New Stock News | Yuchai Ship Electric Reapplies to the Hong Kong Stock Exchange to Become China's Largest Supplier of Power Generation Engines by 2025

According to a disclosure by the Hong Kong Stock Exchange on August 31, Guangxi Yuchai Marine Power Co., Ltd. (abbreviated as Yuchai Marine Power) has submitted its listing application to the main board of the Hong Kong Stock Exchange, with CMSC International and China Galaxy International as its joint sponsors. The company had previously submitted an application to the Hong Kong Stock Exchange on January 27. Company Profile According to data from Frost & Sullivan, Yuchai Marine Power is the largest supplier of generating engines in China based on sales revenue for power generation engines in 2025. The company is also a leading supplier of marine engines in China, ranking second in sales revenue for mid- to high-speed marine engines in that year. The company designs, develops, manufactures, and sells power generation engines, marine engines, generator sets, and engine components, serving a wide range of economic markets including data centers, distributed power stations, infrastructure projects, telecommunications, healthcare, mining, agriculture, oil and gas, and maritime transportation and operations. The company primarily operates in China and maintains a sales team overseas that covers Europe, the Middle East, Africa, Asia, and South America. In terms of competitive landscape, there are currently fewer than 50 participants in China's power generation engine industry, indicating a highly concentrated and oligopolistic market structure. In the Chinese mid- to high-speed marine engine market, about 20 key players have entered the mass production phase. The current Chinese power generation engine market is relatively concentrated, with high-power, high-value products focused on leading companies. By 2025, the combined sales amount of the top five power generation engine suppliers in China is expected to account for approximately 62.4% of the total market. Among them, Yuchai Marine Power ranks first, holding a 22.3% market share in the Chinese power generation engine market. Financial Information Revenue The company's revenue is projected to be approximately RMB 3.239 billion, RMB 4 billion, RMB 6.15 billion, and RMB 4.494 billion for the years 2023, 2024, 2025, and the first half of 2026, respectively. Profit for the Year/Period The company's profit for the years 2023, 2024, 2025, and the first half of 2026 is expected to be approximately RMB 396 million, RMB 536 million, RMB 877 million, and RMB 826 million, respectively. Gross Margin The company's gross margins for 2023, 2024, 2025, and the first half of 2026 are estimated to be 22.4%, 23.4%, 24.9%, and 27.4%, respectively. Industry Overview Within the cost structure of generator sets, power generation engines serve as the core component, with the material list's parts cost being the highest, accounting for about 65% of the total material list. The power generation engine industry is particularly reliant on technology. The design and manufacturing of power generation engines require critical technologies such as structural design, combustion control, thermal efficiency optimization, precision machining, and material innovation. The level of these technologies directly determines the operating reliability, energy utilization efficiency, and environmental emission performance of generator sets, constituting the core competitive advantage of the products. In terms of revenue, the global power generation engine market is projected to grow from RMB 48.0 billion in 2021 to RMB 66.9 billion in 2025, with a compound annual growth rate (CAGR) of 8.7%. Driven by strong demand from downstream applications such as data centers, distributed power stations, and infrastructure, the global power generation engine market is expected to record stable growth. Moreover, supported by ongoing product technology upgrades and increasing downstream application demand, the global power generation engine market is projected to reach RMB 159.6 billion by 2030, with a CAGR of 19.0% from 2025 to 2030. In this continuously expanding market and overall power generation engine industry, diesel remains the primary fuel source. Despite the ongoing global energy transition, the clean energy engine market is expected to grow from RMB 9.2 billion in 2025 to RMB 10.8 billion in 2030, with a CAGR of 3.2%. This stark contrast highlights the resilience and sustained market dominance of diesel-powered solutions in the foreseeable future. Benefiting from the rapid development of global artificial intelligence technology, the widespread adoption of distributed power station applications, and continuous infrastructure advancement, China's power generation engine market is witnessing rapid growth. The market size of power generation engines in China is projected to grow from RMB 10.8 billion in 2021 to RMB 18.1 billion in 2025, with a CAGR of 13.8%. Strongly driven by the surge in computing power demand from data centers, the market size is expected to increase from RMB 18.1 billion in 2025 to RMB 46.3 billion in 2030, with a CAGR of 20.7%. Board of Directors Information The Board of Directors will consist of nine members, including three executive directors, three non-executive directors, and three independent non-executive directors. Executive and non-executive directors are appointed for a term of three years, while independent non-executive directors are appointed for a term of one year. Shareholding Structure As of the last practicable date, HLCH is wholly owned directly and indirectly by HLIH, which holds 73.20% directly and indirectly holds 26.80% through its wholly-owned subsidiary HLE. Fong Long Asia is ultimately controlled by HLIH. As of the last practicable date, Yuchai International indirectly holds a 76.41% equity stake in Yuchai through its six wholly-owned subsidiaries: (i) HLTS, holding approximately 22.26% of Yuchai shares; (ii) Earnest Assets, holding approximately 21.44% of Yuchai shares; (iii) Cathay Diesel Holdings, holding approximately 12.64% of Yuchai shares; (iv) Tsang & Ong, holding approximately 12.64% of Yuchai shares; (v) GSGH, holding approximately 5.22% of Yuchai shares; and (vi) Youngstar, holding approximately 2.20% of Yuchai shares. Therefore, for the purposes of the Securities and Futures Ordinance, Yuchai International is deemed to own the rights to 856,000,000 shares of Yuchai held or controlled through its controlled entities. Intermediary Team Sponsors: CMSC (Hong Kong) Limited, China Galaxy International Securities (Hong Kong) Limited Company Legal Advisors: Li & Partners, JunHe Law Offices, King & Wood Mallesons Sponsor Legal Advisors: Haiwen & Partners, Haiwen Law Firm Auditors and Reporting Accountants: Ernst & Young Industry Advisor: Frost & Sullivan (Beijing) Consulting Co., Ltd., Shanghai Branch Compliance Advisor: Ying Gao Financial Advisory Limited