After the extraordinary year of 2023, all Yuchai builders are moving forward to welcome a fresh beginning in 2024.

Amidst the complex and severe market environment, all Yuchai builders are keenly aware that we must establish clear objectives, take decisive actions, embrace challenges, and overcome obstacles to achieve more remarkable results and more honors for the company.

Since the beginning of this year, Yuchai's marketing sectors have seized opportunities and worked hard to grab market share, serve customers, and scramble for orders, achieving a strong and comprehensive beginning.

Soaring Orders in the New Year

In the spring of the Year of Loong, Yuchai saw a surge in orders from various sectors.

Due to the pre-Spring Festival surge in vehicle purchase demand and changes in promotional strategies, the commercial vehicle market is exhibiting a noticeable upward trend in growth. Up to now, the orders for Yuchai's China VI commercial vehicle engines have skyrocketed, with a year-on-year increase of 166%. Every market segment shows standout features. As the peak tourist season during the Spring Festival holiday approaches, batch orders for sightseeing buses have been delivered to customers one after another. With strong power, stable reliability and driving comfort, Yuchai has boosted the high-quality development of tourism passenger transport markets in Yunnan, Guizhou, Sichuan, Chongqing, Qinghai, Gansu, Xinjiang, and other regions. The batch orders for sanitation vehicle such as sweepers and sprinklers used for urbanization construction and beautiful countryside construction have doubled year on year. In the highway and logistics transportation market, orders continue to grow with product advantages and good reputation. Yuchai has received batch orders for YCK15N high-horsepower gas engine from leading customers like Dongfeng Trucks, FAW Jiefang, and Dongfeng Liuzhou Motor, as well as batch orders for center-axle car carrier trucks. In addition, the car carrier trucks equipped with 350 HP YCK08 diesel engine have been delivered to Shanghai, Jiangsu and other regions.

Good news from the off-road engine market keeps pouring in. Fujian, Guangdong and Hainan regions received orders for more than 1,300 excavator engines; Jiangsu region won orders for 5,000 agricultural machinery engines for spring ploughing; and Hunan and Hubei regions won orders for nearly 1,000 heavy-duty mining vehicles. All overseas sales regions and market segments have received a large number of orders from leading enterprises such as LiuGong, Zoomlion, XCMG and LGMG, with the total order count exceeding 50,000.

Yuchai welcomes a good start in the marine & G-drive engine sector. Notably, the company has secured a significant batch bidding order for 10kV fixed diesel genset of 1800kW and above, as part of the centralized procurement project for key customers in the communication system sector for 2024-2025. Additionally, Yuchai's marine engines have made successful inroads into offshore drilling platforms and vehicle carriers, resulting in orders totaling RMB 30 million. In the realm of gas engine deliveries, Yuchai has seen a series of achievements, including the YC16VCN alloy tail gas genset for the Inner Mongolia market, the YC16VCN gas genset for the Guizhou market, and the YC12VCN gas genset for the Shanxi market.

In terms of clean-energy engine system, the hybrid (including extended range) system of Yuchai Synland Technology Co., Ltd. (hereinafter referred to as "Synland Tech") has attracted the attention and trust of many customers with its advanced technology and excellent product performance, leading to a steady stream of orders. As of now, the order volume is nearly on par with the total number of orders for hybrid engines from the previous year.

While actively expanding into overseas emerging markets and establishing new export growth points, Yuchai has achieved notable success in its overseas export operations. Currently, Yuchai's overseas export sales have surged by 50% year-on-year, with truck engines witnessing a remarkable increase of over 140% and bus engines soaring by more than 2,400% year-on-year. The overseas genset market has demonstrated outstanding performance, with order value exceeding RMB 100 million. Yuchai has achieved remarkable recovery growth in the Southeast Asian market and doubled export sales in regions such as East Asia and Africa compared to the previous year.

Further Support for Customers' Success

Over the years, Yuchai has always adhered to the strategic positioning of "being an independent professional power system supplier", regardless of changes in the market environment. It has formed strategic cooperation alliances with OEMs, dealers, service stations, and suppliers. Through sincere cooperation and collaborative efforts, Yuchai aims to create value for customers and contribute to their success. Yuchai employees understand that Yuchai can only thrive by ensuring the success of its customers.

Focusing on customer needs and providing quality solutions can create value for customers and help them succeed.

The trend of clean-energy engine for commercial machinery is becoming more and more obvious, and the clean-energy engine market has gradually changed from the original policy-driven to TCO-driven (payback period). Positioned as a leading supplier of clean-energy engine power systems in China, Synland Tech focuses on the forefront and high-value market segment of clean-energy engines, aiming to continuously supplement its engine family and offer customers an increasingly comprehensive range of power system options. In 2024, Synland Tech will finalize the development of light-duty DHT, 49T DHT hybrid power system, and 14T pure electric bridge drive assembly for the commercial vehicle market. Moreover, the company will enhance its range of pure electric products for mining trucks and loaders in the non-road market, offering customers more comprehensive power system solutions.

In the China VI engine market for commercial vehicles, in addition to a series of superior second-generation China VI offerings, Yuchai will make every effort to promote supporting products to OEMs. By positioning application scenarios in various market segments and understanding the specific needs of end-users through thorough research, Yuchai aims to develop optimal powertrain solutions tailored to customers. This approach will address customer pain points effectively and involve active resource coordination to penetrate weaker markets, regions, and strategic customers. Ultimately, a win-win situation for users, customers and Yuchai will be achieved.

This year, Yuchai will make continuous efforts in the off-road engine sector to build an "engine supermarket". With comprehensive product lines and diversified development mode of "dual tracks", Yuchai will collaborate with customers for innovation, leveraging industry-leading technical and manufacturing expertise. This collaboration aims to deliver efficient and reliable power solutions to enhance customer success, while also showing gratitude for partners' support and trust in Yuchai.

Customer success is Yuchai's success. In 2024, Guangxi Yuchai Marine and Genset Power Co., Ltd. (YCMGP) is committed to prioritizing "High Reliability, High Thermal Efficiency, High Adaptability, and Intelligentization". The company will promote the development and application of key core technologies, continuously upgrade and iterate products, and continue to create greater value for customers through more robust products, faster market response and better service system. By elevating customer success across the board, YCMGP seeks to establish a mutually beneficial relationship between Yuchai and its customers.

Yuchai is committed to becoming a world-class enterprise, and expanding and strengthening its presence in overseas markets is crucial to this mission. As a result, "going global" is a strategy that Yuchai has adhered to for many years. In 2024, Yuchai will uphold its position as the leader in the bus engine export industry, expand its customer base for truck engine exports, collaborate with OEMs to develop popular products, and significantly boost sales in global markets. At the same time, the company will remain dedicated to achieving localized development, including strategically establishing a KD factory in Thailand. By collaborating with OEMs to pool resources, we aim to venture into the global arena and expand our reach into overseas markets.

The whole year's work depends on a good start in spring. All Yuchai builders will work hard to engage with the market, prioritize customer service, think critically, and devise innovative strategies to create value for customers and help them succeed. In this way, we will unswervingly accelerate Yuchai's high-quality development.