Segment information

12 Months Ended

Dec. 31, 2022

31.	Segment information

For management purposes, the Group is organized into business units based on their products and services, and has two reportable operating segments as follows:

•

Yuchai primarily conducts manufacturing and sale of diesel engines which are mainly distributed in the PRC market.

•

HLGE is engaged in hospitality and property development activities conducted mainly in the PRC and Malaysia. HLGE is listed on the Main Board of the Singapore Exchange.

Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment.


Year ended December 31, 2020	Yuchai			HLGE			Corporate			Eliminations/ adjustment			Consolidated financial statements
	RMB’000			RMB’000			RMB’000			RMB’000			RMB’000
Revenue
Total external revenue (Note 6.1)		20,557,660			23,510			—			—			20,581,170


Results
Interest income		158,569			3,538			4,863			—			166,970
Interest expense		(147,161	)		(35	)		(97	)		—			(147,293	)
Impairment of property, plant and equipment		(3,920	)		—			—			—			(3,920	)
Staff severance cost		(19,712	)		—			—			—			(19,712	)
Depreciation and amortization		(488,536	)		(5,181	)		(890	)		—			(494,607	)
Share of profit of associates and joint venture		(59,476	)		506			—			—			(58,970	)
Income tax expense		(156,007	)		(200	)		(69	)		(36,262	) (1)		(192,538	)

Segment profit after tax		829,042			1,052			(17,127	)		(33,641	) (1)		779,326

Total assets		25,330,625			392,096			2,075,262			(1,507,025	)		26,290,958

Total liabilities		(14,328,688	)		(10,346	)		(15,797	)		(103,417	) (2)		(14,458,248	)

Other disclosures
Investment in joint ventures		223,918			3,202			—			—			227,120
Capital expenditure		550,424			4,409			14			—			554,847


Year ended December 31, 2021	Yuchai			HLGE			Corporate			Eliminations/ adjustment			Consolidated financial statements
	RMB’000			RMB’000			RMB’000			RMB’000			RMB’000
Revenue
Total external revenue (Note 6.1)		21,254,134			11,796			—			—			21,265,930


Results
Interest income		129,520			1,363			1,200			—			132,083
Interest expense		(111,747	)		(19	)		(26	)		—			(111,792	)
Impairment of property, plant and equipment		(7,227	)		—			—			—			(7,227	)
Staff severance cost		(11,771	)		—			—			—			(11,771	)
Depreciation and amortization		(567,465	)		(5,221	)		(910	)		—			(573,596	)
Share of profit of associates and joint venture		(96,658	)		763			—			—			(95,895	)
Income tax expense		(29,043	)		(245	)		—			(14,528	) (1)		(43,816	)

Segment profit after tax		443,499			(6,728	)		(20,321	)		(8,556	) (1)		407,894

Total assets		23,897,506			368,415			2,146,060			(1,506,672	)		24,905,309

Total liabilities		(13,206,953	)		(10,322	)		(13,550	)		(59,140	) (2)		(13,289,965	)

Other disclosures
Investment in joint ventures		147,106			3,989			—			—			151,095
Capital expenditure		474,562			4,310			19			—			478,891


Year ended December 31, 2022	Yuchai			HLGE			Corporate			Eliminations/ adjustment			Consolidated financial statements			Consolidated financial statements
	RMB’000			RMB’000			RMB’000			RMB’000			RMB’000			US$’000
Revenue
Total external revenue (Note 6.1)		15,997,766			32,870			—			—			16,030,636			2,305,936


Results
Interest income		116,668			2,902			12,309			—			131,879			18,970
Interest expense		(90,846	)		(49	)		(14	)		—			(90,909	)		(13,077	)
Impairment of investment in joint venture		(990	)		—			—			—			(990	)		(142	)
Impairment of property, plant and equipment		(17,278	)		—			—			—			(17,278	)		(2,485	)
Staff severance cost		(19,531	)		—			—			—			(19,531	)		(2,809	)
Depreciation and amortization		(619,000	)		(4,770	)		(922	)		—			(624,692	)		(89,859	)
Share of (loss)/profit of associates and joint venture		(29,554	)		461			—			—			(29,093	)		(4,185	)
Income tax expense		(47,555	)		(39	)		(9	)		(11,462	) (1)		(59,065	)		(8,496	)

Segment profit after tax		354,865			5,152			(18,245	)		(6,111	) (1)		335,661			48,283

Total assets		23,020,241			405,871			2,215,652			(1,504,208	)		24,137,556			3,472,080

Total liabilities		(12,220,938	)		(12,062	)		(14,256	)		(55,236	) (2)		(12,302,492	)		(1,769,659	)

Other disclosures
Investment in joint ventures		150,219			4,484			—			—			154,703			22,253
Capital expenditure		352,737			564			47			—			353,348			50,828

Note:

(1)

This relates mainly to the deferred tax expense relating to withholding tax on dividends from Yuchai.

(2)

This relates mainly to the deferred tax liabilities relating to cumulative withholding tax on dividends that are expected to be declared from income earned after December 31, 2007 by Yuchai.

Geographic information

The geographic information for revenue from external customers is disclosed in Note 6.1.

Revenue from top 5 customers amounted to RMB

5,916.9 million (US$ 851.1 million) (2021: RMB 10,442.3 million; 2020: RMB 11,896.4 million), arising from sales by Yuchai segment.

Non-current

assets


	31.12.2021		31.12.2022		31.12.2022
	RMB’000		RMB’000		US$’000
People’s Republic of China		6,370,404		6,281,907		903,624
Other countries		89,549		90,520		13,021

		6,459,953		6,372,427		916,645

Non-current

assets for this purpose consist of property, plant and equipment,

right-of-use

assets, investment in joint ventures and associates, investment property, intangible assets and goodwill.