On March 15, the signing ceremony of the agreement for capital increase and share expansion of Yuchai Group was held under the leadership of the State-owned Assets Supervision and Administration Commission of Guangxi Zhuang Autonomous Region. Totally four strategic investors, including Guangxi Beibu Gulf Industrial Investment Fund Partnership (Limited Partnership), provided a capital increase of RMB 1.1 billion for Yuchai Group. This capital increase and share expansion, as Yuchai's most important enterprise equity reform in recent years, will inject vitality to new undertaking of Yuchai.

Investors involving the capital increase incorporate the State-owned Assets Supervision and Administration Commission of Guangxi Zhuang Autonomous Region, State-owned Assets Supervision and Administration Commission of Yulin, Guangxi Beibu Gulf Industrial Investment Fund Partnership (Limited Partnership) and Guangxi Industrial Investment Development Co., Ltd. At the ceremony, an Agreement for Capital Increase and Share Expansion was signed by and between Yuchai and investors involving the capital increase.

The capital increase and share expansion aims to implement the decisions and arrangements of the CPC Committee of Guangxi Zhuang Autonomous Region and People’s Government of Guangxi Zhuang Autonomous Region to promote the high-quality development of Guangxi industry and the secondary start-up of mechanical industry. The increased capital will be mainly used for operation and management of Yuchai Group. Centering the strategic development planning in the next five years, Yuchai Group will refine, specialize, strengthen and expand its core strategic industry chain, drive change, innovation, transformation and upgrading, and enhance its long-term profitability and core competitiveness.

The attendees presented at the signing ceremony include Nie Jiangwu, Deputy Director of the State-owned Assets Supervision and Administration Commission of Guangxi Zhuang Autonomous Region and Deputy Secretary of the CPC Committee, Wang Xiaohua, Deputy Director of the State-owned Assets Supervision and Administration Commission of Guangxi Zhuang Autonomous Region, Chen Jun, Deputy Director of the State-owned Assets Supervision and Administration Commission of Yulin and Deputy Secretary of the CPC Committee, Yan Ping, Chairman of Yuchai Group, Gao Xin, General Manager of Guangxi Beibu Gulf Investment Group Co., Ltd., Liu Zhanxiang, Chairman and General Manager of Guangxi Beibu Gulf Innovative Development Investment Fund Management Co., Ltd., Ma Lei, Deputy General Manager of Guangxi Financial Investment Group Co., Ltd. and Xiang Jixin, Chairman of Guangxi Industrial Investment Development Co., Ltd.

Nie Jiangwu made a speech at the signing ceremony of capital increase and share expansion. He said that as a leader in China's internal combustion engine industry, Yuchai Group shoulders the important mission of revitalizing the national industry and promoting China's internal combustion engine industry to the first-class level in the world. The capital increase of RMB 1.1 billion to Yuchai Group affirms the long-term struggle and adherence to entrepreneurship and innovation of Yuchai Group and supports the growth of Yuchai Group by the CPC Committee of Guangxi Zhuang Autonomous Region and People’s Government of Guangxi Zhuang Autonomous Region in the context of current reform of state-owned enterprises. Nie Jiangwu hoped that Yuchai Group could strengthen production and operation management and speed up the improvement of corporate governance structure and modern management mechanism. He also indicated that Yuchai Group could focus on its main business with dedication to achieve the goal of “building industrial clusters valuing RMB 100 billion” of Guangxi Zhuang Autonomous Region at an early date and make greater contributions to mechanical industry of the whole region.

Yan Ping said that the acquisition of RMB 1.1 billion from four powerful strategic investors in the critical period of the secondary start-up of Yuchai Group was of great and far-reaching significance to enhancement of comprehensive strength and high-quality development of Yuchai Group. He indicated that Yuchai would embrace this opportunity to establish good cooperative relations with parent groups of all parties, so as to pool richer resources for leapfrog development of Yuchai.

Yan Ping stressed that Yuchai would seize the opportunity of secondary start-up of Guangxi’s mechanical industry and take the construction of Guangxi advanced equipment manufacturing city (Yulin) as a carrier. It would manage the enterprise attentively, give full play to the increased capital and financing platform and do a good job in project construction, to further improve enterprise operation revenue. It would also protect investors' rights and interests with excellent performance.

Yuchai Group, an established engine manufacturer for 68 years, serves as an essential part among “two enterprises and three cities” for secondary start-up of Guangxi’s mechanical industry. Yuchai has been ranking among the top 500 Chinese enterprises for 16 consecutive years, with brand value exceeding RMB 41.5 billion. In September 2018, Yuchai Group was put under the direct management of the autonomous region, marking a new development journey.

(Cao Wanwan)