UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM SD

SPECIALIZED DISCLOSURE REPORT

 

China Yuchai International Limited

 

(Exact name of the registrant as specified in its charter)

 

 

 

 

Phung Khong Fock Thomas

Chief Financial Officer

16 Raffles Quay

#39-01A Hong Leong Building

Singapore 048581

Tel: +65 6220 8411

Fax: +65 6221 1172

 

(Name and telephone number, including area code, of the

person to contact in connection with this report.)

Check the appropriate box to indicate the rule pursuant to which this form is being filed and provide the period to which the information in this form applies:

Under the final rule, a company that uses any of the designated minerals is required to conduct a reasonable ‘country of origin’ inquiry that must be performed in good faith and be reasonably designed to determine whether any of its minerals originated in the covered countries or are from scrap or recycled sources.

 

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ITEM 1.01 – Conflicts Minerals Disclosure and Report

A copy of China Yuchai International Limited’s Conflict Minerals Report is filed as Exhibit 1.02 hereto and is publicly available at www.cyilimited.com under “Investor Relations”.

ITEM 1.02 – Exhibit

ITEM 2.01 Exhibits

List below the following exhibit filed as part of this report.

Exhibit 1.01 – Conflict Minerals Report as required by Item 1.01 and 1.02 of this Form.

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the duly authorized undersigned.

 

 

 

 

 

 

Exhibit 1.01

 

Conflict Minerals Report of China Yuchai International Limited
For the Year Ended December 31, 2017

 

This is the Conflict Minerals Report (“Report”) of China Yuchai International Limited (“CYI”) for the year ended December 31, 2017 in accordance with Rule 13p-1 under the Securities Exchange Act of 1934 (“the Rule”). The Rule was adopted by the United States Securities and Exchange Commission (“SEC”) pursuant to Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, to implement reporting and disclosure requirements on all SEC registrants (including foreign issuers) about the use of specified “conflict minerals” emanating from the Democratic Republic of Congo and nine adjoining countries (collectively, the “Covered Countries”), in their products.

 

The terms used in this Report are as defined in Rule 13p-1, Form Statutory Declaration (“Form SD”) and the 1934 Act Release No. 34-67716 unless otherwise defined herein.

 

This Report prepared by the management of CYI includes the activities of all majority-owned subsidiaries and variable interest entities that are required to be consolidated. It does not include the activities of variable interest entities that are not required to be consolidated. CYI engaged the services of an independent third party (“Advisor”) to advice on the implementation of the Rule across the CYI Group. This Report has not been subject to an independent private sector audit (“IPSA”).  

 

 

A. Company and Product Overview

 

CYI, through its main operating subsidiary, is one of the largest engine manufacturers in China. It engages in the manufacture, assembly, and sale of a wide variety of light-, medium- and heavy-duty engines for trucks, buses, passenger vehicles, construction equipment, marine and agriculture applications in China. It also produces engines for diesel power generators. The engines produced range from diesel to natural gas and hybrid engines over 10 engine platforms. A list of the engine models produced in financial year 2017 is at Schedule 1 of this Report.

 

CYI manufactures the engine blocks, cylinder heads, crankshaft, camshaft and certain other key parts of the engines with the remaining engine parts supplied by third party suppliers. It purchases raw materials, principally scrap steel and cast iron, from domestic suppliers and certain engine components such as the electronic combustion system and its software, and the exhaust after-treatment system are imported from foreign suppliers. In addition, different alloys and additives such as tin, zinc, magnesium, and manganese are utilized during the manufacturing process. Further to the conduct of an analysis of our engine products manufactured in financial year 2017, we concluded in good faith that certain minerals such as tantalum, tin, tungsten and gold (“3TGs”), which are necessary to the functionality or production of our engines, are used in the manufacturing process.

 

 

B. Reasonable Country of Origin Inquiry (“RCOI”)

 

We conducted an RCOI of our suppliers using Version 5.01 of the Electronic Industry Citizenship Coalition and the Global e-Sustainability Initiative Conflict Mineral Reporting Template (“CMRT”), to determine whether any of the 3TGs supplied for use in the manufacture of our engines in financial year 2017 that are not from recycled or scrap sources

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originated in the Covered Countries. The RCOI requested our suppliers to obtain information through their supply chain regarding the country of origin of 3TGs used, and smelters and refiners used in the supply of materials to CYI. In order to make this inquiry as complete as possible, our suppliers were requested to send the same CMRT to their suppliers (direct and indirect) and, based on the responses received, complete their CMRT. We sent the CMRT to a total of 118 suppliers and as of March 9, 2018, we received 116 responses to the RCOI using the CMRT. One supplier did not provide any response to the CMRT, while one indicated that it had not provided any 3TGs in 2017 and indicated that the answers in its 2016 survey response were therefore applicable. 83 suppliers confirmed that the products they supply to us are DRC Conflict-Free.

 

We rely, to a large extent, on our suppliers in the RCOI who are similarly reliant upon information provided by their own suppliers. As a result, certain information provided may have been inaccurate or incomplete and hence subject to further verification.  

 

 

C. Due Diligence Program

 

CYI designed its due diligence measures to conform to the 3^rd Edition of the Organization of Economic Co-operation and Development Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (“OECD Guidance”).

 

A summary of the due diligence measures that we undertook in order to comply with the Rule were:

 

 

 

 

 

 

  

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We identified and considered the risks arising from our due diligence measures and communicated our findings and steps taken to mitigate the risks to our management and Board of Directors.  

 

 

 

We do not have direct relationships with any mines, smelters or refiners of 3TGs which may be present in our supply chain and do not perform direct audits of such entities.

 

 

 

In preparation for any IPSA that may be required to be conducted and in our efforts to follow the OECD Guidance, we determined that requesting information from our suppliers using the CMRT represents the most reasonable effort in the due diligence process on the source and chain of custody of any 3TGs. Any such IPSA will be posted as part of our SEC filings and on our website.

 

 

D. Future steps towards compliance with the Rule

 

In the next compliance period covering the year 2018, we will continue to engage our suppliers to obtain current, accurate, and complete information about their smelters and refiners through their supply chain.

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Schedule 1

 

The schedule below lists the engine models by application produced by us in financial year 2017.

 

Trucks

YC4D, YC4E, YC4FA, YC4FQ, YC4DN, YC4S, YC6A, YC6J, YC6JN, YC6K, YC6K13, YC6KN, YC6L YC6MK, YC6MKN, YC6LN.

 

Bus

 

YC6MK, YC6MKN, YC6L, YC6J, YC6JN, YC6G, YC6GN, YC6LN, YC6K, YC6KN, YG6A, YC4G, YC4GN, YC4E, YC4EG, YC4D, YC4DN, YC4FA, YC4FQ, YC4S

 

Construction

 

YC4A, YC4D, C4DN, YC4F, YC4G, YC4GN, YC6B, YC6J, YC6JN, YC6G, YC6L, YC6LN, YC6A

 

Agriculture

 

YC4A, YC4FA, YC6A, YC6B, YC4D, YC6J, YC6L

 

Marine

 

YC4D, YC4F, YC4FA，YC6A/6B, YC6T, YC6TD, YC6C, YC6CL, YC6CD, YC8CL, YC12VC, YC6MK

 

Generator-Drive

 

YC4R, YC4FA, YC4F, YC4D, YC6A, YC6G, YC6L, YC6LN, YC6MK, YC6MJ, YC6T, YC6C, YC6CL, YC12VC, YC16VC, YC6MKN, YC6K, YC6KN

 

Light-Duty Vehicle

 

YC4W, YC4Y, YC4FB

 

 

 

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