displacement volume of 3.6 liter and a maximum power output of 150 PS with a maximum torque of 500 N-m. The YCK09-T40 engine has a displacement volume of 9.4 liter and a maximum power output of 400 PS with a maximum torque of 1900 N-m. The YCK11-T40 engine has a displacement volume of 10.8 liter and a maximum power output of 480 PS with a maximum torque of 2200 N-m. The YCK13-T40 engine has a displacement volume of 12.9 liter and a maximum power output of 580 PS with a maximum torque of 2600 N-m. The YCK15-T40 engine has a displacement volume of 15.3 liter and a maximum power output of 650 PS with a maximum torque of 3000 N-m. The YCTD20-T40 engine has a displacement volume of 19.6 liter and a maximum power output of 952 PS with a maximum torque of 3800 N-m. Existing Engine Products Yuchai manufactures diesel and natural gas engines for trucks, buses and passenger vehicles, marine and industrial applications, and generator sets. Yuchai's existing engine products include light-, medium- and heavy-duty engines. According to Yuchai's new classification system, engines are classified as light-duty engines in capacity of 3.8 liters and less, medium-duty engines in capacity of between 3.8 liters and 7.0 liters, and heavy-duty engines in capacity of 7.0 liters and above. 4-Cylinder Diesel Engines The company's line of 4-cylinder diesel engines consists of the following models: The YCY24 engine compliant with National VI emission standards is for use in passenger vehicles, light-duty buses, and pick-up trucks. It has a displacement volume of 2.36 liter and a maximum power output of 150 PS with a maximum torque of 380 N-m. The YCY30 engine compliant with National VI emission standards is for use in light-duty buses and trucks. It has a displacement volume of 2.97 liter and a power range of 150-180 PS with a maximum torque of 460 N-m. The YCS04 engine compliant with National VI emission standards is for use in light to medium-duty buses and trucks. It has a displacement volume of 4.16 liter and a maximum power output of 180 PS with a maximum torque of 650 N-m. The YCA05-T40 engine compliant with China off-road Tier-4 emission standards is for use in industrial and agricultural off-road applications. It has a displacement volume of 4.8 liter and a maximum power output of 220 PS with a maximum torque of 720 N-m. The YCF30-T48 engine compliant with China off-road Tier-4 emission standards is for use in industrial and agricultural off-road applications. It has a displacement volume of 3.0 liter and a maximum power output of 120 PS with a maximum torque of 430 N-m. The YCF36-T48 engine compliant with off-road Tier-4 emission standards is for use in industrial and agricultural off-road applications. It has a displacement volume of 3.6 liter and a maximum power output of 125 PS with a maximum torque of 480 N-m. The YCF36-T40 engine compliant with off-road Tier-4 emission standards is for use in industrial and agricultural off-road applications. It has a displacement volume of 3.6 liter and a maximum power output of 150 PS with a maximum torque of 500 N-m. 6-Cylinder Diesel Engines The company's line of 6-cylinder diesel engines consists of the following models: The YCS06 engine compliant with National VI emission standards is for use in medium-duty trucks, coaches and buses. It has a displacement volume of 6.23 liter and a maximum power output of 260 PS with a maximum torque of 1000 N-m. The YCK05 engine compliant with National VI emission standards is for use in medium-duty trucks, coaches and buses. It has a displacement volume of 5.1 liter and a maximum power output of 230 PS with a maximum torque of 870 N-m. The YCK08 engine compliant with National VI emission standards is for use in medium-duty and special purpose trucks, highway coaches and buses. It has a displacement volume of 7.7 liter and a maximum power output of 350 PS with a maximum torque of 1400 N-m. The YCK09 engine compliant with National VI emission standards are for use in medium to heavy-duty trucks, highway coaches and buses. It has a displacement volume of 9.41 liter and a maximum power output of 380 PS with a maximum torque of 1800 N-m. The YCK11 engine compliant with National VI emission standards is for use in heavy-duty trucks and trailers, highway coaches and buses over 10 m in height. It has a displacement volume of 10.84 liter and a maximum power output of 460 PS with a maximum torque of 2200 N-m. The YC6K12 engine compliant with National VI emission standard is for use in heavy-duty trucks and trailers. It has a displacement volume of 12.15 liter and a maximum power of 520 PS and a maximum torque of 2200 N-m. The YCK13 engine compliant with National VI emission standards is for use in heavy-duty trucks and trailers, and highway coaches. It has a displacement volume of 12.94 liter and a maximum power output of 560 PS with a maximum torque of 2500 N-m. The YCA07-T40 engine compliant with China off-road Tier-4 emission standards is for use in industrial and agricultural off-road applications. It has a displacement volume of 6.9 liter and a maximum power output of 260 PS with a maximum torque of 1050 N-m. The YCA08-T40 engine compliant with China off-road Tier-4 emission standards is for use in industrial and agricultural off-road applications. It has a displacement volume of 7.5 liter and a maximum power output of 320 PS with a maximum torque of 1200 N-m. The YCK09-T40 engine compliant with China off-road Tier-4 emission standards is for use in industrial and agricultural off-road applications. It has a displacement volume of 9.4 liter and a maximum power output of 400 PS with a maximum torque of 1900 N-m. The YCK11-T40 engine compliant with China off-road Tier-4 emission standards is for use in industrial and agricultural off-road applications. It has a displacement volume of 10.8 liter and a maximum power output of 480 PS with a maximum torque of 2200 N-m. The YCK13-T40 engine compliant with China off-road Tier-4 emission standards is for use in industrial and agricultural off-road applications. It has a displacement volume of 12.9 liter and a maximum power output of 580 PS with a maximum torque of 2600 N-m. The YCK16-T40 engine compliant with China off-road Tier-4 emission standards is for use in industrial and agricultural off-road applications. It has a displacement volume of 15.9 liter and a maximum power output of 775 PS with a maximum torque of 3200 N-m. The YCTD20-T40 engine compliant with China off-road Tier-4 emission standards is for use in industrial and agricultural off-road applications. It has a displacement volume of 19.6 liter and a maximum power output of 952 PS with a maximum torque of 3800 N-m. High Horsepower Marine Diesel Engines and Power Generator The following are the company's marine diesel and power generator models: YC6T is a 6-cylinder engine rated at 360 to 600 PS and is suitable for construction applications. It is used in marine propulsion, power generators, and construction and mine trucks. The YC6T engine rated at 404 to 440 kW at 1500 rpm is for power generation, while those rated at 290 to 396 kW at 1500 to 1800 rpm are for marine applications and those rated at 350 to 540 PS at 1350 rpm are for marine propulsion. YC6C is a 40 liter, 6-cylinder engine rated at 700 to 1000 PS. It is used in marine propulsion, power generators, and construction and mine trucks. The YC6C engine rated 680 to 850 kW at 1500 rpm is for power generation and those rated 560 to 680 kW at 1500 rpm are for marine propulsion. YC6CL is an upgraded version of the YC6C engine with longer piston stroke for better power output and performance. It is a 54-liter engine rated at 800 to 1200 PS. YC12VTD is derived from the YC6TD engines where the V-engine enables the engine to have a compact configuration. The engine is 12-cylinder, 39 liter rated at 900 to 1345 kW at 1500 rpm, mainly for application in the power generator, marine, and industrial markets. YC16VTD is derived from the YC6TD engine where the V-engine enables the engine to have a compact configuration. The engine is 16-cylinder, 52 liter rated at 1520 to 1680 kW at 1500 rpm, mainly for application in the power generator, marine, and industrial markets. YC12VC is derived from the YC6C engines where the V-engine enables the engine to extend its power output at similar engine platform. The engine is 12-cylinder, 80 liter rated at 1120 to 1800 kW at 1500 rpm. The main application is in the power generator, marine, and industrial markets. YC16VC is derived from the YC6C engines where the V-engine enables the engine to extend its power output at similar engine platform. The engine is 16-cylinder, 108 liter rated at 1960 to 2400 kW at 1500 rpm. The main application is in the power generator, marine, and industrial markets. YC8CL is an extended version of YC6CL engine, with 8-cylinder in line configuration. YC8CL is an 8-cylinder, 72.8 liter engine rated at 692 to 1176 kW at 750 to 1000 rpm. The main application is in marine propulsion for river trade and costal general cargo vessels. Other Products and Services Natural Gas Engines Yuchai has a facility at its primary manufacturing facility in Yulin City, Guangxi Zhuang Autonomous Region, to develop and produce a portfolio of natural gas powered engines to complement its existing suite of diesel engines. The main uses of Yuchai's natural gas engines are in large buses, medium- to heavy-duty trucks, industrial and power generators and the marine sector. Yuchai natural gas engines are designed to work with both CNG and LNG fuel systems, and they are generally constructed using similar major components as Yuchai's diesel engines. Yuchai offers natural gas engines in the following models: YCS04N, YCA07N, YC6JN, YC6GN, YC6LN, YC6MKN, YCK08N, YCK11N, YCK13N, and YCK15N ranging from 120 to 560 hp. Among these engines, YCS04N, YCA07N, YCK08N, YCK11N, YCK13N, and YCK15N are natural gas engines compliant with National VI emission standards. Diesel Power Generators Yuchai engages in producing the diesel generator set, with wide application in the civil and marine sectors. Yuchai produces diesel power generators, which are primarily used in the baseload and standby power generation application. The diesel power generators offer a rated power of 24 to 160 kW. Yuchai's diesel power generators use diesel engines from YC4FA up to YC6T as their power source. The generator set includes an intelligent digital controlling system, remote control, generators group control, remote monitoring, automatic parallel operation, and automated protection against breakdowns. Diesel Engine Parts Yuchai supplies diesel engine parts to its nationwide chain of customer service stations in China. Although sales of diesel engine parts do not constitute a major percentage of Yuchai's revenue, the availability of such parts to its customers and to end-users through its nationwide chain of customer service stations is an important part of Yuchai's customer service program. Yuchai is continually improving its spare parts distribution channel services to maintain its competitive position. Remanufacturing Services Yuchai provides remanufacturing services for and relating to Yuchai's diesel engines and components through its wholly-owned subsidiary, Yuchai Remanufacturing Services (Suzhou) Co., Ltd. (YRC). YRC's factory is located in the Suzhou Industrial Park in Suzhou, Jiangsu Province. New Energy Products Yuchai engages in the development program for new energy products, which include the new generation hybrid engine, full electric power and new energy vehicle (NEV) power systems, including fuel cell systems. Plug in Hybrid Engine The second-generation hybrid engine model, YCHPT II, is designed to address the growing customer demand for advanced hybrid engines. The engine adopts plug-in systems to charge the vehicles' batteries, and it features an upgraded gearbox with an interchangeable 5-speed automatic and manual system. The YCHPS hybrid engine compliant with National VI emission standards is the latest design incorporating the Yuchai gas engine with an ISG generator. The system can be operated in buses with hybrid or full electric operating systems with an external plug-in system. The system is designed for use in seven- to ten- meter coaches and buses. Range Extender Range extender power system combines a traditional diesel engine and an electric power system. Yuchai has launched the range extender power system for both truck and bus applications. Range extender power system is available in the following power ratings and electric power output, including YCY24 engine+65 kW, YCS04 engine+100 kW, YCK05+150 kW, YCA08+200 kW, and YCK11+300 kW. ISG Power Generation Powertrain (YC IE-Power) A highly integrated motor-generator design that incorporates both motion and generation functions. The YC IE-Power directly couples the hybrid and power extender engine drive end for both vehicle motion and battery charging, depending on the vehicle's operation and control. e-CVT Power-Split Hybrid Powertrain (YC e-CVT) A compact design for both truck and bus applications that integrates the vehicle transmission and motor-generator in a single module. The design can achieve improved fuel savings compared to traditional power systems. Integrated Electric Drive Axel Powertrain (YC e-Axel) A compact design integrating driving motor on wheel axle together with motor and vehicle control modules. The YC e-Axel can eliminate transmission loss that is common in traditional designs and save storage space in the chassis. Fuel Cell System (YC FCS) It is a high efficiency fuel cell system for truck and bus applications. The YC FCS fuel cell system with 90 kW design output has been installed on selected OEMs' medium-duty coaches for running and performance testing. The company is also developing a YC FCS fuel cell system with 120kW design output for both truck and bus applications, with a targeted commercial launch later in 2023. The company also commenced in-house development of fuel stack technology that it targets to begin introducing into YC FCS systems in 2024. Disposition As of December 31, 2022, the company had fully disposed of its shareholding interest in Thakral Corporation Ltd (TCL). Sales Yuchai's commercial vehicle engine sales in 2022 were 125,996 units. Yuchai's total engine sales in 2022 were 321,256 units. Light-duty engine sales in 2022 were 94,340 units, or 29.4% of total unit sales. Medium-duty engine sales were 162,018 units, or 50.4% of total unit sales. Heavy-duty engine sales were 58,336 units, or 18.2% of total sales units. In 2022, Yuchai sold approximately 5,352 natural gas engine units. Sales and Marketing Yuchai distributes the majority of its engines directly to auto plants and agents from its primary manufacturing facilities in Yulin City. Yuchai provides a comprehensive range of services to its customers, including dispatching engineers to provide on-site assistance to major customers in the resolution of technical problems. Export Sales Most of Yuchai's products that are exported outside of China are sold indirectly through third party distributors who purchase them from Yuchai and resell them on to end-users in subsequent and separate transactions. Yuchai exports a very small percentage of its products directly outside China. Patents As a result of its research and development efforts, Yuchai had a patents portfolio with nearly 3,000 patents registered in China as of December 31, 2022. The types of patents that Yuchai has registered are invention patents, utility model patents and design patents. The term of patent protection is 10 or 20 years from the filing date depending on the type of patent registered. The HLGE Group As of February 28, 2023, the company had a 48.9% interest in the outstanding ordinary shares of HL Global Enterprises Limited (HLGE). The core businesses of the HLGE group are that of hospitality operations and property development. The HLGE group wholly owns a Copthorne hotel in Cameron Highlands (Malaysia). Copthorne Hotel Cameron Highlands comprises 269 guest rooms and suites. It is the only hotel situated at the highest accessible point of Cameron Highlands, Malaysia. Located next to the hotel, is a Tudor-styled resort, where 66 units have been leased by the hotel from the owners of the resort for use by its guests. The resort comprises self-contained low-rise and high-rise apartment suites and each suite is equipped with a living room, a kitchenette and a balcony. Regulatory and Related Matters Governance, operation and dissolution of Yuchai are governed by the foreign investment law (FIL), the Company Law of the People's Republic of China, which was initially promulgated on December 29, 1993, and other related laws and regulations, as well as by Yuchai's Articles of Association. Yuchai is subject to the relevant PRC labor laws and regulations with respect to labor management, which is overseen by the Ministry of Human Resources and Social Security. History China Yuchai International Limited was founded in 1951. The company was incorporated under the laws of Bermuda in 1993.