#None #China Yuchai #Yuchai Machinery #SKY Cloud

China Yuchai's New Equity Incentive Initiative

China Yuchai International Limited, a giant in the powertrain manufacturing sector, has just unveiled a new equity incentive plan through its subsidiary, Guangxi SKY Cloud Technology Co., Ltd., formerly known as Guangxi Xing Yun Cloud Technology Co., Ltd. This recent development, approved by the shareholders of Guangxi Yuchai Machinery Company Limited, boosts the company's commitment toward fostering employee motivation and aligning their interests with those of the company.

What is the Equity Incentive Plan?

The plan involves an increase in the registered capital of SKY Cloud, rising by RMB 1.25 million to correspond with a 20% interest of the expanded capital, aiming to empower selected employees, directors, and senior executives with significant financial stakes in the company's future. The participants, also referred to as 'Participants' in the plan, will receive their shares in two phases. Phase One allows for the acquisition of shares worth RMB 1,080,002 at a subsidized pricing of RMB 1 per RMB 1 registered capital. The following Phase Two will entail granting the remaining interests by June 30, 2027, at a price set at either 80% of the most recent audited net asset value or a minimum of RMB 1.

Goals and Expectations

The primary goal behind implementing this equity incentive plan is to encourage staff members who are pivotal to the long-term success of SKY Cloud. By providing a substantial incentive structure, China Yuchai aims to reward dedication and contributions effectively while enhancing company loyalty. This step is significant as it appears that the company is striving to cultivate a stronger work environment that supports employee retention and satisfaction.

In line with International Financial Reporting Standards (IFRS), there is an expected expense charge appearing in the company's profit and loss statements, calculated based on the valuation of SKY Cloud. However, this impact is deemed immaterial to China Yuchai’s overall financial health.

About China Yuchai International

Established in 1951, China Yuchai International through its subsidiary Yuchai has marked its position as a primary powertrain solution provider in China, specializing in various engine designs and manufacturing including heavy-duty, medium-duty, and light-duty engines for numerous applications like trucks, buses, and agricultural equipment. Notably, in 2024, Yuchai reported sales of 356,586 engines, establishing a stronghold not only in the domestic market but also on global fronts. The diversification of energy solutions offered by Yuchai, including traditional diesel engines and new energy technologies such as electric and hybrid systems, further supports sustainable practices in the transport and machinery sectors.

To sum up, the adoption of the equity incentive plan is a strategic venture by China Yuchai designed to tighten the bond between employees and the company, thereby driving mutual growth and success in a competitive marketplace.