China Yuchai International Limited

Good day, and thank you for standing by. Welcome to the China UChai International Limited first half 2025 financial results conference call and webcast. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be the question and answer session. To ask a question during the session, you need to press star, one, one on your telephone keypad. You will hear an automatic message advising your hand is raised. To withdraw a question, please press star, one, and one again. If you wish to ask a question via the webcast, please use the Q&A box available on the webcast link anytime during the conference. Please be advised that this conference is being recorded. I would now like to hand the conference over to our first speaker today, Kevin Seas. Please go ahead.

Thank you for joining us today, and welcome to China Yuchai International Limited's conference call and webcast for the first half of 2025, ended on June 30, 2025. Joining us today are Mr. Wei-Ming Hou and Mr. Chun-Sin Liu, President and Chief Financial Officer of CYI, respectively. In addition, we also have in attendance Mr. Calvin Lai, General Manager of Operations of CYI and Chairman of MTU Yuchai Power Company Limited or MTU Yuchai Power. Before we begin, I will remind all listeners that the WAPIS 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 include, but are not limited to, statements concerning the company's operations and financial performance and condition and 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 risk 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 20Fs under the headings Risk Factors, Results of Operations, and Business Overview. and the 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 press release, made during today's call, or otherwise in the future. Mr. Ho will provide a brief overview and summary, and then Mr. Liu will review the financial results for the first half year ended June 30, 2025. Thereafter, there will be a question and answer session. For the purposes of today's call, the 2025 and 2024 financial numbers are unaudited and presented in RMB and U.S. dollars. All financial information presented is reported using the IFRS accounting standards as issued by the International Accounting Standards Board. Mr. Ho, please begin your prepared report.

Thank you, Kevin. We are pleased to report that our unit sales in the first half of 2025 outperformed nearly every on-road market category. Revenue increased by 34% year-over-year to RMB 13.8 billion or US dollars 1.9 billion. Drop profit rose by 30.3% year-over-year to RMB 1.8 billion or US dollars 257 billion. Operating profit increased by 42.3% year-over-year and profit to equity holders of company rose by 52.2% year-over-year. Earnings per share were 65.8% higher year-over-year to RMB9.75 or US$1.36. This growth in our financial results was due to the sale of light duty, medium duty and heavy duty engines, our new energy products, high-force power engines and solutions we provide to our customers. Our sales exceeded the vehicle unit sales in our market categories and demonstrated significant year-over-year sales growth in the first half of 2025. According to data from the China Association of Automobile Manufacturers, CAAM, truck and bus unit market sales, excluding gasoline and electric-powered vehicles in first half decline by 2.6% year-over-year, while our combined truck combustion engine unit sales were up by 38% year-over-year. Our overall truck engine sales increased by 44.3% year-over-year, compared to CAM truck market unit sales declining by 1.8%. Our truck engine unit sales growth was led by a 40.7% year-over-year rise in the important heavy-duty truck set in contrast to the negative 2.8% year-over-year growth in the heavy-duty truck market unit sales, according to CAM. We experienced strong growth in the HD market truck engine segment, or heavy-duty truck engine segment, which is mainly attributable to gas engine sales or heavy-duty trailers. Our overall bus engine unit sales in first half 2025 achieved 8.9% year-over-year growth, compared with CAM bus unit sales of negative 7.5% year-over-year. Our heavy duty bus engine unit sales increased by 14.4% year-over-year, contrasted with a 13.5% decline in CAM heavy duty bus unit sales. Our off-road market unit sales increased by 17.5% year-over-year first half 2025 led by an engine sales increase of 31.5% year over year in the marine and power generation market. Data centers require significant amounts of reliable electric power to function and backup sources of electric power are essential to guarantee uninterrupted data center operations. This demand has generated robust growth in our power generation operations in the first half 2025. Each high subsidiary from CHI Marine and Genset Power Company and Rolls-Royce Power Systems Division has started the second phase cooperation and development of the MTU Each High Power Boat Venture. Included in the second phase will be the MTU Series 4000 oil and gas generation engine, which are expected to begin shipment in late 2025. Also, by adding MTU 2000 model engine and each high-branded V-Seed series diesel engine. In the near future, our power generation business is enhanced to service additional customers and application requirements. Engine unit sales for industrial applications rose by 27.2% year-over-year, and engine sales for agricultural equipment experienced modest unit growth in first half 2025. The successful sales growth of our broad range of engines is a testament to our research and development expertise, our manufacturing proficiency, and large service network. In addition to improving our engine products and automotive technologies, RMD is developing additional new energy products, including those using alternative fuels such as hydrogen, methanol, and ammonia combustion technologies. Despite an increase in total R&D expenses in first half 2025 to US$57.1 million including capitalized costs, R&D represented 4% of revenue in first half 2025 as compared to 4.5% of revenue in first half 2024. Our strategic alliance produced a year-over-year increase in profit propelled by higher sales and profit results from M-EU, E-Chai and improved operations as well across other ventures in first half 2025. As we are well established in the large Chinese engine market, we view international markets as important drivers of future sales growth. Our nearby markets in ASEAN region are prime areas for penetration. Our subsidiary, E-Chai Machinery Power Systems Thailand, is now wrapping up production of a range of diesel engines on the off-road applications. Through a comprehensive strategic cooperation covering technology licensing, component supply, and related support to Vietnam, we are further deepening our market penetration into the growing ASEAN market. The company paid a cash dividend of US$51 for ordinary shares on July 7, 2025, highlighting the company's confidence in future revenue, profits and cash flow generation, and to show our commitment to building shareholder value. Cash and bank balances were RMB 7.8 billion or US dollars 1.1 billion as at June 30, 2035. With that, I would now like to turn the call over to Mr. Chun Sing Lu, our Chief Financial Officer, who will provide more details on the financial results. So thank you and begin your remarks.

Thank you Wing Ming. Now let me review our unaudited six months results ended June 30th, 2025. Realme was RMB 13.8 billion or US dollar 1.9 billion compared with RMB 10.3 billion in first half 2024. The total number of engines sold in first half 2025 increased by 39.9% to 250,396 units compared with 192,743 units in first half 2024. The increase was mainly due to higher sales in almost every engine segment. The company's truck and bus engine unit sales rose by 38% year-on-year in first half 2025. despite a decline of 2.6% weakness in the commercial vehicle market, excluding gasoline and electric powered vehicles, as reported by the China Association of Automobile Manufacturers . The company's truck engines were up 44.3% year over year, compared with negative growth of 1.8% in truck market units sales as reported by CAAM. In particular, heavy and light duty truck engine unit sales were 40.7% and 82.1% higher year over year, in contrast to CAAM mounted unit sales growth of negative 2.8% and 1.3% respectively. The company's heavy duty bus engine sales rose by 14.4% compared to a CAAM bus market unit sales reduction of 13.5%. Overall bus engine unit sales increased by 8.9% in first half 2025 in contrast to a 7.5% decline in overall market unit sales as reported by CAAM. Engine sales to off-road markets increased by 17.5% year-over-year in first half 2025. Engine sales to the marine and power generation markets drove the off-road segments drove with a 31.5% year-on-year increase. Sales for industrial applications rose by 27.2% year-over-year in first half 2025, while engine sales for on cultural equipment experience model growth in first half 2025. Gross profit increased by 30.3% to RMB 1.8 billion or USD 257 million from RMB 1.4 billion in first half 2024. The increase was mainly due to higher sales volume. Overall gross margin was 13.3% in first half 2025 compared with 13.7% in first half 2024. Other operating income increased by 27.2% to RMB 221.4 million or USD 30.9 million compared with RMB 174.1 million in first half 2024. The increase was mainly driven by the recognition of technology licensing fees and the higher rebate or value-added taxes. Research and development R&D expenses increased by 21.1% to RMB $476.7 million or USD $66.6 million compared with RMB $393.6 million in first half 2024 due to higher experimental and personnel costs. Total R&D expenditures including capitalized costs were RMB 551.7 million or USD 77.1 million representing 4% of revenue in first half 2025 as compared to RMB 463.2 million and 4.5% of revenue in first half 2024. Selling general and administrative SG&A expenses increased by 37.4% to RMB 962.5 million or USD 134.5 million from RMB 755.7 million in first half 2024. This increase was mainly due to higher personnel expenses compared with the same period last year. SG&E expenses represented 7% of revenue for first half 2025 compared with 7.3% for first half 2024. Operating profit increased by 42.3% to RMB $631.7 million or USD $86.9 million compared to RMB $436.9 million in first half 2024. The operating margin was 4.5% in contrast to 4.2% in first half 2024. Higher operating profit and operating margin were achieved by increased sales and gross profit, combined with lower growth in operating expenses. Finance cost decreased by 21.3% to RMB32.2 million, USD4.5 million, from RMB40.9 million in first half 2024, primarily due to lower turnovers and less deals discounting. The share of financial results of the SSO ships and joint ventures grew by 42.6% to a profit of RMB $61.4 million or USD $8.6 million compared with RMB $43.1 million in the first half of 2004. The improvement was mainly driven by higher profits at MTU, Yishai Power Company Limited. Income tax expense increased by 13.4% to RMB $1.4 million 16.2 million or USD 16.2 million compared with RMB 102.4 million in first half 2024. Net profit attributable to equity holders of a company increased by 52.2% to RMB 365.8 million or USD 31.1 million compared with RMB 240.3 million in first half 2024. Basic and diluted earnings per share were RMB 9.75 or USD 1.36 compared with RMB 5.88 in first half 2024. Basic and diluted earnings per share for first half 2025 and first half 2024 were based on the weighted average of 37,518,322 shares and 40,858,000 and 290 shares respectively. We will now go over some key financial highlights at June 30th, 2025. Cash and bank balances were RMB $7.8 billion or USD $1.1 billion compared with RMB $6.4 billion at the end of 2024. Trade and bills receivables were RMB $12.7 billion or USD $1.8 billion compared with RMB 8.8 billion at the end of 2024. Inventories were RMB 4.7 billion or USD 665.4 million compared with RMB 4.7 billion at the end of 2024. Trade and bills payable were RMB 11.9 billion or USD 1.7 billion compared with RMB 8.5 billion at the end of 2024. Short-term and long-term loans and borrowings were RMB $2.2 billion or USD $304.6 million, compared with RMB $2.5 billion at the end of 2024. I will now turn the call over to Kevin for a comment for Q&A session.

Please note, some officers of China Yuchai are remotely calling into the conference call. This may result in a slight delay in providing answers to some questions. We apologize for any inconvenience and thank you for your patience. If you would like to ask questions in Chinese, please kindly translate your own questions into English before turning to management for answers. And before we start the Q&A, we would also like to announce that the management will be attending the forthcoming UBS Conference on September 1st and 2nd and Bank of America Merrill Lynch Conference on September 8th through the 10th. If you are interested in a one-on-one or small group meeting, please contact the salespeople at these banks. Given the tight meeting schedule and travel plans, we will not be able to accept outside meeting requests outside of the conference venues. Now, operator, we are ready for questions.

Thank you, dear participants. As a reminder, if you wish to ask a question, please press star 1-1 on your telephone keypad and wait for your name to be announced. To withdraw a question, please press star, one, and one again. Alternatively, you can submit your questions via the webcast. Please then compile the Q&A queue. This will take a few moments. And now we're going to take our first question. And it comes from the line of Yiming Liu from Guantan Heitong Securities. Your line is open. Please ask your question.

Thank you. This is Yiming, analyst from Guotai Haizhong Securities. Thank you for having me, and congratulations to your very outstanding results for the first half. My question is on the capacity. So do you have any plan to raise your capacity for the JV with MTU or for the GYMCL entity? Thank you.

Good morning, Yiming. This is Kelvin Lai. Regarding on the capacity and then the actually we had sufficient capacity on the MTU, the joint venture side. The only, the bottom line is the supply of the components of which and then limited our production at the present. So if we can have the sufficient component supply from Germany, then we can increasing our capacity there. Our main operation, the huge high operation at the GYMCO, and currently the capacity is about 2,000. And we have an extension plan, and then we'll be ready by end of Q3 or later, early Q4, and then we will have some more extension, about 30% increase of the capacity by end of this year. And so next year, then we can enjoy more productive of the engine.

Okay. Thank you. And the other question for me is on the guidance for the full year. So do you have any guidance on the unit sales for the whole year 2025? And specifically, do you have any guidance for the data center-related generators, how many units of that will be sold for the whole year 2025? Thank you.

Sorry, Mr. Liu. As a policy, we do not provide guidance.

Thank you. Okay. All right. Thanks. Those are all my questions.

Thank you. Thank you. Now we're going to take our next question. And the question comes from . Your line is open. Please ask your question.

Thanks for taking our questions. We have a few questions, actually. First question, does UCHI have 10% or higher market share in long-bore engines for data centers? And also, do you foresee this market share holding or improving going forward?

Don, this is Kelvin again. Thank you for your question. Our market share on the Longboard Engine or the wallet for the data center application, our market share is well ahead of 10% of the global market. And we believe we can maintain a similar share at least at this and next year.

Great, thank you. And when do you... see UCHI's net return surpassing 5% of sales from 2.6% in first half. And can you talk about initiatives to accomplish this objective?

Well, I mean, there's a lot of factors that will determine the return of sales, Donna. Now, there's too many to actually try to pin it down. So for now, we are not really prepared to actually determine So if we announce a target date for the return on sales, that would be, as I said earlier, we do not provide any guidance.

Okay. Thanks. That's all from us. Thank you. Thank you.

Thank you. Dear participants, as a reminder, if you wish to ask a question, please press star 1 1 on your telephone keypad. To ensure everyone has the opportunity to ask a question today, please limit yourself just to two questions. And now we're going to take our next question. And the question comes in the line of Wei Shen from UBS. Your line is open. Please ask your question.

Thank you for taking my question. The first question is about the ASP increase.

you uh did mention that you may consider race asp for data center engines this year in the second half so any um color on this thank you okay uh i think the uh we we have not really uh increased the every seven price for data centers uh much in this year uh as i said i think we We only produce the engine and we sell the engines to our OEM customer. The OEM customer in turn will determine the actual price of the final product, which is the genset that is sell to the actual customer. Yes, our engine price has crossed slightly, but yeah, it has crossed slightly.

Sorry, you mean for the first half or the second half?

For the first half. We do not provide guidance. Again, we do not provide guidance.

Sure. My second question is, you did mention you would like to expand from engine making to generator making. So you will expand the business. Could you give us some color on this?

how will this translate into revenue growth and profit per unit growth now this uh we we actually our core business is really just uh to sell engines and you only do uh gen sets only if uh any customers wanted us to do it right so the reason for this is we do not want to come compete with our customers, the real customers, which is the OEMs. By building the full gen sets, we actually will be competing with customers. So unless the end user has a really specific need for it, otherwise we'd rather not do that and let our customers, which is the OEMs, deal with it. So we do not have a big revenue gain from this.

OK, thank you. Forgot to mention, I'm from UBS. Thank you. Bye. Thank you.

Now we're going to take our next question. And the question comes from from CICC. Your line is open. Please ask your question.

Thank you. I'm from CICC. My question is for, there are two questions. from me. The first question is about the on-highway engines. So we see from this year, Yichai has a strong market share in both truck and bus engines. So I wonder the reason why the company has so strong market share in on-highway engines. And also we see the rapid growth of new energy adoption in China's commercial vehicle sector. So I want to know how our companies see this phenomenon and could this negatively impact the company's engine business? This is my first question. And my second question is that the company holds a significant amount of cash on hand. So can we expect any upcoming capital operation plans or higher shareholder return initiatives in the near future? Thank you.

Okay, let me answer the first question, and then I will leave the second question to our CFO to answer. So regarding on the highways market on the truck and bus sales, Our truck engine sales is much better than last year, mainly because we have some of our new customers from the Tier 1 and Tier 2 OEMs. They started using the Utah engine for their heavy-duty, medium-duty engines mainly. The second reason is also because of the our introduction of the new gas engine, and then which is also highly adapted for the trailer market in the Chinese domestic market. So they are one of the major reasons. Thirdly, because of the export. So the export is one of our major contribution to the growth in the first half of the 2025. Regarding on the bar segment, very similar. Export markets are one of major drive of the growth. And also we had also quite successful on the heavy duty buses segment. And then for those buses and existing 11 meter or 12 meter above. So this is where is our major drive on the growth of the first half. Thank you.

I will take my second question. Thank you for questions. So yes, our cash and bank balances increased quite, you know, handsomely compared to last year, June end of last year. So the cash we will continue to deploy in our capex, including our operational maintenance capex. And also you may notice that our IMD expenses also increased, so that we will continue to use our cash wisely in this aspect. In terms of whether any specific plan in future, that we will not make any comment at this point.

I see. Thank you. Thank you.

Now we're going to take our next question. And it comes from Andy Lee from Daiwa Capital Markets. Your line is open. Please ask your question.

Hi, this is Andy Lee from Daiwa. Congratulations on the result. I just want to ask around. the PowerGen topic. Just quickly want to clarify the 2,000 capacity from Yuchai Brand, you mentioned just now, is it 30% up? I want to clarify that. And what's the execution right now? I understand you have some target or capacity shared in the last call. Is there any update and how's the execution there? And what about the latest negotiation activities with your clients right now from the data center point?

Hello, Andy. It's Kelvin. Thanks for the question. First of all, and then regarding on the huge high brand, I mean, our own greenhouse brand and our factory, currently the production of 2,000 units is already the highest we can do. So we confirmed that there will be about 30% increase or more than 30% increase by end of this year. So at this stage, and then the majority of our high-voltage power engine is going to the data center. And in the first half of the 2025, there's about 650 engines for the data center. And the rest is going for other applications as well. So this is our current time event because the strong demand of the market on the data center projects and I think that no matter how much and every increase and this is difficult to meet up to the current demand. And also this is also risky operation as well. So that we are more in a more conservative way and then into the expansion plan of our our factory so that we will we will see at the how how the markets go on uh in the year 2026 on begin beyond and then before we have any pending for further extension and so let's go ahead to that i mean the 2000 capacity that we have for high horsepower is not entirely for data center so there are other applications as well

that this is useful. But the last portion of it will come to data center. Okay?

Yes, Chess. What about the latest auction or negotiation with your data center clients?

What do you mean?

Any, like the price and color and I remember the last time you mentioned it's quite competitive as well and they do the auction and the pricing are quite, you know, as well. Yes, what was the dynamic there?

Okay, I think for buying the purchase of such magnitude, usually they will ask for tenders. It's not tenders only. They will ask for several suppliers to supply. So a lot of this is done through our OEMs. So the OEMs, we could probably participate in tenders through more than one OEM. because OES is actually the customer and the OES will sell on sale to the end customer. But then in terms of competitiveness, yeah, it's still a very competitive industry that finds a shortage of fantasy right now in the marketplace. So a lot of pricing for this final product of GenSense is determined by our customers.

Got it. Chris, thanks.

Thank you. Now we're going to take our next question. And it comes from Gustavo Freres from Global Securities. Your line is open. Please ask your question.

Yes, hello to everyone. I want to first say congratulations to the team. The results published this morning are amazing. You guys are doing a terrific job. I don't think I recall... seen these numbers, so strong numbers, in the conference calls for a long time. And I guess my question is, I thought, or in my mind, I thought that what was going, what was transformed... Oh, you're breaking up, Mr. Faraz.

We can't hear you. Excuse me, Gustavo? Yes? Can you repeat your question again, please? Excuse me, Gustavo, your line is breaking up. We cannot hear you.

Can you repeat your question again?

Can you hear me now?

Yes, we can.

Okay. Sorry about that. I first want to congratulate the team for what's going on. The numbers published this morning are terrific. So congratulations to everyone. My question is the following. I thought that what was transforming China's Utah was a power generation business unit. But when I look at the release this morning, it's amazing to read that most of the business units are 30% plus up this year while the industry is flat. So there's something else going on. And I just want to understand if you guys find a specific reason for beating the market so badly this first half of the 2025.

Thank you. Right, thanks, Mr. Price. Basically, in the case of vehicles and engines, we team up with the OEMs, our customers, OEMs and customers, who actually are willing to market share in the market. And also, they are willing to use more of our engines as opposed to our competitors' engines. So that one is one of the reasons that that happened. And of course, it didn't happen just overnight. We have been cultivating the relationship for quite a number of years. So the other what we call a significant driver is the export. Our export has been going very well and it's been increasing by double digits over the last several years and still continuing to improve. The good thing about export sales is that we do not need to sell them the National 6 or Euro 6 compliant, it's usually Euro 5 or below simply because the areas, the countries that we export to are all the countries in the world except North America and European markets. So that one does give us a little bit better margin as you understand. So the third driver, of course, this year is the data centers. There's been a huge growth in data centers, and all those competitors who participated in this segment are also seeing very good demand. So we have quite a few things going for us, and they all came together this year.

Thank you very much. Thank you. Thank you. Now we're going to take our next question.

Just give us a moment. And the question comes from Lan of Jiahao Wang from Jiahao Far Securities. Your line is open. Please ask your question.

Thank you for the opportunity and congratulations on your very outstanding performance. My question is, we have a very booming demand for overseas data center markets. Does the company have any plans to expand overseas, including directly sales to overseas internet giants?

Currently, we are working with OEM. They are our major customer. So they cover the domestic market and overseas market as well. So we will maintain this practice. And then they work through our OEM and then for both domestic and overseas market. And there's also some change recently is from the Chinese, the internet, the major player. And then, so they are approaching us and then direct and then to placing the order. So the, we will also, and then they are accepting and then the request and then the work close them with them. But this is not all the, I mean, a lot of the orders come from Myanmar. Major orders are still coming from all year.

Thanks. I'll answer your question. I think the bulk of our sales has gone to the domestic market. The domestic market is actually quite strong. So we have been servicing more of the domestic market. And very little has gone out to the export market, especially in Southeast Asia, like Malaysia, Singapore. There are some, but not that many companies have been successful yet.

OK, thank you.

Thank you. And now we're going to take our next question. And the question comes from Jackie Yu from CGS International. Your line is open. Please ask your question.

Hi. So thank you for taking my question. So my question is about the capacity of the DC engines. I want to first clarify on the number of 2000 units capacity. Could you clarify if this is the overall capacity for the JV part plus the in-house part? And also, could you share for the in-house part, what is the bottleneck for the capacity, please?

Thank you.

Okay. So the 2,000 units that you mentioned, yes, it's for the overall high-horsepower plus four engines. But part of it would be to cater to the data centers. Right now, the constraints that we have is not so much the assembly. We just resolved the casting capacity, which is in the machining capacity. So there's something that we're working on right now. Once we resolve the machining capacity, then we should be able to improve, increase some volume for the wall. Now, this is for the Icai side. Whereas for the MTU side, it's basically the supply of components. The capacity is there, but the components, which comes from all these Western countries, there's limited capacity there themselves, and so they have to allocate the components, and we'll be trying to get as much as we can.

And that's the bottom line.

Thank you. My follow-up on the capacity of the JV part, So from what I understand, MTO is supplying the – so this German component is being supplied to both the China factories and also in other countries. Could you share if this is a concern about the end market ESP, and how much is the difference between the ESP in China market versus overseas market?

Thank you.

I mean, on the joint venture operation, because of the joint venture agreement, there's some component that we need to procure from the German operation. So that's why we are not allowing them to localize those items. And at the moment, the main thing is that those items are being insufficiently tied and being a bottleneck for the whole operation. And those items, they are... not only to supply to China, but they will also supply the worldwide operation of the MCU. So that's why our allocation for the Chinese operation is somehow very limited and then depends on the overall demand of the global market. And there will be some priority for the German operation and also for the US operation as well. So that's why We are always in the, I mean, there's some shortage and then even then we have to order book, order in the book.

Thank you. Thank you very much. Maybe we can take a question from Webcast.

The question is, any chance you will raise the dividend payout and repurchase? We have no plan for delivery purchase right now. But in terms of dividend, I mean, our track record and payment of dividend is quite good, although we do not have a formal dividend payout policy. So we will likely continue to take practice going forward.

Thank you.

Dear participants, as a reminder, if you wish to ask a question, please press star 1 1 on your telephone keypad. Alternatively, you can submit your questions via the webcast. Dear speakers, we'll just give a moment to our participants.

Excuse me, Andy, would you like to ask a question?

just give us a moment and now we have a question from jackie you from cgs international your line is open please ask a question it's great sorry about that

Thank you. And just give us a moment.

And I have a question from Andy Lee from Dewa Capital Markets. Your line is open. Please ask your question.

Hi, can I have a follow-up on the JV profit? I remember last result you mentioned there was another session in your JV that was just reaching breakeven. How is that segment and other segments performing this first half?

Okay, I think that segment that was brought even last year is actually making a little bit more profit this year but it's still not very material yet uh still need some time to develop that so the bulk of the profits from jv or in the associate account this comes from mainly from the mcu joint venture okay got it thank you thank you

We have now reached the end of our question and answer session. I will turn the call back over to Mr. Ho. Please go ahead.

Thank you all for participating in our conference call. We wish each and every one of you good health, and we look forward to speaking with you again. Thank you.

This concludes today's conference call. Thank you for participating. You may now disconnect. My apologies, we just got one more question come through. Are you happy to take?

Yes, please.

Lovely. Just give us a moment. And the question comes from Martin Zhang from HD Capital.

Your line is open. Please ask a question.

Thanks for taking my last question. I just want to clarify that for the data center engine shipment, like how many have you shipped from Yuchai and how many it was shipped from the MTU-GV for the first half of the year?

Martin, the first half of the 2025 and then our own operation, the Yuchai, and then they shipped 650 units for the markets. And the MTU joint venture is 350. So total is about 1,000 altogether for the first half.

Are they all for the data center? Okay, great.

Thank you. This is for data center.

Okay, very clear.

May I get a breakdown for like domestic and overseas? I think you mentioned that for Yuchai yourself that mostly for domestic, but how about for the NTU GLE?

So then you take me and then there's a little bit more share on for the export to our OEM, but still mainly and then for the domestic market.

Yeah. Okay, got it. And I got a last one that, you know, may I ask about your order visibility? I think with your expanded capacity, are you still fully booked this year? And like, if you take a new order, when will be like the I mean, the fastest time that you could deliver.

We actually had a full order book for this year for our Utah brand and also for the joint venture brand. For the next year, on the 2026, the joint venture is starting receiving order.

Okay, thank you. Thanks very much.

Thank you. And this was our last question for today. And we now would like to turn back to Mr. Ho for any closing remarks.

Right. I think we did that earlier. So, yeah, thank you all. We'll speak to you again soon. All right. Thank you.

This concludes today's conference call. Thank you for participating. Have a nice day.