Breakthrough was made of Zhuhai Yuchai 2-S Project

In 2010, the Zhuhai Yuchai has made a breakthrough of their 2-S project. Over the past year, despite the new entrants as the industry in human resources, capital, experience and so there is no advantage, but the hero of Zhuhai Yuchai builders overcame difficulties, with careful planning, good organized and implementation of the heroic spirit of "when there is a truth, even though it has thousands of horse and soldiers, the greatest obstacle, I insist to go forward", YCMP overcoming all obstacles, achieved one victory after another, by 2010 , Mr Jiang –YCMP President present that " two major goals, "and " Six breakthrough ", as YCMP annual project statement:

"Two goals" is to achieve the annual target of all local government support policies in place, cash grant all arrive in Zhuhai Yuchai bank accounts; The second is to achieve the project loan to complete the approval of the annual target, fixed asset investment has been over-implemented.

"Six Breakthrough" –the first one is the market order to achieve a major breakthrough. In the market, Zhuhai Yuchai has been signed three commerce contracts with their clients, a total number of 8 engines, the contract amounts up to 130 million yuan and has received advance orders of more than 200 million yuan. Zhuhai Yuchai's goal is to "protect four war six", which is to ensure delivery four engines before the end of 2011, and strive to deliver six. In addition, Zhuhai Yuchai has signed a technology agreement with a number of clients, currently the potential orders are still 10 engines.

"Six breakthrough"—the second is the construction to achieve a major breakthrough. To snatch away the excessive rain in 2010 caused by delayed progress, Zhuhai Yuchai to overcome various difficulties, has taken to modify the project design, while the contractor approach, cross and other methods of construction, piling works started in early November, two months begin steel erection, while focusing on the basis of the same field equipment operations, the Board of Directors to determine the early completion of the basic low-speed machine key project work plan, and also completed a major group project supervision plan. If this year without a major adverse weather Zhuhai Yuchai will be officially put into operation in June, October, the first engine will be officially moving shop test.This means a total investment of 10 billion project, from laying the first pile to the project put into operation, time-consuming and will not exceed eight months; and to lay the first root from the pile to product delivery, time-consuming and will not exceed one year. This would bring a new world record of low speed plant construction and engine delivery.

"Six breakthroughs" –the third is the talent introduction and training achieves a major breakthrough. Zhuhai Yuchai introduced a group of experienced experts, while recruitment dozens of vibrant young people. In July 2010, the company sent several technical backbones to Switzerland conducted the first RT-flex training, and again in March 2011 will send another group people to Switzerland for the second training.

At the same time, Zhuhai Yuchai has recruited 70 graduates in early January from several vocational technical schools in Guangxi, which have a good co-operation relationship with Yuchai Group. The first group workers will send to Guangxi Yuchai for some essential training, they are offered practical training more than theoretical training. According to our plan, these workers will arrive at Zhuhai in May of this year, become the first batch workers of our company. Through a combination of internal and external training and study, Zhuhai Yuchai is forming the backbone for the realization company strategy of "when beginning, we keep pace with the world", and has laid a solid foundation.

"Six breakthroughs" –the fourth is a major breakthrough in technology transfer. At the end of 2010, Zhuhai Yuchai's first RT-flex-35 engine drawings conversion has been basically completed, which marks t Zhuhai Yuchai technology introduced has made a breakthrough. Now, we have launched RT-flex-50 engine’s design conversion work to ensure that the technology introduced is fully meet the market and production demand.

"Six Breakthrough" –the fifth is industrial chain layout achieve a major breakthrough. In July 2010, the company has signed the equity investment agreement with two Suzhou companies, aiming to obtain the low-cost procurement advantages of key components. Through this investment,the company abolished medium-small piece machining workshop construction plans, which saved 200 million yuan. One of our investment company have successfully manufactured the first 2-S engine crankshaft in November 2010, it saved up more than 40% than the imported one.

"Six breakthroughs" –the sixth is employee living space is approval. According to the latest release information, the Guangdong Provincial Department has approved Zhuhai Yuchai employee residential land targets, and then Zhuhai City Land Bureau in the recent is subject to formal bidding and auction to Zhuhai Yuchai. This will greatly reduce the employee living house purchase costs and greatly improve the staff's cohesion, solidarity and loyalty, the development and expansion of Zhuhai Yuchai laid a solid foundation and long-term stability.

Currently, the company is in high spirit and unites, we have determination and confidence to delivery our first engine in 2011, to fulfill our sworn oath, also as a special gift and meaningful gift to Yuchai Group in its 60 anniversary.