China Yuchai International Limited

Good day and thank you for standing by. Welcome to China Yuchai International Limited Second Half 2025 Financial Results. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. Please be advised that today's conference call is being recorded. I would now like to turn the conference over to Kevin Thies. Please go ahead, sir.

Thank you for joining us today, and welcome to China Yuchai International Limited conference call and webcast for the 2025 second half and year ended on December 31, 2025. Joining us today are Mr. Wei Ming Ho and Mr. Chun-Sin Lo, President and Chief Financial Officer of CYI, respectively. In addition, we have in attendance Mr. Kelvin Lai, General Manager of Operations of CYI and the Chairman of MTU-UCHI Power Company Limited, MTU-UCHI Power. Before we begin, I remind all listeners that the RAP is called 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, target, 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 its 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 the 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-S and under the headings Risk Factors, results of operations, and business overview. And in other reports, file 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 a press release made today or today's conference 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 second half and fiscal year in December 31, 2025. Thereafter, we will conduct a question and answer session. For the purposes of today's call, the 2025 second half and fiscal year numbers are unaudited. The 2024 second half year are unaudited. and the 2024 fiscal year financial results are audited. Financial results are presented in RMB and US dollars. All the financial information presented is reported using the IFRS accounting standards as issued by the International Accounting Standards Board. With that, Mr. Ho, please begin your prepared remarks.

Thank you, Kevin. We are pleased to report a strong sales and profit growth in the second half of the full year of 2025. For second half of revenue in the second half increased by 33.5% year-over-year to RMB 11.8 billion or US dollars 1.7 billion. Our gross profit increased by 58.4% year-over-year to RMB 2.2 billion or US dollars 317 million and our gross margin rose to 18.9%. Our operating profit increased by 193.1% year-over-year to RMB $469.2 million, $66.7 million. Basic and diluted earnings per share improved by 108.7 million year-over-year to RMB $4.57 or $0.65. For fiscal year of 2025, revenue increased by 28.9% to RMB $24.7 billion, or US dollar 3.5 billion. Gross profit increased by 44.3% year-on-year to 4.1 billion RMB or US dollar 578.7 billion US dollar.