China Yuchai International Ltd (NYSE:CYD) Q4 2019 Earnings Conference Call - Final Transcript

Mar 30, 2020 • 08:00 am ET


China Yuchai International Ltd (NYSE:CYD) Q4 2019 Earnings Conference Call - Final Transcript


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I would now like to turn the conference over to Mr. Kevin Theiss. Please go ahead, sir.

Kevin Theiss

Thank you for joining us today and welcome to China Yuchai International Limited Fourth Quarter 2019 Conference Call and Webcast. Joining us today are Mr. Weng Ming Hoh and Dr. Thomas Phung, President and Chief Financial Officer of CYI, respectively. In addition, we also have in attendance, Mr. Kelvin Lai of CYI.

Before we begin, I will remind all listeners that throughout this call we may make statements that may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words: believe, expect, anticipate, project, targets, optimistic, confident that, continue to, predict, intend, aim, will, or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that may be deemed forward-looking statements. These forward-looking statements, including but not limited to statements concerning the company's operations, financial performance and condition are based on current expectations, beliefs, and assumptions, which are subject to change at any time. The company cautions that these statements, by their nature, involve risks and uncertainties and actual results may differ materially, depending on a variety of important factors such as government and stock exchange regulations, competition, political, economic and social conditions around the world and in China, including those discussed in the company's Form 20-F under the headings Risk Factors, Results of Operations and Business Overview, and other reports filed with the Securities and Exchange Commission from time to time. All forward-looking statements are applicable only as of the date they are made, and the company specifically disclaims any obligation to maintain or update the forward-looking information whether of the nature contained in the release made on today's call or otherwise in the future.

Mr. Hoh will provide a brief overview and summary, and then Dr. Phung will review the financial results for the fourth quarter and fiscal year ended December 31, 2019. Thereafter, we will conduct a question-and-answer session.

For the purposes of today's call, the financial results for the fourth quarter and the fiscal year ended December 31, 2019 are unaudited and they will be presented in RMB and U.S. dollars. All the financial information presented is reported using International Financial Reporting Standards as issued by the International Accounting Standards Board.

Mr. Hoh, please begin your prepared remarks.

HOH Weng Ming

Thank you, Kevin. For the fourth quarter of 2019, China's GDP was 6%, the same growth rate as in the third quarter 2019. For the full year 2019, GDP growth was 6.1%, which was the slowest annual growth in the last 29 years.

According to data reported by China Association of Automobile Manufacturers, CAAM, in the fourth quarter of 2019, unit sales of commercial vehicle, excluding gasoline-powered and electric-powered vehicles, increased by 2.9% overall, compared with the same quarter in 2018. This growth included a 2% sales increase in the truck segment and a 10.4% increase in the bus segment.

Unit sales of heavy-duty trucks increased by