Investment in joint ventures

12 Months Ended

Dec. 31, 2023

Investments accounted for using equity method [abstract]

5.	Investment in joint ventures


	31.12.2021			31.12.2022			31.12.2023			31.12.2023
	RMB’000			RMB’000			RMB’000			US$’000
Share of results of joint ventures, net of tax:
Y & C Engine Co., Ltd		(125,853	)		(54,116	)		(4,019	)		(566	)
MTU Yuchai Power Co., Ltd.		28,037			40,279			74,727			10,520
Guangxi Purem Yuchai Automotive Technology Co., Ltd.		1,377			(11,278	)		(4,508	)		(635	)
Other joint ventures		454			(2,431	)		(4,117	)		(579	)

		(95,985	)		(27,546	)		62,083			8,740


	31.12.2022		31.12.2023		31.12.2023
	RMB’000		RMB’000		US$’000
Carrying amount of investments:
Y & C Engine Co., Ltd		488		12,977		1,827
MTU Yuchai Power Co., Ltd		128,140		203,156		28,599
Guangxi Purem Yuchai Automotive Technology Co., Ltd.		20,377		15,869		2,234
Other joint ventures		5,698		5,227		736

		154,703		237,229		33,396

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
			31.12.2022		31.12.2023
			%		%
Held by subsidiaries

Y & C Engine Co., Ltd (“Y&C”)	Manufacture and sale of heavy-duty diesel engines, spare parts and after-sales services	PRC		34.4		34.4

MTU Yuchai Power Co., Ltd (“MTU Yuchai Power”)	Manufacture off-road diesel engines	PRC		38.2		38.2

Guangxi Purem Yuchai Automotive Technology Co., Ltd. (“Purem”)	Application development, production, sales and service on engine exhaust control systems	PRC		37.4		37.4

Summarised financial information of the Group’s significant joint ventures, based on its IFRS financial statements, and reconciliation with the carrying amount of investment in the consolidated financial statements are as follows:


	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 results		(126,992	)		27,263			1,377
Unrealized profit on transactions with joint venture		1,139			774			—

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

Group’s share of results of other joint ventures, representing the Group’s share of total comprehensive income of other joint ventures											454

Group’s share of results 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
	RMB’000			RMB’000			RMB’000			RMB’000
Non-current assets		616,161			89,353			60,439			765,953
Current assets
- Cash and bank balances		97,741			291,807			26,744			416,292
- Others		502,174			209,696			31,512			743,382

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

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

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

Net assets		83,020			256,280			41,586			380,886

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

Carrying amount of other joint ventures											5,698

Carrying amount of the investment in joint ventures											154,703


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

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

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

Group’s share of results of significant joint ventures		(54,116	)		40,279			(11,278	)		(25,115	)

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

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


	31.12.2023
	Y & C			MTU Yuchai Power			Purem			Total			Total
	RMB’000			RMB’000			RMB’000			RMB’000			US$’000

Non-current assets		685,434			74,794			51,877			812,105			114,323
Current assets
- Cash and bank balances		64,252			523,858			16,171			604,281			85,067
- Others		426,105			226,881			45,009			697,995			98,259

Total assets		1,175,791			825,533			113,057			2,114,381			297,649

Non-current liabilities		(146,218	)		(4,825	)		—			(151,043	)		(21,263	)
Current liabilities		(946,348	)		(414,396	)		(80,672	)		(1,441,416	)		(202,913	)

Total liabilities		(1,092,566	)		(419,221	)		(80,672	)		(1,592,459	)		(224,176	)

Net assets		83,225			406,312			32,385			521,922			73,473

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

Group’s share of net assets		37,451			203,156			15,869
Unrealized profit on transactions with joint venture		(24,474	)		—			—

Carrying amount of significant joint ventures		12,977			203,156			15,869			232,002			32,660

Carrying amount of other joint ventures											5,227			736

Carrying amount of the investment in joint ventures											237,229			33,396


	31.12.2023
	Y & C			MTU Yuchai Power			Purem			Total			Total
	RMB’000			RMB’000			RMB’000			RMB’000			US$’000
Revenue		1,562,179			708,432			79,119			2,349,730			330,780
Depreciation and amortization		(63,648	)		(8,682	)		(7,557	)		(79,887	)		(11,246	)
Interest expense, net		(22,508	)		6,762			36			(15,710	)		(2,212	)
Profit/(loss) for the year, representing total comprehensive income for the year		(6	)		150,030			(9,201	)		140,823			19,824

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

Group’s share of results		(3	)		75,015			(4,508	)
Unrealized profit on transactions with joint venture		(4,016	)		(288	)		—

Group’s share of results of significant joint ventures		(4,019	)		74,727			(4,508	)		66,200			9,319

Group’s share of results of other joint ventures, representing the Group’s share of total comprehensive loss of other joint ventures											(4,117	)		(579	)

Group’s share of results for the year, representing the Group’s share of total comprehensive income for the year											62,083			8,740

Note:

The Group assess impairment of investments when adverse events or changes in circumstances indicate that the carrying amounts may not be recoverable. In 2022, impairment loss of

RMB 1.0 million was charged to the consolidated statement of profit or loss under “Other operating expenses”. In 2023, no impairment was required.

As of December 31, 2023, the Group’s share of joint ventures’ capital commitment that are contracted but not paid for was RMB 5.7 million (US$0.8 million) (2022: RMB 3.5 million).

As of December 31, 2023, the Group’s share of outstanding bills receivables discounted with banks for which Y & C retained a recourse obligation totaled RMB 11.8 million (US$1.7 million) (2022: RMB 5.9 million).

As of December 31, 2023, the Group’s share of outstanding bills receivables endorsed to suppliers for which Y & C retained a recourse obligation were RMB 8.8 million (US$1.2 million) (2022: RMB 39.7 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 278.5 million (US$39.2 million) (2022: RMB 163.0 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, 2023, the Group’s share of restricted cash of RMB 22.3 million (US$3.1 million) (2022: RMB 40.5 million) which was used as collateral by the banks for the issuance of bills to suppliers.

As of December 31, 2023, the Group’s share of bills receivables of RMB 2.3 million (US$0.3 million) (2022: RMB 2.3 million) which was used as collateral by banks for the issuance of bills to suppliers.