Reserves

12 Months Ended

Dec. 31, 2023

20.

Reserves


	31.12.2022			31.12.2023			31.12.2023
	RMB’000			RMB’000			US$’000
Statutory reserve
Statutory general reserve (i)
At January 1		283,531			310,029			43,644
Transfer from retained earnings		26,498			45,989			6,474

At December 31		310,029			356,018			50,118


General surplus reserve (ii)
At January 1 and December 31		25,706			25,706			3,619

Total		335,735			381,724			53,737


Capital reserves (iii)
At January 1		30,704			(4,196	)		(591	)
Issuance of put option to non-controlling interest of subsidiary		(34,900	)		(14,040	)		(1,976	)

At December 31		(4,196	)		(18,236	)		(2,567	)

Note:

(i)

In accordance with the relevant regulations in the PRC, a 10% appropriation to the statutory general reserve based on the net income reported in the PRC financial statements is required until the balance reaches 50% of the authorized share capital of Yuchai and its subsidiaries. Statutory general reserve can be used to make good previous years’ losses, if any, and may be converted into share capital by the issue of new shares to shareholders in proportion to their existing shareholdings, or by increasing the par value of the shares currently held by them, provided that the reserve balance after such issue is not less than 25% of the authorized share capital.

(ii)

General surplus reserve is appropriated in accordance with Yuchai’s Articles and resolution of the board of directors. General surplus reserve may be used to offset accumulated losses or increase the registered capital.

(iii)

Capital reserves consist of reserve resulted from (i) a capital transaction in 2015 and (ii) the put option granted to the

non-controlling

interests of Yuchai’s subsidiary in 2022 and 2023. Further details are given in Note 28.


	31.12.2022			31.12.2023			31.12.2023
	RMB’000			RMB’000			US$’000
Other components of equity
Foreign currency translation reserve (i)		(44,699	)		(27,971	)		(3,937	)
Performance shares reserve (ii)		19,758			19,758			2,781
Premium paid for acquisition of non-controlling interests		(9,463	)		(7,986	)		(1,124	)
Fair value reserve of financial assets at FVOCI (iii)		(30,591	)		(22,454	)		(3,161	)

Total		(64,995	)		(38,653	)		(5,441	)

Note:

(i)

Foreign currency translation reserve represents exchange differences arising from the translation of the financial statements of foreign operations whose functional currencies are different from that of the Group’s presentation currency.

(ii)

Performance shares reserve comprises the cumulative value of employee services received in return for share-based compensation. The amount in the reserve is retained when the option is expired.

(iii)

Fair value reserve of financial assets at FVOCI relates to the subsequent measurement of the Group’s bills receivable at fair value through OCI.