[Abrupt Start] Before we begin, I will remind all listeners that throughout this call we may make statements that may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words believe, expect, anticipate, project, targets, optimistic, intend, aim, will or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that may be deemed forward-looking statements. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the company's operations, financial performance and condition. The company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including those discussed in the company's reports filed with the Securities and Exchange Commission from time-to-time. The company specifically disclaims any obligation to maintain or update the forward-looking information, whether of the nature contained in this script or otherwise, in the future. Mr. Hoh Weng Ming will provide a brief overview and summary and then Dr. Phung will review the financial results for the third quarter and nine months ended September 30, 2016. Thereafter, we will conduct a question-and-answer session. For the purpose of today’s call, the financial results for the third quarter of 2016 are unaudited and they will be presented in RMB and U.S. dollar. All the financial information presented is reported using International Financial Reporting Standards, as issued by the International Accounting Standards Board. Mr. Hoh, please begin.

Thank you. Sales in the third quarter of 2016 continued to reflect slow economic growth in China as GDP grew 6.7%, the same rate as in the first and second quarters, which is the slowest growth rate since 2009. Industrial activity continued to decline in the third quarter of 2016 compared with a year ago. The slowdown combined with lower sales to the bus and natural gas engine market had an impact on the off-road segment from the transition to the more stringent Tier 3 emission standard nationwide also declined our sales overall. During the third quarter, our sales for our engine sales were 56,013 units compared with 84,170 units in the same quarter of 2015, a reduction of 21.6%. Our revenue for the third quarter declined by 4% to RMB2.9 billion or US$432.1 million from RMB3 billion in the third quarter of 2015. Lower fuel prices and the transition to the more stringent Tier 3 emission standard negatively affected sales of our natural gas engines and to the off-road segment, especially to the agriculture and farming economic sector, respectively. Our top line decline was less in revenue than the decline in unit sales in the third quarter due to the improved average selling price as a result of better sales mix. According to data reported by China Association of Automobile Manufacturers, CAAM, in the third quarter of 2016 sales of commercial vehicles, excluding gasoline-powered and electric vehicles, increased by 10.5%. The truck market has seen renewed growth in the recent years, up 15.4% year-over-year during the third quarter. However, the bus market which is one of our key sales segment remains weak. Heavy and medium-duty bus segments experienced a 39.3% and 17.9% decline, respectively, while sales in marine and power generation engines increased, our sales to the agriculture segment…

Thank you, Weng Ming. Now let me review our third quarter results. The net revenue for the third quarter of 2016 declined by 4.0% to RMB2.9 billion, US$432.1 million from RMB3.0 billion for the same quarter last year. The total number of engines sold was 66,013 units as compared with 84,170 units for the same period last year, a reduction of 21.6%. According to the China Association of Automobile Manufacturers, CAAM, in the third quarter of 2016, sales of commercial vehicles, excluding gasoline-powered and electric vehicles, increased by 10.5% led by an increase of 15.4% in the truck segment whereas sales in the bus segment decreased by 13.1%. China Yuchai's sales reflect these trends as our engine sales to the truck segment increased whereas the sales to the bus segment decreased compared with the same quarter last year. Sales of marine and power generation engines increased as compared with the same quarter last year. As a result of the transition to the Tier 3 emission standard in the off-highway segment, sales to the agricultural segment declined as compared with the same quarter last year. Gross profit was RMB630.7 million, US$94.5 million, as compared with RMB586.8 million in the same quarter last year. The gross profit increased by 2.4% to 21.9% as compared with 19.5% in the same quarter last year. The increase on gross profit margin was mainly due to lower raw material costs and better product mix. Other operating income was RMB12.4 million, US$1.9 million, compared with other operating loss of RMB24.5 million in the same quarter last year. The improvement resulted mainly from lower foreign exchange revaluation losses. There was also a loss of RMB12.5 million in the third quarter of 2015 which resulted from the disposal of GYMCL's entire shareholding interest in Xiamen Yuchai Diesel Engines Co.,…

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions]. Our first question comes from the line of David Raso from Evercore ISI. Please ask your question.

Yes. Hello, everybody.

Hi, David.

The market for next year, I know it’s hard to pin it down exactly, but a) how do you feel about inventory in the channel? And then b) when do you expect to see your units year-over-year kind of flatten out and potentially turn positive? Obviously, if some of the data out of the market broadly has improved and I know there’s some nuances around your position in the market right now. But if you can give us a little visibility into a) where is inventory? And b) when would you expect to start to see some positive year-over-year unit growth?

Okay. David, it’s Weng Ming. I’ll answer b first. Then let Kelvin answer the a question. Firstly, let’s look at the sales performance this year. Then I’ll move on to next year. Firstly, for this year, why are we down? The main reason we are down is related to two areas; one is the bus market segment and the other one is the off-road, agriculture and industrial equipment. Now for the bus market we are affected by the electric vehicles and the subsidies that’s been in place for a long period of time, the general subsidies. So we are losing quite a bit of sales in the inner-city bus segment. Now, while the incentives we believe will gradually decline, I think the demand for the unit will continue to be there. But it will come a point where – we don’t know when, it will be a predication here that it may be removed altogether at some point when the government’s comfortable. At that point, we’ll both see a more level playing field. That we don’t know how it’s going to predict, it’s going to be some way off. Now the other area is the off-road, agriculture and industrial equipment segment. Now one of the main reasons – this is the biggest reason why we are experiencing a big fall this year. That’s because of the transitions from T2 to T3 emission standards. And for our engine manufacturers, we have the spot manufacturing T2 engine from October last year to the December 1 this year. Then the OEMs are allowed to use T2 still until December 1 this year. So from next year on we hope to see the agriculture segment coming back. It’s a big part of our business. For the trucks, I think the truck segment has been quite good lately and we have benefited from that. We think it will continue into next year. One of the big drivers there is the government enforcement of overloading of the trucks that’s causing a lot of demand for the trucks demand. Our marine engine is also doing pretty well this year. So we are beating the market share there. And with the marine we have higher – average selling price and bigger powered engines as well.

Hello, David. This is Kelvin. Back to your question a, and regarding on the infantry of the trucks. As you are aware of the truck sales and then from the beginning of this year and then cautiously and then increasingly [indiscernible] gaining the markets. So the infantry level has been reducing. And by the end of September, the inventory in the channels around – it’s less than 100,000 units in the channel, because of the [indiscernible] try to reducing the inventory total. However, in the October sales it has been raising significantly because of the overloading policy of which was implemented by September 21 and also the increasing of the core pricing. So the demand of the truck has been increasing. And I believe that the [indiscernible] will increase the infantry because of the demand of the trucks in the coming months.

So there should there you’re saying an inventory build. The confidence in next year, is that high now where they’re willing to build some inventory into year-end? Did that I hear that correctly?

Yes. They’ll probably see this.

Okay, that’s interesting. Okay. Thank you very much for the detail.

Okay.

[Operator Instructions]. We have now reached the end of our Q&A session. I will turn the call back over to Mr. Hoh.

Okay. Thank you for participating on the conference call. We will look forward to talking to you again in the next quarter. Thank you.