Hong Leong Asia units’ director, ex-chief accountant detained in China; shares fall 12.3%

The director of China Yuchai International (CYI) and former chief accountant of its unit Guangxi Yuchai Machinery have been detained by Chinese authorities.

Hong Leong Asia, which holds a 48.7 per cent stake in CYI, said on Monday (Oct 20) that the reasons for the detainment and any charges against Wu Qiwei and Qin Xiaohong have not yet been verified.

Wu is a director at CYI and the president of its main operating subsidiary, Guangxi Yuchai Machinery. Qin is the former chief accountant of the latter company.

Li Hanyang, the chairman of Guangxi Yuchai Machinery’s board of directors, will continue to lead its operations. Chen Hai, vice-president at the CYI subsidiary, is assisting to carry out the role of president in Wu’s absence.

CYI specialises in the design, manufacture, assembly and sale of engines for trucks, buses, pickups, construction and agricultural equipment, as well as marine and power generation applications.

The Singapore-headquartered company, reported a 52.2 per cent increase in net profit for the first half of 2025, up from 240.3 million yuan (S$43.7 million) to 365.8 million yuan. This was on the back of higher sales in “almost every engine segment”.

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Hong Leong Asia posted a 13.1 per cent rise in net profit to S$56 million for the first half, up from S$49.5 million in the previous corresponding period. The jump was mainly due to the strong performance of Guangxi Yuchai Machinery.

Shares of Hong Leong Asia plunged as much as 20.6 per cent at 9.23 am on Tuesday, having ended Friday 4.6 per cent or S$0.12 lower at S$2.52. The counterlater pared losses to close 12.3 per cent or S$0.31 down at S$2.21.

Tuesday’s decline trimmed Hong Leong Asia’s year-to-date rally to 132.6 per cent.

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In an August report, DBS Group Research set a target price of S$2.80 for the counter. The research house projected a three-year earnings compound annual growth rate of 50 per cent, supported by stronger deliveries across all business segments.

Shares of CYI, listed on the New York Stock Exchange, fell 4.6 per cent or US$1.59 to close at US$33.36 on Monday, though they remain up more than 230 per cent year to date.