SINGAPORE, June 7, 2024
/PRNewswire/ -- China Yuchai International Limited (NYSE:
CYD) ("China Yuchai" or the "Company") today announced its
Board of Directors has approved two equity incentive plans,
proposed to be implemented by its Chinese subsidiaries, Guangxi
Yuchai Machinery Company Limited ("GYMCL") and Guangxi Yuchai Marine and Genset Power Co., Ltd.
("MGP"), in respect of equity interests in MGP
(collectively, the "Equity Plans"). GYMCL is a
76.41%-subsidiary of China Yuchai and MGP is a wholly-owned
subsidiary of GYMCL.
Pursuant to the Equity Plans, the registered capital of MGP will
be increased by RMB28.00 million
(approximately US$3.94 million),
representing approximately 6.54% of the enlarged equity interest of
MGP (the "MGP Interest"). The participants of the Equity
Plans (the "Participants"), who are selected directors,
officers and other employees of GYMCL and its subsidiaries
(including MGP) (the "GYMCL group"), will contribute an
aggregate amount of RMB82.88 million
(approximately US$11.66 million) for
the subscription of the MGP Interest, at a price of RMB2.96 (approximately US$0.42) per RMB1.0
registered capital, by separate partnership vehicles through which
the Participants will acquire indirectly their respective portions
of the MGP Interest. The Participants in turn will hold
direct interests in such partnership vehicles in accordance with
the terms and conditions of the Equity Plans (including various
lock-up restrictions as specified under the Equity Plans).
The Equity Plans are subject to and will take effect upon the
approval by GYMCL's shareholders at its shareholders' meeting to be
held on June 20, 2024.
With the implementation of the Equity Plans, GYMCL aims to
achieve the objective of allowing the Participants whose
contributions are important to the long-term growth of the GYMCL
group to acquire an equity stake in a key entity of the GYMCL group
so as to better align their interests to those of GYMCL and
motivate and incentivize them for their continued contributions,
dedication and loyalty to the GYMCL group.
Under IFRS, there is expected to be a charge of share-based
expense to the Company's profit and loss account in relation to the
Equity Plans (the "Share-based Expense"), and such charge
will be determined based on, among other things, a valuation of
MGP. The Company currently expects to adopt a valuation of
MGP in the amount of RMB2.48 billion
(approximately US$349.14 million),
representing a fair value of MGP as of December 31, 2023. After applying the Finnerty
Model, the fair value of the MGP Interest is estimated at
RMB131.69 million (approximately
US$18.52 million). The Share-based
Expense is estimated at RMB48.81
million (approximately US$6.87
million) which is to be amortized over six years in view of
the relevant lock-up restrictions imposed on the Participants under
the Equity Plans (including a 3-year moratorium on their interests
in relevant partnership vehicles in the event of a public listing
by MGP).
Unless otherwise stated, all currency translations of
United States dollars
("US$") and Chinese Renminbi ("RMB") used herein are
based on the exchange rate of US$1.00
: RMB7.1088 as at May 31, 2024 as published by as published by
People's Bank of China (PBOC).
About China Yuchai International
China Yuchai, through its subsidiary, Guangxi Yuchai Machinery
Company Limited ("Yuchai"), engages in the manufacture, assembly,
and sale of a wide variety of light-, medium- and heavy-duty
engines for trucks, buses, passenger vehicles, construction
equipment, marine and agriculture applications in China.
Yuchai also produces diesel power generators. The engines
produced by Yuchai range from diesel to natural gas and hybrid
engines. Through its regional sales offices and authorized
customer service centers, Yuchai distributes its engines directly
to auto OEMs and retailers and provides maintenance and
retrofitting services throughout China. Founded in 1951,
Yuchai has established a reputable brand name, strong research and
development team and significant market share in China with high-quality products and reliable
after-sales support. In 2023, Yuchai sold 313,493 engines and
is recognized as a leading manufacturer and distributor of engines
in China. For more information, please visit
http://www.cyilimited.com.
Safe Harbor Statement:
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. The words "expect", "estimate", "aim", "will", "would" 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 are based on current expectations,
beliefs and assumptions which are subject to change at any time.
China Yuchai cautions that these statements, particularly, those
related to financial figures or matters, by their nature involve
significant risks and uncertainties, and actual results may differ
materially. All forward-looking statements are applicable only as
of the date they are made and China Yuchai specifically disclaims
any obligation to maintain or update the forward-looking
information, whether of the nature contained in this Form 6-K or
otherwise, in the future.
For more information:
Investor Relations
Kevin Theiss
Tel: +1-212-510-8922
Email: cyd@bluefocus.com
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SOURCE China Yuchai International Limited