In the golden autumn, Yuchai yielded abundant fruits. It achieved sales revenues of RMB 30.498 billion in the first ten months, up 37.79% year on year, fulfilling the annual business objective of RMB 30 billion two months earlier, including 630,000 engines and 5,882 construction machines, up 10.21% and 43.53% year on year. More encouragingly, of the groups six industrial sectors, the sales of engine, construction machinery, lubricant chemical and logistics & auto trade were all up over 30% year on year. Remarkably, Yuchai Machinery Co., Ltd., the core of Yuchai, achieved brilliant sales of more than 470,000 engines, up 18% year on year, and is marching towards the object of 500,000 engines.

This is a perfect ending of Yuchais Eleventh Five-Year Plan?: to fulfill the sales revenues of the previous a quarter earlier and the annual business objective of RMB 30 billion two months earlier, to rank among enterprises with annual sales revenues of RMB 30 billion, and to hit a new high.

Within only five years from sales of RMB 12.1 billion in 2005 to RMB 30 billion now, as an machinery-based enterprise, after conquering the snowstorm in the south and the global financial crisis, Yuchai has increasingly enhanced corporate structure, steadily increased business benefit and jumped from the 231st in 2005 to 227th in 2010 on the list of Chinas top 500 enterprises.

Into right track through restructuring

To define the future direction, Yuchai mapped out the strategic objective for the coming decade-expressly proposed to develop the industry chain based on the primary business, focus on relevant industries and products such as engine, construction machinery, special vehicle, automotive parts, automotive chemical and modern logistics, create a business platform with annual sales of RMB 100 billion, establish the vision of building a world-famous brand and a large multinational enterprise group?, and standardize corporate development in accordance with international standards.

To achieve the objective, Yuchai perfected the corporate governance structure, straightened out property relations and the parent-subsidiary management system, established the groups role as the parent company, managed subsidiaries through the mixed control mode combining strategic control and financial control?, focused on strengthening primary industry clusters, progressively shut down the small subsidiaries less relevant to the primary business, merged the highly relevant fine core parts enterprises, established the system of full-time chairman and financial assignment for subsidiaries, gave technical, financial, management and market support, and strived to shore up subsidiaries.

Over the five years, Yuchais six industrial sectors have forged ahead in parallel. Apart from special vehicle, all the other sectors achieved sales of RMB 2 billion in the first ten months of this year, and engine maintained its advantage and key role in the group by growing fast by over 30% for five years in a row. Yuchais another primary sector-construction machinery grew fourfold in five years, accomplished brand diversification, introduced more than 150 varieties of over 40 series, extended in the direction of medium & large-sized excavators and rotary drilling rigs, and occupied a place in the Chinese construction machinery market. Lubricant chemical has ascended to one of Yuchais most promising sectors, up over 114% year on year. The number of subsidiaries with fine assets has increased constantly. In 2005, Yuchai had 27 wholly-owned, shareholding and participating subsidiaries, including only two subsidiaries with annual sales of RMB 1 billion-Yuchai Machinery Co., Ltd. and Yuchai Beihai Lubricant Co., Ltd. In 2010, of the 30 subsidiaries, there were 8 subsidiaries with sales of more than RMB 1. With business operations in more than 80 countries in Southeast Asia, South America and Africa, Yuchai has not only taken roots in Guangzhou and extended to the rest of the country, but also gone global.

From outshining others in engine to growing extensively in six industrial sectors, from increasing sales revenues to enhancing business operation, the effect of restructuring practiced by Yuchai in the Eleventh Five-Year Plan? has appeared initially, and the two industry chains and several industry clusters? have taken shape.