China Yuchai Announces Dissolution of Vietnam Subsidiary

Rhea-AI Summary

On September 12, 2022, China Yuchai International Limited (NYSE: CYD) announced the dissolution of its subsidiary, Vietnam Yuchai Machinery Services Co., Ltd. This decision stems from a restructuring initiative aimed at optimizing overseas operations. Following this change, sales to the Vietnamese market will now be managed through the headquarters of Guangxi Yuchai Machinery Company Limited (GYMCL). GYMCL, a leading engine manufacturer in China, produced 456,791 engines in 2021, showcasing its significant market presence.

Positive

• Streamlined operations through the dissolution of a subsidiary may enhance overall efficiency.
• Sales to Vietnam will continue seamlessly through GYMCL's headquarters.

Negative

• Dissolution of the Vietnam subsidiary may indicate challenges in the Vietnamese market.
• Potential loss of local market presence in Vietnam could affect future growth.

SINGAPORE, Sept. 12, 2022 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or "the Company"), a leading automotive manufacturer and distributor of engines for on- and off-road applications in China through its main operating subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL"), announced today that its subsidiary, Guangxi Yuchai Machinery Monopoly Development Co., Ltd. has deregistered and ceased operations of the Vietnam Yuchai Machinery Services Co., Ltd. due to the restructuring of the Company's overseas business through resource optimization.  Sales into the Vietnamese market are being conducted through the GYMCL headquarters.

About China Yuchai International

China Yuchai International Limited, through its subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL"), engages in the manufacture, assembly, and sale of a wide variety of light-, medium- and heavy-duty engines for trucks, buses, passenger vehicles, construction equipment, marine and agriculture applications in China.  GYMCL also produces diesel power generators.  The engines produced by GYMCL range from diesel to natural gas and hybrid engines.  Through its regional sales offices and authorized customer service centers, GYMCL distributes its engines directly to auto OEMs and retailers and provides maintenance and retrofitting services throughout China.  Founded in 1951, GYMCL has established a reputable brand name, strong research and development team and significant market share in China with high-quality products and reliable after-sales support.  In 2021, GYMCL sold 456,791 engines and is recognized as a leading manufacturer and distributor of engines in China. For more information, please visit http://www.cyilimited.com.

Safe Harbor Statement:

This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe", "expect", "anticipate", "project", "targets", "optimistic", "confident that", "continue to", "predict", "intend", "aim", "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that may be deemed forward-looking statements. These forward-looking statements including, but not limited to, statements concerning China Yuchai's and the joint venture's operations, financial performance and condition are based on current expectations, beliefs and assumptions which are subject to change at any time. China Yuchai cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors such as government and stock exchange regulations, competition, political, economic and social conditions around the world and in China including those discussed in China Yuchai's Form 20-Fs under the headings "Risk Factors", "Results of Operations" and "Business Overview" and other reports filed with the Securities and Exchange Commission from time to time. Among others, if the COVID-19 pandemic is not effectively and timely controlled, our business operations and financial condition may be materially and adversely affected due to a deteriorating market for automotive sales, an economic slowdown in China and abroad, a potential weakening of the financial condition of our customers, or other factors that we cannot foresee. All forward-looking statements are applicable only as of the date it is made and China Yuchai specifically disclaims any obligation to maintain or update the forward-looking information, whether of the nature contained in this release or otherwise, in the future.

For more information:

Investor Relations

Kevin Theiss

Tel: +1-212-521-4050

Email: cyd@bluefocus.com

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SOURCE China Yuchai International Limited

FAQ

What recent corporate change did China Yuchai (CYD) announce?

China Yuchai announced the dissolution of its subsidiary, Vietnam Yuchai Machinery Services Co., Ltd.

Why did China Yuchai dissolve its Vietnam subsidiary?

The dissolution was part of a restructuring strategy to optimize the Company's overseas operations.

How will China Yuchai continue its sales in Vietnam after the subsidiary's dissolution?

Sales into the Vietnamese market will now be conducted through the GYMCL headquarters.

What is the significance of Guangxi Yuchai Machinery Company Limited in China Yuchai's operations?

GYMCL is the main operating subsidiary, recognized as a leading automotive engine manufacturer in China.

What was the engine production volume of GYMCL in 2021?

In 2021, GYMCL sold 456,791 engines.