中国玉柴国际有限公司（CYD.US）2025年第四季度业绩电话会
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会议摘要
China U International reported a 33.5% year-over-year revenue increase to RMB 11.8 billion in Q4 2025, alongside a 193.1% surge in operating profit to RMB 469.2 million. The company attributes its success to higher unit sales, especially in high-horsepower engines, strategic international expansions, and investments in new energy solutions. Financial stability is underscored by RMB 7.9 billion in cash reserves, with future growth expected in data center and vehicle engine sales, supported by ongoing R&D and market share expansion in truck and bus engines.
会议速览
China U International's 2025 Financial Results Conference Call: Highlights and Q&AA conference call discusses China U International's 2025 financial results, featuring an overview by a company executive, a financial review by the CFO, and a Q&A session. Forward-looking statements are noted, emphasizing risks and uncertainties. Financials are presented in RMB and USD, following accounting standards.
Strong Sales and Profit Growth in Second Half of the YearRevenue surged 33.5% year-over-year to RMB 8 billion, gross profit rose 15.4% to RMB 2.2 billion, and operating profit jumped 193.1% to RMB 469.2 million, highlighting robust financial performance.
Record Revenue and Profit Growth in FY 2025 Driven by Diverse Product Portfolio and International ExpansionFor fiscal year 2025, revenue surged 28.9% to Rmb 24.7 billion, with gross profit and margin significantly enhanced. Key sales growth came from increased unit sales across various categories, notably engines for data centers and off-road applications. International expansion and new production facilities bolstered global reach, with exports and strategic partnerships playing pivotal roles in the company's success.
Significant RNG Investment, Technological Advancement, and Strategic Acquisitions Drive Growth in 2025In fiscal year 2025, there was a 37.3% increase in RNG expenses to $192.3 million, with $217.1 million including capitalized costs. This investment was directed towards enhancing engine efficiency and performance, focusing on National 6 and Tier 4 compliance, and developing new energy products. The company also experienced a 9.4% growth in profits from strategic alliances and joint ventures, boosted by higher sales. Notably, the acquisition of a 27.97% equity stake in Kong Hen Yang Industrial Technology Company, a leader in fuel injection systems, further strengthened technological capabilities and supply chain resilience.
Financial Review and Investment Highlights: Revenue Growth, Diversification, and Strategic InitiativesThe dialogue highlights a significant increase in revenue and engine sales, driven by a strategic focus on high-demand sectors. It discusses the company's diversification into innovative technologies, including investments in marine and electric power vehicles, and the financial implications of these moves. The summary also touches on the impact of increased R&D expenses and the positive shift in gross margins, reflecting the company's commitment to sustainable growth and shareholder value.
Significant Financial Growth and Market Expansion in 2025: Revenue, Profit, and Sales Volume IncreaseFinancial performance for the fiscal year ending December 2025 shows substantial growth in revenue, net profit, and sales volume, driven by higher unit sales, strategic cost reductions, and a favorable sales mix shift towards high-margin products. Key highlights include a 228.9% revenue increase to US$3.5 billion, a 66.3% rise in net profit to US$65.5 million, and a 29.4% increase in total engine sales to 461,309 units. These achievements underscore the company's market expansion and operational efficiency improvements.
Conference Call Update: Q&A on Financial Results and Management MeetingsThe CFO addressed questions regarding higher expenses and effective tax rate, explaining the impact of noncash items and accounting practices. Management schedules for upcoming conferences were shared, with a request for meeting arrangements through specified banks. The Q&A session began, inviting participants to press designated keys for asking or canceling questions.
Analysis of Decreased Operating Income and Outlook for Government IncentivesThe dialogue discusses the significant decrease in operating income, primarily attributed to reduced government grants in 2025 compared to 2024. It also touches upon the uncertainty of future government incentives and the potential for the trend to continue, reflecting on the impact of incentive policies on financial performance.
Analysis of Joint Venture Profit Growth and Product Mix Changes in 2025Discussed joint venture's 2025 profit growth, attributing slower profit increase to product mix changes despite higher sales volume and revenue, highlighting less profitable Ed cylinder engine sales.
Analysis of Improved Gross Profit Margin and Guidance for 2026Discussed factors contributing to improved gross profit margin, including volume increase and higher horsepower sales, with guidance sought for future performance.
China's Government Policies and RD Focuses Impacting Sales and InnovationThe dialogue discusses how China's government policies have significantly influenced sales, particularly in vehicle and data center sectors. It forecasts continued growth in data centers and outlines the company's RD strategy, focusing on new energy systems and preparing for upcoming national emission standards, aiming for a 5% RD expense to revenue ratio.
Yuchai's Perspective on Caterpillar's Trend in HPP Engines for Data CentersInquiry about Yuchai's view on Caterpillar's reciprocating generators for data centers and existing natural gas engine technologies.
Outlook for Engine Industry Growth and Market Share Sustainability in 2026Discussion covers expected growth in high horsepower engines, natural gas generators, and market share gains in truck and bus engines, highlighting sustainability outlook for 2026.
OEM Collaboration Yields Growth in Vehicle Design and CertificationA discussion highlights ongoing collaboration with an OEM, resulting in certified designs for vehicles, with expectations of continued growth through 2026.
Backlog Trends & European Business Outlook for Data Center EnginesDiscussion covers backlog growth in data center engines, noting supply constraints impacting joint ventures, particularly from German partners, with price hikes due to raw material costs. Also, explores increasing European business, focusing on high horsepower engines, though specifics on segments like diesel or gas engines were not detailed.
Export Market Analysis: Utah Brand vs. MTU Joint VentureThe Utah brand's export market is small, mainly in Asia, while the MTU joint venture offers over 20% export opportunity through OEM sales, with growing potential.
QA Session Concludes with Positive Outlook for Future CommunicationThe QA session ended without further questions from the phone line, with the facilitator expressing gratitude and anticipation for future interactions.
Conference Call Concludes with Appreciation and Disconnection InstructionsA call ends with thanks for attendance, followed by instructions to disconnect.
要点回答
Q：What are the financial results for China Utah International Limited's second half of 2025?
A：China Utah International Limited's revenue for the second half of 2025 increased by 33.5% year over year to RMB 8 billion (or US$1.7 billion). The gross profit increased by 15.4% year over year to RMB 2.2 billion (or US$17 million), with an operating profit of 919.3% year over year at RMB 469.2 million (or US$66.7 million). Basic and diluted earnings per share improved to RMB 0.57 (or US$0.65) and RMB 0.74 (or US$2.4), respectively.
Q：What strategic moves were made by China Utah International Limited to enhance its global reach and production capacity?
A：China Utah International Limited entered into an agreement in Vietnam to construct a partner production facility to complement its Thailand production operation. Additionally, the company delivered a total of 2400 units of natural gas engines to power buses in the new Leon regions of Mexico. Furthermore, a foundry in Germany began batch delivery of plant castings, demonstrating the acceptance of the company's casting product quality by customers.
Q：How did research and development (RNG) expenses change in 2025 and what strategic investments were made?
A：Research and development (RNG) expenses increased by 37.3% to RMB 1.4 billion (or US$192.3 million) in the fiscal year of 2025. The company continued to enhance engine efficiency and performance for its National 6 and Tier 4 emission control compliant engines and power generation engines. There was progress in developing new energy products, including alternative fuel engines using hydrogen and metallo and ammonium combustion technology. The strategic alliances and joint ventures grew profit by 9.4% year over year.
Q：What are the details of the equity investments and partnership formed by China Utah International Limited?
A：China Utah International Limited acquired a 27.97% equity interest in YK Hang Yang Industrial Technology Company, a fuel injection system specialist. The company also became a limited partner in the P series Shi Double Growth Fund, a private equity fund focused on investing in emerging and innovative technologies. Additionally, C Chi Marine and Jet Power Company's application for listing with the Hong Kong Stock Exchange is pending, pending review and approval by relevant regulatory authorities and market conditions.
Q：What caused the decrease in other operating income from the second half of 2024 to the second half of 2025?
A：Other operating income decreased by 44.5% to IB 224.5 million (US dollar 31.9 million) from IB 401.5 million in the second half of 2024, primarily due to lower government grants.
Q：How did selling, general, and administrative expenses change, and what were the main factors for this change?
A：SG&A expenses increased by 4.9% to IB 1.1 billion (US dollar 157.7 million) from IB 1 billion in the second half of 2024. The increase was mainly due to increased personal expenses and higher consultancy fees, partially offset by lower account receivable provisions. As a percentage of revenue, SG&A expenses were 9.4% in the second half of 2025, compared with 12% for the same period in 2024.
Q：What were the key results for the fiscal year ended December 21, 2025, including revenue and total number of engines sold?
A：For the fiscal year ended December 21, 2025, revenue increased by 228.9% to RMB 24.7 billion (US dollar 3.5 billion) from RMB 19.1 billion in fiscal 2024. The total number of engines sold in fiscal 2025 increased by 29.4% year over year to 461,309 units from 356,580 units in fiscal 2024.
Q：What were the main drivers for the rise in total truck engine unit sales in fiscal 2025?
A：The total truck engine unit sales in fiscal 2025 rose by 50.7% year over year compared with 5.9% growth in Cam data for truck unit sales. The increase was mainly due to strong sales in heavy truck engines, with a 80.1% year-over-year increase, followed by a 34.2% year-over-year increase in medium to heavy truck engines and a 67.6% year-over-year increase in right to the truck engine sales off road engines, with both industrial and marine and Jansen unit sales growth of more than 24% year over year.
Q：How did gross profit and gross margin change in fiscal 2025 compared to fiscal 2024?
A：Gross profit increased by 44.3% to IB 4.1 billion (US dollar 578.7 billion) from IB 2.8 billion in fiscal 2024, with a gross margin increase to 15.5% compared with 14.5% in fiscal 2024. The increase was mainly attributed to high unit sales volume, a change in sales mix with high unit sales of heavy-duty and high-horsepower engines, and continuing cost reduction initiatives.
Q：How did the company's liquidity position change from the end of FY 2024 to the end of FY 2025?
A：As of December 31, 2025, bank balances were RMB 7.9 billion (or US dollar 1.1 billion), down from RMB 6.4 billion at the end of the financial year 2024. Three bills receivables declined to RMB 1.4 billion (or US dollar 1.5 billion) from RMB 1.88 billion at the end of FY 2024. Inventories were RMB 5.6 billion (or US dollar 791.8 million), compared with RMB 4.7 billion at the end of FY 2024. Accounts payable were RMB 11.1 billion (or US dollar 1.6 billion), compared with RMB 8.5 billion at the end of FY 2024. Short-term and long-term loans and borrowings were RMB 2 billion (or US dollar 287.4 million), down from RMB 2.5 billion at the end of the financial year 2024.
Q：What is the reason behind the reduction in other operating income from 2024 to 2025?
A：The reduction in other operating income from 2024 to 2025 is primarily due to lower government grants. Specifically, the company received substantially less government grant in 2025 compared to 2024, which resulted in a decrease of about half of the government grant received in 2024.
Q：What is the profit growth for the NTU joint venture in 2025?
A：The net profit for the NTU joint venture in 2025 was approximately RMB 211 million, which represents an increase of 22% from the year 2024. The sales volume and revenue for the joint venture in 2025 were about 30% higher compared to 2024. However, the profit was not as good as the sales volume and revenue due to a change in the product mix, with less sales of Ed cylinder engines and Covid engines, and slightly lower revenue from other versions.
Q：What are the main reasons for the improvement in the company's gross profit margin in the second half of the script?
A：The main reasons for the improvement in the company's gross profit margin in the second half were the increase in volume due to more delivery to power generation clients and a better product mix. This led to higher sales and a reduction in unit sales costs, contributing to a better price margin.
Q：What factors contribute to the expected challenging guidance in China?
A：The challenging guidance in China is attributed to the difficulty in providing accurate forecasts due to government policies and the effects of government initiatives, such as the replacement of the 201 c. vehicle, which has driven significant growth in the past.
Q：What are the company's expectations for revenue growth and unit sales in the upcoming year?
A：The company expects revenue growth to be flat to slightly up for the data centers, similar to the previous year's performance, assuming that government policies continue as they were last year. However, there is a positive outlook for a significant increase in demand from data centers, contributing to double-digit growth for the segment.
Q：What is the projected growth rate for R&D expenses and what are the key focus areas for R&D?
A：The projected growth rate for Research and Development (R&D) expenses is about 5% of revenue. Key focus areas for R&D include the development of new energy systems, such as ammonia, metal, and hydrogen power combustion engines, in addition to fuel cells. The company is also preparing for potential new national emissions standards introduced by the Chinese government in the coming years.
Q：How does Yuchai view the industry trend of reciprocating generators for data centers, and does it have the necessary products and technologies?
A：Yuchai expects growth in high horsepower engine business, which could be used for data centers, to continue in 2026 compared to 2025. They have natural gas engines for power generation that could be used for data centers, with the potential to replace diesel engines in the future. However, at present, the adoption of natural gas engines for data centers is not widespread due to considerations in cost and infrastructure.
Q：What is the outlook for the domestic truck and bus industry sales and the potential for sustaining market share growth?
A：The outlook for the domestic truck and bus industry sales is positive as the company has been working with original equipment manufacturers (OEMs) to gain certifications and design their vehicles. Market share growth is expected to continue in 2026, with a big growth already being seen and anticipated to persist.
Q：Has the size of the backlog for data center engines increased over the past few months?
A：The size of the backlog for data center engines has not increased; the company is working hard to fulfill the existing requirements. Deliveries have been steady, ranging between 300 to 500 units.
Q：What is the detailed segment outlook for the company's European business, especially concerning the increase in demand?
A：The detailed outlook for the company's European business is focused on large horsepower engines, with an increase in demand. The company's export markets mainly count for a small percentage in Asia, but for the MTU joint venture side, there is a growing opportunity with over 20% of the export potential and sales to original equipment manufacturers (OEMs).
