China Yuchai International Limited (CYD.US) reports a decline in revenue and profits in the second half of 2024, despite an increase in engine sales.

China Yuchai International Limited (CYD.US) recently announced its financial performance for the second half of 2024. The data shows that the company's revenue for the second half of 2024 was RMB 8.8 billion (approximately USD 1.2 billion), slightly lower than the RMB 8.9 billion in the second half of 2023. In terms of profit, the profit for the second half of 2024 was RMB 155.1 million (approximately USD 21.6 million), a decrease from RMB 169.8 million in the second half of 2023. Basic and diluted earnings per share were RMB 2.19 (approximately USD 0.30), compared to RMB 2.62 in the second half of 2023. Despite the decrease in profit, China Yuchai International Limited saw a significant increase in engine sales. In the second half of 2024, the company's total engine sales reached 163,843 units, an increase of 10.9% from the 147,700 units in the second half of 2023. This growth was mainly attributed to increased sales in the truck, bus, industrial and marine, and power generation markets. According to the China Association of Automobile Manufacturers (CAAM) report, although the sales of commercial vehicles (excluding gasoline and electric vehicles) decreased by 9.9% compared to the second half of 2023, the sales of truck and bus engines performed better. In terms of gross profit, China Yuchai International Limited saw a 14.3% increase in the second half of 2024, reaching RMB 1.4 billion (approximately USD 1.957 billion), compared to RMB 1.2 billion in the second half of 2023. The main reasons for the growth were an increase in unit sales and a decrease in material costs. The overall gross profit margin for the second half of 2024 was 15.9%, compared to 13.9% in the second half of 2023. Other operating income also increased, rising by 31.2% in the second half of 2024 to RMB 4.015 billion (approximately USD 559 million), compared to RMB 3.062 billion in the second half of 2023. The main reasons for the growth were an increase in government subsidies, an increase in value-added tax refunds, and the recognition of technology license fees. In terms of research and development (R&D) expenses, there was a 25.6% increase in the second half of 2024 to RMB 5.911 billion (approximately USD 822 million), compared to RMB 4.705 billion in the second half of 2023. Due to an increase in mold costs and impairment of discontinued R&D projects, the total R&D expenditure (including capitalized costs) was RMB 7.26 billion (approximately USD 1.01 billion), accounting for 8.2% of revenue in the second half of 2024, compared to RMB 5.992 billion, accounting for 6.8% of revenue in the second half of 2023. Sales, general and administrative expenses (SG&A) also increased, rising by 25.1% in the second half of 2024 to RMB 1.1 billion (approximately USD 147 million), compared to RMB 8.446 billion in the second half of 2023. This growth was mainly due to an increase in trade receivables allowances, travel, personnel, and sales expenses compared to the same period last year. In the second half of 2024, SG&A expenses accounted for 12.0% of revenue, compared to 9.5% in the second half of 2023.