Half Year 2024 China Yuchai International Ltd Earnings Call
I like now to turn the conference Oh, that's a Kevin says please go ahead Sir.
Speaker Change: Thank you for joining us today and welcome to China, UGI International Limited's Conference call and webcast.
Speaker Change: For the second half and fiscal year of 'twenty 'twenty four ended on December 31 2024.
Speaker Change: Joining us today are Mr. Wei Ming Hoh and Mr. Johnson, Lou President and Chief Financial Officer of C Y I, respectively.
Kelvin Lai: We also have an attendance Mr. Kelvin Lai general manager of the operations of C. Yi and chairman of M. T. You UGI power Company limited.
Speaker Change: M P you power company.
Speaker Change: Before we begin I will remind all listeners that throughout this call. We may make statements that may contain forward looking statements within the private what Cindy.
Speaker Change: Private Securities Litigation Reform Act of 1995, the words believe expect anticipate project.
Speaker Change: Target optimistic confident that continue to predict intend aim will.
Or similar expressions are intended to identify forward looking statements all statements other than statements of historical fact are statements that may be deemed forward looking statements.
Speaker Change: These forward looking statements include but are not limited to statements concerning the company's operations and financial performance and condition and are based on current expectations beliefs and assumptions.
Speaker Change: Which are subject to change at any time the.
Speaker Change: The company cautions that these statements by their nature involve risks and uncertainties and actual results may differ materially.
Speaker Change: Depending on a variety of important factors, such as government and stock exchange regulations competition.
Speaker Change: Political economic and social conditions around the world and in China.
Speaker Change: Clothing, those discussed in the company's form 20-F under the headings risk factors.
Speaker Change: Results of operations.
Speaker Change: And business overview.
Speaker Change: And in other reports filed with Securities and Exchange Commission from time to time.
Speaker Change: All forward looking statements are applicable only as of the date. They are made and the company specifically disclaims any obligation to maintain or update the forward looking information.
Speaker Change: Of the nature contained in the press release made during today's call or otherwise in the future.
Hal: Mr. Hal will provide.
Hal: Beef overview and summary, then Mr. Lu will provide the financial results for the second half and full year ended December 31, 2024 thereafter, we will conduct a question and answer session for purposes of today's call. The 'twenty 'twenty four results are unaudited and the 'twenty to 'twenty three financial numbers are.
Hal: Audited.
Hal: And they will be presented in RMB and U S dollars.
Speaker Change: All financial information presented is reported using the international financial reporting standards as issued by the International Accounting standards Board. Mr. Hoh. Please begin your prepared remarks.
Speaker Change: Thank you Kelly.
Speaker Change: We are pleased to report that.
Speaker Change: <unk> outperformed the Chinese truck and bus market in the second half.
For the full year.
Speaker Change: According to data from China Association of automobile manufacturers <unk>.
Speaker Change: Compared with a nine 9% year over year decline in profit.
Speaker Change: Yes.
Speaker Change: So they'll have plenty for our truck and bus engine sales.
Speaker Change: One by 6% year on year.
Speaker Change: For the full year.
Speaker Change: Our truck and bus engine sales rose by seven 2% year on year.
Speaker Change: Let me put it to one 6%.
Speaker Change: Or youre declining truck bus the.
Speaker Change: Equal.
Speaker Change: Our off road engine sales rose by 6% year over year.
Speaker Change: Uh huh.
Speaker Change: Paul.
Speaker Change: And by nine 1% year over year.
Speaker Change: Sure.
Speaker Change: A year.
Speaker Change: Agriculture.
Speaker Change: <unk> sales were flat.
Speaker Change: Well industrial engine sales are up by 11% year over year.
Speaker Change: And density.
Speaker Change: Despite the five 5%.
Speaker Change: Revenue in 2020.
Paul was flat compared with the same period last year revenue.
Speaker Change: Rosebud.
Speaker Change: 6.6% year on year to RMB 91 billion.
Goodbye.
Speaker Change: Gross profit increased faster than <unk>.
Speaker Change: Revenue rising by 14, 3% year over year.
Speaker Change: So they'll have to drop the ball and therefore, 8% year on year to year.
Speaker Change: Paul.
Speaker Change: Two 8 billion of Australia.
Speaker Change: Compared with RMB, two 5 billion.
Speaker Change: Sure.
Speaker Change: Sorry.
Speaker Change: Gross margin increased to 47% compared to 41% in FY <unk>.
Speaker Change: Great.
Speaker Change: The increase in gross margin was mainly attributable to higher revenue and continued cost reduction initiatives.
Speaker Change: Although our operating profit decreased slightly.
Speaker Change: Those are twofold.
Speaker Change: For the associated companies.
Speaker Change: Deliver higher profit.
Speaker Change: Growing by 82% year over year.
Speaker Change: Uh huh.
Speaker Change: Two four and.
Speaker Change: By 53 point.
Speaker Change: 6% year on year hopefully.
Yeah.
Speaker Change: Our 50 50 joint venture MCU power, we sell large power.
Speaker Change: Generator.
Speaker Change: <unk> profit.
Speaker Change: The previous year.
Speaker Change: All right.
Speaker Change: <unk>.
Speaker Change: Relatively flat.
Speaker Change: Two four compared to losses last year.
Speaker Change: Generally very good sales remain robust.
Speaker Change: Additionally, <unk>.
Speaker Change: Just the public subsidiary and Roche drive policy subdivision.
Speaker Change: Thank you.
Speaker Change: Operation and development for MTO.
Speaker Change: Thank you.
Speaker Change: As part of this development production and sales of <unk> series 4000 guests in J D.
Speaker Change: Again shipment.
Speaker Change: But.
Speaker Change: Manufacturing capability.
Speaker Change: Accordingly, the cadence of that spending.
Speaker Change: Operator.
Speaker Change: In two zero to four E.
Speaker Change: Power system Island.
Speaker Change: Yeah.
Speaker Change: Unless production operations.
Speaker Change: He tried pilots will mainly produced the ratio diesel engine.
Speaker Change: And the other products on the off road applications.
Speaker Change: We have additionally, we entered into a comprehensive strategic cooperation agreement.
Speaker Change: In loans.
Speaker Change: Hugh.
Speaker Change: Okay Blah blah blah.
Speaker Change: The theory, but not with us.
Speaker Change: This strategy cooperation consists of the grant and provision of technology licenses.
Speaker Change: Well, then supply and related support.
Speaker Change: And so it's just for the construction of the factory.
Speaker Change: Simon.
Simon: In law was in technology licensing rights from Southern China and Japan.
Simon: It will be primarily trucks buses and other publisher vehicles MLR.
Simon: <unk> will have exclusive right sales rate for the licensing yet in the window market.
Simon: Along with priority of sales right.
Speaker Change: Andres and South Korea.
Simon: These licenses are valid for seniors.
Speaker Change: Total licensing fee.
Speaker Change: To start a study at Millen.
Speaker Change: Operating in China, what challenges you think EBIT before.
Speaker Change: According to the National Bureau of Statistics, Chinese GDP increased by five percentage points year over year.
Speaker Change: Total value plus four rosewood trade.
Speaker Change: Strip out Australia.
Speaker Change: Sounds good.
Speaker Change: Creating a trade surplus of almost one trillion.
Speaker Change: Last year for 30 days.
Speaker Change: They love Brookdale Epsilon continue to decline to 37 four.
Speaker Change: In the second half of anything at all or R&D.
Speaker Change: Felicia, including capitalized.
Speaker Change: Increased by 21, 2% RMB 136 million all yourself.
Speaker Change: London is representing a 2% revenue was up two four as compared to RMB $599 2 million, representing six 8 million.
Speaker Change: Of revenue.
Speaker Change: Two three.
Well I'm going to just look for Gogo.
Speaker Change: Just included.
Speaker Change: <unk> costs were RMB, one $2 billion. This is.
Speaker Change: $5 4 million, representing six 2% of revenue.
Speaker Change: RMB, one 1 billion.
Speaker Change: $5 nine San revenue in FY <unk>.
Speaker Change: We continue to improve the efficiency and performance of all of this will fix that.
Speaker Change: Airport.
Speaker Change: And initiated the development of the next generation.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: And Oliver Thank you Mark.
Speaker Change: We continue with the development of energy products, including products using.
Speaker Change: It fuels such as hydrogen technologies.
Oh I'll, let you know.
Speaker Change: New LNG powered Tracy.
Speaker Change: So hydrogen powered combustion engine.
Speaker Change: And off gas powered generation system and a production plan is utilized.
Speaker Change: Sorry, just to generate power and eliminate grid.
Speaker Change: Okay emissions.
Speaker Change: The model Y E zero seven.
Speaker Change: Hi, Brittany.
Nancy: This was chosen to power and diesel gas electric hybrid buses and Nancy.
Speaker Change: The first is diesel Joe.
Nancy: Using our hydrogen fuel cells.
Speaker Change: Commercial operations in Beijing.
Nancy: And most recently a new foray into enhancing will follow up with us.
Speaker Change: Yeah, Hi, stride in Q T 700.
Nancy: Goodbye.
Nancy: These shops to improve device performance.
Nancy: In recognition of these achievements well.
Nancy: Well as you said I just hydrogen.
Nancy: Well see transmission company limited.
Nancy: Operating subsidiary in China was appointed as a member of the deal.
Nancy: Hydrogen combustion engine innovation consortium.
Nancy: Sales of China Internet.
Nancy: Russia and just the size.
Nancy: The courage and peripheral fallen.
Nancy: She thought leaders and key employees of each has any subsidiary.
And Budd.
Nancy: Okay.
Nancy: Thank you.
Nancy: Two zero control.
Nancy: The plants are both a reward and incentive.
Nancy: Its senior leader.
<unk> thousand.
Nancy: Well they are continued contributions and dedication.
Nancy: The indication on loyalty and hard.
Nancy: The.
Nancy: Company.
Nancy: In early June we adopted our first share buyback plan whereby repurchase a total of $3 3 million shares.
Nancy: I will take the total cost of $39 8 million.
Nancy: In addition.
Nancy: The company paid a cash dividend of <unk> USA.
Nancy: And the ordinary shares on August 28.
Nancy: Paul.
Speaker Change: This share repurchases and dividend distribution demonstrates the company's confidence in our future revenue profit and cash flow generation.
Nancy: Our commitment to building shareholder value.
Speaker Change: Despite the chairs reachable.
Speaker Change: Cash and bank balances were RMB, six 4 billion or U S dollar.
Speaker Change: 195 million.
Speaker Change: But December Paul.
Igloo: I would now like to turn the call to let them do such as Igloo, Chief Financial Officer, who will provide more details on the financial results.
Speaker Change: You may begin your remarks.
Speaker Change: Thank you Wally now let me review our unaudited.
Speaker Change: Six months results.
Speaker Change: But the deferred 2034.
Speaker Change: Revenue was RMB, eight 8 billion or U S dollar $1 2 billion compared with RMB eight 9 billion.
Speaker Change: 2023.
Speaker Change: The total number of LNG, so second half strengthening for increased by <unk>, 9% to one.
Speaker Change: 163000 kind of retreat units compared with 147700 units in second half 2023.
Speaker Change: The increase was mainly due to higher sales in truck.
Speaker Change: Industrial and marine and power generation markets.
Speaker Change: The better performance in truck and bus engine sales.
Speaker Change: Despite a decline by <unk>, 9% and sales of commercial vehicles.
Speaker Change: Excluding gasoline and electric powered vehicles.
Speaker Change: Third to second half doing Dmitry as reported by the China Association of automobile manufacturers <unk>.
Speaker Change: Yes.
Speaker Change: Gross profit increased by 14, 3% to RMB, four 1 billion or U S dollar one.
Speaker Change: What part of $95 7 million from RMB. One 2 billion is it can have to retreat.
Speaker Change: The increase was mainly due to higher units just warning combined with lower material costs overall.
Speaker Change: Overall gross margin.
Speaker Change: 15, 9% in second half 2024, okay.
Speaker Change: <unk>, 9% in second half 2033.
Speaker Change: Other operating income increased by 71, 2% to RMB.
Speaker Change: $145 million or U S dollar $55 9 million compared with RMB $206 2 million in second half 2033.
Speaker Change: The increase was mainly due to higher Darwin, Brian Hi.
Speaker Change: I repeat.
Speaker Change: Texas and recognition of technology licensing fees.
Speaker Change: Research and development R&D expenses increased by 35, 6% to RMB $591 1 million or U S. Dollar $32 2 million compared with RMB $475 million in second half 2023 due to.
Speaker Change: How are you more cost 18 payment despite new R&D projects.
Speaker Change: Hello.
Speaker Change: Including capitalized costs were RMB 736 million or U S dollar.
Speaker Change: Media, representing eight 2% of revenue in second half going to be for us.
Speaker Change: <unk> two.
Speaker Change: RMB $599 2 million, representing six 8% of revenue in second half 2013 treatment.
Speaker Change: Sorry in January.
Speaker Change: And administrative SG&A expenses increased by 35, 1% to RMB, one 1 billion or USD 147 million from RMB $844 6 million, it's going to have two zero to treat.
Speaker Change: This increase was mainly due to higher treat we suppose prohibition and Hyatt traveling but now a startup expenses compared with the same period last year.
Speaker Change: SG&A expenses represent the drop of revenue also can help to into the fall compared with 94 five.
Speaker Change: 5%.
Speaker Change: Paul It's a good healthy dmitry.
Speaker Change: Operating profit declined to RMB alright.
Speaker Change: <unk> dollars 1 million or U S dollar $22 3 million from RMB 231.
Speaker Change: $1 8 billion in second half turning to AG.
Speaker Change: The operating margin was one 8% compared with 245% is doing great.
Speaker Change: Right.
Speaker Change: Finance costs decreased by 34% to RMB, $37 1 million or U S. Dollar $5 2 million from RMB $46 5 million in second half <unk>, primarily due to lower abuse. These campaigns.
Speaker Change: The share of financial results of the ship.
Speaker Change: Joe ratios grew by <unk>.
Speaker Change: It is 2% to a profit.
Speaker Change: RMB, $58 5 million or USD, $8 1 million or RMB.
RMB $32 5 million.
Speaker Change: Good housekeeping and dietary.
Speaker Change: The improvement was mainly driven by higher properties empty you tried power company limited.
Speaker Change: And to your chart.
Speaker Change: Recently <unk> engine company limited.
Speaker Change: Why is the engine and quasi program.
Speaker Change: Automotive.
Speaker Change: Tony.
Speaker Change: Program You chart achieved profitability in second half delivery for OPEC to a loss in the same period last year.
Speaker Change: Income tax was RMB $36 4 million or U S. Dollar tree that would be good for babies RMB $37 9 million.
Speaker Change: Great.
Speaker Change: Net profit attributable to equity holders of the company was RMB $62 7 million or USD, <unk> 5 million compared with RMB.
Speaker Change: $7 1 million in second half 2033.
Speaker Change: Basically.
Speaker Change: Sure well RMB $2, one night or U S dollar compared with RMB 262 in second half going to retreat.
Speaker Change: Basically the earnings.
Speaker Change: For sure.
Speaker Change: Two four.
Speaker Change: <unk> were based on a weighted average.
Speaker Change: That is that would meet it.
Speaker Change: Gregg powers that economy for shares and $40 million.
Speaker Change: 8290 shares respectively.
Speaker Change: Now you reviewed I'm wondering if I should stop sort of eastern Europe.
Speaker Change: December 31st tools are twofold.
Speaker Change: Revenue was RMB $19 1 billion or U S. Dollar $2 7 billion compared with RMB 18 billion in financial year, two zero to trees.
Speaker Change: The total number of LNG sold in furniture year increased by 15, 7% to 356586 units compared with 313482 units in FY <unk>.
Speaker Change: Zero to four.
Speaker Change: The increase was mainly due to higher sales in the truck, Bob industrial and marine and power generation markets.
Speaker Change: The stronger performance in truck and bus engines juice was achieved despite a two 6%.
Speaker Change: <unk> is just for commercial we just excluding electric power because I'm sure you do two to four as reported by <unk>.
Speaker Change: Yes.
Speaker Change: Gross profit increased by <unk>, 8% to RMB, two 8 billion or.
Speaker Change: Our U S dollar tree.
Speaker Change: $392 1 billion for babies RMB, two 5 billion.
Speaker Change: That's why two zero to three.
Speaker Change: Gross margin increased to 14, 4% compared with $14 one per se, we're actually up towards your poultry.
Speaker Change: The increase in gross margin was mainly attributable to higher revenue from increased unit volume.
Speaker Change: And continuing cost reduction initiatives, partially offset by greater repo and OAS basis.
Speaker Change: Hum.
Speaker Change: Increased by 31% to RMB 535, sorry, RMB, $535 7 million or U S dollar one.
Speaker Change: 1 million compared with RMB $442 4 million in financial year, two zero to treat the <unk>.
Speaker Change: Increase was mainly due to higher common growth I didn't repeat.
Speaker Change: Axis and recognition of <unk> licensing fees.
Speaker Change: R&D expenses increased by <unk>, 3% to RMB, four 7 billion or U S dollar one.
Speaker Change: 137 media for babies, RMB $876 6 million in financial year, two zero to treat <unk>.
Speaker Change: D H repeatable to hire more cost.
Speaker Change: In payment offer at this point, the new R&D projects.
Sure for the new business initiatives.
Speaker Change: The efficiency and performance, obviously national six tier four emission standard program.
Speaker Change: Marine power generation applications.
Speaker Change: One thing.
Speaker Change: Energy solutions.
Speaker Change: Okay.
Speaker Change: Well the idea expenditures, including to blast costs were RMB, one 2 billion of U S dollar and $5 4 million, representing six 2% of revenue for financial year, two zero to four.
Speaker Change: Compared with RMB, one 1 billion, representing $5 9 billion at the portfolio, representing five 9% of revenue for this year two zero to treat.
Speaker Change: SG&A expenses were RMB, one 2 billion or.
Speaker Change: Our U S dollar $252 1 million, representing 95% of revenue in FY <unk> to four.
Speaker Change: Compared with RMB, one 5 billion, representing a 2% revenue in FY <unk> to.
Speaker Change: Treat.
Speaker Change: This increase was mainly due to higher receivables provision and how you're traveling less and now instead of expenses for <unk>.
Speaker Change: Felicia.
Speaker Change: To treat.
Operating profit was RMB $597 million or U S dollar tree meeting.
Speaker Change: Compared with RMB $609 4 million in financial year, two zero to treat.
The margin was three 1% compared with three 4% in financial year, two zero to treat.
Finance costs decreased by 32, 2% to RMB $78 million or U S dollar $10 8 million from RMB.
Speaker Change: Or to give you information you have to treat primarily due to lower volumes is probably.
Speaker Change: The share price your results.
Speaker Change: It's a joint ventures increased by three.
Speaker Change: Three 6%.
Speaker Change: Alright, and $1 5 million or U S dollar $14 1 million compared with income of RMB $52 1 million in Brescia tools, you'll do treat.
Speaker Change: The improvement was mainly driven by higher profits in <unk>.
Speaker Change: Alright.
Speaker Change: I should note.
Speaker Change: <unk> engine program.
Speaker Change: <unk> achieved perfect Brady in financial tools are twofold compared to a loss last year.
Speaker Change: Interest expense declined by 13, 3% to RMB.
$38 8 million U S dollar.
Speaker Change: $90 million as compared.
Speaker Change: Babies RMB $148 5 million in financial year, two zero to treat.
Speaker Change: Net profit attributable to China, <unk> shareholders was RMB, $308 1 million or <unk>, $44 9 million compared with RMB $285 5 million in financial year, two zero to treat.
Speaker Change: Basic and diluted earnings per share.
Speaker Change: $8, two one or U S dollar $1.14 compared with RMB $6 99 in financial year, two zero to treat.
Speaker Change: Basic earnings per share for FY <unk> for FY <unk>.
Speaker Change: Are there with a ratio, but ignite 305000.
Speaker Change: 753.
Speaker Change: Sure.
Speaker Change: And for immediate 850000.
Speaker Change: And 290 shares respectively.
As of December 31st two zero to four the company's outstanding shares.
Speaker Change: Following a share buyback plan reduced to 37.
Speaker Change: 518302.
Speaker Change: From $40 million.
Speaker Change: <unk> 8000.
Speaker Change: For Nike shares as of December 30, 120, Daughtry <unk> will go through our balance sheet highlights as of December 31st two to four.
Speaker Change: Cash and bank balances were RMB, six 4 billion or USD, <unk> 5 million compared.
Speaker Change: Babies RMB 6 billion at the end of financial year, two zero to treat.
Speaker Change: And Bill receivables were RMB, eight 8 billion or U S. Dollar $1 2 billion compared with RMB seven 8 billion at the end of <unk> to treat.
Speaker Change: Inventories were RMB, four 7 billion or USD, $647 5 million compared with RMB four 6 billion.
Speaker Change: No for next year to do treat.
Bills receivable.
Speaker Change: RMB eight 5 billion or USD, one point Toby did for pace RMB seven 6 billion at the end of.
Speaker Change: Financial year, two zero to treat.
Speaker Change: Short term and long term loans and borrowings.
Speaker Change: RMB, two 5 billion or U S dollar tree around $49 1 billion compared with RMB, two 5 billion.
Speaker Change: In financial year <unk> to treat.
Jamie: I will now turn the call over to Jamie for a traumatic for Q&A section.
Speaker Change: Thank you Tien tsin.
Speaker Change: Please note some officers of China, you Chi are remotely calling into the conference call. This may result in a slight delay in providing answers to some questions. We.
Speaker Change: We apologize for any inconvenience and thank you for your patience.
Speaker Change: With that operator, we are ready to begin the Q&A.
Speaker Change: Thank you.
Speaker Change: A reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.
Speaker Change: To ask a question via the webcast. Please type it into the box and click submit please standby, while we compile the Q&A roster.
One moment please for our first question.
Speaker Change: We will now take our first question from the line of <unk> from heightened Securities. Please ask your question.
Speaker Change: No.
Speaker Change: You mean from a hydro securities. Thank you very much for having me.
Speaker Change: So I have two questions number one is the value of our data center generally in our business. So it looks like your JV with the MTA you got a very good result in a 24, but so I'm just wondering how many units did you sell.
Speaker Change: Those sites from both <unk> and <unk>, you are from China and control inches and from and can you JV. Yes. This is my question number one thanks.
Kelvin Lai: Okay Kelvin litle.
Speaker Change: Question. Please.
Kelvin Lai: Okay.
Kelvin Lai: Hi.
Kelvin Lai: Regarding on the.
Kelvin Lai: Johnson <unk> Johnson engine sales and in home.
Kelvin Lai: 2024.
Kelvin Lai: Our <unk> joint venture sales is about.
Kelvin Lai: Good morning, Jim and your unit.
Kelvin Lai: But.
Kelvin Lai: This is including not only.
Kelvin Lai: All of our data center is including the <unk> and other applications.
And for the <unk>.
Kelvin Lai: The high horsepower, we saw last year is about $1. Some and then I'll ask about 800, yes onto cannot yet again.
Kelvin Lai: Again in any.
Kelvin Lai: Litigation yet.
Kelvin Lai: Okay alright. Thank you so just a continuation of the supply chain. So it looks like MTO JV was very profitable and so I wonder what is the profitability of your of this type of generators in the G N Y C L.
Kelvin Lai: In terms of like gross margin, you know net net margin or something like that.
Kelvin Lai: Thanks.
Kelvin Lai:
I'm, sorry that I cannot be cannot Cody.
Kelvin Lai: The margin of the two different type of engine because that Andy.
Kelvin Lai: In terms of the of.
Kelvin Lai: The output of all in terms of the performance in both engine and then Ken.
Kelvin Lai: Meet with PD requirement of the data center requirement and they all had.
Kelvin Lai: So what are you seeing in Apollo range.
Kelvin Lai: And the.
Kelvin Lai: <unk> four major stream in IOP.
Kelvin Lai: Data center construction and so.
Kelvin Lai: I would take this way and I'd be I'm to use it because of the international branding and that there will be some.
Diane: <unk> and Diane.
Diane: We'd like to buy to buy them and but from a price wise and then I cannot make any comment.
Diane: Okay. Okay understood. Thank you.
Diane: So my question number two is what is the exact exactly growth rate on the data center generator business in 'twenty five.
Diane: If you possible could you describe separately for GM <unk> and it's in the JV business I Wonder if there is any difference in what is the expected growth rate in 'twenty five.
Diane: Uh huh.
Diane: I would tell you this way.
Diane: No matter the <unk> show on <unk>.
Diane: Joint venture and the order book for Chinese unifying sort of issue and then do we are we are actually and then we.
Diane: We are we are refusing to an order because we cannot take any.
Diane: Due to the capacity is constrained.
Diane: Due to the component supply.
Diane: But I would say and then the in the China Chinese switch.
Diane: It's a very low compared to last year.
Speaker Change: At least 30% yes.
Diane: Okay, great. Thank you.
Diane: So just one more additional question so it looks like the profit attributed to the minorities in the second half of 'twenty four was pretty high I just talked about it it looks like it was like a 27% of the total profit so would that be a thompson battle in the future because in the past it looks like it was like 30%.
Diane: Thanks.
Diane: Okay, Let me answer that question.
Diane: Compared to the POS I think.
Diane: The performance of our associate companies has been so let's call it better.
Diane: Particular npls because.
Diane: Yes.
Diane: Too early yet.
Speaker Change: That's a big growth of demand for the data centers.
Diane: That's right.
Diane: And at the same time.
Diane: So take companies driving just.
Diane: There are a couple of them.
Diane: Good luck.
Diane: No.
Diane: A lot of the profitability. So that's why this year, we're seeing a lot just.
Paul: Hi, Paul.
Paul: Number four.
Diane: All right.
Diane: Firstly.
Diane: It does.
Diane: Substation.
Diane: Okay, alright, thanks, I'm sorry, just one more question. So looks like there was the item called other operational profit or something which is quite a big it was like a <unk>.
Diane: 500 million RMB in plenty for so.
Diane: I wonder how to expect that in the future. So is that going to be like for full proportional to your revenue or so.
Diane: Something like that thanks.
Diane: Sorry can you repeat the question I missed that.
Okay.
Diane: Alright, Thank you repeat your question.
Diane: Okay.
Diane: Pretty big item income statement called.
Diane: And finally.
Speaker Change: Alright, we have lost the line of Amy So we'll take our next question from Paul <unk> from pinpoint asset management. Please ask your question Penguin.
Diane: Hi.
Paul: Actually I have a question.
Diane: Are we going to raise our price since that.
Diane: <unk> four I think.
Diane: Two megawatt generators in China.
Diane: <unk> is very strong and as we know the supplier.
Diane: In the future both regarding 2005 and also to fix now we're going to race.
Diane: Price for the generator.
Diane: That's my first question.
Diane: Well it does a resin price.
Diane: Thanks.
Diane: We will of course there'll be some improvement to the pricing.
Diane: As it stands now we haven't had any.
Diane: The complexity, increasing the big way, but we believe there will be some improvement in pricing.
Diane: Okay. Okay got you so.
Diane: Yes.
Diane: And then we are going to increase our price is not right now maybe in the future okay.
Diane: My next question is.
Diane: Are we going to produce generator sets or the module by ourselves since we only produce generator right now so.
Diane: Are we going to do so.
Diane: Sure.
Diane: Alright.
Diane: The third place, but actually engine manufacturer.
Diane: We only produce libre.
Diane: Let's see.
Diane: Paul.
Diane: Our OEM customers.
Diane: If there is any.
Perhaps the most material one.
Diane: The producer.
Diane: But that would not be it may give us.
Diane: Okay.
Diane: Okay. Okay. Gotcha question. So my last question is just for that.
Diane: We already produce anyway as several hundred.
Speaker Change: Andre generators.
Diane: In the last year so.
Diane: What is it.
Diane: <unk> claim for 2035, and all sorts of alternatives how are we going to increase it by a very strong number for example about a 100%.
Diane: Can you.
Speaker Change: Can you give us some color.
Diane: Question, Yes.
Diane: Kelly on the thing that question Kevin.
Diane: So are we going to expand our capacity for a very large number.
Diane: In the future.
Diane: In this year.
Diane: Yes.
Kevin: Kevin. Please I'm sure you know, we have depending on and to increasing our <unk> to expand our capacity.
Kevin: Since last year and the but the two.
Kevin: The desk to dinner.
Kevin: Hum.
Kevin: You've got the Korea, and now we have to consider associated regarding how to.
Kevin: We are increasing our supply of the costing for the for the for the Big engine on the lightest and employ an engine.
Speaker Change: Sure Nathan.
Kevin: Sure.
Kevin: Thank you.
Kevin: The warranty of the machining Center and then we will be.
Kevin: We will be a rifle you try and then buy the CSO.
Kevin: <unk> kind of increasing our capacity.
Kevin: And.
Kevin: We will be gradually ramping up and so the next year and then we will be about.
Kevin: 35%, 40% increase and then we will be in a food up on the 297. So this is our current pending on hot tried to meet up with the market demand.
Kevin: Oh, Okay. Okay got you so.
Kevin: You just mentioned that the gross rate this fall.
Kevin: 240% so at least for this year, we are going to have more down lifestyles.
Kevin: Jim two megawatts generators capacity this year.
Kevin: It's more than what it's all good.
Kevin: Yeah Yeah.
Kevin: Got you got you and I believe Thats all my questions. Thank you. Thank you.
Kevin: Thank you.
Speaker Change: For the benefit of all participants please limit yourself to three questions at the time. If you have follow up question. Please request to rejoin.
Speaker Change: We will now take our first question from the line of Andy Lee from Daiwa. Please ask your question Andy.
Speaker Change: Okay.
Speaker Change: Hi, Thanks for taking my question. This is Andy Lee from Daiwa.
Yes, I just wanted to quickly clarify I think I heard another 30% capacity up in seven right.
Speaker Change: Yeah.
Speaker Change: By 2026.
Speaker Change: Okay.
Yes.
Speaker Change: Hello.
Speaker Change: Alright.
Speaker Change: Yes, Scott.
Speaker Change: Capex should be about.
Speaker Change: The capacity will come on.
Speaker Change: Onstream biodiesel.
Speaker Change: Okay.
Hey, Tahira.
Speaker Change: Okay.
Speaker Change: The lawsuit.
Speaker Change: Dialogue, Kevin can you hear.
Speaker Change: No I can't hear anything yet.
Speaker Change: So we have lots of it.
Speaker Change: We have lost the line of Andy If you have further question. Please request to rejoin the queue.
Speaker Change: Turning back to the presenters in the room for webcast questions.
Speaker Change: Okay.
Speaker Change: Okay. There are a few questions program cost.
Speaker Change: The first I'm going to do that now is the surge in demand is driven by AI data centers.
Speaker Change: Well that had impact on that.
Revenue growth for <unk>.
Speaker Change: Give us a color on both revenue and net profit impact from the yard.
Speaker Change: Yes, there's a big demand now.
Data centers.
Speaker Change: Let's start with our business.
Speaker Change: We anticipate to see growth in it significant growth as we discussed earlier, so yes that will have an impact on that.
Speaker Change: It doesn't have an impact on our revenue growth.
Speaker Change: So look for that purpose.
Speaker Change: Segment.
Speaker Change: No.
Speaker Change: Is that really tied to overall.
Speaker Change: Before revenue.
Speaker Change: Paul.
Speaker Change: Regulatory relief that that part of the.
Speaker Change: That information.
Speaker Change: And I.
Speaker Change: I apologize value and secondly, how much.
Speaker Change: Revenue. It is for this segment now the profit net profit for this segment.
Speaker Change: So the next question is from <unk>.
Speaker Change: Congratulations on your great performance currently.
Speaker Change: Uh huh.
Speaker Change: Explosive growth in the Capex up major Chinese Internet companies led to a significant traditional power generators.
Speaker Change: And.
Speaker Change: So let's take the other side that might we may get clients.
Speaker Change: That room for price increase.
Speaker Change: What's your future expansion plan can you share your outlook for these okay.
Speaker Change: The business of IDC sector this year.
Speaker Change: Kevin.
Speaker Change: Your line.
Speaker Change: Sorry.
Speaker Change: Also descriptions.
Speaker Change: Can you repeat the question.
Speaker Change: Okay, let's deliver I'll tell you that okay.
Speaker Change: Yeah, Okay. Okay, alright, so sorry, Tobey is calling for China.
Speaker Change: <unk> has seen a question Okay, let me answer a little bit right. So.
Speaker Change: Domestic data center market it may get clients, yes.
Speaker Change: Perfect.
Speaker Change: China's domestic bucket and you have all those from some of the big.
Speaker Change: They looked at those.
Speaker Change: As the operator in China.
Speaker Change: Also no VW is expected to the southeast Asian market has felt some of that yes if.
Speaker Change: Is there a room for price increase we think there'll be Portland, but again a lot of this data centers.
Speaker Change: Hey, Paul.
Speaker Change: Phil.
Speaker Change: <unk> achieved through positive.
Speaker Change: The Tampa tender prices that you'll Python spattered right. So it looks like Brooklyn.
Speaker Change: There'll be a huge improvement.
Speaker Change: Thanks, everybody and also increase the price of call the knee. So it's still very very competitive industry.
Speaker Change: Why do you still see Jay Bircher play we are building capacity, okay that the taper through the year.
Speaker Change: The huge demand saw this year.
Speaker Change: So we expect that capacity will come on.
Speaker Change: Stream Nexia until just two 6%.
Speaker Change: While both <unk> and <unk>.
Thank you Sherry.
Speaker Change: Overall outlook for diesel Jamie This is Jeff.
Speaker Change: The business of ITC sector this year.
Speaker Change: We believe this is going to be specifically drove that golar demand, though there still.
Speaker Change: And this is the one that is not.
Speaker Change: Satisfied that's obvious yet.
Speaker Change: Kevin.
Speaker Change: Elliot.
Speaker Change: The order book is full for the year so.
Speaker Change: We will expect to see more demand next year I would say, but by then the <unk> for most of the.
Speaker Change: Thanks Richard.
Speaker Change: This segment is excellent with appetite increase accordingly, although we believe that the level.
Speaker Change: A lot of the demand will be satisfied with a CLO in the next two years.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: R&D does next question is from.
Speaker Change: That's helpful.
Speaker Change: Hey, Todd.
Speaker Change: R&D expenses grew believe 320 to four.
Speaker Change: Revenue West up our R&D efforts.
Speaker Change: SaaS growth should we expect in two zero to five.
Speaker Change: Yeah, Okay. So lula discussion.
Speaker Change: Uh huh.
Speaker Change: A bunch of all impressions.
Speaker Change: We respect the two to.
Speaker Change: Finally, we remain pretty much the same all or slight increase why put aside we are balancing that know the market demand right. So good commercial retail ABF also marine power generation.
Speaker Change: And Pasha, and so forth, so sylvia, but I think that the spend but overall.
Speaker Change: Spending will continue we'll continue to maintain that.
Speaker Change: Proof of our engine efficiency and performance.
Speaker Change: We will not slow down we'll continue to do that and.
Speaker Change: But overall a space perspective be able to maintain that we will have a moderate increase.
Speaker Change: Yeah.
Speaker Change: Okay. So next question I gave relative Burford, thus management expanded growth acceleration includes notified on the back of a national six.
Speaker Change: That should help our trust trading policy.
Speaker Change: Yes.
Speaker Change: <unk> saw some acceleration.
Speaker Change: But it's very hard to determine how much that will be rolled out.
Yeah Charles.
Charles: The last question on the web site.
Speaker Change: Keith.
Speaker Change: SG&A expense increased a lot did.
Speaker Change: I could have two fault could you please give us some guidance on the trend going forward.
Speaker Change: Okay I will take this pressure.
Speaker Change: Lastly, thank you for question.
Speaker Change: In fact, our second half to show to fall our SG&A expenses are Mindy.
Speaker Change: The increase mainly caused by the.
Speaker Change: We see it both prohibition Brian.
Speaker Change: So.
Speaker Change: We have accounted for that two to four.
Speaker Change: Although the market.
Speaker Change: Challenging.
Speaker Change: Correct.
Speaker Change: Are we better.
Speaker Change: Two zero to five in terms of our treat receiver probably shows so other than that.
Speaker Change: The spending that.
Speaker Change: But we must meet the same as the 224 level, while tossing out when we continue to expand our.
Speaker Change: Market.
Slight increase from that perspective.
Speaker Change: Yeah.
Speaker Change: Great. Thank you we will now take our next phone question from the line of Andy Levi from Daiwa. Please ask your question Andy.
Andy Levi: Hi, I'm back.
My line was cut off.
Andy Levi: My phone work appropriately at this time.
Speaker Change: Yes, thanks for the clarification for so my question is on the ASO share you think JV profit.
Speaker Change: These accounted for over 30% of your second half profit. So I was just wondering could you. Please breakdown how much is from <unk> <unk> and also I know you have different lines of production lines for empty you. So can you walk us through.
Speaker Change: <unk> helpful.
Speaker Change: <unk> power generators iPad coupled for Datacenters. Please.
Kevin: Kevin you want take that question.
Speaker Change: Okay.
Speaker Change: I mean.
Speaker Change: Regarding on the product wise.
Speaker Change: The MQ border at the moment and then we had different cinder configuration. So we hit the trough.
Speaker Change: 12 cylinder 16, new <unk> <unk> and also <unk>.
Speaker Change: I said.
Speaker Change: <unk>. So I think then I would say I would say it this way.
Speaker Change: And then the better the.
Speaker Change: To return.
Also.
Speaker Change: Ltd.
Speaker Change: I mean, the competition because of the high horsepower engine.
Speaker Change: <unk>.
Speaker Change: I mean, but it will always and that depends on the on the customer requirement. So.
Speaker Change: Our joint venture.
Speaker Change: We are we were manufacturing then the according to the to the customer spec.
Speaker Change: But of course in a weekend.
Speaker Change: Product mix and in turn more high power high power engineers, they will be more benefit to the to the operation.
Speaker Change: Yes.
Speaker Change: Let's say for example.
Speaker Change: A number or percentage did MTO in China contributed to our profit.
Speaker Change: Sorry, I cannot give you the particulars here.
Speaker Change: Okay.
Speaker Change:
Speaker Change: Okay. So do you do you start to negotiate with that data.
Speaker Change: And what's the what does the competition look like did you encounter any Chinese peers.
Speaker Change: Or.
Speaker Change: Kind of competition.
Speaker Change: Uh huh.
Speaker Change: I mean, the general market.
Speaker Change: It's very very competitive because.
Speaker Change: <unk>.
Speaker Change: In the China and India.
Speaker Change: It's always as is.
Speaker Change: Open tender and then from from the Telecom telecommunication operator.
Speaker Change: From the AI and then put some move from the from the beta dance and initial.
Tom Spurn: As Tom Spurn.
Speaker Change: I mean the.
Tom Spurn: We wanted to Andy.
Tom Spurn: We understand that.
The arena that once the pie stay out.
Tom Spurn: So.
Tom Spurn: I would like to say is.
Tom Spurn: Where it vies competition and that's why in Endo.
Tom Spurn: The.
Tom Spurn: Yes.
Speaker Change: Difficult to raise the bar the pricing at this stage, even though the very high demand because I knew we had to.
Speaker Change: Make sure that reach and win the beat of the of the major projects and then from those key payers because you know.
Speaker Change: In one single tender it could be up to 200 free until financial engines. So.
Speaker Change: That's just a very carefully and then the regarding on the on the pricing so.
Speaker Change: Competition is two two fleets small yes.
Speaker Change: Got it thanks for all color.
Speaker Change: And maybe lastly on your capacity expansion, what keeps you up at night and day.
Speaker Change: Bottleneck you all spent most of his time with dressing on like maybe superalloy and call now it has to lie.
Speaker Change: Yeah I appreciate if you can share any color on this thanks.
Speaker Change: So little bit different between the <unk> and MTO joint venture and huge Orange actually we had.
Speaker Change: Proper multi supply chain because.
Speaker Change: There is still some component.
Speaker Change: I mean, we are imported from Germany.
Speaker Change: And.
Speaker Change: Yes.
Speaker Change: I mean, that's a salt taste of some of the key components from our from our parent company from our partners.
Speaker Change: This is a handicapped at the overhaul assembly of the engine.
Speaker Change: So I mean, our panel and two and then there also.
Speaker Change: Doing some more investment in and then also what that's a pilot and then should I tried to easy up to.
Speaker Change: The supply chain issue hopefully by next year and then we can have more.
Speaker Change: Our available resource and then we.
Speaker Change: Can take more engine orders.
Speaker Change: Any chance you can use the Chinese domestic supplier in replace of those imports.
Speaker Change: Uh huh.
Speaker Change: We actually we have what we call the localization program and so we will localize and then.
Speaker Change: Majority of the.
Speaker Change: Majority of the engine component in China.
Speaker Change: And but.
Speaker Change: There is some some of the really key component and then the.
Speaker Change: Our potline at <unk>, the ROI and then to not to localize and then we had to.
Speaker Change: Buy from them anyway. So this is some somewhat let some time yet.
Speaker Change: Got it got it that's helpful.
Speaker Change: And also congratulations on the results.
Speaker Change: Thank you guys.
Speaker Change: Thank you and our next question comes from the line of <unk> <unk> from Hi, Tom Securities. Please go ahead.
Speaker Change: Hello. This is again, thank you very much for having me again.
Speaker Change: So I was cut off so I'm trying to continue with my question.
Speaker Change: Flamel from Jan Thomas statement there.
Speaker Change: Item called other operating income, which is 517 6 million in the.
Speaker Change: Typically you have plenty of floor. So I wonder if this value is proportional to your revenue or if there is other factor that is impacting that so how do we expect.
Speaker Change: Got that and quantify or in the future. Thanks.
Speaker Change: Hi, guys. Thank you for questions.
Speaker Change: Yes.
Speaker Change: Laurie.
Speaker Change: We have deep.
Speaker Change: Darwin driving income right nor information.
Speaker Change: So that is that based on the revenue.
Speaker Change: The income that we recognized recording to the projects.
Speaker Change: During the period.
So tobey the timing so the second part is the.
Speaker Change: The rebate right so there.
There is a tax policy.
Speaker Change: For us it all at.
Speaker Change: It was technology soon okay.
Speaker Change: Or are we are eligible for that incentive so basically we did a big point of view.
Speaker Change: Thanks, Alright, so a big part.
Speaker Change: Uh huh.
Speaker Change: For Tokyo twofold.
Speaker Change: So that's from our understanding that would be subject to the applications is time.
Speaker Change: So whilst reprehensible.
Speaker Change: <unk> inclusive two five if the assets are fully applied.
Speaker Change: So.
Speaker Change: Another part is the.
Speaker Change: A licensing fee right.
Speaker Change: Right now given all right. So we had recognized household debt.
Speaker Change: Paula bright indusium twofold.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: The beat it.
Speaker Change: Increase in our other income.
Speaker Change: Okay.
Speaker Change: So can we say dmitry the majority of this value as recurring or I mean, what is per ton nature of this matter, which is non recurring in the future.
Speaker Change: Okay great.
Speaker Change: Such a defect.
Speaker Change: Hum.
How much are recognized based on the drug.
Speaker Change: Project.
Speaker Change: So that is probably oh.
Speaker Change: The remaining pretty much flat right.
Speaker Change: <unk>.
Speaker Change: Subject to verification and also subject to the.
Speaker Change: Upward offset right.
Speaker Change: Yet to be determined.
Speaker Change: Although I think fee income information we recognized.
Speaker Change: Half of these problems.
Speaker Change: Alright, but it needed.
Speaker Change: So that means we shall see suddenly in two zero to five.
Speaker Change: Okay, I guess I see thanks.
Speaker Change: <unk>.
Speaker Change: Thank you.
Thank you.
Speaker Change: I'll now turn to the rueful webcast.
Speaker Change: No not yet.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: So final question from from the.
Speaker Change: So that cost.
Speaker Change: Next question down.
Speaker Change: Yeah.
Speaker Change: The problem.
Speaker Change: Okay.
Speaker Change: Hello, Dave.
Speaker Change: Okay.
Speaker Change: Are there particular parts of the body.
Speaker Change: Okay.
Speaker Change: I realize also that both MTO so.
Speaker Change: That is a prospect that we buy from Germany.
Speaker Change: Which will be Michelle plus a bottleneck so.
Speaker Change: So I think it's a terrific question.
Speaker Change: Our next one.
Speaker Change: Go down too.
Speaker Change: What is still capacity Capex plan this year and next year, given the strong demand for that'd be new share repurchase.
Speaker Change: Our Capex plan this year and next year it'll be probably still remains about the same.
Speaker Change: That would be bought more result of there'll be channeled towards data center.
Speaker Change: Peak demand for it but that has already started.
Speaker Change: So we have to see what the demand is for going forward and how much capacity.
Speaker Change: And the whole industry before.
Speaker Change: We decided on more capacity expansion or market based on that.
Speaker Change: Well, then be a new share repurchase plan.
The policy that you have.
Peter: Hi, Peter.
Peter: Since our last lesson to us implemented so yeah.
Peter: Certainly.
Peter: Now.
Peter: This has been discussed.
Speaker Change: Can you share your revenue breakdown by domestic sales and export sales.
Speaker Change: To understand how that mix has shifted to zero to five and the impact on ESP appropriate gross margin.
Speaker Change: Also the top.
Speaker Change: Go ahead please.
Speaker Change: So.
Speaker Change: In terms of.
Speaker Change: Domestic sales and export sales about close to.
Speaker Change: More than 20% between 875% of our engines in terms of any sales.
Speaker Change: Got it.
Speaker Change: So.
Speaker Change: Yes.
Speaker Change: But that would be the last.
Speaker Change: A few years.
Speaker Change: In the case of how the product mix will shift it was the whole funnel.
Speaker Change: It will shift slightly market.
The marine and power generation, which is the gen sets because of the the.
Speaker Change: The big the method they are facing now.
Speaker Change: From the data centers, so that will have an impact on the ASP for sure also gross profit gross profit margin.
Speaker Change: Do you consider more share buyback program and what's the dividend policy, Okay, I'll address the share buyback program.
Speaker Change: The dividend policy, we do not have a formal dividend policy.
Speaker Change: If you look at the dividend payout as a pup you'll get the idea.
Speaker Change: How we decide on the dividend payout.
Speaker Change: We do not have a fall will be with the policy.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Thank you we will now take our next phone question from the line of William <unk> from <unk>. Please ask your question William.
Speaker Change: Hi, Kim.
Speaker Change: Ken Wong.
Speaker Change: The expected start date that Youll ship, Kip and do you have.
Speaker Change: Okay.
Speaker Change: A number of units you expect to sell in a rush.
Speaker Change: Margin profile horrible.
Speaker Change: Sorry, Bill I didn't quite catch that don't repeat that again.
Speaker Change: Yeah on the Kim long when do you expect to start shipping the engine kits and then do you have an estimate on the number of kits and margin profile for those.
Speaker Change: Kelly.
Speaker Change: Ask your question.
Speaker Change: Okay.
So we need to.
Speaker Change: How do I move on to beef up the whole problem and also we need to and systemic <unk>.
Speaker Change: All the equipment for their for the factory, So I would expect and then.
Speaker Change: I'll start O&M all this.
Speaker Change: I mean, the installation commissioning and how you stand and then also with the Kenny on.
Speaker Change: Further testing of the <unk>.
Speaker Change: The whole lie and then it will be take a lease about nine nine to 10 months shows up by the end of this year.
Speaker Change: If.
Speaker Change: Everything's moving and we May start shipping.
Speaker Change: Yeah. This is my estimation.
Speaker Change: Okay do you have an idea of how big this plant is going to be or how many units they expect to do it here.
Speaker Change:
In fact <unk>.
Speaker Change: The market is quiet.
Speaker Change: Quite a good <unk> market.
I mean, because I am so.
Our export to win them is about 2000 25000 per annum.
Speaker Change: So.
I mean, if they.
Speaker Change: If they take off most of dose and then they order.
Speaker Change: We PVC and then we shipped from China, and India will be around this number but I hope of course, I know you will be depends on how is the competitive that sop the kingdom motta.
Speaker Change: In the Vietnam market so.
Speaker Change: I mean, we didn't had any concrete.
Speaker Change: Sales from the cost of our agreement with ONEOK.
Speaker Change: Licensing agreement and so that we believe we will have them and then to build up the whole plan and we.
Speaker Change: We will provide the component according to the actual demand.
Speaker Change: Okay Alright.
Speaker Change: Alright, and then my.
Speaker Change: Last question is do you have expectations for the senior part of the in vehicle engine.
Speaker Change: Just in general.
Speaker Change: Okay can you repeat that again.
Speaker Change: Okay.
Speaker Change: Yes, I was looking for if you can provide any expectations for in vehicle engines for this year.
Speaker Change: And when they made their total sales.
Speaker Change: Sales for the year.
Speaker Change: Yes.
Speaker Change: <unk> talking about <unk> are you talking about electric vehicles.
Speaker Change: Hi.
Speaker Change: If you could break out the new energy versus the traditional that would be even better.
I think no I think this year, we saw about 356000 engines right.
Speaker Change: So.
Simon: Again Simon.
Speaker Change: Segment by segment.
Speaker Change: We expect the.
Speaker Change: The vehicle engines too.
Speaker Change: Mostly didn't minus five to $5 settlement below 10%, so it's pretty for the domestic market.
Speaker Change: No.
Speaker Change: For the Marines.
Speaker Change: There is a power generation are expected to perhaps.
Speaker Change: <unk> by about 10% this year.
Speaker Change: For the industrial and agricultural machinery.
Speaker Change: Agriculture machinery like spending the type of slight growth in the industrial machinery.
Speaker Change: I think for the market to be quite flat expenses appropriate desktop.
Speaker Change: But sorry, I can't give you a number the number but generally that's how the math business.
Kevin: Thank you we have now reached the end of our question and answer session and now turn the call back to Kevin.
Kevin: Okay.
Speaker Change: Okay. Thank you Oliver and myself for participating in our conference call.
Speaker Change: <unk> Hill, and we look forward to speaking with you again next time.
Speaker Change: Yes.
Speaker Change: Well. Thank you for your participation in today's conference. This does conclude the program you may now disconnect.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: [music] okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Sure.
Speaker Change: [music].