China Yuchai International Limited Q2 FY2024 earnings call

• Revenue, operating profits, and earnings to shareholders increased in the first half of 2024 compared to the same period in 2023. - Sales grew by 12.4% with a 16.3% increase in unit sales year-over-year, with growth in every market category except pickups. - Achieved growth in truck and bus engine sales, heavy-duty, medium-duty, and light-duty truck engine sales, and bus engine sales across segments. - Off-road engine sales had a 6.4% year-on-year growth. - New energy product unit sales grew by 19.9%. - R&D expenditure in the first half of 2024 was RMB463.2 million (US$65 million), continuing to improve engine quality and develop next-generation emission-standard engines and new energy products. - Implemented equity incentive plans for subsidiaries to align interests. - Adopted a share buyback plan up to US$20 million or 4 million shares and declared a cash dividend of US$0.38 for ordinary shares.

In the first half of 2024, China Yuchai International Limited saw revenue of RMB10.3 billion (US$1.4 billion) compared to RMB9.2 billion in the first half of 2023. The total number of engines sold increased by 16.3% to 192,743 units. Truck and bus engine combined unit sales grew by 32.8% year-over-year. Truck engine sales in the important truck market grew by 35.6% year-over-year. Heavy-duty truck engine sales grew by 32.9% year-over-year, medium-duty truck engine sales by 33.1%, light-duty truck engines by 45.6%. Bus engine sales in heavy, medium, light and light duty market segments witnessed year-over-year growth of 40.3%, 32% and 28.2% respectively. Engine sales in off-road markets exceeded 104,000 units for the first half, a 6.4% year-on-year growth. Marine and generator engine unit sales increased by 5.3%. New energy product unit sales grew by 19.9% year-over-year. Revenue contribution percentages aren't explicitly stated in absolute terms but the sales growth across segments is highlighted.

• The company adopted a share buyback plan whereby it may repurchase its ordinary shares up to US$20 million amount or 4 million in number whichever occurs first. - Declared a cash dividend of US$0.38 for ordinary shares for shareholders off-record as of August 19, 2024, to be paid on August 28, 2024.

• Forward-looking statements involve risk and uncertainties due to factors such as government and stock exchange regulations, competition, political and economic and social conditions around the world and in China, as detailed in the company's Form 20Fs and other reports filed with the Securities and Exchange Commission.

Q: How much is your 2024 capital expenditures? And in which products or areas are you investing?

A: In 2024, investing in power generation (due to strong demand for standby power generation for data centers), wind turbine main shaft (a new area), and new energy cell.

Q: How many of the shares has the company purchased under the buyback plan that was announced in June?

A: We have purchased more than half of our target, so close to about 2.7 million.