China Yuchai International (CYD) investor relations material

Executive summary

• Revenue grew 13.9% year-over-year to RMB 14.7 billion (US$2.2 billion) in H1 2026, with engine unit sales up 10.9% to 277,684, driven by strong truck and off-road segments.

• Net profit attributable to equity holders rose 53.2% to RMB 560.6 million (US$82.3 million), with basic EPS up to RMB 14.94.

• Growth was fueled by higher sales of larger engines, especially in truck, off-road, marine, and power generation markets.

• Acquisition of a 27.97% stake in NYDK secured operational control and supply of key powertrain components, with results consolidated from April 2026.

• Continued investment in R&D and new product launches, including alternative fuel engines and the YC-FRS flywheel range extender system for minibuses.

Financial highlights

• Gross profit increased 36.5% to RMB 2.5 billion ($368.7 million), with gross margin improving to 17.1% from 14.3%.

• Operating profit rose 58.9% to RMB 988.2 million ($145.1 million), with operating margin at 6.7% versus 4.8% last year.

• Net profit attributable to equity holders was RMB 560.6 million ($82.3 million), up 53.2% year-over-year.

• Diluted EPS was RMB 14.8 ($2.17), compared to RMB 9.75 in H1 2025.

• Finance costs decreased 16.0% to RMB 27.0 million due to reduced term loans.

Outlook and guidance

• Full-year AIDC engine sales expected to reach 3,500 units, up from 1,800 units in H1 2026.

• Total high-horsepower engine production capacity increased to 5,000 units, with plans for further expansion through outsourcing and internal investments.

• Continued focus on product innovation, R&D, and expansion into international markets, supported by strong cash position.

• Ongoing launch of innovative products, including the YC-FRS flywheel range extender system.