China Yuchai International Announces Changes to Joint Venture to Expand Heavy-Duty Diesel and Gas Engine Production in China
SINGAPORE--Oct. 14, 2013: China Yuchai International Limited ("China Yuchai" or the "Company"), announced today changes in the ownership structure of the joint venture entered into by its main operating subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL") and GYMCL's joint venture company, Y&C Engine Co., Ltd. ("Y&C Engine") with Baotou BeiBen Heavy Duty Truck Co., Ltd. ("BeiBen") and Inner Mongolia First Machinery Group Co., Ltd. ("First Machinery Group"), which was announced on June 4, 2013.
Further to discussions between the joint venture parties, the First Machinery Group will exit from the joint venture and be replaced with Baotou Beifang Chuangye Co., Ltd. ("Beifang") in which the First Machinery Group is the single largest shareholder with a 23.62% interest as reported in Beifang's semi-annual report released on August 27, 2013, covering the period January 1, 2013 to June 30, 2013.
Beifang is listed on the Shanghai Stock Exchange and is principally engaged in the research, development, manufacture and sale of railway transportation vehicles. The Company distributes its products domestically in China as well as overseas. As at the end of June 2013, Beifang had net assets of RMB 2.3 billion and net profit of RMB 164 million.
Beifang will hold 15% of the new joint venture entity with the remaining 85% interest held between BeiBen, GYMCL and Y&C Engine.