Corporate information

1.	Corporate information

1.1

Incorporation

The consolidated financial statements of China Yuchai International Limited (the “Company”) and its subsidiaries (collectively, the “Group”) for the year ended December 31, 2017 were authorized for issue in accordance with a resolution of the directors on April 16, 2018.

China Yuchai International Limited is a limited company incorporated under the laws of Bermuda on April 29, 1993 whose shares are publicly traded. The registered office of the Company is located at 2 Clarendon House, Church Street, Hamilton HM11, Bermuda. On March 7, 2008, the Company registered a branch office in Singapore, located at 16 Raffles Quay #26-00, Hong Leong Building, Singapore 048581. The principal operating office is located at 16 Raffles Quay #39-01A, Hong Leong Building, Singapore 048581.

1.2

Investment in Guangxi Yuchai Machinery Company Limited

The Company was established to acquire a controlling financial 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 “PRC”). The principal markets for Yuchai’s diesel engines are truck and bus manufacturers in the PRC.

The Company owns, through six wholly-owned subsidiaries, 361,420,150 shares or 76.41% of the issued share capital of Yuchai (“Foreign Shares of Yuchai”). Guangxi Yuchai Machinery Group Company Limited (“State Holding Company” or “SHC”), a state-owned enterprise, owns 22.09% of the issued share capital of Yuchai (“State Shares of Yuchai”).

In December 1994, the Company issued a special share (the “Special Share”) at par value of US$0.10 to Diesel Machinery (BVI) Limited (“DML”), a company controlled by Hong Leong Corporation Limited, now known as Hong Leong (China) Limited (“HLC”). The Special Share entitles its holder to designate the majority of the Company’s Board of Directors (six of eleven). The Special Share is not transferable except to Hong Leong Asia Ltd. (“HLA”), the holding company of HLC, or any of its affiliates. During 2002, DML transferred the Special Share to HL Technology Systems Pte. Ltd. (“HLT”), a wholly-owned subsidiary of HLC.

As at December 31 2017, Yuchai has nine direct and thirty-three indirectly owned subsidiaries, three joint ventures and one associate. Guangxi Yuchai Machinery Monopoly Development Co., Ltd. (“YMMC”) and Guangxi Yuchai Accessories Manufacturing Company Limited (“GYAMC”) are the two most significant subsidiaries of Yuchai. YMMC has thirty wholly-owned subsidiaries (collectively “YMMC Group”) located at various provinces in the PRC. The principal business of YMMC Group are trading and distribution of spare parts of diesel engines and automobiles. GYAMC has one wholly-owned subsidiary (collectively “GYAMC Group”). The principal business of GYAMC Group are sales and manufacturing of spare parts and components of diesel engines. The detailed information of Yuchai’s significant subsidiaries, joint ventures and associates are disclosed in Notes 4, 5 and 6.

As used in this Consolidated Financial Statements, the term “Yuchai” refer to Guangxi Yuchai Machinery Company Limited and its subsidiaries.

Relating to Yuchai’s equity interest in Jining Yuchai Engine Company Limited

In September 2014, Yuchai transferred its entire 70% shareholding interest in Jining Yuchai Engine Company Limited (“Jining Yuchai’) to an independent third party (the “Purchaser”) for a consideration of RMB 1.00 Yuan. The other shareholder, Zhejiang Geely Holding Group also transferred its entire 30% shareholding interest in Jining Yuchai. Pursuant to the transfer, Yuchai entered into the following agreements with the Purchaser and Jining Yuchai:

(i)

Loan Agreement

Under the terms of the Loan Agreement entered into between the Purchaser and Jining Yuchai with Yuchai and its wholly-owned subsidiary, Guangxi Yulin Hotel Company Limited (“Lenders”), the Lenders agreed to extend loans with tenure of two years, of amounts not exceeding RMB 70 million, to Jining Yuchai, by way of entrusted loans, and such loans are solely to be utilized for Jining Yuchai’s working capital purpose. In 2016, Lenders further extend the loans to Jining Yuchai and provide financial support to its operation.

In addition, in consideration of the Lenders’ financial support to Jining Yuchai, as long as the Purchaser remains a shareholder in Jining Yuchai, irrespective of whether the loans remain outstanding or not, the Purchaser is prohibited from transferring all or part of its shareholding interest in Jining Yuchai to any third party without the prior written consent of the Lenders. The Purchaser has also granted the Lenders an irrevocable option to acquire all of its shareholding in Jining Yuchai at any time at a consideration not exceeding RMB 250. These two provisions are also contained in a separate undertaking letter issued and signed by the Purchaser to the Lenders.

The Purchaser, as long as it remains a shareholder in Jining Yuchai, will consult with the Lenders prior to the exercise of any of its powers in relation to Jining Yuchai. The Lenders have the right to recommend for appointment of Jining Yuchai’s legal representative and executive director.

(ii)

Management Agreement

In 2014, under the Management Agreement entered into between Yuchai and the Purchaser, Yuchai has been appointed by the Purchaser to manage Jining Yuchai in all matters relating to the running of its operations and management of its assets. The term of the agreement is for one year which may be extended upon mutual agreement and the management fee is RMB 240 per annum. In October 2016 the management agreement has been renewed and extended for one more year.

Yuchai through the above-mentioned contractual arrangements has the power to exercise effective control and is able to direct the activities of Jining Yuchai that most significantly affect its economic performance, and has the exposure or rights to receive benefits from Jining Yuchai from its involvement. Accordingly, Yuchai continues to consolidate the financial results of Jining Yuchai for financial year ended at December 2014, 2015 and 2016.

In November 2017, Yuchai acquired the entire equity interest in Jining Yuchai for a cash consideration of RMB250 from the Purchaser. The acquisition was made pursuant to the irrevocable option to acquire the shares in Jining Yuchai granted to Yuchai.

1.3

Investment in HL Global Enterprises Limited

In February 2006, the Group acquired debt and equity securities interest in HL Global Enterprises Limited (“HLGE”) through the Group’s wholly-owned subsidiaries, Grace Star Limited (“Grace Star”) and Venture Lewis Limited (“Venture Lewis’). HLGE is a public company listed on the main board of the Singapore Exchange Securities Trading Limited (“Singapore Exchange”) and primarily engaged in investment holding, and through its group companies, invests in rental property, hospitality and property developments in Asia.

The Group shareholding has changed through various transactions, the Group’s equity interest in HLGE was 49.4% as at December 31, 2011.

On January 13, 2012, Grace Star transferred 24,189,170 Series B redeemable convertible preference shares (“RCPS”), representing 100% of remaining unconverted Series B RCPS, in the capital of HLGE (the “Trust Preference Shares”) to the Trustee pursuant to a trust deed entered into between HLGE and the Trustee. On January 16, 2012, the Trust Preference Shares were mandatorily converted into 24,189,170 new ordinary shares in the capital of HLGE (the “Trust Shares”) resulting in the Group’s shareholding interest in HLGE decreasing from 49.4% to 48.1%. On April 4, 2012, as a result of the conversion of all the outstanding Series A redeemable convertible preference shares held by Venture Delta Limited and Grace Star, into new ordinary shares in the capital of HLGE, Group’s shareholding interest in HLGE increased from 48.1% to 48.9%. The Trust Shares are accounted for as treasury shares by HLGE, issued by HLGE and held by the Trust, which is considered as part of HLGE. As a result, the Group’s shareholding interest in HLGE is stated as 50.1%, based on the total outstanding ordinary shares of HLGE, net of the ordinary shares held by the Trustee under the Trust.

As of December 31, 2013, the Group’s interest in HLGE remained at 50.1%, based on the total outstanding ordinary shares of HLGE, net of the ordinary shares held by the Trustee under the Trust.

In 2014, the Group purchased in the open market an aggregate of 465,000 ordinary shares in the capital of HLGE. As of December 31, 2014, the Group’s interest in HLGE increased from 50.1% to 50.2%, net of the ordinary shares held by the Trustee under the Trust.

In 2015, HLGE undertook a share consolidation exercise to consolidate every 10 ordinary shares in the capital of HLGE into one ordinary share. Upon completion of the share consolidation exercise, the Group held 47,107,707 ordinary shares of HLGE. As at December 31, 2015, Group’s interest in HLGE was 50.2%, net of the ordinary shares held by the Trustee under the Trust.

As of December 31, 2016 and 2017, the Group’s shareholding interest in HLGE remains at 50.2%, net of the ordinary shares held by the Trustee under the Trust.

The Group considers HLGE as a subsidiary as it has power to exercise effective control and direct the activities of HLGE that most significantly affect its economic performance and has the exposure or rights to receive benefits from HLGE from its involvement.

Basis of preparation and accounting policies

12 Months Ended

Dec. 31, 2017

Basis of preparation and accounting policies

2.	Basis of preparation and accounting policies

2.1

Basis of preparation

The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

The consolidated financial statements have been prepared on a historical cost basis, except for derivative financial instruments and held for trading investment that have been measured at fair value. The consolidated financial statements are presented in Renminbi (“RMB”) and all values are rounded to the nearest thousand (“RMB’000”) except when otherwise indicated.

Translation of amounts from Renminbi to US Dollar (“USD”) is solely for the convenience of the reader. Translation of amounts from Renminbi to US Dollar has been made at the rate of RMB 6.3294 = US$1.00, the rate quoted by the People’s Bank of China at the close of business on February 28, 2018 and all values are rounded to the nearest thousand (“US$’000”) except when otherwise indicated.

2.2

Basis of consolidation

The consolidated financial statements comprise the financial statements of the Company and its subsidiaries (the “Group”) as at December 31, 2017. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group has:

•

Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee)

•

Exposure, or rights, to variable returns from its involvement with the investee

•

The ability to use its power over the investee to affect its returns

Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

•

The contractual arrangement with the other vote holders of the investee

•

Rights arising from other contractual arrangements

•

The Group’s voting rights and potential voting rights

The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary.

Profit or loss and each component of other comprehensive income (“OCI”) are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.

If the Group loses control over a subsidiary, it derecognizes the related assets (including goodwill), liabilities, non-controlling interest and other components of equity, while any resultant gain or loss is recognized in profit or loss. Any investment retained is recognized at fair value.

2.3

Summary of significant accounting policies

(a)

Business combinations and goodwill

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition date fair value and the amount of any non-controlling interests in the acquiree. For each business combination, the Group elects whether to measure the non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred and included in administrative expenses.

When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree.

If the business combination is achieved in stages, any previously held equity interest is re-measured at its acquisition date fair value and any resulting gain or loss is recognized in profit or loss.

Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date. Contingent consideration classified as an asset or liability that is a financial instrument and within the scope of IAS 39 Financial Instruments: Recognition and Measurement, is measured at fair value with the changes in fair value recognized in the statement of profit or loss.

Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interests, and any previous interest held over the net identifiable assets acquired and liabilities assumed. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognized at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognized in profit or loss.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.

Where goodwill has been allocated to a cash-generating unit and part of the operation within that unit is disposed of, the goodwill associated with the disposed operation is included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill disposed in this circumstance is measured based on the relative values of the disposed operation and the portion of the cash-generating unit retained.

(b)

Investments in associates and joint ventures

An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies.

A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control.

The considerations made in determining significant influence or joint control are similar to those necessary to determine control over subsidiaries.

The Group’s investments in its associates and joint ventures are accounted for using the equity method.

Under the equity method, the investment in an associate or a joint venture is initially recognized at cost. The carrying amount of the investment is adjusted to recognize changes in the Group’s share of net assets of the associate or joint venture since the acquisition date. Goodwill relating to the associate or joint venture is included in the carrying amount of the investment and is not tested for impairment separately.

The statement of profit or loss reflects the Group’s share of the results of operations of the associate or joint venture. Any change in OCI of those investees is presented as part of the Group’s OCI. In addition, when there has been a change recognized directly in the equity of the associate or joint venture, the Group recognizes its share of any changes, when applicable, in the statement of changes in equity. Unrealized gains and losses resulting from transactions between the Group and the associate or joint venture are eliminated to the extent of the interest in the associate or joint venture.

The aggregate of the Group’s share of profit or loss of an associate and a joint venture is shown on the face of the statement of profit or loss outside operating profit and represents profit or loss after tax and non-controlling interests in the subsidiaries of the associate or joint venture.

The financial statements of the associate or joint venture are prepared for the same reporting period as the Group. When necessary, adjustments are made to bring the accounting policies in line with those of the Group.

After application of the equity method, the Group determines whether it is necessary to recognize an impairment loss on its investment in its associate or joint venture. At each reporting date, the Group determines whether there is objective evidence that the investment in the associate or joint venture is impaired. If there is such evidence, the Group calculates the amount of impairment as the difference between the recoverable amount of the associate or joint venture and its carrying value, then recognizes the loss within “Share of (loss)/profit of associates and joint ventures, net of tax” in the statement of profit or loss.

Upon loss of significant influence over the associate or joint control over the joint venture, the Group measures and recognizes any retained investment at its fair value. Any difference between the carrying amount of the associate or joint venture upon loss of significant influence or joint control and the fair value of the retained investment and proceeds from disposal is recognized in profit or loss.

(c)

Current versus non-current classification

The Group presents assets and liabilities in statement of financial position based on current/non-current classification. An asset is current when it is:

•

Expected to be realized or intended to be sold or consumed in normal operating cycle

•

Held primarily for the purpose of trading

•

Expected to be realized within twelve months after the reporting period, or

•

Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

All other assets are classified as non-current.

A liability is current when:

•

It is expected to be settled in normal operating cycle

•

It is held primarily for the purpose of trading

•

It is due to be settled within twelve months after the reporting period, or

•

There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

The Group classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

(d)

Fair value measurement

The Group measures financial instruments, such as held for trading investments and derivatives, at fair value at each balance sheet date. Fair value related disclosures for financial instruments that are measured at fair value are summarized in the following notes:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

•

In the principal market for the asset or liability, or

•

In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the Group.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

•

Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities

•

Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

•

Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognized in the financial statements at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

An analysis of fair values of financial instruments and further details as to how they are measured are provided in Note 35.

(e)

Foreign currency translation

The Company’s functional currency is US Dollar. The Group’s consolidated financial statements are presented in Renminbi, which is also the functional currency of Yuchai, the largest operating segment of the Group.

Each entity in the Group determines its own functional currency, and items included in the financial statements of each entity are measured using that functional currency.

Transactions and balances

Transactions in foreign currencies are initially recorded by the Group’s entities at their respective functional currency spot rates at the date the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rate of exchange at the reporting date.

Differences arising on settlement or translation of monetary items are recognized in profit or loss with the exception of monetary items that are designated as part of the hedge of the Group’s net investment of a foreign operation. These are recognized in OCI until the net investment is disposed of, at which time, the cumulative amount is reclassified to profit or loss. Tax charges and credits attributable to exchange differences on those monetary items are also recorded in OCI.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of gain or loss on change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognized in OCI or profit or loss are also recognized in OCI or profit or loss, respectively).

Group companies

On consolidation, the assets and liabilities of foreign operations are translated into RMB at the rate of exchange prevailing at the reporting date and their statements of profit or loss are translated at average exchange rates during the reporting period. The exchange differences arising on translation for consolidation are recognized in OCI. On disposal of a foreign operation, the component of OCI relating to that particular foreign operation is recognized in profit or loss.

Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition are treated as assets and liabilities of the foreign operation and translated at the spot rate of exchange at the reporting date.

(f)

Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured, regardless of when the payment is received. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding discounts, rebates, taxes or duty. The Group has concluded that it is the principal in all of its revenue arrangements since it is the primary obligor in all the revenue arrangements, has pricing latitude and is also exposed to inventory and credit risks.

The specific recognition criteria described below must also be met before revenue is recognized.

Sale of goods

Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates. Revenue is recognized when the significant risks and rewards of ownership of the goods have been transferred to the buyer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, and there is no continuing management involvement with the goods and the amount of revenue can be measured reliably.

Sale of completed development properties

A development property is regarded as sold when the significant risks and rewards have been transferred to the buyer, which is normally on unconditional exchange of contracts. For conditional exchanges, sales are recognized only when all the significant conditions are satisfied.

Rendering of services

Revenue from rendering of services relates to project management contracts and hotel room and restaurant operations. Revenue is recognized over the period in which the services are rendered, by reference to completion of the specific transaction assessed on the basis of the actual service provided as a proportion of the total services to be performed.

Interest income

For all financial instruments measured at amortized cost and interest-bearing financial assets classified as available-for-sale, interest income is recorded using the effective interest rate (“EIR”). EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or liability. Interest income is included in “Other operating income” in the statement of profit or loss.

Rental income

Rental income arising from operating leases is accounted for on a straight-line basis over the lease terms and is included in revenue in the statement of profit or loss due to its operating nature.

Dividends

Dividend income is recognized when the Group’s right to receive the payment is established, which is generally when shareholders approve the dividend.

(g)

Government grants

Government grants are recognized where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an expense item, it is recognized as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is recognized as income in equal amounts over the expected useful life of the related asset.

(h)

Taxes

Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date in the countries where the Group operates and generates taxable income.

Current income tax relating to items recognized directly in equity is recognized in equity and not in the statement of profit or loss. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognized for all taxable temporary differences, except:

•

When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss

•

In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future

Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilized, except:

•

When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss

•

In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

Tax benefits acquired as part of a business combination, but not satisfying the criteria for separate recognition at that date, are recognized subsequently if new information about facts and circumstances change. The adjustment is either treated as a reduction to goodwill (as long as it does not exceed goodwill) if it was incurred during the measurement period or recognized in profit or loss.

The Group offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

Sales tax

Revenues, expenses and assets are recognized net of the amount of sales tax, except:

•

When the sales tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case, the sales tax is recognized as part of the cost of acquisition of the asset or as part of the expense item, as applicable

•

When receivables and payables are stated with the amount of sales tax included

The net amount of sales tax recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statement of financial position.

(i)

Non-current assets held for sale

The Group classifies non-current assets and disposal groups as held for sale if their carrying amounts will be recovered principally through a sale rather than through continuing use. Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the disposal of an asset (disposal group), excluding finance costs and income tax expense.

The criteria for held for sale classification is regarded as met only when the sale is highly probable and the asset or disposal group is available for immediate sale in its present condition. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the sale expected within one year from the date of the classification.

Property, plant and equipment and intangible assets are not depreciated or amortized once classified as held for sale.

Assets and liabilities classified as held for sale are presented separately as current items in the statement of financial position.

(j)

Cash dividend and non-cash distribution to equity holders of the parent

The Company recognizes a liability to make cash or non-cash distributions to equity holders of the parent when the distribution is authorized and the distribution is no longer at the discretion of the Company. A distribution is authorized when it is approved by the shareholders. A corresponding amount is recognized directly in equity.

Non-cash distributions are measured at the fair value of the assets to be distributed with fair value measurement recognized directly in equity.

Upon distribution of non-cash asset, any difference between the carrying amount of the liabilities and the carrying amount of the assets distributed is recognized in the statement of profit or loss.

(k)

Property, plant and equipment

Construction in progress is stated at cost, net of accumulated impairment losses, if any. Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of replacing part of the property, plant and equipment and borrowing costs for long-term construction projects if the recognition criteria are met. When significant parts of property, plant and equipment are required to be replaced at intervals, the Group depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in profit or loss as incurred. The present value of the expected cost for the decommissioning of an asset after its use is included in the cost of the respective asset if the recognition criteria for a provision are met.

Freehold land has an unlimited useful life and therefore is not depreciated. Asset under construction included in property, plant and equipment are not depreciated as these assets are not yet ready for intended use. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:


Freehold buildings	:	50 years
Leasehold land, buildings and improvements	:	Shorter of 15 to 50 years or lease term
Plant and machinery	:	3 to 20 years
Office furniture, fittings and equipment	:	3 to 20 years
Motor and transport vehicles	:	3.5 to 15 years

The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable.

An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss when the asset is derecognized.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

The Group capitalizes interest with respect to major assets under installation or construction based on the weighted average cost of the Group’s general borrowings and actual interest incurred for specific borrowings. Repairs and maintenance of a routine nature are expensed while those that extend the life of assets are capitalized.

Construction in progress represents factories under construction and machinery and equipment pending installation. All direct costs relating to the acquisition or construction of buildings and machinery and equipment, including interest charges on borrowings, are capitalized as construction in progress.

(l)

Investment properties

Investment properties are properties owned by the Group that are held to lease to third parties and earn rentals rather than for use in the production or supply of goods or services, or for administrative purposes, or in the ordinary course of business. Investment properties comprise completed investment properties and properties that are being constructed or developed for future use as investment properties.

Investment properties are initially recognized at cost, including transaction costs and subsequently carried at cost less accumulated depreciation and impairment losses. Depreciation is recognized in profit or loss on a straight-line basis over the estimated useful lives of the investment properties. The estimated useful life is 30 years. Depreciation methods, useful lives and residual values of investment properties are reassessed at each reporting date.

Investment properties are derecognized when either they have been disposed of or when they are permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gain or loss on the retirement or disposal of an investment property is recognized in profit or loss in the year of retirement or disposal.

Transfers are made to or from investment property only when there is a change in use.

(m)

Research and development costs

Research costs are expensed as incurred. The Group received research and development subsidies of RMB 26,815 and RMB 60,817 (US$9,609) for the years ended December 31, 2016 and 2017 respectively.

Development expenditures on an individual project are recognized as an intangible asset when the Group can demonstrate:

•

The technical feasibility of completing the intangible asset so that the asset will be available for use or sale

•

Its intention to complete and its ability to use or sell the asset

•

How the asset will generate future economic benefits

•

The availability of resources to complete the asset

•

The ability to measure reliably the expenditure during development

Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortization and accumulated impairment losses. Amortization of the asset begins when development is complete and the asset is available for use. Development costs are amortized over the period of expected future benefit. During the period of development, the asset is tested for impairment annually. In 2015, 2016 and 2017, capitalized development expenditures are not amortized because the intangible asset has not been completed.

(n)

Financial instruments – initial recognition and subsequent measurement

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets

Initial recognition and measurement

Financial assets are classified, at initial recognition, as financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments, available-for-sale financial assets, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.

Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognized on the trade date, i.e., the date that the Group commits to purchase or sell the asset.

The Group’s financial assets include cash and bank balances, bank deposits, trade and other receivables, quoted financial instruments and derivative financial instruments.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

•

Financial assets at fair value through profit or loss

•

Loans and receivables

•

Held-to-maturity investments

•

Available-for-sale financial assets

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss include financial assets held for trading and financial assets designated upon initial recognition at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments as defined by IAS 39.

Financial assets at fair value through profit and loss are carried in the statement of financial position at fair value with net changes in fair value presented as other operating expenses (negative net changes in fair value) or other operating income (positive net changes in fair value) in the statement of profit or loss.

Financial assets designated upon initial recognition at fair value through profit or loss are designated at their initial recognition date and only if the criteria under IAS 39 are satisfied. The Group has designated its remaining 7.7% shareholding interest in Thakral Corporation Ltd (“TCL”) as financial assets at fair value through profit or loss.

The Group evaluates its financial assets held for trading, other than derivatives, to determine whether the intention to sell them in the near term is still appropriate. When, in rare circumstances, the Group is unable to trade these financial assets due to inactive markets and management’s intention to sell them in the foreseeable future significantly changes, the Group may elect to reclassify them. The reclassification to loans and receivables and available-for-sale depends on the nature of the asset. This evaluation does not affect any financial assets designated at fair value through profit or loss using the fair value option at designation, as these instruments cannot be reclassified after initial recognition.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. After initial measurement, such financial assets are subsequently measured at amortized cost using the EIR method, less impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR.

The EIR amortization is included in “Other operating income” in the statement of profit or loss. The losses arising from impairment are recognized in the statement of profit or loss in finance costs for loans and in cost of sales or other operating expenses for receivables.

Held-to-maturity investments

Non-derivative financial assets with fixed or determinable payments and fixed maturities are classified as held-to-maturity when the Group has the positive intention and ability to hold them to maturity. After initial measurement, held-to-maturity investments are measured at amortized cost using the EIR, less impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance income in the statement of profit or loss. The losses arising from impairment are recognized in the statement of profit or loss as finance costs. The Group did not have any held-to-maturity investments as of December 31, 2016 and 2017.

Available-for-sale (“AFS”) financial assets

AFS financial assets include equity investments and debt securities. Equity investments classified as AFS are those that are neither classified as held for trading nor designated at fair value through profit or loss. Debt securities in this category are those that are intended to be held for an indefinite period of time and that may be sold in response to needs for liquidity or in response to changes in the market conditions.

After initial measurement, AFS financial assets are subsequently measured at fair value with unrealized gains or losses recognized in OCI and credited in the AFS reserve until the investment is derecognized, at which time the cumulative gain or loss is recognized in other operating income, or the investment is determined to be impaired, when the cumulative loss is reclassified from the AFS reserve to the statement of profit or loss in finance costs. Interest earned whilst holding AFS financial assets reported as interest income using the EIR method.

The Group evaluates whether the ability and intention to sell its AFS financial assets in the near term is still appropriate. When, in rare circumstances, the Group is unable to trade these financial assets due to inactive markets, the Group may elect to reclassify these financial assets if the management has the ability and intention to hold the assets for foreseeable future or until maturity.

For a financial asset reclassified from the AFS category, the fair value carrying amount at the date of reclassification becomes its new amortized cost and any previous gain or loss on the asset that has been recognized in equity is amortized to profit or loss over the remaining life of the investment using the EIR. Any difference between the new amortized cost and the maturity amount is also amortized over the remaining life of the asset using the EIR. If the asset is subsequently determined to be impaired, then the amount recorded in equity is reclassified to the statement of profit or loss.

The Group did not have AFS financial assets in 2016 and 2017.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e., removed from the Group’s consolidated statement of financial position) when:

•

The rights to receive cash flows from the asset have expired, or

•

The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a “pass-through” arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Group continues to recognize the transferred asset to the extent of the Group’s continuing involvement. In that case, the Group also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay.

Impairment of financial assets

The Group assesses, at each reporting date, whether there is objective evidence that a financial asset or a group of financial assets is impaired. An impairment exists if one or more events that has occurred since the initial recognition of the asset (an incurred “loss event”), has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated. Evidence of impairment may include indications that the debtors or a group of debtors is experiencing significant financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganization and observable data indicating that there is a measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults.

Financial assets carried at amortized cost

For financial assets carried at amortized cost, the Group first assesses whether impairment exists individually for financial assets that are individually significant, or collectively for financial assets that are not individually significant. If the Group determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for impairment and for which an impairment loss is, or continues to be, recognized are not included in a collective assessment of impairment.

The amount of any impairment loss identified is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future expected credit losses that have not yet been incurred). The present value of the estimated future cash flows is discounted at the financial asset’s original EIR.

The carrying amount of the asset is reduced through the use of an allowance account and the loss is recognized in statement of profit or loss. Interest income (recorded as “Other operating income” in the statement of profit or loss) continues to be accrued on the reduced carrying amount and is accrued using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. Loans together with the associated allowance are written off when there is no realistic prospect of future recovery and all collateral has been realized or has been transferred to the Group. If, in a subsequent year, the amount of the estimated impairment loss increases or decreases because of an event occurring after the impairment was recognized, the previously recognized impairment loss is increased or reduced by adjusting the allowance account. If a write-off is later recovered, the recovery is credited to finance costs in the statement of profit or loss.

AFS financial assets

For AFS financial assets, the Group assesses at each reporting date whether there is objective evidence that an investment or a group of investments is impaired.

In the case of equity investments classified as AFS, objective evidence would include a significant or prolonged decline in the fair value of the investment below its cost. “Significant” is evaluated against the original cost of the investment and “prolonged” against the period in which the fair value has been below its original cost. When there is evidence of impairment, the cumulative loss – measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that investment previously recognized in the statement of profit or loss – is removed from OCI and recognized in the statement of profit or loss. Impairment losses on equity investments are not reversed through profit or loss; increases in their fair value after impairment are recognized in OCI.

The determination of what is ‘significant’ or ‘prolonged’ requires judgment. In making this judgment, the Group evaluates, among other factors, the duration or extent to which the fair value of an investment is less than its cost.

In the case of debt instruments classified as AFS, the impairment is assessed based on the same criteria as financial assets carried at amortized cost. However, the amount recorded for impairment is the cumulative loss measured as the difference between the amortized cost and the current fair value, less any impairment loss on that investment previously recognized in the statement of profit or loss.

Future interest income continues to be accrued based on the reduced carrying amount of the asset, using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. The interest income is recorded as part of finance income. If, in a subsequent year, the fair value of a debt instrument increases and the increase can be objectively related to an event occurring after the impairment loss was recognized in the statement of profit or loss, the impairment loss is reversed through the statement of profit or loss.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Group’s financial liabilities include trade and other payables, loans and borrowings, and derivative financial instruments.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.

Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Group that are not designated as hedging instruments in hedge relationships as defined by IAS 39. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognized in the statement of profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit and loss are designated at the initial date of recognition, and only if the criteria in IAS 39 are satisfied. The Group has not designated any financial liability as at fair value through profit or loss.

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance costs in the statement of profit or loss.

This category generally applies to interest-bearing loans and borrowings. For more information, please refer to Note 16(b).

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statement of financial position if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

(o)

Derivative financial instruments

Initial recognition and subsequent measurement

The Group uses derivative financial instruments, such as forward currency contracts, to hedge its foreign currency risks. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss.

The Group does not apply hedge accounting.

(p)

Inventories

Inventories are valued at the lower of cost and net realizable value.

Costs incurred in bringing each product to its present location and condition are accounted for as follows:

•

Raw materials: purchase cost on a weighted average basis

•

Finished goods and work in progress: cost of direct materials and labor and a proportion of manufacturing overheads based on the normal operating capacity, but excluding borrowing costs

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

(q)

Impairment of non-financial assets

The Group assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (“CGU”) fair value less costs of disposal and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.

Impairment losses, including impairment on inventories, are recognized in the statement of profit or loss in expense categories consistent with the function of the impaired asset.

For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognized impairment losses no longer exist or have decreased. If such indication exists, the Group estimates the asset’s or CGU’s recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the statement of profit or loss.

Goodwill is tested for impairment annually and when circumstances indicate that the carrying value may be impaired.

Impairment is determined for goodwill by assessing the recoverable amount of each CGU (or group of CGUs) to which the goodwill relates. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognized. Impairment losses relating to goodwill cannot be reversed in future periods.

(r)

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits, and short-term, highly liquid investments that are readily convertible to known amount of cash and which are subject to an insignificant risk of changes in value.

(s)

Leases

The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that asset is or those assets are not explicitly specified in an arrangement.

Prepaid operating lease

Prepaid operating lease represents payments made to the PRC land bureau for land use rights, which are charged to expense on a straight-line basis over the respective periods of the rights which are in the range of 15 to 50 years.

Group as a lessee

A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially all the risks and rewards incidental to ownership to the Group is classified as a finance lease.

Finance leases are capitalized at the commencement of the lease at the inception date fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognized in finance costs in the statement of profit or loss.

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Group will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.

An operating lease is a lease other than a finance lease. Operating lease payments are recognized as an operating expense in the statement of profit or loss on a straight-line basis over the lease term.

Group as a lessor

Leases in which the Group does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized over the lease term on the same basis as rental income.

(t)

Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use or sale. To the extent that funds are borrowed specifically for the purpose of obtaining the asset, the amount of borrowing costs eligible for capitalization should be determined as the actual borrowing costs incurred less any investment income on the temporary investment of those borrowings. To the extent that funds are borrowed generally and used for the purpose of obtaining the asset, the amount of borrowing costs eligible for capitalization is by applying a capitalization rate to the expenditures on that asset. The capitalization rate should be the weighted average of the borrowing costs applicable to the borrowings of the enterprise that are outstanding during the period, other than borrowings made specifically for the purpose of obtaining a qualifying asset. The amount of borrowing costs capitalized during a period should not exceed the amount of borrowing costs incurred during that period.

(u)

Provisions

General

Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Group expects some or all of a provision to be reimbursed, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit or loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Product warranty

The Group recognizes a liability at the time the product is sold, for the estimated future costs to be incurred under the lower of a warranty period or warranty mileage on various engine models, on which the Group provides free repair and replacement. For on-road applications engines, warranties extend for a duration (generally 3 to 36 months) or mileage (generally 20,000 to 300,000 kilometers), whichever is the lower. For other applications engines, warranties extend for a duration of generally 12 to 24 months. Provisions for warranty are primarily determined based on historical warranty cost per unit of engines sold adjusted for specific conditions that may arise and the number of engines under warranty at each financial year. If the nature, frequency and average cost of warranty claims change, the accrued liability for product warranty will be adjusted accordingly.

(v)

Pensions and other post-employment benefits

The Group participates in and makes contributions to the national pension schemes as defined by the laws of the countries in which it has operations. The contributions are at a fixed proportion of the basic salary of the staff. Contributions are recognized as compensation expense in the period in which the related services are performed.

(w)

Share-based payments

Employees (including senior executives) of the Group receive remuneration in the form of share-based payments, whereby employees render services as consideration for equity instruments (“equity-settled transactions”).

Equity-settled transactions

The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model.

That cost is recognized in “staff cost” (Note 8.4), together with a corresponding increase in performance share reserve in equity, over the period in which the performance and/or service conditions are fulfilled (the vesting period). The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of equity instruments that will ultimately vest. The expense or credit in the statement of profit or loss for a period represents the movement in cumulative expense recognized as at the beginning and end of that period.

No expense is recognized for awards that do not ultimately vest, except for equity-settled transactions for which vesting is conditional upon a market or non-vesting condition. These are treated as vested irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied.

When the terms of an equity-settled award are modified, the minimum expense recognized is the expense had the terms not been modified, provided the original terms of the award are met. An additional expense, measured as at the date of modification, is recognized for any modification that increases the total fair value of the share-based payment transaction, or is otherwise beneficial to the employee. Where an award is cancelled by the entity or by the counterparty, any remaining element of the fair value of the award is expensed immediately through profit or loss.

The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share (further details are given in Note 10).

(x)

Development properties

Development properties are properties acquired or being constructed for sale in the ordinary course of business, rather than to be held for the Group’s own use, rental or capital appreciation.

Development properties are held as inventories and are measured at the lower of cost and net realizable value.

Non-refundable commissions paid to sales or marketing agents on the sale of real estate units are expensed when incurred.

Costs to complete development include cost of land and other direct and related development expenditure, including borrowing costs incurred in developing the properties. Net realizable value of development properties is the estimated selling price in the ordinary course of business, based on market prices at the reporting date and discounted for the time value of money if material, less the estimated costs of completion and the estimated costs necessary to make the sale.

(y)

Segment reporting

For management purposes, the Group is organized into operating segments based on their products and services which are independently managed by the respective segment managers responsible for the performance of the respective segments under their charge. The segment manager’s report directly to the management of the Company who regularly review the segment results in order to allocate resources to the segments and to assess the segment performance. Additional disclosures on each of these segments are shown in Note 32, including the factors used to identify the reportable segments and the measurement basis of segment information.

2.4

Changes in accounting policy and disclosures

New and amended standards and interpretations

The Group applied for the first time certain amendments to the standards, which are effective for annual periods beginning on or after January 1, 2017. The Group has not early adopted any standards, interpretations or amendments that have been issued but are not yet effective.

The nature and the effect of these changes are disclosed below. Although these new standards and amendments applied for the first time in 2017, they did not have a material impact on the annual consolidated financial statements of the Group. The nature and the impact of each new standard or amendment is described below:

IAS 7 Disclosure Initiative – Amendments to IAS 7

The amendments require entities to provide disclosure of changes in their liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes (such as foreign exchange gains or losses). The Group has provided the information for both the current and the comparative period in Note 36.

IAS 12 Recognition of Deferred Tax Assets for Unrealized Losses – Amendments to IAS 12

The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits against which it may make deductions on the reversal of that deductible temporary difference. Furthermore, the amendments provide guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their carrying amount.

The Group applied amendments retrospectively. However, their application has no effect on the Group’s financial position and performance as the Group has no deductible temporary differences or assets that are in the scope of the amendments.

IFRS Practice Statement 2: Making Materiality Judgements

The Practice Statement (PS) contains non-mandatory guidance to help entities making materiality judgements when preparing general purpose IFRS financial statements. The PS may also help users of financial statements to understand how an entity makes materiality judgements in preparing such financial statements.

The PS comprises guidance in three main areas:

(i)

General characteristics of materiality

(ii)

A four-step process that may be applied in making materiality judgements when preparing financial statements. This process describes how an entity could assess whether information is material for the purposes of recognition, measurement, presentation and disclosure.

(iii)

How to make materiality judgements in specific circumstances, namely, prior period information, errors and covenants and in the context of interim reporting.

Furthermore, the PS discusses the interaction between the materiality judgements an entity is required to make and local laws and regulations. The PS includes examples illustrating how an entity might apply the guidance.

The PS is a non-mandatory document, it does not change or introduce any requirements in IFRS. However, the PS provides helpful guidance for entities making materiality judgements and thus may improve the communication effectiveness of financial statements.

Companies are permitted to apply the guidance in the PS to financial statements prepared any time after September 14, 2017.

The Group believe that appropriate materiality judgements have been made in the preparation of its consolidated financial statements for financial year ended December 31, 2017.

Annual improvements 2014-2016 cycle

Amendments to IFRS 12 Disclosure of Interests in Other Entities – Clarification of the scope of the disclosure requirements in IFRS 12

The amendments clarify that the disclosure requirements in IFRS 12, other than those in paragraphs B10–B16, apply to an entity’s interest in a subsidiary, a joint venture or an associate (or a portion of its interest in a joint venture or an associate) that is classified (or included in a disposal group that is classified) as held for sale.

These amendments have no material impact to the Group.

2.5

Standards issued but not yet effective

The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Group’s financial statements are disclosed below. The Group intends to adopt these standards, if applicable, when they become effective.

IFRS 9 Financial Instruments

In July 2014, the IASB issued the final version of IFRS 9 Financial Instruments that replaces IAS 39 Financial Instruments: Recognition and Measurement and all previous versions of IFRS 9. IFRS 9 brings together all three aspects of the accounting for financial instruments project: classification and measurement, impairment and hedge accounting. IFRS 9 is effective for annual periods beginning on or after January 1, 2018, with early application permitted. Except for hedge accounting, retrospective application is required but providing comparative information is not compulsory. For hedge accounting, the requirements are generally applied prospectively, with some limited exceptions.

The Group plans to adopt the new standard on the required effective date without restating prior periods’ information. During 2017, the Group has performed a detailed impact assessment of all three aspects of IFRS 9. This assessment is based on currently available information and may be subject to changes arising from further reasonable and supportable information being made available to the Group in 2018 when the Group will adopt IFRS 9.

Overall, except for the implementation of a change in the classification and measurement of bills receivable, the Group expects no significant impact on its consolidated statement of financial position and equity.

The Group does not apply hedge accounting.

The Group’s assessment of the elements of IFRS 9 is as described below:

(a)

Classification and measurement

The Group considers business model for managing the financial assets and contractual cash flow characteristics of the financial assets, and conclude that the measurement basis arising from adopting the new classification and measurement model under IFRS 9 as below.

Loans and trade and other receivables that are currently accounted for at amortized cost will continue to be accounted for using amortized cost model under IFRS 9. Loans as well as trade and other receivables are held to collect contractual cash flows and are expected to give rise to cash flows representing solely payments of principal and interest. The Group analyzed the contractual cash flow characteristics of those instruments and concluded that they meet the criteria for amortized cost measurement under IFRS 9. Therefore, reclassification for these instruments is not required.

Bills receivable that are currently accounted for at amortized cost will be accounted for at fair value through other comprehensive income under IFRS 9.

For financial assets currently held at fair value, the Group expects to continue measuring most of these assets at fair value under IFRS 9. Equity securities that are currently classified as held for trading will continue to be measured at fair value through profit or loss.

(b)

Impairment

IFRS 9 requires the Group to record expected credit losses on all of its trade receivables, either on a 12-month or lifetime basis. The Group will apply the simplified approach and record lifetime expected losses on all trade receivables. The Group does not expect a significant change in the expected loss allowance by adopting the new IFRS 9 compared with Group’s current practice.

(c)

Other adjustments

In addition to the adjustments described above, on adoption of IFRS 9, the Group does not expect significant adjustments to the other items of the consolidated financial statements.

In summary, the impact of IFRS 9 adoption is expected to result in a decrease in trade and other receivables by RMB 137.3 million (US$21.7 million) and a decrease in the equity by RMB 137.3 million (US$21.7 million) as of December 31, 2017.

IFRS 15 Revenue from Contracts with Customers

IFRS 15 was issued in May 2014 and amended in April 2016, establishes a five-step model to account for revenue arising from contracts with customers. Under IFRS 15, revenue is recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.

The new revenue standard will supersede all current revenue recognition requirements under IFRS. Either a full retrospective application or a modified retrospective application is required for annual periods beginning on or after January 1, 2018. Early adoption is permitted. The Group plans to adopt the new standard on the required effective date using the full retrospective method.

The Group has performed a preliminary impact assessment of IFRS 15 based on currently available information. This assessment may be subject to changes arising from ongoing analysis.

The Group expects the following impact upon the adoption of IFRS 15:

(a)

Warranty obligation

The Group provides certain warranties for both general repairs and maintenance services as part of the sales of goods. For general repairs, such warranties will be assurance-type warranties which will continue to be accounted for under IAS 37 Provisions, Contingent Liabilities and Contingent Assets consistent with its current practice. For maintenance services, under IFRS 15, such warranties will be accounted for as service-type warranties and, therefore, will be accounted for as a separate performance obligation for which the Group will allocate a portion of the transaction price to this performance obligation.

Upon the adoption of IFRS 15, the Group expects to record an adjustment to the consolidated statement of profit or loss for the financial year ended December 31, 2017 with a decrease in selling and distribution expenses by RMB 195.9 million (US$31.0 million), a decrease in revenue by RMB 21.1 million (US$3.3 million) and an increase in cost of sales by RMB 176.8 million (US$27.9 million). The Group also expects to record an adjustment to the consolidated statement of financial position as at December 31, 2017 with a decrease in provision for product warranty by RMB 19.1 million (US$3.1million), an increase in contract liability by RMB 21.1 million (US$3.3 million) and a decrease in retained earnings as at January 1, 2017 by RMB 5.3 million (US$0.8 million).

(b)

Variable consideration

•

Volume rebates and trade discounts

The Group provides volume rebates or trade discount to its customers. Currently, the Group recognizes revenue from the sale of goods measured at the fair value of the consideration received or receivable, net of volume rebates and trade discounts. Under its existing accounting policy, the Group estimates the expected volume rebates or trade discount using the expected amount of rebates approach and included them in accruals.

IFRS 15 requires the estimated variable consideration to be constrained to prevent over-recognition of revenue. The Group has closely monitored and assessed the provision for volume rebates and trade discounts and does not expect material impact in revenue recognition.

•

Rights of return

Under IFRS 15, an entity estimates the transaction price and recognizes revenue based on the amounts to which the entity expects to be entitled through the end of the return period, and recognize such amount of expected returns as a refund liability, representing its obligation to return the customer’s consideration.

To assess the impact in this regard, the Group has collated the statistics of actual sales return incurred for the past years. Based on the historical records and management estimates, the Group believes the effect from the sales with a right of return on adoption of IFRS 15 is insignificant to the overall financial results of the Group.

(c)

Performance obligation

Under IAS 18 Revenue, the sale of a certain intangible asset amounting to RMB 115.2 million (US$18.2 million) was recognized in 2017 as other income, as the requirement for the production milestone was fulfilled.

With the adoption of IFRS 15, management has reviewed and concluded that the Group had significantly performed its obligations in 2015. Therefore, upon the adoption of IFRS 15, it will result in a decrease in other operating income of RMB 115.2 million (US$18.2 million) and tax expense of RMB 26.0 million (US$4.1 million) for the financial year ended December 31, 2017, and a corresponding increase in retained earnings of RMB 89.2 million (US$14.1 million) as at January 1, 2017.

(d)

Presentation and disclosure requirements

The presentation and disclosure requirements in IFRS 15 are more detailed than under current IFRS. The presentation requirements represent a significant change from current practice and significantly increases the volume of disclosures required in the Group’s financial statements. Many of the disclosure requirements in IFRS 15 are new and the Group has assessed that the impact of some of these disclosures requirements will be significant. In particular, the Group expects that the notes to the financial statements will be expanded because of the disclosure of significant judgements made: when determining the transaction price of those contracts that include variable consideration, how the transaction price has been allocated to the performance obligations, and the assumptions made to estimate the stand-alone selling prices of each performance obligation. Also, extended disclosures are expected as a result of the significant judgement made when assessing the contracts where the Group has concluded that: it acts as an agent instead of a principal, there is a significant financing component, and service-type warranties are provided. In addition, as required by IFRS 15, the Group will disaggregate revenue recognized from contracts with customers into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. It will also disclose information about the relationship between the disclosure of disaggregated revenue and revenue information disclosed for each reportable segment. In 2017, the Group continued testing of appropriate systems, internal controls, policies and procedures necessary to collect and disclose the required information.

In summary, with the adoption of IFRS 15, the Group expects to record a decrease in its selling and distribution expenses by RMB 195.9 million (US$31.0 million), a decrease in revenue by RMB 21.1 million (US$3.3 million), a decrease in other operating income by RMB 115.2 million (US$18.2 million), a decrease in tax expense by RMB 26.0 million (US$ 4.1 million) and an increase in cost of sales by RMB 176.8 million (US$27.9 million) to its consolidated statement of profit or loss for the financial year ended December 31, 2017. The Group also expects to record a decrease in provision for product warranty by RMB 19.1 million (US$3.1 million), an increase in contract liability by RMB 21.1 million (US$3.3 million) and an increase in retained earnings by RMB 83.9 million (US$ 13.3 million) as at January 1, 2017.

Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture

The amendments address the conflict between IFRS 10 and IAS 28 in dealing with the loss of control of a subsidiary that is sold or contributed to an associate or joint venture. The amendments clarify that the gain or loss resulting from the sale or contribution of assets that constitute a business, as defined in IFRS 3, between an investor and its associate or joint venture, is recognized in full. Any gain or loss resulting from the sale or contribution of assets that do not constitute a business, however, is recognized only to the extent of unrelated investors’ interests in the associate or joint venture. The IASB has deferred the effective date of these amendments indefinitely, but an entity that early adopts the amendments must apply them prospectively.

The Group does not intend to early adopt the amendments. The Group will perform assessment on the impact once the IASB has decided the effective date of these amendments.

IFRS 2 Classification and Measurement of Share-based Payment Transactions – Amendments to IFRS 2

The IASB issued amendments to IFRS 2 Share-based Payment that address three main areas: the effects of vesting conditions on the measurement of a cash-settled share-based payment transaction; the classification of a share-based payment transaction with net settlement features for withholding tax obligations; and accounting where a modification to the terms and conditions of a share-based payment transaction changes its classification from cash settled to equity settled.

On adoption, entities are required to apply the amendments without restating prior periods, but retrospective application is permitted if elected for all three amendments and other criteria are met. The amendments are effective for annual periods beginning on or after January 1, 2018, with early application permitted.

The Group’s Equity Incentive Plan is considered an equity-settled share-based payment transactions and all the share options granted under this plan were vested in July 2017. The Group does not plan to elect for retrospective application and does not expect the amendments to have any material impact to the Group.

IFRS 16 Leases

IFRS 16 was issued in January 2016 and it replaces IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15 Operating Leases-Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under IAS 17. The standard includes two recognition exemptions for lessees – leases of ‘low-value’ assets (e.g., personal computers) and short-term leases (i.e., leases with a lease term of 12 months or less). At the commencement date of a lease, a lessee will recognize a liability to make lease payments (i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use asset). Lessees will be required to separately recognize the interest expense on the lease liability and the depreciation expense on the right-of-use asset.

Lessees will be also required to remeasure the lease liability upon the occurrence of certain events (e.g., a change in the lease term, a change in future lease payments resulting from a change in an index or rate used to determine those payments). The lessee will generally recognize the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset.

Lessor accounting under IFRS 16 is substantially unchanged from today’s accounting under IAS 17. Lessors will continue to classify all leases using the same classification principle as in IAS 17 and distinguish between two types of leases: operating and finance leases.

IFRS 16 also requires lessees and lessors to make more extensive disclosures than under IAS 17.

IFRS 16 is effective for annual periods beginning on or after January 1, 2019. Early application is permitted, but not before an entity applies IFRS 15. A lessee can choose to apply the standard using either a full retrospective or a modified retrospective approach. The standard’s transition provisions permit certain reliefs.

The Group plans to adopt the new standard on the required effective date. In 2018, the Group will continue to assess the potential effect of IFRS 16 on its consolidated financial statements.

IFRS 17 Insurance Contracts

In May 2017, the IASB issued IFRS 17 Insurance Contracts (“IFRS 17”), a comprehensive new accounting standard for insurance contracts covering recognition and measurement, presentation and disclosure. Once effective, IFRS 17 will replace IFRS 4 Insurance Contracts (“IFRS 4”) that was issued in 2005. IFRS 17 applies to all types of insurance contracts (i.e., life, non-life, direct insurance and re-insurance), regardless of the type of entities that issue them, as well as to certain guarantees and financial instruments with discretionary participation features. A few scope exceptions will apply. The overall objective of IFRS 17 is to provide an accounting model for insurance contracts that is more useful and consistent for insurers. In contrast to the requirements in IFRS 4, which are largely based on grandfathering previous local accounting policies, IFRS 17 provides a comprehensive model for insurance contracts, covering all relevant accounting aspects. The core of IFRS 17 is the general model, supplemented by:

•

A specific adaptation for contracts with direct participation features (the variable fee approach)

•

A simplified approach (the premium allocation approach) mainly for short-duration contracts

IFRS 17 is effective for reporting periods beginning on or after January 1, 2021, with comparative figures required. Early application is permitted, provided the entity also applies IFRS 9 and IFRS 15 on or before the date it first applies IFRS 17. This standard is not applicable to the Group.

IFRIC Interpretation 22 Foreign Currency Transactions and Advance Consideration

The interpretation clarifies that in determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or non-monetary liability relating to advance consideration, the date of the transaction is the date on which an entity initially recognizes the non-monetary asset or non-monetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, then the entity must determine a date of the transactions for each payment or receipt of advance consideration.

IFRIC 22 is effective for annual periods beginning on or after January 1, 2018. Early application of interpretation is permitted and must be disclosed.

Entities may apply the amendments on a fully retrospective basis. Alternatively, an entity may apply the interpretation prospectively to all assets, expenses and income in its scope that are initially recognized on or after:

(i)

The beginning of the reporting period in which the entity first applies the interpretation, or

(ii)

The beginning of a prior reporting period presented as comparative information in the financial statements of the reporting period in which the entity first applies the interpretation.

The Group does not expect the application of IFRIC 22 to have material impact to the Group.

IFRIC Interpretation 23 Uncertainty over Income Tax Treatments

The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of IAS 12. The Interpretation does not apply to taxes or levies outside the scope of IAS 12, nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments.

The Interpretation specifically addresses the following:

•

Whether an entity considers uncertain tax treatments separately

•

The assumptions an entity makes about the examination of tax treatments by taxation authorities

•

How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates

•

How an entity considers changes in facts and circumstances

An entity has to determine whether to consider each uncertain tax treatment separately or together with one or more other uncertain tax treatments. The approach that better predicts the resolution of the uncertainty should be followed.

The Interpretation is effective for annual reporting periods beginning on or after January 1, 2019, but certain transition reliefs are available.

The Group is currently assessing the impact of the interpretation and plans to adopt the interpretation on the required effective date.

Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts – Amendments to IFRS 4

The amendments address concerns arising from implementing the new financial instruments Standard, IFRS 9, before implementing IFRS 17 Insurance Contracts, which replaces IFRS 4. The amendments introduce two options for entities issuing insurance contracts:

(i)

Temporary exemption from IFRS 9

The optional temporary exemption from IFRS 9 permits entities whose predominant activities are connected with insurance to defer the application of IFRS 9 until 2021. The entities that defer the application of IFRS 9 will continue to apply the existing financial instruments Standard—IAS 39.

(ii)

The overlay approach

The overlay approach permits all issuers of insurance contracts to recognize in other comprehensive income, rather than profit or loss, the volatility that could arise when IFRS 9 is applied before the new insurance contracts Standard is issued.

The temporary exemption is first applied for reporting periods beginning on or after January 1, 2018. An entity may elect the overlay approach when it first applies IFRS 9 and apply that approach retrospectively to financial assets designated on transition to IFRS 9. The entity restates comparative information reflecting the overlay approach if, and only if, the entity restates comparative information when applying IFRS 9.

This amendment is not relevant to the Group as the Group is not an issuer of insurance contract.

Transfers of Investment Property -Amendments to IAS 40

The amendments clarify when an entity should transfer property, including property under construction or development into, or out of investment property. The amendments state that a change in use occurs when the property meets, or ceases to meet, the definition of investment property and there is evidence of the change in use. A mere change in management’s intentions for the use of a property does not provide evidence of a change in use.

The amendments are effective for annual periods beginning on or after January 1, 2018.

Entities should apply the amendments prospectively to changes in use that occur on or after the beginning of the annual reporting period in which the entity first applies the amendments. An entity should reassess the classification of property held at that date and, if applicable, reclassify property to reflect the conditions that exist at that date.

Retrospective application in accordance with IAS 8 is only permitted if that is possible without the use of hindsight. Early application of the amendments is permitted and must be disclosed.

The Group does not plan to early adopt the amendments and does not expect the amendments to have material impact to the Group.

Annual improvements 2014-2016 cycle (issued in December 2016)

IFRS 1 First-time Adoption of International Financial Reporting Standards - Deletion of short-term exemptions for first-time adopters

Short-term exemptions in paragraphs E3–E7 of IFRS 1 were deleted because they have now served their intended purpose. The amendment is effective from January 1, 2018. This amendment is not applicable to the Group.

AIP IAS 28 Investments in Associates and Joint Ventures – Clarification that measuring investees at fair value through profit or loss is an investment – by – investment choice

The amendments clarify that:

(i)

An entity that is a venture capital organization, or other qualifying entity, may elect, at initial recognition on an investment-by-investment basis, to measure its investments in associates and joint ventures at fair value through profit or loss.

(ii)

If an entity that is not itself an investment entity has an interest in an associate or joint venture that is an investment entity, the entity may, when applying the equity method, elect to retain the fair value measurement applied by that investment entity associate or joint venture to the investment entity associate’s or joint venture’s interests in subsidiaries. This election is made separately for each investment entity associate or joint venture, at the later of the date on which (a) the investment entity associate or joint venture is initially recognized; (b) the associate or joint venture becomes an investment entity; and (c) the investment entity associate or joint venture first becomes a parent.

The amendments should be applied retrospectively and are effective from January 1, 2018, with earlier application permitted. If an entity applies those amendments for an earlier period, it must disclose that fact.

The amendments are not expected to have any impact to the Group as the Group does not plan to measure its investments in associates and joint ventures at fair value through profit or loss.

Prepayment Features with Negative Compensation – Amendments to IFRS 9

Under IFRS 9, a debt instrument can be measured at amortized cost or at fair value through other comprehensive income, provided that the contractual cash flows are ‘solely payments of principal and interest on the principal amount outstanding’ (the SPPI criterion) and the instrument is held within the appropriate business model for that classification. The amendments to IFRS 9 clarify that a financial asset passes the SPPI criterion regardless of the event or circumstance that causes the early termination of the contract and irrespective of which party pays or receives reasonable compensation for the early termination of the contract.

The amendment is effective for annual periods beginning on or after January 1, 2019. The amendments must be applied retrospectively; earlier application is permitted. The amendment provides specific transition provisions if it is only applied in 2019 rather than in 2018 with the remainder of IFRS 9.

The Group does not plan to early adopt the amendments and does not expect the amendments to have material impact to the Group.

Modification or exchange of a financial liability that does not result in derecognition

The IASB clarified that the requirements in IFRS 9 for adjusting the amortized cost of a financial liability, when a modification (or exchange) does not result in derecognition, are consistent with those applied to the modification of a financial asset that does not result in derecognition.

The gain or loss arising on modification of a financial liability that does not result in derecognition, calculated by discounting the change in contractual cash flows at the original effective interest rate, is immediately recognized in profit or loss.

This clarification relates to the application of IFRS 9 and does not need to be applied to the accounting for modification of liabilities under IAS 39 Financial Instruments: Recognition and Measurement. Any entities that have not applied this accounting under IAS 39 are therefore likely to have a change of accounting on transition. As there is no specific relief, this change needs to be made retrospectively.

The Group does not plan to early adopt the amendments and does not expect the amendments to have material impact to the Group.

Long-term interests in associates and joint ventures – Amendments to IAS 28

The amendments clarify that an entity applies IFRS 9 Financial Instruments to long-term interests in an associate or joint venture to which the equity method is not applied but that, in substance, form part of the net investment in the associate or joint venture (long-term interests). This clarification is relevant because it implies that the expected credit loss model in IFRS 9 applies to such long-term interests.

The Board also clarified that, in applying IFRS 9, an entity does not take account of any losses of the associate or joint venture, or any impairment losses on the net investment, recognized as adjustments to the net investment in the associate or joint venture that arise from applying IAS 28 Investments in Associates and Joint Ventures.

The amendment is effective for annual periods beginning on or after January 1, 2019. Entities must apply the amendments retrospectively, with certain exceptions. Early application of the amendments is permitted and must be disclosed.

The amendments will eliminate ambiguity in the wording of the standard.

The amendment do not have any impact on the Group.

Annual improvements 2015-2017 cycle (issued in December 2017)

IFRS 3 Business Combinations – Previously held Interests in a joint operation

The amendments clarify that, when an entity obtains control of a business that is a joint operation, it applies the requirements for a business combination achieved in stages, including remeasuring previously held interests in the assets and liabilities of the joint operation at fair value.

An entity applies those amendments to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after January 1, 2019. Earlier application is permitted.

The Group does not plan to early adopt the amendments.

IFRS 11 Joint Arrangements – Previously held Interests in a joint operation

A party that participates in, but does not have joint control of, a joint operation might obtain joint control of the joint operation in which the activity of the joint operation constitutes a business as defined in IFRS 3. The amendments clarify that the previously held interests in that joint operation are not remeasured.

An entity applies those amendments to transactions in which it obtains joint control on or after the beginning of the first annual reporting period beginning on or after January 1, 2019. Earlier application is permitted.

The Group does not plan to early adopt the amendments.

IAS 12 Income Taxes – Income tax consequences of payments on financial instruments classified as equity

The amendments clarify that the income tax consequences of dividends are linked more directly to past transactions or events that generated distributable profits than to distributions to owners. Therefore, an entity recognizes the income tax consequences of dividends in profit or loss, other comprehensive income or equity according to where the entity originally recognized those past transactions or events.

An entity applies those amendments for annual reporting periods beginning on or after January 1, 2019. Earlier application is permitted. When an entity first applies those amendments, it applies them to the income tax consequences of dividends recognized on or after the beginning of the earliest comparative period.

The Group does not plan to early adopt the amendments. The Group does not expect the amendments to have material impact to the Group.

IAS 23 Borrowing Costs – Borrowing costs eligible for capitalization

The amendments clarify that an entity treats as part of general borrowings any borrowing originally made to develop a qualifying asset when substantially all of the activities necessary to prepare that asset for its intended use or sale are complete.

An entity applies those amendments to borrowing costs incurred on or after the beginning of the annual reporting period in which the entity first applies those amendments.

An entity applies those amendments for annual reporting periods beginning on or after January 1, 2019. Earlier application is permitted.

The Group does not plan to early adopt the amendments. The Group does not expect the amendments to have material impact to the Group.

Significant accounting judgments, estimates and assumptions

12 Months Ended

Dec. 31, 2017

Significant accounting judgments, estimates and assumptions

3.	Significant accounting judgments, estimates and assumptions

The preparation of the Group’s consolidated financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

3.1

Judgments

In the process of applying the Group’s accounting policies, management has made the following judgments, which have the most significant effect on the amounts recognized in the consolidated financial statements:

Consolidation of a structured entity

As discussed in Note 1.2 above, based on the contractual terms, the Group assessed that the voting rights in Jining Yuchai are not the dominant factor in deciding who controls Jining Yuchai. Also, it is assessed that there is insufficient equity financing to allow Jining Yuchai to finance its activities without the non-equity financial support from Yuchai. Therefore, the Group concluded that Jining Yuchai is a structured entity under IFRS 10 and, through the contractual arrangements, has the power to exercise effective control and is able to direct the activities of Jining Yuchai that most significantly affect its economic performance, and has the exposure or rights to receive benefits from Jining Yuchai from its involvement. Therefore, Jining Yuchai was consolidated in the Group’s consolidated financial statements for financial year 2015 and 2016. In 2017, Yuchai acquired 100% equity interest of Jining Yuchai from the Purchaser, Jining Yuchai became a wholly owned subsidiary of the Group and consolidated in the Group’s consolidated financial statements for financial year 2017.

Derecognition of bills receivable

The Group sell bills receivable to banks on an ongoing basis depending on funding needs and money market conditions. While the buyer is responsible for servicing the receivables upon maturity of the bills receivable, Chinese law governing bills allows recourse to be traced to all the parties in the discounting process. In relation to the transfer of risks and rewards of the bills receivable when discounted, the management believes that the risks and rewards relating to the bills receivable are substantially transferred to the banks. Accordingly, bills receivable are derecognized, and a discount equal to the difference between the carrying value of the bills receivable and cash received is recorded in the statement of profit or loss. Please refer to Note 20.

Deferred tax assets

Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. The carrying amounts of deferred tax assets as of December 31, 2016 and 2017 are RMB 308,207 and RMB 315,390 (US$49,829) respectively. If the Group was able to recognize all unrecognized deferred tax assets, profit would increase by RMB 182,726 (US$28,869) for year ended December 31, 2017 (2016: RMB 189,589).

3.2

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Group based its assumptions and estimates on parameters available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Group. Such changes are reflected in the assumptions when they occur.

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash-generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a discounted cash flow (“DCF”) model. The cash flows are derived from the forecasts for the next eight to fifteen years and do not include restructuring activities that the Group is not yet committed to or significant future investments that will enhance the asset’s performance of the CGU being tested. The Group, based on its history of operations, believes that the adoption of forecast for more than five years is reasonable. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes. These estimates are most relevant to goodwill recognized by the Group. The key assumptions used to determine the recoverable amount for the different CGUs and assets, including a sensitivity analysis, are disclosed and further explained in Note 6, Note 14 and Note 15.

Impairment of trade receivables

The Group makes impairment on trade receivables based on an assessment of the recoverability of trade receivables. Impairment is applied to trade receivables where events or changes in circumstances indicate that the balances may not be collectible. The identification of impairment requires the use of judgment and estimates. Judgment is required in assessing the ultimate realization of these receivables, including the current creditworthiness, past collection history of each customer and on-going dealings with them. Where the expectation is different from the original estimate, such difference will impact the carrying value of trade receivables and impairment loss in the period in which such estimate has been changed. The carrying amounts of impairment of trade receivables as of December 31, 2016 and 2017 were RMB 54,634 and RMB 43,775 (US$6,916) respectively.

Allowance for inventory obsolescence

Management reviews the inventory listing on a periodic basis. This review involves comparison of the carrying value of the inventory items with the respective net realizable value. The purpose is to ascertain whether an allowance is required to be made in the financial statements for any obsolete and slow-moving items. The carrying amounts of allowance for inventory obsolescence as at December 31, 2016 and 2017 were RMB 126,796 and RMB 106,895 (US$16,889) respectively.

Provision for product warranty

The Group recognizes a provision for product warranty in accordance with the accounting policy stated on Note 2.3(u). The Group has made assumptions in relation to historical warranty cost per unit of engines sold. The carrying amounts of the provision of product warranty as at December 31, 2016 and 2017 were RMB 238,850 and RMB 290,306 (US$45,866) respectively.

Withholding tax

The China’s Unified Enterprise Income Tax Law (“CIT law”) also provides for a tax of 10% to be withheld from dividends paid to foreign investors of PRC enterprises. This withholding tax provision does not apply to dividends paid out of profits earned prior to January 1, 2008. Beginning on January 1, 2008, a 10% withholding tax is imposed on dividends paid to the Company, as a non-resident enterprise, unless an applicable tax treaty provides for a lower tax rate and the Company will recognize a provision for withholding tax payable for profits accumulated after December 31, 2007 for the earnings that the Company does not plan to indefinitely reinvest in the PRC enterprises. The carrying amounts of deferred tax liabilities for withholding tax payable as of December 31, 2016 and 2017 are RMB 103,347 and RMB 100,572 (US$15,890) respectively.

The Company estimated the withholding tax by taking into consideration the dividend payment history of Yuchai and the operating cash flow needs of the Company.

Investments in subsidiaries

12 Months Ended

Dec. 31, 2017

Investments in subsidiaries

4.	Investments in subsidiaries

Details of significant subsidiaries of the Group are as follows:


Name of significant subsidiary	Place of incorporation/ business	Group’s effective equity interest
		31.12.2016		31.12.2017
		%		%

Guangxi Yuchai Machinery Company Limited	People’s Republic of China		76.4		76.4
Guangxi Yuchai Machinery Monopoly Development Co., Ltd	People’s Republic of China		54.9		54.9
Guangxi Yuchai Accessories Manufacturing Company Limited	People’s Republic of China		76.4		76.4
Guangxi Yuchai Equipment Mould Company Limited (formerly known as Guangxi Yulin Yuchai Accessories Manufacturing Company Limited)	People’s Republic of China		76.4		76.4
Guangxi Yulin Hotel Company Limited	People’s Republic of China		76.4		76.4
Jining Yuchai Engine Company Limited ⁽ⁱ⁾	People’s Republic of China		—		76.4
Yuchai Remanufacturing Services (Suzhou) Co., Ltd.	People’s Republic of China		76.4		76.4
HL Global Enterprises Limited	Singapore		50.2		50.2

Note:

⁽ⁱ⁾

In September, 2014, Yuchai disposed its 70% equity interest in Jining Yuchai. Subsequently, through contractual arrangements, Yuchai obtained 100% control in Jining Yuchai.

In November, 2017, Yuchai acquired 100% equity interest in Jining Yuchai, As a result, Jining Yuchai became a wholly owned subsidiary of Yuchai. For details, please refer to Note 1.2.

The Group has the following subsidiary that has non-controlling interests (“NCI”) that are material to the Group.


	31.12.2015			31.12.2016			31.12.2017
Proportion of equity interest held by NCI
Yuchai		23.6	%		23.6	%		23.6	%


	31.12.2015 RMB’000		31.12.2016 RMB’000		31.12.2017 RMB’000		31.12.2017 US$’000
Accumulated balances of material NCI
Yuchai				2,253,207		2,437,215		385,063

Profit allocated to material NCI
Yuchai		129,088		210,013		290,497		45,896

Dividends paid to material NCI
Yuchai		100,412		83,677		98,941		15,632

Summarized financial information including goodwill on acquisition and consolidation adjustments but before intercompany eliminations of subsidiaries with material non-controlling interests are as follows:


	31.12.2015
	Yuchai RMB’000
Summarized statement of comprehensive income
Revenue		13,671,931

Profit for the year, representing total comprehensive income for the year		547,216

Attributable to NCI		129,088

Summarized statement of cash flows
Operating		1,742,989
Investing		(33,515	)
Financing		(659,691	)

Net increase in cash and cash equivalents		1,049,783


	31.12.2016
	Yuchai
	RMB’000
Summarized statement of financial position
Current assets		12,448,174
Non-current assets, excluding goodwill		4,876,773
Goodwill		212,636
Current liabilities		(7,957,306	)
Non-current liabilities		(461,712	)

Net assets		9,118,565

Total equity		9,118,565

Attributable to NCI		2,253,207

Summarized statement of comprehensive income
Revenue		13,598,487

Profit for the year, representing total comprehensive income for the year		726,379

Attributable to NCI		210,013

Summarized statement of cash flows
Operating		2,329,367
Investing		(293,477	)
Financing		(1,697,173	)

Net increase in cash and cash equivalents		338,717


	31.12.2017
	Yuchai
	RMB’000			US$’000
Summarized statement of financial position
Current assets		14,717,316			2,325,231
Non-current assets, excluding goodwill		4,693,931			741,608
Goodwill		212,636			33,595
Current liabilities		(9,344,836	)		(1,476,417	)
Non-current liabilities		(495,429	)		(78,274	)

Net assets		9,783,618			1,545,743

Total equity		9,783,618			1,545,743

Attributable to NCI		2,437,215			385,063

Summarized statement of comprehensive income
Revenue		16,165,245			2,553,993

Profit for the year, representing total comprehensive income for the year		1,045,330			165,155

Attributable to NCI		290,497			45,896

Summarized statement of cash flows
Operating		1,385,156			218,845
Investing		(165,817	)		(26,198	)
Financing		221,660			35,021

Net increase in cash and cash equivalents		1,440,999			227,668

Significant restrictions

The nature and extent of significant restrictions on the Group’s ability to use or access assets and settle liabilities of subsidiaries with material non-controlling interests are:

Cash and cash equivalents of RMB 4,710,158 (US$744,171) (2016: RMB 3,270,182) held in the PRC are subject to local exchange control regulations. These regulations places restriction on the amount of currency being exported other than through dividends, trade and service related transactions.

Disposal of a subsidiary in 2015

On September 21, 2015, the Group disposed of one of its wholly-owned subsidiaries, Xiamen Yuchai Diesel Engines Co., Ltd. (“Xiamen Yuchai”) and the disposal consideration was settled in cash.

The value of assets and liabilities of the disposal recorded in the consolidated financial statements and the cash flow effect of the disposals were:


	31.12.2015
	RMB’000
Property, plant and equipment		66,597
Land use rights		17,661
Inventories		6,354
Trade receivables and other receivables		111,651
Deferred taxation		244
Cash and bank balances		18,797

		221,304
Payables and accruals		(17,161	)
Provision for taxation		(996	)

Carrying value of net assets		203,147

Total consideration		189,500
Net asset derecognized		(203,147	)

Loss on disposal of a subsidiary (Note 8.2(b))		(13,647	)

Total consideration		189,500
Cash and bank balances of the subsidiary		(18,797	)

Net cash inflow on disposal of the subsidiary		170,703

Acquisition of ownership in subsidiaries, without loss of control in 2015

(i)

In July 2015, Yuchai’s subsidiary company, YMMC acquired 40.00% of equity interest in Yunnan Yuchai Machinery Industry Company Limited (“YMMC Yunnan”) by way of offsetting trade receivables from the third party of RMB 18.3 million. As a result, YMMC Yunnan became wholly owned subsidiary of YMMC.

(ii)

In October 2015, Yuchai acquired 2.86% of equity interest in Guangxi Yulin Yuchai Accessories Manufacturing Company Limited which was renamed to Guangxi Yuchai Equipment Mould Company Limited (“YEMC”) in November 2017, from State Holding Company with a purchase consideration of RMB 4.2 million. As a result, YEMC became wholly owned subsidiary of Yuchai.

Acquisition of additional interest in a joint venture in 2016

In December 2016, Yuchai acquired an additional 32.5% equity interest in its 35% owned joint venture, YC Europe Co., Limited (“YC Europe”) through share allotment transfer and the injection of share capital will be completed in phases. Upon the full injection of capital, Yuchai’s equity interest in YC Europe will increase from 35% to 67.5%.

The Group has elected to measure the non-controlling interest at the non-controlling interest’s proportionate share of YC Europe’s net identifiable assets. There was no gain or loss on remeasuring previously held equity interest in YC Europe to fair value at the acquisition date.

YC Europe was newly incorporated in April 2015 to market off-road engines (excluding marine engines) in Europe. As at December 31, 2016, YC Europe is a subsidiary of the Group. The contribution from the acquisition to the Group’s financial performance for the year ended December 31, 2016, and net assets as at December 31, 2016 were not material.

Goodwill arising from the acquisition of RMB 1,131 was fully written off and recognized in the “other operating expenses” line item in the Group’s profit or loss for the year ended December 31, 2016.

Acquisition of ownership in subsidiaries, without loss of control in 2016

In September 2016, YMMC acquired 47.53% of equity interest in Sichuan Yuchai Machinery Industry Company Limited (“YMMC Sichuan”) from non-controlling interest for a cash consideration of RMB 8.9 million. As a result, YMMC Sichuan became wholly owned subsidiary of YMMC.

Acquisition of ownership in subsidiaries, without loss of control in 2017

(i)

In June 2017, GYAMC acquired 25% of equity interest in Guangxi Yuchai Crankshaft Co., Limited (“Crankshaft”) from non-controlling interest for a cash consideration of RMB 1.3 million. As a result, Crankshaft became wholly owned subsidiary of GYAMC.

(ii)

In October 2017, YMMC acquired 49% of equity interest in Hunan Yuchai Machinery Industry Company Limited (“YMMC Hunan”) from non-controlling interest for a cash consideration of RMB 6.7 million. As a result, YMMC Hunan became wholly owned subsidiary of YMMC.

(iii)

In November 2017, Yuchai acquired 100% issued shares in Jining Yuchai for a cash consideration of RMB 250. As a result, Jining Yuchai became wholly owned subsidiary of Yuchai.

Prior to the acquisition, Yuchai control 100% of Jining Yuchai through various contractual agreements and consolidated Jining Yuchai’s financial results in the Group’s consolidated financial statements. The acquisition would not have financial impact in the Group’s profit or loss for the year ended December 31, 2017.

Disposal of subsidiaries in 2017

On November 22, 2017, HLGE disposed its entire shareholding in its wholly-owned subsidiary, LKN Investment International Pte. Ltd (“LKNII”) together with LKNII’s wholly-owned subsidiary, Shanghai Hutai Real Estate Development Co., Ltd to a third party for a cash consideration of RMB395.0 million (US$62.4 million).

The value of assets and liabilities of the disposal recorded in the consolidated financial statements and the cash flow effect of the disposals were:


	31.12.2017			31.12.2017
	RMB’000			US$’000
Property, plant and equipment (Note 11)		104,844			16,565
Trade receivables and other receivables		3,257			514
Cash and bank balances		9,153			1,446

		117,254			18,525
Trade and other payables		(3,737	)		(590	)
Provision for taxation		(44	)		(7	)
Deferred taxation		(588	)		(93	)

Carrying value of net assets		112,885			17,835

Gain on disposal:
Total consideration		395,000			62,407
Less: Cost of disposal		(47,532	)		(7,510	)

Total consideration less cost of disposal		347,468			54,897
Net assets derecognized		(112,885	)		(17,835	)
Realization of foreign translation reserves upon disposal		(18,468	)		(2,917	)

Gain on disposal of the subsidiaries (Note 8.2(b))		216,115			34,145

Total consideration less cost of disposal		347,468			54,897
Add: Transaction cost unpaid		33,287			5,260
Less: Retention sum receivables		(30,000	)		(4,740	)
Cash and bank balances of the subsidiaries		(9,153	)		(1,446	)

Net cash inflow on disposal of the subsidiaries		341,602			53,971

Investment in associates

12 Months Ended

Dec. 31, 2017

Investment in associates

5.	Investment in associates

The Group’s investment in associates are summarized as below:

31.12.2015

31.12.2016

31.12.2017

RMB’000

US$’000

Share of profit/(loss) of associates, net of tax

245

456

(28

)

31.12.2016

31.12.2017

RMB’000

US$’000

Carrying amount of investment

3,836

2,185

345

Details of the associates are as follows:

Name of company

Principal activities

Place of

incorporation/

business

Group’s effective

equity interest

31.12.2016

31.12.2017

Held by subsidiaries

Sinjori Sdn. Bhd.

Property investment and development

Malaysia

14.0

Guangxi Yuchai Quan Xing Machinery Co., Ltd.

Manufacture spare part and sales of auto spare part, diesel engine & spare part, metallic materials, generator & spare part, chemical products (exclude dangerous goods), lubricating oil

People’s Republic of
China

15.3

Guangxi Yulin Yuchai Property Management Co., Ltd. (“Property Management”) ⁽ⁱ⁾

Property management

People’s Republic of
China

22.9

—

Note:

⁽ⁱ⁾

In August 2017, YEMC disposed its equity interest in Property Management to State Holding Company for a consideration of RMB 1,832 (US$289). As a result, the Group recognized net gain on disposal of associate of RMB199 (US$31) in the Group’s profit or loss for the year ended December 31, 2017.

Investment in joint ventures

12 Months Ended

Dec. 31, 2017

Investment in joint ventures

6.	Investment in joint ventures


	31.12.2015			31.12.2016			31.12.2017			31.12.2017
	RMB’000			RMB’000			RMB’000			US$’000
Share of (loss)/profit of joint ventures, net of tax:
Y & C Engine Co., Ltd.		(8,978	)		2,039			17,755			2,805
Copthorne Hotel Qingdao Co., Ltd. ⁽ⁱ⁾		6,941			(4,465	)		—			—
MTU Yuchai Power Co., Ltd.		—			—			(8,487	)		(1,341	)
Other joint ventures		(899	)		(1,642	)		814			129

		(2,936	)		(4,068	)		10,082			1,593


				31.12.2016			31.12.2017			31.12.2017
				RMB’000			RMB’000			US$’000
Carrying amount of investments:
Y & C Engine Co., Ltd.					169,064			122,235			19,312
MTU Yuchai Power Co., Ltd.					—			66,513			10,509
Other joint ventures					7,287			7,354			1,162

					176,351			196,102			30,983

Note:

⁽ⁱ⁾

Since February 23, 2016, the investment in Copthorne Hotel Qingdao Co., Ltd had been classified as asset held for sale in view of proposed disposal. The disposal was completed on October 19, 2017. (Refer to Note 22 for details).

The Group has interests in the following joint ventures:

Name of company

Principal activities

Place of

incorporation/

business

Group’s effective
equity interest

31.12.2016

31.12.2017

Held by subsidiaries

Copthorne Hotel Qingdao Co., Ltd. (“Copthorne Qingdao”)

Owns and operates a hotel in Qingdao, PRC

People’s

Republic of

China

30.1

—

HL Heritage Sdn. Bhd.

Property development and property investment holdings

Malaysia

30.1

Shanghai Hengshan Equatorial Hotel Management Co., Ltd.

Hotel and property management

People’s

Republic of

China

24.6

Y & C Engine Co., Ltd (“Y&C”)

Manufacture and sale of heavy duty diesel engines, spare parts and after-sales services

People’s

Republic of

China

34.4

Guangxi Yineng IOT Science & Technology Co., Ltd.

Design, development, management and marketing of an electronic operations management platform

People’s

Republic of

China

15.3

MTU Yuchai Power Co., Ltd (“MTU Yuchai Power”) ⁽ⁱ⁾

Manufacture off-road diesel engines

People’s

Republic of

China

—

38.2

Note:

⁽ⁱ⁾

MTU Yuchai Power was incorporated on January 18, 2017. During 2017, Yuchai had invested RMB 75.0 million (US$ 11.8 million) into the joint venture.

The Group assess impairment of investments when adverse events or changes in circumstances indicate that the carrying amounts may not be recoverable. If the recoverable amount of investment is below its carrying amount, an impairment charge is recognized. The Group performs evaluation of the value of its investment using a discounted cash flows projection or fair value less cost of disposal where appropriate. The projection will be performed using historical trends as a reference and certain assumptions to project the future streams of cash flows.

In 2015, the Group performed impairment evaluation of its investments in joint ventures. As a result, the Group reversed the earlier impairment of RMB 21.9 million for Copthorne Qingdao. The reversal was made because the fair value less cost of disposal estimated in the latest independent valuation report is higher than the carrying amount and the management had obtained the consent from its joint venture partner to sell the joint venture. The Group estimated the recoverable amounts of investment in Copthorne Qingdao based on its fair value less cost of disposal. The fair value is determined using recognized valuation technique, which is discounted cash flow method. The calculations require the use of key significant unobservable inputs (fair value level 3), which are occupancy rates, room rates, discount rates and gross margins of operating hotel. With regards to the valuation of the recoverable amount of Copthorne Qingdao, management believes that no reasonably possible changes in any of the key assumptions would cause the carrying value of the joint venture to materially exceed its recoverable amount.

In 2016 and 2017, the Group performed impairment evaluation of its investments in joint ventures, no impairment was required.

The summarized financial information of the joint ventures, based on their IFRS financial statements, and reconciliation with the carrying amount of the investment in consolidated financial statements are set out below:


	31.12.2015
	Y & C			Copthorne Qingdao			Total
	RMB’000			RMB’000			RMB’000
Revenue		356,697			50,971			407,668
Depreciation and amortization		(23,453	)		(12,079	)		(35,532	)
Interest expense		(19,612	)		(8,599	)		(28,211	)
Loss for the year, representing total comprehensive loss for the year		(19,952	)		(20,311	)		(40,263	)

Proportion of the Group’s ownership		45	%		60	%

Group’s share of loss		(8,978	)		(12,187	)
Depreciation arising from fair value adjustment during purchase price allocation		—			(2,804	)
Reversal of cumulative impairment loss		—			21,932

Group’s share of (loss)/profit of significant joint ventures		(8,978	)		6,941			(2,037	)

Group’s share of loss of other joint ventures, representing the Group’s share of total comprehensive loss of other joint ventures								(899	)

Group’s share of loss for the year, representing the Group’s share of total comprehensive loss for the year								(2,936	)


	31.12.2016
	Y & C			Total
	RMB’000			RMB’000
Non-current assets		616,397			616,397
Current assets
- Cash and bank balances		99,014			99,014
- Others		215,246			215,246

Total assets		930,657			930,657

Non-current liabilities		(60,382	)		(60,382	)
Current liabilities
- Interest-bearing loans and borrowings		(68,800	)		(68,800	)
- Others		(425,777	)		(425,777	)

Total liabilities		(554,959	)		(554,959	)

Equity		375,698			375,698

Proportion of the Group’s ownership		45	%

Group’s share of net assets		169,064

Carrying amount of significant joint ventures		169,064			169,064

Carrying amount of other joint ventures					7,287

Carrying amount of the investment in joint ventures					176,351


	2016
	Y & C			Copthorne Qingdao*			Total
	RMB’000			RMB’000			RMB’000
Revenue		553,878			3,674			557,552
Depreciation and amortization		(22,087	)		(2,797	)		(24,884	)
Interest expense		(14,012	)		(1,337	)		(15,349	)
Profit/(loss) for the year, representing total comprehensive loss for the year		4,531			(6,664	)		(2,133	)

Proportion of the Group’s ownership		45	%		60	%

Group’s share of profit/(loss)		2,039			(3,998	)
Depreciation arising from fair value adjustment during purchase price allocation		—			(467	)

Group’s share of profit/(loss) of significant joint ventures		2,039			(4,465	)		(2,426	)

Group’s share of loss of other joint ventures, representing the Group’s share of total comprehensive loss of other joint ventures								(1,642	)

Group’s share of loss for the year, representing the Group’s share of total comprehensive loss for the year								(4,068	)

On February 23, 2016, the investment in Copthorne Qingdao was classified as asset held for sale. Accordingly, the information presented includes the results of Copthorne Qingdao only for the period from January 1, 2016 to February 23, 2016.


	31.12.2017
	Y & C			MTU			Total			Total
	RMB’000			RMB’000			RMB’000			US$’000
Non-current assets		734,270			32,015			766,285			121,068
Current assets
- Cash and bank balances		199,925			113,055			312,980			49,449
- Others		367,293			22,775			390,068			61,628

Total assets		1,301,488			167,845			1,469,333			232,144

Non-current liabilities		(13,543	)		—			(13,543	)		(2,140	)
Current liabilities
- Interest-bearing loans and borrowings		(13,500	)		—			(13,500	)		(2,133	)
- Others		(842,765	)		(34,820	)		(877,585	)		(138,652	)

Total liabilities		(869,808	)		(34,820	)		(904,628	)		(142,925	)

Equity		431,680			133,025			564,705			89,219

Proportion of the Group’s ownership		45	%		50	%

Group’s share of net assets		194,256			66,513
Unrealized profit on transactions with joint venture		(72,021	)		—

Carrying amount of significant joint ventures		122,235			66,513			188,748			29,821

Carrying amount of other joint ventures								7,354			1,162

Carrying amount of the investment in joint ventures								196,102			30,983


	31.12.2017
	Y & C			MTU			Total			Total
	RMB’000			RMB’000			RMB’000			US$’000
Revenue		1,331,823			—			1,331,823			210,419
Depreciation and amortization		(20,831	)		(227	)		(21,058	)		(3,327	)
Interest expense		(28,663	)		(343	)		(29,006	)		(4,583	)
Profit/(loss) for the year, representing total comprehensive income for the year		55,982			(16,973	)		39,009			6,163

Proportion of the Group’s ownership		45	%		50	%

Group’s share of profit		25,192			(8,487	)
Unrealized profit on transactions with joint venture		(7,437	)		—

Group’s share of profit of significant joint ventures		17,755			(8,487	)		9,268			1,464

Group’s share of loss of other joint ventures, representing the Group’s share of total comprehensive loss of other joint ventures								814			129

Group’s share of profit for the year, representing the Group’s share of total comprehensive income for the year								10,082			1,593

Note:

As of December 31, 2017, the Group’s share of joint ventures’ capital commitment that are contracted but not paid was RMB 30,000 (US$4,740) (2016: RMB 10,982).

As of December 31, 2017, the Group’s share of outstanding bills receivables discounted with banks for which Y & C retained a recourse obligation totaled RMB Nil (US$Nil) (2016: RMB 1,440).

As of December 31, 2017, the Group’s share of outstanding bills receivables endorsed to suppliers for which Y & C retained a recourse obligation were RMB 23,288 (US$3,679) (2016: RMB 5,113).

Significant restrictions

The nature and extent of significant restrictions on the Group’s ability to use or access assets and settle liabilities of joint ventures are:

The Group’s share of cash and cash equivalents of RMB 67,238 (US$10,623) (2016: RMB 26,437) held in the PRC are subject to local exchange control regulations. These regulations places restriction on the amount of currency being exported other than through dividends, trade and service related transactions.

As at December 31, 2017, the Group’s share of restricted trade receivables of RMB 6,766 (US$1,069) (2016: RMB 34,403) that were factored to large banks in China. The Group’s joint venture have obligation to the banks for its trade receivables with recourse.

As at December 31, 2017, the Group’s share of restricted cash of RMB 80,452 (US$12,711) (2016: RMB 18,119) which was used as collateral by the banks for the issuance of bills to suppliers.

As at December 31, 2017, the Group’s share of bills receivables of RMB 12,150 (US$1,920) (2016: RMB Nil) which was used as collateral by banks for the issuance of bills to suppliers.

Revenue

12 Months Ended

Dec. 31, 2017

Revenue

7.	Revenue


	31.12.2015		31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		RMB’000		US$’000
Sale of goods		13,634,395		13,542,568		16,085,640		2,541,416
Sale of development property		—		—		710		112
Revenue from hotel and restaurant operations		94,053		110,718		127,971		20,219
Rental income		4,989		11,554		8,121		1,283

Revenue		13,733,437		13,664,840		16,222,442		2,563,030

Other income and expenses recognized in statement of profit and loss

12 Months Ended

Dec. 31, 2017

Other income and expenses recognized in statement of profit and loss

8.1

Depreciation and amortization, shipping and handling expenses

Depreciation of property, plant and equipment, investment property and amortization of prepaid operating leases are included in the following captions.


	31.12.2015		31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		RMB’000		US$’000
Cost of sales		319,962		322,289		307,102		48,520
Research and development expenses		58,204		56,812		48,291		7,630
Selling, general and administrative expenses		91,269		99,059		88,788		14,027

		469,435		478,160		444,181		70,177

Sales related shipping and handling expenses not separately billed to customers are included in the following caption:

31.12.2015

31.12.2016

31.12.2017

RMB’000

US$’000

Selling, general and administrative expenses

172,865

159,023

208,197

32,894

8.2

(a) Other operating income


	31.12.2015		31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		RMB’000		US$’000
Interest income		41,314		56,983		105,421		16,656
Dividend income from held for trading investment		—		943		2,532		400
Gain on disposal of subsidiaries (Note 4)		—		—		216,115		34,145
Gain on disposal of joint venture (Note 22)		—		—		107,976		17,059
Gain on disposal of associate		—		—		199		31
Gain on disposal of property, plant and equipment		—		—		11,668		1,843
Gain on disposal of intangible assets		—		—		115,235		18,206
Gain on disposal of prepaid operating leases		2,511		—		—		—
Gain on liquidation of joint venture		348		—		—		—
Government grants		31,205		41,515		34,337		5,425
Fair value gain on held for trading investment		—		—		12,768		2,017
Fair value gain on foreign exchange forward contract (Note 19)		15,506		—		—		—
Write-back of trade and other payables		9		—		29		5
Write-back of allowance for anticipated losses on development properties		2,976		—		—		—
Bad debt recovered		4,257		—		—		—
Foreign exchange gain, net		—		—		30,943		4,889
Others		8,805		18,513		10,129		1,600

		106,931		117,954		647,352		102,276

8.2

(b) Other operating expenses


	31.12.2015		31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		RMB’000		US$’000
Loss on disposal of property, plant and equipment		14,874		14,020		—		—
Loss on disposal of subsidiary		13,647		—		—		—
Loss on dilution of equity interest in joint venture		2,848		—		—		—
Foreign exchange loss, net		45,354		4,006		—		—
Fair value loss on held for trading investment		10,871		243		—		—
Fair value loss on foreign exchange forward contract		—		140		—		—
Goodwill written off		—		1,131		—		—
Others		—		3,059		22,719		3,589

		87,594		22,599		22,719		3,589

8.3

Finance costs


	31.12.2015		31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		RMB’000		US$’000
Bank term loans		57,212		34,477		53,888		8,514
Corporate bonds		54,116		27,581		—		—
Bills discounting		1,651		13,068		42,179		6,664
Bank charges		3,364		4,552		4,367		690
Finance lease		8		5		5		1

		116,351		79,683		100,439		15,869

8.4

Staff costs


	31.12.2015		31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		RMB’000		US$’000
Wages and salaries		839,288		922,847		1,158,320		183,006
Contribution to defined contribution plans		297,926		275,703		258,190		40,792
Executive bonuses		32,190		44,921		59,908		9,465
Staff welfare		73,908		81,223		76,392		12,069
Staff severance cost		8,385		12,864		107,732		17,021
Cost of share-based payment		10,275		5,301		1,592		252
Others		9,062		20,340		1,870		295

		1,271,034		1,363,199		1,664,004		262,900

Income tax expense

12 Months Ended

Dec. 31, 2017

Income tax expense

9.	Income tax expense

Income tax expense in the consolidated statement of profit or loss consists of:


	31.12.2015			31.12.2016		31.12.2017			31.12.2017
	RMB’000			RMB’000		RMB’000			US$’000

Current income tax
- Current year		104,584			104,149		197,264			31,167
- (Over)/under provision in respect of prior years		(47	)		7,175		(2,867	)		(453	)

Deferred tax
- Movement in temporary differences		72,281			48,946		25,770			4,071

Consolidated income tax expense reported in the statement of profit or loss		176,818			160,270		220,167			34,785

Income tax expense reported in the consolidated statement of profit or loss differs from the amount computed by applying the PRC income tax rate of 15% (being tax rate of Yuchai) for the years ended December 31, 2017, 2016 and 2015 for the following reasons:


	31.12.2015			31.12.2016			31.12.2017			31.12.2017
	RMB’000			RMB’000			RMB’000			US$’000
Accounting profit before tax		686,138			883,878			1,625,237			256,776
Computed tax expense of 15%		102,921			132,582			243,786			38,517
Adjustments resulting from:
Non-deductible expenses		9,815			7,039			21,982			3,473
Tax-exempt income		(5,574	)		(178	)		(58,324	)		(9,215	)
Utilization of deferred tax benefits previously not recognized		(2,001	)		(3,157	)		(7,374	)		(1,165	)
Deferred tax benefits not recognized		61,299			9,045			8,084			1,277
Tax credits for research and development expense		(27,087	)		(34,482	)		(34,428	)		(5,439	)
Tax rate differential		24,249			25,321			21,061			3,328
(Over)/under provision in respect of previous years current tax		(47	)		7,175			(2,867	)		(453	)
Withholding tax expense		13,126			16,925			29,447			4,652
Others		117			—			(1,200	)		(190	)

Total		176,818			160,270			220,167			34,785

Deferred tax

Deferred tax relates to the following:


	Consolidated statement of financial position									Consolidated statement of profit or loss
	31.12.2016			31.12.2017			31.12.2017			31.12.2015			31.12.2016			31.12.2017			31.12.2017
	RMB’000			RMB’000			US$’000			RMB’000			RMB’000			RMB’000			US$’000
Deferred tax liabilities
Accelerated tax depreciation		(10,521	)		(15,122	)		(2,389	)		(10,852	)		373			(4,601	)		(727	)
Unremitted earnings from overseas source income		(437	)		—			—			—			(25	)		—			—
Interest receivable		(1,453	)		(774	)		(122	)		—			(1,471	)		679			107
Derivatives not designated as hedges- foreign exchange forward contract		—			—			—			(2,326	)		2,326			—			—
PRC withholding tax on dividend income ⁽ⁱ⁾		(103,347	)		(100,572	)		(15,890	)		(12,549	)		(16,628	)		(29,031	)		(4,587	)

		(115,758	)		(116,468	)		(18,401	)		(25,727	)		(15,425	)		(32,953	)		(5,207	)

Deferred tax assets
Impairment of property, plant and equipment		2,876			12,319			1,946			409			(9,005	)		9,443			1,492
Write-down of inventories		21,209			17,493			2,764			(3,867	)		(4,421	)		(3,716	)		(587	)
Allowance for doubtful account receivables		9,340			7,376			1,165			(3,361	)		7,196			(1,964	)		(310	)
Accruals		185,952			204,730			32,346			17,253			(46,350	)		18,778			2,967
Deferred income		70,931			51,679			8,165			(44,232	)		10,045			(19,252	)		(3,042	)
Write down of intangible asset		—			—			—			(15,000	)		—			—			—
Others		17,899			21,793			3,443			2,244			9,014			3,894			616

		308,207			315,390			49,829			(46,554	)		(33,521	)		7,183			1,136

											(72,281	)		(48,946	)		(25,770	)		(4,071	)

Note:

⁽ⁱ⁾

The movement of PRC withholding tax on dividend income is as follows:


	31.12.2016			31.12.2017			31.12.2017
	RMB’000			RMB’000			US$’000
At January 1		(113,805	)		(103,347	)		(16,328	)
Provision made to consolidated statement of profit or loss		(16,628	)		(29,031	)		(4,587	)
Utilization		27,107			31,806			5,025
Translation differences		(21	)		—			—

December 31		(103,347	)		(100,572	)		(15,890	)

The CIT law provides for a tax of 10% to be withheld from dividends paid to foreign investors of PRC enterprises. This withholding tax provision does not apply to dividends paid out of profit earned prior to January 1, 2008. Beginning on January 1, 2008, a 10% withholding tax is imposed on dividends paid to the Company, as a non-resident enterprise, unless an applicable tax treaty provides for a lower tax rate. The Company recognizes a deferred tax liability for withholding tax payable for profits accumulated after December 31, 2007 for the earnings that the Company does not plan to indefinitely reinvest in the PRC enterprises. As of December 31, 2017, the deferred tax liability for withholding tax payable was RMB 100,572 (US$15,890) (2016: RMB 103,347). The amount of unrecognized deferred tax liability relating to undistributed earnings of the PRC enterprises is estimated to be RMB 228,008 (US$36,024) (2016: RMB 212,176).

The following table represents the classification of the Group’s net deferred tax assets:


	31.12.2016			31.12.2017			31.12.2017
	RMB’000			RMB’000			US$’000
Deferred tax assets		308,207			315,390			49,829
Deferred tax liabilities		(115,758	)		(116,468	)		(18,401	)

		192,449			198,922			31,428

Deferred tax assets have not been recognized in respect of the following items:


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000
Unutilized tax losses		515,207		479,410		75,743
Unutilized capital allowances and investment allowances		106,781		107,266		16,947
Other unrecognized temporary differences relating to provisions and deferred grants		224,087		230,269		36,381

		846,075		816,945		129,071

Unrecognized tax losses for the Group are subject to agreement with the tax authorities and compliance with tax regulations in the respective countries in which the Group operates. These losses relate to subsidiaries that have a history of losses, expire within the next 5 years and may not be used to offset taxable income elsewhere in the Group. Deferred tax assets have not been recognized in respect of these items because it is not probable that future taxable profits will be available against which the Group can utilize the benefits.

Earnings per share

12 Months Ended

Dec. 31, 2017

Earnings per share

10.

Earnings per share

Basic earnings per share amounts are calculated by dividing the profit for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year.

Diluted earnings per share amounts are calculated by dividing the profit attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

Basic earnings per share

The calculation of basic earnings per share is based on:


	31.12.2015		31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		RMB’000		US$’000
Profit attributable to ordinary equity holders of the parent		341,108		515,737		953,922		150,713

Weighted average number of ordinary shares		38,712,282		40,016,808		40,764,569		40,764,569

Diluted earnings per share

The weighted average number of ordinary shares adjusted for the effect of unissued ordinary shares under the Share Option Scheme is determined as follows:


	31.12.2015		31.12.2016		31.12.2017
Weighted average number of shares issued, used in the calculation of basic earnings per share		38,712,282		40,016,808		40,764,569
Diluted effect of share options		—		—		—

Weighted average number of ordinary shares adjusted for effect of dilution		38,712,282		40,016,808		40,764,569

In 2017, 470,000 (2016: 530,000; 2015: 570,000) share options granted to employees under the existing employee share option plan have not been included in the calculation of diluted earnings per share because they are anti-dilutive.

Property, plant and equipment

12 Months Ended

Dec. 31, 2017

Property, plant and equipment

11.

Property, plant and equipment


	Freehold land RMB’000		Leasehold land, buildings and improvements RMB’000			Construction in progress RMB’000			Plant and machinery RMB’000			Office furniture, fittings and equipment RMB’000			Motor and transport vehicles RMB’000			Total RMB’000
Cost
At January 1, 2016		13,301		2,307,160			328,117			4,969,820			181,448			114,681			7,914,527
Additions		—		23,621			232,474			8,514			17,757			2,627			284,993
Acquisition as subsidiary		—		—			—			—			29			—			29
Disposals		—		(16,492	)		—			(114,861	)		(6,966	)		(3,263	)		(141,582	)
Transfers		—		37,001			(224,440	)		186,620			142			296			(381	)
Write-off		—		—			—			—			(5	)		—			(5	)
Translation difference		429		356			—			(337	)		56			84			588

At December 31, 2016 and January 1, 2017		13,730		2,351,646			336,151			5,049,756			192,461			114,425			8,058,169
Additions		—		1,109			226,977			7,464			16,763			9,120			261,433
Disposal of subsidiary		—		(107,632	)		—			(35,490	)		(12,473	)		(255	)		(155,850	)
Disposals		—		(3,310	)		—			(10,064	)		(3,718	)		(5,481	)		(22,573	)
Transfers		—		81,486			(280,358	)		198,872			—			—			—
Write-off		—		(2,385	)		(1,674	)		(53,792	)		(15,307	)		(599	)		(73,757	)
Translation difference		263		1,954			—			88			2,228			(74	)		4,459

At December 31, 2017		13,993		2,322,868			281,096			5,156,834			179,954			117,136			8,071,881


Accumulated depreciation and impairment
At January 1, 2016		460		572,857			—			2,831,362			110,175			70,129			3,584,983
Charge for the year		—		78,504			—			359,046			21,248			6,295			465,093
Disposals		—		(8,720	)		—			(104,346	)		(6,514	)		(2,277	)		(121,857	)
Transfers		—		(24	)		—			—			—			—			(24	)
Impairment loss		—		—			—			3,297			—			—			3,297
Translation difference		7		(331	)		—			(160	)		(78	)		54			(508	)

At December 31, 2016 and January 1, 2017		467		642,286			—			3,089,199			124,831			74,201			3,930,984
Charge for the year		—		78,347			—			325,979			21,202			6,039			431,567
Disposal of subsidiary		—		(26,031	)		—			(15,040	)		(9,695	)		(240	)		(51,006	)
Disposals		—		(1,879	)		—			(10,191	)		(1,798	)		(4,733	)		(18,601	)
Write-off		—		(1,377	)		—			(51,087	)		(15,012	)		(599	)		(68,075	)
Impairment loss		—		—			1,055			19,790			—			—			20,845
Translation difference		17		104			—			62			1,998			(32	)		2,149

At December 31, 2017		484		691,450			1,055			3,358,712			121,526			74,636			4,247,863


Net book value
At December 31, 2016		13,263		1,709,360			336,151			1,960,557			67,630			40,224			4,127,185

At December 31, 2017		13,509		1,631,418			280,041			1,798,122			58,428			42,500			3,824,018

US$’000		2,134		257,752			44,245			284,091			9,231			6,715			604,168

An impairment loss of RMB 20,845 (US$ 3,293) (2016: RMB 3,297; 2015: RMB 2,873) was charged to the consolidated statement of profit or loss under “Cost of sales” for the Group’s property, plant and equipment within the Yuchai segment. The impairment loss for 2015, 2016 and 2017 was due to assets that were not in use.

As of December 31, 2017, property, plant and equipment with a carrying amount of RMB 82,710 (US$13,068) (2016: RMB 84,360) are pledged to secure bank facilities.

Finance leases

The carrying value of property, plant and equipment held under finance leases at December 31, 2017 was RMB 96 (US$15) (2016: RMB 144). In 2017, there was no addition of property, plant and equipment under finance leases (2016: RMB86).

Investment property

12 Months Ended

Dec. 31, 2017

Investment property

12.

Investment property


	31.12.2016			31.12.2017			31.12.2017
	RMB’000			RMB’000			US$’000

Cost
At January 1		31,323			31,776			5,020
Translation difference		453			1,169			185

At December 31		31,776			32,944			5,205


Accumulated depreciation
At January 1		23,886			24,478			3,867
Charge for the year		248			248			39
Translation difference		344			784			125

At December 31		24,478			25,510			4,031


Net carrying amount		7,298			7,434			1,174

Fair value		10,149			10,557			1,668

Consolidated statements of profit or loss:
Direct operating expenses (including repairs, maintenance and depreciation expense) arising from the rental generating property		(571	)		(508	)		(80	)

The Group has no restrictions on the realizability of its investment property and no contractual obligations to purchase, construct or develop investment property or for repairs, maintenance or enhancement.

The fair value is determined by independent professional valuers that has appropriate recognized professional qualifications and recent experience in the location and category of the property being valued. In valuing the investment property, due consideration is given to factors such as location and size of building, building infrastructure, market knowledge, historical transactions and other relevant factors to arrive at their opinion of value.

The following table shows information about fair value measurement of the investment property using significant unobservable inputs (Level 3):

Prepaid operating leases

12 Months Ended

Dec. 31, 2017

Prepaid operating leases

13.

Prepaid operating leases

Yuchai is granted land use rights of 15 to 50 years in respect of such land. Prepaid operating leases represent those amounts paid for land use rights to the PRC government.


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

Current		12,546		12,546		1,982
Non-current		379,636		367,270		58,026

Total		392,182		379,816		60,008


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

Cost
At January 1 and December 31		529,577		529,577		83,669


Accumulated amortization
At January 1		124,576		137,395		21,707
Charge for the year		12,819		12,366		1,954

At December 31		137,395		149,761		23,661


Net carrying amount		392,182		379,816		60,008

As of December 31, 2017, prepaid operating leases with a carrying amount of RMB Nil (US$Nil) (2016: RMB 71,022) are pledged to secure bank facilities.

Goodwill

12 Months Ended

Dec. 31, 2017

Goodwill

14.

Goodwill


	RMB’000		US$’000

Cost
At January 1, 2016, December 31, 2016, January 1, 2017 and December 31, 2017		218,311		34,492


Accumulated impairment
At January 1, 2016, December 31, 2017, January 1, 2017 and December 31, 2017		5,675		897


Net carrying amount
At December 31, 2016 and December 31, 2017		212,636		33,595

Goodwill represents the excess of costs over fair value of net assets of businesses acquired.

Goodwill acquired through business combinations have been allocated to two cash-generating units for impairment testing as follows:

•

Yuchai

•

Yulin Hotel. Goodwill allocated to Yulin Hotel was fully impaired in 2008.

Carrying amount of goodwill allocated to the cash-generating unit:

31.12.2016

31.12.2017

RMB’000

US$’000

Yuchai

212,636

33,595

Yuchai unit

The Group performs its impairment test annually. The recoverable amount of the unit was determined based on a value in use calculation using cash flow projections from financial budgets approved by senior management covering an eight-year period. The business of Yuchai is stable since the Group has control in 1994 and the business model of Yuchai is unlikely to change in the foreseeable future. The pre-tax discount rate applied to the cash flow projections was 12.84% (2016: 11.73%). No impairment was identified for this unit.

Key assumptions used in value in use calculations

The calculation of value in use for the cash-generating unit is most sensitive to the following assumptions:

•

Profit from operation

•

Discount rate

•

Growth rate used to extrapolate cash flows beyond the forecast period

Profit from operation – Profit from operation is based on management’s estimate with reference to historical performance of Yuchai unit.

Discount rate – Discount rate reflects management’s estimate of the risks specific to the cash-generating unit and is estimated based on weighted average cost of capital (“WACC”). The WACC takes into account both debt and equity. The cost of equity is derived from the expected return on investment by the Group’s investors. The cost of debt is based on the interest-bearing borrowings the cash-generating unit is obliged to service. This rate is weighted according to the optimal debt/equity structure arrived on the basis of the capitalization structure of the peer group.

Growth rate estimate – Growth rate is based on management’s estimate with reference to general available indication of long-term gross domestic product growth rate of China. The long term rates used to extrapolate the budget for Yuchai are 6.5% for 2017 and 2016 respectively.

Sensitivity to changes in assumptions

The implications of the key assumptions for the recoverable amount are discussed below:

Profit from operation – A decreased demand can lead to a decline in profit from operation. A decrease in demand by 2.37% (2016: 11.63%) would result in impairment.

Discount rate – A rise in pre-tax discount rate to 14.82% (2016: 12.52%) in the Yuchai unit would result in impairment.

Growth rate assumptions – Management recognizes that the speed of technological change and the possibility of new entrants can have a significant impact on growth rate assumptions. A reduction to 2.98% (2016: 5.32%) in the long-term growth rate in Yuchai unit would result in impairment.

With regard to the assessment of value in use of the Yuchai unit, management believes that no reasonably possible change in any of the above key assumptions would cause the recoverable amount to materially fall below the carrying value of the unit.

Intangible assets

12 Months Ended

Dec. 31, 2017

Intangible assets

15.

Intangible assets


	Development costs
	RMB’000

Cost
At January 1, 2016, December 31, 2016 and January 1, 2017		168,526
Disposal		(31,704	)

At December 31, 2017		136,822


Impairment
At January 1, 2016, December 31, 2016 and January 1, 2017		86,700
Charge to consolidated statement of profit or loss		40,000

At December 31, 2017		126,700


Net carrying amount
At December 31, 2016		81,826

At December 31, 2017		10,122


US$’000		1,599

In 2017, upon the completion of engineering design services for the heavy-duty engine platform to the Group’s joint venture company, Y&C, the respective technology development costs were transferred to consolidated statement of profit or loss under the line item “ other operating income” to record the net gain from the project.

At December 31, 2017, The Group has an intangible asset representing technology development costs held by Jining Yuchai with carrying amount of RMB 10,122 (US$1,599) (2016: RMB 50,122).

The Group perform an impairment review on intangible assets when there is a triggering event.

In 2015, the management performed impairment review based on the updated business plan after due considerations of a slowdown in the PRC economy. As a result, subsequent to the impairment loss of RMB 60,000 recorded in 2014, a further impairment loss of RMB 26,700 was charged to consolidated statement of profit or loss under the line item “selling, distribution and administrative costs” in respect of this technology development costs.

In 2016, management performed impairment review based on the updated business plan and no impairment loss was recognized.

In 2017, due to the stringent emission standard requirement, management revised its business plan and shortened the expected useful life of the intangible assets from 15 years to 10 years. As a result, a further impairment loss of RMB 40,000 (US$6,320) was charged to consolidated statement of profit or loss under the line item “selling, distribution and administrative costs”.

The recoverable amount was determined based on its value in use using the discounted cash flow approach. Cash flows were projected based on historical growth, past experience and management best estimation of future business outlook. The recoverable amount of the intangible asset was based on its value in use. The Group used a 10 years forecast, using pre-tax discount rate of 13.69%. The revised business plan projected 6 years, year 2023 to reach the commercial deployment of the technology. The revenue growth rate is estimated at 15.6% in 2023 and thereafter management assumed no revenue growth from 2024 to 2027. In 2016, the Group used a 15 years forecast, using pre-tax discount rate of 12.98%. The business plan projected 5 years, year 2021 to reach the commercial deployment of the technology. The revenue growth rate is estimated at 6.7% in 2022 and thereafter management assumed no revenue growth from 2023 to 2031.

If the pre-tax discount rate increased by 1% (2016: 1%) from management estimates, the Group’s impairment loss on intangible asset in Jining Yuchai would increase by RMB 6,731 (US$1,063) (2016: RMB 2,443).

Other financial liabilities

12 Months Ended

Dec. 31, 2017

Other financial liabilities

16.

Other financial liabilities

(a)

Other liabilities


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

Derivative not designated as hedges – foreign exchange forward contract		140		—		—
Finance lease liabilities (Note 31)		108		79		12

Total		248		79		12


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

Current		178		33		5
Non-current		70		46		7

Total		248		79		12

Foreign exchange forward contract

On December 21, 2016, Yuchai entered into a non-deliverable forward foreign exchange contract (“NDF”) with China Construction Bank (“CCB”) to purchase US$ 15.3 million at the forward exchange rate (RMB/US$) of 7.0439 on December 20, 2017. The Group accounted for this NDF at fair value through “other operating expense” in the statement of profit or loss.

(b)

Interest-bearing loans and borrowings


	Effective interest rate		Maturity		31.12.2016
	%				RMB’000
Current
Renminbi denominated loans		3.94		2017		753,750
USD denominated loans		3.70		2017		104,055
Singapore Dollar denominated loans⁽ⁱⁱ⁾		1.81		2017		33,616
Malaysian Ringgit denominated loans		5.90		2017		2,715

						894,136

Non-current
Malaysian Ringgit denominated loans		5.90		2020		16,270


	Effective interest rate		Maturity		31.12.2017		31.12.2017
	%				RMB’000		US$’000
Current
Renminbi denominated loans		3.99		2018		1,600,000		252,789


Non-current
Malaysian Ringgit denominated loans		5.95		2020		11,685		1,846
Singapore Dollar denominated loans⁽ⁱⁱ⁾		1.88		2020		14,656		2,316

						26,341		4,162

Note:

⁽ⁱ⁾

All loans balances as stated above do not have a callable feature.

⁽ⁱⁱ⁾

The loans comprise:


Issuer bank	Facility limit		Usage
			RMB’000
December 31, 2016
Bank of Tokyo-Mitsubishi, UFJ Ltd		S$ 30 million		16,808
Sumitomo Mitsui Banking Corporation		US$ 30 million		16,808

			33,616

December 31, 2017
Bank of Tokyo-Mitsubishi, UFJ Ltd		S$ 30 million		14,656

		US$’000		2,316

S$30.0 million credit facility with DBS Bank Ltd (“DBS”)

On May 22, 2015, the Company entered into a three year revolving uncommitted credit facility agreement with DBS with an aggregate value of S$30.0 million. Among other things, the terms of the facility required that HLA retains ownership of the special share and that the Company remain a consolidated subsidiary of HLA. The terms of the facility also included certain financial covenants with respect to the Company’s consolidated tangible net worth (as defined in the agreement) not being less than US$350 million, and the ratio of the consolidated total net debt (as defined in the agreement) to consolidated tangible net worth not exceeding 1.0 times. This arrangement was used to finance the Group general working capital requirements.

S$30.0 million credit facility with MUFG Bank Ltd, Singapore Brach (formally known as Bank of Tokyo Mitsubishi UFJ, Ltd., Singapore Branch) (“MUFG”)

On March 30, 2017, the Company entered into an unsecured multi-currency revolving credit facility agreement with MUFG for a committed aggregate value of S$30.0 million to refinance the S$30.0 million facility that matured on March 18, 2017. The facility is available for three years from the date of the facility agreement and will be used to finance the Company’s long-term general working capital requirements. Among other things, the terms of the facility require that HLA retains ownership of the Company’s special share and that the Company remains a consolidated subsidiary of HLA. The terms of the facility also include certain financial covenants with respect to the Company’s tangible net worth (as defined in the agreement) as at June 30 and December 31 of each year not being less than US$120 million and the ratio of the Company’s total net debt (as defined in the agreement) to tangible net worth as at June 30 and December 31 of each year not exceeding 2.0 times, as well as negative pledge provisions and customary drawdown requirements.

US$30.0 million credit facility with Sumitomo Mitsui Banking Corporation, Singapore Branch (“SMBC”)

On March 31, 2017, the Company entered into an uncommitted and unsecured multi-currency revolving credit facility agreement with SMBC for an aggregate value of US$30.0 million to refinance the US$30.0 million facility that matured on March 18, 2017. The facility is available for three years from the date of the facility agreement and will be utilized by the Company to finance its long-term general working capital requirements. The terms of the facility require, among other things, that HLA retains ownership of the special share and that the Company remains a principal subsidiary (as defined in the facility agreement) of HLA. The terms of the facility also include certain financial covenants with respect to the Company’s consolidated tangible net worth (as defined in the agreement) as at June 30 and December 31 of each year not less than US$200 million and the ratio of the Company’s consolidated total net debt (as defined in the agreement) to consolidated tangible net worth as at June 30 and December 31 of each year not exceeding 2.0 times, as well as negative pledge provisions and customary drawdown requirements.

Deferred grants

12 Months Ended

Dec. 31, 2017

Deferred grants

17.

Deferred grants


	31.12.2016			31.12.2017			31.12.2017
	RMB’000			RMB’000			US$’000

At January 1		360,783			337,889			53,384
Received during the year		13,639			50,095			7,915
Released to consolidated statement of profit or loss		(36,533	)		(34,337	)		(5,425	)

At December 31		337,889			353,647			55,874


Current (Note 28)		21,939			22,270			3,519
Non-current		315,950			331,377			52,355

		337,889			353,647			55,874

Inventories

12 Months Ended

Dec. 31, 2017

Inventories

18.

Inventories


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

Raw materials		904,737		1,188,396		187,758
Work in progress		26,807		34,924		5,518
Finished goods		732,335		1,349,425		213,199

Total inventories at the lower of cost and net realizable value		1,663,879		2,572,745		406,475


	31.12.2015			31.12.2016			31.12.2017			31.12.2017
	RMB’000			RMB’000			RMB’000			US$’000

Inventories recognized as an expense in cost of sales		9,566,699			9,308,265			11,021,960			1,741,391
Inclusive of the following charge/(credit):
- Inventories written down		59,339			48,202			17,492			2,764
- Reversal of write-down of inventories		(24,079	)		(53,373	)		(37,393	)		(5,908	)

The reversal of write-down of inventory was made when the related inventories were sold above their carrying value.

Other assets

12 Months Ended

Dec. 31, 2017

Other assets

19.

Other assets


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

Current
Development properties		23,378		23,833		3,765
Held for trading investment, quoted equity securities⁽ⁱ⁾		12,181		24,714		3,905

		35,559		48,547		7,670


	31.12.2016 RMB’000		31.12.2017 RMB’000		31.12.2017 US$’000

Non-current
Deferred expenditure⁽ⁱⁱ⁾		—		303		48

⁽ⁱ⁾

The quoted equity securities are listed on the Singapore Exchange.

⁽ⁱⁱ⁾

The deferred expenditure relate to the legal fees for an option to purchase for sale of lands entered with a buyer in 2016 and will be transferred to the profit or loss upon completion of the sale.

Trade and bill receivables

12 Months Ended

Dec. 31, 2017

Trade and bill receivables

20.

Trade and bill receivables


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

Trade receivables, net		241,168		212,104		33,511
Bill receivables ⁽ⁱ⁾		6,816,088		6,819,440		1,077,423

Total (Note 36)		7,057,256		7,031,544		1,110,934

⁽ⁱ⁾

As of December 31, 2017, bill receivables include bills issued by joint venture and other related parties amounted to RMB 69,816 (US$11,030) (2016: RMB 45,000) and RMB 23,832 (US$3,765) (2016: RMB 3,968) respectively.

Trade receivables, are non-interest bearing and are generally on 60 days’ term. They are recognized at their original invoice amounts which represent their fair values on initial recognition.

As of December 31, 2016 and 2017, outstanding bill receivables discounted with banks for which the Group retained a recourse obligation totaled RMB 817,391 and RMB 1,505,759 (US$237,899) respectively. All bill receivables discounted have contractual maturities within 12 months at time of discounting.

As of December 31, 2016 and 2017, outstanding bill receivables endorsed to suppliers with recourse obligation were RMB 851,099 and RMB 1,316,136 (US$207,940) respectively.

An analysis of the impairment of trade receivables is as follows:


	31.12.2016			31.12.2017			31.12.2017
	RMB’000			RMB’000			US$’000

At January 1		51,288			54,634			8,632
Charge/(credit) to consolidated statement of profit or loss		3,696			(10,854	)		(1,715	)
Written off		(346	)		(5	)		(1	)
Translation differences		(4	)		—			—

At December 31		54,634			43,775			6,916

The Group’s historical experience in the collection of trade receivables falls within the recorded allowances. Due to this factor, management believes that no additional credit risks beyond the amount provided for collection losses are inherent in the Group’s trade receivables.

As of December 31, 2016 and 2017, gross trade receivables due from a major customer, Dongfeng Automobile Co., Ltd. and its affiliates (the “Dongfeng companies”) were RMB 34,307 and RMB 24,580 (US$3,884), respectively. See Note 33 for further discussion of customer concentration risk.


			Neither past due		Past due but not impaired
	Total		nor impaired		0 – 90 days		91-180 days		181-365 days		>365 days
	RMB’000		RMB’000		RMB’000		RMB’000		RMB’000		RMB’000

At 31.12.2017		7,031,544		6,919,347		59,966		21,457		29,857		917
At 31.12.2016		7,057,256		6,995,511		37,902		12,062		9,654		2,127

Other receivables and prepayments

12 Months Ended

Dec. 31, 2017

Other receivables and prepayments

21.

Other receivables and prepayments


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

Staff advances		7,501		5,107		807
Associates and joint ventures		182,671		13,230		2,090
Other related parties		10,096		37,275		5,889
Interest receivables		6,775		4,345		686
Bills receivable in transit		29,134		32,013		5,058
Retention sums ⁽ⁱ⁾		—		30,000		4,740
Others		10,510		10,705		1,692

Loans and receivables (Note 36)		246,687		132,675		20,962
Tax recoverable		102,024		177,819		28,094
Prepayments		37,654		73,896		11,675

Total		386,365		384,390		60,731

For terms and conditions relating to related parties, refer to Note 30.

Note:

⁽ⁱ⁾

Retention sums relate to money deposits in an escrow account pending finalization of tax payable for the disposal of LKNII.

31.12.2016

31.12.2017

RMB’000

US$’000

Other receivables (non-current) ⁽ⁱ⁾ (Note 36)

1,588

620

⁽ⁱ⁾

Non-current non-trade receivables due from joint ventures and associate are unsecured, non-interest bearing and are to be settled in cash. These amounts are not expected to be repaid within the next 12 months.

Asset classified as held for sale

12 Months Ended

Dec. 31, 2017

Asset classified as held for sale

22.

Asset classified as held for sale

Sales of 60% of the issued ordinary shares in the capital of Copthorne Qingdao

The Group’s subsidiary company, LKN Investment International Pte Ltd, together with the joint venture partner of Copthorne Qingdao, had on February 23, 2016, listed the entire equity interest in Copthorne Qingdao on the Shanghai United Assets and Equity Exchange for sale and the sale was re-listed on March 28, 2016.

As a result, the investment in Copthorne Qingdao was classified as asset held for sale and the Group discontinued the use of equity method to recognize the interest in Copthorne Qingdao. Consequently, the Group only shared the loss incurred by Copthorne Qingdao up to February 23, 2016. As at December 31, 2016, the carrying amount of interest in joint venture, representing assets classified as held for sale is RMB 89,381 and related foreign translation reserve is RMB 22,720.

On October 19, 2017, the Group completed the disposal of its investment in Copthorne Qingdao and recognized gain on disposal of RMB107,976 (US$17,059) in the Group’s profit or loss for the year ended December 31, 2017.

The value of asset and related reserves of disposal recorded in the consolidated financial statements and the cash flow effect of the disposals were:


	31.12.2017			31.12.2017
	RMB’000			US$’000
Interest in joint venture, representing asset classified as held for sale		89,381			14,122

Gain on disposal:
Total consideration less cost of disposal		182,679			28,862
Interest in joint venture derecognized		(89,381	)		(14,122	)
Realization of foreign currency translation reserves upon disposal		22,720			3,590
Waiver of amount due by joint venture		(8,042	)		(1,271	)

Gain on disposal of joint venture (Note 8.2(a))		107,976			17,059

Total consideration less cost of disposal, representing net cash inflow on disposal of the joint venture		182,679			28,862

Cash and cash equivalents

12 Months Ended

Dec. 31, 2017

Cash and cash equivalents

23.

Cash and cash equivalents

Short-term bank deposits

Restricted cash

Long-term bank deposits


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000
Non-current
Long-term bank deposits ⁽ⁱ⁾		—		70,000		11,060


Current
Cash and cash equivalents		3,653,914		5,390,324		851,633
Short-term bank deposits ⁽ⁱⁱ⁾		363,043		514,074		81,220
Restricted cash		36,000		54,809		8,659

		4,052,957		5,959,207		941,512


Cash and bank balances		4,052,957		6,029,207		952,572

Note:

⁽ⁱ⁾

In 2017, YMMC placed two-year time deposits of RMB 70,000 (US$11,060) (2016: RMB Nil) at annual interest rate range from 2.94% to 3.15% with banks. These long-term deposits are not considered as cash equivalents.

⁽ⁱⁱ⁾

Short-term bank deposits relate to bank deposits with initial maturities of more than three months and subject to more than insignificant risk of changes in value upon withdrawal before maturity. The interest rate of these bank deposits as of December 31, 2017 for the Group ranged from 1.01% to 1.97% (2016: 0.83% to 1.76%). These short-term bank deposits are not considered as cash equivalents.

Cash at banks earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods, depending on the immediate cash requirements of the Group, and earn interests at the respective short-term deposit rates. The interest rate of the bank deposits (excluding long-term and short-term bank deposits) as at December 31, 2017 for the Group ranged from 0.87% to 3.28% (2016: 0.86% to 2.10%).

As at December 31, 2017, the Group’s restricted cash comprised of RMB 45,288 (US$7,155) which was used as collateral by the banks for the issuance of bills to suppliers and RMB 9,521 (US$1,504) relates to retention money deposited in a joint signatory account with the buyer of LKNII pending finalization of tax payable for the disposal of LKNII. The Group’s share of joint venture’s restricted cash is disclosed in Note 6.

As at December 31, 2016, the Group’s restricted cash of RMB 36,000 was used as collateral by the banks for the issuance of bills to suppliers.

As of December 31, 2016 and 2017, the Group had RMB 318,565 and RMB 474,384 (US$74,949) respectively, of undrawn committed borrowing facilities in respect of which all conditions precedent had been met. The commitment fees incurred for 2015, 2016 and 2017 were RMB368, RMB 392 and RMB 179 (US$28) respectively.

Issued capital and Preference shares

12 Months Ended

Dec. 31, 2017

Issued capital and Preference shares

24.

Issued capital and Preference shares

31.12.2016

31.12.2017

thousands

Issued capital

Authorized shares

Ordinary share of par value US$0.10 each

100,000

Number of

shares

RMB’000

Ordinary shares issued and fully paid

At January 1, 2016

39,298,340

1,955,720

Issued of shares as dividend payment (Note 25)

1,413,760

103,356

At December 31, 2016 and January 1, 2017

40,712,100

2,059,076

Issued of shares as dividend payment (Note 25)

99,790

12,897

Issued of shares upon exercised of share options (Note 27)

46,400

9,165

At December 31, 2017

40,858,290

2,081,138

US$’000

328,805

31.12.2016

31.12.2017

RMB’000

US$’000

Special share issued and fully paid

One special share issued and fully paid at US$0.10 per share

Non-redeemable convertible cumulative preference shares

Less than RMB 1 (US$1)

On July 13, 2017, based on the elections by shareholders, the dividend of US$0.90 per share for the financial year 2016 was paid in the form of approximately US$34.7 million in cash and 99,790 shares, at the volume weighted average trading price of US$19.0329 per share, with total value equivalent to RMB 12,897 (US$2,038).

On June 29, 2016, based on the elections by shareholders, the dividend of US$0.85 per share for the financial year 2015 was paid in the form of approximately US$17.8 million in cash and 1,413,760 shares, at the volume weighted average trading price of US$11.0227 per share, with total value equivalent to RMB 103,356.

In 2017, the Company issued 46,400 shares pursuant to the exercised of share option granted under the Company’s Equity Incentive Plan.

The holders of ordinary shares are entitled to such dividends as the Board of Directors of the Company may declare from time to time. All ordinary shares are entitled to one vote on a show of hands and carry one vote per share on a poll.

The holder of special share is entitled to elect a majority of directors of the Company. In addition, no shareholders resolution may be passed without the affirmative vote of the special share, including any resolution to amend the Memorandum of Association or Bye-laws of the Company. The special share is not transferable except to HLA, HLC or any of its affiliates. The Bye-Laws of the Company provides that the special share shall cease to carry any rights in the event that HLA and its affiliates cease to own, directly or indirectly, at least 7,290,000 ordinary shares in the capital of the Company.

Preference shares

HLGE issued 197,141,190 non-redeemable convertible cumulative preference shares (“NCCPS”) at an issue price of S$0.02 each on July 4, 2006, expiring on the 10^th anniversary of the NCCPS issue date, and 197,011,794 NCCPS have been converted into ordinary shares in the capital of HLGE.

The NCCPS shall, subject to the terms and conditions thereof, carry the right to receive, out of the profits of HLGE available for payment of dividends, a fixed cumulative preferential dividend of 10% per annum of the issue price for each NCCPS (the “Preference Dividend”).

Other than the Preference Dividend, the NCCPS holders shall have no further right to participate in the profits or assets of HLGE.

NCCPS holders shall have no voting rights except under certain circumstances referred to in the Singapore Companies Act, Chapter 50 set out in the terms of the NCCPS.

The NCCPS are not listed and quoted on the Official List of the Singapore Exchange. However, the holders of the NCCPS are able to exercise their rights to convert the NCCPS into new ordinary shares at the adjusted NCCPS conversion ratio of one (1) new ordinary share for every ten (10) NCCPS following the completion of the HLGE’s share consolidation exercise in May 2015, subject to the terms and conditions of the NCCPS. Such new ordinary shares will be listed and quoted on the Official List of the Singapore Exchange when issued.

In accordance with the terms and conditions of the NCCPS, the rights of NCCPS holders to convert all or any of their NCCPS into fully paid ordinary shares in the capital of the HLGE has lapsed on July 4, 2016 (being the date of expiry of the NCCPS Conversion Period). NCCPS are perpetual securities and there is no mandatory conversion of the NCCPS upon the expiry of the NCCPS Conversion Period.

In 2016, HLGE issued a total of 2,899 new ordinary shares, pursuant to the conversion of 28,998 NCCPS, at an issue price of S$0.02 for each NCCPS. The NCCPS conversion ratio is one (1) new ordinary share for every ten (10) NCCPS converted.

Dividends declared and paid

12 Months Ended

Dec. 31, 2017

Dividends declared and paid

25.

Dividends declared and paid


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

Declared and paid during the year
Dividends on ordinary shares:
Final dividend paid in 2017: US$0.90 per share (2016: US$0.85 per share)		221,549		248,844		39,316

Dividend paid in cash		118,193		235,947		37,278
Dividend paid in shares (Note 24)		103,356		12,897		2,038

		221,549		248,844		39,316

Reserves

12 Months Ended

Dec. 31, 2017

Reserves

26.

Reserves


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

Statutory reserve
Statutory general reserve ⁽ⁱⁱ⁾
At January 1		272,515		273,438		43,202
Transfer from retained earnings		923		1,882		297

At December 31		273,438		275,320		43,499

General surplus reserve ⁽ⁱⁱⁱ⁾
At January 1 and December 31		25,706		25,706		4,061

Total		299,144		301,026		47,560

Note:

⁽ⁱ⁾

In accordance with the relevant regulations in the PRC, Yuchai and its subsidiaries are required to provide certain statutory reserves which are designated for specific purposes based on the net income reported in the PRC General Accepted Accounting Principles financial statements. The reserves are not distributable in the form of cash dividends.

⁽ⁱⁱ⁾

In accordance with the relevant regulations in the PRC, a 10% appropriation to the statutory general reserve based on the net income reported in the PRC financial statements is required until the balance reaches 50% of the authorized share capital of Yuchai and its subsidiaries. Statutory general reserve can be used to make good previous years’ losses, if any, and may be converted into share capital by the issue of new shares to shareholders in proportion to their existing shareholdings, or by increasing the par value of the shares currently held by them, provided that the reserve balance after such issue is not less than 25% of the authorized share capital.

⁽ⁱⁱⁱ⁾

General surplus reserve is appropriated in accordance with Yuchai’s Articles and resolution of the board of directors. General surplus reserve may be used to offset accumulated losses or increase the registered capital.


	31.12.2016			31.12.2017			31.12.2017
	RMB’000			RMB’000			US$’000

Other components of equity
Foreign currency translation reserve ⁽ⁱ⁾		(43,959	)		(82,939	)		(13,104	)
Performance shares reserve ⁽ⁱⁱ⁾		20,839			19,758			3,122
Reserve of asset classified as held for sale		22,720			—			—
(Premium paid for)/discount on acquisition of non- controlling interests		(11,160	)		(11,541	)		(1,823	)

Total		(11,560	)		(74,722	)		(11,805	)

⁽ⁱ⁾

Foreign currency translation reserve

The foreign currency translation reserve represents exchange differences arising from the translation of the financial statements of foreign operations whose functional currencies are different from that of the Group’s presentation currency.

⁽ⁱⁱ⁾

Performance shares reserve

The performance shares reserve comprises the cumulative value of employee services received for the issue of share options. The amount in the reserve is retained when the option is expired.

Share-based payment

12 Months Ended

Dec. 31, 2017

Share-based payment

27.

Share-based payment

The Company’s Equity Incentive Plan (“Equity Plan”) was approved by the shareholders at the Annual General Meeting of the Company held on July 4, 2014 for duration of 10 years (from July 29, 2014 to July 28, 2024).

All options granted under the Equity Plan are subject to a vesting schedule as follows:

(1)

one year after the date of grant for up to 33% of the shares over which the options are exercisable;

(2)

two years after the date of grant for up to 66% (including (1) above) of the shares over which the options are exercisable; and

(3)

three years after the date of grant for up to 100% (including (1) and (2) above) of the shares over which the options are exercisable.

The expense recognized for employee services received during the year is shown in the following table:


	31.12.2015		31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		RMB’000		US$’000

Expense arising from equity-settled share-based payment transactions		10,275		5,301		1,592		252

Total expense arising from share-based payment transactions		10,275		5,301		1,592		252

Movements during the year

The following table illustrates the number and weighted average exercise prices (“WAEP”) of, and movements in share options during the year:

Number of

share options

WAEP

Number of

share options

WAEP

2016

2017

Outstanding at January 1

570,000

US$

21.11 dollar

530,000

US$

21.11 dollar

Exercised during the year

—

(46,400

)

US$

21.11 dollar

Cancelled during the year

(40,000

)

US$

21.11 dollar

(13,600

)

US$

21.11 dollar

Outstanding at December 31

530,000

US$

21.11 dollar

470,000

US$

21.11 dollar

Exercisable at December 31

353,333

US$

21.11 dollar

470,000

US$

21.11 dollar

The fair value of services received in return for share options granted are measured by reference to the fair value of share options granted. The estimate of the fair value of the services received is measured based on the Black-Scholes model. The expected life used in the model has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.

Fair value of share options and assumptions


Date of grant of options		On July 29, 2014

Fair value at measurement date (US$)		5.70 dollar – 6.74 dollar

Share price (US$)		21.11 dollar
Exercise price (US$)		21.11 dollar
Expected volatility (%)		47.4
Expected option life (years)		3.5 – 5.5
Expected dividends (%)		5.81
Risk-free interest rate (%)		1.4 – 2.0

The exercise price for options outstanding as at December 31, 2017 was US$21.11 dollar (2016: US$21.11 dollar).

The weighted average remaining contractual life for the share options outstanding as at December 31, 2017 was 6.6 (2016: 7.6) years.

The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may not necessarily be the actual outcome.

There are no market conditions associated with the share options granted. Service conditions and non-market performance conditions are not taken into account in the measurement of the fair value of the service to be received at the grant date.

Trade and other payables

12 Months Ended

Dec. 31, 2017

Trade and other payables

28.

Trade and other payables


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

Trade and bills payables ⁽ⁱ⁾		4,672,750		5,177,123		817,948
Other payables		362,856		366,604		57,921
Accrued expenses		841,942		843,447		133,258
Accrued staff costs		406,261		622,893		98,413
Dividend payable		37,851		39,786		6,286
Associates and joint ventures		91,439		102,111		16,133
Other related parties		120,619		125,411		19,814

Financial liabilities at amortized cost (Note 36)		6,533,718		7,277,375		1,149,773
Other tax payable		42,750		51,387		8,119

Trade and other payables with liquidity risk (Note 33)		6,576,468		7,328,762		1,157,892
Deferred grants (Note 17)		21,939		22,270		3,519
Deferred income ⁽ⁱⁱ⁾		170,000		—		—
Advance from customers		76,636		117,117		18,503

Total trade and other payables (current)		6,845,043		7,468,149		1,179,914

⁽ⁱ⁾	As of December 31, 2017, the trade and bills payables include bills payable to joint ventures, associates and other related parties amounted to RMB 63,600 (US$10,048) (2016: RMB 50), RMB 8,560 (US$1,352) (2016: RMB 12,210) and RMB 114,749 (US$18,129) (2016: RMB 133,708) respectively.

⁽ⁱⁱ⁾

This relates to the Group’s transfer of technology know-how to a joint venture. Upon completion of engineering design services for the heavy-duty engine platform for the joint venture in 2017, revenue has been recognized in the consolidated statement of profit or loss under the line item “other operating income”.


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000
Provision for bonus ⁽ⁱ⁾		133,928		148,287		23,428
Deferred income ⁽ⁱⁱ⁾		2,844		8,060		1,274

Other payables (non-current) (Note 33, Note 36)		136,772		156,347		24,702

⁽ⁱ⁾	The provision is not expected to be settled within next 12 months.

⁽ⁱⁱ⁾	This relates to progress payments received for sale of lands and will be credited to profit and loss upon completion of the sale.

Terms and conditions of the above financial liabilities:

•

Trade payables are non-interest bearing and are normally settled on 60-day terms.

•

Other payables (current) are non-interest bearing and have an average term of three months.

•

For terms and conditions relating to related parties, refer to Note 30.

Provision for product warranty

12 Months Ended

Dec. 31, 2017

Provision for product warranty

29.

Provision for product warranty


	31.12.2016			31.12.2017			31.12.2017
	RMB’000			RMB’000			US$’000

At January 1		233,577			238,850			37,737
Provision made		350,803			412,514			65,174
Provision utilized		(345,530	)		(361,058	)		(57,045	)

At December 31		238,850			290,306			45,866

Related party disclosures

12 Months Ended

Dec. 31, 2017

Related party disclosures

30.

Related party disclosures

The ultimate parent

As of December 31, 2017, the controlling shareholder of the Company, HLA, indirectly owned 16,360,845, or 40.0% (2016: 16,360,845 or 40.2%), of the ordinary shares in the capital of the Company, as well as a special share that entitles it to elect a majority of directors of the Company. HLA controls the Company through its wholly-owned subsidiary, HLC, and through HLT, a wholly-owned subsidiary of HLC. HLT owns approximately 23.3% (2016: 23.4%) of the ordinary shares in the capital of the Company and is, and has since August 2002 been, the registered holder of the special share. HLA also owns, through another wholly-owned subsidiary, Well Summit Investments Limited, approximately 16.7% (2016: 16.8%) of the ordinary shares in the capital of the Company. HLA is a member of the Hong Leong Investment Holdings Pte. Ltd., or Hong Leong Investment group of companies. Prior to August 2002, the Company was controlled by Diesel Machinery (BVI) Limited, which, until its dissolution, was a holding company controlled by HLC and was the prior owner of the special share. Through HLT’s stock ownership and the rights accorded to the special share under Bye-Laws of the Company and various agreements among shareholders, HLA is able to effectively approve and effect most corporate transactions.

There were transactions other than dividends paid, between the Group and HLA of RMB 32, RMB 34 and RMB 34 (US$5) during the financial years ended December 31, 2015, 2016 and 2017 respectively. The transaction relates to consultancy fees charged by HLA.

Entity with significant influence over the Group

As of December 31, 2017, the Yulin City Government through Coomber Investment Ltd. owned 17.2% (2016: 17.3%) of the ordinary shares in the capital of the Company.

The following provides the significant transactions that have been entered into with related parties for the relevant financial year.


	31.12.2015		31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		RMB’000		US$’000

Sales
- Materials/engines to State Holding Company, its subsidiaries and affiliates		516,679		447,509		455,061		71,896
- Hospitality and restaurant service charged to State Holding Company, its subsidiaries and affiliates		3,247		4,761		4,454		704
- Diesel engines and materials to associates and joint ventures		156,444		219,724		412,591		65,186
Purchase
- Purchase of materials and supplies from subsidiaries and affiliates of State Holding Company		1,181,852		1,028,358		1,221,421		192,976
- Materials and supplies/engines from associates and joint ventures		90,354		308,610		914,211		144,439
Others
- Delivery expense charged by subsidiaries of State Holding Company		164,690		143,077		192,399		30,398
- Storage, distribution and handling expenses charged by a subsidiary of State Holding Company		30,462		50,181		18,007		2,845
- Property management service charged by an associate/ a subsidiary of SHC⁽ⁱⁱ⁾		23,359		20,976		22,212		3,509
- Leasing expenses charged by State Holding Company		12,951		4,715		8,676		1,371
- Consultancy fees charged by State Holding Company		—		10,026		12,264		1,938
- General and administrative expenses charged by State Holding Company		3,141		4,283		7,951		1,256
- General and administrative expenses charged by affiliates of HLA		6,271		6,887		6,913		1,092
- Charged by joint ventures for service provided		—		2,121		2,543		402
- Charged to subsidiaries of State Holding Company for service provided		—		8,873		21,274		3,361
- Charged to a joint venture for service provided		—		—		14,241		2,250
- Rental income charged to State Holding Company and its subsidiaries		619		5,454		4,483		708
- Purchases of vehicles/machineries from State Holding Company and its subsidiary		1,963		—		52,443		8,286
- Purchases of additional shareholding in a subsidiary from State Holding Company ⁽ⁱ⁾		4,170		—		1,335		211
- Disposal of shareholding in an associate to State Holding Company ⁽ⁱⁱ⁾		—		—		1,833		290
- Sales of an intangible asset to a joint venture		—		—		220,000		34,758

Note:

⁽ⁱ⁾

In October 2015, Yuchai acquired 2.86% of equity interest in YEMC from State Holding Company with a purchase consideration of RMB 4.2 million.

In June 2017, GYAMC acquired 25% of equity interest in Crankshaft from State Holding Company with a purchase consideration of RMB 1.3 million (US$0.2 million).

⁽ⁱⁱ⁾

In August 2017, YEMC disposed its 30% equity interest in Property Management to State Holding Company for a consideration of RMB 1.9 million (US$0.3 million).

In addition to the above, Yuchai also entered into transactions with other PRC Government owned enterprises. Management considers that these transactions were entered into in the normal course of business and expects that these transactions will continue on normal commercial terms. Balances with other PRC entities are excluded from this caption.

Terms and conditions of transactions with related parties

The transactions with related parties are made at terms agreed between the parties. Outstanding balances at the year-end are unsecured and interest free.

Compensation of key management personnel of the Group


	31.12.2015		31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		RMB’000		US$’000

Short-term employee benefits		27,331		31,975		40,831		6,451
Contribution to defined contribution plans		305		415		385		61
Cost of share-based payment		8,477		4,387		1,294		204

		36,113		36,777		42,510		6,716

The non-executive directors do not receive pension entitlements from the Group.

Commitments and contingencies

12 Months Ended

Dec. 31, 2017

Commitments and contingencies

31.

Commitments and contingencies

Operating lease commitments - Group as lessee

The Group has entered into commercial leases on a land, and certain motor vehicles, office space and items of machinery. These leases have an average life of between one and five years with no renewal option included in the contracts. There are no restrictions placed upon the Group by entering into these leases.

Future minimum rentals payable under non-cancellable operating leases as at December 31 are as follows:


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

Within one year
- With related parties		800		5,578		881
- With third parties		11,338		14,058		2,221
After one year but not more than five years
- With related parties		1,399		1,724		272
- With third parties		12,537		14,003		2,212
More than five years
- With third parties		114		—		—

		26,188		35,363		5,586

The minimum lease payments recognized as an expense for the financial year ended December 31, 2015, 2016 and 2017 amounted to RMB 60,201, RMB 54,617 and RMB 54,671 (US$8,638).

Operating lease commitments - Group as lessor

The Group leased out some of its assets, including surplus office and manufacturing buildings. All leases include a clause to enable upward revision of the rental charge on an annual basis according to prevailing market conditions.

Future minimum rentals receivable under non-cancellable operating leases as at December 31 are as follows:


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

Within one year
- With related parties		102		184		29
- With third parties		1,624		1,438		227
After one year but not more than five years
- With related parties		—		268		42
- With third parties		1,855		2,491		394
More than five years
- With third parties		268		1,310		207

		3,849		5,691		899

Finance lease commitments

The Group has finance lease for office equipment and motor vehicles. The lease has term of renewal but no purchase options and escalation clause. Renewal is at the option of the Group.

Future minimum lease payments under finance lease together with the present value of the net minimum lease payments are as follows:


	31.12.2016					31.12.2017
	Minimum lease payments			Present value of payments		Minimum lease payments				Present value of payments
	RMB’000			RMB’000		RMB’000		US$’000		RMB’000		US$’000

Not later than one year		43			38		33		5		33		5
Later than one year but not later than five years		70			70		46		7		46		7

Total minimum lease payments		113			108		79		12		79		12
Less: Amount representing finance charges		(5	)		*		*		*		*		*

Present value of minimum lease payments		108			108		79		12		79		12

Less than RMB 1 (US$1)

Capital commitments

As of December 31, 2016 and 2017, Yuchai had capital expenditure (mainly in respect of property, plant and equipment) contracted for but not paid amounting to RMB 427,089 and RMB 409,487 (US$64,696) respectively. The Group’s share of joint venture’s capital commitment is disclosed in Note 6.

Investment commitments

As of December 31, 2016 and 2017, the Group has commitment of RMB 75,000 and RMB Nil (US$ Nil) relating to the Group’s interest in joint venture, respectively.

Letter of credits

As of December 31, 2016 and 2017, Yuchai had issued irrevocable letter of credits of RMB 29,729 and RMB 1,905 (US$301), respectively.

Product liability

The General Principles of the Civil Law of the People’s Republic of China imposes that manufacturers and sellers are liable for loss and injury caused by defective products. Yuchai and its subsidiaries do not carry product liability insurance. Yuchai and its subsidiaries have not had any significant product liability claims brought against them.

Environmental liability

China adopted its Environmental Protection Law in 1989, and the State Council and the Ministry of Environmental Protection promulgate regulations as required from time to time. The Environmental Protection Law addresses issues relating to environmental quality, waste disposal and emissions, including air, water and noise emissions. Environmental regulations have not had a material impact on Yuchai’s results of operations. Yuchai delivers, on a regular basis, burned sand and certain other waste products to a waste disposal site approved by the local government and makes payments in respect thereof. Yuchai expects that environmental standards and their enforcement in China will, as in many other countries, become more stringent over time, especially as technical advances make achievement of higher standards more feasible. Yuchai has built an air filter system to reduce the level of dust and fumes resulting from its production of diesel engines.

Yuchai is subject to Chinese national and local environmental protection regulations which currently impose fees for the discharge of waste substances, require the payment of fines for pollution, and provide for the closure by the Chinese government of any facility that fails to comply with orders requiring Yuchai to cease or improve upon certain activities causing environmental damage. Due to the nature of its business, Yuchai produces certain amounts of waste water, gas, and solid waste materials during the course of its production. Yuchai believes its environmental protection facilities and systems are adequate for it to comply with the existing national, provincial and local environmental protection regulations. However, Chinese national, provincial or local authorities may impose additional or more stringent regulations which would require additional expenditure on environmental matters or changes in Yuchai’s processes or systems.

Segment information

12 Months Ended

Dec. 31, 2017

Segment information

32.

Segment information

For management purposes, the Group is organized into business units based on their products and services, and has two reportable operating segments as follows:

•

Yuchai primarily conducts manufacturing and sale of diesel engines which are mainly distributed in the PRC market.

•

HLGE is engaged in hospitality and property development activities conducted mainly in the PRC and Malaysia. HLGE is listed on the Main Board of the Singapore Exchange.

Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment.


Year ended December 31, 2015	Yuchai			HLGE			Corporate			Eliminations			Consolidated financial statements
	RMB’000			RMB’000			RMB’000			RMB’000			RMB’000

Revenue
Total external revenue		13,671,931			61,506			—			—			13,733,437


Results
Interest income		35,557			1,415			10,003			(5,661	)		41,314
Interest expense		(110,618	)		(7,595	)		(435	)		5,661			(112,987	)
Impairment of property, plant and equipment		(2,873	)		—			—			—			(2,873	)
Impairment of technology development cost		(26,700	)		—			—			—			(26,700	)
Staff severance cost		(8,385	)		—			—			—			(8,385	)
Depreciation and amortization		(458,759	)		(10,458	)		(218	)		—			(469,435	)
Share of (loss)/profit of associates and joint ventures, net of tax		(10,230	)		7,539			—			—			(2,691	)
Income tax expense		(161,731	)		(2,491	)		(12,596	)⁽¹⁾		—			(176,818	)

Segment profit after income tax		583,115			6,473			(80,268	)		—			509,320


Year ended December 31, 2016	Yuchai			HLGE			Corporate			Eliminations			Consolidated financial statements
	RMB’000			RMB’000			RMB’000			RMB’000			RMB’000

Revenue
Total external revenue		13,598,487			66,353			—			—			13,664,840


Results
Interest income		51,235			1,919			10,080			(6,251	)		56,983
Interest expense		(73,028	)		(7,706	)		(648	)		6,251			(75,131	)
Impairment of property, plant and equipment		(3,297	)		—			—			—			(3,297	)
Staff severance costs		(12,864	)		—			—			—			(12,864	)
Depreciation and amortization		(467,177	)		(10,744	)		(239	)		—			(478,160	)
Share of profit/(loss) of associates and joint ventures, net of tax		112			(3,724	)		—			—			(3,612	)
Income tax expense		(141,272	)		(2,281	)		(16,717	)⁽¹⁾		—			(160,270	)
Segment profit after income tax		765,039			(4,548	)		(36,883	)		—			723,608

Total assets		17,537,583			449,994			2,111,248			(1,502,319	)		18,596,506

Total liabilities		(8,419,018	)		(369,124	)		(151,472	)		328,920			(8,610,694	)

Other disclosures
Investment in joint ventures		173,781			2,570			—			—			176,351
Capital expenditure		282,284			2,623			86			—			284,993


Year ended December 31, 2017	Yuchai			HLGE			Corporate			Eliminations			Consolidated financial statements			Consolidated financial statements
	RMB’000			RMB’000			RMB’000			RMB’000			RMB’000			US$’000

Revenue
Total external revenue		16,165,245			57,197			—			—			16,222,442			2,563,030


Results
Interest income		94,760			1,803			11,833			(2,975	)		105,421			16,656
Interest expense		(94,794	)		(3,983	)		(270	)		2,975			(96,072	)		(15,179	)
Gain on disposal of intangible assets		115,235			—			—			—			115,235			18,206
Gain on disposal of subsidiaries		—			216,115			—			—			216,115			34,145
Gain on disposal of joint venture		—			107,976			—			—			107,976			17,059
Impairment of property, plant and equipment		(20,845	)		—			—			—			(20,845	)		(3,293	)
Impairment of technology development cost		(40,000	)		—			—			—			(40,000	)		(6,320	)
Staff severance cost		(107,732	)		—			—			—			(107,732	)		(17,021	)
Depreciation and amortization		(433,921	)		(9,990	)		(270	)		—			(444,181	)		(70,177	)
Share of profit of associates and joint venture		9,255			799			—			—			10,054			1,589
Income tax expense		(190,573	)		(461	)		(29,133	)⁽¹⁾		—			(220,167	)		(34,785	)

Segment profit after tax		1,089,233			322,481			(6,644	)		—			1,405,070			221,991

Total assets		19,623,882			451,096			2,444,012			(1,503,931	)		21,015,059			3,320,229

Total liabilities		(9,840,265	)		(66,920	)		(128,591	)⁽²⁾		(7	)		(10,035,783	)		(1,585,582	)

Other disclosures
Investment in joint ventures		193,476			2,626			—			—			196,102			30,983
Capital expenditure		259,068			975			1,390			—			261,433			41,305

Note:

⁽¹⁾

This relates mainly to the withholding tax provisions for dividends from Yuchai.

⁽²⁾

Included here are mainly the cumulative withholding tax provision for dividends that are expected to be paid from income earned after December 31, 2007 by Yuchai.

Geographic information

Revenue from external customers:


	31.12.2015		31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		RMB’000		US$’000

People’s Republic of China		13,630,979		13,508,721		16,116,356		2,546,269
Other countries		102,458		156,119		106,086		16,761

		13,733,437		13,664,840		16,222,442		2,563,030

The revenue information above is based on the location of the customer.

Revenue from one customer group amounted to RMB 4,839,617 (US$764,625) (2016: RMB 3,580,856; 2015: RMB 2,900,332), arising from sales by Yuchai segment.

Non-current assets


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

People’s Republic of China		4,893,338		4,524,988		714,916
Other countries		95,430		94,779		14,974

		4,988,768		4,619,767		729,890

Non-current assets for this purpose consist of property, plant and equipment, prepaid operating leases, investment in joint ventures and associates, investment property, intangible asset and goodwill.

Financial risk management objectives and policies

12 Months Ended

Dec. 31, 2017

Financial risk management objectives and policies

33.

Financial risk management objectives and policies

The Group’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Group’s operations. The Group has trade and other receivables, and cash and bank deposits that derive directly from its operations. The Group also holds held for trading investment and enters into derivative transactions.

The Group is exposed to market risk, credit risk and liquidity risk. The Group’s senior management oversees the management of these risks. There has been no change to the Group’s exposure to these financial risks or the manner in which it manages and measures the risks.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprise three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk. Financial instruments affected by market risk include loans and borrowings, deposits, held for trading investment and derivative financial instrument.

The sensitivity analyses in the following sections relate to the position as at December 31, 2016 and 2017.

The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and the proportion of financial instruments in foreign currencies are all constant at December 31, 2017.

The analyses exclude the impact of movements in market variables on provisions and on the non-financial assets and liabilities of foreign operations.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s interest-bearing bank deposits and loans and borrowings from banks and financial institutions. The interest-bearing loans and borrowings of the Group are disclosed in Note 16(b). As certain interest rates are based on interbank offer rates, the Group is exposed to cash flow interest rate risk. This risk is not hedged. Interest-bearing bank deposits are short to medium-term in nature but given the significant cash and bank balances held by the Group, any variation in the interest rates may have a material impact on the results of the Group.

The Group manages its interest rate risk by having a mixture of fixed and variable rates for its deposits and borrowings.

Interest rate sensitivity

The sensitivity analyses below have been determined based on the exposure to interest rates for bank deposits and interest-bearing financial liabilities at the end of the reporting period and the stipulated change taking place at the beginning of the year and held constant throughout the reporting period in the case of instruments that have floating rates. A 50 basis points increase or decrease is used and represents management’s assessment of the possible change in interest rates.

If interest rate had been 50 (2016: 50) basis points higher or lower and all other variables were held constant, the profit before tax for the year ended December 31, 2017 of the Group would increase/decrease by RMB 22,015 (US$3,478) (2016: increase/decrease by RMB 15,712).

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Group’s exposure to the risk of changes in foreign exchange rates relates primarily to the Group’s sales, purchases and financial liabilities that are denominated in currencies other than the respective functional currencies of entities within the Group. The Group also holds cash and bank balances and other investments denominated in foreign currencies. The currencies giving rise to this risk are primarily the Singapore Dollar, Renminbi, US Dollar and Euro.

Foreign currency translation exposure is managed by incurring debt in the operating currency so that where possible operating cash flows can be primarily used to repay obligations in the local currency. This also has the effect of minimizing the exchange differences recorded against income, as the exchange differences on the net investment are recorded directly against equity.

The Group’s exposures to foreign currency are as follows:


	31.12.2016
	Singapore Dollar			Euro			US Dollar			Renminbi			Others
	RMB’000			RMB’000			RMB’000			RMB’000			RMB’000

Held for trading investment		12,181			—			—			—			—
Trade and other receivables		957			9,232			15,032			31,679			982
Cash and bank balances		117,763			3,841			7,247			—			—
Financial liabilities		(33,686	)		—			(104,055	)		—			—
Trade and other payables		(12,991	)		(10,763	)		(5,873	)		(1,410	)		—

Net assets/(liabilities)		84,224			2,310			(87,649	)		30,269			982


	31.12.2017
	Singapore Dollar			Euro			US Dollar			Renminbi			Others
	RMB’000			RMB’000			RMB’000			RMB’000			RMB’000

Held for trading investment		24,714			—			—			—			—
Trade and other receivables		725			—			34,727			469			—
Cash and bank balances		418,875			1,486			16,068			—			498
Financial liabilities		(14,715	)		—			—			—			—
Trade and other payables		(13,748	)		(10,857	)		(5,574	)		(35,505	)		(24	)

Net assets/(liabilities)		415,851			(9,371	)		45,221			(35,036	)		474

US$’000		65,701			(1,481	)		7,145			(5,535	)		75

Foreign currency risk sensitivity

A 10% strengthening of the following major currencies against the functional currency of each of the Group’s entities at the reporting date would increase/(decrease) profit before tax by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant.


	Profit before tax
	31.12.2016			31.12.2017			31.12.2017
	RMB’000			RMB’000			US$’000
Singapore Dollar		8,422			41,585			6,570
Euro		231			(937	)		(148	)
US Dollar		(8,765	)		4,522			714
Renminbi		3,027			(3,504	)		(554	)

Equity price risk

The Group has investment in TCL which is quoted.

Equity price risk sensitivity

A 10% increase/(decrease) in the underlying prices at the reporting date would increase/(decrease) Group’s profit before tax by the following amount:

31.12.2016

31.12.2017

RMB’000

US$’000

Statement of profit or loss

1,218

2,471

390

Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

Trade receivables

Customer credit risk is managed by each business unit subject to the Group’s established policy, procedures and control relating to customer credit risk management. Credit limits are established for all customers based on internal rating criteria.

Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed for all customers requiring credit over a certain amount.

The Group establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables. The main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component established for groups of similar assets in respect of losses that have been incurred but not yet identified. The collective loss allowance is determined based on historical data of payment statistic for similar financial assets.

The allowance account in respect of trade and other receivables is used to record impairment losses unless the Group is satisfied that no recovery of the amount owing is possible. At that point, the financial asset is considered irrecoverable and the amount charged to the allowance account is written off against the carrying amount of the impaired financial asset.

At December 31, 2017, the Group had top 20 customers (2016: top 20 customers) that owed the Group more than RMB 57,220 (US$9,040) (2016: RMB 151,033) and accounted for approximately 22.4% (2016: 51.1%) of trade receivables (excluding bills receivables) owing respectively. These customers are located in the PRC. There were 44 customers (2016: 38 customers) with balances greater than RMB 1,000 (US$158) accounting for over 73.8% (2016: 79.6%) of total trade receivable (excluding bills receivables). The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets mentioned in Note 20 and Note 21. The Group’s share of trade receivables of a joint venture which was used as collateral as security is disclosed in Note 6.

Cash and fixed deposits are placed with banks and financial institutions which are regulated.

Liquidity risk

The Group monitors its liquidity risk and maintains a level of cash and cash equivalents deemed adequate by management to finance the Group’s operations and to mitigate the effects of fluctuations in cash flows, and having adequate amounts of committed credit facilities.

The table below summarizes the maturity profile of the Group’s financial assets and liabilities based on contractual undiscounted payments.


	One year or less		Two to five years		More than five years		Total
As at December 31, 2016	RMB’000		RMB’000		RMB’000		RMB’000

Financial assets
Trade and bills receivables		7,111,890		—		—		7,111,890
Other receivables, excluding tax recoverable		246,687		1,588		—		248,275
Cash and bank balances		4,052,957		—		—		4,052,957
Held for trading investment and derivative not designated as hedges – foreign exchange forward contract		12,181		—		—		12,181

		11,423,715		1,588		—		11,425,303


Financial liabilities
Derivative not designated as hedges – foreign exchange forward contract		140		—		—		140
Interest-bearing loans and borrowings		909,824		18,409		—		928,233
Trade and other payables (Note 28)		6,576,468		136,772		—		6,713,240
Other liabilities		43		70		—		113

		7,486,475		155,251		—		7,641,726


	One year or less		Two to five years		More than five years		Total		Total
As at December 31, 2017	RMB’000		RMB’000		RMB’000		RMB’000		US$’000

Financial assets
Trade and bills receivables		7,075,319		—		—		7,075,319		1,117,850
Other receivables, excluding tax recoverable		132,675		620		—		133,295		21,060
Cash and bank balances		6,029,207		—		—		6,029,207		952,572
Held for trading investment		24,714		—		—		24,714		3,905

		13,261,915		620		—		13,262,535		2,095,387


Financial liabilities
Interest-bearing loans and borrowings		1,624,539		27,874		—		1,652,413		261,069
Trade and other payables (Note 28)		7,328,762		156,347		—		7,485,109		1,182,594
Other liabilities		33		46		—		79		12

		8,953,334		184,267		—		9,137,601		1,443,675

Capital management

12 Months Ended

Dec. 31, 2017

Capital management

34.

Capital management

The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximizing the return to shareholders through the optimization of the debt and equity balance except where decisions are made to exit businesses or close companies.

The capital structure of the Group consists of debts (which includes the borrowings and trade and other payables, less cash and bank balances) and equity attributable to equity holders of the parent (comprising issued capital and reserves).


	31.12.2016			31.12.2017			31.12.2017
	RMB’000			RMB’000			US$’000

Interest-bearing loans and borrowings (current and non-current) (Note 16(b))		910,406			1,626,341			256,951
Trade and other payables (current and non-current) (Note 28)		6,981,815			7,624,496			1,204,616
Less: Cash and bank balances (Note 23)		(4,052,957	)		(6,029,207	)		(952,572	)

Net debts		3,839,264			3,221,630			508,995
Equity attributable to equity holders of the parent		7,683,834			8,347,562			1,318,855

Total capital and net debts		11,523,098			11,569,192			1,827,850

The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.

No changes were made in the objectives, policies or processes during the years ended December 31, 2016 and 2017.

As disclosed in Note 26, certain subsidiaries of the Group are required by the relevant authorities in the PRC to contribute and maintain a non-distributable statutory reserve fund whose utilization is subject to approval by the relevant authorities in the PRC. This externally imposed capital requirement has been complied with by the subsidiaries of the Group for the financial years ended December 31, 2016 and 2017.

Fair value measurement

12 Months Ended

Dec. 31, 2017

Fair value measurement

35.

Fair value measurement

Quantitative disclosures fair value measurement hierarchy for assets and liabilities as at December 31, 2016:

Fair value measurement using

Date of

valuation

Quoted

prices

active

markets

Significant

observable

inputs

Significant

unobservable

inputs

Total

(Level 1)

(Level 2)

(Level 3)

RMB’000

Assets measured at fair value

Held for trading investment:

Quoted equity shares – TCL (Note 19)

December 31,

2016

12,181

—

Liabilities measured at fair value

Derivative financial liabilities:

Foreign exchange forward contract - USD⁽ⁱ⁾ (Note 16(a))

December 31,

2016

140

—

140

—

Quantitative disclosures fair value measurement hierarchy for assets and liabilities as at December 31, 2017:

Fair value measurement using

Date of

valuation

Quoted

prices

active

markets

Significant

observable

inputs

Significant

unobservable

inputs

Total

(Level 1)

(Level 2)

(Level 3)

RMB’000

Assets measured at fair value

Held for trading investment:

Quoted equity shares – TCL (Note 19)

December 31,

2017

24,714

—

Note:

⁽ⁱ⁾

Forward currency contracts are valued using a valuation technique with market observable inputs. The most frequently applied valuation techniques include forward pricing, using present value calculations. The models incorporate various inputs including the foreign exchange spot and forward rates.

There have been no transfers between Level 1 and Level 2 during 2017 and 2016.

Financial assets and financial liabilities

12 Months Ended

Dec. 31, 2017

Financial assets and financial liabilities

36.

Financial assets and financial liabilities


	Note		Financial assets at fair value through profit or loss		Loans and receivables		Other financial liabilities at amortized cost		Total
			RMB’000		RMB’000		RMB’000		RMB’000

As at December 31, 2016

Financial assets
Held for trading investment		19		12,181		—		—		12,181
Trade and bills receivables		20		—		7,057,256		—		7,057,256
Other receivables		21		—		248,275		—		248,275
Cash and bank balances		23		—		4,052,957		—		4,052,957

				12,181		11,358,488		—		11,370,669


Financial liabilities
Trade and other payables		28		—		—		6,670,490		6,670,490
Loans and borrowings		16(b)		—		—		910,406		910,406
Other liabilities		16(a)		—		—		248		248

				—		—		7,581,144		7,581,144


	Note		Financial assets at fair value through profit or loss		Loans and receivables		Other financial liabilities at amortized cost		Total		Total
			RMB’000		RMB’000		RMB’000		RMB’000		US$’000

As at December 31, 2017

Financial assets
Held for trading investment		19		24,714		—		—		24,714		3,905
Trade and bills receivables		20		—		7,031,544		—		7,031,544		1,110,934
Other receivables		21		—		133,295		—		133,295		21,060
Cash and bank balances		23		—		6,029,207		—		6,029,207		952,572

				24,714		13,194,046		—		13,218,760		2,088,471


Financial liabilities
Trade and other payables		28		—		—		7,433,722		7,433,722		1,174,475
Loans and borrowings		16(b)		—		—		1,626,341		1,626,341		256,951
Other liabilities		16(a)		—		—		79		79		12

				—		—		9,060,142		9,060,142		1,431,438

Held for trading investment relates to the Group’s investment in TCL, which is a company listed on the main board of the Singapore Exchange and is involved in the manufacture, assembly and distribution of high-end consumer electronic products and home entertainment products in the PRC. Fair values of the quoted equity shares are determined by reference to published price quotations in an active market.

Financial assets/liabilities through profit or loss reflect the positive/negative change in fair value of the foreign exchange forward contract that is not designated in hedge relationships, but are, nevertheless, intended to reduce the level of foreign currency risk.

Changes in liabilities arising from financing activities


	January 1, 2016		Cash flows			Foreign exchange movement			Translation reserve		Others			December, 31, 2016
	RMB’000		RMB’000			RMB’000			RMB’000		RMB’000			RMB’000

As at December 31, 2016

Loans & bonds
- current		2,399,195		(1,535,532	)		(9,608	)		—		40,081			894,136
- non-current		56,509		(2,015	)		(1,242	)		3,099		(40,081	)		16,270
Obligations under finance leases
- current		59		(62	)		(5	)		8		38			38
- non-current		55		—			—			—		15			70

Total liabilities from financing activities		2,455,818		(1,537,609	)		(10,855	)		3,107		53			910,514


	January 1, 2017		Cash flows			Foreign exchange movement		Translation reserve			Others			December, 31, 2017		December, 31, 2017
	RMB’000		RMB’000			RMB’000		RMB’000			RMB’000			RMB’000		US$’000

As at December 31, 2017

Loans & bonds
- current		894,136		705,109			755		—			—			1,600,000		252,789
- non-current		16,270		9,376			879		(184	)		—			26,341		4,162
Obligations under finance leases
- current		38		(38	)		—		9			24			33		5
- non-current		70		—			—		—			(24	)		46		7

Total liabilities from financing activities		910,514		714,447			1,634		(175	)		—			1,626,420		256,963

The ‘Others’ column includes the effect of reclassification of non-current portion of interest-bearing loans and borrowings, including obligations under finance leases due to the passage of time.

Basis of preparation and accounting policies (Policies)

12 Months Ended

Dec. 31, 2017

Business combinations and goodwill

Basis of preparation

2.1

Basis of preparation

Basis of consolidation

2.2

Basis of consolidation

•

Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee)

•

Exposure, or rights, to variable returns from its involvement with the investee

•

The ability to use its power over the investee to affect its returns

•

The contractual arrangement with the other vote holders of the investee

•

Rights arising from other contractual arrangements

•

The Group’s voting rights and potential voting rights

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.

(a)

Business combinations and goodwill

Investments in associates and joint ventures

(b)

Investments in associates and joint ventures

The considerations made in determining significant influence or joint control are similar to those necessary to determine control over subsidiaries.

The Group’s investments in its associates and joint ventures are accounted for using the equity method.

Current versus non-current classification

(c)

Current versus non-current classification

The Group presents assets and liabilities in statement of financial position based on current/non-current classification. An asset is current when it is:

•

Expected to be realized or intended to be sold or consumed in normal operating cycle

•

Held primarily for the purpose of trading

•

Expected to be realized within twelve months after the reporting period, or

•

Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

All other assets are classified as non-current.

A liability is current when:

•

It is expected to be settled in normal operating cycle

•

It is held primarily for the purpose of trading

•

It is due to be settled within twelve months after the reporting period, or

•

There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

The Group classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

Fair value measurement

(d)

Fair value measurement

•

In the principal market for the asset or liability, or

•

In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the Group.

•

Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities

•

Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

•

Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

An analysis of fair values of financial instruments and further details as to how they are measured are provided in Note 35.

Foreign currency translation

(e)

Foreign currency translation

Each entity in the Group determines its own functional currency, and items included in the financial statements of each entity are measured using that functional currency.

Transactions and balances

Transactions in foreign currencies are initially recorded by the Group’s entities at their respective functional currency spot rates at the date the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rate of exchange at the reporting date.

Group companies

Revenue recognition

(f)

Revenue recognition

The specific recognition criteria described below must also be met before revenue is recognized.

Sale of goods

Sale of completed development properties

Rendering of services

Interest income

Rental income

Rental income arising from operating leases is accounted for on a straight-line basis over the lease terms and is included in revenue in the statement of profit or loss due to its operating nature.

Dividends

Dividend income is recognized when the Group’s right to receive the payment is established, which is generally when shareholders approve the dividend.

Government grants

(g)

Government grants

Taxes

(h)

Taxes

Current income tax

Deferred tax

Deferred tax liabilities are recognized for all taxable temporary differences, except:

•

Sales tax

Revenues, expenses and assets are recognized net of the amount of sales tax, except:

•

When receivables and payables are stated with the amount of sales tax included

The net amount of sales tax recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statement of financial position.

Non-current assets held for sale

(i)

Non-current assets held for sale

Property, plant and equipment and intangible assets are not depreciated or amortized once classified as held for sale.

Assets and liabilities classified as held for sale are presented separately as current items in the statement of financial position.

Cash dividend and non-cash distribution to equity holders of the parent

(j)

Cash dividend and non-cash distribution to equity holders of the parent

Non-cash distributions are measured at the fair value of the assets to be distributed with fair value measurement recognized directly in equity.

Upon distribution of non-cash asset, any difference between the carrying amount of the liabilities and the carrying amount of the assets distributed is recognized in the statement of profit or loss.

Property, plant and equipment

(k)

Property, plant and equipment


Freehold buildings	:	50 years
Leasehold land, buildings and improvements	:	Shorter of 15 to 50 years or lease term
Plant and machinery	:	3 to 20 years
Office furniture, fittings and equipment	:	3 to 20 years
Motor and transport vehicles	:	3.5 to 15 years

The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

Investment properties

(l)

Investment properties

Transfers are made to or from investment property only when there is a change in use.

Research and development costs

(m)

Research and development costs

Research costs are expensed as incurred. The Group received research and development subsidies of RMB 26,815 and RMB 60,817 (US$9,609) for the years ended December 31, 2016 and 2017 respectively.

Development expenditures on an individual project are recognized as an intangible asset when the Group can demonstrate:

•

The technical feasibility of completing the intangible asset so that the asset will be available for use or sale

•

Its intention to complete and its ability to use or sell the asset

•

How the asset will generate future economic benefits

•

The availability of resources to complete the asset

•

The ability to measure reliably the expenditure during development

Financial instruments - initial recognition and subsequent measurement

(n)

Financial instruments – initial recognition and subsequent measurement

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets

Initial recognition and measurement

The Group’s financial assets include cash and bank balances, bank deposits, trade and other receivables, quoted financial instruments and derivative financial instruments.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

•

Financial assets at fair value through profit or loss

•

Loans and receivables

•

Held-to-maturity investments

•

Available-for-sale financial assets

Financial assets at fair value through profit or loss

Loans and receivables

Held-to-maturity investments

Available-for-sale (“AFS”) financial assets

The Group did not have AFS financial assets in 2016 and 2017.

Derecognition

•

The rights to receive cash flows from the asset have expired, or

•

Impairment of financial assets

Financial assets carried at amortized cost

AFS financial assets

For AFS financial assets, the Group assesses at each reporting date whether there is objective evidence that an investment or a group of investments is impaired.

Financial liabilities

Initial recognition and measurement

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Group’s financial liabilities include trade and other payables, loans and borrowings, and derivative financial instruments.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Gains or losses on liabilities held for trading are recognized in the statement of profit or loss.

Loans and borrowings

This category generally applies to interest-bearing loans and borrowings. For more information, please refer to Note 16(b).

Derecognition

Offsetting of financial instruments

Derivative financial instruments

(o)

Derivative financial instruments

Initial recognition and subsequent measurement

Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss.

The Group does not apply hedge accounting.

Inventories

(p)

Inventories

Inventories are valued at the lower of cost and net realizable value.

Costs incurred in bringing each product to its present location and condition are accounted for as follows:

•

Raw materials: purchase cost on a weighted average basis

•

Finished goods and work in progress: cost of direct materials and labor and a proportion of manufacturing overheads based on the normal operating capacity, but excluding borrowing costs

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

Impairment of non-financial assets

(q)

Impairment of non-financial assets

Impairment losses, including impairment on inventories, are recognized in the statement of profit or loss in expense categories consistent with the function of the impaired asset.

Goodwill is tested for impairment annually and when circumstances indicate that the carrying value may be impaired.

Cash and cash equivalents

(r)

Cash and cash equivalents

Leases

(s)

Leases

Prepaid operating lease

Group as a lessee

Group as a lessor

Borrowing costs

(t)

Borrowing costs

Provisions

(u)

Provisions

General

Product warranty

Pensions and other post-employment benefits

(v)

Pensions and other post-employment benefits

Share-based payments

(w)

Share-based payments

Equity-settled transactions

The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model.

The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share (further details are given in Note 10).

Development properties

(x)

Development properties

Development properties are properties acquired or being constructed for sale in the ordinary course of business, rather than to be held for the Group’s own use, rental or capital appreciation.

Development properties are held as inventories and are measured at the lower of cost and net realizable value.

Non-refundable commissions paid to sales or marketing agents on the sale of real estate units are expensed when incurred.

Segment reporting

(y)

Segment reporting

Investments in subsidiaries (Tables)

12 Months Ended

Dec. 31, 2017

Details of Significant Subsidiaries of the Group

Details of significant subsidiaries of the Group are as follows:


Name of significant subsidiary	Place of incorporation/ business	Group’s effective equity interest
		31.12.2016		31.12.2017
		%		%

Guangxi Yuchai Machinery Company Limited	People’s Republic of China		76.4		76.4
Guangxi Yuchai Machinery Monopoly Development Co., Ltd	People’s Republic of China		54.9		54.9
Guangxi Yuchai Accessories Manufacturing Company Limited	People’s Republic of China		76.4		76.4
Guangxi Yuchai Equipment Mould Company Limited (formerly known as Guangxi Yulin Yuchai Accessories Manufacturing Company Limited)	People’s Republic of China		76.4		76.4
Guangxi Yulin Hotel Company Limited	People’s Republic of China		76.4		76.4
Jining Yuchai Engine Company Limited ⁽ⁱ⁾	People’s Republic of China		—		76.4
Yuchai Remanufacturing Services (Suzhou) Co., Ltd.	People’s Republic of China		76.4		76.4
HL Global Enterprises Limited	Singapore		50.2		50.2

Note:

⁽ⁱ⁾

In September, 2014, Yuchai disposed its 70% equity interest in Jining Yuchai. Subsequently, through contractual arrangements, Yuchai obtained 100% control in Jining Yuchai.

In November, 2017, Yuchai acquired 100% equity interest in Jining Yuchai, As a result, Jining Yuchai became a wholly owned subsidiary of Yuchai. For details, please refer to Note 1.2.

Subsidiary having Non-controlling Interests that are Material to the Group

The Group has the following subsidiary that has non-controlling interests (“NCI”) that are material to the Group.


	31.12.2015			31.12.2016			31.12.2017
Proportion of equity interest held by NCI
Yuchai		23.6	%		23.6	%		23.6	%


	31.12.2015 RMB’000		31.12.2016 RMB’000		31.12.2017 RMB’000		31.12.2017 US$’000
Accumulated balances of material NCI
Yuchai				2,253,207		2,437,215		385,063

Profit allocated to material NCI
Yuchai		129,088		210,013		290,497		45,896

Dividends paid to material NCI
Yuchai		100,412		83,677		98,941		15,632

Summarized Financial Information Including Goodwill on Acquisition and Consolidation Adjustment But Before Intercompany Eliminations of Subsidiaries with Material Non-controlling Interests


	31.12.2015
	Yuchai RMB’000
Summarized statement of comprehensive income
Revenue		13,671,931

Profit for the year, representing total comprehensive income for the year		547,216

Attributable to NCI		129,088

Summarized statement of cash flows
Operating		1,742,989
Investing		(33,515	)
Financing		(659,691	)

Net increase in cash and cash equivalents		1,049,783


	31.12.2016
	Yuchai
	RMB’000
Summarized statement of financial position
Current assets		12,448,174
Non-current assets, excluding goodwill		4,876,773
Goodwill		212,636
Current liabilities		(7,957,306	)
Non-current liabilities		(461,712	)

Net assets		9,118,565

Total equity		9,118,565

Attributable to NCI		2,253,207

Summarized statement of comprehensive income
Revenue		13,598,487

Profit for the year, representing total comprehensive income for the year		726,379

Attributable to NCI		210,013

Summarized statement of cash flows
Operating		2,329,367
Investing		(293,477	)
Financing		(1,697,173	)

Net increase in cash and cash equivalents		338,717


	31.12.2017
	Yuchai
	RMB’000			US$’000
Summarized statement of financial position
Current assets		14,717,316			2,325,231
Non-current assets, excluding goodwill		4,693,931			741,608
Goodwill		212,636			33,595
Current liabilities		(9,344,836	)		(1,476,417	)
Non-current liabilities		(495,429	)		(78,274	)

Net assets		9,783,618			1,545,743

Total equity		9,783,618			1,545,743

Attributable to NCI		2,437,215			385,063

Summarized statement of comprehensive income
Revenue		16,165,245			2,553,993

Profit for the year, representing total comprehensive income for the year		1,045,330			165,155

Attributable to NCI		290,497			45,896

Summarized statement of cash flows
Operating		1,385,156			218,845
Investing		(165,817	)		(26,198	)
Financing		221,660			35,021

Net increase in cash and cash equivalents		1,440,999			227,668

Assets and Liabilities and Cash Flow Effect of Disposal of Subsidiaries

The value of assets and liabilities of the disposal recorded in the consolidated financial statements and the cash flow effect of the disposals were:


	31.12.2015
	RMB’000
Property, plant and equipment		66,597
Land use rights		17,661
Inventories		6,354
Trade receivables and other receivables		111,651
Deferred taxation		244
Cash and bank balances		18,797

		221,304
Payables and accruals		(17,161	)
Provision for taxation		(996	)

Carrying value of net assets		203,147

Total consideration		189,500
Net asset derecognized		(203,147	)

Loss on disposal of a subsidiary (Note 8.2(b))		(13,647	)

Total consideration		189,500
Cash and bank balances of the subsidiary		(18,797	)

Net cash inflow on disposal of the subsidiary		170,703

The value of assets and liabilities of the disposal recorded in the consolidated financial statements and the cash flow effect of the disposals were:


	31.12.2017			31.12.2017
	RMB’000			US$’000
Property, plant and equipment (Note 11)		104,844			16,565
Trade receivables and other receivables		3,257			514
Cash and bank balances		9,153			1,446

		117,254			18,525
Trade and other payables		(3,737	)		(590	)
Provision for taxation		(44	)		(7	)
Deferred taxation		(588	)		(93	)

Carrying value of net assets		112,885			17,835

Gain on disposal:
Total consideration		395,000			62,407
Less: Cost of disposal		(47,532	)		(7,510	)

Total consideration less cost of disposal		347,468			54,897
Net assets derecognized		(112,885	)		(17,835	)
Realization of foreign translation reserves upon disposal		(18,468	)		(2,917	)

Gain on disposal of the subsidiaries (Note 8.2(b))		216,115			34,145

Total consideration less cost of disposal		347,468			54,897
Add: Transaction cost unpaid		33,287			5,260
Less: Retention sum receivables		(30,000	)		(4,740	)
Cash and bank balances of the subsidiaries		(9,153	)		(1,446	)

Net cash inflow on disposal of the subsidiaries		341,602			53,971

Investment in associates (Tables)

12 Months Ended

Dec. 31, 2017

Summarized Investment in Associates

The Group’s investment in associates are summarized as below:

31.12.2015

31.12.2016

31.12.2017

RMB’000

US$’000

Share of profit/(loss) of associates, net of tax

245

456

(28

)

31.12.2016

31.12.2017

RMB’000

US$’000

Carrying amount of investment

3,836

2,185

345

Details of Associates

Details of the associates are as follows:

Name of company

Principal activities

Place of

incorporation/

business

Group’s effective

equity interest

31.12.2016

31.12.2017

Held by subsidiaries

Sinjori Sdn. Bhd.

Property investment and development

Malaysia

14.0

Guangxi Yuchai Quan Xing Machinery Co., Ltd.

Manufacture spare part and sales of auto spare part, diesel engine & spare part, metallic materials, generator & spare part, chemical products (exclude dangerous goods), lubricating oil

People’s Republic of
China

15.3

Guangxi Yulin Yuchai Property Management Co., Ltd. (“Property Management”) ⁽ⁱ⁾

Property management

People’s Republic of
China

22.9

—

Note:

⁽ⁱ⁾

Investment in joint ventures (Tables)

12 Months Ended

Dec. 31, 2017

Share of Results of Joint Ventures and Carrying Amount of Investment to Joint Ventures


	31.12.2015			31.12.2016			31.12.2017			31.12.2017
	RMB’000			RMB’000			RMB’000			US$’000
Share of (loss)/profit of joint ventures, net of tax:
Y & C Engine Co., Ltd.		(8,978	)		2,039			17,755			2,805
Copthorne Hotel Qingdao Co., Ltd. ⁽ⁱ⁾		6,941			(4,465	)		—			—
MTU Yuchai Power Co., Ltd.		—			—			(8,487	)		(1,341	)
Other joint ventures		(899	)		(1,642	)		814			129

		(2,936	)		(4,068	)		10,082			1,593


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000
Carrying amount of investments:
Y & C Engine Co., Ltd.		169,064		122,235		19,312
MTU Yuchai Power Co., Ltd.		—		66,513		10,509
Other joint ventures		7,287		7,354		1,162

		176,351		196,102		30,983

Note:

(i)

Interest in Joint Ventures

The Group has interests in the following joint ventures:

Name of company

Principal activities

Place of

incorporation/

business

Group’s effective
equity interest

31.12.2016

31.12.2017

Held by subsidiaries

Copthorne Hotel Qingdao Co., Ltd. (“Copthorne Qingdao”)

Owns and operates a hotel in Qingdao, PRC

People’s

Republic of

China

30.1

—

HL Heritage Sdn. Bhd.

Property development and property investment holdings

Malaysia

30.1

Shanghai Hengshan Equatorial Hotel Management Co., Ltd.

Hotel and property management

People’s

Republic of

China

24.6

Y & C Engine Co., Ltd (“Y&C”)

Manufacture and sale of heavy duty diesel engines, spare parts and after-sales services

People’s

Republic of

China

34.4

Guangxi Yineng IOT Science & Technology Co., Ltd.

Design, development, management and marketing of an electronic operations management platform

People’s

Republic of

China

15.3

MTU Yuchai Power Co., Ltd (“MTU Yuchai Power”) ⁽ⁱ⁾

Manufacture off-road diesel engines

People’s

Republic of

China

—

38.2

Note:

(i)

MTU Yuchai Power was incorporated on January 18, 2017. During 2017, Yuchai had invested RMB 75.0 million (US$ 11.8 million) into the joint venture.

Summarized Financial Information of Joint Ventures and Reconciliation with Carrying Amount of Investment in Consolidated Financial Statements


	31.12.2015
	Y & C			Copthorne Qingdao			Total
	RMB’000			RMB’000			RMB’000
Revenue		356,697			50,971			407,668
Depreciation and amortization		(23,453	)		(12,079	)		(35,532	)
Interest expense		(19,612	)		(8,599	)		(28,211	)
Loss for the year, representing total comprehensive loss for the year		(19,952	)		(20,311	)		(40,263	)

Proportion of the Group’s ownership		45	%		60	%

Group’s share of loss		(8,978	)		(12,187	)
Depreciation arising from fair value adjustment during purchase price allocation		—			(2,804	)
Reversal of cumulative impairment loss		—			21,932

Group’s share of (loss)/profit of significant joint ventures		(8,978	)		6,941			(2,037	)

Group’s share of loss of other joint ventures, representing the Group’s share of total comprehensive loss of other joint ventures								(899	)

Group’s share of loss for the year, representing the Group’s share of total comprehensive loss for the year								(2,936	)


	31.12.2016
	Y & C			Total
	RMB’000			RMB’000
Non-current assets		616,397			616,397
Current assets
- Cash and bank balances		99,014			99,014
- Others		215,246			215,246

Total assets		930,657			930,657

Non-current liabilities		(60,382	)		(60,382	)
Current liabilities
- Interest-bearing loans and borrowings		(68,800	)		(68,800	)
- Others		(425,777	)		(425,777	)

Total liabilities		(554,959	)		(554,959	)

Equity		375,698			375,698

Proportion of the Group’s ownership		45	%

Group’s share of net assets		169,064

Carrying amount of significant joint ventures		169,064			169,064

Carrying amount of other joint ventures					7,287

Carrying amount of the investment in joint ventures					176,351


	2016
	Y & C			Copthorne Qingdao*			Total
	RMB’000			RMB’000			RMB’000
Revenue		553,878			3,674			557,552
Depreciation and amortization		(22,087	)		(2,797	)		(24,884	)
Interest expense		(14,012	)		(1,337	)		(15,349	)
Profit/(loss) for the year, representing total comprehensive loss for the year		4,531			(6,664	)		(2,133	)

Proportion of the Group’s ownership		45	%		60	%

Group’s share of profit/(loss)		2,039			(3,998	)
Depreciation arising from fair value adjustment during purchase price allocation		—			(467	)

Group’s share of profit/(loss) of significant joint ventures		2,039			(4,465	)		(2,426	)

Group’s share of loss of other joint ventures, representing the Group’s share of total comprehensive loss of other joint ventures								(1,642	)

Group’s share of loss for the year, representing the Group’s share of total comprehensive loss for the year								(4,068	)


	31.12.2017
	Y & C			MTU			Total			Total
	RMB’000			RMB’000			RMB’000			US$’000
Non-current assets		734,270			32,015			766,285			121,068
Current assets
- Cash and bank balances		199,925			113,055			312,980			49,449
- Others		367,293			22,775			390,068			61,628

Total assets		1,301,488			167,845			1,469,333			232,144

Non-current liabilities		(13,543	)		—			(13,543	)		(2,140	)
Current liabilities
- Interest-bearing loans and borrowings		(13,500	)		—			(13,500	)		(2,133	)
- Others		(842,765	)		(34,820	)		(877,585	)		(138,652	)

Total liabilities		(869,808	)		(34,820	)		(904,628	)		(142,925	)

Equity		431,680			133,025			564,705			89,219

Proportion of the Group’s ownership		45	%		50	%

Group’s share of net assets		194,256			66,513
Unrealized profit on transactions with joint venture		(72,021	)		—

Carrying amount of significant joint ventures		122,235			66,513			188,748			29,821

Carrying amount of other joint ventures								7,354			1,162

Carrying amount of the investment in joint ventures								196,102			30,983


	31.12.2017
	Y & C			MTU			Total			Total
	RMB’000			RMB’000			RMB’000			US$’000
Revenue		1,331,823			—			1,331,823			210,419
Depreciation and amortization		(20,831	)		(227	)		(21,058	)		(3,327	)
Interest expense		(28,663	)		(343	)		(29,006	)		(4,583	)
Profit/(loss) for the year, representing total comprehensive income for the year		55,982			(16,973	)		39,009			6,163

Proportion of the Group’s ownership		45	%		50	%

Group’s share of profit		25,192			(8,487	)
Unrealized profit on transactions with joint venture		(7,437	)		—

Group’s share of profit of significant joint ventures		17,755			(8,487	)		9,268			1,464

Group’s share of loss of other joint ventures, representing the Group’s share of total comprehensive loss of other joint ventures								814			129

Group’s share of profit for the year, representing the Group’s share of total comprehensive income for the year								10,082			1,593

Revenue (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Revenue


	31.12.2015		31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		RMB’000		US$’000
Sale of goods		13,634,395		13,542,568		16,085,640		2,541,416
Sale of development property		—		—		710		112
Revenue from hotel and restaurant operations		94,053		110,718		127,971		20,219
Rental income		4,989		11,554		8,121		1,283

Revenue		13,733,437		13,664,840		16,222,442		2,563,030

Other income and expenses recognized in statement of profit and loss (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Depreciation and Amortization

Depreciation of property, plant and equipment, investment property and amortization of prepaid operating leases are included in the following captions.


	31.12.2015		31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		RMB’000		US$’000
Cost of sales		319,962		322,289		307,102		48,520
Research and development expenses		58,204		56,812		48,291		7,630
Selling, general and administrative expenses		91,269		99,059		88,788		14,027

		469,435		478,160		444,181		70,177

Summary of Sales Related Shipping and Handling Expenses Not Separately Billed to Customers

Sales related shipping and handling expenses not separately billed to customers are included in the following caption:

31.12.2015

31.12.2016

31.12.2017

RMB’000

US$’000

Selling, general and administrative expenses

172,865

159,023

208,197

32,894

Summary of Other Operating Income

8.2

(a) Other operating income


	31.12.2015		31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		RMB’000		US$’000
Interest income		41,314		56,983		105,421		16,656
Dividend income from held for trading investment		—		943		2,532		400
Gain on disposal of subsidiaries (Note 4)		—		—		216,115		34,145
Gain on disposal of joint venture (Note 22)		—		—		107,976		17,059
Gain on disposal of associate		—		—		199		31
Gain on disposal of property, plant and equipment		—		—		11,668		1,843
Gain on disposal of intangible assets		—		—		115,235		18,206
Gain on disposal of prepaid operating leases		2,511		—		—		—
Gain on liquidation of joint venture		348		—		—		—
Government grants		31,205		41,515		34,337		5,425
Fair value gain on held for trading investment		—		—		12,768		2,017
Fair value gain on foreign exchange forward contract (Note 19)		15,506		—		—		—
Write-back of trade and other payables		9		—		29		5
Write-back of allowance for anticipated losses on development properties		2,976		—		—		—
Bad debt recovered		4,257		—		—		—
Foreign exchange gain, net		—		—		30,943		4,889
Others		8,805		18,513		10,129		1,600

		106,931		117,954		647,352		102,276

Summary of Other Operating Expenses

8.2

(b) Other operating expenses


	31.12.2015		31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		RMB’000		US$’000
Loss on disposal of property, plant and equipment		14,874		14,020		—		—
Loss on disposal of subsidiary		13,647		—		—		—
Loss on dilution of equity interest in joint venture		2,848		—		—		—
Foreign exchange loss, net		45,354		4,006		—		—
Fair value loss on held for trading investment		10,871		243		—		—
Fair value loss on foreign exchange forward contract		—		140		—		—
Goodwill written off		—		1,131		—		—
Others		—		3,059		22,719		3,589

		87,594		22,599		22,719		3,589

Summary of Finance Costs

8.3

Finance costs


	31.12.2015		31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		RMB’000		US$’000
Bank term loans		57,212		34,477		53,888		8,514
Corporate bonds		54,116		27,581		—		—
Bills discounting		1,651		13,068		42,179		6,664
Bank charges		3,364		4,552		4,367		690
Finance lease		8		5		5		1

		116,351		79,683		100,439		15,869

Summary of Staff Costs

8.4

Staff costs


	31.12.2015		31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		RMB’000		US$’000
Wages and salaries		839,288		922,847		1,158,320		183,006
Contribution to defined contribution plans		297,926		275,703		258,190		40,792
Executive bonuses		32,190		44,921		59,908		9,465
Staff welfare		73,908		81,223		76,392		12,069
Staff severance cost		8,385		12,864		107,732		17,021
Cost of share-based payment		10,275		5,301		1,592		252
Others		9,062		20,340		1,870		295

		1,271,034		1,363,199		1,664,004		262,900

Income tax expense (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Income Tax Expense

Income tax expense in the consolidated statement of profit or loss consists of:


	31.12.2015			31.12.2016		31.12.2017			31.12.2017
	RMB’000			RMB’000		RMB’000			US$’000

Current income tax
- Current year		104,584			104,149		197,264			31,167
- (Over)/under provision in respect of prior years		(47	)		7,175		(2,867	)		(453	)

Deferred tax
- Movement in temporary differences		72,281			48,946		25,770			4,071

Consolidated income tax expense reported in the statement of profit or loss		176,818			160,270		220,167			34,785

Reconciliation of Income Tax Expense


	31.12.2015			31.12.2016			31.12.2017			31.12.2017
	RMB’000			RMB’000			RMB’000			US$’000
Accounting profit before tax		686,138			883,878			1,625,237			256,776
Computed tax expense of 15%		102,921			132,582			243,786			38,517
Adjustments resulting from:
Non-deductible expenses		9,815			7,039			21,982			3,473
Tax-exempt income		(5,574	)		(178	)		(58,324	)		(9,215	)
Utilization of deferred tax benefits previously not recognized		(2,001	)		(3,157	)		(7,374	)		(1,165	)
Deferred tax benefits not recognized		61,299			9,045			8,084			1,277
Tax credits for research and development expense		(27,087	)		(34,482	)		(34,428	)		(5,439	)
Tax rate differential		24,249			25,321			21,061			3,328
(Over)/under provision in respect of previous years current tax		(47	)		7,175			(2,867	)		(453	)
Withholding tax expense		13,126			16,925			29,447			4,652
Others		117			—			(1,200	)		(190	)

Total		176,818			160,270			220,167			34,785

Summary of Deferred Tax

Deferred tax relates to the following:


	Consolidated statement of financial position									Consolidated statement of profit or loss
	31.12.2016			31.12.2017			31.12.2017			31.12.2015			31.12.2016			31.12.2017			31.12.2017
	RMB’000			RMB’000			US$’000			RMB’000			RMB’000			RMB’000			US$’000
Deferred tax liabilities
Accelerated tax depreciation		(10,521	)		(15,122	)		(2,389	)		(10,852	)		373			(4,601	)		(727	)
Unremitted earnings from overseas source income		(437	)		—			—			—			(25	)		—			—
Interest receivable		(1,453	)		(774	)		(122	)		—			(1,471	)		679			107
Derivatives not designated as hedges- foreign exchange forward contract		—			—			—			(2,326	)		2,326			—			—
PRC withholding tax on dividend income ⁽ⁱ⁾		(103,347	)		(100,572	)		(15,890	)		(12,549	)		(16,628	)		(29,031	)		(4,587	)

		(115,758	)		(116,468	)		(18,401	)		(25,727	)		(15,425	)		(32,953	)		(5,207	)

Deferred tax assets
Impairment of property, plant and equipment		2,876			12,319			1,946			409			(9,005	)		9,443			1,492
Write-down of inventories		21,209			17,493			2,764			(3,867	)		(4,421	)		(3,716	)		(587	)
Allowance for doubtful account receivables		9,340			7,376			1,165			(3,361	)		7,196			(1,964	)		(310	)
Accruals		185,952			204,730			32,346			17,253			(46,350	)		18,778			2,967
Deferred income		70,931			51,679			8,165			(44,232	)		10,045			(19,252	)		(3,042	)
Write down of intangible asset		—			—			—			(15,000	)		—			—			—
Others		17,899			21,793			3,443			2,244			9,014			3,894			616

		308,207			315,390			49,829			(46,554	)		(33,521	)		7,183			1,136

											(72,281	)		(48,946	)		(25,770	)		(4,071	)

Note:

⁽ⁱ⁾

The movement of PRC withholding tax on dividend income is as follows:


	31.12.2016			31.12.2017			31.12.2017
	RMB’000			RMB’000			US$’000
At January 1		(113,805	)		(103,347	)		(16,328	)
Provision made to consolidated statement of profit or loss		(16,628	)		(29,031	)		(4,587	)
Utilization		27,107			31,806			5,025
Translation differences		(21	)		—			—

December 31		(103,347	)		(100,572	)		(15,890	)

Classification of the Group's Net Deferred Tax Assets

The following table represents the classification of the Group’s net deferred tax assets:


	31.12.2016			31.12.2017			31.12.2017
	RMB’000			RMB’000			US$’000
Deferred tax assets		308,207			315,390			49,829
Deferred tax liabilities		(115,758	)		(116,468	)		(18,401	)

		192,449			198,922			31,428

Deferred Tax Assets That Have Not Been Recognized

Deferred tax assets have not been recognized in respect of the following items:


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000
Unutilized tax losses		515,207		479,410		75,743
Unutilized capital allowances and investment allowances		106,781		107,266		16,947
Other unrecognized temporary differences relating to provisions and deferred grants		224,087		230,269		36,381

		846,075		816,945		129,071

Earnings per share (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Earnings Per Share

The calculation of basic earnings per share is based on:


	31.12.2015		31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		RMB’000		US$’000
Profit attributable to ordinary equity holders of the parent		341,108		515,737		953,922		150,713

Weighted average number of ordinary shares		38,712,282		40,016,808		40,764,569		40,764,569

Diluted earnings per share

The weighted average number of ordinary shares adjusted for the effect of unissued ordinary shares under the Share Option Scheme is determined as follows:


	31.12.2015		31.12.2016		31.12.2017
Weighted average number of shares issued, used in the calculation of basic earnings per share		38,712,282		40,016,808		40,764,569
Diluted effect of share options		—		—		—

Weighted average number of ordinary shares adjusted for effect of dilution		38,712,282		40,016,808		40,764,569

Property, plant and equipment (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Property, Plant and Equipment


	Freehold land RMB’000		Leasehold land, buildings and improvements RMB’000			Construction in progress RMB’000			Plant and machinery RMB’000			Office furniture, fittings and equipment RMB’000			Motor and transport vehicles RMB’000			Total RMB’000
Cost
At January 1, 2016		13,301		2,307,160			328,117			4,969,820			181,448			114,681			7,914,527
Additions		—		23,621			232,474			8,514			17,757			2,627			284,993
Acquisition as subsidiary		—		—			—			—			29			—			29
Disposals		—		(16,492	)		—			(114,861	)		(6,966	)		(3,263	)		(141,582	)
Transfers		—		37,001			(224,440	)		186,620			142			296			(381	)
Write-off		—		—			—			—			(5	)		—			(5	)
Translation difference		429		356			—			(337	)		56			84			588

At December 31, 2016 and January 1, 2017		13,730		2,351,646			336,151			5,049,756			192,461			114,425			8,058,169
Additions		—		1,109			226,977			7,464			16,763			9,120			261,433
Disposal of subsidiary		—		(107,632	)		—			(35,490	)		(12,473	)		(255	)		(155,850	)
Disposals		—		(3,310	)		—			(10,064	)		(3,718	)		(5,481	)		(22,573	)
Transfers		—		81,486			(280,358	)		198,872			—			—			—
Write-off		—		(2,385	)		(1,674	)		(53,792	)		(15,307	)		(599	)		(73,757	)
Translation difference		263		1,954			—			88			2,228			(74	)		4,459

At December 31, 2017		13,993		2,322,868			281,096			5,156,834			179,954			117,136			8,071,881


Accumulated depreciation and impairment
At January 1, 2016		460		572,857			—			2,831,362			110,175			70,129			3,584,983
Charge for the year		—		78,504			—			359,046			21,248			6,295			465,093
Disposals		—		(8,720	)		—			(104,346	)		(6,514	)		(2,277	)		(121,857	)
Transfers		—		(24	)		—			—			—			—			(24	)
Impairment loss		—		—			—			3,297			—			—			3,297
Translation difference		7		(331	)		—			(160	)		(78	)		54			(508	)

At December 31, 2016 and January 1, 2017		467		642,286			—			3,089,199			124,831			74,201			3,930,984
Charge for the year		—		78,347			—			325,979			21,202			6,039			431,567
Disposal of subsidiary		—		(26,031	)		—			(15,040	)		(9,695	)		(240	)		(51,006	)
Disposals		—		(1,879	)		—			(10,191	)		(1,798	)		(4,733	)		(18,601	)
Write-off		—		(1,377	)		—			(51,087	)		(15,012	)		(599	)		(68,075	)
Impairment loss		—		—			1,055			19,790			—			—			20,845
Translation difference		17		104			—			62			1,998			(32	)		2,149

At December 31, 2017		484		691,450			1,055			3,358,712			121,526			74,636			4,247,863


Net book value
At December 31, 2016		13,263		1,709,360			336,151			1,960,557			67,630			40,224			4,127,185

At December 31, 2017		13,509		1,631,418			280,041			1,798,122			58,428			42,500			3,824,018

US$’000		2,134		257,752			44,245			284,091			9,231			6,715			604,168

Investment property (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Investment Property


	31.12.2016			31.12.2017			31.12.2017
	RMB’000			RMB’000			US$’000

Cost
At January 1		31,323			31,776			5,020
Translation difference		453			1,169			185

At December 31		31,776			32,944			5,205


Accumulated depreciation
At January 1		23,886			24,478			3,867
Charge for the year		248			248			39
Translation difference		344			784			125

At December 31		24,478			25,510			4,031


Net carrying amount		7,298			7,434			1,174

Fair value		10,149			10,557			1,668

Consolidated statements of profit or loss:
Direct operating expenses (including repairs, maintenance and depreciation expense) arising from the rental generating property		(571	)		(508	)		(80	)

Investment property [Member]

Fair Value Measurement of Investment Property

The following table shows information about fair value measurement of the investment property using significant unobservable inputs (Level 3):

Prepaid operating leases (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Prepaid Operating Leases


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

Current		12,546		12,546		1,982
Non-current		379,636		367,270		58,026

Total		392,182		379,816		60,008


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

Cost
At January 1 and December 31		529,577		529,577		83,669


Accumulated amortization
At January 1		124,576		137,395		21,707
Charge for the year		12,819		12,366		1,954

At December 31		137,395		149,761		23,661


Net carrying amount		392,182		379,816		60,008

Goodwill (Tables)

12 Months Ended

Dec. 31, 2017

Carrying Amount of Goodwill Allocated to Cash-generating Unit

Summary of Goodwill


	RMB’000		US$’000

Cost
At January 1, 2016, December 31, 2016, January 1, 2017 and December 31, 2017		218,311		34,492


Accumulated impairment
At January 1, 2016, December 31, 2017, January 1, 2017 and December 31, 2017		5,675		897


Net carrying amount
At December 31, 2016 and December 31, 2017		212,636		33,595

Carrying amount of goodwill allocated to the cash-generating unit:

31.12.2016

31.12.2017

RMB’000

US$’000

Yuchai

212,636

33,595

Intangible assets (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Intangible Assets


	Development costs
	RMB’000

Cost
At January 1, 2016, December 31, 2016 and January 1, 2017		168,526
Disposal		(31,704	)

At December 31, 2017		136,822


Impairment
At January 1, 2016, December 31, 2016 and January 1, 2017		86,700
Charge to consolidated statement of profit or loss		40,000

At December 31, 2017		126,700


Net carrying amount
At December 31, 2016		81,826

At December 31, 2017		10,122


US$’000		1,599

Other financial liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Other Financial Liabilities

(a)

Other liabilities


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

Derivative not designated as hedges – foreign exchange forward contract		140		—		—
Finance lease liabilities (Note 31)		108		79		12

Total		248		79		12


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

Current		178		33		5
Non-current		70		46		7

Total		248		79		12

Summary of Interest-bearing Loans and Borrowings

(b)

Interest-bearing loans and borrowings


	Effective interest rate		Maturity		31.12.2016
	%				RMB’000
Current
Renminbi denominated loans		3.94		2017		753,750
USD denominated loans		3.70		2017		104,055
Singapore Dollar denominated loans⁽ⁱⁱ⁾		1.81		2017		33,616
Malaysian Ringgit denominated loans		5.90		2017		2,715

						894,136

Non-current
Malaysian Ringgit denominated loans		5.90		2020		16,270


	Effective interest rate		Maturity		31.12.2017		31.12.2017
	%				RMB’000		US$’000
Current
Renminbi denominated loans		3.99		2018		1,600,000		252,789


Non-current
Malaysian Ringgit denominated loans		5.95		2020		11,685		1,846
Singapore Dollar denominated loans⁽ⁱⁱ⁾		1.88		2020		14,656		2,316

						26,341		4,162

Note:

⁽ⁱ⁾

All loans balances as stated above do not have a callable feature.

⁽ⁱⁱ⁾

The loans comprise:


Issuer bank	Facility limit		Usage
			RMB’000
December 31, 2016
Bank of Tokyo-Mitsubishi, UFJ Ltd		S$ 30 million		16,808
Sumitomo Mitsui Banking Corporation		US$ 30 million		16,808

			33,616

December 31, 2017
Bank of Tokyo-Mitsubishi, UFJ Ltd		S$ 30 million		14,656

		US$’000		2,316

Deferred grants (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Deferred Grants


	31.12.2016			31.12.2017			31.12.2017
	RMB’000			RMB’000			US$’000

At January 1		360,783			337,889			53,384
Received during the year		13,639			50,095			7,915
Released to consolidated statement of profit or loss		(36,533	)		(34,337	)		(5,425	)

At December 31		337,889			353,647			55,874


Current (Note 28)		21,939			22,270			3,519
Non-current		315,950			331,377			52,355

		337,889			353,647			55,874

Inventories (Tables)

12 Months Ended

Dec. 31, 2017

Analysis of Inventory Reserve Accounts

Summary of Inventories


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

Raw materials		904,737		1,188,396		187,758
Work in progress		26,807		34,924		5,518
Finished goods		732,335		1,349,425		213,199

Total inventories at the lower of cost and net realizable value		1,663,879		2,572,745		406,475


	31.12.2015			31.12.2016			31.12.2017			31.12.2017
	RMB’000			RMB’000			RMB’000			US$’000

Inventories recognized as an expense in cost of sales		9,566,699			9,308,265			11,021,960			1,741,391
Inclusive of the following charge/(credit):
- Inventories written down		59,339			48,202			17,492			2,764
- Reversal of write-down of inventories		(24,079	)		(53,373	)		(37,393	)		(5,908	)

Other assets (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Other Current Assets


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

Current
Development properties		23,378		23,833		3,765
Held for trading investment, quoted equity securities⁽ⁱ⁾		12,181		24,714		3,905

		35,559		48,547		7,670

Summary of Other Non Current Assets

31.12.2016
RMB’000

31.12.2017
RMB’000

31.12.2017
US$’000

Non-current

Deferred expenditure⁽ⁱⁱ⁾

—

303

⁽ⁱ⁾

The quoted equity securities are listed on the Singapore Exchange.

⁽ⁱⁱ⁾

The deferred expenditure relate to the legal fees for an option to purchase for sale of lands entered with a buyer in 2016 and will be transferred to the profit or loss upon completion of the sale.

Trade and bill receivables (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Trade and Bills Receivables


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

Trade receivables, net		241,168		212,104		33,511
Bill receivables ⁽ⁱ⁾		6,816,088		6,819,440		1,077,423

Total (Note 36)		7,057,256		7,031,544		1,110,934

⁽ⁱ⁾

Analysis of Impairment of Doubtful Receivables

An analysis of the impairment of trade receivables is as follows:


	31.12.2016			31.12.2017			31.12.2017
	RMB’000			RMB’000			US$’000

At January 1		51,288			54,634			8,632
Charge/(credit) to consolidated statement of profit or loss		3,696			(10,854	)		(1,715	)
Written off		(346	)		(5	)		(1	)
Translation differences		(4	)		—			—

At December 31		54,634			43,775			6,916

Age Analysis of Trade and Bills Receivables


			Neither past due		Past due but not impaired
	Total		nor impaired		0 – 90 days		91-180 days		181-365 days		>365 days
	RMB’000		RMB’000		RMB’000		RMB’000		RMB’000		RMB’000

At 31.12.2017		7,031,544		6,919,347		59,966		21,457		29,857		917
At 31.12.2016		7,057,256		6,995,511		37,902		12,062		9,654		2,127

Other receivables and prepayments (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Other Current Receivables and Prepayments


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

Staff advances		7,501		5,107		807
Associates and joint ventures		182,671		13,230		2,090
Other related parties		10,096		37,275		5,889
Interest receivables		6,775		4,345		686
Bills receivable in transit		29,134		32,013		5,058
Retention sums ⁽ⁱ⁾		—		30,000		4,740
Others		10,510		10,705		1,692

Loans and receivables (Note 36)		246,687		132,675		20,962
Tax recoverable		102,024		177,819		28,094
Prepayments		37,654		73,896		11,675

Total		386,365		384,390		60,731

For terms and conditions relating to related parties, refer to Note 30.

Note:

⁽ⁱ⁾

Retention sums relate to money deposits in an escrow account pending finalization of tax payable for the disposal of LKNII.

Summary of Non-current Other Receivables

31.12.2016

31.12.2017

RMB’000

US$’000

Other receivables (non-current) ⁽ⁱ⁾ (Note 36)

1,588

620

⁽ⁱ⁾

Asset classified as held for sale (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Value of Asset and Related Reserves of Disposal

The value of asset and related reserves of disposal recorded in the consolidated financial statements and the cash flow effect of the disposals were:


	31.12.2017			31.12.2017
	RMB’000			US$’000
Interest in joint venture, representing asset classified as held for sale		89,381			14,122

Gain on disposal:
Total consideration less cost of disposal		182,679			28,862
Interest in joint venture derecognized		(89,381	)		(14,122	)
Realization of foreign currency translation reserves upon disposal		22,720			3,590
Waiver of amount due by joint venture		(8,042	)		(1,271	)

Gain on disposal of joint venture (Note 8.2(a))		107,976			17,059

Total consideration less cost of disposal, representing net cash inflow on disposal of the joint venture		182,679			28,862

Cash and cash equivalents (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Cash and Bank Balances


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000
Non-current
Long-term bank deposits ⁽ⁱ⁾		—		70,000		11,060


Current
Cash and cash equivalents		3,653,914		5,390,324		851,633
Short-term bank deposits ⁽ⁱⁱ⁾		363,043		514,074		81,220
Restricted cash		36,000		54,809		8,659

		4,052,957		5,959,207		941,512


Cash and bank balances		4,052,957		6,029,207		952,572

Note:

⁽ⁱ⁾

⁽ⁱⁱ⁾

Issued capital and Preference shares (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Issued Capital and Preference Shares

31.12.2016

31.12.2017

thousands

Issued capital

Authorized shares

Ordinary share of par value US$0.10 each

100,000

Number of

shares

RMB’000

Ordinary shares issued and fully paid

At January 1, 2016

39,298,340

1,955,720

Issued of shares as dividend payment (Note 25)

1,413,760

103,356

At December 31, 2016 and January 1, 2017

40,712,100

2,059,076

Issued of shares as dividend payment (Note 25)

99,790

12,897

Issued of shares upon exercised of share options (Note 27)

46,400

9,165

At December 31, 2017

40,858,290

2,081,138

US$’000

328,805

31.12.2016

31.12.2017

RMB’000

US$’000

Special share issued and fully paid

One special share issued and fully paid at US$0.10 per share

Non-redeemable convertible cumulative preference shares

Less than RMB 1 (US$1)

Dividends declared and paid (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Dividends Declared and Paid


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

Declared and paid during the year
Dividends on ordinary shares:
Final dividend paid in 2017: US$0.90 per share (2016: US$0.85 per share)		221,549		248,844		39,316

Dividend paid in cash		118,193		235,947		37,278
Dividend paid in shares (Note 24)		103,356		12,897		2,038

		221,549		248,844		39,316

Reserves (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Statutory Reserves


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

Statutory reserve
Statutory general reserve ⁽ⁱⁱ⁾
At January 1		272,515		273,438		43,202
Transfer from retained earnings		923		1,882		297

At December 31		273,438		275,320		43,499

General surplus reserve ⁽ⁱⁱⁱ⁾
At January 1 and December 31		25,706		25,706		4,061

Total		299,144		301,026		47,560

Note:

⁽ⁱ⁾

⁽ⁱⁱ⁾

⁽ⁱⁱⁱ⁾

Summary of Other Components of Equity


	31.12.2016			31.12.2017			31.12.2017
	RMB’000			RMB’000			US$’000

Other components of equity
Foreign currency translation reserve ⁽ⁱ⁾		(43,959	)		(82,939	)		(13,104	)
Performance shares reserve ⁽ⁱⁱ⁾		20,839			19,758			3,122
Reserve of asset classified as held for sale		22,720			—			—
(Premium paid for)/discount on acquisition of non- controlling interests		(11,160	)		(11,541	)		(1,823	)

Total		(11,560	)		(74,722	)		(11,805	)

⁽ⁱ⁾

Foreign currency translation reserve

⁽ⁱⁱ⁾

Performance shares reserve

The performance shares reserve comprises the cumulative value of employee services received for the issue of share options. The amount in the reserve is retained when the option is expired.

Share-based payment (Tables)

12 Months Ended

Dec. 31, 2017

Expense Recognized for Employee Services Received

The expense recognized for employee services received during the year is shown in the following table:


	31.12.2015		31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		RMB’000		US$’000

Expense arising from equity-settled share-based payment transactions		10,275		5,301		1,592		252

Total expense arising from share-based payment transactions		10,275		5,301		1,592		252

Number and Weighted Average Exercise Prices ("WAEP") of, and Movements in Share Options

The following table illustrates the number and weighted average exercise prices (“WAEP”) of, and movements in share options during the year:

Number of

share options

WAEP

Number of

share options

WAEP

2016

2017

Outstanding at January 1

570,000

US$

21.11 dollar

530,000

US$

21.11 dollar

Exercised during the year

—

(46,400

)

US$

21.11 dollar

Cancelled during the year

(40,000

)

US$

21.11 dollar

(13,600

)

US$

21.11 dollar

Outstanding at December 31

530,000

US$

21.11 dollar

470,000

US$

21.11 dollar

Exercisable at December 31

353,333

US$

21.11 dollar

470,000

US$

21.11 dollar

Fair Value of Share Options and Assumptions

Fair value of share options and assumptions


Date of grant of options		On July 29, 2014

Fair value at measurement date (US$)		5.70 dollar – 6.74 dollar

Share price (US$)		21.11 dollar
Exercise price (US$)		21.11 dollar
Expected volatility (%)		47.4
Expected option life (years)		3.5 – 5.5
Expected dividends (%)		5.81
Risk-free interest rate (%)		1.4 – 2.0

Trade and other payables (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Trade and Other Current Payables


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

Trade and bills payables ⁽ⁱ⁾		4,672,750		5,177,123		817,948
Other payables		362,856		366,604		57,921
Accrued expenses		841,942		843,447		133,258
Accrued staff costs		406,261		622,893		98,413
Dividend payable		37,851		39,786		6,286
Associates and joint ventures		91,439		102,111		16,133
Other related parties		120,619		125,411		19,814

Financial liabilities at amortized cost (Note 36)		6,533,718		7,277,375		1,149,773
Other tax payable		42,750		51,387		8,119

Trade and other payables with liquidity risk (Note 33)		6,576,468		7,328,762		1,157,892
Deferred grants (Note 17)		21,939		22,270		3,519
Deferred income ⁽ⁱⁱ⁾		170,000		—		—
Advance from customers		76,636		117,117		18,503

Total trade and other payables (current)		6,845,043		7,468,149		1,179,914

⁽ⁱ⁾	As of December 31, 2017, the trade and bills payables include bills payable to joint ventures, associates and other related parties amounted to RMB 63,600 (US$10,048) (2016: RMB 50), RMB 8,560 (US$1,352) (2016: RMB 12,210) and RMB 114,749 (US$18,129) (2016: RMB 133,708) respectively.

⁽ⁱⁱ⁾

Summary of Other Non-current Payables


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000
Provision for bonus ⁽ⁱ⁾		133,928		148,287		23,428
Deferred income ⁽ⁱⁱ⁾		2,844		8,060		1,274

Other payables (non-current) (Note 33, Note 36)		136,772		156,347		24,702

⁽ⁱ⁾	The provision is not expected to be settled within next 12 months.

⁽ⁱⁱ⁾	This relates to progress payments received for sale of lands and will be credited to profit and loss upon completion of the sale.

Provision for product warranty (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Provision for Product Warranty


	31.12.2016			31.12.2017			31.12.2017
	RMB’000			RMB’000			US$’000

At January 1		233,577			238,850			37,737
Provision made		350,803			412,514			65,174
Provision utilized		(345,530	)		(361,058	)		(57,045	)

At December 31		238,850			290,306			45,866

Related party disclosures (Tables)

12 Months Ended

Dec. 31, 2017

Significant Transactions with Related Parties

The following provides the significant transactions that have been entered into with related parties for the relevant financial year.


	31.12.2015		31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		RMB’000		US$’000

Sales
- Materials/engines to State Holding Company, its subsidiaries and affiliates		516,679		447,509		455,061		71,896
- Hospitality and restaurant service charged to State Holding Company, its subsidiaries and affiliates		3,247		4,761		4,454		704
- Diesel engines and materials to associates and joint ventures		156,444		219,724		412,591		65,186
Purchase
- Purchase of materials and supplies from subsidiaries and affiliates of State Holding Company		1,181,852		1,028,358		1,221,421		192,976
- Materials and supplies/engines from associates and joint ventures		90,354		308,610		914,211		144,439
Others
- Delivery expense charged by subsidiaries of State Holding Company		164,690		143,077		192,399		30,398
- Storage, distribution and handling expenses charged by a subsidiary of State Holding Company		30,462		50,181		18,007		2,845
- Property management service charged by an associate/ a subsidiary of SHC⁽ⁱⁱ⁾		23,359		20,976		22,212		3,509
- Leasing expenses charged by State Holding Company		12,951		4,715		8,676		1,371
- Consultancy fees charged by State Holding Company		—		10,026		12,264		1,938
- General and administrative expenses charged by State Holding Company		3,141		4,283		7,951		1,256
- General and administrative expenses charged by affiliates of HLA		6,271		6,887		6,913		1,092
- Charged by joint ventures for service provided		—		2,121		2,543		402
- Charged to subsidiaries of State Holding Company for service provided		—		8,873		21,274		3,361
- Charged to a joint venture for service provided		—		—		14,241		2,250
- Rental income charged to State Holding Company and its subsidiaries		619		5,454		4,483		708
- Purchases of vehicles/machineries from State Holding Company and its subsidiary		1,963		—		52,443		8,286
- Purchases of additional shareholding in a subsidiary from State Holding Company ⁽ⁱ⁾		4,170		—		1,335		211
- Disposal of shareholding in an associate to State Holding Company ⁽ⁱⁱ⁾		—		—		1,833		290
- Sales of an intangible asset to a joint venture		—		—		220,000		34,758

Note:

⁽ⁱ⁾

In October 2015, Yuchai acquired 2.86% of equity interest in YEMC from State Holding Company with a purchase consideration of RMB 4.2 million.

In June 2017, GYAMC acquired 25% of equity interest in Crankshaft from State Holding Company with a purchase consideration of RMB 1.3 million (US$0.2 million).

⁽ⁱⁱ⁾

In August 2017, YEMC disposed its 30% equity interest in Property Management to State Holding Company for a consideration of RMB 1.9 million (US$0.3 million).

Compensation of Key Management Personnel

Compensation of key management personnel of the Group


	31.12.2015		31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		RMB’000		US$’000

Short-term employee benefits		27,331		31,975		40,831		6,451
Contribution to defined contribution plans		305		415		385		61
Cost of share-based payment		8,477		4,387		1,294		204

		36,113		36,777		42,510		6,716

Commitments and contingencies (Tables)

12 Months Ended

Dec. 31, 2017

Operating lease [Member]

Future Minimum Rentals Receivable Under Non-cancellable Operating Leases

Future minimum rentals receivable under non-cancellable operating leases as at December 31 are as follows:


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

Within one year
- With related parties		102		184		29
- With third parties		1,624		1,438		227
After one year but not more than five years
- With related parties		—		268		42
- With third parties		1,855		2,491		394
More than five years
- With third parties		268		1,310		207

		3,849		5,691		899

Future Minimum Lease Payments

Future minimum rentals payable under non-cancellable operating leases as at December 31 are as follows:


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

Within one year
- With related parties		800		5,578		881
- With third parties		11,338		14,058		2,221
After one year but not more than five years
- With related parties		1,399		1,724		272
- With third parties		12,537		14,003		2,212
More than five years
- With third parties		114		—		—

		26,188		35,363		5,586

Finance lease [Member]

Future Minimum Lease Payments

Future minimum lease payments under finance lease together with the present value of the net minimum lease payments are as follows:


	31.12.2016					31.12.2017
	Minimum lease payments			Present value of payments		Minimum lease payments				Present value of payments
	RMB’000			RMB’000		RMB’000		US$’000		RMB’000		US$’000

Not later than one year		43			38		33		5		33		5
Later than one year but not later than five years		70			70		46		7		46		7

Total minimum lease payments		113			108		79		12		79		12
Less: Amount representing finance charges		(5	)		*		*		*		*		*

Present value of minimum lease payments		108			108		79		12		79		12

Less than RMB 1 (US$1)

Segment information (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Segment Information


Year ended December 31, 2015	Yuchai			HLGE			Corporate			Eliminations			Consolidated financial statements
	RMB’000			RMB’000			RMB’000			RMB’000			RMB’000

Revenue
Total external revenue		13,671,931			61,506			—			—			13,733,437


Results
Interest income		35,557			1,415			10,003			(5,661	)		41,314
Interest expense		(110,618	)		(7,595	)		(435	)		5,661			(112,987	)
Impairment of property, plant and equipment		(2,873	)		—			—			—			(2,873	)
Impairment of technology development cost		(26,700	)		—			—			—			(26,700	)
Staff severance cost		(8,385	)		—			—			—			(8,385	)
Depreciation and amortization		(458,759	)		(10,458	)		(218	)		—			(469,435	)
Share of (loss)/profit of associates and joint ventures, net of tax		(10,230	)		7,539			—			—			(2,691	)
Income tax expense		(161,731	)		(2,491	)		(12,596	)⁽¹⁾		—			(176,818	)

Segment profit after income tax		583,115			6,473			(80,268	)		—			509,320


Year ended December 31, 2016	Yuchai			HLGE			Corporate			Eliminations			Consolidated financial statements
	RMB’000			RMB’000			RMB’000			RMB’000			RMB’000

Revenue
Total external revenue		13,598,487			66,353			—			—			13,664,840


Results
Interest income		51,235			1,919			10,080			(6,251	)		56,983
Interest expense		(73,028	)		(7,706	)		(648	)		6,251			(75,131	)
Impairment of property, plant and equipment		(3,297	)		—			—			—			(3,297	)
Staff severance costs		(12,864	)		—			—			—			(12,864	)
Depreciation and amortization		(467,177	)		(10,744	)		(239	)		—			(478,160	)
Share of profit/(loss) of associates and joint ventures, net of tax		112			(3,724	)		—			—			(3,612	)
Income tax expense		(141,272	)		(2,281	)		(16,717	)⁽¹⁾		—			(160,270	)
Segment profit after income tax		765,039			(4,548	)		(36,883	)		—			723,608

Total assets		17,537,583			449,994			2,111,248			(1,502,319	)		18,596,506

Total liabilities		(8,419,018	)		(369,124	)		(151,472	)		328,920			(8,610,694	)

Other disclosures
Investment in joint ventures		173,781			2,570			—			—			176,351
Capital expenditure		282,284			2,623			86			—			284,993


Year ended December 31, 2017	Yuchai			HLGE			Corporate			Eliminations			Consolidated financial statements			Consolidated financial statements
	RMB’000			RMB’000			RMB’000			RMB’000			RMB’000			US$’000

Revenue
Total external revenue		16,165,245			57,197			—			—			16,222,442			2,563,030


Results
Interest income		94,760			1,803			11,833			(2,975	)		105,421			16,656
Interest expense		(94,794	)		(3,983	)		(270	)		2,975			(96,072	)		(15,179	)
Gain on disposal of intangible assets		115,235			—			—			—			115,235			18,206
Gain on disposal of subsidiaries		—			216,115			—			—			216,115			34,145
Gain on disposal of joint venture		—			107,976			—			—			107,976			17,059
Impairment of property, plant and equipment		(20,845	)		—			—			—			(20,845	)		(3,293	)
Impairment of technology development cost		(40,000	)		—			—			—			(40,000	)		(6,320	)
Staff severance cost		(107,732	)		—			—			—			(107,732	)		(17,021	)
Depreciation and amortization		(433,921	)		(9,990	)		(270	)		—			(444,181	)		(70,177	)
Share of profit of associates and joint venture		9,255			799			—			—			10,054			1,589
Income tax expense		(190,573	)		(461	)		(29,133	)⁽¹⁾		—			(220,167	)		(34,785	)

Segment profit after tax		1,089,233			322,481			(6,644	)		—			1,405,070			221,991

Total assets		19,623,882			451,096			2,444,012			(1,503,931	)		21,015,059			3,320,229

Total liabilities		(9,840,265	)		(66,920	)		(128,591	)⁽²⁾		(7	)		(10,035,783	)		(1,585,582	)

Other disclosures
Investment in joint ventures		193,476			2,626			—			—			196,102			30,983
Capital expenditure		259,068			975			1,390			—			261,433			41,305

Note:

⁽¹⁾

This relates mainly to the withholding tax provisions for dividends from Yuchai.

⁽²⁾

Included here are mainly the cumulative withholding tax provision for dividends that are expected to be paid from income earned after December 31, 2007 by Yuchai.

Summary of Geographic Information

Revenue from external customers:


	31.12.2015		31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		RMB’000		US$’000

People’s Republic of China		13,630,979		13,508,721		16,116,356		2,546,269
Other countries		102,458		156,119		106,086		16,761

		13,733,437		13,664,840		16,222,442		2,563,030

The revenue information above is based on the location of the customer.

Revenue from one customer group amounted to RMB 4,839,617 (US$764,625) (2016: RMB 3,580,856; 2015: RMB 2,900,332), arising from sales by Yuchai segment.

Non-current assets


	31.12.2016		31.12.2017		31.12.2017
	RMB’000		RMB’000		US$’000

People’s Republic of China		4,893,338		4,524,988		714,916
Other countries		95,430		94,779		14,974

		4,988,768		4,619,767		729,890

Financial risk management objectives and policies (Tables)

12 Months Ended

Dec. 31, 2017

Maturity Profile of Financial Assets and Liabilities Based on Contractual Undiscounted Payments

The table below summarizes the maturity profile of the Group’s financial assets and liabilities based on contractual undiscounted payments.


	One year or less		Two to five years		More than five years		Total
As at December 31, 2016	RMB’000		RMB’000		RMB’000		RMB’000

Financial assets
Trade and bills receivables		7,111,890		—		—		7,111,890
Other receivables, excluding tax recoverable		246,687		1,588		—		248,275
Cash and bank balances		4,052,957		—		—		4,052,957
Held for trading investment and derivative not designated as hedges – foreign exchange forward contract		12,181		—		—		12,181

		11,423,715		1,588		—		11,425,303


Financial liabilities
Derivative not designated as hedges – foreign exchange forward contract		140		—		—		140
Interest-bearing loans and borrowings		909,824		18,409		—		928,233
Trade and other payables (Note 28)		6,576,468		136,772		—		6,713,240
Other liabilities		43		70		—		113

		7,486,475		155,251		—		7,641,726


	One year or less		Two to five years		More than five years		Total		Total
As at December 31, 2017	RMB’000		RMB’000		RMB’000		RMB’000		US$’000

Financial assets
Trade and bills receivables		7,075,319		—		—		7,075,319		1,117,850
Other receivables, excluding tax recoverable		132,675		620		—		133,295		21,060
Cash and bank balances		6,029,207		—		—		6,029,207		952,572
Held for trading investment		24,714		—		—		24,714		3,905

		13,261,915		620		—		13,262,535		2,095,387


Financial liabilities
Interest-bearing loans and borrowings		1,624,539		27,874		—		1,652,413		261,069
Trade and other payables (Note 28)		7,328,762		156,347		—		7,485,109		1,182,594
Other liabilities		33		46		—		79		12

		8,953,334		184,267		—		9,137,601		1,443,675

Foreign currency risk [Member]

Exposures to Foreign Currency

The Group’s exposures to foreign currency are as follows:


	31.12.2016
	Singapore Dollar			Euro			US Dollar			Renminbi			Others
	RMB’000			RMB’000			RMB’000			RMB’000			RMB’000

Held for trading investment		12,181			—			—			—			—
Trade and other receivables		957			9,232			15,032			31,679			982
Cash and bank balances		117,763			3,841			7,247			—			—
Financial liabilities		(33,686	)		—			(104,055	)		—			—
Trade and other payables		(12,991	)		(10,763	)		(5,873	)		(1,410	)		—

Net assets/(liabilities)		84,224			2,310			(87,649	)		30,269			982


	31.12.2017
	Singapore Dollar			Euro			US Dollar			Renminbi			Others
	RMB’000			RMB’000			RMB’000			RMB’000			RMB’000

Held for trading investment		24,714			—			—			—			—
Trade and other receivables		725			—			34,727			469			—
Cash and bank balances		418,875			1,486			16,068			—			498
Financial liabilities		(14,715	)		—			—			—			—
Trade and other payables		(13,748	)		(10,857	)		(5,574	)		(35,505	)		(24	)

Net assets/(liabilities)		415,851			(9,371	)		45,221			(35,036	)		474

US$’000		65,701			(1,481	)		7,145			(5,535	)		75

Risk Sensitivity Analysis


	Profit before tax
	31.12.2016			31.12.2017			31.12.2017
	RMB’000			RMB’000			US$’000
Singapore Dollar		8,422			41,585			6,570
Euro		231			(937	)		(148	)
US Dollar		(8,765	)		4,522			714
Renminbi		3,027			(3,504	)		(554	)

Equity price risk [Member]

Risk Sensitivity Analysis

A 10% increase/(decrease) in the underlying prices at the reporting date would increase/(decrease) Group’s profit before tax by the following amount:

31.12.2016

31.12.2017

RMB’000

US$’000

Statement of profit or loss

1,218

2,471

390

Capital management (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Capital Structure


	31.12.2016			31.12.2017			31.12.2017
	RMB’000			RMB’000			US$’000

Interest-bearing loans and borrowings (current and non-current) (Note 16(b))		910,406			1,626,341			256,951
Trade and other payables (current and non-current) (Note 28)		6,981,815			7,624,496			1,204,616
Less: Cash and bank balances (Note 23)		(4,052,957	)		(6,029,207	)		(952,572	)

Net debts		3,839,264			3,221,630			508,995
Equity attributable to equity holders of the parent		7,683,834			8,347,562			1,318,855

Total capital and net debts		11,523,098			11,569,192			1,827,850

Fair value measurement (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value Measurement Hierarchy for Assets and Liabilities

Quantitative disclosures fair value measurement hierarchy for assets and liabilities as at December 31, 2016:

Fair value measurement using

Date of

valuation

Quoted

prices

active

markets

Significant

observable

inputs

Significant

unobservable

inputs

Total

(Level 1)

(Level 2)

(Level 3)

RMB’000

Assets measured at fair value

Held for trading investment:

Quoted equity shares – TCL (Note 19)

December 31,

2016

12,181

—

Liabilities measured at fair value

Derivative financial liabilities:

Foreign exchange forward contract - USD⁽ⁱ⁾ (Note 16(a))

December 31,

2016

140

—

140

—

Quantitative disclosures fair value measurement hierarchy for assets and liabilities as at December 31, 2017:

Fair value measurement using

Date of

valuation

Quoted

prices

active

markets

Significant

observable

inputs

Significant

unobservable

inputs

Total

(Level 1)

(Level 2)

(Level 3)

RMB’000

Assets measured at fair value

Held for trading investment:

Quoted equity shares – TCL (Note 19)

December 31,

2017

24,714

—

Note:

⁽ⁱ⁾

Financial assets and financial liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Financial Assets and Financial Liabilities


	Note		Financial assets at fair value through profit or loss		Loans and receivables		Other financial liabilities at amortized cost		Total
			RMB’000		RMB’000		RMB’000		RMB’000

As at December 31, 2016

Financial assets
Held for trading investment		19		12,181		—		—		12,181
Trade and bills receivables		20		—		7,057,256		—		7,057,256
Other receivables		21		—		248,275		—		248,275
Cash and bank balances		23		—		4,052,957		—		4,052,957

				12,181		11,358,488		—		11,370,669


Financial liabilities
Trade and other payables		28		—		—		6,670,490		6,670,490
Loans and borrowings		16(b)		—		—		910,406		910,406
Other liabilities		16(a)		—		—		248		248

				—		—		7,581,144		7,581,144


	Note		Financial assets at fair value through profit or loss		Loans and receivables		Other financial liabilities at amortized cost		Total		Total
			RMB’000		RMB’000		RMB’000		RMB’000		US$’000

As at December 31, 2017

Financial assets
Held for trading investment		19		24,714		—		—		24,714		3,905
Trade and bills receivables		20		—		7,031,544		—		7,031,544		1,110,934
Other receivables		21		—		133,295		—		133,295		21,060
Cash and bank balances		23		—		6,029,207		—		6,029,207		952,572

				24,714		13,194,046		—		13,218,760		2,088,471


Financial liabilities
Trade and other payables		28		—		—		7,433,722		7,433,722		1,174,475
Loans and borrowings		16(b)		—		—		1,626,341		1,626,341		256,951
Other liabilities		16(a)		—		—		79		79		12

				—		—		9,060,142		9,060,142		1,431,438

Schedule of Changes in Liabilities Arising From Financing Activities


	January 1, 2016		Cash flows			Foreign exchange movement			Translation reserve		Others			December, 31, 2016
	RMB’000		RMB’000			RMB’000			RMB’000		RMB’000			RMB’000

As at December 31, 2016

Loans & bonds
- current		2,399,195		(1,535,532	)		(9,608	)		—		40,081			894,136
- non-current		56,509		(2,015	)		(1,242	)		3,099		(40,081	)		16,270
Obligations under finance leases
- current		59		(62	)		(5	)		8		38			38
- non-current		55		—			—			—		15			70

Total liabilities from financing activities		2,455,818		(1,537,609	)		(10,855	)		3,107		53			910,514


	January 1, 2017		Cash flows			Foreign exchange movement		Translation reserve			Others			December, 31, 2017		December, 31, 2017
	RMB’000		RMB’000			RMB’000		RMB’000			RMB’000			RMB’000		US$’000

As at December 31, 2017

Loans & bonds
- current		894,136		705,109			755		—			—			1,600,000		252,789
- non-current		16,270		9,376			879		(184	)		—			26,341		4,162
Obligations under finance leases
- current		38		(38	)		—		9			24			33		5
- non-current		70		—			—		—			(24	)		46		7

Total liabilities from financing activities		910,514		714,447			1,634		(175	)		—			1,626,420		256,963

Corporate Information - Additional Information (Detail) $ / shares in Units, $ in Thousands										1 Months Ended			12 Months Ended
	Dec. 31, 2017 Associate JointVenture Subsidiaries shares	Dec. 31, 2016 CNY (¥)	Dec. 31, 2014 CNY (¥) shares	Dec. 31, 2013	Dec. 31, 2012	Apr. 04, 2012	Jan. 16, 2012 shares	Jan. 13, 2012 shares	Dec. 31, 2011	Nov. 30, 2017 CNY (¥)	Oct. 31, 2016	Sep. 30, 2014 CNY (¥)	Dec. 31, 2017 CNY (¥) Associate JointVenture Subsidiaries shares	Dec. 31, 2017 USD ($) Associate JointVenture Subsidiaries shares	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥) shares	Dec. 31, 2014 CNY (¥) shares	Dec. 31, 1994 $ / shares
Disclosure of Corporate Information [Line Items]
Number of indirectly owned subsidiaries \| Subsidiaries	33												33	33
Number of directly owned subsidiaries \| Subsidiaries	9												9	9
Number of joint ventures \| JointVenture	3												3	3
Number of associate \| Associate	1												1	1
Additional investment in subsidiaries													¥ 8,279,000	$ 1,308	¥ 9,076,000	¥ 22,499,000
Jining Yuchai Engine Company Limited [Member]
Disclosure of Corporate Information [Line Items]
Percentage of ownership interest transferred												70.00%
Consideration paid \| ¥												¥ 1.00
Irrevocable option to acquire \| ¥		¥ 250,000													¥ 250,000
Management agreement term																	One year
Management fee per annum \| ¥																	¥ 240,000
Management agreement term renewed											One more year
Jining Yuchai Engine Company Limited [Member] \| Guangxi Yulin Hotel Company Limited [Member]
Disclosure of Corporate Information [Line Items]
Loan tenure																	Two year
Jining Yuchai Engine Company Limited [Member] \| Guangxi Yulin Hotel Company Limited [Member] \| Top of range [Member]
Disclosure of Corporate Information [Line Items]
Principal loan amount \| ¥			¥ 70,000,000														¥ 70,000,000
Jining Yuchai Engine Company Limited [Member] \| Zhejiang Geely Holding Group Co Ltd [member]
Disclosure of Corporate Information [Line Items]
Percentage of ownership interest transferred to third party												30.00%
HL Global Enterprises Limited [Member]
Disclosure of Corporate Information [Line Items]
Ownership interest in subsidiary			50.20%	50.10%	50.10%	48.90%	48.10%		49.40%							50.20%
Number of preference shares transferred								24,189,170
Percentage of unconverted preference shares transfer to trustee								100.00%
Conversion of convertible preference shares into ordinary shares							24,189,170
Number of shares purchased in open market			465,000														465,000
Number of ordinary shares exercise to consolidation																10
Number of ordinary shares exercised into consolidation																1
Number of ordinary shares held upon completion of consolidation exercise																47,107,707
Percentage of voting power held in subsidiary	50.20%	50.20%
Yuchai [Member] \| Jining Yuchai Engine Company Limited [Member]
Disclosure of Corporate Information [Line Items]
Additional investment in subsidiaries \| ¥										¥ 250,000
Diesel Machinery (BVI) Limited [member] \| Special Share [member]
Disclosure of Corporate Information [Line Items]
Par value \| $ / shares																		$ 0.10
Foreign Shares of Yuchai [member]
Disclosure of Corporate Information [Line Items]
Number of shares owned by entity	361,420,150												361,420,150	361,420,150
Percentage of issued share capital held by group													76.41%	76.41%
Number of wholly owned subsidiaries													6	6
Guangxi Yuchai Machinery Group Company Limited [member]
Disclosure of Corporate Information [Line Items]
Percentage of issued share capital held by group													22.09%	22.09%
Guangxi Yuchai Machinery Monopoly Development Company Limited [Member]
Disclosure of Corporate Information [Line Items]
Number of wholly owned subsidiaries \| Subsidiaries													30	30
Ownership interest in subsidiary													54.90%	54.90%	54.90%
Guangxi Yuchai Accessories Manufacturing Company Limited [Member]
Disclosure of Corporate Information [Line Items]
Number of wholly owned subsidiaries \| Subsidiaries													1	1
Ownership interest in subsidiary													76.40%	76.40%	76.40%

Basis of Preparation and Accounting Policies - Additional Information (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥) km	Dec. 31, 2017 USD ($) km	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)	Feb. 28, 2018	Dec. 31, 2017 USD ($)	Jan. 01, 2017 CNY (¥)	Jan. 01, 2017 USD ($)
Disclosure of Summary of Significant Accounting Policies [Line items]
Convenience translation exchange rate per US$1.00					6.3294
Estimated useful lives of the investment properties	30 years	30 years
Research and development subsidies	¥ 60,817	$ 9,609	¥ 26,815
Percentage of shareholder interest	7.70%	7.70%
Expected change in trade and other receivables arising from change in measurement attribute, initial application of IFRS 9	¥ 137,300					$ 21,700
Expected change in equity arising from change in measurement attribute, initial application of IFRS 9	137,300					21,700
Selling and distribution expenses	1,815,853	$ 286,892	1,504,360	¥ 1,497,774
Revenue	16,222,442	2,563,030	13,664,840	13,733,437
Cost of sales	12,707,419	2,007,681	10,700,655	10,942,865
Expected change in retained earnings arising from change in measurement attribute, initial application of IFRS 15							¥ 83,900	$ 13,300
Other operating income	647,352	102,276	¥ 117,954	¥ 106,931
Warranty obligation [member]
Disclosure of Summary of Significant Accounting Policies [Line items]
Expected change in retained earnings arising from change in measurement attribute, initial application of IFRS 15							¥ (5,300)	$ (800)
Performance obligation [member]
Disclosure of Summary of Significant Accounting Policies [Line items]
Expected change in retained earnings arising from change in measurement attribute, initial application of IFRS 15	89,200					14,100
Increase (decrease) due to application of IFRS 15 [member] \| Warranty obligation [member]
Disclosure of Summary of Significant Accounting Policies [Line items]
Selling and distribution expenses	(195,900)	(31,000)
Revenue	(21,100)	(3,300)
Cost of sales	176,800	27,900
Provision for product warranty	(19,100)					(3,100)
Contract liability	21,100					$ 3,300
Increase (decrease) due to application of IFRS 15 [member] \| Performance obligation [member]
Disclosure of Summary of Significant Accounting Policies [Line items]
Other operating income	(115,200)	(18,200)
Reversal of income tax expense	26,000	4,100
IAS 18 [member] \| Performance obligation [member]
Disclosure of Summary of Significant Accounting Policies [Line items]
Gain on sale of intangible asset	¥ 115,200	$ 18,200
Bottom of range [Member]
Disclosure of Summary of Significant Accounting Policies [Line items]
Lease term	15 years	15 years
Bottom of range [Member] \| On-Road Applications Engines [member]
Disclosure of Summary of Significant Accounting Policies [Line items]
Warranty claim period	3 months	3 months
Warranty mileage	20,000	20,000
Bottom of range [Member] \| Other Applications Engines [member]
Disclosure of Summary of Significant Accounting Policies [Line items]
Warranty claim period	12 months	12 months
Top of range [Member]
Disclosure of Summary of Significant Accounting Policies [Line items]
Lease term	50 years	50 years
Top of range [Member] \| On-Road Applications Engines [member]
Disclosure of Summary of Significant Accounting Policies [Line items]
Warranty claim period	36 months	36 months
Warranty mileage	300,000	300,000
Top of range [Member] \| Other Applications Engines [member]
Disclosure of Summary of Significant Accounting Policies [Line items]
Warranty claim period	24 months	24 months

Basis of Preparation and Accounting Policies - Estimated Useful Life of Assets (Detail)	12 Months Ended
	Dec. 31, 2017
Freehold buildings [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Estimated useful life of Property, plant and equipment	50 years
Leasehold land, buildings and improvements [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Estimated useful life of Property, plant and equipment	Shorter of 15 to 50 years or lease term
Bottom of range [Member] \| Plant and machinery [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Estimated useful life of Property, plant and equipment	3 years
Bottom of range [Member] \| Office furniture, fittings and equipment [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Estimated useful life of Property, plant and equipment	3 years
Bottom of range [Member] \| Motor and transport vehicles [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Estimated useful life of Property, plant and equipment	3.5 years
Top of range [Member] \| Plant and machinery [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Estimated useful life of Property, plant and equipment	20 years
Top of range [Member] \| Office furniture, fittings and equipment [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Estimated useful life of Property, plant and equipment	20 years
Top of range [Member] \| Motor and transport vehicles [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Estimated useful life of Property, plant and equipment	15 years

Significant Accounting Judgments, Estimates and Assumptions - Additional Information (Detail) ¥ in Thousands, $ in Thousands	1 Months Ended	12 Months Ended
	Nov. 30, 2017	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 CNY (¥)
Disclosure of changes in accounting estimates [Line Items]
Carrying amounts of deferred tax assets		¥ 315,390		¥ 308,207	$ 49,829
Increase in profit if all unrecognized deferred tax asset were recognized		182,726	$ 28,869	189,589
Carrying amounts of allowance for doubtful accounts		43,775		54,634	6,916	$ 8,632	¥ 51,288
Carrying amounts of inventory provision		106,895		126,796	16,889
Provision of product warranty		¥ 290,306		238,850	45,866
Percentage of withholding tax		10.00%	10.00%
Provision for withholding tax payable		¥ 100,572		¥ 103,347	$ 15,890
Yuchai [Member] \| Jining Yuchai Engine Company Limited [Member]
Disclosure of changes in accounting estimates [Line Items]
Acquisition of equity interest	100.00%	100.00%	100.00%
Bottom of range [Member]
Disclosure of changes in accounting estimates [Line Items]
Cash flows derived from forecasts period		8 years	8 years
Top of range [Member]
Disclosure of changes in accounting estimates [Line Items]
Cash flows derived from forecasts period		15 years	15 years

Investments in Subsidiaries - Details of Significant Subsidiaries of the Group (Detail)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Guangxi Yuchai Machinery Company Limited [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation	People's Republic of China
Place of business	People's Republic of China
Group's effective equity interest	76.40%	76.40%
Guangxi Yuchai Machinery Monopoly Development Company Limited [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation	People's Republic of China
Place of business	People's Republic of China
Group's effective equity interest	54.90%	54.90%
Guangxi Yuchai Accessories Manufacturing Company Limited [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation	People's Republic of China
Place of business	People's Republic of China
Group's effective equity interest	76.40%	76.40%
Guangxi Yuchai Equipment Mould Company Limited [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation	People's Republic of China
Place of business	People's Republic of China
Group's effective equity interest	76.40%	76.40%
Guangxi Yulin Hotel Company Limited [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation	People's Republic of China
Place of business	People's Republic of China
Group's effective equity interest	76.40%	76.40%
Jining Yuchai Engine Company Limited [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation	People's Republic of China
Place of business	People's Republic of China
Group's effective equity interest	76.40%
Yuchai Remanufacturing Services Suzhou Co Ltd [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation	People's Republic of China
Place of business	People's Republic of China
Group's effective equity interest	76.40%	76.40%
HL Global Enterprises Limited [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation	Singapore
Place of business	Singapore
Group's effective equity interest	50.20%	50.20%

Investments in Subsidiaries - Details of Significant Subsidiaries of the Group (Parenthetical) (Detail) - Yuchai [Member] - Jining Yuchai Engine Company Limited [Member]	Dec. 31, 2017	Dec. 31, 2016	Sep. 30, 2014
Disclosure of subsidiaries [Line Items]
Percentage of equity interest disposed			70.00%
Percentage of control	100.00%	100.00%

Investments in Subsidiaries - Additional Information (Detail) ¥ in Thousands, $ in Thousands			1 Months Ended								12 Months Ended
	Nov. 22, 2017 CNY (¥)	Nov. 22, 2017 USD ($)	Nov. 30, 2017 CNY (¥)	Oct. 31, 2017 CNY (¥)	Jun. 30, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)	Nov. 30, 2016	Sep. 30, 2016 CNY (¥)	Oct. 31, 2015 CNY (¥)	Jul. 31, 2015 CNY (¥)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)	Dec. 31, 2017 USD ($)
Disclosure of subsidiaries [Line Items]
Cash and cash equivalents subject to local exchange control regulations						¥ 3,270,182					¥ 4,710,158		¥ 3,270,182		$ 744,171
Goodwill arising from acquisition written off													1,131
Additional investment in subsidiaries											¥ 8,279	$ 1,308	¥ 9,076	¥ 22,499
Yuchai [Member] \| Guangxi Yuchai Equipment Mould Company Limited [Member]
Disclosure of subsidiaries [Line Items]
Percentage of additional equity interests acquired									2.86%
Purchase consideration									¥ 4,200
Guangxi Yuchai Machinery Monopoly Development Company Limited [Member] \| Yunnan Yuchai Machinery Industry Company Limited [Member]
Disclosure of subsidiaries [Line Items]
Acquisition of equity interest										40.00%
Offsetting trade receivables										¥ 18,300
Guangxi Yuchai Machinery Monopoly Development Company Limited [Member] \| Sichuan Yuchai Machinery Industry Company Limited [Member]
Disclosure of subsidiaries [Line Items]
Acquisition of equity interest								47.53%
Additional investment in subsidiaries								¥ 8,900
Guangxi Yuchai Machinery Monopoly Development Company Limited [Member] \| Hunan Yuchai Machinery Industry Company Limited [Member]
Disclosure of subsidiaries [Line Items]
Acquisition of equity interest				49.00%
Additional investment in subsidiaries				¥ 6,700
Guangxi Yuchai Accessories Manufacturing Company Limited [Member] \| Guangxi Yuchai Crankshaft Company Limited [Member]
Disclosure of subsidiaries [Line Items]
Acquisition of equity interest					25.00%
Additional investment in subsidiaries					¥ 1,300
Jining Yuchai Engine Company Limited [Member] \| Yuchai [Member]
Disclosure of subsidiaries [Line Items]
Acquisition of equity interest			100.00%								100.00%	100.00%
Additional investment in subsidiaries			¥ 250
Percentage of ownership control prior to acquisition			100.00%
YC Europe Co. Limited [Member] \| Yuchai [Member]
Disclosure of subsidiaries [Line Items]
Percentage of additional equity interests acquired						32.50%							32.50%
Percentage of ownership interest in joint venture						67.50%	35.00%
HL Global Enterprises Limited [Member] \| LKN Investment International Pte. Ltd and Shanghai Hutai Real Estate Development Co. [Member]
Disclosure of subsidiaries [Line Items]
Cash consideration, disposal	¥ 395,000	$ 62,400

Investments in Subsidiaries - Subsidiary having Non-controlling Interests that are Material to the Group (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)	Dec. 31, 2017 USD ($)
Disclosure of subsidiaries [Line Items]
Accumulated balances of material NCI	¥ 2,631,714		¥ 2,301,978		$ 415,792
Profit allocated to material NCI	¥ 451,148	$ 71,278	¥ 207,871	¥ 168,212
Guangxi Yuchai Machinery Company Limited [Member]
Disclosure of subsidiaries [Line Items]
Proportion of equity interest held by NCI	23.60%	23.60%	23.60%	23.60%
Accumulated balances of material NCI	¥ 2,437,215		¥ 2,253,207		$ 385,063
Profit allocated to material NCI	290,497	$ 45,896	210,013	¥ 129,088
Dividends paid to material NCI	¥ 98,941	$ 15,632	¥ 83,677	¥ 100,412

Investments in Subsidiaries - Summarized Financial Information Including Goodwill on Acquisition and Consolidation Adjustment But Before Intercompany Eliminations of Subsidiaries with Material Non-controlling Interests (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2014 CNY (¥)
Summarized statement of financial position
Current assets	¥ 16,008,979		¥ 13,297,943		$ 2,529,304
Non-current assets, excluding goodwill	5,006,080		5,298,563		790,925
Goodwill	212,636		212,636		33,595	$ 33,595
Current liabilities	(9,405,204)		(8,025,874)		(1,485,955)
Non-current liabilities	(630,579)		(584,820)		(99,627)
Total equity	10,979,276		9,985,812	¥ 9,430,069	1,734,647		¥ 9,151,814
Attributable to NCI	2,631,714		2,301,978		415,792
Summarized statement of comprehensive income
Revenue	16,222,442	$ 2,563,030	13,664,840	13,733,437
Profit for the year, representing total comprehensive income for the year	1,328,547	209,901	760,002	540,997
Attributable to NCI	436,325	68,936	204,647	165,351
Summarized statement of cash flows
Operating	1,370,167	216,477	2,276,087	1,686,718
Investing	126,570	19,997	(572,031)	(25,496)
Financing	280,862	44,374	(1,553,986)	(485,535)
Guangxi Yuchai Machinery Company Limited [Member]
Summarized statement of financial position
Current assets	14,717,316		12,448,174		2,325,231
Non-current assets, excluding goodwill	4,693,931		4,876,773		741,608
Goodwill	212,636		212,636		33,595
Current liabilities	(9,344,836)		(7,957,306)		(1,476,417)
Non-current liabilities	(495,429)		(461,712)		(78,274)
Carrying value of net assets	9,783,618		9,118,565		1,545,743
Total equity	9,783,618		9,118,565		1,545,743
Attributable to NCI	2,437,215		2,253,207		$ 385,063
Summarized statement of comprehensive income
Revenue	16,165,245	2,553,993	13,598,487	13,671,931
Profit for the year, representing total comprehensive income for the year	1,045,330	165,155	726,379	547,216
Attributable to NCI	290,497	45,896	210,013	129,088
Summarized statement of cash flows
Operating	1,385,156	218,845	2,329,367	1,742,989
Investing	(165,817)	(26,198)	(293,477)	(33,515)
Financing	221,660	35,021	(1,697,173)	(659,691)
Net increase in cash and cash equivalents	¥ 1,440,999	$ 227,668	¥ 338,717	¥ 1,049,783

Investments in Subsidiaries - Assets and Liabilities and Cash Flow Effect of Disposal of Subsidiaries (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2015 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)
Disclosure of subsidiaries [Line Items]
Property, plant and equipment (Note 11)	¥ 3,824,018			$ 604,168	¥ 4,127,185
Inventories	2,572,745			406,475	1,663,879
Deferred taxation	315,390			49,829	308,207
Total assets	21,015,059			3,320,229	18,596,506
Payables and accruals	(7,624,496)			(1,204,616)	(6,981,815)
Provision for taxation	(46,716)			(7,381)	(47,667)
Deferred taxation	(116,468)			(18,401)	¥ (115,758)
Gain on disposal:
Gain (loss) on disposal of the subsidiaries (Note 8.2(b))	216,115	$ 34,145
Less: Retention sum receivables	(30,000)			(4,740)
Net cash inflow on disposal of the subsidiaries	341,602	53,971	¥ 170,703
Xiamen Yuchai Diesel Engines Company Limited [Member]
Disclosure of subsidiaries [Line Items]
Property, plant and equipment (Note 11)			66,597
Land use rights			17,661
Inventories			6,354
Trade receivables and other receivables			111,651
Deferred taxation			244
Cash and bank balances			18,797
Total assets			221,304
Payables and accruals			(17,161)
Provision for taxation			(996)
Carrying value of net assets			203,147
Gain on disposal:
Total consideration			189,500
Net assets derecognized			(203,147)
Gain (loss) on disposal of the subsidiaries (Note 8.2(b))			(13,647)
Cash and bank balances of the subsidiaries			(18,797)
Net cash inflow on disposal of the subsidiaries			¥ 170,703
LKN Investment International Pte. Ltd ("LKNII") and LKNII's wholly-owned subsidiary, Shanghai Hutai Real Estate Development Co., Ltd [Member]
Disclosure of subsidiaries [Line Items]
Property, plant and equipment (Note 11)	104,844			16,565
Trade receivables and other receivables	3,257			514
Cash and bank balances	9,153			1,446
Total assets	117,254			18,525
Payables and accruals	(3,737)			(590)
Provision for taxation	(44)			(7)
Deferred taxation	(588)			(93)
Carrying value of net assets	112,885			17,835
Gain on disposal:
Total consideration	(395,000)	(62,407)
Less: Cost of disposal	(47,532)	(7,510)
Total consideration less cost of disposal	347,468	54,897
Net assets derecognized	(112,885)			(17,835)
Realization of foreign translation reserves upon disposal	(18,468)	(2,917)
Gain (loss) on disposal of the subsidiaries (Note 8.2(b))	216,115	34,145
Total consideration less cost of disposal	347,468	54,897
Add: Transaction cost unpaid	33,287	5,260
Less: Retention sum receivables	(30,000)			$ (4,740)
Cash and bank balances of the subsidiaries	(9,153)	(1,446)
Net cash inflow on disposal of the subsidiaries	¥ 341,602	$ 53,971

Investment in Associates - Summarized Investment in Associates (Detail) - Associates [Member] ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)	Dec. 31, 2017 USD ($)
Disclosure of associates [Line Items]
Share of profit/(loss) of associates, net of tax	¥ (28)	$ (4)	¥ 456	¥ 245
Carrying amount of investment	¥ 2,185		¥ 3,836		$ 345

Investment in Associates - Details of Associates (Detail)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Sinjori Sdn Bhd [Member]
Disclosure of associates [Line Items]
Principal activities	Property investment and development
Place of incorporation	Malaysia
Place of business	Malaysia
Group's effective equity interest	14.00%	14.00%
Guangxi Yuchai Quan Xing Machinery Company Ltd [Member]
Disclosure of associates [Line Items]
Principal activities	Manufacture spare part and sales of auto spare part, diesel engine & spare part, metallic materials, generator & spare part, chemical products (exclude dangerous goods), lubricating oil
Place of incorporation	People's Republic of China
Place of business	People's Republic of China
Group's effective equity interest	15.30%	15.30%
Guangxi Yulin Yuchai Property Management Co Ltd [Member]
Disclosure of associates [Line Items]
Principal activities	Property management
Place of incorporation	People's Republic of China
Place of business	People's Republic of China
Group's effective equity interest		22.90%

Investment in Associates - Details of Associates (Parenthetical) (Detail) - 12 months ended Dec. 31, 2017 ¥ in Thousands, $ in Thousands	CNY (¥)	USD ($)
Disclosure of associates [Line Items]
Consideration for disposal of interest in associates	¥ 1,832	$ 289
Gain loss on disposal of associates	199	31
Associates [Member] \| State Holding Company Limited [Member]
Disclosure of associates [Line Items]
Consideration for disposal of interest in associates	1,832	289
Gain loss on disposal of associates	¥ 199	$ 31

Investment in Joint Ventures - Share of Results of Joint Ventures and Carrying Amount of Investment to Joint Ventures (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)	Dec. 31, 2017 USD ($)
Disclosure of joint ventures [Line Items]
Share of (loss)/profit of joint ventures, net of tax	¥ 10,082	$ 1,593	¥ (4,068)	¥ (2,936)
Carrying amount of the investment	196,102		176,351		$ 30,983
Y & C Engine Co., Ltd. [Member]
Disclosure of joint ventures [Line Items]
Share of (loss)/profit of joint ventures, net of tax	17,755	2,805	2,039	(8,978)
Carrying amount of the investment	122,235		169,064		19,312
Copthorne Hotel Qingdao Co Ltd [Member]
Disclosure of joint ventures [Line Items]
Share of (loss)/profit of joint ventures, net of tax			(4,465)	6,941
MTU Yuchai Power Co., Ltd [Member]
Disclosure of joint ventures [Line Items]
Share of (loss)/profit of joint ventures, net of tax	(8,487)	(1,341)
Carrying amount of the investment	66,513				10,509
Other Joint Ventures [Member]
Disclosure of joint ventures [Line Items]
Share of (loss)/profit of joint ventures, net of tax	814	$ 129	(1,642)	¥ (899)
Carrying amount of the investment	¥ 7,354		¥ 7,287		$ 1,162

Investment in Joint Ventures - Interest in Joint Ventures (Detail)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Copthorne Hotel Qingdao Co Ltd [Member]
Disclosure of joint ventures [Line Items]
Principal activities	Owns and operates a hotel in Qingdao, PRC
Place of incorporation	People's Republic of China
Percentage of interest held		30.10%
HL Heritage Sdn Bhd [Member]
Disclosure of joint ventures [Line Items]
Principal activities	Property development and property investment holdings
Place of incorporation	Malaysia
Percentage of interest held	30.10%	30.10%
Shanghai Hengshan Equatorial Hotel Management Co., Ltd [Member]
Disclosure of joint ventures [Line Items]
Principal activities	Hotel and property management
Place of incorporation	People's Republic of China
Place of business	People's Republic of China
Percentage of interest held	24.60%	24.60%
Y & C Engine Co., Ltd. [Member]
Disclosure of joint ventures [Line Items]
Principal activities	Manufacture and sale of heavy duty diesel engines, spare parts and after-sales services
Place of incorporation	People's Republic of China
Place of business	People's Republic of China
Percentage of interest held	34.40%	34.40%
Guangxi Yineng IOT Science and Technology Co Ltd [Member]
Disclosure of joint ventures [Line Items]
Principal activities	Design, development, management and marketing of an electronic operations management platform
Place of incorporation	People's Republic of China
Place of business	People's Republic of China
Percentage of interest held	15.30%	15.30%
MTU Yuchai Power Co., Ltd [Member]
Disclosure of joint ventures [Line Items]
Principal activities	Manufacture off-road diesel engines
Place of incorporation	People's Republic of China
Place of business	of China
Percentage of interest held	38.20%

Investment in Joint Ventures - Interest in Joint Ventures (Parenthetical) (Detail) - 12 months ended Dec. 31, 2017 ¥ in Millions, $ in Millions	CNY (¥)	USD ($)
MTU Yuchai Power Co., Ltd [Member]
Disclosure of joint ventures [Line Items]
Amount invested in joint venture	¥ 75.0	$ 11.8

Investment in Joint Ventures - Additional Information (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2014 CNY (¥)
Disclosure of joint ventures [Line Items]
Cash and cash equivalents	¥ 5,390,324		¥ 3,653,914	¥ 3,474,364	$ 851,633	$ 577,292	¥ 2,291,345
Restricted cash	54,809		36,000		8,659
Bills receivables	12,150		0		1,920
People's Republic of China [Member]
Disclosure of joint ventures [Line Items]
Cash and cash equivalents	67,238		26,437		10,623
Joint Ventures [Member]
Disclosure of joint ventures [Line Items]
Capital commitment	30,000	$ 4,740	10,982
Copthorne Hotel Qingdao Co Ltd [Member]
Disclosure of joint ventures [Line Items]
Reversal of impairment				¥ 21,900
Y & C Engine Co., Ltd. [Member]
Disclosure of joint ventures [Line Items]
Cash and cash equivalents	199,925		99,014
Y & C Engine Co., Ltd. [Member] \| Outstanding Bills Receivables Discounted With Banks by Retain Recourse Obligation [Member]
Disclosure of joint ventures [Line Items]
Share of outstanding bills receivables	0		1,440		0
Y & C Engine Co., Ltd. [Member] \| Outstanding Bills Receivables Endorsed To Suppliers by Retain Recourse Obligation [Member]
Disclosure of joint ventures [Line Items]
Share of outstanding bills receivables	23,288		5,113		3,679
Joint Ventures [Member]
Disclosure of joint ventures [Line Items]
Cash and cash equivalents	312,980		99,014		49,449
Restricted trade receivables	6,766		34,403		1,069
Restricted cash	¥ 80,452		¥ 18,119		$ 12,711

Investment in Joint Ventures - Summarized Financial Information of Joint Ventures and Reconciliation with Carrying Amount of Investment in Consolidated Financial Statements (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2014 CNY (¥)
Disclosure of joint ventures [Line Items]
Non-current assets	¥ 5,006,080		¥ 5,298,563		$ 790,925
Cash and bank balances	5,390,324		3,653,914	¥ 3,474,364	851,633	$ 577,292	¥ 2,291,345
Others	48,547		35,559		7,670
Total assets	21,015,059		18,596,506		3,320,229
Non-current liabilities	(630,579)		(584,820)		(99,627)
Others	(33)		(178)		(5)
Total liabilities	(10,035,783)		(8,610,694)		(1,585,582)
Equity	10,979,276		9,985,812	9,430,069	1,734,647		¥ 9,151,814
Investment in joint ventures	196,102		176,351		30,983
Revenue	16,222,442	$ 2,563,030	13,664,840	13,733,437
Depreciation and amortization	(444,181)	(70,177)	(478,160)	(469,435)
Interest expense	(96,072)	(15,179)	(75,131)	(112,987)
Profit/(loss) for the year, representing total comprehensive income for the year	1,328,547	209,901	760,002	540,997
Group's share of profit/(loss) for the year, representing the Group's share of total comprehensive income/(loss) for the year	10,082	$ 1,593	(4,068)	¥ (2,936)
Y & C Engine Co., Ltd. [Member]
Disclosure of joint ventures [Line Items]
Non-current assets	734,270		616,397
Cash and bank balances	199,925		99,014
Others	367,293		215,246
Total assets	1,301,488		930,657
Non-current liabilities	(13,543)		(60,382)
Interest-bearing loans and borrowings	(13,500)		(68,800)
Others	(842,765)		(425,777)
Total liabilities	(869,808)		(554,959)
Equity	¥ 431,680		¥ 375,698
Proportion of the Group's ownership	45.00%	45.00%	45.00%	45.00%
Group's share of net assets	¥ 194,256		¥ 169,064
Unrealized profit on transactions with joint venture	(72,021)
Investment in joint ventures	122,235		169,064		19,312
Revenue	1,331,823		553,878	¥ 356,697
Depreciation and amortization	(20,831)		(22,087)	(23,453)
Interest expense	(28,663)		(14,012)	(19,612)
Profit/(loss) for the year, representing total comprehensive income for the year	¥ 55,982		¥ 4,531	¥ (19,952)
Proportion of the Group's ownership	45.00%	45.00%	45.00%	45.00%
Group's share of profit	¥ 25,192		¥ 2,039	¥ (8,978)
Unrealized profit on transactions with joint venture	(7,437)
Group's share of profit/(loss) for the year, representing the Group's share of total comprehensive income/(loss) for the year	17,755	$ 2,805	2,039	(8,978)
Y & C Engine Co., Ltd. [Member] \| Significant Joint Ventures [Member]
Disclosure of joint ventures [Line Items]
Investment in joint ventures	122,235		169,064
Group's share of profit/(loss) for the year, representing the Group's share of total comprehensive income/(loss) for the year	17,755		¥ 2,039	¥ (8,978)
Copthorne Hotel Qingdao Co Ltd [Member]
Disclosure of joint ventures [Line Items]
Proportion of the Group's ownership			60.00%	60.00%
Revenue			¥ 3,674	¥ 50,971
Depreciation and amortization			(2,797)	(12,079)
Interest expense			(1,337)	(8,599)
Profit/(loss) for the year, representing total comprehensive income for the year			¥ (6,664)	¥ (20,311)
Proportion of the Group's ownership			60.00%	60.00%
Group's share of profit			¥ (3,998)	¥ (12,187)
Depreciation arising from fair value adjustment during purchase price allocation			(467)	(2,804)
Reversal of cumulative impairment loss				21,932
Group's share of profit/(loss) for the year, representing the Group's share of total comprehensive income/(loss) for the year			(4,465)	6,941
Copthorne Hotel Qingdao Co Ltd [Member] \| Significant Joint Ventures [Member]
Disclosure of joint ventures [Line Items]
Group's share of profit/(loss) for the year, representing the Group's share of total comprehensive income/(loss) for the year			(4,465)	6,941
Joint Ventures [Member]
Disclosure of joint ventures [Line Items]
Non-current assets	766,285		616,397		121,068
Cash and bank balances	312,980		99,014		49,449
Others	390,068		215,246		61,628
Total assets	1,469,333		930,657		232,144
Non-current liabilities	(13,543)		(60,382)		(2,140)
Interest-bearing loans and borrowings	(13,500)		(68,800)		(2,133)
Others	(877,585)		(425,777)		(138,652)
Total liabilities	(904,628)		(554,959)		(142,925)
Equity	564,705		375,698		89,219
Investment in joint ventures	196,102		176,351		30,983
Revenue	1,331,823	210,419	557,552	407,668
Depreciation and amortization	(21,058)	(3,327)	(24,884)	(35,532)
Interest expense	(29,006)	(4,583)	(15,349)	(28,211)
Profit/(loss) for the year, representing total comprehensive income for the year	39,009	6,163	(2,133)	(40,263)
Group's share of profit/(loss) for the year, representing the Group's share of total comprehensive income/(loss) for the year	10,082	1,593	(4,068)	(2,936)
Joint Ventures [Member] \| Significant Joint Ventures [Member]
Disclosure of joint ventures [Line Items]
Investment in joint ventures	188,748		169,064		29,821
Group's share of profit/(loss) for the year, representing the Group's share of total comprehensive income/(loss) for the year	9,268	1,464	(2,426)	(2,037)
Joint Ventures [Member] \| Other Joint Ventures [Member]
Disclosure of joint ventures [Line Items]
Investment in joint ventures	7,354		7,287		1,162
Group's share of profit/(loss) for the year, representing the Group's share of total comprehensive income/(loss) for the year	814	$ 129	¥ (1,642)	¥ (899)
MTU Yuchai Power Co., Ltd [Member]
Disclosure of joint ventures [Line Items]
Non-current assets	32,015
Cash and bank balances	113,055
Others	22,775
Total assets	167,845
Others	(34,820)
Total liabilities	(34,820)
Equity	¥ 133,025
Proportion of the Group's ownership	50.00%	50.00%
Group's share of net assets	¥ 66,513
Investment in joint ventures	66,513				$ 10,509
Depreciation and amortization	(227)
Interest expense	(343)
Profit/(loss) for the year, representing total comprehensive income for the year	¥ (16,973)
Proportion of the Group's ownership	50.00%	50.00%
Group's share of profit	¥ (8,487)
Group's share of profit/(loss) for the year, representing the Group's share of total comprehensive income/(loss) for the year	(8,487)	$ (1,341)
MTU Yuchai Power Co., Ltd [Member] \| Significant Joint Ventures [Member]
Disclosure of joint ventures [Line Items]
Investment in joint ventures	66,513
Group's share of profit/(loss) for the year, representing the Group's share of total comprehensive income/(loss) for the year	¥ (8,487)

Revenue - Summary of Revenue (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)
Revenue [Abstract]
Sale of goods	¥ 16,085,640	$ 2,541,416	¥ 13,542,568	¥ 13,634,395
Sale of development property	710	112
Revenue from hotel and restaurant operations	127,971	20,219	110,718	94,053
Rental income	8,121	1,283	11,554	4,989
Revenue	¥ 16,222,442	$ 2,563,030	¥ 13,664,840	¥ 13,733,437

The income arising in the course of an entity's ordinary activities. Income is increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in an increase in equity, other than those relating to contributions from equity participants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2016-01-13
-Paragraph 28
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/XBRL?type=IFRS&num=8&date=2016-03-30&anchor=para_28_a&doctype=Standard
-URIDate 2016-03-31

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2016-01-13
-Paragraph 23
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/XBRL?type=IFRS&num=8&date=2016-03-30&anchor=para_23_a&doctype=Standard
-URIDate 2016-03-31

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2016-01-13
-Paragraph 32
-URI http://eifrs.ifrs.org/eifrs/XBRL?type=IFRS&num=8&date=2016-03-30&anchor=para_32&doctype=Standard
-URIDate 2016-03-31

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2016-01-13
-Paragraph 33
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/XBRL?type=IFRS&num=8&date=2016-03-30&anchor=para_33_a&doctype=Standard
-URIDate 2016-03-31

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2016-01-13
-Paragraph 34
-URI http://eifrs.ifrs.org/eifrs/XBRL?type=IFRS&num=8&date=2016-03-30&anchor=para_34&doctype=Standard
-URIDate 2016-03-31

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 1
-IssueDate 2016-01-13
-Paragraph 82
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/XBRL?type=IAS&num=1&date=2016-03-30&anchor=para_82_a&doctype=Standard
-URIDate 2016-03-31

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Name IAS
-Number 1
-IssueDate 2016-01-13
-Paragraph 103
-URI http://eifrs.ifrs.org/eifrs/XBRL?type=IAS&num=1&date=2016-03-30&anchor=para_103&doctype=Standard
-URIDate 2016-03-31

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Note Expiry date 2018-01-01
-Name IAS
-Number 18
-IssueDate 2016-01-13
-Paragraph 35
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/XBRL?type=IAS&num=18&date=2016-03-30&anchor=para_35_b&doctype=Standard
-URIDate 2016-03-31

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Name IAS
-Number 1
-IssueDate 2016-01-13
-Paragraph 102
-URI http://eifrs.ifrs.org/eifrs/XBRL?type=IAS&num=1&date=2016-03-30&anchor=para_102&doctype=Standard
-URIDate 2016-03-31

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 12
-IssueDate 2016-01-13
-Paragraph B12
-Subparagraph b
-Clause v
-URI http://eifrs.ifrs.org/eifrs/XBRL?type=IFRS&num=12&date=2016-03-30&anchor=para_B12_b_v&doctype=Appendix&seq=2
-URIDate 2016-03-31

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Name IFRS
-Number 12
-IssueDate 2016-01-13
-Paragraph B10
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/XBRL?type=IFRS&num=12&date=2016-03-30&anchor=para_B10_b&doctype=Appendix&seq=2
-URIDate 2016-03-31

+ Details

Other Income and Expenses Recognized in Statement of Profit and Loss - Summary of Depreciation and Amortization (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)
Disclosure of income statement [Line Items]
Depreciation and amortization expenses	¥ 444,181	$ 70,177	¥ 478,160	¥ 469,435
Cost of sales [Member]
Disclosure of income statement [Line Items]
Depreciation and amortization expenses	307,102	48,520	322,289	319,962
Research and development expenses [Member]
Disclosure of income statement [Line Items]
Depreciation and amortization expenses	48,291	7,630	56,812	58,204
Selling, general and administrative expenses [Member]
Disclosure of income statement [Line Items]
Depreciation and amortization expenses	¥ 88,788	$ 14,027	¥ 99,059	¥ 91,269

Other Income and Expenses Recognized in Statement of Profit and Loss - Summary of Other Operating Income (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)
Profit or loss [Abstract]
Interest income	¥ 105,421	$ 16,656	¥ 56,983	¥ 41,314
Dividend income from held for trading investment	2,532	400	943
Gain on disposal of subsidiaries (Note 4)	216,115	34,145
Gain on disposal of joint venture (Note 22)	107,976	17,059
Gain on disposal of associate	199	31
Gain on disposal of property, plant and equipment	11,668	1,843
Gain on disposal of intangible assets	115,235	18,206
Gain on disposal of prepaid operating leases				2,511
Gain on liquidation of joint venture				348
Government grants	34,337	5,425	41,515	31,205
Fair value gain on held for trading investment	12,768	2,017
Fair value gain on foreign exchange forward contract (Note 19)				15,506
Write-back of trade and other payables	29	5		9
Write-back of allowance for anticipated losses on development properties				2,976
Bad debt recovered				4,257
Foreign exchange gain, net	30,943	4,889
Others	10,129	1,600	18,513	8,805
Other operating income	¥ 647,352	$ 102,276	¥ 117,954	¥ 106,931

Other Income and Expenses Recognized in Statement of Profit and Loss - Summary of Other Operating Expenses (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)
Profit or loss [Abstract]
Loss on disposal of property, plant and equipment			¥ 14,020	¥ 14,874
Loss on disposal of subsidiary				13,647
Loss on dilution of equity interest in joint venture				2,848
Foreign exchange loss, net			4,006	45,354
Fair value loss on held for trading investment			243	10,871
Fair value loss on foreign exchange forward contract			140
Goodwill written off			1,131
Others	¥ 22,719	$ 3,589	3,059
Other operating expenses	¥ 22,719	$ 3,589	¥ 22,599	¥ 87,594

Other Income and Expenses Recognized in Statement of Profit and Loss - Summary of Finance Costs (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)
Profit or loss [Abstract]
Bank term loans	¥ 53,888	$ 8,514	¥ 34,477	¥ 57,212
Corporate bonds			27,581	54,116
Bills discounting	42,179	6,664	13,068	1,651
Bank charges	4,367	690	4,552	3,364
Finance lease	5	1	5	8
Finance costs	¥ 100,439	$ 15,869	¥ 79,683	¥ 116,351

Other Income and Expenses Recognized in Statement of Profit and Loss - Summary of Staff Costs (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)
Profit or loss [Abstract]
Wages and salaries	¥ 1,158,320	$ 183,006	¥ 922,847	¥ 839,288
Contribution to defined contribution plans	258,190	40,792	275,703	297,926
Executive bonuses	59,908	9,465	44,921	32,190
Staff welfare	76,392	12,069	81,223	73,908
Staff severance cost	107,732	17,021	12,864	8,385
Cost of share-based payment	1,592	252	5,301	10,275
Others	1,870	295	20,340	9,062
Staff costs	¥ 1,664,004	$ 262,900	¥ 1,363,199	¥ 1,271,034

Income Tax Expense - Summary of Income Tax Expense (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)
Current income tax
Current year	¥ 197,264	$ 31,167	¥ 104,149	¥ 104,584
(Over)/under provision in respect of prior years	(2,867)	(453)	7,175	(47)
Deferred tax
Movement in temporary differences	25,770	4,071	48,946	72,281
Consolidated income tax expense reported in the statement of profit or loss	¥ 220,167	$ 34,785	¥ 160,270	¥ 176,818

Disclosure of finance lease and operating lease by lessee [Line Items]

The aggregate amount included in the determination of profit (loss) for the period in respect of current tax and deferred tax that relate to continuing operations. [Refer: Continuing operations [member]; Current tax expense (income); Deferred tax expense (income)]

+ References + Details

Income Tax Expense - Additional Information (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015	Dec. 31, 2017 USD ($)
Disclosure of Income Tax [Line items]
Applicable income tax rate	15.00%	15.00%	15.00%
Percentage of withholding tax	10.00%
Deferred tax liability for withholding tax payable	¥ 100,572	¥ 103,347		$ 15,890
Unrecognized deferred tax liability relating to undistributed earnings	¥ 228,008	¥ 212,176		$ 36,024
Top of range [Member]
Disclosure of Income Tax [Line items]
Unrecognized tax losses expiration period for subsidiaries that have a history of losses	5 years

Income Tax Expense - Reconciliation of Income Tax Expense (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)
Reconciliation of accounting profit multiplied by applicable tax rates [Abstract]
Accounting profit before tax	¥ 1,625,237	$ 256,776	¥ 883,878	¥ 686,138
Computed tax expense of 15%	243,786	38,517	132,582	102,921
Adjustments resulting from:
Non-deductible expenses	21,982	3,473	7,039	9,815
Tax-exempt income	(58,324)	(9,215)	(178)	(5,574)
Utilization of deferred tax benefits previously not recognized	(7,374)	(1,165)	(3,157)	(2,001)
Deferred tax benefits not recognized	8,084	1,277	9,045	61,299
Tax credits for research and development expense	(34,428)	(5,439)	(34,482)	(27,087)
Tax rate differential	21,061	3,328	25,321	24,249
(Over)/under provision in respect of previous years current tax	(2,867)	(453)	7,175	(47)
Withholding tax expense	29,447	4,652	16,925	13,126
Others	(1,200)	(190)		117
Consolidated income tax expense reported in the statement of profit or loss	¥ 220,167	$ 34,785	¥ 160,270	¥ 176,818

Income Tax Expense - Summary of Deferred Tax (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)	Dec. 31, 2017 USD ($)
Disclosure of deferred tax assets and liabilities [Line Items]
Deferred tax liabilities	¥ (116,468)		¥ (115,758)		$ (18,401)
Deferred tax assets	315,390		308,207		49,829
Reconciliation of deferred tax (expense) income	(25,770)	$ (4,071)	(48,946)	¥ (72,281)
Accelerated depreciation [Member]
Disclosure of deferred tax assets and liabilities [Line Items]
Deferred tax liabilities	(15,122)		(10,521)		(2,389)
Reconciliation of deferred tax (expense) income	(4,601)	(727)	373	(10,852)
Unremitted earnings from overseas source income [Member]
Disclosure of deferred tax assets and liabilities [Line Items]
Deferred tax liabilities			(437)
Reconciliation of deferred tax (expense) income			(25)
Interest receivable [Member]
Disclosure of deferred tax assets and liabilities [Line Items]
Deferred tax liabilities	(774)		(1,453)		(122)
Reconciliation of deferred tax (expense) income	679	107	(1,471)
Derivatives not designated as hedges - foreign exchange forward contract [Member]
Disclosure of deferred tax assets and liabilities [Line Items]
Reconciliation of deferred tax (expense) income			2,326	(2,326)
PRC withholding tax on dividend income [Member]
Disclosure of deferred tax assets and liabilities [Line Items]
Deferred tax liabilities	(100,572)		(103,347)		(15,890)
Reconciliation of deferred tax (expense) income	(29,031)	(4,587)	(16,628)	(12,549)
Deferred income tax liabilities [Member]
Disclosure of deferred tax assets and liabilities [Line Items]
Reconciliation of deferred tax (expense) income	(32,953)	(5,207)	(15,425)	(25,727)
Impairment of property, plant and equipment [Member]
Disclosure of deferred tax assets and liabilities [Line Items]
Deferred tax assets	12,319		2,876		1,946
Reconciliation of deferred tax (expense) income	9,443	1,492	(9,005)	409
Write-down of inventories [Member]
Disclosure of deferred tax assets and liabilities [Line Items]
Deferred tax assets	17,493		21,209		2,764
Reconciliation of deferred tax (expense) income	(3,716)	(587)	(4,421)	(3,867)
Allowance for doubtful account receivables [Member]
Disclosure of deferred tax assets and liabilities [Line Items]
Deferred tax assets	7,376		9,340		1,165
Reconciliation of deferred tax (expense) income	(1,964)	(310)	7,196	(3,361)
Accruals [Member]
Disclosure of deferred tax assets and liabilities [Line Items]
Deferred tax assets	204,730		185,952		32,346
Reconciliation of deferred tax (expense) income	18,778	2,967	(46,350)	17,253
Deferred income [Member]
Disclosure of deferred tax assets and liabilities [Line Items]
Deferred tax assets	51,679		70,931		8,165
Reconciliation of deferred tax (expense) income	(19,252)	(3,042)	10,045	(44,232)
Write down of intangible asset [Member]
Disclosure of deferred tax assets and liabilities [Line Items]
Reconciliation of deferred tax (expense) income				(15,000)
Others [Member]
Disclosure of deferred tax assets and liabilities [Line Items]
Deferred tax assets	21,793		17,899		$ 3,443
Reconciliation of deferred tax (expense) income	3,894	616	9,014	2,244
Deferred Tax Asset [Member]
Disclosure of deferred tax assets and liabilities [Line Items]
Reconciliation of deferred tax (expense) income	¥ 7,183	$ 1,136	¥ (33,521)	¥ (46,554)

Income Tax Expense - Summary of Deferred Tax (Parenthetical) (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)
Disclosure of deferred tax assets and liabilities [Line Items]
Beginning balance	¥ (192,449)
Ending balance	(198,922)	$ (31,428)	¥ (192,449)
PRC withholding tax on dividend income [Member]
Disclosure of deferred tax assets and liabilities [Line Items]
Beginning balance	(103,347)	(16,328)	(113,805)
Provision made to consolidated statement of profit or loss	(29,031)	(4,587)	(16,628)
Utilization	31,806	5,025	27,107
Translation differences			(21)
Ending balance	¥ (100,572)	$ (15,890)	¥ (103,347)

Income Tax Expense - Classification of the Group's Net Deferred Tax Assets (Detail) ¥ in Thousands, $ in Thousands	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)
Deferred tax assets and liabilities [Abstract]
Deferred tax assets	¥ 315,390	$ 49,829	¥ 308,207
Deferred tax liabilities	(116,468)	(18,401)	(115,758)
Net deferred tax assets	¥ 198,922	$ 31,428	¥ 192,449

Income Tax Expense - Deferred Tax Assets That Have Not Been Recognized (Detail) ¥ in Thousands, $ in Thousands	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)
Disclosure of temporary difference, unused tax losses and unused tax credits [Abstract]
Unutilized tax losses	¥ 479,410	$ 75,743	¥ 515,207
Unutilized capital allowances and investment allowances	107,266	16,947	106,781
Other unrecognized temporary differences relating to provisions and deferred grants	230,269	36,381	224,087
Deferred tax assets have not been recognised	¥ 816,945	$ 129,071	¥ 846,075

Earning Per Share - Summary of Earnings Per Share (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥) shares	Dec. 31, 2017 USD ($) shares	Dec. 31, 2016 CNY (¥) shares	Dec. 31, 2015 CNY (¥) shares
Earnings per share [Abstract]
Profit attributable to ordinary equity holders of the parent	¥ 953,922	$ 150,713	¥ 515,737	¥ 341,108
Weighted average number of ordinary shares for basic earnings per share calculations	40,764,569	40,764,569	40,016,808	38,712,282
Diluted effect of share options	0	0	0	0
Weighted average number of ordinary shares adjusted for effect of dilution	40,764,569	40,764,569	40,016,808	38,712,282

Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	¥ 4,127,185
Charge for the year	431,567	$ 68,184	¥ 465,093	¥ 456,002
Impairment loss	20,845	3,293	3,297	2,873
Ending balance	3,824,018	604,168	4,127,185
Cost [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	8,058,169		7,914,527
Additions	261,433		284,993
Acquisition as subsidiary			29
Disposal of subsidiary	(155,850)
Disposals	(22,573)		(141,582)
Transfers			(381)
Write-off	(73,757)		(5)
Translation difference	4,459		588
Ending balance	8,071,881		8,058,169	7,914,527
Accumulated depreciation, amortization and impairment [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	3,930,984		3,584,983
Charge for the year	431,567		465,093
Disposal of subsidiary	(51,006)
Disposals	(18,601)		(121,857)
Transfers			(24)
Write-off	(68,075)
Impairment loss	20,845		3,297
Translation difference	2,149		(508)
Ending balance	4,247,863		3,930,984	3,584,983
Freehold land [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	13,263
Ending balance	13,509	2,134	13,263
Freehold land [Member] \| Cost [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	13,730		13,301
Translation difference	263		429
Ending balance	13,993		13,730	13,301
Freehold land [Member] \| Accumulated depreciation, amortization and impairment [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	467		460
Translation difference	17		7
Ending balance	484		467	460
Leasehold land, buildings and improvements [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	1,709,360
Ending balance	1,631,418	257,752	1,709,360
Leasehold land, buildings and improvements [Member] \| Cost [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	2,351,646		2,307,160
Additions	1,109		23,621
Disposal of subsidiary	(107,632)
Disposals	(3,310)		(16,492)
Transfers	81,486		37,001
Write-off	(2,385)
Translation difference	1,954		356
Ending balance	2,322,868		2,351,646	2,307,160
Leasehold land, buildings and improvements [Member] \| Accumulated depreciation, amortization and impairment [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	642,286		572,857
Charge for the year	78,347		78,504
Disposal of subsidiary	(26,031)
Disposals	(1,879)		(8,720)
Transfers			(24)
Write-off	(1,377)
Translation difference	104		(331)
Ending balance	691,450		642,286	572,857
Construction in progress [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	336,151
Ending balance	280,041	44,245	336,151
Construction in progress [Member] \| Cost [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	336,151		328,117
Additions	226,977		232,474
Transfers	(280,358)		(224,440)
Write-off	(1,674)
Ending balance	281,096		336,151	328,117
Construction in progress [Member] \| Accumulated depreciation, amortization and impairment [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Impairment loss	1,055
Ending balance	1,055
Plant and machinery [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	1,960,557
Ending balance	1,798,122	284,091	1,960,557
Plant and machinery [Member] \| Cost [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	5,049,756		4,969,820
Additions	7,464		8,514
Disposal of subsidiary	(35,490)
Disposals	(10,064)		(114,861)
Transfers	198,872		186,620
Write-off	(53,792)
Translation difference	88		(337)
Ending balance	5,156,834		5,049,756	4,969,820
Plant and machinery [Member] \| Accumulated depreciation, amortization and impairment [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	3,089,199		2,831,362
Charge for the year	325,979		359,046
Disposal of subsidiary	(15,040)
Disposals	(10,191)		(104,346)
Write-off	(51,087)
Impairment loss	19,790		3,297
Translation difference	62		(160)
Ending balance	3,358,712		3,089,199	2,831,362
Office furniture, fittings and equipment [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	67,630
Ending balance	58,428	9,231	67,630
Office furniture, fittings and equipment [Member] \| Cost [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	192,461		181,448
Additions	16,763		17,757
Acquisition as subsidiary			29
Disposal of subsidiary	(12,473)
Disposals	(3,718)		(6,966)
Transfers			142
Write-off	(15,307)		(5)
Translation difference	2,228		56
Ending balance	179,954		192,461	181,448
Office furniture, fittings and equipment [Member] \| Accumulated depreciation, amortization and impairment [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	124,831		110,175
Charge for the year	21,202		21,248
Disposal of subsidiary	(9,695)
Disposals	(1,798)		(6,514)
Write-off	(15,012)
Translation difference	1,998		(78)
Ending balance	121,526		124,831	110,175
Motor and transport vehicles [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	40,224
Ending balance	42,500	$ 6,715	40,224
Motor and transport vehicles [Member] \| Cost [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	114,425		114,681
Additions	9,120		2,627
Disposal of subsidiary	(255)
Disposals	(5,481)		(3,263)
Transfers			296
Write-off	(599)
Translation difference	(74)		84
Ending balance	117,136		114,425	114,681
Motor and transport vehicles [Member] \| Accumulated depreciation, amortization and impairment [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	74,201		70,129
Charge for the year	6,039		6,295
Disposal of subsidiary	(240)
Disposals	(4,733)		(2,277)
Write-off	(599)
Translation difference	(32)		54
Ending balance	¥ 74,636		¥ 74,201	¥ 70,129

Property, plant and equipment - Additional Information (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)	Dec. 31, 2017 USD ($)
Disclosure of detailed information about property, plant and equipment [Abstract]
Impairment loss	¥ 20,845	$ 3,293	¥ 3,297	¥ 2,873
Property, plant and equipment pledged to secure bank facilities	82,710		84,360		$ 13,068
Carrying value of property, plant and equipment held under finance leases	96		144		$ 15
Additions of property, plant and equipment under finance leases	¥ 0	$ 0	¥ 86

Investment Property - Summary of Investment Property (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)
Disclosure of detailed information about investment property [Line Items]
Beginning balance	¥ 7,298
Charge for the year	248	$ 39	¥ 248
Ending balance	7,434	1,174	7,298
Consolidated statements of profit or loss:
Direct operating expenses (including repairs, maintenance and depreciation expense) arising from the rental generating property	(508)	(80)	(571)
Fair value [Member]
Disclosure of detailed information about investment property [Line Items]
Beginning balance	10,149
Ending balance	10,557	1,668	10,149
Cost [Member]
Disclosure of detailed information about investment property [Line Items]
Beginning balance	31,776	5,020	31,323
Translation difference	1,169	185	453
Ending balance	32,944	5,205	31,776
Accumulated depreciation, amortization and impairment [Member]
Disclosure of detailed information about investment property [Line Items]
Beginning balance	24,478	3,867	23,886
Charge for the year	248	39	248
Translation difference	784	125	344
Ending balance	¥ 25,510	$ 4,031	¥ 24,478

Investment Property - Fair Value Measurement of Investment Property (Detail) - Market comparison and cost method [Member]	12 Months Ended
	Dec. 31, 2017 ¥ / ft² $ / ft²	Dec. 31, 2016 ¥ / ft²
Disclosure of significant unobservable inputs used in fair value measurement of assets [Line Items]
Valuation techniques	Market comparison and cost method	Market comparison and cost method
Unobservable input	Comparable price: - Land: RMB 24 to RMB 34 (US$4 to US$5) per square foot - Retail: RMB 352 to RMB 859 (US$56 to US$139) per square foot	Comparable price: - Land: RMB 24 to RMB 34 per square foot - Retail: RMB 337 to RMB 847 per square foot
Inter-relationship between key unobservable inputs and fair value measurement	The estimated fair value increases with higher comparable price	The estimated fair value increases with higher comparable price
Renminbi [Member] \| Land [Member] \| Bottom of range [Member]
Disclosure of significant unobservable inputs used in fair value measurement of assets [Line Items]
Comparable price per square foot \| ¥ / ft²	24	24
Renminbi [Member] \| Land [Member] \| Top of range [Member]
Disclosure of significant unobservable inputs used in fair value measurement of assets [Line Items]
Comparable price per square foot \| ¥ / ft²	34	34
Renminbi [Member] \| Retail [Member] \| Bottom of range [Member]
Disclosure of significant unobservable inputs used in fair value measurement of assets [Line Items]
Comparable price per square foot \| ¥ / ft²	352	337
Renminbi [Member] \| Retail [Member] \| Top of range [Member]
Disclosure of significant unobservable inputs used in fair value measurement of assets [Line Items]
Comparable price per square foot \| ¥ / ft²	859	847
USD [Member] \| Land [Member] \| Bottom of range [Member]
Disclosure of significant unobservable inputs used in fair value measurement of assets [Line Items]
Comparable price per square foot \| $ / ft²	4
USD [Member] \| Land [Member] \| Top of range [Member]
Disclosure of significant unobservable inputs used in fair value measurement of assets [Line Items]
Comparable price per square foot \| $ / ft²	5
USD [Member] \| Retail [Member] \| Bottom of range [Member]
Disclosure of significant unobservable inputs used in fair value measurement of assets [Line Items]
Comparable price per square foot \| $ / ft²	56
USD [Member] \| Retail [Member] \| Top of range [Member]
Disclosure of significant unobservable inputs used in fair value measurement of assets [Line Items]
Comparable price per square foot \| $ / ft²	139

Prepaid Operating Leases - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)
Disclosure of detailed information about arrangements involving legal form of lease [Line Items]
Prepaid operating leases pledged to secure bank facilities	¥ 0	$ 0	¥ 71,022,000
Bottom of range [Member]
Disclosure of detailed information about arrangements involving legal form of lease [Line Items]
Land use rights terms	15 years
Top of range [Member]
Disclosure of detailed information about arrangements involving legal form of lease [Line Items]
Land use rights terms	50 years

Prepaid Operating Leases - Summary of Prepaid Operating Leases (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)	Dec. 31, 2017 USD ($)
Disclosure of detailed information about arrangements involving legal form of lease [Line Items]
Beginning balance	¥ 392,182
Current	12,546		¥ 12,546		$ 1,982
Charge for the year	12,366	$ 1,954	12,819	¥ 13,433
Non-current	367,270		379,636		$ 58,026
Ending balance	379,816	60,008	392,182
Cost [Member]
Disclosure of detailed information about arrangements involving legal form of lease [Line Items]
Beginning balance	529,577	83,669	529,577
Ending balance	0	0	529,577	529,577
Accumulated amortization [Member]
Disclosure of detailed information about arrangements involving legal form of lease [Line Items]
Beginning balance	137,395	21,707	124,576
Charge for the year	12,366	1,954	12,819
Ending balance	¥ 149,761	$ 23,661	¥ 137,395	¥ 124,576

Goodwill - Summary of Goodwill (Detail) ¥ in Thousands, $ in Thousands	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2016 USD ($)
Disclosure of reconciliation of changes in goodwill [Line Items]
Beginning Balance	¥ 212,636	$ 33,595
Ending Balance	212,636	33,595	¥ 212,636	$ 33,595
Cost [Member]
Disclosure of reconciliation of changes in goodwill [Line Items]
Beginning Balance	218,311	34,492	218,311	34,492
Ending Balance	218,311	34,492	218,311	34,492
Accumulated impairment [Member]
Disclosure of reconciliation of changes in goodwill [Line Items]
Beginning Balance	5,675	897	5,675	897
Ending Balance	¥ 5,675	$ 897	¥ 5,675	$ 897

Goodwill - Carrying Amount of Goodwill Allocated to Cash-generating Unit (Detail) ¥ in Thousands, $ in Thousands	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2016 USD ($)
Disclosure of reconciliation of changes in goodwill [Line Items]
Goodwill	¥ 212,636	$ 33,595	¥ 212,636	$ 33,595
Guangxi Yuchai Machinery Company Limited [Member]
Disclosure of reconciliation of changes in goodwill [Line Items]
Goodwill	¥ 212,636	$ 33,595	¥ 212,636

Goodwill - Additional Information (Detail) - CNY (¥)	12 Months Ended
Goodwill - Additional Information (Detail) - CNY (¥)	Dec. 31, 2017	Dec. 31, 2016
Disclosure of information for cash-generating units [Line Items]
Impairment on goodwill		¥ 1,131,000
Long term rates used to extrapolate the budget	6.50%	6.50%
Percentage decrease in profit from operation that would result in an impairment	2.37%	11.63%
Pre-tax discount rate that would result in an impairment	14.82%	12.52%
Long term growth rate that would result in an impairment	2.98%	5.32%
Guangxi Yuchai Machinery Company Limited [Member]
Disclosure of information for cash-generating units [Line Items]
Pre-tax discount rate applied to cash flow projection	12.84%	11.73%
Impairment on goodwill	¥ 0

Intangible Assets - Summary of Intangible Assets (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)
Disclosure of detailed information about intangible assets [Line Items]
Beginning balance	¥ 81,826,000
Charge to consolidated statement of profit or loss	40,000,000	$ 6,320	¥ 0	¥ 26,700,000
Ending balance	10,122,000	$ 1,599	81,826,000
Cost [Member]
Disclosure of detailed information about intangible assets [Line Items]
Beginning balance			168,526,000
Disposal	(31,704,000)
Ending balance	136,822,000			168,526,000
Accumulated impairment [Member]
Disclosure of detailed information about intangible assets [Line Items]
Beginning balance			¥ 86,700,000
Charge to consolidated statement of profit or loss	40,000,000
Ending balance	¥ 126,700,000			¥ 86,700,000

Intangible Assets - Additional Information (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)	Dec. 31, 2014 CNY (¥)	Dec. 31, 2017 USD ($)
Disclosure of detailed information about intangible assets [Line Items]
Intangible asset, carrying amount	¥ 10,122,000		¥ 81,826,000			$ 1,599
Impairment charge	¥ 40,000,000	$ 6,320	¥ 0	¥ 26,700,000
Projected cash flows forecast period	10 years	10 years	15 years
Projected cash flows forecast period for growth rate	6 years	6 years	5 years
Revenue growth rate	6.50%		6.50%			6.50%
Later Than One Year And Not Later Than Fifteen Year [member]
Disclosure of detailed information about intangible assets [Line Items]
Pre-tax discount rate	13.69%					13.69%
Later Than One Year And Not Later Than Ten Year [Member]
Disclosure of detailed information about intangible assets [Line Items]
Pre-tax discount rate			12.98%
Sixth Year [Member]
Disclosure of detailed information about intangible assets [Line Items]
Revenue growth rate	15.60%		6.70%			15.60%
Later than six years and not later than fifteen years [Member]
Disclosure of detailed information about intangible assets [Line Items]
Revenue growth rate	0.00%		0.00%			0.00%
Technology development cost [member]
Disclosure of detailed information about intangible assets [Line Items]
Impairment charge				¥ 26,700,000	¥ 60,000,000
Jining Yuchai Engine Company Limited [Member] \| One Percent Increase in Discount Rate [Member]
Disclosure of detailed information about intangible assets [Line Items]
Impairment charge	¥ 6,731,000	$ 1,063	¥ 2,443,000
Jining Yuchai Engine Company Limited [Member] \| Technology development cost [member]
Disclosure of detailed information about intangible assets [Line Items]
Intangible asset, carrying amount	10,122,000		¥ 50,122,000			$ 1,599
Impairment charge	¥ 40,000,000	$ 6,320
Jining Yuchai Engine Company Limited [Member] \| Technology development cost [member] \| Bottom of range [Member]
Disclosure of detailed information about intangible assets [Line Items]
Expected useful life of intangible assets	10 years	10 years
Jining Yuchai Engine Company Limited [Member] \| Technology development cost [member] \| Top of range [Member]
Disclosure of detailed information about intangible assets [Line Items]
Expected useful life of intangible assets	15 years	15 years

Other Financial Liabilities - Summary of Other Financial Liabilities (Detail) ¥ in Thousands, $ in Thousands	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)
Subclassifications of assets, liabilities and equities [Abstract]
Derivative not designated as hedges - foreign exchange forward contract			¥ 140
Finance lease liabilities (Note 31)	¥ 79	$ 12	108
Total	79	12	248
Current	33	5	178
Non-current	46	7	70
Total	¥ 79	$ 12	¥ 248

Other Financial Liabilities - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2017 SGD ($)	Dec. 31, 2017 USD ($)	Dec. 20, 2017	Mar. 31, 2017 USD ($)	Mar. 30, 2017 SGD ($)	Dec. 21, 2016 USD ($)	May 22, 2015 SGD ($)
DBS Bank Ltd [Member]
Disclosure of detailed information about borrowings [Line Items]
Credit facility maturity period	Three years
DBS Bank Ltd [Member] \| Top of range [Member]
Disclosure of detailed information about borrowings [Line Items]
Credit facility with bank							$ 30,000,000
Consolidated tangible net worth ratio	100.00%	100.00%
DBS Bank Ltd [Member] \| Bottom of range [Member]
Disclosure of detailed information about borrowings [Line Items]
Consolidated tangible net worth		$ 350,000,000
Credit facility with BOTM Singapore Branch [Member]
Disclosure of detailed information about borrowings [Line Items]
Credit facility maturity period	Three years
Refinancing of unsecured multi-currency revolving credit facility					$ 30,000,000
Credit facility with BOTM Singapore Branch [Member] \| Top of range [Member]
Disclosure of detailed information about borrowings [Line Items]
Consolidated tangible net worth ratio	200.00%	200.00%
Facility limit	$ 30,000,000
Credit facility with BOTM Singapore Branch [Member] \| Bottom of range [Member]
Disclosure of detailed information about borrowings [Line Items]
Consolidated tangible net worth		$ 120,000,000
Sumitomo branch [Member]
Disclosure of detailed information about borrowings [Line Items]
Credit facility maturity period	Three years
Refinancing of unsecured multi-currency revolving credit facility				$ 30,000,000
Sumitomo branch [Member] \| Top of range [Member]
Disclosure of detailed information about borrowings [Line Items]
Consolidated tangible net worth ratio	200.00%	200.00%
Facility limit		$ 30,000,000
Sumitomo branch [Member] \| Bottom of range [Member]
Disclosure of detailed information about borrowings [Line Items]
Consolidated tangible net worth		$ 200,000,000
Forward contract [Member]
Disclosure of detailed information about borrowings [Line Items]
Non-deliverable forward foreign exchange contract						$ 15,300,000
Exchange rate			7.0439

Other Financial Liabilities - Summary of Interest-bearing Loans and Borrowings (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2017 USD ($)
Disclosure of detailed information about borrowings [Line Items]
Current borrowings	¥ 1,600,000	¥ 894,136	$ 252,789
Non-current borrowings	26,341	16,270	4,162
Renminbi [Member]
Disclosure of detailed information about borrowings [Line Items]
Current borrowings	1,600,000	753,750	252,789
USD [Member]
Disclosure of detailed information about borrowings [Line Items]
Current borrowings		104,055
Singapore Dollar [Member]
Disclosure of detailed information about borrowings [Line Items]
Current borrowings		33,616
Non-current borrowings	14,656		2,316
Malaysian Ringgits [Member]
Disclosure of detailed information about borrowings [Line Items]
Current borrowings		2,715
Non-current borrowings	¥ 11,685	¥ 16,270	$ 1,846
Current borrowings [Member] \| Renminbi [Member]
Disclosure of detailed information about borrowings [Line Items]
Effective interest rate	3.99%	3.94%	3.99%
Maturity	2018	2017
Current borrowings [Member] \| USD [Member]
Disclosure of detailed information about borrowings [Line Items]
Effective interest rate		3.70%
Maturity		2017
Current borrowings [Member] \| Singapore Dollar [Member]
Disclosure of detailed information about borrowings [Line Items]
Effective interest rate	1.88%	1.81%	1.88%
Maturity	2020	2017
Current borrowings [Member] \| Malaysian Ringgits [Member]
Disclosure of detailed information about borrowings [Line Items]
Effective interest rate		5.90%
Maturity		2017
Non-current borrowings [Member] \| Malaysian Ringgits [Member]
Disclosure of detailed information about borrowings [Line Items]
Effective interest rate	5.95%	5.90%	5.95%
Maturity	2020	2020
Bank of Tokyo-Mitsubishi, UFJ Ltd [Member] \| Singapore Dollar [Member]
Disclosure of detailed information about borrowings [Line Items]
Current borrowings		¥ 16,808
Non-current borrowings	¥ 14,656
Sumitomo Mitsui Banking Corporation [Member] \| Singapore Dollar [Member]
Disclosure of detailed information about borrowings [Line Items]
Current borrowings		¥ 16,808

Other Financial Liabilities - Summary of Interest-bearing Loans and Borrowings (Parenthetical) (Detail) - Singapore Dollar [Member]	Dec. 31, 2017 SGD ($)	Dec. 31, 2016 SGD ($)	Dec. 31, 2016 USD ($)
Bank of Tokyo-Mitsubishi, UFJ Ltd [Member]
Disclosure of detailed information about borrowings [Line Items]
Facility limit	$ 30,000,000	$ 30,000,000
Sumitomo Mitsui Banking Corporation [Member]
Disclosure of detailed information about borrowings [Line Items]
Facility limit			$ 30,000,000

Deferred Grants - Summary of Deferred Grants (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)
Subclassifications of assets, liabilities and equities [Abstract]
Beginning balance	¥ 337,889	$ 53,384	¥ 360,783
Received during the year	50,095	7,915	13,639	¥ 39,558
Released to consolidated statement of profit or loss	(34,337)	(5,425)	(36,533)
Ending balance	353,647	55,874	337,889	360,783
Current (Note 28)					¥ 22,270	$ 3,519	¥ 21,939
Non-current					331,377	52,355	315,950
Total	¥ 337,889	$ 53,384	¥ 360,783	¥ 360,783	¥ 353,647	$ 55,874	¥ 337,889

Inventories - Summary of Inventories (Detail) ¥ in Thousands, $ in Thousands	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)
Classes of current inventories [Abstract]
Raw materials	¥ 1,188,396	$ 187,758	¥ 904,737
Work in progress	34,924	5,518	26,807
Finished goods	1,349,425	213,199	732,335
Total inventories at the lower of cost and net realizable value	¥ 2,572,745	$ 406,475	¥ 1,663,879

Inventories - Analysis of Inventory Reserve Accounts (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)
Write-downs (reversals of write-downs) of inventories [Abstract]
Inventories recognized as an expense in cost of sales	¥ 11,021,960	$ 1,741,391	¥ 9,308,265	¥ 9,566,699
Inventories written down	17,492	2,764	48,202	59,339
Reversal of write-down of inventories	¥ (37,393)	$ (5,908)	¥ (53,373)	¥ (24,079)

Other Current Assets - Summary of Other Current Assets (Detail) ¥ in Thousands, $ in Thousands	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)
Current
Development properties	¥ 23,833	$ 3,765	¥ 23,378
Held for trading investment, quoted equity securities(i)	24,714	3,905	12,181
Total	¥ 48,547	$ 7,670	¥ 35,559

Trade and Bills Receivables - Summary of Trade and Bills Receivables (Detail) ¥ in Thousands, $ in Thousands	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)
Trade and other current receivables [Abstract]
Trade receivables, net	¥ 212,104	$ 33,511	¥ 241,168
Bill receivables(i)	6,819,440	1,077,423	6,816,088
Total (Note 36)	¥ 7,031,544	$ 1,110,934	¥ 7,057,256

Trade and Bills Receivables - Summary of Trade and Bills Receivables (Parenthetical) (Detail) ¥ in Thousands, $ in Thousands	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)
Disclosure of financial assets [Line Items]
Bills receivable	¥ 6,819,440	$ 1,077,423	¥ 6,816,088
Joint Ventures [Member]
Disclosure of financial assets [Line Items]
Bills receivable	69,816	11,030	45,000
Other related parties [Member]
Disclosure of financial assets [Line Items]
Bills receivable	¥ 23,832	$ 3,765	¥ 3,968

Trade and Bills Receivables - Additional Information (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)
Disclosure of Trade and Bills Receivables [line items]
Trade receivables payment terms	60 days
Outstanding bills receivable discounted with banks by retaining recourse obligation	¥ 1,505,759	$ 237,899	¥ 817,391
Outstanding bills receivable endorsed to suppliers with recourse obligation	1,316,136	207,940	851,099
Gross trade receivables	¥ 212,104	33,511	241,168
Top of range [Member]
Disclosure of Trade and Bills Receivables [line items]
Bills receivables discounted maturity period	12 months
Dongfeng Automobile Co., Ltd. [Member]
Disclosure of Trade and Bills Receivables [line items]
Gross trade receivables	¥ 24,580	$ 3,884	¥ 34,307

Trade and Bills Receivables - Analysis of Impairment of Doubtful Receivables (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)
Reconciliation of changes in allowance account for credit losses of financial assets [Abstract]
Beginning balance	¥ 54,634	$ 8,632	¥ 51,288
Charge/(credit) to consolidated statement of profit or loss	(10,854)	(1,715)	3,696
Written off	(5)	(1)	(346)
Translation differences			(4)
Ending balance	¥ 43,775	$ 6,916	¥ 54,634

Trade and Bills Receivables - Age Analysis of Trade and Bills Receivables (Detail) ¥ in Thousands, $ in Thousands	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)
Age Analysis of Trade and Bills Receivables [Line Items]
Trade and bills receivables	¥ 7,031,544	$ 1,110,934	¥ 7,057,256
Financial assets neither past due nor impaired [Member]
Age Analysis of Trade and Bills Receivables [Line Items]
Trade and bills receivables	6,919,347		6,995,511
Financial assets past due but not impaired [Member] \| 0 - 90 days [Member]
Age Analysis of Trade and Bills Receivables [Line Items]
Trade and bills receivables	59,966		37,902
Financial assets past due but not impaired [Member] \| 91 - 180 days [Member]
Age Analysis of Trade and Bills Receivables [Line Items]
Trade and bills receivables	21,457		12,062
Financial assets past due but not impaired [Member] \| 181 - 365 days [Member]
Age Analysis of Trade and Bills Receivables [Line Items]
Trade and bills receivables	29,857		9,654
Financial assets past due but not impaired [Member] \| Later than one year [Member]
Age Analysis of Trade and Bills Receivables [Line Items]
Trade and bills receivables	¥ 917		¥ 2,127

Other Receivables and Prepayments - Summary of Other Current Receivables and Prepayments (Detail) ¥ in Thousands, $ in Thousands	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)
Disclosure of financial assets [Line Items]
Staff advances	¥ 5,107	$ 807	¥ 7,501
Interest receivables	4,345	686	6,775
Bills receivable in transit	32,013	5,058	29,134
Retention sums	30,000	4,740
Others	10,705	1,692	10,510
Loans and receivables (Note 36)	132,675	20,962	246,687
Tax recoverable	177,819	28,094	102,024
Prepayments	73,896	11,675	37,654
Total	384,390	60,731	386,365
Associates and Joint Ventures [Member]
Disclosure of financial assets [Line Items]
Receivables from related parties	13,230	2,090	182,671
Other related parties [Member]
Disclosure of financial assets [Line Items]
Receivables from related parties	¥ 37,275	$ 5,889	¥ 10,096

Asset Classified as Held for Sale - Additional Information (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)
Disclosure of joint ventures [Line Items]
Interests in joint venture, representing asset classified as held for sale			¥ 89,381
Foreign currency translation reserve			¥ 22,720
Gain on disposal of joint venture	¥ 107,976	$ 17,059
Copthorne Hotel Qingdao Co Ltd [Member]
Disclosure of joint ventures [Line Items]
Proportion of ownership interest in joint venture sold	60.00%	60.00%
Gain on disposal of joint venture	¥ 107,976	$ 17,059

Asset Classified as Held for Sale - Summary of Value of Asset and Related Reserves of Disposal (Detail) - 12 months ended Dec. 31, 2017 ¥ in Thousands, $ in Thousands	CNY (¥)	USD ($)
Disclosure of assets and liabilities classified as held for sale [Abstract]
Interest in joint venture, representing asset classified as held for sale	¥ 89,381	$ 14,122
Gain on disposal:
Total consideration less cost of disposal	182,679	28,862
Interest in joint venture derecognized	(89,381)	(14,122)
Realization of foreign currency translation reserves upon disposal	22,720	3,590
Waiver of amount due by joint venture	(8,042)	(1,271)
Gain on disposal of joint venture (Note 8.2(a))	107,976	17,059
Total consideration less cost of disposal, representing net cash inflow on disposal of the joint venture	¥ 182,679	$ 28,862

Cash and Bank Balances - Summary of Cash and Bank Balances (Detail) ¥ in Thousands, $ in Thousands	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 CNY (¥)	Dec. 31, 2014 CNY (¥)
Non-current
Long-term bank deposits	¥ 70,000	$ 11,060
Current
Cash and cash equivalents	5,390,324	851,633	¥ 3,653,914	$ 577,292	¥ 3,474,364	¥ 2,291,345
Short-term bank deposits	514,074	81,220	363,043
Restricted cash	54,809	8,659	36,000
Total	5,959,207	941,512	4,052,957
Cash and bank balances	¥ 6,029,207	$ 952,572	¥ 4,052,957

Cash and Bank Balances - Summary of Cash and Bank Balances (Parenthetical) (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2017 USD ($)
Disclosure Of Detailed Cash and Cash Equivalents Short Term Bank Deposits Current Restricted Cash and Long Term Bank Deposits [Line Items]
Long-term bank deposits	¥ 70,000,000		$ 11,060
Bottom of range [Member]
Disclosure Of Detailed Cash and Cash Equivalents Short Term Bank Deposits Current Restricted Cash and Long Term Bank Deposits [Line Items]
Interest rate short term bank deposit	1.01%	0.83%
Top of range [Member]
Disclosure Of Detailed Cash and Cash Equivalents Short Term Bank Deposits Current Restricted Cash and Long Term Bank Deposits [Line Items]
Interest rate short term bank deposit	1.97%	1.76%
Guangxi Yuchai Machinery Monopoly Development Company Limited [Member]
Disclosure Of Detailed Cash and Cash Equivalents Short Term Bank Deposits Current Restricted Cash and Long Term Bank Deposits [Line Items]
Long-term bank deposits	¥ 70,000,000	¥ 0	$ 11,060
Long term deposits maturity	2 years
Guangxi Yuchai Machinery Monopoly Development Company Limited [Member] \| Bottom of range [Member]
Disclosure Of Detailed Cash and Cash Equivalents Short Term Bank Deposits Current Restricted Cash and Long Term Bank Deposits [Line Items]
Interest rate long term bank deposit	2.94%
Guangxi Yuchai Machinery Monopoly Development Company Limited [Member] \| Top of range [Member]
Disclosure Of Detailed Cash and Cash Equivalents Short Term Bank Deposits Current Restricted Cash and Long Term Bank Deposits [Line Items]
Interest rate long term bank deposit	3.15%

Cash and Bank Balances - Additional Information (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)	Dec. 31, 2017 USD ($)
Disclosure Of Detailed Cash and Cash Equivalents Short Term Bank Deposits Current Restricted Cash and Long Term Bank Deposits [Line Items]
Restricted cash used as collateral by the banks for the issuance of bills to suppliers	¥ 45,288		¥ 36,000		$ 7,155
Restricted money relates to retention money deposited in a joint signatory account with the buyer of subsidiaries	9,521				1,504
Undrawn borrowing facilities	474,384		318,565		$ 74,949
Loan commitment fee incurred	¥ 179	$ 28	¥ 392	¥ 368
Bottom of range [Member]
Disclosure Of Detailed Cash and Cash Equivalents Short Term Bank Deposits Current Restricted Cash and Long Term Bank Deposits [Line Items]
Interest rate on bank deposits	0.87%		0.86%		0.87%
Top of range [Member]
Disclosure Of Detailed Cash and Cash Equivalents Short Term Bank Deposits Current Restricted Cash and Long Term Bank Deposits [Line Items]
Interest rate on bank deposits	3.28%		2.10%		3.28%

Issued Capital and Preference Shares - Summary of Issued Capital and Preference Shares (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥) shares	Dec. 31, 2017 USD ($) shares	Dec. 31, 2016 CNY (¥) shares	Dec. 31, 2017 USD ($) shares
Ordinary shares issued and fully paid
Beginning balance	40,712,100	40,712,100	39,298,340
Shares issued during the year	99,790	99,790	1,413,760
Issued of shares upon exercised of share options	46,400	46,400
Ending balance	40,858,290	40,858,290	40,712,100
Equity
Beginning balance \| ¥	¥ 2,059,076		¥ 1,955,720
Issued of shares as dividend payment (Note 25) \| ¥	12,897		103,356
Issued of shares upon exercised of share options (Note 27) \| ¥	9,165
Ending balance	¥ 2,081,138	$ 328,805	¥ 2,059,076
One special share issued and fully paid at US$0.10 per share	Less than RMB 1 thousand (US$1 thousand)	Less than RMB 1 thousand (US$1 thousand)	Less than RMB 1 thousand (US$1 thousand)
Non-redeemable convertible cumulative preference shares	¥ 21		¥ 21	$ 3
Ordinary shares [Member]
Disclosure of classes of share capital [Line Items]
Ordinary share of par value US$0.10 each	100,000,000		100,000,000	100,000,000

Issued Capital and Preference Shares - Additional Information (Detail) $ / shares in Units, ¥ in Thousands, $ in Thousands					12 Months Ended
	Jul. 13, 2017 CNY (¥) shares	Jul. 13, 2017 USD ($) $ / shares shares	Jun. 29, 2016 CNY (¥) shares	Jun. 29, 2016 USD ($) $ / shares shares	Dec. 31, 2017 CNY (¥) shares	Dec. 31, 2017 USD ($) $ / shares shares	Dec. 31, 2016 CNY (¥) shares	Dec. 31, 2016 $ / shares $ / shares shares	Dec. 31, 2015 $ / shares	Dec. 31, 2016 $ / shares shares	Jul. 04, 2006 $ / shares shares
Disclosure of classes of share capital [Line Items]
Dividend paid per share \| $ / shares		$ 0.90		$ 0.85		$ 0.90		$ 0.85	$ 1.10
Dividend paid in form of cash		$ 34,700		$ 17,800	¥ 235,947	$ 37,278	¥ 118,193
Dividend paid in form of shares \| shares	99,790	99,790	1,413,760	1,413,760
Weighted average trading price per share \| $ / shares		$ 19.0329		$ 11.0227
Total value of dividend paid in shares	¥ 12,897	$ 2,038	¥ 103,356		¥ 12,897	$ 2,038	¥ 103,356
Number of shares issued upon exercise of share options					46,400	46,400
Equity Incentive Plan [Member]
Disclosure of classes of share capital [Line Items]
Number of shares issued upon exercise of share options					46,400	46,400
Ordinary shares [Member]
Disclosure of classes of share capital [Line Items]
Issue price per share \| $ / shares						$ 0.1				$ 0.1
Ordinary shares [Member] \| HL Global Enterprises Limited [Member]
Disclosure of classes of share capital [Line Items]
NCCPS issued \| shares								2,899		2,899
Ordinary shares [Member] \| Bottom of range [Member]
Disclosure of classes of share capital [Line Items]
Number of special share shall cease to carry any rights in event by HLA \| shares					7,290,000	7,290,000
Preference share (Note 24) [Member] \| HL Global Enterprises Limited [Member]
Disclosure of classes of share capital [Line Items]
NCCPS issued \| shares											197,141,190
Issue price per share \| $ / shares								$ 0.02			$ 0.02
Number of shares converted to ordinary shares in subsidiaries capital \| shares					197,011,794	197,011,794	28,998
Issue price per share \| $ / shares										$ 0.02
NCCPS conversion ratio							10.00%

Dividends Declared and Paid - Summary of Dividends Declared and Paid (Detail) ¥ in Thousands, $ in Thousands					12 Months Ended
	Jul. 13, 2017 CNY (¥)	Jul. 13, 2017 USD ($)	Jun. 29, 2016 CNY (¥)	Jun. 29, 2016 USD ($)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)
Disclosure of dividends declared and paid on ordinary capital [Abstract]
Dividend paid in cash		$ 34,700		$ 17,800	¥ 235,947	$ 37,278	¥ 118,193
Dividend paid in shares (Note 24)	¥ 12,897	$ 2,038	¥ 103,356		12,897	2,038	103,356
Dividends on ordinary shares					¥ 248,844	$ 39,316	¥ 221,549	¥ 257,500

Reserves - Summary of Statutory Reserves (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)
Disclosure of reserves within equity [Line Items]
Beginning balance	¥ 299,144
Ending balance	301,026	$ 47,560	¥ 299,144
Statutory General Reserve [Member]
Disclosure of reserves within equity [Line Items]
Beginning balance	273,438	43,202	272,515
Transfer from retained earnings	1,882	297	923
Ending balance	275,320	43,499	273,438
General Surplus Reserve [Member]
Disclosure of reserves within equity [Line Items]
Beginning balance	25,706	4,061	25,706
Ending balance	¥ 25,706	$ 4,061	¥ 25,706

Reserves - Summary of Statutory Reserves (Parenthetical) (Detail)	12 Months Ended
	Dec. 31, 2017
Disclosure of reserves within equity [Line Items]
Appropriation of net income to the statutory general reserve	10.00%
Percentage of certain statutory general reserve balance with share capital	50.00%
Bottom of range [Member]
Disclosure of reserves within equity [Line Items]
Percentage of decline in authorized share capital	25.00%

Reserves - Summary of Other Components of Equity (Detail) ¥ in Thousands, $ in Thousands	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)
Disclosure of other components of equity [Line Items]
Other components of equity	¥ 74,722	$ 11,805	¥ 11,560
Foreign currency translation reserve (Note 24) [Member]
Disclosure of other components of equity [Line Items]
Other components of equity	(82,939)	(13,104)	(43,959)
Performance shares reserves (Note 24) [Member]
Disclosure of other components of equity [Line Items]
Other components of equity	19,758	3,122	20,839
Reserve of asset classified as held for sale (Note 22) [Member]
Disclosure of other components of equity [Line Items]
Other components of equity			22,720
(Premium paid for)/discount on acquisition of non-controlling interests [Member]
Disclosure of other components of equity [Line Items]
Other components of equity	¥ (11,541)	$ (1,823)	¥ (11,160)

Share-based Payment - Additional Information (Detail)	12 Months Ended
Share-based Payment - Additional Information (Detail)	Dec. 31, 2017 USD ($) yr	Dec. 31, 2016 USD ($) yr
Disclosure of terms and conditions of share-based payment arrangement [Line Items]
Equity incentive plan period	10 years
Exercise price for options outstanding \| $	$ 21.11	$ 21.11
Weighted average remaining contractual life for the share options outstanding \| yr	6.6	7.6
One year after the date of grant [Member] \| Top of range [Member]
Disclosure of terms and conditions of share-based payment arrangement [Line Items]
Share-based payment vesting percentage	33.00%
Two years after the date of grant [Member] \| Top of range [Member]
Disclosure of terms and conditions of share-based payment arrangement [Line Items]
Share-based payment vesting percentage	66.00%
Three years after the date of grant [Member] \| Top of range [Member]
Disclosure of terms and conditions of share-based payment arrangement [Line Items]
Share-based payment vesting percentage	100.00%

Share-based Payment - Expense Recognized for Employee Services Received (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)
Disclosure of terms and conditions of share-based payment arrangement [Abstract]
Expense arising from equity-settled share-based payment transactions	¥ 1,592	$ 252	¥ 5,301	¥ 10,275
Total expense arising from share-based payment transactions	¥ 1,592	$ 252	¥ 5,301	¥ 10,275

Share-based Payment - Number and Weighted Average Exercise Prices ("WAEP") of, and Movements in Share Options (Detail)	12 Months Ended
	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Disclosure of terms and conditions of share-based payment arrangement [Abstract]
Beginning balance	530,000	570,000
Exercised during the year	(46,400)
Cancelled during the year	(13,600)	(40,000)
Ending balance	470,000	530,000
Exercisable at December 31	470,000	353,333
Beginning balance	$ 21.11	$ 21.11
Exercised during the year	21.11
Cancelled during the year	21.11	21.11
Ending balance	21.11	21.11
Exercisable at December 31	$ 21.11	$ 21.11

Share-based Payment - Fair Value of Share Options and Assumptions (Detail)	Jul. 29, 2014 USD ($) yr
Disclosure of terms and conditions of share-based payment arrangement [Line Items]
Share price	$ 21.11
Exercise price	$ 21.11
Expected volatility	47.40%
Expected dividends	5.81%
Bottom of range [Member]
Disclosure of terms and conditions of share-based payment arrangement [Line Items]
Fair value at measurement date	$ 5.70
Expected option life (years) \| yr	3.5
Risk-free interest rate	1.40%
Top of range [Member]
Disclosure of terms and conditions of share-based payment arrangement [Line Items]
Fair value at measurement date	$ 6.74
Expected option life (years) \| yr	5.5
Risk-free interest rate	2.00%

Trade and Other Payables - Summary of Trade and Other Current Payables (Detail) ¥ in Thousands, $ in Thousands	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)
Trade and other current payables [Abstract]
Trade and bills payables	¥ 5,177,123	$ 817,948	¥ 4,672,750
Other payables	366,604	57,921	362,856
Accrued expenses	843,447	133,258	841,942
Accrued staff costs	622,893	98,413	406,261
Dividend payable	39,786	6,286	37,851
Associates and joint ventures	102,111	16,133	91,439
Other related parties	125,411	19,814	120,619
Financial liabilities at amortized cost (Note 36)	7,277,375	1,149,773	6,533,718
Other tax payable	51,387	8,119	42,750
Trade and other payables with liquidity risk (Note 33)	7,328,762	1,157,892	6,576,468
Deferred grants (Note 17)	22,270	3,519	21,939
Deferred income			170,000
Advance from customers	117,117	18,503	76,636
Total trade and other payables (current)	¥ 7,468,149	$ 1,179,914	¥ 6,845,043

Trade and Other Payables - Summary of Trade and Other Current Payables (Parenthetical) (Detail) ¥ in Thousands, $ in Thousands	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)
Joint Ventures [Member]
Disclosure Of Detailed Information About Trade And Other Payables [Line Items]
Bills payable	¥ 63,600	$ 10,048	¥ 50
Associates [Member]
Disclosure Of Detailed Information About Trade And Other Payables [Line Items]
Bills payable	8,560	1,352	12,210
Other related parties [Member]
Disclosure Of Detailed Information About Trade And Other Payables [Line Items]
Bills payable	¥ 114,749	$ 18,129	¥ 133,708

Trade and Other Payables - Summary of Other Non-current Payables (Detail) ¥ in Thousands, $ in Thousands	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)
Trade and other non-current payables [Abstract]
Provision for bonus	¥ 148,287	$ 23,428	¥ 133,928
Deferred income	8,060	1,274	2,844
Other payables (non-current) (Note 33, Note 36)	¥ 156,347	$ 24,702	¥ 136,772

Provision for Product Warranty - Summary of Provision for Product Warranty (Detail) - Product Warranty Provision [Member] ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)
Disclosure of other provisions [Line Items]
Beginning balance	¥ 238,850	$ 37,737	¥ 233,577
Provision made	412,514	65,174	350,803
Provision utilized	(361,058)	(57,045)	(345,530)
Ending balance	¥ 290,306	$ 45,866	¥ 238,850

Related Party Disclosures - Additional Information (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥) shares	Dec. 31, 2017 USD ($) shares	Dec. 31, 2016 CNY (¥) shares	Dec. 31, 2015 CNY (¥)
Hong Leong Asia Limited [Member] \| Subsidiaries [Member]
Disclosure of transactions between related parties [Line Items]
Ownership interest in the entity, percentage	40.00%	40.00%	40.20%
Ownership interest in the entity, shares	16,360,845	16,360,845	16,360,845
Number of special shares held, entitles to elect majority of board of directors	1	1	1
Consultancy fees charged	¥ 34	$ 5	¥ 34	¥ 32
HL Technology Systems Private Limited [Member] \| Subsidiaries [Member]
Disclosure of transactions between related parties [Line Items]
Ownership interest held by controlling shareholder, percent	23.30%	23.30%	23.40%
Well Summit Investments Limited [Member] \| Subsidiaries [Member]
Disclosure of transactions between related parties [Line Items]
Ownership interest held by controlling shareholder, percent	16.70%	16.70%	16.80%
Yulin City Government [Member]
Disclosure of transactions between related parties [Line Items]
Ownership interest held by non-controlling shareholder with significant influence over the Group	17.20%	17.20%	17.30%

Related Party Disclosures - Significant Transactions with Related Parties (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)
Disclosure of transactions between related parties [Line Items]
Materials/engines to State Holding Company, its subsidiaries and affiliates	¥ 710	$ 112
Associates and Joint Ventures [Member]
Disclosure of transactions between related parties [Line Items]
Diesel engines and materials to associates and joint ventures	412,591	65,186	¥ 219,724	¥ 156,444
Purchase of materials and supplies/engines	914,211	144,439	308,610	90,354
Charged by joint ventures for service provided	2,543	402	2,121
Joint Ventures [Member]
Disclosure of transactions between related parties [Line Items]
Charged to a joint venture for service provided	14,241	2,250
Sales of an intangible asset to a joint venture	220,000	34,758
State Holding Company Limited [Member]
Disclosure of transactions between related parties [Line Items]
Disposal of shareholding in an associate to State Holding Company	1,833	290
State Holding Company Limited [Member] \| Subsidiaries and affiliates[Member]
Disclosure of transactions between related parties [Line Items]
Materials/engines to State Holding Company, its subsidiaries and affiliates	455,061	71,896	447,509	516,679
Hospitality and restaurant service charged to State Holding Company, its subsidiaries and affiliates	4,454	704	4,761	3,247
Purchase of materials and supplies/engines	1,221,421	192,976	1,028,358	1,181,852
Delivery expense charged by subsidiaries of State Holding Company	192,399	30,398	143,077	164,690
Storage, distribution and handling expenses charged by a subsidiary of State Holding Company	18,007	2,845	50,181	30,462
Leasing expenses charged by State Holding Company	8,676	1,371	4,715	12,951
Consultancy fees charged by State Holding Company	12,264	1,938	10,026
General and administrative expenses	7,951	1,256	4,283	3,141
Charged to a joint venture for service provided	21,274	3,361	8,873
Rental income charged to State Holding Company and its subsidiaries	4,483	708	5,454	619
Purchases of vehicles/machineries from State Holding Company and its subsidiary	52,443	8,286		1,963
Purchases of additional shareholding in a subsidiary from State Holding Company	1,335	211		4,170
State Holding Company Limited [Member] \| Associates and Joint Ventures [Member]
Disclosure of transactions between related parties [Line Items]
Property management service charged by an associate/ a subsidiary of SHC	22,212	3,509	20,976	23,359
Hong Leong Asia Limited [Member] \| Subsidiaries [Member]
Disclosure of transactions between related parties [Line Items]
Consultancy fees charged by State Holding Company	34	5	34	32
General and administrative expenses	¥ 6,913	$ 1,092	¥ 6,887	¥ 6,271

Related Party Disclosures - Significant Transactions with Related Parties (Parenthetical) (Detail) ¥ in Millions, $ in Millions	1 Months Ended
	Aug. 31, 2017 CNY (¥)	Aug. 31, 2017 USD ($)	Jun. 30, 2017 CNY (¥)	Jun. 30, 2017 USD ($)	Oct. 31, 2015 CNY (¥)
Guangxi Yuchai Accessories Manufacturing Company Limited Stateholding Company [member]
Disclosure of transactions between related parties [Line Items]
Percentage of equity interest acquired			25.00%	25.00%
Purchase consideration			¥ 1.3	$ 0.2
Guangxi Yuchai Equipment Mould Company Limited [Member]
Disclosure of transactions between related parties [Line Items]
Percentage of equity interest acquired					2.86%
Purchase consideration					¥ 4.2
Guangxi Yulin Yuchai Property Management Co Ltd [Member]
Disclosure of transactions between related parties [Line Items]
Proportion of equity interest	30.00%	30.00%
Total consideration from disposal	¥ 1.9	$ 0.3

Related Party Transactions - Compensation of Key Management Personnel (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)
Disclosure of transactions between related parties [Abstract]
Short-term employee benefits	¥ 40,831	$ 6,451	¥ 31,975	¥ 27,331
Contribution to defined contribution plans	385	61	415	305
Cost of share-based payment	1,294	204	4,387	8,477
Total	¥ 42,510	$ 6,716	¥ 36,777	¥ 36,113

Commitments and Contingencies - Additional Information (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)	Dec. 31, 2017 USD ($)
Disclosure of commitments and contingencies [Line Items]
Minimum operating lease payments recognized as an expense	¥ 54,671	$ 8,638	¥ 54,617	¥ 60,201
Capital commitments related to property, plant and equipment	409,487		427,089		$ 64,696
Investments commitments related to interest in joint venture	0		75,000		0
Irrevocable letter of credits issued	¥ 1,905		¥ 29,729		$ 301
Bottom of range [Member]
Disclosure of commitments and contingencies [Line Items]
Property plant and equipment, subject to or available for operating lease useful life average	1 year	1 year
Top of range [Member]
Disclosure of commitments and contingencies [Line Items]
Property plant and equipment, subject to or available for operating lease useful life average	5 years	5 years

Commitments and Contingencies - Future Minimum Rentals Payable Under Non-cancellable Operating Leases (Detail) ¥ in Thousands, $ in Thousands	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)
Disclosure of finance lease and operating lease by lessee [Line Items]
Future minimum rentals payable under non-cancellable operating leases	¥ 35,363	$ 5,586	¥ 26,188
One Year or Less [Member] \| With third parties [Member]
Disclosure of finance lease and operating lease by lessee [Line Items]
Future minimum rentals payable under non-cancellable operating leases	14,058	2,221	11,338
One Year or Less [Member] \| With Related Parties [Member]
Disclosure of finance lease and operating lease by lessee [Line Items]
Future minimum rentals payable under non-cancellable operating leases	5,578	881	800
After one year but not more than five years [Member] \| With third parties [Member]
Disclosure of finance lease and operating lease by lessee [Line Items]
Future minimum rentals payable under non-cancellable operating leases	14,003	2,212	12,537
After one year but not more than five years [Member] \| With Related Parties [Member]
Disclosure of finance lease and operating lease by lessee [Line Items]
Future minimum rentals payable under non-cancellable operating leases	¥ 1,724	$ 272	1,399
More Than Five Years [Member] \| With third parties [Member]
Disclosure of finance lease and operating lease by lessee [Line Items]
Future minimum rentals payable under non-cancellable operating leases			¥ 114

Commitments and Contingencies - Future Minimum Rentals Receivable Under Non-cancellable Operating Leases (Detail) ¥ in Thousands, $ in Thousands	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)
Disclosure of finance lease and operating lease by lessor [Line Items]
Future minimum rentals receivable under non-cancellable operating leases	¥ 5,691	$ 899	¥ 3,849
One Year or Less [Member] \| With third parties [Member]
Disclosure of finance lease and operating lease by lessor [Line Items]
Future minimum rentals receivable under non-cancellable operating leases	1,438	227	1,624
One Year or Less [Member] \| With Related Parties [Member]
Disclosure of finance lease and operating lease by lessor [Line Items]
Future minimum rentals receivable under non-cancellable operating leases	184	29	102
After one year but not more than five years [Member] \| With third parties [Member]
Disclosure of finance lease and operating lease by lessor [Line Items]
Future minimum rentals receivable under non-cancellable operating leases	2,491	394	1,855
After one year but not more than five years [Member] \| With Related Parties [Member]
Disclosure of finance lease and operating lease by lessor [Line Items]
Future minimum rentals receivable under non-cancellable operating leases	268	42
More Than Five Years [Member] \| With third parties [Member]
Disclosure of finance lease and operating lease by lessor [Line Items]
Future minimum rentals receivable under non-cancellable operating leases	¥ 1,310	$ 207	¥ 268

Commitments and Contingencies - Future Minimum Lease Payments Under Finance Lease Together With Present Value of Net Minimum Lease Payments (Detail)
¥ in Thousands, $ in Thousands

Dec. 31, 2017

CNY (¥)

Dec. 31, 2017

USD ($)

Dec. 31, 2016

CNY (¥)

Minimum lease payments

¥ 79

$ 12

¥ 113

Present value of payments

108

Less: Amount representing finance charges

^[1]

(5)

One Year or Less [Member]

Disclosure of finance lease and operating lease by lessee [Line Items]

Minimum lease payments

Present value of payments

After one year but not more than five years [Member]

Disclosure of finance lease and operating lease by lessee [Line Items]

Minimum lease payments

Present value of payments

¥ 46

$ 7

¥ 70

[1]	Less than RMB 1 (US$1)

Commitments and Contingencies - Future Minimum Lease Payments Under Finance Lease Together With Present Value of Net Minimum Lease Payments (Parenthetical) (Detail)

Dec. 31, 2017

CNY (¥)

Dec. 31, 2017

USD ($)

Dec. 31, 2016

CNY (¥)

Disclosure of finance lease and operating lease by lessee [Line Items]

Less: Amount representing finance charges

^[1]

¥ 5,000

Top of range [Member]

Disclosure of finance lease and operating lease by lessee [Line Items]

Less: Amount representing finance charges

¥ 1,000

$ 1,000

[1]	Less than RMB 1 (US$1)

Segment Information - Additional Information (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥) Segments	Dec. 31, 2017 USD ($) Segments	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)
Disclosure of operating segments [Line Items]
Number of reportable segments	2	2
Revenue	¥ 16,222,442	$ 2,563,030	¥ 13,664,840	¥ 13,733,437
Customer One [Member]
Disclosure of operating segments [Line Items]
Revenue	¥ 4,839,617	$ 764,625	¥ 3,580,856	¥ 2,900,332

+ References

+ Details

Segment Information - Summary of Segment Information (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)	Dec. 31, 2017 USD ($)
Revenue
Total external revenue	¥ 16,222,442,000	$ 2,563,030	¥ 13,664,840,000	¥ 13,733,437,000
Results
Interest income	105,421,000	16,656	56,983,000	41,314,000
Interest expense	(96,072,000)	(15,179)	(75,131,000)	(112,987,000)
Gain on disposal of intangible assets	115,235,000	18,206
Gain on disposal of subsidiaries	216,115,000	34,145
Gain on disposal of joint venture	107,976,000	17,059
Impairment of property, plant and equipment	(20,845,000)	(3,293)	(3,297,000)	(2,873,000)
Impairment of technology development cost	(40,000,000)	(6,320)	0	(26,700,000)
Staff severance cost	(107,732,000)	(17,021)	(12,864,000)	(8,385,000)
Depreciation and amortization	(444,181,000)	(70,177)	(478,160,000)	(469,435,000)
Share of profit/(loss) of associates and joint ventures, net of tax	10,054,000	1,589	(3,612,000)	(2,691,000)
Income tax expense	(220,167,000)	(34,785)	(160,270,000)	(176,818,000)
Segment profit after income tax	1,405,070,000	221,991	723,608,000	509,320,000
Total assets	21,015,059,000		18,596,506,000		$ 3,320,229
Total liabilities	(10,035,783,000)		(8,610,694,000)		(1,585,582)
Other disclosures
Investment in joint ventures	196,102,000		176,351,000		$ 30,983
Capital expenditure	261,433,000	$ 41,305	284,993,000
Operating Segments [Member] \| Yuchai Segment [Member]
Revenue
Total external revenue	16,165,245,000		13,598,487,000	13,671,931,000
Results
Interest income	94,760,000		51,235,000	35,557,000
Interest expense	(94,794,000)		(73,028,000)	(110,618,000)
Gain on disposal of intangible assets	115,235,000
Impairment of property, plant and equipment	(20,845,000)		(3,297,000)	(2,873,000)
Impairment of technology development cost	(40,000,000)			(26,700,000)
Staff severance cost	(107,732,000)		(12,864,000)	(8,385,000)
Depreciation and amortization	(433,921,000)		(467,177,000)	(458,759,000)
Share of profit/(loss) of associates and joint ventures, net of tax	9,255,000		112,000	(10,230,000)
Income tax expense	(190,573,000)		(141,272,000)	(161,731,000)
Segment profit after income tax	1,089,233,000		765,039,000	583,115,000
Total assets	19,623,882,000		17,537,583,000
Total liabilities	(9,840,265,000)		(8,419,018,000)
Other disclosures
Investment in joint ventures	193,476,000		173,781,000
Capital expenditure	259,068,000		282,284,000
Operating Segments [Member] \| HL Global Enterprises Limited Segment [Member]
Revenue
Total external revenue	57,197,000		66,353,000	61,506,000
Results
Interest income	1,803,000		1,919,000	1,415,000
Interest expense	(3,983,000)		(7,706,000)	(7,595,000)
Gain on disposal of subsidiaries	216,115,000
Gain on disposal of joint venture	107,976,000
Depreciation and amortization	(9,990,000)		(10,744,000)	(10,458,000)
Share of profit/(loss) of associates and joint ventures, net of tax	799,000		(3,724,000)	7,539,000
Income tax expense	(461,000)		(2,281,000)	(2,491,000)
Segment profit after income tax	322,481,000		(4,548,000)	6,473,000
Total assets	451,096,000		449,994,000
Total liabilities	(66,920,000)		(369,124,000)
Other disclosures
Investment in joint ventures	2,626,000		2,570,000
Capital expenditure	975,000		2,623,000
Operating Segments [Member] \| Corporate Segment [Member]
Results
Interest income	11,833,000		10,080,000	10,003,000
Interest expense	(270,000)		(648,000)	(435,000)
Depreciation and amortization	(270,000)		(239,000)	(218,000)
Income tax expense	(29,133,000)		(16,717,000)	(12,596,000)
Segment profit after income tax	(6,644,000)		(36,883,000)	(80,268,000)
Total assets	2,444,012,000		2,111,248,000
Total liabilities	(128,591,000)		(151,472,000)
Other disclosures
Capital expenditure	1,390,000		86,000
Elimination of intersegment amounts [Member]
Results
Interest income	(2,975,000)		(6,251,000)	(5,661,000)
Interest expense	2,975,000		6,251,000	¥ 5,661,000
Total assets	(1,503,931,000)		(1,502,319,000)
Total liabilities	¥ (7,000)		¥ 328,920,000

Segment Information - Summary of Geographic Information (Detail) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)	Dec. 31, 2017 USD ($)
Disclosure of geographical areas [Line Items]
Revenue from external customers	¥ 16,222,442	$ 2,563,030	¥ 13,664,840	¥ 13,733,437
Non-current assets	4,619,767		4,988,768		$ 729,890
People's Republic of China [Member]
Disclosure of geographical areas [Line Items]
Revenue from external customers	16,116,356	2,546,269	13,508,721	13,630,979
Non-current assets	4,524,988		4,893,338		714,916
Other Countries [Member]
Disclosure of geographical areas [Line Items]
Revenue from external customers	106,086	$ 16,761	156,119	¥ 102,458
Non-current assets	¥ 94,779		¥ 95,430		$ 14,974