Related party disclosures

12 Months Ended

Dec. 31, 2020

The ultimate parent

As of December 31, 2020, the controlling shareholder of the Company, HLA, indirectly owned 18,270,965, or 44.7% (2019: 17,059,154, or 41.8%), 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% (2019: 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 21.4% (2019: 18.5%) 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 0.3 million (less than US$0.1

million) (2019: RMB 0.03 million; 2018: RMB 0.03 million) during the financial years ended December 31, 2018, 2019 and 2020 respectively. The transaction relates to consultancy fees charged by HLA.

Entity with significant influence over the Group

As of December 31, 2020, the Yulin City Government through Coomber Investment Ltd. owned 17.2% (2019: 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.


	31.12.2018		31.12.2019		31.12.2020		31.12.2020
	RMB’000		RMB’000		RMB’000		US$’000

Sales of engines and materials
- associates and joint ventures		439,106		912,877		1,256,268		194,129
- GY Group (including its subsidiaries and affiliates)		406,422		1,792,280		2,637,845		407,622
Purchase of material, supplies and engines
- associates and joint ventures		1,192,322		1,999,831		2,792,707		431,553
- GY Group (including its subsidiaries and affiliates)		1,589,638		1,895,239		1,245,030		192,393
Hospitality, restaurant, consultancy and other service income charged to
- a joint venture		3,456		3,984		3,918		605
- GY Group (including its subsidiaries and affiliates)		24,015		15,350		6,765		1,045
Rental income
- a joint venture		1,937		3,206		4,565		705
- GY Group (including its subsidiaries and affiliates)		3,886		2,133		3,970		613
Property management service expenses
- GY Group (including its subsidiaries and affiliates)		26,547		22,595		24,968		3,858
Leasing expenses (i)
- GY Group (including its subsidiaries and affiliates)		25,705		—		—		—
Selling, general and administrative expenses
- a joint venture		—		—		7,287		1,126
- GY Group (including its subsidiaries and affiliates)		21,607		19,953		4,728		731
- HLA (including its affiliates)		6,639		6,788		6,687		1,033
Delivery, storage, distribution and handling expenses
- GY Group (including its subsidiaries and affiliates)		228,195		304,532		312,891		48,351
Payment for trademarks usage fee
- GY Group		—		169,811		—		—
Payment for lease liabilities
- GY Group (including its subsidiaries and affiliates)		—		33,594		18,086		2,795
Purchases of vehicles and machineries
- GY Group (including its subsidiaries and affiliates)		6,144		2,817		2,838		439

Note:

(i)

The Group has adopted IFRS 16 on January 1, 2019. These leasing expenses have been recognized as

right-of-use

assets and lease liabilities on the consolidated statement of financial position as of December 31, 2019

and

2020.

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.

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

Compensation of key management personnel of the Group


	31.12.2018		31.12.2019		31.12.2020		31.12.2020
	RMB’000		RMB’000		RMB’000		US$’000
Short-term employee benefits		39,703		41,606		43,178		6,672
Contribution to defined contribution plans		335		362		292		45

		40,038		41,968		43,470		6,717

The

non-executive

directors do not receive pension entitlements from the Group.