China Yuchai International Ltd (NYSE: CYD)

China Yuchai International Limited is a Bermuda holding company that owns a controlling interest in Yuchai, a Chinese manufacturer of diesel and natural gas engines. The company also holds a stake in HLGE, a Singapore listed hospitality and property group. It provides management, financial planning, internal audit, internal control testing, IFRS training, and business enhancement consulting to Yuchai. Its principal operating office is located in Singapore, while its registered office is in Bermuda.

The company generates revenue primarily from dividends received on its Yuchai shareholding. It also receives fees for management and advisory services provided to Yuchai. Returns from its investment in HLGE contribute to revenue. Additionally, the company earns investment income on surplus funds. Dividends from Yuchai have historically been the main source of cash flow for the company.

The company operates through the following segments.

• Engine Business: This segment involves the design manufacture and sale of diesel natural gas and new energy engines for trucks, buses, construction, agricultural, marine, and power generation applications. Yuchai’s product lineup includes light, medium, and heavy duty engines that meet National VI VIb and Tier 4 emission standards. The segment also offers powertrain solutions such as pure electric drive, hybrid systems, range extenders, and fuel cell units.

• Hospitality and Property: This segment focuses on hospitality operations and property development mainly in Malaysia. HLGE owns the Copthorne Hotel Cameron Highlands which provides 269 guest rooms and suites. It also leases a Tudor styled resort with 51 units for use by hotel guests. The segment engages in property development projects that support its hospitality business.

Yuchai is regarded as one of the leading domestic producers of diesel and natural gas engines in China. It competes with local manufacturers and international entrants across various engine categories. Competitive advantages include strong brand recognition, proven product reliability, robust research and development capabilities, compliance with stringent emission standards and a nationwide network of authorized service stations. The company’s R&D efforts have yielded over 1,600 invention patents and 2,300 utility model patents as of the end of 2025. Yuchai’s annual production capacity exceeds 630,000 engine units.

Yuchai sells its engines to original equipment manufacturers and distributors across China and abroad. Its top customer is a leading automobile manufacturer group in China which accounted for 17.1% of revenue in 2025. The company also serves a broad base of customers including construction firms, agricultural operators, marine operators, and power generation clients. Export sales accounted for less than two percent of total revenue in 2025.