China Yuchai International Limited announces its 1996 interim results.

SINGAPORE--(BUSINESS WIRE)--Sept. 19, 1996--China Yuchai International Limited posted net sales of RMB 640.8 million (US$77.0 million) for the six months ended June 30, 1996, down 33.9% from net sales of RMB 969.4 million for the same period last year.

The number of units of diesel engines sold decreased from 41,294 units for the first half 1995 to 28,092 units for the first half of 1996.

Income before taxes and minority interest for the first six months of the current fiscal year decreased by 97% to RMB 7.2 million (US$0.86 million) from RMB 272.9 million for the same period last year. Net income dropped to RMB 2.1 million (US$0.26 million) from RMB 206.2 million, a decrease of 99% from the previous corresponding period.

The company is not declaring any interim dividend.

The weak results were caused by a combination of factors which include a further downturn in the medium duty diesel engine truck industry, the Chinese government's continued tight credit policy, prudent financial management on the part of the company in managing cashflow and sales, protectionism practised by our large customers, increased competition and financial difficulties faced by the company's largest customer.

The company has continued its tight controls on expenses and capital expenditures and has also stepped up its marketing efforts to increase sales to other customers such as the retrofitting dealers.

There have been some encouraging signs of additional credit facilities being made available to certain large state enterprises, such as First Auto Works. CYI is hopeful that such selective loosening of credit would result in increased sales.

The company is also improving on the 6108 series with improved performance and new models being worked on.

Given the difficulties facing the company, the company does not expect its financial performance to improve in the second half of 1996 and could be worse than in the first half if the overall truck industry and current tight credit policy do not improve.

The preceding sentence is a forward-looking statement subject to risks and uncertainties. The company's Form 20-F filed with the U.S. Securities and Exchange Commission contains a cautionary statement which identifies important factors that could cause actual results to differ materially from forward-looking statements.

                   China Yuchai International Ltd.
                Consolidated Statements of Operations
                 For Six Months Ended June 30, 1996

        (Rmb and US$ amounts and number of shares expressed
                in thousands except per share data)

                                  Six months         Six months
                                     ended              ended
                                 June 30, 1995       June 30, 1996

                                      Rmb            Rmb       US$

Net sales                           969,357        640,852    77,016
Cost of goods sold                  478,712        430,533    51,741

Gross profit                        490,645        210,319    25,275

Selling, general and
  administrative expenses           188,368        163,023    19,592
Amortisation of goodwill              8,429          8,429     1,013

Operating income                    293,848         38,867     4,670
Interest expense                     19,288         28,641     3,442
Other expenses, net                   1,584          3,040       365

Income before income taxes
  and minority interest             272,976          7,186       863
Income taxes (benefit)/expense            -          1,285       154

Income before minority interest     272,976          5,901       709
Minority interest in income of
  consolidated subsidiaries          66,750          3,769       453

Net income                          206,226          2,132       256

Earnings per share                     5.78           0.06      0.01

Weighted average no. of shares
  outstanding                        35,666         35,724    35,724

    Translation of amounts from Renminbi (Rmb) into United States
dollars (US$) for the convenience of the reader has been made at the
rate of US$1.00=Rmb8.321, quoted by the People's Bank of China on
June 28, 1996.  No representation is made that the Renminbi amounts
could have been, or could be, converted into United States dollars
at that rate on June 28, 1996 or at any other certain rate.

Selected Balance Sheet Items:

                                     As at               As at
                               December 31, 1995      June 30, 1996

                                    Rmb'000         Rmb'000  US$'000

Cash balances                       220,961         181,505   21,813

Trade accounts receivables, net     523,866         581,893   69,931

Short and long term bank loans      576,585         587,937   70,656

Shareholders Equity               1,998,886       2,001,018  240,478

CONTACT: China Yuchai International Limited

(65) 2208411