Engine sales reached 277,684 units in 1H 2026, an increase of 10.9% compared with 250,396 units in 1H 2025. This growth was driven by stronger performance in the truck segment, as well as in off‑road applications, particularly construction machinery and marine & power generation.
Total truck engine unit sales were up 20.4% YoY in 1H 2026, outperforming the 5.8% YoY growth in overall commercial truck (excluding gasoline and electric vehicles) sales reported by the China Association of Automobile Manufacturers (“CAAM”) in the same period. Heavy‑duty (“HD”) truck engine unit sales increased by 47.3% YoY, compared with the 13.1% YoY growth in HD truck sales reported by CAAM. Light‑duty (“LD”) truck engine unit sales rose by 23.6%, contrasted with a decline in LD truck sales according to CAAM. Medium‑duty truck engine unit sales also grew 7.9% YoY.
Engine unit sales to off‑road markets increased by 7.7% YoY in 1H 2026. The growth was primarily driven by strong demand in the marine and power generation markets, where engine unit sales increased by 42% YoY. Sales for industrial applications rose by 15.8% YoY, while engine sales for agricultural machinery declined by 18.9% in the same period.
Gross profit increased by 36.5% to RMB 2.5 billion (US$368.7 million), from RMB 1.8 billion in
1H 2025. The increase was mainly due to higher sales volume, better sales mix and reduced warranty expenses. Overall gross margin was 17.1% in 1H 2026 compared with 14.3% in 1H 2025. Increased sales of larger engines enhanced the gross profit margin in 1H 2026 YoY.
Other operating income, net decreased by 32.2% to RMB 150.2 million (US$22.1 million), compared with RMB 221.4 million in 1H 2025. The decrease was mainly attributable to lower government grants, and the absence of technology licensing fees income in 1H 2026 as compared with that of 1H 2025.
Research and development (“R&D”) expenses increased by 24.5% to RMB 593.4 million (US$87.1 million), compared with RMB 476.7 million in 1H 2025, due to higher experimental and personnel costs and a lower level of capitalized project costs. Total R&D expenditures, including capitalized costs, were RMB 622.5 million (US$91.4 million), representing 4.2% of revenue in 1H 2026, as compared to RMB 551.7 million and 4.3% of revenue in 1H 2025.
Selling, general and administrative (“SG&A”) expenses increased by 12.2% to RMB 1.1 billion (US$158.5 million), from RMB 962.5 million in 1H 2025. This increase was driven by higher personnel expenses and legal, professional & consultancy fees compared with 1H 2025. SG&A expenses represented 7.4% of revenue for 1H 2026 compared with 7.5% of revenue in 1H 2025.
Operating profit increased by 58.9% to RMB 988.2 million (US$145.1 million), compared to RMB 621.7 million in 1H 2025. The operating margin increased to 6.7%, in contrast with 4.8% in 1H 2025. Higher operating profit and operating margin were achieved by increased sales and gross margin combined with controlled growth in operating expenses.
Finance costs decreased by 16.0% to RMB 27.0 million (US$4.0 million), compared with RMB 32.2 million in 1H 2025, primarily due to reduced term loans during the period.
The share of financial results of the associates and joint ventures grew by 56.2% to a profit of
RMB 95.9 million (US$14.1 million), compared with RMB 61.4 million in 1H 2025. The increase was mainly driven by higher profits at MTU Yuchai Power Company Limited (“MTU JV”).
Income tax expense increased by 85.3% to RMB 215.3 million (US$31.6 million), compared with RMB 116.2 million in 1H 2025, primarily due to higher profits and the utilization of deferred tax assets. The effective income tax rate increased to 20.4% compared with 17.8% in 1H 2025.