Details of significant joint ventures of the Group are as follows:


Name of company	Principal activities	Place of incorporation/ business	Group’s effective equity interest
			31.12.2021		31.12.2022
			%		%
Held by subsidiaries

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

MTU Yuchai Power Co., Ltd (“MTU Yuchai Power”)	Manufacture off-road diesel engines	People’s Republic of China		38.2		38.2

Guangxi Purem Yuchai Automotive Technology Co., Ltd. (“Purem”) (formerly known as Eberspaecher Yuchai Exhaust Technology Co. Ltd)	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 2021 and 2022, the Group has performed an impairment evaluation of its investments in joint ventures. In 2022, impairment loss of RMB 1.0 million (US$ 0.1 million) (2021: RMB Nil) was charged to the consolidated statement of profit or loss under “Other operating expenses”.


	31.12.2020
	Y & C			MTU Yuchai Power			Purem			Total
	RMB’000			RMB’000			RMB’000			RMB’000
Revenue		3,021,877			307,699			45,966			3,375,542
Depreciation and amortization		(59,406	)		(2,350	)		(360	)		(62,116	)
Interest expense		(40,709	)		(1,983	)		—			(42,692	)
Profit/(loss) for the year, representing total comprehensive income for the year		(88,785	)		6,421			(39,095	)		(121,459	)

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	)

Group’s share of profit of other joint ventures, representing the Group’s share of total comprehensive loss of other joint ventures											513

Group’s share of loss for the year, representing the Group’s share of total comprehensive loss for the year											(59,422	)


	31.12.2021
	Y & C			MTU Yuchai Power			Purem			Total
	RMB’000			RMB’000			RMB’000			RMB’000
Non-current assets		660,856			89,749			71,858			822,463
Current assets
- Cash and bank balances		179,779			63,609			2,105			245,493
- Others		817,972			310,394			99,352			1,227,718

Total assets		1,658,607			463,752			173,315			2,295,674

Non-current liabilities		(362,779	)		—			(14,109	)		(376,888	)
Current liabilities		(1,147,416	)		(271,521	)		(94,604	)		(1,513,541	)

Total liabilities		(1,510,195	)		(271,521	)		(108,713	)		(1,890,429	)

Equity		148,412			192,231			64,602			405,245

Proportion of the Group’s ownership		45	%		50	%		49	%

Group’s share of net assets		66,785			96,116			31,655
Unrealized profit on transactions with joint venture		(43,964	)		(6,635	)		—

Carrying amount of significant joint ventures		22,821			89,481			31,655			143,957

Carrying amount of other joint ventures											7,138

Carrying amount of the investment in joint ventures											151,095


	31.12.2021
	Y & C			MTU Yuchai Power			Purem			Total
	RMB’000			RMB’000			RMB’000			RMB’000
Revenue		2,072,721			467,800			157,316			2,697,837
Depreciation and amortization		(52,881	)		(2,377	)		(709	)		(55,967	)
Interest expense		(51,836	)		(1,850	)		(41	)		(53,727	)
Profit/(loss) for the year, representing total comprehensive income for the year		(282,205	)		54,526			2,811			(224,868	)

Proportion of the Group’s ownership		45	%		50	%		49	%

Group’s share of profit/(loss)		(126,992	)		27,263			1,377
Unrealized profit on transactions with joint venture		1,139			774			—

Group’s share of profit/(loss) of significant joint ventures		(125,853	)		28,037			1,377			(96,439	)

Group’s share of profit of other joint ventures, representing the Group’s share of total comprehensive loss of other joint ventures											454

Group’s share of loss for the year, representing the Group’s share of total comprehensive loss for the year											(95,985	)


	31.12.2022
	Y & C			MTU Yuchai Power			Purem			Total			Total
	RMB’000			RMB’000			RMB’000			RMB’000			US$’000
Non-current assets		616,161			89,353			60,439			765,953			110,179
Current assets
- Cash and bank balances		97,741			291,807			26,744			416,292			59,882
- Others		502,174			209,696			31,512			743,382			106,932

Total assets		1,216,076			590,856			118,695			1,925,627			276,993

Non-current liabilities		(145,418	)		—			—			(145,418	)		(20,918	)
Current liabilities		(987,638	)		(334,576	)		(77,109	)		(1,399,323	)		(201,286	)

Total liabilities		(1,133,056	)		(334,576	)		(77,109	)		(1,544,741	)		(222,204	)

Equity		83,020			256,280			41,586			380,886			54,789

Proportion of the Group’s ownership		45	%		50	%		49	%

Group’s share of net assets		37,359			128,140			20,377
Unrealized profit on transactions with joint venture		(36,871	)		—			—

Carrying amount of significant joint ventures		488			128,140			20,377			149,005			21,433

Carrying amount of other joint ventures											5,698			820

Carrying amount of the investment in joint ventures											154,703			22,253


	31.12.2022
	Y & C			MTU Yuchai Power			Purem			Total			Total
	RMB’000			RMB’000			RMB’000			RMB’000			US$’000
Revenue		1,255,967			594,197			69,380			1,919,544			276,118
Depreciation and amortization		(29,617	)		(9,733	)		(7,726	)		(47,076	)		(6,772	)
Interest expense, net		(30,547	)		470			(469	)		(30,546	)		(4,394	)
Profit/(loss) for the year, representing total comprehensive income for the year		(65,961	)		66,076			(23,016	)		(22,901	)		(3,294	)

Proportion of the Group’s ownership		45	%		50	%		49	%

Group’s share of profit/(loss)		(29,682	)		33,038			(11,278	)
Unrealized profit on transactions with joint venture		(24,434	)		7,241			—

Group’s share of profit/(loss) of significant joint ventures		(54,116	)		40,279			(11,278	)		(25,115	)		(3,612	)

Group’s share of loss of other joint ventures, representing the Group’s share of total comprehensive loss of other joint ventures											(2,431	)		(350	)

Group’s share of loss for the year, representing the Group’s share of total comprehensive loss for the year											(27,546	)		(3,962	)

Note:

As of December 31, 2022, the Group’s share of joint ventures’ capital commitment that are contracted but not paid was RMB 3.5 million (US$ 0.5 million) (2021: RMB 7.0 million).

As of December 31, 2022, the Group’s share of outstanding bills receivables discounted with banks for which Y & C retained a recourse obligation totaled RMB 5.9 million (US$ 0.8 million) (2021: RMB 213.9 million).

As of December 31, 2022, the Group’s share of outstanding bills receivables endorsed to suppliers for which Y & C retained a recourse obligation were RMB 39.7 million (US$ 5.7 million) (2021: RMB 33.1 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 163.0 million (US$ 23.4 million) (2021: RMB 39.6 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, 2022, the Group’s share of restricted cash of RMB 40.5 million (US$ 5.8 million) (2021: RMB 74.5 million) which was used as collateral by the banks for the issuance of bills to suppliers.

As of December 31, 2022, the Group’s share of bills receivables of RMB 2.3 million (US$ 0.3 million) (2021: RMB 22.0 million) which was used as collateral by banks for the issuance of bills to suppliers.