China Yuchai Forms Strategic Partnership with Sunlong Bus to Develop Electric Vehicles

Rhea-AI Summary

China Yuchai International Limited (NYSE: CYD) has entered a strategic partnership with Guangxi Shenlong Automobile Manufacturing to develop new energy vehicles. This collaboration focuses on integrating Yuchai's advanced powertrain systems, including the ISG power generation and e-CVT hybrid systems, to enhance product offerings. The partnership aims to utilize both companies' supply chains, particularly targeting growth in southeast Asian markets. Yuchai’s established presence in supplying various energy systems has already seen success with recent deliveries of new energy buses to local transit operators.

Positive

• Strategic partnership with Sunlong to develop new energy vehicles.
• Access to Sunlong's supply chain and distribution networks.
• Initial success with delivery of new energy buses featuring Yuchai's powertrains.

Negative

• None.

SINGAPORE, June 2, 2021 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company") announced today it has entered into a strategic partnership agreement with an electric vehicle ("EV") bus producer in China, Guangxi Shenlong Automobile Manufacturing ("Sunlong").

According to the strategic partnership agreement, China Yuchai and Sunlong will join technologies to develop new energy vehicles based upon China Yuchai's four new energy powertrain systems including the ISG power generation powertrain ("YC IE-Power"), e-CVT power-split hybrid powertrain ("YC e-CVT"), integrated electric drive axel powertrain ("YC e-Axel"), and a fuel cell system ("YC FCS").  In addition to product development, China Yuchai and Sunlong will leverage each other's supply chains and distribution networks, especially in international markets, with a focus on entering into the southeast Asian markets.

Headquartered in Nanning, Guangxi Province, Sunlong specializes in new energy buses, and logistical vehicle development and production in southern China.  In the past, China Yuchai has supplied its electric direct drive system, hybrid system and Nat VI-compliant CNG natural gas engine to Sunlong for its vehicles sold in southern and western China.  In April 2021, the first batch of Sunlong buses featuring China Yuchai's new energy powertrain systems was successfully delivered to the Nanning local public transit operator.

Mr. Weng Ming Hoh, President of China Yuchai, commented, "We are excited to ink this important strategic partnership with Sunlong and make further inroads into the fast-growing new energy vehicle market in China and abroad."

About China Yuchai International

China Yuchai International Limited, through its subsidiary, 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 2020, GYMCL sold 430,320 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 is the strategic partnership between China Yuchai and Sunlong about?

It's focused on developing new energy vehicles by integrating China Yuchai's advanced powertrain systems.

When was the partnership between China Yuchai and Sunlong announced?

The partnership was announced on June 2, 2021.

What technologies will be developed under the China Yuchai and Sunlong partnership?

They will develop technologies based on Yuchai's power generation and hybrid powertrain systems, among others.

How does the partnership benefit China Yuchai in terms of market reach?

It leverages Sunlong's supply chains to enter southeast Asian markets.

What previous collaborations exist between China Yuchai and Sunlong?

China Yuchai has supplied Sunlong with various energy systems, including electric and hybrid systems, for buses.