YuchaiLi Hanyang, Party Secretary and Chairman of the Group

As the year draws to a close, a new chapter unfolds. As the warm dawn breaks through the night sky, the hopeful 2025 is opening its arms to us. At this moment, on behalf of Yuchai, I would like to extend my best New Year wishes to leaders at all levels, friends from all walks of life, and Yuchai employees and their families who have cared for and supported the company's development!

Looking back, we have reaped abundant rewards

In 2024, the international situation tightened, competition among global powers escalated, trade protectionism rose, and many countries erected tariff barriers to build "small yards with high fences," causing supply chain risks to surge. However, the domestic environment improved: national policies stepped up efforts to boost domestic demand, actively promoted large-scale equipment renewal, stimulated consumption, and accelerated the internal circulation. Influenced by the international and domestic environments, the automotive and internal combustion engine industries presented a complex stage where policy and market, technology and demand, involution and opportunity intertwined and collided. Dancers know no bounds, and passion is limitless. All Yuchai builders have continued to strive and forge ahead in their posts, moving forward with great strength and helping the company rise against the trend, delivering a timely answer sheet of "strengthening the nation through industry, Yuchai makes its mark"!

This year, our market front has beenflooded with good news.Enginesmain businessoutperformed the industry overall. Annual engine sales maintained double-digit year-on-year growth, and the market share increase led the industry. Segments such as commercial vehicle power, marine and electric power, and general machinery power all showed bright spots, and overseas market sales hit a record high. Other industries within the power system "concentric circle" also achieved new breakthroughs: photovoltaic industry revenue grew substantially year on year, and revenue from outside the business system for components such as connecting rods achieved triple-digit growth year on year, steadily improving the company's operating efficiency.

Signing ceremony for the second phase of the joint venture between Yuchai and Rolls-Royce Power Systems

This year, our strategic cooperation achieved breakthroughs. We grandly held the 2024 Partner Conference, sharing our latest development achievements with 2,000 global customers. The relationship between Yuchai and its vast partners has entered an unprecedented "honeymoon period." We signed a second-phase project cooperation agreement with Germany's Rolls-Royce Power Systems to increase investment and R&D efforts at Yuchai Anteyou. Our first overseas factory was completed and put into operation in Thailand, and the Vietnam engine factory project was also signed and landed. Yuchai Photovoltaic achieved strategic cooperation with state-owned enterprises such as Sichuan Investment Group and Guangxi State Farms. In addition, we are actively seeking more strategic cooperation in the European market and opening new channels for "going global together" with more central state-owned enterprises.

Launch ceremony for high-power low-carbon and zero-carbon fuel engines

This year, our technological innovation has been fruitful. We have continuously broken through key core technologies and successfully developed the YCK15M, the domestically most powerful methanol range-extender product; the YCK16LN, the gas engine with the highest thermal efficiency in domestic mass production; the YC16VTDH, the country's first megawatt-class hydrogen fuel power generation engine; and the YC6CAXM, the country's first dual direct-injection methanol marine engine. Two hydrogen engines, the YCK05H and YCK16H, have been installed in vehicles and started real-vehicle demonstration operation, and the YC16VTD has successfully been matched to the world's largest-tonnage hybrid mining truck. Yuchai's fourth R&D base—the Yuchai Wuxi R&D Center—was officially inaugurated. Lin Tiejian, Chief Engineer of Yuchai Co., Ltd., was awarded the title of "National Outstanding Engineer."

This year, our corporate culture shone brilliantly. We released the new Yuchai striving spirit. Through rich and colorful cultural activity carriers such as collective birthday parties, association carnivals, and striving support events, Yuchai's family culture has become increasingly strong, and the striving spirit has become a common practice. We creatively carried out brand building and further amplified and polished the golden signboard of "Yuchai Machinery, King Power." We rewarded frontline employees with cars and upgraded their working and living environments. The company has become more beautiful, and employees are happier.

Looking ahead, full of pride

2025 is the final year of the 14th Five-Year Plan, the breakthrough year for Yuchai to achieve the first goal of its scale-doubling project, and a key year for the implementation of Yuchai's overseas strategy. We must implement the spirit of the Central Economic Work Conference, firm up confidence, break through obstacles and open the way, dare to win, and stay at the forefront of high-quality development.

This year, we set out on a new journey. In 2025 and the coming years, Yuchai's scale-doubling project will be accelerated, strengthening the engine industry, optimizing the terminal equipment industry, and solidifying emerging service industries to further enhance corporate competitiveness. As long as we remain focused and united in striving, with big hands holding small hands, we can form momentum, gather as groups, accomplish things, and step up to a new level.

This year, we open up new tracks. We must make our business across both traditional power and new energy power tracks comprehensive, innovative, and strong: deepen our main business to strengthen the existing base, open new markets to expand incremental growth, accelerate the ramp-up of new energy power, and build the world's largest "power supermarket." In addition, as a pioneering enterprise of China's national industry, Yuchai lacks neither an industrial foundation, nor large-scale equipment, nor advanced processes, nor outstanding talent. We must vigorously develop the third track of intelligent equipment manufacturing, making Yuchai's pie bigger and its stage bigger, allowing more industries to bloom and more ambitious people to放飞 their dreams and soar freely.

This year, we strive to scale new heights. To achieve independent and controllable key core technologies, the source lies in basic research. R&D, as the front end of the corporate "smile curve," must, with a spirit that advances with the times, the courage to innovate, and rock-solid determination, twist together like a "twisted rope" with upstream suppliers and downstream OEMs, coordinate and collaborate, aim at "bottleneck" core technologies, achieve intensive breakthroughs, and climb higher toward newness, creating more money-making "sharp tools" for customers.

This year, we expand new territory. In the face of the industry dilemma of "involution spilling outward," strengthening through the sea is a new path to break the deadlock. While refining, deepening, and specializing the domestic market, we must strengthen overseas market layout and overseas brand building, promote more overseas joint venture and cooperation projects to land, achieve partners "sourced globally," installed parts "bought globally," and engine products and technical solutions "sold globally," and set a benchmark for Chinese enterprises going global.

A new year begins, and together we embark on a new journey.

In 2025, let us join hands and set sail again toward the stars and the sea, interact and integrate, build and win together, and run together toward a better future!