PRESIDENT’S STATEMENT China Yuchai International Limited | Annual Report 2013 7 enhancing our export capabilities in order to strategically  position our superior and extensive line of product  offerings in foreign markets.  In our efforts to continually reach out to the investment  community, we attended and presented at two recent  conferences: at the Citi China Investor Conference held in  Macau, China in November 2013 and at the ISI Industrial  Conference in New York in March 2014. We met with  existing and new institutional shareholders and we intend  to continue to cultivate good relations with the investment  community. With a broader portfolio of advanced engines in 2013,  substantial progress was achieved in 2013 to attain  leadership positions in multiple engine markets in China.  We have developed a strong corporate culture focusing  on technology, quality, market leadership, and profitability  alongside our financial discipline and core competencies,  which position us well for long-term success. As we look to the remainder of 2014, we are relying on our  competitive advantages and reputation for innovation  to sustain us through a more challenging environment.  China’s new government is targeting a growth rate of  7.5% in 2014 as it looks to restructure its economy towards  more domestic consumption away from investment and  export fuelled growth. In late April 2014, China’s Ministry  for Industry and Information Technology published a  directive that sales of National III vehicles are to cease by  December 31, 2014. As a result, we expect the pre-buying  of commercial vehicles to continue in 2014. As we enter  into the replacement cycle for trucks, we believe the  restocking exercise will help stabilize the overall engine  sales. With continuing urbanization across China, domestic  consumption is expected to increase resulting in a demand  for trucks for logistics purposes to move people and goods  across the country. Construction activity is expected to see  a slight improvement due to resumption of construction  of new public housing and high-speed rail programs that  would help stabilize demand for engines. As a result of  new government subsidies in the first quarter of 2014, we  expect engine sales in the agriculture segment to increase.  Growth in the bus market is expected to remain flat in 2014  but we anticipate higher growth in the natural gas bus  segment. We believe there will be continued momentum  in the sales of natural gas and off-road engines. We are also  Weng Ming HOH President, May 19, 2014 