XML 26 R12.htm IDEA: XBRL DOCUMENT v3.21.1
Investment in joint ventures
 12 Months Ended
Dec. 31, 2020
Investments accounted for using equity method [abstract]  
Investment in joint ventures
5
.
Investment in joint ventures
 
 
  
31.12.2018
 
  
31.12.2019
 
  
31.12.2020
 
  
31.12.2020
 
 
  
RMB’000
 
  
RMB’000
 
  
RMB’000
 
  
US$’000
 
Share of profit/(loss) of joint ventures, net of tax:
  
   
  
   
  
   
  
   
Y & C Engine Co., Ltd
  
 
17,612
 
  
 
28,484
 
  
 
(44,016
) 
  
 
(6,802
) 
MTU Yuchai Power Co., Ltd.
  
 
(6,882
) 
  
 
594
 
  
 
3,238
 
  
 
500
 
Eberspaecher Yuchai Exhaust Technology Co., Ltd
  
 
—  
 
  
 
(9,366
) 
  
 
(19,157
) 
  
 
(2,960
) 
Other joint ventures.
  
 
963
 
  
 
(497
) 
  
 
513
 
  
 
79
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
  
 
11,693
 
  
 
19,215
 
  
 
(59,422
) 
  
 
(9,183
) 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
 
  
31.12.2019
 
  
31.12.2020
 
  
31.12.2020
 
 
  
RMB’000
 
  
RMB’000
 
  
US$’000
 
Carrying amount of investments:
  
   
  
   
  
   
Y & C Engine Co., Ltd
  
 
176,082
 
  
 
145,599
 
  
 
22,499
 
MTU Yuchai Power Co., Ltd
  
 
59,931
 
  
 
62,217
 
  
 
9,614
 
Eberspaecher Yuchai Exhaust Technology Co., Ltd
(i
)
  
 
31,794
 
  
 
12,638
 
  
 
1,953
 
Other joint ventures
  
 
6,184
 
  
 
6,666
 
  
 
1,030
 
   
 
 
   
 
 
   
 
 
 
 
  
 
273,991
 
  
 
227,120
 
  
 
35,096
 
   
 
 
   
 
 
   
 
 
 
Note:
 
(i)
Eberspaecher Yuchai was incorporated on December 5, 2018. In March 2019 and December 2019, the Group injected RMB 17.6 million and RMB 23.5 million respectively into Eberspaecher Yuchai as payment of its investment.
The Group has interests in the following joint ventures:
 
Name of company
  
Principal activities
  
Place of
incorporation/
business
 
  
Group’s effective equity
interest
 
 
  
 
  
 
 
  
31.12.2019
 
  
31.12.2020
 
 
  
 
  
 
 
  
%
 
  
%
 
Held by subsidiaries
  
 
  
   
  
   
  
   
     
HL Heritage Sdn. Bhd.
  
Property development and property investment holdings
  
 
Malaysia
 
  
 
30.1
 
  
 
30.1
 
 
 
 
  
Shanghai Hengshan Equatorial Hotel Management Co., Ltd.
  
Hotel and property management
  
 
People’s Republic of China
 
 
 
  
 
24.6
 
  
 
24.6
 
 
 
 
  
Y & C Engine Co., Ltd (“Y&C”)
  
Manufacture and sale of heavy duty diesel engines, spare parts and after-sales services
  
 
People’s Republic of China
 
 
 
  
 
34.4
 
  
 
34.4
 
 
 
 
  
Guangxi Yineng IOT Science & Technology Co., Ltd.
  
Design, development, management and marketing of an electronic operations management platform
  
 
People’s Republic of China
 
 
 
  
 
15.3
 
  
 
15.3
 
 
 
 
  
MTU Yuchai Power Co., Ltd (“MTU Yuchai Power”)
  
Manufacture off-road diesel engines
  
 
People’s Republic of China
 
 
 
  
 
38.2
 
  
 
38.2
 
 
 
 
  
Eberspaecher Yuchai Exhaust Technology Co. Ltd (“Eberspaecher Yuchai”)
  
Application development, production, sales and service on engine exhaust control systems
  
 
People’s Republic of China
 
 
 
  
 
37.4
 
  
 
37.4
 
The Group assess impairment of investments when adverse events or changes in circumstances indicate that the carrying amounts may not be recoverable. If the recoverable amount of investment is below its carrying amount, an impairment charge is recognized. The Group performs evaluation of the value of its investment using a discounted cash flows projection or fair value less cost of disposal where appropriate. The projection will be performed using historical trends as a reference and certain assumptions to project the future streams of cash flows.
In 2019 and 2020, the Group has performed an impairment evaluation of its investments in joint ventures and no impairment was required.
 
 
  
31.12.2018
 
 
  
Y & C
 
 
MTU
Yuchai Power
 
 
Total
 
 
  
RMB’000
 
 
RMB’000
 
 
RMB’000
 
Revenue
  
 
1,443,238
 
 
 
160,580
 
 
 
1,603,818
 
Depreciation and amortization
  
 
(45,254
) 
 
 
(3,744
) 
 
 
(48,998
) 
Interest expense
  
 
(24,605
) 
 
 
(1,689
) 
 
 
(26,294
) 
Profit/(loss) for the year, representing total comprehensive income for the year
  
 
43,359
 
 
 
(4,197
) 
 
 
39,162
 
   
 
 
  
 
 
  
 
 
 
Proportion of the Group’s ownership
  
 
45
% 
 
 
50
% 
 
   
   
 
 
  
 
 
     
Group’s share of profit/(loss)
  
 
19,512
 
 
 
(2,099
) 
 
   
Unrealized profit on transactions with joint venture
  
 
(1,900
) 
 
 
(4,783
) 
 
   
   
 
 
  
 
 
     
Group’s share of profit/(loss) of significant joint ventures
  
 
17,612
 
 
 
(6,882
) 
 
 
10,730
 
   
 
 
  
 
 
     
Group’s share of profit of other joint ventures, representing the Group’s share of total comprehensive income of other joint ventures
  
   
 
   
 
 
963
 
           
 
 
 
Group’s share of profit for the year, representing the Group’s share of total comprehensive income for the year
  
   
 
   
 
 
11,693
 
           
 
 
 
 
  
31.12.2019
 
  
Y & C
 
 
MTU
Yuchai Power
 
 
Eberspaecher
Yuchai
 
 
Total
 
 
  
RMB’000
 
 
RMB’000
 
 
RMB’000
 
 
RMB’000
 
Non-current
assets
  
 
774,046
 
 
 
78,362
 
 
 
24,001
 
 
 
876,409
 
Current assets
  
   
 
   
 
   
 
   
- Cash and bank balances
  
 
164,942
 
 
 
9,265
 
 
 
54,567
 
 
 
228,774
 
- Others
  
 
1,060,805
 
 
 
221,482
 
 
 
7,970
 
 
 
1,290,257
 
   
 
 
  
 
 
  
 
 
  
 
 
 
Total assets
  
 
1,999,793
 
 
 
309,109
 
 
 
86,538
 
 
 
2,395,440
 
   
 
 
  
 
 
  
 
 
  
 
 
 
Non-current
liabilities
  
 
(84,154
) 
 
 
—  
 
 
 
—  
 
 
 
(84,154
) 
Current liabilities
  
   
 
   
 
   
 
   
- Others
  
 
(1,396,116
) 
 
 
(179,680
) 
 
 
(21,651
) 
 
 
(1,597,447
) 
   
 
 
  
 
 
  
 
 
  
 
 
 
Total liabilities
  
 
(1,480,270
) 
 
 
(179,680
) 
 
 
(21,651
) 
 
 
(1,681,601
) 
   
 
 
  
 
 
  
 
 
  
 
 
 
Equity
  
 
519,523
 
 
 
129,429
 
 
 
64,887
 
 
 
713,839
 
   
 
 
  
 
 
  
 
 
  
 
 
 
Proportion of the Group’s ownership
  
 
45
% 
 
 
50
% 
 
 
49
% 
 
   
   
 
 
  
 
 
  
 
 
     
Group’s share of net assets
  
 
233,786
 
 
 
64,714
 
 
 
31,794
 
 
   
Unrealized profit on transactions with joint venture
  
 
(57,704
) 
 
 
(4,783
) 
 
 
—  
 
 
   
   
 
 
  
 
 
  
 
 
     
Carrying amount of significant joint ventures
  
 
176,082
 
 
 
59,931
 
 
 
31,794
 
 
 
267,807
 
   
 
 
  
 
 
  
 
 
     
Carrying amount of other joint ventures
  
   
 
   
 
   
 
 
6,184
 
               
 
 
 
Carrying amount of the investment in joint ventures
  
   
 
   
 
   
 
 
273,991
 
               
 
 
 
  
 
  
31.12.2019
 
 
  
Y & C
 
 
MTU
Yuchai Power
 
 
Eberspaecher
Yuchai
 
 
Total
 
 
  
RMB’000
 
 
RMB’000
 
 
RMB’000
 
 
RMB’000
 
Revenue
  
 
2,404,244
 
 
 
178,796
 
 
 
3,509
 
 
 
2,586,549
 
Depreciation and amortization
  
 
(26,099
) 
 
 
(6,379
) 
 
 
(25
) 
 
 
(32,503
) 
Interest expense
  
 
(29,606
) 
 
 
(5,017
) 
 
 
—  
 
 
 
(34,623
) 
Profit/(loss) for the year, representing total comprehensive income for the year
  
 
44,484
 
 
 
600
 
 
 
(19,114
) 
 
 
25,970
 
   
 
 
  
 
 
  
 
 
  
 
 
 
Proportion of the Group’s ownership
  
 
45
% 
 
 
50
% 
 
 
49
% 
 
   
   
 
 
  
 
 
  
 
 
     
Group’s share of profit/(loss)
  
 
20,018
 
 
 
300
 
 
 
(9,366
) 
 
   
Unrealized profit on transactions with joint venture
  
 
8,466
 
 
 
294
 
 
 
—  
 
 
   
   
 
 
  
 
 
  
 
 
     
Group’s share of profit/(loss) of significant joint ventures
  
 
28,484
 
 
 
594
 
 
 
(9,366
) 
 
 
19,712
 
   
 
 
  
 
 
  
 
 
     
Group’s share of loss of other joint ventures, representing the Group’s share of total comprehensive loss of other joint ventures
  
   
 
   
 
   
 
 
(497
) 
               
 
 
 
Group’s share of profit for the year, representing the Group’s share of total comprehensive income for the year
  
   
 
   
 
   
 
 
19,215
 
               
 
 
 
 
 
  
31.12.2020
 
 
  
Y & C
 
 
MTU
Yuchai Power
 
 
Eberspaecher
Yuchai
 
 
Total
 
 
Total
 
 
  
RMB’000
 
 
RMB’000
 
 
RMB’000
 
 
RMB’000
 
 
US$’000
 
Non-current
assets
  
 
740,423
 
 
 
71,635
 
 
 
45,583
 
 
 
857,641
 
 
 
132,530
 
Current assets
  
   
 
   
 
   
 
   
 
   
- Cash and bank balances
  
 
160,844
 
 
 
43,056
 
 
 
2,273
 
 
 
206,173
 
 
 
31,860
 
- Others
  
 
1,287,935
 
 
 
266,123
 
 
 
43,895
 
 
 
1,597,953
 
 
 
246,929
 
   
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total assets
  
 
2,189,202
 
 
 
380,814
 
 
 
91,751
 
 
 
2,661,767
 
 
 
411,319
 
   
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Non-current
liabilities
  
 
(417,759
) 
 
 
—  
 
 
 
—  
 
 
 
(417,759
) 
 
 
(64,556
) 
Current liabilities
  
   
 
   
 
   
 
   
 
   
- Others
  
 
(1,340,704
) 
 
 
(244,963
) 
 
 
(65,960
) 
 
 
(1,651,627
) 
 
 
(255,223
) 
   
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total liabilities
  
 
(1,758,463
) 
 
 
(244,963
) 
 
 
(65,960
) 
 
 
(2,069,386
) 
 
 
(319,779
) 
   
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Equity
  
 
430,739
 
 
 
135,851
 
 
 
25,791
 
 
 
592,381
 
 
 
91,540
 
   
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Proportion of the Group’s ownership
  
 
45
% 
 
 
50
% 
 
 
49
% 
 
   
 
   
   
 
 
  
 
 
  
 
 
         
Group’s share of net assets
  
 
193,833
 
 
 
67,926
 
 
 
12,638
 
 
   
 
   
Unrealized profit on transactions with joint venture
  
 
(48,234
) 
 
 
(5,709
) 
 
 
—  
 
 
   
 
   
   
 
 
  
 
 
  
 
 
         
Carrying amount of significant joint ventures
  
 
145,599
 
 
 
62,217
 
 
 
12,638
 
 
 
220,454
 
 
 
34,066
 
   
 
 
  
 
 
  
 
 
         
Carrying amount of other joint ventures
  
   
 
   
 
   
 
 
6,666
 
 
 
1,030
 
               
 
 
  
 
 
 
Carrying amount of the investment in joint ventures
  
   
 
   
 
   
 
 
227,120
 
 
 
35,096
 
               
 
 
  
 
 
 
 
 
  
31.12.2020
 
 
  
Y & C
 
 
MTU
Yuchai Power
 
 
Eberspaecher
Yuchai
 
 
Total
 
 
Total
 
 
  
RMB’000
 
 
RMB’000
 
 
RMB’000
 
 
RMB’000
 
 
US$’000
 
Revenue
  
 
3,021,877
 
 
 
307,699
 
 
 
45,966
 
 
 
3,375,542
 
 
 
521,617
 
Depreciation and amortization
  
 
(59,406
) 
 
 
(2,350
) 
 
 
(360
) 
 
 
(62,116
) 
 
 
(9,599
) 
Interest expense, net
  
 
(40,709
) 
 
 
(1,983
) 
 
 
—  
 
 
 
(42,692
) 
 
 
(6,597
) 
Profit/(loss) for the year, representing total comprehensive income for the year
  
 
(88,785
) 
 
 
6,421
 
 
 
(39,095
)
 
 
 
(121,459
) 
 
 
(18,769
) 
   
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Proportion of the Group’s ownership
  
 
45
% 
 
 
50
% 
 
 
49
% 
 
   
 
   
   
 
 
  
 
 
  
 
 
         
Group’s share of profit/(loss)
  
 
(39,953
) 
 
 
3,211
 
 
 
(19,157
) 
 
   
 
   
Unrealized profit on transactions with joint venture
  
 
(4,063
) 
 
 
27
 
 
 
—  
 
 
   
 
   
   
 
 
  
 
 
  
 
 
         
Group’s share of profit/(loss) of significant joint ventures
  
 
(44,016
) 
 
 
3,238
 
 
 
(19,157
) 
 
 
(59,935
) 
 
 
(9,262
) 
   
 
 
  
 
 
  
 
 
         
Group’s share of loss of other joint ventures, representing the Group’s share of total comprehensive loss of other joint ventures
  
   
 
   
 
   
 
 
513
 
 
 
79
 
               
 
 
  
 
 
 
Group’s share of profit for the year, representing the Group’s share of total comprehensive income for the year
  
   
 
   
 
   
 
 
(59,422
) 
 
 
(9,183
) 
               
 
 
  
 
 
 
Note:
As of December 31, 2020, the Group’s share of joint ventures’ capital commitment that are contracted but n
ot paid was
RMB 2.1 million (US$0.3 million)
(2019
: RMB
 81.0 million).
As of December 31, 2020, the Group’s share of outstanding bills receivables discounted with banks for which Y & C retained a recourse obligation totaled RMB 40.1 million (US$6.2 million) (2019: RMB 45.0 million).
As of December 31, 2020, the Group’s share of outstanding bills receivables endorsed to suppliers for which Y & C retained a recourse obligation were RMB 58.4 million (US$9.0 million) (2019: RMB 11.4 million).
Significant restrictions
The nature and extent of significant restrictions on the Group’s ability to use or access assets and settle liabilities of joint ventures are:
The Group’s share of cash and cash equivalents of
RMB 30.4 millio
n (US$4.7 million) (2
019
: RMB 44.8
million
) held in the PRC are subject to local exchange control regulations. These regulations places restriction on the amount of currency being exported other than through dividends, trade and service related transactions.
As of December 31, 2020, the Group’s share of restricted ca
sh of
RMB 65.2 million (US$10.1 million)
(2019
: RMB 60.8 million) which was used as collateral by the banks for the issuance of bills to suppliers.
As of December 31
, 2020
, the Group’s share of bills receivables of
RMB 28.6 million (US$4.4 million)
(2019
: RMB 50.8 million) which was used as collateral by banks for the issuance of bills to suppliers.