Thomas Phung
谢谢，Kevin。2019年第二季度，中国GDP同比增长6.2%，较2018年第二季度的6.7%有所放缓。这是过去27年来最慢的经济增速。经济本已处于放缓趋势，而当前中美贸易问题的影响所带来的担忧进一步增加了商业不确定性，这也影响了中国国内消费者。2019年上半年，中国对美国的出口下降了8.1%。在汽车市场，消费者还受到政府实施新机动车排放标准（国六标准）的影响，该标准于7月1日在部分省份和一线城市实施，比强制实施日期提前了一周。根据中国汽车工业协会（CAAM）报告的数据，2019年第二季度，不包括汽油动力和电动车辆的商用车销量下降了13.9%。卡车市场销量下降了14.1%，其中中卡销量下降了36.5%。客车市场下降了12.0%，中轻型客车销量均出现显著下滑。电动客车销量的持续增长继续对内燃机客车销量产生负面影响。然而，尽管客车销量同比有所下降，但与2019年第一季度相比，第二季度重型、中型和轻型客车销量均有所增长。政府减少对电动客车的补贴可能有助于提升中国部分客车市场内燃机客车的销量。与整体市场下滑形成对比的是，我们的发动机总销量同比增长了9.3%，其中卡车发动机销量增长19.3%，非道路发动机销量增长8.2%。这9.3%的增长反映了2019年第二季度发动机总销量增至110,059台。重型和中轻型卡车发动机销量的增长是道路用发动机销量增长的主要驱动力。我们报告的非道路板块实现了同比增长，其中工业发动机销量实现了两位数增长。非道路发动机销售在我们的销售组合中贡献日益增长。2019年上半年发动机总销量为211,359台，去年同期为210,788台。2019年第二季度净收入同比增长15.6%，达到49亿元人民币（7.072亿美元），而2018年第二季度为42亿元人民币。其他营业收入增至9,880万元人民币（1,440万美元），主要原因是2019年第二季度政府补助增加。我们的营业利润同比增长6.5%，达到2.922亿元人民币（4,250万美元），利润率为6%。归属于中国玉柴股东的净利润增至1.470亿元人民币（2,140万美元），而2018年第二季度为1.321亿元人民币，基本和稀释每股收益为3.60元人民币（0.52美元）。2019年5月，我们报告称，由安徽安凯汽车股份有限公司制造、搭载玉柴发动机的600辆客车已交付给沙特阿拉伯。该订单是截至当时2019年中国客车最大的单笔现货订单。Hafil运输公司接收了这批12米客车，全部配备玉柴YC6L发动机。在其约12,000辆客车车队中，Hafil有近8,000辆客车由玉柴发动机提供动力。2019年第二季度，包括资本化成本在内的研发总支出为1.767亿元人民币（2,570万美元），占净收入的3.6%，而2018年第二季度为3.7%。研发总投资从2019年第一季度的1.195亿元人民币有所增加。研发费用重点用于提升我们当前国六和Tier 4发动机在道路和非道路市场的性能和质量。此外，我们正在加强技术，力争成为首批拥有满足更严格的国六b标准发动机产品组合的企业。我们已经推出了YCK08发动机型号，这是中国首款获得国六b排放标准认证的国产柴油发动机。K08型号的性能显著超越了即将实施的国六排放标准。我们继续坚持率先满足新排放标准并在强制实施前达标的战略。除了10款符合Tier 4标准的非道路发动机和14款符合国六排放标准的道路发动机外，我们最近还在7款新产品中引入了4款新能源动力总成系统。新推出的新能源动力总成系统包括ISG发电动力总成YC IE-Power、e-CVT功率分流混合动力总成YC e-CVT、集成电驱动桥动力总成YC e-Axel以及燃料电池系统YC FCS。我们的新能源产品战略正在不断发展，预计未来将推出其他新能源产品。这些技术和产品将扩展我们的其他战略举措，包括我们的MTU玉柴动力有限公司合资企业（目前正在销售MTU 4000系列发动机）以及Eberspaecher玉柴排气技术公司（该公司在开发新型排气排放控制系统方面持续取得进展）。我们还与广西汽车集团（中国重型卡车领先制造商）签署了战略合作伙伴关系，最近又与福田汽车集团签署了新的战略合作伙伴关系，为国六合规发动机和技术、海外市场开发以及新能源产品开发提供产品支持。我们相信这些新的合资企业和联盟将有助于推动汽车新技术和产品的发展，从而使中国玉柴转型为更具能力、行业领先、提供更广泛先进产品的企业。截至2019年第二季度末，我们的资产负债表保持强劲。现金及银行存款为67亿元人民币（9.740亿美元）。贸易及票据应收款增至84亿元人民币（12亿美元）。存货下降至23亿元人民币（3.343亿美元）。2019年7月19日，我们与股东分享了成功，派发现金股息每股0.85美元。2019年第二季度，我们的子公司Venture Delta Limited（VDL）出售了其持有的Thakral Corporation Limited的10,122,667股有投票权股份中的4,782,764股。现金对价为2,391,382新加坡元，在Thakral的持股比例从交易前的7.74%降至交易后的4.08%。我们继续评估剩余股份的处置方案。我们对近期在特定细分市场超越行业表现的销量成功感到鼓舞。我们相信政府将继续采取措施以保持经济增长，同时解决国际贸易问题。我们已采取的战略行动将在未来带来更多增长机会。现在让我回顾一下我们2019年第二季度的业绩。2019年第二季度净收入同比增长15.6%，达到49亿元人民币（7.072亿美元），而2018年第二季度为42亿元人民币。2019年第二季度，广西玉柴机器股份有限公司（GYMCL）销售的发动机总数为110,059台，较2018年第二季度的100,675台增长9.3%。增长主要得益于卡车和非道路板块发动机销量增加，特别是重型和中轻型卡车板块的销量，这完全抵消了客车板块整体销量的下滑。根据中国汽车工业协会（CAAM）报告的数据（不包括汽油动力和电动车辆），2019年第二季度客车销量下降了12.0%，而卡车销量下降了14.1%。根据CAAM数据，2019年第二季度，不包括汽油动力和电动车辆销量的商用车销量较2018年第二季度下降了13.9%，而GYMCL在商用数字市场的销量有所增长。毛利润同比下降7.3%，至7.129亿元人民币（1.037亿美元），而2018年第二季度为7.690亿元人民币。毛利率为14.7%，而2018年第二季度为18.3%。下降主要归因于现阶段生产国六发动机产生的较高成本。其他营业收入为9,880万元人民币（1,440万美元），而2018年第二季度为3,370万元人民币。增长主要由于2019年第二季度政府补助增加。研发费用同比下降29.4%，至1.105亿元人民币（1,610万美元），而2018年第二季度为1.565亿元人民币。2019年第二季度研发支出较低，主要是由于符合国际财务报告准则资本化条件的国六和Tier 4发动机开发成本资本化。2019年第二季度，研发资本化金额为6,620万元人民币（960万美元）。公司继续进一步开发分别用于道路和非道路市场的新国六和Tier 4发动机。2019年第二季度，包括资本化成本在内的研发总支出为1.767亿元人民币（2,570万美元），占净收入的3.6%，而2018年第二季度为3.7%。销售、一般及管理费用同比增长10%，从2018年第二季度的3.718亿元人民币增至4.089亿元人民币（5,950万美元）。增长主要源于2019年第二季度保修费用、折旧费用和人员相关成本增加。销售、一般及管理费用占收入的8.4%，而2018年第二季度为8.8%。营业利润同比增长6.5%，从2018年第二季度的2.745亿元人民币增至2.922亿元人民币（4,250万美元）。营业利润率为6.0%，而2018年第二季度为6.5%。财务成本同比增长9.3%，从2018年第二季度的2,960万元人民币增至3,240万元人民币（470万美元）。财务成本增加主要由于借款和票据贴现较2018年第二季度增加。归属于中国玉柴股东的净利润为1.470亿元人民币（2,140万美元），而2018年第二季度为1.321亿元人民币。基本和稀释每股收益为3.60元人民币（0.52美元），而2018年第二季度为3.23元人民币。2019年第二季度基本和稀释每股收益基于40,858,290股的加权平均股数，而2018年第二季度分别为40,858,290股和40,872,405股。现在我将介绍2019年上半年的业绩。净收入为90亿元人民币（13亿美元），去年同期为85亿元人民币。2019年上半年，GYMCL销售的发动机总数为211,359台，去年同期为210,788台。增长主要得益于重型和中轻型卡车以及非道路板块（特别是农用发动机）的发动机销量增加，完全抵消了客车板块销量的下滑。毛利润为15亿元人民币（2.144亿美元），去年同期为16亿元人民币。毛利率下降至16.3%，去年同期为19.0%。下降主要归因于现阶段生产国六发动机产生的较高成本。其他营业收入为1.428亿元人民币（2,080万美元），去年同期为8,420万元人民币。增长主要由于政府补助较去年同期增加。研发费用同比下降34.0%，至1.824亿元人民币（2,650万美元），去年同期为2.764亿元人民币。2019年上半年研发费用较低，主要是由于符合国际财务报告准则资本化条件的国六和Tier 4发动机开发成本资本化。2019年上半年，研发资本化金额为1.139亿元人民币（1,660万美元）。公司继续推进开发符合中国下一阶段排放标准（国六和Tier 4）的新发动机以及提升发动机性能和质量的举措。2019年上半年，包括资本化成本在内的研发总支出为2.963亿元人民币（4,310万美元），占净收入的3.3%，去年同期为3.2%。销售、一般及管理费用从去年同期的7.317亿元人民币增至7.851亿元人民币（1.142亿美元）。增长主要由于保修费用增加以及折旧较去年同期增加。销售、一般及管理费用占2019年上半年净收入的8.7%，去年同期为8.6%。营业利润同比下降7.0%，从去年同期的6.987亿元人民币降至6.494亿元人民币（9,450万美元）。营业利润率为7.2%，去年同期为8.2%。财务成本从去年同期的5,210万元人民币增至5,760万元人民币（840万美元），增加了约550万元人民币。财务成本增加主要由于借款较去年同期增加。归属于中国玉柴股东的净利润为3.450亿元人民币（5,020万美元），去年同期为3.750亿元人民币。基本和稀释每股收益分别为8.44元人民币（1.23美元），而去年同期分别为9.15元人民币和9.17元人民币。2019年六个月的基本和稀释每股收益基于40,858,290股的加权平均股数，而去年同期基本和稀释每股收益分别基于40,858,290股和40,888,876股的加权平均股数。截至2019年6月30日的资产负债表亮点。现金及银行存款为67亿元人民币（9.740亿美元），2018年底为61亿元人民币。贸易及票据应收款为84亿元人民币（12亿美元），2018年底为74亿元人民币。存货为23亿元人民币（3.343亿美元），2018年底为25亿元人民币。贸易及票据应付款为56亿元人民币（8.202亿美元），2018年底为46亿元人民币。短期和长期银行借款为21亿元人民币（3.080亿美元），2018年底为20亿元人民币。至此，主持人，我们准备开始问答环节。
Thomas Phung
Thank you, Kevin. For the second quarter of 2019, China GDP grew a slower 6.2% compared with 6.7% in the second quarter of 2018. This is a slower economic growth in the last 27 years. The economy was already on a slowing trends and concern over the impact of the current trade issue with the U.S. have created additional business uncertainty, which also affecting domestic consumer in China. China’s export to the U.S., United States, declined by 8.1% for the first six months of 2019. In the auto market, consumer also are affected by the government implementation of new automotive emission standard, the National VI, which were implemented on July 1 in some provinces and Tier 1 city, representing the launch of National VI a week ahead of the mandatory implementation date. According to data reported by the China Association of Automobile Manufacturers --CAAM in the second quarter of 2019 unique sales of the commercial vehicle excluding gasoline powered and electric powered vehicle decreased by 13.9%. The truck market unit sales declined by 14.1% led by a 36.5% decrease in the medium-duty truck sale. The bus market decreased by 12.0% with a significant decline in both medium and light-duty bus sales. The rate of EV bus sales continued to negatively affect bus sales powered by internal combustion engines. However, while the bus sales declined on a year-over-year basis, second quarter bus sales increased in the heavy, medium and light-duty segment compared with the first quarter of 2019. The government decreasing incentive for electrical buses may have helped -- helping to increase internal combustion engine sales in this in some bus market within China. In contrast to the decline in the overall market our total engine sales increased by 9.3% year-over-year led by a 19.3% increase in truck sales and a 8.2% increase in off-road engine sales. This 9.3% growth reflect an increase in the total number of engines sold to 110,059 unit in the second quarter of 2019. Higher heavy and light-duty truck engine sales will primarily generate the on-road unit sales increase. Our reported off-road segment experienced year-over-year growth led by double-digit growth in industry engine sales. Off-road engine sales are a growing contributor to our sales mix. Total number of engines sold in the first six months of 2019 were 211,359 units compared with 210,788 units in the same period last year. Net revenue for the second quarter of 2019 increased by 15.6% to RMB4.9 billion, US$707.2 million compared with RMB4.2 billion in the second quarter of 2018. Other operating income increased to RMB98.8 million US$14.4 million mainly because of higher government grant in the second quarter of 2019. Our operating profit increased by 6.5% year-over-year to RMB292.2 million, US$42.5 million with a margin -- with a 6% margin. Our net profit attributed to China Yuchai shareholder rose to RMB147.0 million, US$21.4 million compared with RMB132.1 million in the second quarter of 2018 with basic and diluted earning per share of RMB3.60, US$0.52. In May 2019, we reported that 600 buses manufactured by Anhui Ankai Automobile Company Limited and propelled by Yuchai engines have been delivered to Saudi Arabia. This order was the largest single spot order for Chinese buses in 2019 up to that time. Hafil Transportation Company took delivery of the 12-meter all equipped with Yuchai's YC6L engine. Of the approximate 12,000 buses in their fleet, Hafil has nearly 8,000 buses powered by Yuchai engine. In the second quarter of 2019 total R&D expenditure including capitalized costs was RMB176.7 million US$25.7 million and it represent 3.6% of net revenue compared with 3.7% in the second quarter of 2018. This total R&D investment increased from RMB119.5 million in the first quarter of 2019. R&D expenses focused on improving the performance and quality of our current National VI and Tier 4 engine for the on and off-road markets. Furthermore, we are enhancing our technology to be among the first with our portfolio of engines meeting the even more strict National VIb standard. We have already introduced our model YCK08 engine, which is the first domestic diesel engine being certified for the National VIb emission standard in China. The K08 model significantly outperformed the upcoming National VI emission standard. We continue with our strategy of being among the first to meet new emission standard and before their mandatory implementation. In addition to 10 off-road engine compliant with Tier 4 and 14 on-road engine compliant with the National VI emission standard, we have recently introduced four new energy powertrain system in seven new products. The newly introduced new energy powertrain systems include the ISG power generation powertrain YC IE-Power and e-CVT power-split hybrid powertrain YC e-CVT, an integrated electric drive axel powertrain YC e-Axel, and a fuel cell system YC FCS. Our strategy for new energy product is evolving and we expect to introduce other new energy product in the future. This technology and products will expand upon our other strategic actions including our MTU Yuchai Power Co. Limited joint venture, which is now selling the MTU Series 4000 engine and the Eberspaecher Yuchai Exhaust Technology Company, which continued to progress in developing new exhaust emission control system. We had also signed a strategic partnership with Guangxi Holding a leading producer of heavy-duty trucks in China and more recent a new strategic partnership with Foton Motor Group for product support for National VI-compliant engine and technology, oversea market development and new energy products development. We believe this new venture and alliance will help new automotive technology and products thereby transitioning China Yuchai into more capable industry-leading offering a wider range of advanced products. Our balance sheet remained strong at the end of the second quarter of 2019. Cash and bank balance were RMB6.7 billion, US$974.0 million. And trade and bills receivables increased to RMB8.4 billion, US$1.2 billion. And inventories are down to RMB2.3 billion, US$334.3 million. On July 19, 2019, we shared our success with shareholders with a cash dividend of US$0.85 per share. During the second quarter of 2019, our subsidiary Venture Delta Limited, VDL sold 4,782,764 of its 10,122,667 voting shares held in Thakral Corporation Limited. The cash consideration was SGD 2,391,382 and ownership in Thakral was reduced from 7.74% before the transaction to 4.08% after the transaction. We continue to review our options on the remainder share. We are encouraged by our recent unit sales success as we outpace the industry performance in specific segment. We believe the government will continue to instill belief to keep the economic growth as it works out the international trade issue. Strategic action we have taken will result in more growth opportunity in the future. Now let me review our second quarter result for 2019. Net revenue for the second quarter of 2019 increased by 15.6% to RMB4.9 billion, $707.2 million compared to RMB4.2 billion in the second quarter of 2018. The total number of engines sold by GYMCL during the second quarter of 2019 was 110,059 units, an increase of 9.3% compared with 100,675 units in the second quarter of 2018. The increase was mainly due to higher engine sales to the trucks and off-road segment, particularly unit sales to both the heavy and light-duty truck segment, which more than offset an overall sales decline in the past Engine segment. According to the data reported by the China Association of Automobile Manufacturers, CAAM excluded sales of gasoline-powered and electric vehicles in the second quarter of 2019. Sales of buses decreased by 12.0% while truck sales decreased by 14.1% According to the CAAM in the second quarter of 2019, commercial vehicles excluding sales of gasoline-powered and electric vehicles decreased by 13.9% compared to the second quarter of 2018 while GYMCL sales to the honored commercial digital market increased. Gross profit decreased by 7.3% to RMB712.9 million, US$103.7 million compared with RMB769.0 million in the second quarter of 2018. Gross margin was 14.7% compared with 18.3% in the second quarter of 2018. The decrease was mainly attributed to higher costs incurred in production of National VI engines at the present stage. Other operating income was RMB98.8 million, US$14.4 million compared with RMB33.7 million in the second quarter of 2018. The increase was mainly due to higher government grant in the second quarter of 2019. Research and development, R&D expenses decreased by 29.4% to RMB110.5 million, US$ 161 million compared with RMB156.5 million in the second quarter of 2018. Lower R&D expenditure in the second quarter of 2019 was mainly due to capitalization of the development costs for National VI and Tier 4 engine that met the IFRS capitalization criteria. In the second quarter of 2019, the R&D expend -- R&D calculation amount was RMB66.2 million, US$9.6 million. The company continues to further develop its National -- new National VI and Tier 4 engine for the on- and off-road market, respectively. In the second quarter of 2019, the total R&D expenditure including capitalized cost was RMB176.7 million, US$25.7 million and it represents 3.6% of net revenue compared with 3.7% in the second quarter of 2018. Selling, general & administrative. SG&A expenses increased by 10% to RMB408.9 million, US$59.5 million from RMB371.8 million in the second quarter of 2018. The increased primary results from higher warranty expenses, deprecation expenses and personnel related costs in the second quarter of 2019.SG&A expenses represent 8.4% of revenue compared with 8.8% in the second quarter of 2018. Operating profit increased by 6.5% to RMB292.2 million, US$42.5 million from RMB274.5 million in the second quarter of 2018. The operating margin was 6.0% compared with 6.5% in the second quarter of 2018. Finance costs increased by 9.3% to RMB32.4 million, US$4.7 million from RMB29.6 million in the second quarter of 2018. Higher finance costs mainly result from higher borrowing and bill discounting compared with second quarter of 2018. Net profit attributable to China Yuchai's shareholders was RMB147.0 million, US$21.4 million, compared with RMB132.1 million in the second quarter of 2018. Basic and diluted earnings per share were RMB3.60, US$0.52 compared with RMB3.23 in the second quarter of 2018. Basic and diluted earnings per share in the second quarter of 2019 was based on a weighted average of 40,858,290 shares, compared with 40,858,290 shares and 40,872,405 shares respectively in the second quarter of 2018. Now I will go over the six -- first six months result of 2019. Net revenue was RMB9.0 billion, US$1.3 billion, compared with RMB8.5 billion in the same period last year. The total number of engines sold by GYMCL in the first half of 2019 was 211,359 units compared with 210,788 units in the same period last year. The increase was mainly due to higher engine sales in the heavy and light-duty trucks and off-road segment, particularly agricultural engine, which more than offset the sales decline in the bus segment. Gross profit was RMB1.5 billion, US$214.4 million, compared with RMB1.6 billion in the same period last year. Gross margin decreased to 16.3% as compared with 19.0% a year ago. The decline was mainly attributed to higher costs incurred in the production of National VI engine at the present stage. Other operating income was RMB142.8 million, US$20.8 million, compared with RMB84.2 million in the same period last year. The increase was mainly due to higher government grants than in the same period last year. R&D expenses declined by 34.0% to RMB182.4 million, US$26.5 million, compared with RMB276.4 million in the same period last year. Lower R&D expenses in the first half of 2019 was mainly due to the capitalization of development costs for National VI and Tier 4 engine that met the IFRS capitalization at Europe. In the first half of 2019, the R&D capitalization amount was RMB113.9 million US$16.6 million. The company continued with its initiatives to develop new engines complaint with China's next emission standards, National VI and Tier 4 and to improve engine performance and quality. In the first half of 2019, the total R&D expenditure including capitalized cost was RMB296.3 million US$43.1 million represent 3.3% of the net revenue compared with 3.2% in the same period last year. SG&A expenses increased to RMB785.1 million, US$114.2 million from RMB731.7 million in the same period last year. The increase was mainly due to higher warranty expenses and increased depreciation compared with the same period last year. SG&A expenses represent 8.7% of the net revenue for the first half of 2019 and 8.6% in the same period last year. Operating profit decreased by 7.0% to RMB649.4 million US$94.5 million from RMB698.7 million in the same period last year. The operating margin was 7.2% compared with 8.2% in the same period last year. Finance costs increased to RMB57.6 million, US$8.4 million from -- sorry out from RMB52.1 million in the same period last year, an increase of approximately RMB5.5 million. Higher finance costs mainly result from an increase in borrowing compared to the same period last year. Net profit attributable to China Yuchai's shareholder was RMB345.0 million, US$50.2 million compared with RMB375.0 million in the same period last year. Basic and diluted earnings per share were RMB8.44, US$1.23 compared with RMB9.15 and RMB9.17, respectively in the same period last year. Basic and diluted earnings per share in the six months of 2019 were based on a weighted average of 40,858,290 shares and basic and diluted earnings per share were based on a weighted average of 40,858,290 shares and 40,888,876 shares, respectively in the same period last year. Balance sheet highlights as at June 30th, 2019. Cash and bank balance were RMB6.7 billion, US$974.0 million compared with RMB6.1 billion at end of 2018. Trade and bills receivable were RMB8.4 billion, US$1.2 billion compared with RMB7.4 billion at the end of 2018. Inventory were RMB2.3 billion, US$334.3 million compared with RMB2.5 billion at the end of 2018. Trade and bills payables were RMB5.6 billion US$820.2 million compared with RMB4.6 billion at the end of 2018. Short and long-term bank borrowings were RMB2.1 billion, US$308.0 million compared with RMB2.0 billion at the end of 2018. With that, operator, we are ready to begin the Q&A session.
