SINGAPORE, Aug. 8 /Xinhua-EMWNews/ -- China Yuchai

International Limited (NYSE: CYD) ("China Yuchai" or the "Company"), today

announced the operating results of its key subsidiary, Guangxi Yuchai

Machinery Company Limited ("GYMCL"), the leading manufacturer and

distributor of diesel engines in China, for fiscal year 2007.



    This announcement is necessitated as a result of GYMCL's intention to

apply to the People's Bank of China ("PBOC") for approval for the issuance

of short term financing bonds of up to RMB1.1 billion to satisfy its

current capital expenditures and projected working capital requirements as

well as reduce financing costs. The Rules on the Information Disclosure for

short term financing bonds promulgated by the PBOC, mandate disclosure of

certain of the issuer's historical and current financial information to the

public and regular updating of such financial information as long as short

term financing bonds are outstanding. The Company will duly announce when

financial information of GYMCL, prepared by GYMCL under PRC GAAP, as

required to be publicly disclosed pursuant to PRC Regulations, is

available.



    The Company cautions that the underlying operating results were

prepared by GYMCL pursuant to PRC GAAP which has not been audited in

accordance with the standards of the Public Company Accounting Oversight

Board (United States), and represent only the operating results of its

subsidiary, GYMCL. The Company will consolidate the underlying operating

results, after adjusting to US GAAP, with the results of the other

operations of China Yuchai. Upon completion of the audit, the Company's

Audit Committee will then review and discuss with the Company and its

independent auditors, the 2007 audited consolidated financial statements.

The Annual Report on Form 20-F containing the 2007 audited consolidated

financial statements will be filed with the U.S. Securities and Exchange

Commission as soon as it is available.






    Highlights of the Non-US-GAAP Fiscal Year 2007 Operating Results of GYMCL

    -- Revenues increased 38% from RMB6.92 billion in 2006 to a record RMB

       9.55 billion

    -- Gross margins improved to 20.6% from 18.1% in 2006

    -- Net income was RMB 831.6 million, up approximately 456% from RMB 149.5

       million in the previous year

    Non-US-GAAP Fiscal Year 2007 Operating Results of GYMCL



    Total revenues for fiscal year 2007 increased to approximately RMB 9.55

billion, compared with RMB 6.92 billion for fiscal year 2006, reflecting a

38% growth. Total unit sales for 2007 were 383,000 units, representing a

35% increase from 284,000 units in 2006. These results have been primarily

driven by a very strong demand in the second half of 2007 ahead of the

implementation of National III (equivalent to Euro III) emission standards

in China in 2008. The original roll-out date was January 1, 2008 but this

was subsequently deferred to July 1, 2008. The results also reflect a

generally vibrant economy, with continuing infrastructure improvements and

an increase in living standards.



    Gross profit for fiscal year 2007 increased to approximately RMB 1.96

billion compared with RMB 1.25 billion for fiscal year 2006, a 56.8% growth

as gross margins improved to 20.6% because of a better product mix. As a

result, the operating income for fiscal year 2007 of approximately RMB

862.4 million, was a significant increase of about 385% from RMB177.8

million in the previous fiscal year.



    Net income for fiscal year 2007 was approximately RMB 831.6 million,

registering an improvement of approximately 456% from RMB149.5 million in

the previous fiscal year due mainly to volume increase and better product

mix.



    Use of Non-US-GAAP Operating Results Measures



    The results of GYMCL presented above have been prepared by GYMCL under

PRC GAAP which may differ significantly from US GAAP under which the

Company prepares its consolidated financial statements. The extent or

degree to which GYMCL PRC GAAP results will provide meaningful information

is dependent on the reader's level of familiarity with PRC GAAP and other

financial reporting regulations in China. Investors should be aware that US

GAAP results for the Company may be significantly different from those

presented above. For example, the Company expects that its US GAAP

consolidated net income could be materially different from the

above-mentioned GYMCL net income under PRC GAAP. No attempt has been made

by the Company to quantify the effects of the differences between PRC GAAP

and US GAAP as they apply to GYMCL's results or to undertake a complete

reconciliation of PRC GAAP to US GAAP. Upon any such quantification or

reconciliation, potential significant accounting and disclosure differences

may come to the Company's attention. Reliance by investors on the results

presented above should be limited accordingly. The historical information

may not be indicative of the Company's and GYMCL's future performance.

    About China Yuchai International



    China Yuchai International Limited, through its subsidiary, Guangxi

Yuchai Machinery Company Limited ("GYMCL"), 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. GYMCL also produces diesel power generators, which are

primarily used in the construction and mining industries. Through its

regional sales offices and authorized customer service centers, the Company

distributes its diesel engines directly to auto OEMs and retailers and

provides maintenance and retrofitting services throughout China. Founded in

1951, GYMCL 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 2007, GYMCL sold

approximately 383,000 diesel engines and was consistently ranked No. 1 in

unit sales by the China Association of Automobile Manufacturers. For more

information, please visit http://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 may be deemed forward-looking

statements. These forward- looking statements are based on current

expectations or beliefs, including, but not limited to, statements

concerning the Company's operations, financial performance and condition.

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 Company's

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

     Grayling Global

     Tel:   +1-646-284-9409

     Email: [email protected]

            [email protected]