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.

And gross margin rose to 16.5%.

Operating profit improved by 82.7% to RMB 1.1 billion or US dollar 155.2 million. Basic and diluted earnings per share increased by 34.4% to RMB 14.32 for year's dollars 2.04. Our revenue growth in 2025 second half and year was generated by higher unit sales in nearly every reporting category. Gross profit and margin were enhanced by the increased unit sales volume, especially for heavy duty and high horsepower engines. Our off-road engine unit sales in 2025 increased by 13% year-on-year with marine and genset engines and industrial engines each recording unit sales growth of over 24% year-on-year. The fast-growing demand for backup generators to provide reliable electric power for data center operations created rapid growth for our engines. Combined sales of MTU H-I power and ICHI-branded high-house power engines to data centers exceeded 2,000 units in 2025, up from 750 units in the prior year. To meet the expected increase in demand for our power generating engines, production capacity expansion is well underway. Exports were an important sales channel as our globalization has been increasing. Our agreement in Vietnam includes ICHI support for construction of a partner production facility, which complements our Thailand production operations. Buses powered by H-I natural gas engines were delivered in Mexico, bringing the total H-I engine count to 2,400 units, powering buses in the Nuevo León region of Mexico. Our foundry began batch delivery of advanced cutting to Germany, demonstrating the acceptance of our custom product quality by the customer. We are expanding our international sales and service support offices. As you believe, potential new international partnerships will strengthen our global reach. Our strategy remains to sell into multiple end markets with a growing and diverse product portfolio. R&D expenses increased by 37.3%, to RMB 1.4 billion or USD 192.3 million in the fiscal year of 2025. Each high continues to enhance engine efficiency and performance of its National 6 and Tier 4 emissions-compliant engines and power generation engines. Progress continues on developing new energy products including alternative fuel engines using hydrogen, methanol, and ammonia combustion technologies. Total R&D expenditure, including capitalized costs, was RMB 1.5 billion, or US dollars, $217.1 million. Our strategic alliances and joint ventures produced a 9.4% year-over-year growth in profits in 2025, propelled by higher sales and profits, mainly by MTO-HR. Recently, we took proactive steps to strengthen our technological capabilities, and supply chain resilience by improving access to key components and advancing our participation in critical technology development. We have acquired a 27.97% equity interest in Danyi at Tiankong Henyang Industrial Technology Company, which is a national high-tech industrial leader specializing in fuel injection system, including common rail system, unit pump, and mechanical pump. In addition, we became a limited partner in the Guangxi Echai Double Growth Fund, a private equity fund focused on investing in emerging and innovative technologies. Our indirect subsidiary, Guangxi Echai Marine and Genset Power Company filed an application for listing with the Hong Kong Stock Exchange in January 2006. The potential listing is subject to review and approval by the Hong Kong Stock Exchange and relevant regulatory authorities and market conditions. We believe this action will provide more resources to enhance that operations growth. Highlighting the company's confidence in future revenue, profits and cash flow generation, we paid a cash dividend of 0.53 cents for ordinary shares in July 2025 to show our commitment to building shareholder value. Cash and bank balances were over RMB $7.9 billion, or US dollars $1.1 billion, as of December 31, 2025. With that, I'd now like to turn the call over to Chen Seng Lu, our Chief Financial Officer, who will provide more details on the financial results.

Chen Seng.

Thank you, Wing Ming.

Now, let me review our unmonitored six-month and four-year results entered December 31, 2025. For the six months, our revenue increased by 33.5% to RMB 11.8 billion or US dollar 1.7 billion compared with RMB 8.8 billion in second half 2024. Total number of engines sold increased by 28.7% to 210,913 units compared with 163,843 units in second half 2024. The increase in the total number of engines sold in the second half of 2025 was primarily driven by a 49.2% year-over-year rise in truck and bus engine unit sales, which significantly outpaced the 13% year-over-year growth in market shares of truck and bus vehicles, excluding gasoline and electric power vehicles, as reported by the China Association of Automobile Manufacturers, CAAM, Truck engine unit sales in second half 2025 rose by 59.4%, led by a 146.1% year-over-year gain in heavy-duty truck engines. Off-road engine unit sales increased by 7.5% year-over-year, led by a strong growth of more than 22% in both industrial and marine and genset unit sales, offsetting lower agricultural engine unit sales. Gross profit increased by 58.4% to RMB 2.2 billion or US dollar 317 million up from RMB 1.4 billion in second half 2024. Gross margin increased to 18.9% in second half 2025 compared with 15.9% in second half 2024. The increase was mainly due to higher unit sales volume, a change of sales mix with higher unit sales of heavy duty and high horsepower engines and continuing construction initiatives. Out of the income decreased by 44.1% to RMB 224.5 million or US dollar 31.9 million compared with RMB 401.5 million in second half 2024. The decrease was mainly due to lower government grants. Research and development expenses increased by 48% to RMB $834.9 million or USD $124.5 million compared with RMB RMB $591.1 million instead of RMB $124.5 million, mainly driven by higher experimental costs, increased personnel expenses, higher mode costs, and impairments related to fuel cell development. Total R&D expenditures, including stabilized costs, were RMB $934.2 billion or USD $138.6 million, representing 8.3% of the revenue in second half 2025, as compared with RMB $726 million or 8.2% of the revenue in second half 2024. Selling general and administrative SG&A expenses increased by 4.9% to IRB 1.1 billion or USD 157.7 million from IRB 1 billion in second half 2024. This increase was mainly due to increased personnel expenses and higher consultancy fees partially offset by lower accounts receivable provisions compared with the same period last year. SG&A expenses represented 9.4% of the revenue in second half 2025 compared with 12% for second half 2024. Operating profit rose by 193.1% to RMB 469.2 million or USD 66.7 million from RMB 160.1 million in second half 2024. Operating margin was 4% compared with 1.8% in second half 2024. The increase was generated by higher unit sales volume, a change of sales mix with higher unit sales of heavy duty and high-horsepower engines and lower energy unit expense as percentage of the total rail yield. Finally, cost decreased by 20.2% to RMB $39.6 million or USD $4.2 million from RMB $37.1 million in SEHA 2024, primarily due to lower bank problems and reduced bills discounting. The share of financial results of the associates and joint ventures decreased by 15.1% to RMB 49.7 million or USD 7.1 million compared with RMB 58.5 million in September 2024. The decrease was mainly due to reduced profits at YMCA Engines Co Ltd. Income tax expense was RMB 213.5 million or US$30.4 million compared with RMB26.4 million in second half 2024. The tax increase was due to higher profits in second half 2025 as compared with second half 2024 and higher different tax expenses. Net profits attributable to equity holders of a company increased by 107.4% to RMB101.6 million or US dollar 24.4 million compared with RMB 82.7 million in second half 2024. Basic and diluted earnings per share was RMB 4.57 or USD 65 cents compared with RMB 2.19 in second half 2024. Basic and diluted earnings per share for second half 2025 and second half 2024 were based on the weighted average of 37,515,322 shares and 37,809,834 shares respectively. Now we will review the unaudited financial results for the fiscal year ended December 31, 2025. Revenue increased by 20.9% to RMB 24.7 billion or USD 3.5 billion compared with RMB 19.1 billion in FY2024. The total number of engines sold in FY2025 increased by 29.4% year-over-year to 461,309 units compared with 356,586 units in FY2024. Truck and bus engine units rose by 42.8% compared with CAM data for vehicle market sales growth excluding gasoline and electric power vehicles of 4.5% for 2025. Total truck engine unit sales rose by 50.7% year over year compared with a 5.9% year over year increase from CAM data for truck unit sales. Heavy duty truck engine sales increased by 80.1% year over year in 2025. followed by a 34.2% year-over-year increase in medium-duty truck engines and a 67.6% year-over-year improvement in light-duty truck engine sales. Off-road engine unit sales increased by 13% year-over-year with both industrial and marine engine set unit sales growth of more than 34% year-over-year offsetting lower agricultural engine unit sales. Gross profit increased by 44.3% to RMB 4.1 billion or USD 578.7 million from RMB 2.8 billion in FY2024. Gross margin increased to 16.5% compared with 14.7% in FY2024. The increase was mainly due to higher unit sales volume, a change of sales mix with higher unit sales of heavy duty and high-horsepower engines, and continuing cost reduction initiatives. Other operating income decreased by 22.5% to RMB 445.9 million or USD 63.4 million compared with RMB 525.7 million in FY2024. This was primarily due to lower bank interest income and reduced government grants. R&D expenses increased by 37.3% to RMB 1.4 billion or USD192.3 million compared with RMB984.7 million in FY2024, primarily driven by higher experimental costs, increased personnel expenses, and impairments related to fuel cell development. Yichai has continued with its initiatives to enhance the engine efficiency and performance of its national 6th and Tier 4 emission standard compliant engines and power generation engines for data centers and marine applications while also advancing its new energy solutions. For the R&D expenditure including capitalized cost was RMB 1.5 billion or USD 217.1 million representing 6.2% of the revenue in FY2025 compared with RMB 1.2 billion or 6.2% of the revenue in FY2024. SGA expenses increased by 14.3% to RMB 2.1 billion or USD 294.7 million representing RMB 8.4 million of the revenue in FY2025 compared with RMB 1.8 billion or 9.5% of the revenue in FY2024. This was mainly due to higher personnel expenses and consultancy fees as well as increased the sales and service expenses that partially offset lower accounts receivable provisions. Operating profit increased by 82.7% to RMB 1.1 billion or US dollar, 155.2 million compared with RMB 587 million in FY2024. The operating margin was 4.4% up from 3.1% in FY2024. Finance cost increased by 20.8% to RMB 61.8 million or USD 8.8 million from RMB 78 million in FY2024 primarily due to lower pension loans. The share of financial results of the associates and joint ventures increased by 9.4% to income of RMB 111.1 million or USD 15.8 million compared with income of RMB 101.5 million in FY2024. The improvement was mainly driven by higher profits of 18.3% at MTU Yishai Power Company Limited and increased profits at Guangxi Programme Yishai Automotive Technology Company, partially offset lower profits at YAC Engine Co Limited. Income tax expense increased by 106% to RMB 329.7 million or USD 46.9 million compared with RMB 128.8 million in FY2024. The tax increase was driven by higher profit in FY2025 as compared with FY2024 and higher different tax expenses. Net profit attributable to the company's shareholders increased by 66.3% to RMB 537.4 million or USD 76.5 million compared with IMB 323.1 million in FY2024. Basic and derivative earnings per share rose by 34.4% to IMB 14.32 of US dollar, 2 US dollar and 4 cents compared with IMB 8.21 in FY2024. Based on the earnings per share for FY2025 and FY2024 were based on the rated average of 37,518,322 shares and 39,335,733 shares respectively. Now we will go through some balance sheet highlights as of December 31,2025. Touch-up bank balances were IMB $7.9 billion or USD 1.1 billion compared with RMB 6.4 billion at the end of FY2024. Trade and Bills Receivables were RMB 10.4 billion or USD 1.5 billion compared with RMB 8.8 billion at the end of FY2024. Event Tories were RMB 5.6 billion or USD 791.8 million compared with RMB 4.7 billion at the end of FY2024. Trade and build payables were RMB 11.1 billion or USD 1.6 billion compared with RMB 8.5 billion at the end of FY2024. Short-term and long-term loans and borrowings were RMB 2 billion or USD 287.4 billion compared with RMB 2.5 billion at the end of financial year 2024. I will now turn the call over to Kevin for a comment for Q&A section.

Mr. Liu, 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 a question in Chinese, please kindly translate your own question to English before turning to the management for answers. And before we start the Q&A, we would also like to announce that management will be attending the forthcoming Jeffries Conference on March 19th, the HSBC Conference on April 14th to the 16th, Bank of America Merrill Lynch Conference in Shenzhen on May 13th, JP Morgan Conference on May 20th to 22nd, and the UBS conference in Hong Kong on May 26th to 29th. If you are interested in a one-on-one or a 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 meeting requests outside the conference venues. Now, operator, we are ready for questions.

Thank you. We will now begin the question and answer session. As a reminder to ask questions, please press star 1 and 1 on your telephone and wait for your name to be announced. To cancel a request, please press star 1 and 1 again.

If you have a question, please press star 1 and 1. If you'd like to ask a question, please press star 1 and 1. Okay, I've seen the questions online.

Okay, so I'll read out the questions from Wailing Tan. So the question is that, thanks for the presentation and congrats on strong results year over year. Can you potentially share more on March? Higher expenses in second half where effective cash rate is about 44%. Okay, I will take these questions. So I think this question, the tax expense, we should look at the full year, right? So from a full year basis, there's a 7% to 8% higher due to the different tax. So on year-on-year basis, we go off about a net basis of $100 million. So that is actually a non-cash item. That is also due to the tenacity of accounting that we look at the future profits for all the entities, and eventually, then we need to impair those different tax assets that should only be accessed. So the company has started to write off those different tax assets, reduce it to the level to sustain for the future profit. That's also part of the accounting requirements that we have done that. So if you exclude that, so it will come down to about 20% to 21% if I can cash rate on a year-on-year basis. So the changes is probably only about 1%, 2% if you look at 2025 and 2024.

Okay, I hope that answers your questions, Wailin. Thank you. We do have questions from the phone line.

The first question comes from Wei Shen of UBS. Please go ahead.

Thank you for a good morning and good evening. Thank you for taking my question. My question is about the other operating income. I found that in 2024 it decreased a lot and I'm wondering what's the reasons and what's the outlook in 2026?

Thank you. Okay, I'm Junsheng here. So your question is on the evasion. The question is on the other way income, right? I thought I confirmed your question. Yes. Okay. So the reduction is mainly due to the lower government grants. So in 2025, probably a lot of people on the call may know that there are quite... the incentive policy issued by the Chinese government. So that has reduced substantially. It's actually half of the government grant that we have received in 2005 compared to 2004. So if your next question is whether that will continue in this trend, that one, again, we won't project that, what will be the incentive from the government. But for now, I would think that the trend probably will remain as 2.025.

Okay, thank you. My next question is about the share of the joint venture cut profit in 2025. Because we only have the combined results, we don't have the details. Karen, do you have the numbers for the MTU joint venture? What's the profit growth for the joint venture? Thank you.

Sorry. Oh, yeah, you go ahead, yeah.

Okay, well, we let Kelvin Lai answer. He's the chairman of MTU. He can tell you all about it.

Okay, yeah, thank you. Thank you for the question. they the joint venture last year and then they generate the um the net profits about 211 million uh rmb so the increasing by 20 22 and then from the year 2024 um but there's the sales volume and also the revenue is much higher about 30 percent plus uh increase um the reason why the profit Not as good as the volume cells or the weaponry generated because of the product mix has been changed. And we sold less the 20-cylinder engine. And the profit and also the weaponry is a little bit lower than the other version.

Okay. Got it. Thank you.

Thank you for the questions. One moment for the next question. Our next question, we have the line from Fiona Lim from Bank of America. Please go ahead.

Hi, good morning and good evening. This is Fiona from Bank of America. So I also have two questions for the management team. The first one is that in the second half in 2025, we see that the company's gross profit margin improved quite a lot year over year. So could you please elaborate more about the reasons behind? And is it because we have more delivery to the power generation clients so that we have a better product mix and has the higher gross margin? That is the first question.

Okay, let me answer that question. Actually, if you look at the unit sales that we had disclosed in the announcement, the unit sales actually got up by about 30%. So that's one of the major reasons why the profits improved is due to the increase in volume. And two, also because of a high horsepower engine, we sold more than we did last year. I mean, again, statistically more. If you look at our numbers, gain in the announcement and got up from 750 to 2000. so those are two major contributions uh contributors to the improved performance of course with a higher volume that we have uh high unit sales that will kind of liberation this cause of that that contributes to the uh better cross margin too okay um so i have a follow-up question so

and the better product mix in 2025. So what's our guidance for 2026?

It's going to be quite challenging, difficult to provide good guidance in China. In China, the sales, a lot of it is due to government policies, driven by government policies. So we haven't seen much yet. Last year, one of the biggest reasons for the increase in revenue or unique sales is because of the government policies. replacement for the johan thing so that one is actually a drive growth uh quite a bit about about vehicle sales and also quite a bit about non-digital services of volume so whether or not the government is going to continue with that and and how strongly we're going to push that next year uh it's going to be seen uh and that will determine the the impact on the overall unit sales roadmap however the good there is a what's called bright spot we see a lot of big demand in the data center last year and that has maintained and we expected to improve this year but it's hard to give you a percentage of the growth so i think we expect that to improve uh by double digit this year for the data centers so overall i think This year's non-data federal sales is going to be more or less the same if the government continues with the, what we call, policies.

Thank you.

So my second question is about our R&D expenses. So in 2025, we see that the R&D expenses increase over 30%. So looking at 2026, what do you expect R&D expenses growth rate and what's our key R&D focuses looking at 2026 and 2027?

R&D expenses for this growth is around about 5% of our revenue. So it goes up to 7% of our revenue. The other one that we should talk about is that what type of research we're working on. There are a few things that we're working on. One of them is about the new energy side of things. We are still developing and continue to develop on the new energy side, particularly in the range extender ev and and try to try to get our system which is already commercialized in uh to be stacked into or developed into our customers vehicle and other areas will be new uh kind of uh new areas new energy uh systems things like ammonia metal and hydrogen power combustion engines other than twin cells right so uh if you And also, the Chinese government is now also considering introducing national seven emission standards in the coming two to three years. So for that, we are also starting to do some R&D to get ourselves ready for that emissions requirement. So there are quite a few areas that we're working on in addition to a continuous improvement on the product, getting it more efficient and more fuel efficient as well.

So there are quite a few areas moving on.

Thank you. That's very clear. And that's all my questions. Thank you.

For the questions, one moment for the next question.

Our next question comes from Ying Si of CICC. Please go ahead.

Thanks and congratulations. So I have two questions to ask. The first one is about the future business of the HPP engines. We noticed that Caterpillar has announced its reciprocating generators can be used as prime power for data centers. So how does Yuchai view this industry trend, and do we have some existing natural gas engines, engine products and technologies to support this industry trend? This is my first question. Thank you.

Let me take this question. The high horsepower engine, the business forecast, and then it still depends on the development of those internet service providers and then how fast they build the data center. So we do expect there will be still a growth in the year 2026 when comparing to 2025, but we don't have the exact figure because so far we don't receive I mean all the order and then from the wireless customer. Regarding on your question regarding on the natural gas generator and then from UChai and then we do have our natural gas engine for the power generation. We have the technology and we have the right product as well and our product of the natural gas engine will be very similar to the diesel engine and then they have the using our 16 vc engine and that will be generate um i mean the uh about to make a walk uh for the for the power generation using natural gas uh but uh so far and then the application of the natural gas for house powers uh so mainly on the industrial application uh at the moment because in the region of uh of the china or asia and then the i mean the customer and then we were considering the cause of the engine and they are not using the natural gas engine for the data center at this stage.

Very clear and thanks. So my second question is about our significant market share gain in truck and bus engines, especially in 2025. So how do you view the 2026 outlook for domestic truck and bus industry sales and whether market share growth can be sustainable? This is my second question. Thank you.

Okay. So you're talking about vehicle engines, the major vehicle for OEMs in the market, some of them are using our engines. In particular, I think we have been working with the vehicle OEMs for quite a while to get our engines certified and designed for the vehicles. And one or two of them have really come to fruition last year. So that's why we see a big sort of growth in our heavy liquid truck segment of market. So with that, we expect that to continue to 2026, barring any unforeseen.

So yeah, we do expect to see some continued growth in that area.

Got it. Thank you.

Thank you for the questions.

As a reminder, if you like the last question, please press star 11. Our next question comes from .

Please go ahead. Hello.

Good morning and good evening. Thank you very much for taking my question. So I've got two questions. The first one is about your backlog. especially for those associated with the data center business. So if we compare your backlog right now and like half a year ago, so I'm just wondering, is that getting larger? Or if you look at the demand and supply, so is the supply getting more and more constrained? Is it getting more and more tighter? Is that what is happening for those data center engines? Thank you.

Kelly?

uh uh it has to be um uh i mean separate the um the operation because uh for the uh utah brand high horsepower engine the uh most of the components supply they are they are generally come from the china so that the um i mean on the on the supply side and then we didn't have uh much problem there and then because uh They had providing the most component for our engine assembly. But the cost-wise, and then they had increasing the price this year, mainly because of the raw material increasing recently. And so that cost and then our cost mark up. But for the joint venture side, we do have the bottleneck. And then regarding on the supply, because of the supply chain from from our partners and from Germany and then they do have some constraint and causing the the supply of the component and the Will be will be limited and then fall for the operation in in the Chinese joint venture All right, thanks, but I guess I didn't get it clear so I'm trying to ask about your backlog I mean the order that you receive from your customer and

So is the size of that getting larger during the past few months?

We are still working very hard to fulfill those requirements. And the delivery so far is still about between three to four months anyway.

All right. Okay.

And my second question is about exports. So do you see any, like, increase on your European business? And what is the, like, the detailed segment about that? Is that about, like, diesel engines or gas engines? Or, I mean, what is the outlook of your European business? Thanks.

Are you referring to high-horsepower engine or referring to the truck engine?

Mostly about the large horsepower ranges.

Okay. Yeah. For the export market, if we are referring to the Utah brand, I mean the Utah brand operation, our export markets only count for a small percentage, about 10%, and mainly in Asia. But for the MTO joint venture side, there will be, I mean, because we sell food, we sell food by our OEM and those, and then we'll have about over 20% or 25% of the export opportunity. And it's also on growing as well.

Those exports are to the Asian market?

Yeah, Asian market as well, yeah.

All right, I see. Thank you very much. Thank you for the questions.

At this time, there are no further questions from the phone line. We have now reached the end of our Q&A session. I would like to turn the call back over to Mr Ho.

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

Good to this conference call. Thank you for your participation. You may now disconnect.