Related party disclosures

12 Months Ended

Dec. 31, 2023

29.	Related party disclosures

The ultimate parent

As of December 31, 2023, the controlling shareholder of the Company, HLA, indirectly owned 18,270,965, or 44.7% (2022: 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 HL Technology Systems Pte. Ltd. (“HLT”), a wholly-owned subsidiary of HLC. HLT owns approximately 23.3% (2022: 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% (2022: 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 2023, there were transactions other than dividends paid, between the Group and HLA of RMB 0.5 million (less than US$ 0.1 million) (2022: RMB 0.4 million; 2021: RMB 0.5 million). The transaction relates to consultancy fees charged by HLA.

Entity with significant influence over the Group

As of December 31, 2023, the Yulin City Government through Coomber Investment Ltd. owned 18.2% (2022: 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.


	31.12.2021		31.12.2022		31.12.2023		31.12.2023
	RMB’000		RMB’000		RMB’000		US$’000
Sales of engines and parts
- associates and joint ventures		393,440		411,010		924,971		130,212
- GY and its affiliates		3,223,785		2,262,306		2,034,304		286,376
Purchase of parts, supplies and engines
- associates and joint ventures		2,036,675		1,396,611		1,614,814		227,323
- GY and its affiliates		1,307,137		1,053,607		1,804,457		254,020
Hospitality, restaurant, consultancy and other service income charged to
- a joint venture		2,152		5,803		18,427		2,594
- GY and its affiliates		6,609		10,398		18,023		2,537
Service charge charged by
- joint ventures		5,023		128		2,094		295
Rental income
- joint ventures		4,415		4,634		3,834		540
- GY and its affiliates		275		580		12,227		1,721
Sales of an intangible asset to a joint venture		—		—		101,390		14,273
Property management service expenses
- GY and its affiliates		21,978		22,128		24,668		3,473
Selling, general and administrative expenses
- a joint venture		2,530		—		—		—
- GY and its affiliates		9,315		30,151		34,178		4,811
- HLA and its affiliates		7,188		8,994		9,194		1,294
Delivery, storage, distribution and handling expenses
- GY and its affiliates		300,699		201,669		212,566		29,924
Payment for lease liabilities
- GY and its affiliates		17,215		19,802		19,615		2,761
Purchases of vehicles and machineries
- GY and its affiliates		3,460		2,513		—		—

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


	31.12.2021		31.12.2022		31.12.2023		31.12.2023
	RMB’000		RMB’000		RMB’000		US$’000
Short-term employee benefits		25,289		25,011		30,147		4,244
Contribution to defined contribution plans		273		208		305		43

		25,562		25,219		30,452		4,287

The

non-executive

directors do not receive pension entitlements from the Group.