Related party disclosures

12 Months Ended

Dec. 31, 2022

29.	Related party disclosures

The ultimate parent

As of December 31, 2022, the controlling shareholder of the Company, HLA, indirectly owned 18,270,965, or 44.7% (2021: 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% (2021: 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% (2021: 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.

In 2022, there were transactions other than dividends paid, between the Group and HLA of RMB 0.4 million (less than US$0.1 million) (2021: RMB 0.5 million; 2020: RMB 0.03 million). The transaction relates to consultancy fees charged by HLA.

Entity with significant influence over the Group

As of December 31, 2022, the Yulin City Government through Coomber Investment Ltd. owned 17.2% (2021: 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.


	31.12.2020		31.12.2021		31.12.2022		31.12.2022
	RMB’000		RMB’000		RMB’000		US$’000
Sales of engines and parts
- associates and joint ventures		1,256,268		393,440		411,010		59,122
- GY Group (including its subsidiaries and affiliates)		2,637,845		3,223,785		2,262,306		325,423
Purchase of parts, supplies and engines
- associates and joint ventures		2,792,707		2,036,675		1,396,611		200,896
- GY Group (including its subsidiaries and affiliates)		1,245,030		1,307,137		1,053,607		151,557
Hospitality, restaurant, consultancy and other service income charged to
- a joint venture		3,918		2,152		5,803		835
- GY Group (including its subsidiaries and affiliates)		6,765		6,609		10,398		1,496
Service charge charged by
- joint ventures		—		5,023		128		18
Rental income
- joint ventures		4,565		4,415		4,634		667
- GY Group (including its subsidiaries and affiliates)		3,970		275		580		83
Property management service expenses
- GY Group (including its subsidiaries and affiliates)		24,968		21,978		22,128		3,183
Selling, general and administrative expenses
- a joint venture		7,287		2,530		—		—
- GY Group (including its subsidiaries and affiliates)		4,728		9,315		30,151		4,337
- HLA (including its affiliates)		6,687		7,188		8,994		1,294
Delivery, storage, distribution and handling expenses
- GY Group (including its subsidiaries and affiliates)		312,891		300,699		201,669		29,009
Payment for lease liabilities
- GY Group (including its subsidiaries and affiliates) (i)		18,086		17,215		19,802		2,848
Purchases of vehicles and machineries
- GY Group (including its subsidiaries and affiliates)		2,838		3,460		2,513		361

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, 2021 and 2022.

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


	31.12.2020		31.12.2021		31.12.2022		31.12.2022
	RMB’000		RMB’000		RMB’000		US$’000
Short-term employee benefits		43,178		25,289		25,011		3,598
Contribution to defined contribution plans		292		273		208		30

		43,470		25,562		25,219		3,628

The

non-executive

directors do not receive pension entitlements from the Group.