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

Mar 30, 2020 • 08:00 am ET

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

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Presentation
Executive
Dr. Thomas Khong Fock PHUNG

million) from RMB1.3 billion in 2018. The operating margin was 6.4% in 2019 compared with 7.9% in 2018.

Finance costs increased by 16.5% to RMB131.8 million (US$18.9 million) from RMB113.1 million in 2018, mainly due to higher amounts of bank borrowing and trade bills discounting in 2019 compared with 2018.

The net profit attributable to China Yuchai's shareholders decreased by 13.0% to RMB604.9 million (US$86.7 million), or basic and diluted earnings per share of RMB14.81 (US$2.12), compared with RMB695.3 million, or earnings per share of RMB17.02 in 2018.

Basic and diluted earnings per share in 2018 and 2019 were based on a weighted average of 40,858,290 shares.

Some balance sheet highlight as of December 31, 2019.

Cash and bank balances were RMB6.4 billion (US$916.1 million) compared with RMB6.1 billion at the end of 2018. Trade and bills receivables were RMB7.7 billion (US$1.1 billion) compared with RMB7.4 [Phonetic] billion at the end of 2018.

Inventories were RMB2.8 billion (US$404.8 million) compared with RMB2.5 billion at the end of 2018. Trade and bills payables were RMB5.7 billion (US$822.1 million) compared with RMB4.6 billion at the end of 2018.

Short- and long-term borrowings were RMB2.1 billion (US$294.6 million) compared with RMB2.0 billion at the end of 2018.

I will now turn the call over to Kevin for the more comments before we begin the Q&A.

Executive
Kevin Theiss

Thank you, Thomas. Please note that due to COVID-19, some officers of China Yuchai are remotely calling into the conference call because of travel restrictions. This may result in a slight delay in providing answers to some questions. We apologize for any inconvenience and thank you for your patience. Operator, we are now ready for the Q&A.