China Yuchai International Limited
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934
January 22, 2008
Commission File Number 113522
China Yuchai International Limited
(Translation of Registrants name into English)
16 Raffles Quay #26-00
Hong Leong Building
Singapore 048581
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover
Form 20-F or Form 40-F.
Form 20-F þ Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1): o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7): o
Indicate by check mark whether the Registrant by furnishing the information contained in this
Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.
Yes o No þ
If Yes is marked, indicate below the file number assigned to registrant in connection with Rule
12g3-2(b): Not applicable.
Table of Contents
Exhibit Index
99.1 |
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Press release dated January 22, 2008 |
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 undersigned, thereunder duly authorized.
Date: January 22, 2008
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CHINA YUCHAI INTERNATIONAL LIMITED
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By: |
/s/ Teo Tong Kooi
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Name: |
Mr. Teo Tong Kooi |
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Title: |
President and Director |
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Ex-99.1 Press release dated Jan 22, 2008
Exhibit 99.1
Singapore,
Singapore January 22, 2008 China Yuchai International Limited (NYSE: CYD)
(China Yuchai or the Company), the leading manufacturer and distributor of diesel engines in
China, announced today that the Audit Committee of the Company had concluded its independent
inquiry into the facts and circumstances of the potential accounting errors relating to the
previously-disclosed adjustment of accounts payable of approximately RMB 168 million (approximately
$22.5 million) by the Companys subsidiary, Guangxi Yuchai Machinery Company Limited (Yuchai), in
Yuchais accounts for fiscal years ended December 31, 2005 and December 31, 2006.
To assist in the investigation, the Audit Committee retained independent counsel, Weil, Gotshal &
Manges LLP. Weil Gotshal, in turn, retained independent forensic accountants, Ernst & Young
Advisory Services Ltd.
The Audit Committee, with the assistance of its professional advisors, engaged in extensive
fact-finding through a review of thousands of documents and electronic files and interviews of more
than twenty individuals. After completing the investigation, the Audit Committee made the
following key conclusions:
1. The adjustment of accounts payable in the amount of approximately RMB 168 million was made in
error but was not the result of: (a) any fraud or intentional wrongdoing on the part of any
employee of the Company or Yuchai; or (b) any plan to intentionally inflate the profits. There was
evidence that lower level Yuchai employees became aware that the adjustment was made in error but
either did not understand the significance of the error or did not elevate their concerns to a
higher level at Yuchai, where the issue could have been properly addressed. There was a similar
lack of communication between employees at Yuchai and the Company regarding this adjustment.
Finally, there was a failure among employees of the Company to communicate properly with respect to
the filing of the Companys Form 12b-25 on July 2, 2007. The Company and Yuchai are addressing each
of the problems associated with the failures of communication regarding important accounting and
other issues.
2. The Audit Committee, based on the investigation, has made recommendations to the Board in order
to prevent such an occurrence again. The recommendations include changes to be made to the
Companys controls and procedures to improve their effectiveness, improve communication flow,
clarifying the roles and responsibilities of Yuchais Finance staff, training for Yuchai Finance
staff, and increase resources at the Company and Yuchai.
The Audit Committee and its independent counsel have also presented the oral report to the
Companys independent auditors. To date, no concerns have been raised over the findings of the
independent investigation. The Board of Directors is satisfied with the investigation and has
agreed to implement each of the recommendations of the Audit Committee.
Based on the findings of the report,
the Company is now working diligently to determine what
adjustments need to be made to correct the errors, and whether any such adjustments will
result in a restatement of the Companys 2005 audited financial statements. As previously
announced, the Company is in the process of evaluating the application of U.S. GAAP regarding
certain matters that have come to its attention during the audit of the 2006 consolidated financial
statements as they apply to the 2006 consolidated financial statements and potentially to the
Companys 2005 consolidated financial statements.
The Company is currently in discussions with its independent auditors to agree an acceptable
timeline to achieve the foregoing and will make the appropriate announcement in due course.
Due to the delays in releasing its 2006 audited consolidated financial statements, the Company has
determined to hold its 2007 annual meeting of shareholders
(AGM) on February 14, 2008 without its 2006 audited consolidated financial statements being presented to its shareholders. The
Notice of AGM setting out the relevant details of the AGM will be made public in due course. Upon
issuance of the 2006 audited consolidated financial statements, the Company will, in accordance
with Bermuda law, call a special meeting of its shareholders to present such financial statements.
About China Yuchai International Limited
China Yuchai, through its subsidiary, Yuchai, engages in the manufacture, assembly, and sale of a
wide array of light-duty, medium-sized and heavy-duty diesel engines for construction equipment,
trucks, buses, and cars in China. Yuchai also produces diesel power generators, which are primarily
used in the construction and mining industries. With over 30 regional sales offices and 460
authorized customer service centers, Yuchai distributes its diesel engines directly to auto OEMs
and retailers and provides maintenance and retrofitting services throughout China. Founded in 1951,
Yuchai has established a reputable brand name, strong research & development team and significant
market share in China with high-quality products and reliable after-sales support. In 2006, Yuchai
sold approximately 284,000 diesel engines and was consistently ranked No. 1 in unit sales by China
Association of Automobile Manufacturers. For more information, please visit www.hlcorp.com.sg/cyi.
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. The words believe, expect, anticipate, project, targets,
optimistic, intend, aim, will or similar expressions are intended to identify
forward-looking statements. All statements other than statements of historical fact are statements
that could be deemed forward-looking statements. These forward-looking statements are based on
current expectations or beliefs, including, but not limited to, statements concerning the Companys
operations, financial performance and, condition. For this purpose, statements that are not
statements of historical fact may be deemed to be forward-looking statements. The Company cautions
that these statements by their nature involve risks and uncertainties, and actual results may
differ materially depending on a variety of important factors, including those discussed in the
Companys reports filed with the Securities and Exchange Commission from time to time. The Company
specifically disclaims any obligation to update the forward-looking information in the future.
For more information, please contact:
Kevin Theiss / Dixon Chen
The Global Consulting Group
Tel: +1-646-284-9409
Email: ktheiss@hfgcg.com
dchen@hfgcg.com