Equity Acquisition of Nanyue Diankong (Hengyang) Industrial Technology

Rhea-AI Summary

China Yuchai International (NYSE: CYD) announced that its subsidiary Guangxi Yuchai acquired 83,918,495 shares of Nanyue Diankong (Hengyang) Industrial Technology (NYDK), representing a 27.97% equity interest, for approximately RMB 176.2 million in cash on Jan 12, 2026.

Following the purchase, Yuchai became NYDK's second-largest shareholder and entered a concerted action agreement with the largest shareholder, securing operational control including the right to nominate 6 of 9 directors and designate NYDK's general manager. The acquisition is described as strengthening Yuchai's supply chain for key fuel-injection components used in its powertrain solutions.

Positive

• Acquired 27.97% of NYDK for RMB 176.2 million
• Secured operational control: right to nominate 6 of 9 directors
• Ability to designate NYDK general manager improving governance alignment
• Strengthens supply chain for fuel injection components and powertrain solutions

Negative

• Acquisition increases related-party exposure to a single supplier
• RMB 176.2 million cash outlay may reduce near-term liquidity

News Market Reaction – CYD

+8.96%

21 alerts

+8.96% News Effect

+5.7% Peak in 1 hr 44 min

+$142M Valuation Impact

$1.72B Market Cap

1.1x Rel. Volume

On the day this news was published, CYD gained 8.96%, reflecting a notable positive market reaction. Argus tracked a peak move of +5.7% during that session. Our momentum scanner triggered 21 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $142M to the company's valuation, bringing the market cap to $1.72B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Acquisition consideration: RMB 176.2 million NYDK stake acquired: 83,918,495 shares NYDK equity interest: 27.97% +5 more

8 metrics

Acquisition consideration RMB 176.2 million Cash paid for 27.97% of NYDK

NYDK stake acquired 83,918,495 shares Shares in Nanyue Diankong (Hengyang) Industrial Technology

NYDK equity interest 27.97% Equity interest obtained by Yuchai in NYDK

CYD share price $41.61 Price before news, near 52-week high of $42.6

Volume vs average 169,762 vs 124,363 Today’s volume vs 20-day average (1.37x)

52-week range $9.90 – $42.60 CYD trading near upper end of 52-week range

Market cap $1,561,137,378 Equity value prior to NYDK acquisition announcement

Board seats at NYDK 6 of 9 directors Seats Yuchai may nominate under concerted action agreement

Market Reality Check

Price: $43.52 Vol: Volume 169,762 is 1.37x t...

normal vol

$43.52 Last Close

Volume Volume 169,762 is 1.37x the 20-day average of 124,363, indicating elevated interest ahead of the acquisition news. normal

Technical Price 41.61 is trading above the 200-day MA of 28.3, reflecting a pre-existing uptrend.

Peers on Argus

CYD gained 3.25% while key peers were mixed: LOT -0.76%, LVWR -4.15%, VLCN -7.28...

CYD gained 3.25% while key peers were mixed: LOT -0.76%, LVWR -4.15%, VLCN -7.28%, NIU -2.33%, with only NWTN up 16.81%. This pattern points to a stock-specific move around CYD rather than a broad auto manufacturers rally.

Historical Context

5 past events · Latest: Dec 23 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 23	Board appointment	Neutral	-1.8%	New director with long internal experience joined the company’s board.
Oct 28	Board change	Negative	-4.6%	Director resignation reduced board size and raised governance questions.
Oct 24	Product launch	Positive	+5.6%	Launch of YC16VTF high-horsepower generator engine targeting power markets.
Aug 25	Listing exploration	Positive	+1.6%	Subsidiary began exploring potential foreign stock exchange listing.
Aug 25	JV engine launch	Positive	+1.6%	JV with Rolls-Royce launched new mtu Series 2000 engines and expanded output.

Pattern Detected

Recent operational and strategic news skew positive, and the stock has more often reacted in alignment with that tone.

Recent Company History

Over the past six months, China Yuchai has reported several operational and governance developments. On Aug 25, 2025, it highlighted new mtu Series 2000 engines via its joint venture, following cumulative production of over 3,000 Series 4000 units. The same day it disclosed a potential foreign listing for an indirect subsidiary. Subsequent news featured high-horsepower YC16VTF engine launch on Oct 24, 2025 and multiple board changes, including a director resignation on Oct 27, 2025 and a new director appointment on Dec 23, 2025. The current NYDK acquisition fits this pattern of incremental strategic moves in core powertrain and related technologies.

Market Pulse Summary

The stock moved +9.0% in the session following this news. A strong positive reaction aligns with CYD...

Analysis

The stock moved +9.0% in the session following this news. A strong positive reaction aligns with CYD’s pattern of responding favorably to strategic and product-related news, as seen after prior engine launches with moves around 5.56%. With shares already trading above the 200-day MA and near a 52-week high, investors previously priced in operational strength. The NYDK acquisition adds supply-chain depth and operational control, but elevated levels could face consolidation if enthusiasm overextends earlier trends or if integration risks draw scrutiny.

Key Terms

fuel injection systems, common rail systems

2 terms

fuel injection systems technical

"NYDK is a national high-tech and industry leader specializing in fuel injection systems,"

Fuel injection systems are the mechanical and electronic parts that deliver measured amounts of fuel into an engine so it runs efficiently, much like a precision faucet that adjusts flow to match demand. They matter to investors because they directly affect a vehicle's fuel economy, performance, emissions and regulatory compliance, which influence manufacturers' costs, product competitiveness and market demand.

common rail systems technical

"specializing in fuel injection systems, including common rail systems, unit pumps and"

A common rail system is a high-pressure fuel delivery setup used in diesel and some gasoline engines where a single shared reservoir (the “rail”) supplies pressurized fuel to each injector on demand, similar to a central water tank feeding individual sprinklers. It matters to investors because this technology improves engine fuel efficiency, power control and reduces emissions, affecting vehicle performance, regulatory compliance costs, aftermarket demand and the competitiveness of suppliers and manufacturers across the automotive and industrial markets.

AI-generated analysis. Not financial advice.

SINGAPORE, Jan. 12, 2026 /PRNewswire/ -- China Yuchai International Limited (NYSE: CYD) ("China Yuchai" or the "Company"), one of the largest powertrain solution manufacturers through its main operating subsidiary in China, Guangxi Yuchai Machinery Company Limited ("Yuchai"), wishes to announce that Yuchai has acquired 83,918,495 shares of Nanyue Diankong (Hengyang) Industrial Technology Company Limited ("NYDK"), representing a 27.97% equity interest, for a consideration of approximately RMB 176.2 million in cash.  Following the acquisition, Yuchai has become the second-largest shareholder of NYDK.

Yuchai has also entered into a concerted action agreement with Hunan Hengyang Auto Parts Factory, the largest shareholder of NYDK. This agreement enables Yuchai to secure operational control over NYDK, including, among other things, the right to nominate six out of nine directors on NYDK's board of directors and designate its general manager. The NYDK acquisition enhances Yuchai's supply chain in key components used in its powertrain solutions.

NYDK is a national high-tech and industry leader specializing in fuel injection systems, including common rail systems, unit pumps and mechanical pumps.

About China Yuchai International

China Yuchai International Limited, through its subsidiary Guangxi Yuchai Machinery Company Limited ("Yuchai"), is one of the leading powertrain solution providers in China. Yuchai specializes in the design, manufacture, assembly, and sale of a wide variety of light-, medium- and heavy-duty engines for trucks, buses, pickups, construction and agricultural equipment, and marine and power generation applications. Yuchai offers a comprehensive portfolio of powertrain solutions, including but not limited to diesel, natural gas, and new energy products such as pure electric, range extenders, and hybrid and fuel cell systems. Through its extensive network of regional sales offices and authorized customer service centers, Yuchai distributes its engines directly to auto OEMs and distributors while providing after-sales services across China and globally. Founded in 1951, Yuchai has established a reputable brand name, built a strong research and development team, and achieved a significant market share in China. Known for its high-quality products and reliable after-sales support, Yuchai has also expanded its footprint into overseas markets. In 2024, Yuchai sold 356,586 engines, further solidifying its position as a leading manufacturer and distributor of engines in China. For more information, please visit https://www.cyilimited.com

Safe Harbor Statement:

This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe", "expect", "anticipate", "project", "targets", "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. These forward-looking statements, including, but not limited to, statements concerning China Yuchai's and the joint ventures' operations, financial performance and condition, are based on current expectations, beliefs and assumptions which are subject to change at any time. China Yuchai cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors such as government and stock exchange regulations, competition, political, economic and social conditions around the world and in China, including those discussed in China Yuchai's Form 20-Fs under the headings "Risk Factors", "Results of Operations" and "Business Overview" and other reports filed with the Securities and Exchange Commission from time to time. All forward-looking statements are applicable only as of the date they are made and China Yuchai specifically disclaims any obligation to maintain or update the forward-looking information, whether of the nature contained in this release or otherwise, in the future.

For more information:

Investor Relations
Kevin Theiss
Tel: +1-212-510-8922
Email: cyd@bluefocus.com

View original content:https://www.prnewswire.com/news-releases/equity-acquisition-of-nanyue-diankong-hengyang-industrial-technology-302658179.html

SOURCE China Yuchai International

FAQ

What stake did China Yuchai (CYD) acquire in NYDK on January 12, 2026?

Yuchai acquired 83,918,495 shares, representing a 27.97% equity interest in NYDK for about RMB 176.2 million in cash.

How does the concerted action agreement affect NYDK's board after the CYD acquisition?

The agreement allows Yuchai to nominate 6 of 9 directors on NYDK's board and to designate the company's general manager, securing operational control.

Why did China Yuchai (CYD) buy a stake in NYDK?

The acquisition is intended to enhance Yuchai's supply chain for critical fuel-injection components used in its powertrain products.

Will the NYDK acquisition by Yuchai likely dilute existing shareholders of NYDK?

Yuchai purchased the stake for cash; the announcement does not state any new issuance or dilution for NYDK shareholders.

Does the RMB 176.2 million purchase by CYD change its role at NYDK?

Yes; following the purchase and the concerted action agreement, Yuchai became NYDK's second-largest shareholder with operational control rights.