China Yuchai International Limited (CYD)

China Yuchai International Limited is a Bermuda holding company established in April 1993 to own a controlling interest in Yuchai. The Company was established to acquire a controlling interest in Guangxi Yuchai Machinery Company Limited, a Sino-foreign joint stock company which manufactures, assembles and sells diesel engines in the People's Republic of China. The principal markets for Yuchai's diesel engines are truck manufacturers in the PRC. The Company currently owns, through six wholly-owned subsidiaries, 76.4% of the outstanding common shares of Yuchai. Yuchai was founded in 1951 and became a state-owned enterprise in 1959. Yuchai is a medium-duty diesel engine manufacturer in China and also produces diesel power generators and diesel engine parts. Its primary products are its 6105 and 6108 medium-duty engines, which are principally used in medium-duty trucks with a load capacity of five to seven tons. In addition, it also offers the 4-Series light-duty engines and the 6112 heavy-duty engines. The Company also produces diesel power generators, which are primarily used in the construction and mining industries. The diesel power generators offer a rated power of 12 kilowatts to 160 kilowatts. Yuchai's diesel power generators use both the 6105 and 6108 medium-duty engines as their power source. It supplies diesel engine parts to its nationwide chain of customer service stations. Yuchai distributes most of its engines directly to auto plants and retailers from its primary manufacturing facilities in Yulin City. In addition, Yuchai operates 31 regional sales offices in major geographic regions in China. Yuchai has a nationwide network of over 1,150 authorized service stations that provide repair and maintenance services, spare parts, retrofitting services and training to the customers. It owns and maintains Chinese trademark registrations of its principal trademarks. Governance, operation and dissolution of Yuchai are governed by laws and regulations of China relating to Sino-foreign joint stock companies, as well as by Yuchai's Articles of Association. As of December 31, 2005, Yuchai employed approximately 8,827 people nationwide, inclusive of a sales force of 609 employees.