Investments in subsidiaries

12 Months Ended

Dec. 31, 2024

Investments accounted for using equity method [abstract]

Details of significant subsidiaries of the Group are as follows:


Name of significant subsidiary	Place of incorporation/ business	Group’s effective equity interest
		31.12.2023	31.12.2024
		%	%
Guangxi Yuchai Machinery Company Limited	PRC	76.4	76.4
Guangxi Yuchai Marine and Genset Power Co., Ltd.	PRC	76.4	71.4
Yuchai Simlan Technology Co., Ltd. (formerly known as Yuchai Xin-Lan New Energy Power Technology Co., Ltd.)	PRC	67.0	67.0
Guangxi Yuchai Machinery Sales and Marketing Development Co., Ltd. (formerly known as 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.


	31.12.2022		31.12.2023		31.12.2024		31.12.2024
	RMB’000		RMB’000		RMB’000		US$’000
Accumulated balances of material NCI
Yuchai		2,627,354		2,741,359		2,921,456		407,240
Profit allocated to material NCI
Yuchai		114,700		135,173		165,388		23,054
Dividends paid to material NCI
Yuchai		103,199		35,702		89,229		12,438

Investments in subsidiaries (cont’d)

Summarized financial information including goodwill on acquisition and consolidation adjustments but before intercompany eliminations of subsidiaries with material non-controlling interests are as follows:


	31.12.2022
	Yuchai RMB’000
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
Summarized statement of financial position
Current assets		18,073,115
Non-current assets, excluding goodwill		6,293,318
Goodwill		212,636
Current liabilities		(12,029,500	)
Non-current liabilities		(1,457,329	)
Net assets		11,092,240
Total equity		11,092,240
Attributable to NCI		2,741,359
Summarized statement of comprehensive income
Revenue		18,015,280
Profit after tax		431,697
Total comprehensive income for the year		442,666
Attributable to NCI		135,173
Summarized statement of cash flows
Operating		1,261,921
Investing		23,243
Financing		(67,590	)
Net increase in cash and cash equivalents		1,217,574

Investments in subsidiaries (cont’d)


	31.12.2024
	Yuchai
	RMB’000			US$’000
Summarized statement of financial position
Current assets		19,675,359			2,742,669
Non-current assets, excluding goodwill		6,225,707			867,839
Goodwill		212,636			29,641
Current liabilities		(13,208,372	)		(1,841,196	)
Non-current liabilities		(1,451,625	)		(202,351	)
Net assets		11,453,705			1,596,602
Total equity		11,453,705			1,596,602
Attributable to NCI		2,921,456			407,240
Summarized statement of comprehensive income
Revenue		19,102,797			2,662,856
Profit after tax		511,379			71,284
Total comprehensive income for the year		515,926			71,918
Attributable to NCI		165,388			23,054
Summarized statement of cash flows
Operating		837,220			116,705
Investing		18,761			2,615
Financing		(293,216	)		(40,873	)
Net increase in cash and cash equivalents		562,765			78,447

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 5.5 billion (US$763.4 million) (2023: RMB 4.9 billion) 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 February 2023, Yuchai Simlan issued additional ordinary shares to two new investors for a total cash consideration of RMB 20.0 million. As a result, the Group’s effective equity interest in Yuchai Simlan decreased from 69.5% to 67.0%.

In June 2024, Yuchai's shareholders approved the implementation of Guangxi Yuchai Machinery Company Limited Equity Holding Scheme (the “Yuchai Equity Scheme”) and Guangxi Yuchai Marine and Genset Power Co., Ltd Incentive Scheme (the "MGP Incentive Scheme”) (collectively, the “Two Schemes”). Pursuant to Two Schemes, MGP issued additional shares and received contribution of RMB 82.9 million (US$11.6 million). As a result, the Group’s effective equity interest in MGP decreased from 76.4% to 71.4%.

Investments in subsidiaries (cont’d)

Disposal of subsidiary

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.

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
	RMB’000
Property, plant and equipment		41,111
Right-of-use assets		22,782
Trade and other receivables		47,595
Cash and cash equivalents		32,056
		143,544
Trade and other payables		(20,109	)
Provision for warranty		(2,145	)
Contract liabilities		(104	)
Carrying value of net assets		121,186
Gain on disposal:
Total estimated consideration less cost of disposal		234,228
Net assets derecognized		(121,186	)
Gain on disposal of the subsidiary (Note 7.2(a))		113,042
Total estimated consideration less cost of disposal (i)		234,228
Add: Transaction cost unpaid		7,506
Less: Sales proceed received but restricted in use		(5,000	)
Less: Cash and cash equivalents of a subsidiary		(32,056	)
Less: Total estimated consideration due from acquirer		(236,734	)
Net cash outflow on disposal of a subsidiary		(32,056	)

Note:

(i)

The estimated consideration is RMB 179.9 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.

During 2024, net cash inflow of RMB 230.9 million (US$32.2 million) from the disposal of Suzhou Reman was received, of which RMB 13.4 million (US$1.9 million) were retention sums which were classified as restricted cash. Total of RMB 235.9 million (US$32.9 million) was received as of December 31, 2024, of which RMB 18.4 million (US$2.6 million) were retention sums which were classified as restricted cash (Note 15).

Proportion of equity interest held by NCI