29.

Related party disclosures

The ultimate parent

As of December 31, 2018, the controlling shareholder of the Company, HLA, indirectly owned 17,059,154, or 41.8% (2017: 16,360,845, or 40.0%), of the ordinary shares in the capital of the Company, as well as a special share that entitles it to elect a majority of directors of the Company. HLA controls the Company through its wholly-owned subsidiary, HLC, and through HLT, a wholly-owned subsidiary of HLC. HLT owns approximately 23.3% (2017: 23.3%) of the ordinary shares in the capital of the Company and is, and has since August 2002 been, the registered holder of the special share. HLA also owns, through another wholly-owned subsidiary, Well Summit Investments Limited, approximately 18.5% (2017: 16.7%) of the ordinary shares in the capital of the Company. HLA is a member of the Hong Leong Investment Holdings Pte. Ltd., or Hong Leong Investment group of companies. Prior to August 2002, the Company was controlled by Diesel Machinery (BVI) Limited, which, until its dissolution, was a holding company controlled by HLC and was the prior owner of the special share. Through HLT’s stock ownership and the rights accorded to the special share under Bye-Laws of the Company and various agreements among shareholders, HLA is able to effectively approve and effect most corporate transactions.

There were transactions other than dividends paid, between the Group and HLA of RMB 0.03 million (US$0.01 million) during the financial years ended December 31, 2016, 2017 and 2018 respectively. The transaction relates to consultancy fees charged by HLA.

Entity with significant influence over the Group

As of December 31, 2018, the Yulin City Government through Coomber Investment Ltd. owned 17.2% (2017: 17.2%) of the ordinary shares in the capital of the Company.

The following provides the significant transactions that have been entered into with related parties for the relevant financial year.


	31.12.2016		31.12.2017		31.12.2018		31.12.2018
	RMB’000		RMB’000		RMB’000		US$’000

			(Restated)

Sales of engines and materials
- associates and joint ventures		219,724		412,591		439,106		65,635
- SHC (including its subsidiaries and affiliates)		447,509		455,061		406,422		60,750
Purchase of material, supplies and engines
- associates and joint ventures		308,610		914,211		1,192,322		178,222
- SHC (including its subsidiaries and affiliates)		1,028,358		1,221,421		1,589,638		237,610
Purchase of service
- a joint venture		2,121		2,543		—		—
Hospitality, restaurant, consultancy and other service income charged to
- a joint venture		—		14,241		3,456		517
- SHC (including its subsidiaries and affiliates)		13,634		25,728		24,015		3,590
Rental income
- SHC (including its subsidiaries and affiliates)		5,454		4,483		3,886		581
- a joint venture		—		—		1,937		290
Property management service expenses
- an associates		20,976		—		—		—
- SHC (including its subsidiaries and affiliates)		—		22,212		26,547		3,968
Leasing expenses
- SHC (including its subsidiaries and affiliates)		4,715		8,676		25,705		3,842
General and administrative expenses
- SHC (including its subsidiaries and affiliates)		14,309		20,215		21,607		3,230
- HLA (including its affiliates)		6,887		6,913		6,639		992
Delivery, storage, distribution and handling expenses
- SHC (including its subsidiaries and affiliates)		193,258		210,406		228,195		34,109
Purchases of vehicles and machineries
- SHC (including its subsidiaries and affiliates)		—		52,443		6,144		918
Purchases of additional shareholding in a subsidiary from
- SHC (including its subsidiaries and affiliates) ⁽ⁱ⁾		—		1,335		—		—
Disposal of shareholding in an associate to
- SHC (including its subsidiaries and affiliates) ⁽ⁱⁱ⁾		—		1,833		—		—

Note:

⁽ⁱ⁾

In June 2017, GYAMC acquired 25% of equity interest in Crankshaft from State Holding Company with a purchase consideration of RMB 1.3 million.

⁽ⁱⁱ⁾

In August 2017, YEMC disposed its 30% equity interest in Property Management to State Holding Company for a consideration of RMB 1.9 million.

In addition to the above, Yuchai also entered into transactions with other PRC Government owned enterprises. Management considers that these transactions were entered into in the normal course of business and expects that these transactions will continue on normal commercial terms. Balances with other PRC entities are excluded from this caption.

The transactions with related parties are made at terms agreed between the parties.

Compensation of key management personnel of the Group


	31.12.2016		31.12.2017		31.12.2018		31.12.2018
	RMB’000		RMB’000		RMB’000		US$’000

Short-term employee benefits		31,975		40,831		39,703		5,935
Contribution to defined contribution plans		415		385		335		50
Cost of share-based payment		4,387		1,294		—		—

		36,777		42,510		40,038		5,985

The non-executive directors do not receive pension entitlements from the Group.