Investments in subsidiaries

12 Months Ended

Dec. 31, 2023

Investments accounted for using equity method [abstract]

4.	Investments in subsidiaries

Details of significant subsidiaries of the Group are as follows:


Name of significant subsidiary	Place of incorporation/ business	Group’s effective equity interest
		31.12.2022		31.12.2023
		%		%
Guangxi Yuchai Machinery Company Limited	PRC		76.4		76.4
Guangxi Yuchai Marine and Genset Power Co., Ltd.	PRC		76.4		76.4
Yuchai Xin-Lan New Energy Power Technology Co., Ltd	PRC		69.5		67.0
Guangxi Yuchai Machinery Monopoly Development Co., Ltd	PRC		54.9		54.9
Guangxi Yuchai Foundry Co., Ltd	PRC		76.4		76.4
HL Global Enterprises Limited	Singapore		50.2		50.2

The Group has the following subsidiary that has

non-controlling

interests (“NCI”) that are material to the Group.


	31.12.2021			31.12.2022			31.12.2023
Proportion of equity interest held by NCI
Yuchai		23.6	%		23.6	%		23.6	%


	31.12.2021 RMB’000		31.12.2022 RMB’000		31.12.2023 RMB’000		31.12.2023 US$’000
Accumulated balances of material NCI
Yuchai		2,574,669		2,627,354		2,741,359		385,911

Profit allocated to material NCI
Yuchai		153,500		114,700		135,173		19,029

Dividends paid to material NCI
Yuchai		203,753		103,199		35,702		5,026

Summarized financial information including goodwill on acquisition and consolidation adjustments but before intercompany eliminations of subsidiaries with material

non-controlling

interests are as follows:


	31.12.2021
	Yuchai RMB’000
Summarized statement of comprehensive income
Revenue		21,254,134

Profit after tax		443,499

Total comprehensive income for the year		506,769

Attributable to NCI		153,500

Summarized statement of cash flows
Operating		588,727
Investing		(674,686	)
Financing		(1,002,764	)

Net decrease in cash and cash equivalents		(1,088,723	)


	31.12.2022
	Yuchai RMB’000
Summarized statement of financial position
Current assets		16,070,488
Non-current assets, excluding goodwill		6,737,117
Goodwill		212,636
Current liabilities		(11,204,417	)
Non-current liabilities		(1,016,521	)

Net assets		10,799,303

Total equity		10,799,303

Attributable to NCI		2,627,354

Summarized statement of comprehensive income
Revenue		15,998,041

Profit after tax		355,140

Total comprehensive income for the year		355,936

Attributable to NCI		114,700

Summarized statement of cash flows
Operating		(82,444	)
Investing		(221,126	)
Financing		(181,072	)

Net decrease in cash and cash equivalents		(484,642	)


	31.12.2023
	Yuchai
	RMB’000			US$’000
Summarized statement of financial position
Current assets		18,073,115			2,544,219
Non-current assets, excluding goodwill		6,293,318			885,934
Goodwill		212,636			29,934
Current liabilities		(12,029,500	)		(1,693,437	)
Non-current liabilities		(1,457,329	)		(205,154	)

Net assets		11,092,240			1,561,496

Total equity		11,092,240			1,561,496

Attributable to NCI		2,741,359			385,911

Summarized statement of comprehensive income
Revenue		18,015,280			2,536,077

Profit after tax		431,697			60,772

Total comprehensive income for the year		442,666			62,316

Attributable to NCI		135,173			19,029

Summarized statement of cash flows
Operating		1,261,921			177,645
Investing		23,243			3,272
Financing		(67,590	)		(9,515	)

Net increase in cash and cash equivalents		1,217,574			171,402

Significant restrictions

The nature and extent of significant restrictions on the Group’s ability to use or access assets and settle liabilities of subsidiaries with material

non-controlling

interests are:

At the end of the reporting period, cash and cash equivalents of RMB 4,934.6 million (US$694.7 million) (2022: RMB 3,713.3 million) held in the PRC are subject to local exchange control regulations. These regulations place restriction on the amount of currency being exported other than through dividends, trade and service related transactions.

Dilution of ownership in subsidiary, without loss of control in 2022 and 2023

In November 2022, Yuchai’s wholly owned subsidiary, Yuchai

Xin-Lan

issued additional ordinary shares to

non-controlling

interest for cash consideration of RMB 50.0

million. As a result, the Group’s effective equity interest in Yuchai Xin-Lan decreased to

69.5%.

In February 2023, Yuchai Xin-Lan issued additional ordinary shares to two new investors for a total cash consideration of

RMB 20.0 million (US$2.8

million). As a result, the Group’s effective equity interest in Yuchai Xin-Lan decreased to

67.0%.

Disposal of subsidiary in 2023

In December 2023, Yuchai disposed its entire shareholding in its wholly-owned subsidiary, Yuchai Remanufacturing Services (Suzhou) Co., Ltd. (“Suzhou Reman”), to a third party for

an estimated

cash consideration of RMB 241.7 million (US$

34.0 million).

The value of assets and liabilities of the disposal recorded in the consolidated financial statements and the cash flow effect of the disposals were:


	31.12.2023			31.12.2023
	RMB’000			US$’000
Property, plant and equipment		41,111			5,787
Right-of-use assets		22,782			3,207
Trade and other receivables		47,595			6,700
Cash and cash equivalents		32,056			4,513

		143,544			20,207
Trade and other payables		(20,109	)		(2,831	)
Provision for warranty		(2,145	)		(302	)
Contract liabilities		(104	)		(14	)

Carrying value of net assets		121,186			17,060

Gain on disposal:
Total estimated consideration less cost of disposal		234,228			32,973
Net assets derecognized		(121,186	)		(17,060	)

Gain on disposal of the subsidiary (Note 7.2(a))		113,042			15,913

Total estimated consideration less cost of disposal (i)		234,228			32,973
Add: Transaction cost unpaid		7,506			1,057
Less: Sales proceed received but restricted in use		(5,000	)		(704	)
Less: Cash and cash equivalents of a subsidiary		(32,056	)		(4,513	)
Less: Total estimated consideration due from acquirer		(236,734	)		(33,326	)

Net cash outflow on disposal of a subsidiary		(32,056	)		(4,513	)

Note:

(i)

The

estimated

consideration is RMB 179.9 million (US$ 25.3 million), along with the

estimated

book value of cash and cash equivalents and agreed-upon fair value for the equipment in Suzhou Reman as of December 31, 2023.