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

For the Month of August 2006

Commission File Number 1-13522

China Yuchai International Limited

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.

 

 

This Report on Form 6-K shall be incorporated by reference in the prospectus, dated March 24, 2004, of China Yuchai International Limited (the “Company” or “CYI”) included in the Company’s Registration Statement (Registration No. 333-111106) on Form F-3 and to be part thereof from the date on which this report is filed, to the extent not superseded by documents or reports subsequently filed or furnished by the Company with the U.S. Securities and Exchange Commission (the “SEC”).

The Company wishes to caution readers that this Report on Form 6-K contains forward-looking statements, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, including without limitation, statements relating to the Company’s financial performance and prospects, are subject to certain risks and uncertainties, which could cause actual results to differ materially from historical results or those anticipated. Among the risks and factors that could cause actual results to differ materially are: the Company’s ability to control Guangxi Yuchai Machinery Company Limited (“Yuchai”); the Company’s ability to consolidate Yuchai’s financial results; changes in the capital markets and interest rates; political, economic and social conditions in China such as government policies with respect to foreign investment, economic growth, inflation and the availability of credit; the effects of competition in the diesel engine market; the effects of inflation; the ability of Yuchai to control its expenses, capital expenditures and receivables, finance its working capital and capital expenditures and commercially introduce new products in the future; the Company’s ability to successfully implement the agreement it reached with Yuchai in July 2003 and the reorganization agreement of April 2005, as amended in December 2005; the effects of uncertainties in the Chinese legal system which could limit the legal protections available to foreign investors, including with respect to the enforcement of foreign judgments in China; and the effects of China becoming a member of the World Trade Organization. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, the Company can give no assurance that its expectations will be attained. In addition to the foregoing factors, a description of certain other risks and uncertainties which could cause actual results to differ materially can be found in the section captioned “Risk Factors” in the Company’s Annual Report on Form 20-F filed with the SEC under the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management on future events. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Other Events

1.		Announcement of Q2 2006 Performance

         On August 11, 2006 in Singapore, the Company issued a press release announcing its unaudited interim results for the three months and six months ended June 30, 2006. A copy of the press release dated August 11, 2006 is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Exhibits

99.1		Press Release of the Company dated August 11, 2006.

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: August 11, 2006

EXHIBITS INDEX

99.1		Press Release of the Company dated August 11, 2006.

Exhibit 99.1

CHINA YUCHAI INTERNATIONAL LIMITED
16 Raffles Quay #26-00 Hong Leong Building Singapore 048581
Tel : (65) 6220 8411 Fax : (65) 6226 0502

FOR IMMEDIATE RELEASE

CHINA YUCHAI INTERNATIONAL LIMITED ANNOUNCES
Q2 2006 PERFORMANCE

Singapore, August 11, 2006 — China Yuchai International Limited (CYI) today announced its performance for the quarter ended June 30, 2006 with a net income of Rmb50.2 million (US$6.2 million) as compared to a net income of Rmb85.9 million (US$10.4 million) for the same period in 2005.

Net sales of Rmb1,874.4 million (US$233.3 million) for the quarter ended June 30, 2006 represent an increase of 7% compared to Rmb1,754.4 million (US$212.0 million) for the same period last year. Total unit sales of 77,023 diesel engines for the quarter ended June 30, 2006 by our subsidiary, Guangxi Yuchai Machinery Company Limited (“Yuchai”) was 14% higher than the 67,581 unit sales of diesel engines for the same period last year. This increase in net sales was primarily attributable to higher demand for light-duty and industrial diesel engines.

Net sales of Rmb3,627.9 million (US$451.6 million) for the six months ended June 30, 2006 represent an increase of approximately 3% compared to Rmb3,515.3 million (US$424.7 million) for the same period last year. Total unit sales of 157,143 diesel engines for the six months ended June 30, 2006 was approximately 13% higher than the 138,514 unit sales of diesel engines for the same period last year. This was mainly due to the strong unit sales arising from Yuchai’s 4-series light-duty diesel and industrial engines.

The overall gross margin of 19.6% for the six months ended June 30, 2006 was 19% lower than the 24.2% gross margin of the same period last year mainly due to product sales mix and higher raw material costs. Yuchai sold 32% more of the lower margin light-duty diesel engines in the first half of 2006 compared to same period in 2005.

The increase in research and development costs is mainly due to higher expenditure relating to Yuchai’s engine development on Euro III and IV compliant engines.

For the six months ended June 30, 2006, selling, general and administrative expenses increased by approximately 3% due mainly to higher general and other higher operating expenses.

CYI’s share of equity loss in affiliates arising from CYI’s investments in Thakral Corporation Ltd and LKN-Primefield Limited amounted to Rmb7.6 million (US$0.9 million) for the six months ended June 30, 2006.

In the period ended June 30, 2006, trade account receivables increased as a result of higher sales volume and normal seasonality factors. Bank borrowings have increased for the period ended June 30, 2006 mainly due to increased capital expenditure payments made and higher working capital requirements during that six month period. During the quarter ended June 30, 2006, Yuchai entered into a credit facility with China Minsheng Bank to issue Rmb1.0 billion of bonds the proceeds of which are intended to be used for Yuchai’s general working capital requirements and to refinance its existing short-term bank loans. These bonds carry an interest coupon rate of 3.80% per annum which is lower than the normal term loan rates. An initial amount of Rmb500 million was received for the

CHINA YUCHAI INTERNATIONAL LIMITED

16 Raffles Quay #26-00 Hong Leong Building Singapore 048581
Tel : (65) 6220 8411 Fax : (65) 6226 0502

quarter ended June 30, 2006 and part of these funds are reported in the cash balances account intended to pay down Yuchai’s bank loans.

Basic and diluted net income per share for the six months ended June 30, 2006 was Rmb3.49 (US$0.44) compared to a basic and diluted net income per share of Rmb7.29 (US$0.88) for the same period in 2005.

Mr Philip Ting, Director and CFO commented that “the Chinese government has announced that economic growth accelerated to an estimated 11.3% in the second quarter 2006 as a result of higher manufacturing investments and exports. This led to higher demand for trucks and buses in China. Yuchai’s unit sales of diesel engines increased by approximately 13% for the six months ended June 30, 2006 as compared to the same period last year. This increase in unit sales is mainly in the lower margin 4-series light-duty engines and industrial engines. Most customers purchased mini-trucks and buses with light-duty diesel engines due to their affordability. This has been attributed to the tightening of the credit supply within the banking sector in China as part of the Chinese government’s attempts to reduce the overheating of the economy.

Yuchai has also seen an increased level of acceptance of the new super heavy-duty diesel engine — 6L/6M (previously called 6113) which achieved unit sales of 1,691 compared to 836 units sales for same period in 2005. Management believes that the future of this engine remains positive over the longer term because of anticipated demand for bigger trucks and buses in China.”

General Information

Yuchai has a strong brand name in China, with an extensive sales and marketing network. Yuchai’s products are of good quality and provide reliable performance. Yuchai has established itself as a major manufacturer of diesel engines in China with a significant market share.

CYI has filed with the U.S. Securities and Exchange Commission a copy of this press release on Form 6-K. A copy of such filing has also been sent to The New York Stock Exchange. Reference is made to such filing for cautionary statements which identify factors that could affect the forward looking statements contained in this press release.

China Yuchai International Limited
Executive Office
16 Raffles Quay
#26-00 Hong Leong Building
Singapore 048581
Tel: (65) 6220 8411
Fax: (65) 6226 0502

Contact persons:		Mr Teo Tong Kooi, President and Director Mr Philip Ting, Director and CFO

Note 1: The Company’s functional and reporting currency is Renminbi; the translation of amounts from Renminbi to U.S. dollars is solely for the convenience of the reader. Translation of amounts from Renminbi to U.S. dollars has been made at the rate of Rmb7.9956 = US$1.00, the rate quoted by the People’s Bank of China at the close of business on June 30, 2006. No representation is made that the Renminbi amounts could have been, or could be, converted into U.S. dollars at that rate or at any other certain rate on June 30, 2006 or at any other date.

Note 2: All financial data (both in Renminbi and U.S. dollars) is unaudited.

CHINA YUCHAI INTERNATIONAL LIMITED
UNAUDITED CONSOLIDATED INCOME STATEMENTS
For the period ended June 30, 2006
(RMB and US$ amounts expressed in thousands, except per share data)

		For Quarter ended June 30,												For six months ended June 30,
		2005				2006				2006				2005				2006				2006
		Rmb’000				Rmb’000				US$’000				Rmb’000				Rmb’000				US$’000
Net sales			1,754,368				1,874,421				233,343				3,515,325				3,627,904				451,631
Cost of goods sold			1,398,360				1,530,227				190,495				2,663,430				2,916,509				363,071
Gross profit			356,008				344,194				42,848				851,895				711,395				88,560
Research and development cost			27,583				45,152				5,621				64,571				77,923				9,700
Selling, general and administrative expenses			195,943				202,383				25,194				378,421				389,932				48,542
Operating income			132,482				96,659				12,033				408,903				243,540				30,318
Finance cost			15,606				30,948				3,853				25,468				53,228				6,626
Other net income			(11,611	)			(19,985	)			(2,488	)			(15,043	)			(22,097	)			(2,751	)
Share of equity in (income)/loss of affiliates			(2,304	)			7,453				928				(2,304	)			7,573				943
Income before income taxes and minority interests			130,791				78,243				9,740				400,782				204,836				25,500
Income tax expense			19,870				12,249				1,525				62,107				32,806				4,084
Income before minority interests			110,921				65,994				8,215				338,675				172,030				21,416
Minority interests in income of consolidated subsidiaries			25,016				15,841				1,972				79,125				41,786				5,202
Net income			85,905				50,153				6,243				259,550				130,244				16,214
Net income per common share		Rmb				Rmb				US$				Rmb				Rmb				US$
Basic and diluted			2.39				1.35				0.17				7.29				3.49				0.44
Weighted average number of shares outstanding			35,869,580				37,267,673				37,267,673				35,606,253				37,267,673				37,267,673

Note: The Company’s functional and reporting currency is Renminbi, the translation of amounts from Renminbi to U.S. dollars is solely for the convenience of the reader. Translation of amounts from Renminbi to U.S. dollars has been made at the rate of Rmb8.0329 = US$1.00, the rate quoted by the People’s Bank of China at the close of business on June 30, 2006. No representation is made that the Renminbi amounts could have been, or could be, converted into U.S. dollars at that rate or at any other certain rate on June 30, 2006 or at any other date.

CHINA YUCHAI INTERNATIONAL LIMITED
Selected Balance Sheet Items
(Rmb and US$ amounts expressed in thousands)

		As of				As of
		December 31, 2005				June 30, 2006
		(Audited)				(Unaudited)
		RMB				RMB				US$
Cash Balances			736,195				990,420				123,871
Trade Accounts Receivable, Net			1,146,227				1,942,668				242,967
Inventories, Net			1,636,283				1,564,644				195,688
Investment in Affiliated Companies			185,619				198,684				24,849
Net Current Assets			959,401				171,368				21,433
Total Assets			6,613,785				8,317,384				1,040,245
Trade Accounts Payable			1,642,980				2,053,319				256,806
Short-Term and Long-Term Borrowings			962,835				2,180,051				272,656
Shareholders’ equity and accumulated other comprehensive income			2,667,041				2,786,220				348,469

Note: The Company’s functional and reporting currency is Renminbi, the translation of amounts from Renminbi to U.S. dollars is solely for the convenience of the reader. Translation of amounts from Renminbi to U.S. dollars has been made at the rate of Rmb7.9956 = US$1.00, the rate quoted by the People’s Bank of China at the close of business on June 30, 2006. No representation is made that the Renminbi amounts could have been, or could be, converted into U.S. dollars at that rate or at any other certain rate on June 30, 2006 or at any other date.