The ultimate parent

As of December 31, 2021, the controlling shareholder of the Company, HLA, indirectly owned 18,270,965, or 44.7% (2020: 18,270,965, or 44.7%), 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% (2020: 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% (2020: 21.4%) 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 0.5 million (less than US$ 0.1 million) (2020: RMB 0.03 million; 2019: RMB 0.03 million) during the financial years ended December 31, 2019, 2020 and 2021 respectively. The transaction relates to consultancy fees charged by HLA.

Entity with significant influence over the Group

As of December 31, 2021, the Yulin City Government through Coomber Investment Ltd. owned 17.2% (2020: 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.


	31.12.2019		31.12.2020		31.12.2021		31.12.2021
	RMB’000		RMB’000		RMB’000		US$’000
Sales of engines and materials
- associates and joint ventures		912,877		1,256,268		393,440		62,232
- GY Group (including its subsidiaries and affiliates)		1,792,280		2,637,845		3,223,785		509,915
Purchase of material, supplies and engines
- associates and joint ventures		1,999,831		2,792,707		2,036,675		322,146
- GY Group (including its subsidiaries and affiliates)		1,895,239		1,245,030		1,307,137		206,754
Hospitality, restaurant, consultancy and other service income charged to
- a joint venture		3,984		3,918		2,152		340
- GY Group (including its subsidiaries and affiliates)		15,350		6,765		6,609		1,045
Service charge charged by
- joint ventures		—		—		5,023		795
Rental income
- joint ventures		3,206		4,565		4,415		698
- GY Group (including its subsidiaries and affiliates)		2,133		3,970		275		43
Property management service expenses
- GY Group (including its subsidiaries and affiliates)		22,595		24,968		21,978		3,476
Selling, general and administrative expenses
- a joint venture		—		7,287		2,530		400
- GY Group (including its subsidiaries and affiliates)		19,953		4,728		9,315		1,473
- HLA (including its affiliates)		6,788		6,687		7,188		1,137
Delivery, storage, distribution and handling expenses
- GY Group (including its subsidiaries and affiliates)		304,532		312,891		300,699		47,562
Payment for trademarks usage fee
- GY Group		169,811		—		—		—
Payment for lease liabilities
- GY Group (including its subsidiaries and affiliates)		33,594		18,086		17,215		2,723
Purchases of vehicles and machineries
- GY Group (including its subsidiaries and affiliates)		2,817		2,838		3,460		547

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, 2020 and 2021.

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


	31.12.2019		31.12.2020		31.12.2021		31.12.2021
	RMB’000		RMB’000		RMB’000		US$’000
Short-term employee benefits		41,606		43,178		25,289		4,000
Contribution to defined contribution plans		362		292		273		43

		41,968		43,470		25,562		4,043

The

non-executive

directors do not receive pension entitlements from the Group.