Based on the disclosure from the Hong Kong Stock Exchange on August 31, Guangxi Yuchai Marine and Power Equipment Co., Ltd. (referred to as Yuchai Marine Power) has submitted its listing application to the main board of HKEX, with China Merchants Securities International and China Galaxy International serving as its joint sponsors. The company previously filed its application with HKEX on January 27.

According to data from Frost & Sullivan, based on 2025 sales revenue from power generation engines in China, Yuchai Marine Power is the country's largest supplier of power generation engines. The same research indicates that the company is also a leading marine engine supplier in China, ranking second by 2025 sales revenue from domestic medium and high-speed marine engines. The company designs, develops, manufactures and sells power generation engines, marine engines, generator sets and engine components, serving a broad spectrum of economic markets including data centers, distributed power stations, infrastructure projects, telecommunications, healthcare, mining, agriculture, oil and gas, as well as marine shipping and operations. The company primarily operates in China while maintaining overseas sales teams covering Europe, the Middle East, Africa, Asia and South America.

In terms of the competitive landscape, there are currently fewer than 50 participants in China's power generation engine industry, reflecting a highly concentrated and oligopolistic market structure. In China's medium and high-speed marine engine market, approximately 20 core players have entered the mass production stage. The domestic power generation engine market is relatively concentrated at present, with high-power, high-value products dominated by leading enterprises. In 2025, the combined sales value of the top five power generation engine suppliers in China accounted for approximately 62.4% of the total market. Among them, Yuchai Marine Power ranked first in the industry, capturing a 22.3% market share in China's power generation engine market.

Financial Highlights

For the years 2023, 2024, 2025 and the six months ended in the first half of 2026, the company recorded revenues of approximately RMB 3.239 billion, RMB 4.0 billion, RMB 6.15 billion and RMB 4.494 billion, respectively. For the same periods, the company reported net profits of approximately RMB 396 million, RMB 536 million, RMB 877 million and RMB 826 million, respectively. The company's gross margins for 2023, 2024, 2025 and the first half of 2026 stood at 22.4%, 23.4%, 24.9% and 27.4%, respectively.

Industry Overview

Within the cost structure of generator sets, the power generation engine serves as the core component with the highest bill of materials cost, reaching approximately 65% of the entire material breakdown. The power generation engine industry is exceptionally technology-dependent. The design and manufacturing of power generation engines demand key technologies including structural design, combustion control, thermal efficiency optimization, precision machining and material innovation, with these technological standards directly determining the operational reliability, energy efficiency and environmental emission performance of generator sets, constituting the core competitive advantages of the products. In terms of revenue, the global power generation engine market grew from RMB 48.0 billion in 2021 to RMB 66.9 billion in 2025, representing a compound annual growth rate of 8.7%. Driven by robust demand from downstream applications such as data centers, distributed power stations and infrastructure, the global market has recorded steady growth. Supported by ongoing product technology upgrades and rising downstream application demand, the global power generation engine market is expected to reach RMB 159.6 billion by 2030, with a CAGR of 19.0% from 2025 to 2030. Within this expanding market and the broader power generation engine industry, diesel remains the primary fuel source. Despite the ongoing global energy transition, the clean energy engine market is projected to grow only from RMB 9.2 billion in 2025 to RMB 10.8 billion by 2030, reflecting a modest CAGR of 3.2%. This stark contrast underscores the resilience and continued market dominance of diesel-powered solutions in the foreseeable future.

Benefiting from the rapid advancement of global artificial intelligence technology, the proliferation of distributed power station applications and ongoing infrastructure development, China's power generation engine market has shown rapid growth. The domestic market size expanded from RMB 10.8 billion in 2021 to RMB 18.1 billion in 2025, representing a CAGR of 13.8%. Propelled by surging computing power demand from data centers, the market is expected to grow from RMB 18.1 billion in 2025 to RMB 46.3 billion by 2030, reflecting a CAGR of 20.7%.

Board Composition and Shareholding Structure

The board of directors will comprise nine members, including three executive directors, three non-executive directors and three independent non-executive directors. Executive and non-executive directors are appointed for three-year terms, while independent non-executive directors serve one-year terms. As of the latest practicable date, HLCH is wholly owned directly and indirectly by HLIH, which directly holds 73.20% and indirectly holds 26.80% through its wholly-owned subsidiary HLE. Hong Leong Asia is ultimately controlled by HLIH. As of the latest practicable date, Yuchai International indirectly holds a 76.41% interest in Yuchai Co., Ltd. through its six wholly-owned subsidiaries: HLTS holds approximately 22.26%; Earnest Assets holds approximately 21.44%; Cathay Diesel Holdings holds approximately 12.64%; Tsang & Ong holds approximately 12.64%; GSGH holds approximately 5.22%; and Youngstar holds approximately 2.20%. Accordingly, for the purposes of the Securities and Futures Ordinance, Yuchai International is deemed to be interested in the 856,000,000 shares held or controlled by Yuchai Co., Ltd. through its controlled corporations.

Intermediary Team

Sponsors: China Merchants Securities (Hong Kong) Company Limited and China Galaxy International Securities (Hong Kong) Co., Limited. Company legal counsel: Reed Smith Richards Butler LLP, JunHe LLP and King & Wood Mallesons. Sponsor legal counsel: Haiwen & Partners LLP. Auditor and reporting accountant: Ernst & Young. Industry consultant: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch. Compliance advisor: Anglo Chinese Corporate Finance Limited.