Financial Overview

- The Company reached sales of 42.92 billion yuan in 2011, with an increase of 15.86 percent compared with 2010's result. In 2011, the Company sold 716,900 engines and 8,527 sets of engineering machinery.
- The Company posted sales of 36.8 billion yuan in 2010, a rise of 35.45 percent compared with the previous year's result. During the term, the Company sold 749,671 engines, representing an increase of 11.13 percent year-on-year. (From a press release, January 10, 2011)

Orders

Domestic market
-The Hubei office of the Company and the Hubei Management Department of Dongfeng Commercial Vehicle jointly held a ceremony to present a new heavy-duty truck and celebrate its first delivery. In addition to giving a presentation on major features, maintenance methods and related services of the YC6M, YC6J, and YC4E engines,  the Company also introduced the soon-to-be-released YC6MK engine. Dongfeng Commercial Vehicle explained about the Dalishen and the D530 trucks, including their sales plans and automobile loans. Approximately 100 people from local distribution companies and other businesses attended the ceremony, during which 6 orders were placed for the Dalishen using the YC6M engine and 5 orders were placed for the D530 with the YC6M engines. Yuchai Machinery was able to highlight the lightweight design technology and high fuel efficiency of its large engines, which is expected to have a significant effect on its sales. (From a press release, April 1, 2012) 

-March 21, 2012, 40 school buses installed with diesel engines manufactured by the Company started operations in Zhongwei, Ningxia. Prior to the operation launch, Weichai gave instruction on use and maintenance of the electronically-controlled engine to bus drivers. It also provided training focused on the electronic control technology to local service centers. Engine parts and repair services are available at dealers, which are working on improving their after-sale services. (From a press release, March 28, 2012)

Overseas market
-Twenty-seven Huanghe shaoshuai trucks built by China National Heavy Duty Truck reached Egypt on December 23, 2012. The trucks were delivered to Ghabbour Auto (GB Auto), Egypt’s second largest company in the truck and bus import business. Out of 19 heavy-duty trucks and 8 medium-duty trucks, 7 medium-duty trucks are equipped with Yuchai-brand engines. Of these, 3 trucks use YC6J190-20 engines, another 3 employ YC6J220-33 engines, and the remaining 1 truck features YC4E160-33 engine. For Yuchai Machinery (Guangxi) and China National Heavy Duty Truck, which had been making joint efforts to sell their products to GB Auto since March 2012, this is the first program they won from the Egyptian company. Previously, GB Auto had been importing vehicles mainly from Japan and Korea, but it has recently been increasing imports of China-made vehicles as well. (From a press release, December 26, 2012) 

-As of October, the Company has exported more than 3,000 engines to Saudi Arabia since the beginning of this year. The volume already exceeded the yearly shipment record to the country by more than 1,000 units. The company has already produced an aggregate total of 10,000 bus engines buoyed by strong demand. Out of the 150 public buses put on the Saudi Arabian market, 100 buses are equipped with Yuchai engines. When it comes to school buses, over 80 percent use Yuchai engines. The company says its share of the bus engine market in Saudi Arabia has reached 30 percent. (From a press release October 29, 2012) 

-Guangxi Yuchai Machinery, a subsidiary of the Company, exhibited four types of engines at the China Guangxi Products Exhibition held in Yangon in March 2012. During the exhibition, the company won supply agreements worth 4 million US dollars from local companies in Myanmar. The company ’s display booth was visited by senior officials, including the Minister for Commerce, U Win Myint, who expressed his intention to visit the company, possibly by December, in order to discuss their future business collaboration. In August 2010, Guangxi Yuchai Machinery established a sales office in Myanmar, expecting a great potential in the Myanmar economy. It has since been working vigorously to expand its sales network in the country. The company, which exported 29 engines in 2010, increased the number to 644 in 2011. If the growth trend continues, exports are projected to exceed 1,500 in 2012, making Myanmar the fastest growing market for the company. (From a press release, April 8, 2012)

-Twenty buses manufactured by Yangzijiang Dongfeng Automobile (Wuhan) Co., Ltd. and are equipped with Yuchai Machinery’s YC6M340N engines were shipped to Thailand on March 26, 2012. It is the first time for Yangzijiang Dongfeng Automobile (Wuhan) to export its products. (From a press release, March 28, 2012)
 

New facilities and production lines

-On December 17, 2012, CSR Yuchai Nanjun Engine Co., Ltd., which is a subsidiary of the Company, held a groundbreaking ceremony for its new facility in Ziyang City, Sichuan Province to produce components for medium- and high-speed engines. Involving an investment of 620 million yuan, the construction project will be carried out in three phases. Te facility will be capable of making parts for 200,000 high-speed engines and 800 medium-speed engines a year. The plant will hire more than 3,000 people, aiming to generate 2 billion yuan in sales a year. The new production base is expected to play a vital role in promoting the development of the auto industry in western China. (From a press release, December 24, 2012)

-Jining Yuchai Engine Co., Ltd., a subsidiary of the Company., held a groundbreaking ceremony for its new production facility at the Jining High-tech Development Zone in Shandong Province on November 19, 2012. The new plant will produce 4D20and YC4W diesel engines. (From a press release, November 20, 2012)

-Shangdong Binzhou Bohai Piston Co.,Ltd. built a production line especially designed for the needs of  the Company, holding a ceremony to celebrate the launch of operations. The dedicated production line makes it possible for the two companies, which have had a cooperative relationship for many years, to develop products, manage quality control, control costs, and respond to after-service needs all at the same time. As a result, their commercial alliance is expected to grow even stronger. (From a November 2, 2012 press release) 

-The Company is going to invest 990 million yuan to establish a parts production facility. The construction project gained an approval of the Guangxi Province authority at a 2012 project screening conducted by the province. The new plant will be built on 250,000 square meters of land near the Yuchai Industrial Park. It will have the capacity to produce 1.4 million crankshafts for light-, medium- and heavy-duty vehicles and passenger vehicles, 40,000 tons of casting parts such as cylinder blocks and heads, and 1.6 million stamping parts and welded components a year. (From a press release, April 27, 2012) 

Strategic Alliance
-Guangxi Yuchai Machinery, a subsidiary of the Company, signed an strategic agreement and an investment project for the YC4W passenger vehicle diesel engines with the Jining City and the Jining Hi-Tech Industry Development Zone of Shandong Province on September 17, 2012. Guangxi Yuchai Machinery already established Jining Yuchai engine Co., Ltd. at the Jining Hi-Tech Industry Development Zone, which is now constructing a production facility for the 4D20 diesel engines, planning operation launch by the end of this year. The company is intending to further its collaboration with Jilin City by expanding the cooperative areas into production, product development, sales and fostering of human resources. (From a press release, September 17, 2012)

-The Company is going to absorb Hubei Dali Special Automobile Manufacturing Co., Ltd. and Suizhou Dongte Automobile Co., Ltd. into its own operations. The three companies signed an agreement on the project on April 17, 2012. By integrating the two companies’ manufacturing technologies and sales experiences with its competitive brand image, wide service network, and financial power, the Yuchai Group is intending to step up its special vehicle business to expand its territory. The two companies to be absorbed are located in Suizhou, Hubei Province where many special vehicle manufactures are operating. (From a press release, April 18, 2012)   

Reorganization of subsidiary

-Huayuan Filtration System Co., Ltd., which is a subsidiary of Yuchai Machinery (Guangxi), has reorganized its operations, changing its name to Huayuan Filtration System Joint Stock Co., Ltd. The company held an opening ceremony and a first board meeting on December 18, 2012. The subsidiary was originally established in 2001 under the name of Yuchai Huayuan Machinery Co., Ltd. (Yulin). It produces oil filters, fuel filters and air filters for diesel engines. Sales during the period between January and November 2012  reached 290 million yuan, increasing 4.3 percent from the result in the same term last year. (From a press release, December 18, 2012)

 

Award

-The Company announced that it has been awarded the Best Supplier Award from Dongfeng Commercial Vehicle Company. The company is supplying diesel engines for vehicles such as the Kingrun, the Kinland, and the T-Lift. (From a press release, December 7, 2012)

R&D facility

Facility	Overview
Guangxi Yuchai Engineering Research Institute	- Established in 2007, this research institute conducts its development activities in four divisions: Product engineering division; Electronic control technology division; Test engineering division,  and Technology management division. -The focus of its development activities is on engineering technology as practical business solutions to reduce emissions, and developing diesel engines for passenger vehicles.
Combustion engines Union testing Laboratory	-Established in 2009, the new testing laboratory will conduct research and development on combustion technology for diesel engines; along with R&D activities on automotive noise, vibration, and harshness; and on intake systems.
R&D center	-Established in 2011, the center is to conduct joint research and development activities for large turbochargers used in vessels and automobiles.
Practice-Education center	-Established in 2011 with Huazhong University of Science & Technology (HUST)

Technological Alliance

-The Company announced that it will establish Guangxi Diesel Engine Engineering Academy based on an agreement with the Guangxi Zhuang Autonomous Region. At the Science and Technology Innovation Meeting held by the government of the Guangxi Zhuang Autonomous Region on September 29, the government gave approvals to a number of academy projects planned by various industries. Grant money were offered to each award winners. The construction project at Yuchai Machinery (Guangxi) will be joined by its subsidiaries and affiliates. The company is going to spend three years for the program, while investing 80 million with the aim of ensuring a significant presence in the market in developing innovative diesel engine technology and fostering excellent human resources. Some of its goals by 2015 include becoming one of China’s most advanced research and development facility, and one of the world’s top five companies in terms of R&D capabilities. It also aims to file 150 patent applications, develop 30 new products and produce products worth 5 billion yuan a year. The number of R&D staff will be increased to 700, which will include 3 post docs, 5 doctoral-level researchers, and 30 with master’s degrees. Furthermore, by 2020, the company intends to become one of the world’s top three companies in R&D, while filing 300 patent applications, developing 50 new products, and producing products worth 10 billion yuan a year. Number of researchers will be raised to 1,000, which will include 5 post docs, 10 doctoral-level researchers, and 60 with master’s degrees. (From a press release, October 9, 2012)

-The Company and the Beijing Institute of Technology (BIT) discussed an industry-academia alliance, and agreed to make mutual visits, promote intercommunications, and conduct joint-development projects. BIT, one of China’s major universities of strategic importance, has a large presence in the area of developing human resources for defense technology as well as arms and weapons engineering. It is also one of China’s most advanced institutes in the field of diesel engine power testing and applied technology, being equipped with fatigue testing technology for cylinder heads and highland testing devices. Yuchai is poised to invite personnel from BIT to nurture them as its special labor pool. (From a press release, May 27, 2012)

New products

-On December 27, 2012, the Company announced its 7 new natural gas engines compliant with the China V emissions standard as well as 5 new diesel engines compliant with the China lV standard. All the intellectual property rights associated with these engines are owned by the company. The new natural gas engines are the YC4DN-50, YC4GN-50, YC6JN-50, YC6GN-50, YC6LN-50, YC6MKN-50 and the YC6KN-50 whose power levels ranging from 120 to 440 horsepower. The new diesel engine lineup include the YC4S with an entirely new platform, the YC4EG and the YC6A-45 that are improved versions of existing engines, and the YC6J-46 and YC6A-46 engines for trucks. The company was quick in preparing new offerings in order to comply with soon to be introduced new regulations for 2013, which require natural gas engine vehicles to meet the China V standard, while requiring diesel engine vehicles to satisfy the China lV standard. (From a press release, December 27, 2012)

-Yuchai United Power Co., Ltd., a subsidiary of the Company, and C & C Truck announced the K12 heavy-duty truck and its 6K12 engine in September 2012. The K12 truck compliant with the European emission standard offers a high level of safety features, low emission, and a stylish feel. The engine was developed by AVL, which had also engineered the DD13/15 engine for the Benz. In addition to presenting the new technology, the two companies announced a warranty package for vehicles equipped with the 6K series engines, which covers 36 months without any travel range limit. They also introduced a check-up service for every 20,000 kilometers of mileage. By adding such services to its products, Yuchai is intending to enhance its presence in the market. (From a press release, September 17, 2012) 

Major investment projects

-On December 17, 2012, CSR Yuchai Nanjun Engine Co., Ltd., which is a subsidiary of the Company, held a groundbreaking ceremony for its new facility in Ziyang City, Sichuan Province to produce components for medium- and high-speed engines. Involving an investment of 620 million yuan, the construction project will be carried out in three phases. Te facility will be capable of making parts for 200,000 high-speed engines and 800 medium-speed engines a year. The plant will hire more than 3,000 people, aiming to generate 2 billion yuan in sales a year. The new production base is expected to play a vital role in promoting the development of the auto industry in western China. (From a press release, December 24, 2012)

-Yuchai Machinery (Guangxi) Group Co., Ltd. announced that it will establish Guangxi Diesel Engine Engineering Academy. The construction project at Yuchai Machinery (Guangxi) will be joined by its subsidiaries and affiliates. The company is going to spend three years for the program, while investing 80 million with the aim of ensuring a significant presence in the market in developing innovative diesel engine technology and fostering excellent human resources. (From a press release, October 9, 2012)

-Yuchai Machinery (Guangxi) Group Co., Ltd. is going to invest 990 million yuan to establish a parts production facility. The new plant will be built on 250,000 square meters of land near the Yuchai Industrial Park. It will have the capacity to produce 1.4 million crankshafts for light-, medium- and heavy-duty vehicles and passenger vehicles, 40,000 tons of casting parts such as cylinder blocks and heads, and 1.6 million stamping parts and welded components a year. (From a press release, April 27, 2012)