Hong Leong Asia’s China Yuchai H1 revenue falls 32.2%
The fall in revenue was attributed to lower motor sales in the half-year.
Hong Leong Asia’s engine manufacturer China Yuchai International Limited reported a fall of 32.2% year-on-year (YoY) to $1.78b in its revenue for the first half of 2022.
Total engines sold in H1 2022 were 180,911 units, 36.6% lower than the same period last year. Truck and bus engine sales declined by 56.8% whilst off-road engine sales decreased by12.7%.
ALSO READ: CapitaLand Investment Limited reports S$346m PATMI in H1
The fall in sales was the direct result of lower sales of commercial vehicles which declined by 49.7% YoY. Truck unit sales fell by 50.9% whilst sales of buses went down by 35.1%. The low industry sales were attributed to lower demand from a high base in H1 2021 which caused weaker commercial vehicle demand.
China Yuchai’s gross profit fell to $277.90m in H1 2022 from $330m from the same time last year. However, gross margins increased by 15.9% in H1 2022 compared to 12.9% in H1 2021, attributable to the improved margin in National VI engine sales and increased sales mix in the off-road segment.
China Yuchai’s shares for the H1 2022 period reached US$0.40 per ordinary share.