China Yuchai Announces Unaudited Results for Second Quarter of 2009
2009-08-17 Source：english.chinabuses.com
English.chinabuses.com: China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company"), announced today its unaudited consolidated financial results for the second quarter ended June 30, 2009. As the financial results for the second quarter of 2008 were not announced, comparative results are not included below.
Net revenues for the second quarter of 2009 were RMB 3,448.0 million (US$ 504.7 million) representing a 17.9% increase compared with net revenues of RMB 2,924.1 million (US$ 427.8 million) in the first quarter of 2009. The total number of diesel engines sold by the Company's main operating subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL"), during the second quarter of 2009 was 129,932 units, an increase of 8,183 units over 121,749 units in the first quarter of 2009.
The higher sales volume primarily reflected growth in China's gross domestic product of 7.9% in the second quarter of 2009 according to the National Bureau of Statistics of China and the effects of the Chinese Government's stimulus measures to spur the automotive market.
Gross profit was RMB 480.2 million (US$ 70.3 million) in the second quarter of 2009, a 25.2% increase over gross profit of RMB 383.4 million (US$ 56.1 million) in the first quarter of 2009. The gross margin was 13.9%, a 0.8% improvement over the gross margin of 13.1% for the first quarter of 2009. The higher gross margin reflected the growth in unit sales combined with higher proportion of more profitable heavy duty engines sold.
Research and development ("R & D") expenses were RMB 71.1 million (US$ 10.4 million) compared with RMB 56.1 million (US$ 8.2 million) in the first quarter of 2009. As a percentage of net revenues, R & D spending was 1.9% of net revenue in the first quarter and 2.1% in the second quarter of 2009. The higher R & D spending was for continuing engine upgrades including meeting evolving emissions standards such as the development of National V compliant diesel engines and alternative fuel technologies.
Selling, general & administrative expenses ("SG & A") in the second quarter of 2009 were RMB 283.1 million (US$ 41.4 million) versus RMB 225.8 million (US$ 33.0 million) in the first quarter of 2009. The increase in SG & A expenditures was mainly due to the increases in unit sales, salary costs, incentives provision made by GYMCL during the second quarter of 2009 based on production volume and additional employee welfare contributions and pensions.
Other income of RMB 1.4 million (US$ 0.2 million) for the second quarter of 2009 was lower than the first quarter of 2009 of RMB 36.0 million (US$ 5.3 million) because the income gained from interest for the second quarter of 2009 was offset by unrealized foreign exchange loss due to revaluation of the outstanding foreign currency loans.
Net income was RMB 49.6 million (US$ 7.3 million), or earnings per share of RMB 1.33 (US$ 0.19) in the second quarter of 2009 compared with RMB 234.4 million (US$ 34.3 million), or earnings per share of RMB 6.29 (US$ 0.92) in the first quarter of 2009. Net income in the first quarter of 2009 excluding the one-time gain associated with the acquisition of all the outstanding share capital of Guangxi Yulin Hotel Company Ltd ("Yulin Hotel Company") would have been RMB 79.3 million (US$ 11.6 million), or earnings per share of RMB 2.13 (US$ 0.31). As of June 30, 2009, a total of 37,267,673 shares were issued and outstanding.
For the six months ended June 30, 2009, net revenues were RMB 6,372.1 million (US$ 932.7 million). The gross profit was RMB 863.6 million (US$ 126.4 million) representing a 13.6% gross margin. Operating income was RMB 430.5 million (US$ 63.0 million) which included a one-time write-back of approximately RMB 203.0 million (US$ 29.7 million) in the first quarter of 2009 resulting from GYMCL's acquisition of Yulin Hotel Company.
Net income for the six months ended June 30, 2009 was RMB 284.0 million (US$ 41.6 million), or earnings per share of RMB 7.62 (US$ 1.12). Excluding the gain from the acquisition of Yulin Hotel Company, net income would have been RMB 128.9 million (US$ 18.9 million), or earnings per share of RMB 3.46 (US$ 0.51).
Mr. Boo Guan Saw, President of China Yuchai, commented, "I am excited to take on the role of President of China Yuchai and look forward to working closely with the management teams of the Company and GYMCL to grow the business even in these uncertain economic times and continue to build value for shareholders in the future."
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