Guangxi Yuchai Machinery Group Co., Ltd. Business Report FY ended Dec. 2017

2017 Sales

-On January 7 and 8, 2018, Guangxi Yuchai Machinery Group Co., Ltd. announced a plan to boost its sales target further in 2018 from 380,000 engines, the sales result in 2017 which is already higher than 2016 by more than 15%. For the truck engine market, the company developed more high-end and high-power engines, and its sales in 2017 were up 28.9% compared to the previous year. Its sales of gasoline engines for heavy-duty trucks were up 223.4% compared to last year. In the bus engine market, the company slightly lost market share but retained its lead. Overseas, it sold nearly 50,000 engines. The company’s sales in 2017 exceeded CNY 35 billion, up 13.27% over the same term last year. (From a press release on January 16, 2018)

Contracts

-Xiamen King Long United Automotive Industry celebrated the launch of the second-generation of the Longwei, the Longwei II, on May 18, 2017. The all-new Longwei II is powered by a YC6L330-60 Euro 6 engine supplied by Guangxi Yuchai Machinery Group Co., Ltd.. (From a press release on May 23, 2017)

-Guangxi Yuchai Machinery Group Co., Ltd. recently held a meeting jointly with Dongfeng Liuzhou Motor Co., Ltd., and vehicle distributors in the capital of Ethiopia, Addis Ababa, inviting 16 export companies. At the meeting with a purpose of promoting the sales of the products, the exporters ordered nine 400-horse-power trailers and twelve 340-horse-power dumper trucks in total, all equipped with engines provided by Yuchai Machinery. (From a press release on April 13, 2017)

Awards

-On March 4, 2017, Guangxi Yuchai Machinery Group Co., Ltd. received the 2016 Best Supplier Award from Zhongtong Bus & Holding Co., Ltd. (From a press release on March 6, 2017)

-In February 2017, Guangxi Yuchai Machinery Group Co., Ltd. received the 2016 Excellent Supplier Award from Zhengzhou Yutong Group Co., Ltd. (From a press release on March 1, 2017)

-On January 10, 2017, Guangxi Yuchai Machinery Group Co., Ltd. received the Strategic Partner Award for 2016 from Sichuan Hyundai Motor Company. This is the second time that the company has won this award. (From a press release on January 18, 2017)

-On January 10, 2017, Guangxi Yuchai Machinery Group Co., Ltd. received the Excellent Supplier Award 2016 from Hubei Dayun Automobile Co., Ltd. In 2016, the supplier's sales from business with Hubei Dayun doubled from those in 2015. (From a press release on January 11, 2017)

Strategic Cooperation

-In January 2018, the Company signed a stratgegic cooperation agreement with Xiamen King Long Motor Group Co., Ltd. (King Long). The partners will collaborate in next-generation hybrid power system, fuel cell, and electric drive system. Their co-developed products will be launched in 2019. King Long has products that include hybrid-power vehicles, EVs, fuel cell vehicles, large- and medium buses, light-duty buses, and multiple special vehicles. It sold nearly 50,000 NEV buses during the period from 2014 to 2017. The Company established NEV Power Department in 2016. The department plans development of next-generation hybrid power systems, fuel cell systems, and electric drive systems. In November 2017, the Company signed strategic cooperation agreement with King Long. They will collaborate in product development and marketing. (From news issued on January 11, 2018 and November 15, 2017)

-On February 22, 2017, Yuchai Machinery (Guangxi) Group Co., Ltd. and Shandong Wuzheng Group Co. Ltd. signed a contract to strategically collaborate on areas including research and development of powertrains, engines that meet China VI standards, offroad engines that meet China IV standards, and new energy vehicle components. Shandong Wuzheng is a private company that produces automobiles as well as farm vehicles and equipment. (From news releases issued by multiple sources on February 27, 2017)

R&D facilities

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 is to 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.
Yuchai Dalian Turbocharged Technology R&D center -Established in 2011, the center is to conduct joint research and development activities for large turbochargers used in vessels and automobiles.
National Practice-Education Center

-Established in 2011 with Huazhong University of Science & Technology (HUST).

Guangxi Diesel Engine Engineering Academy

-Established from 2012 to 2015, the Company is solely responsible for the construction.

Prototype production center of Guangxi Yuchai Machinery Co., Ltd.

-Established in 2014, covered 7,000 square meters of land.
-For rapid manufaturing of new products, and the development, experiment and research of new materials, new processes, new technologies and new methods.
-In addtion to the prototype production center, two more workshops are scheduled to be established: one for assembling and one for machining.



-Guangxi Yuchai Machinery Group Co., Ltd. has opened a new R&D center in Europe, Yuchai European R&D Center. The new R&D center is going to technically support Guangxi Yuchai Machinery Group's development of new products by designing, researching, and developing prototype testings for Industry 4.0 intelligent production of engine powertrain, hybrid power, and electric drive systems. (From a press release on October 18, 2017)

-The Company announced that its testing laboratory has passed screening performed by the China National Accreditation Service for Conformity Assessment (CNAS) and had its license renewed for the third time. All screening criteria were met including 11 items that were already approved in the past screening. The company also passed on-site tests for the GB/T 1859.1-2015, which had been revised, as well as for six new test items including the HJ689-2014, and was able to obtain its test reports immediately. (From a press release on January 9, 2017)

Patents

-As of Dec 31, 2016, the Company had more than 2,000 patents in total.

New Product

-On January 8, 2018, Guangxi Yuchai Machinery Group Co., Ltd. released fourteen new engines compliant with China's National VI emission standards to become the first domestic manufacturer to supply a series of engines that meet the China VI emission standard. The fourteen engines include ten diesel and four natural gas engines with a power range from 100 to 650 horsepower. They come with three technological platforms, namely S, K, and Y, six large product platforms, and in eleven products series. The S platform engines address the market for medium- and light-duty engines with models YCS04, YCS06, and YCS04N. The K platform engines cater to the medium- and heavy-duty markets with models YCK05, YCK08, YCK09, YCK11, YCK13, YCK13N, YCK15N, and YCA07N. The Y platform engines are for the light-duty engine market with models YCY20, YCY24, and YCY30. Emissions generated by China’s National VI emission standards engines are much cleaner than those emitted from the engines compliant with the current National V emission standards. Moreover, they are more comfortable, lighter, better looking, more credible and more economical. At the ceremony, the company signed strategic partnership agreements with 22 truck OEMs including Dongfeng Motor and Dongfeng Commercial Vehicle, and eight bus OEMs including Yutong Bus and AUV Bus. Currently, automakers such as Dongfeng Motor, Dongfeng Commercial Vehicle, Liuzhou Motor, Jianghuai Automobile, Yutong Bus and King Long Motor are developing vehicles with China's National VI emission standards engines from Guangxi Yuchai Machinery Group. (From a press release on January 9, 2018)

-Guangxi Yuchai Machinery Group Co., Ltd. announced on November 25, 2017, the production launch of small-displacement diesel engines of three different platforms, namely YC4Y, YC4W, and YC4R, at its subsidiary, Jining Yuchai Engine Company Limited. The features of the YC4Y, YC4W, and YC4R series engines are high power, lightness, high fuel efficiency and superior matching. According to the company, the YC4Y series is suitable for light-duty buses while the YC4W series fits for passenger vehicles, vessels, and specialty vehicles. (From a press release on November 30, 2017)

-On January 10, 2017, Guangxi Yuchai Machinery Group Co., Ltd. received the Strategic Partner Award for 2016 from Sichuan Hyundai Motor Company. This is the second time that the company has won this award. (From a press release on January 18, 2017)