Reserves (Tables)

12 Months Ended

Dec. 31, 2019

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Summary of Statutory Reserves

	31.12.2018		31.12.2019		31.12.2019
	RMB’000		RMB’000		US$’000
Statutory reserve
Statutory general reserve (i)
At January 1		275,320		276,698		39,053
Transfer from retained earnings		1,378		1,903		269
At December 31		276,698		278,601		39,322
General surplus reserve (ii)
At January 1 and December 31		25,706		25,706		3,628
Total		302,404		304,307		42,950
Capital reserves (iii)
At January 1 and December 31		30,704		30,704		4,334

Note:

(i) In accordance with the relevant regulations in the PRC, a 10% appropriation to the statutory general reserve based on the net income reported in the PRC financial statements is required until the balance reaches 50% of the authorized share capital of Yuchai and its subsidiaries. Statutory general reserve can be used to make good previous years’ losses, if any, and may be converted into share capital by the issue of new shares to shareholders in proportion to their existing shareholdings, or by increasing the par value of the shares currently held by them, provided that the reserve balance after such issue is not less than 25% of the authorized share capital.

(ii)  General surplus reserve is appropriated in accordance with Yuchai’s Articles and resolution of the board of directors. General surplus reserve may be used to offset accumulated losses or increase the registered capital.

(iii)  Capital reserves pertain to a capital transaction in 2015.

Summary of Other Components of Equity

	31.12.2018			31.12.2019			31.12.2019
	RMB’000			RMB’000			US$’000
Other components of equity
Foreign currency translation reserve (i)		(39,215	)		(36,091	)		(5,094	)
Performance shares reserve (ii)		19,758			19,758			2,789
Premium paid for acquisition of non-controlling interests		(11,541	)		(11,472	)		(1,619	)
Fair value reserve of financial assets at FVOCI(iii)		(79,948	)		(77,617	)		(10,955	)
Total		(110,946	)		(105,422	)		(14,879	)

Note:

(i)  Foreign currency translation reserve represents exchange differences arising from the translation of the financial statements of foreign operations whose functional currencies are different from that of the Group’s presentation currency.

(ii)  Performance shares reserve comprises the cumulative value of employee services received in return for share-based compensation. The amount in the reserve is retained when the option is expired.

(iii)  Fair value reserve of financial assets at FVOCI relates to the subsequent measurement of the Group’s bills receivable at fair value through OCI.