[Definitions](index=4&type=section&id=Item%201.%20Definitions) This chapter defines key terms used in the report, including A-shares, H-shares, agricultural machinery, subsidiaries, and related parties, providing a foundation for understanding the content - This section defines key terms used in the report, including **A-shares**, **H-shares**, **agricultural machinery**, **holding subsidiaries**, **related companies** (e.g., Sinomach Group, China YTO), and various business entities (e.g., Finance Company, Diesel Engine Company), providing a basis for understanding the report content[6](index=6&type=chunk)[8](index=8&type=chunk)[9](index=9&type=chunk) [Company Profile and Key Financial Indicators](index=8&type=section&id=Item%202.%20Company%20Profile%20and%20Key%20Financial%20Indicators) The company achieved strong performance growth in the first half of 2021, with significant increases in total operating revenue and net profit attributable to shareholders [Company Basic Information](index=8&type=section&id=Company%20Information) This section provides the company's basic business registration information, including names, legal representative, addresses, website, and contact details for the Board Secretary - The company's Chinese abbreviation is "**YTO Group**", and its legal representative is **Li Xiaoyu**[11](index=11&type=chunk) - The company's **A-shares** are listed on the Shanghai Stock Exchange (stock code **601038**); **H-shares** are listed on the Hong Kong Stock Exchange (stock code **0038**)[15](index=15&type=chunk) [Key Financial Data and Indicators](index=10&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) The company achieved strong performance growth in the first half of 2021, with total operating revenue increasing by 36.80% and net profit attributable to shareholders by 58.15% 2021 H1 Key Accounting Data (Unit: RMB Yuan) | Key Accounting Data | Current Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 5,631,797,809.93 | 4,116,725,509.00 | 36.80 | | Net Profit Attributable to Shareholders of Listed Company | 511,381,288.30 | 323,361,690.16 | 58.15 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains/Losses) | 484,770,421.11 | 290,273,866.74 | 67.00 | | Net Cash Flow from Operating Activities | 674,240,684.93 | 452,641,885.46 | 48.96 | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 5,475,833,783.72 | 4,338,179,097.26 (Prior Year-end) | 26.22 | | Total Assets (Period-end) | 12,387,174,665.07 | 12,342,608,882.99 (Prior Year-end) | 0.36 | 2021 H1 Key Financial Indicators | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 0.4646 | 0.3280 | 41.65 | | Diluted Earnings Per Share (Yuan/share) | 0.4646 | 0.3280 | 41.65 | | Weighted Average Return on Net Assets (%) | 9.90 | 7.64 | Increased by 2.26 percentage points | | Weighted Average Return on Net Assets (Excluding Non-recurring Gains/Losses) (%) | 9.38 | 6.86 | Increased by 2.52 percentage points | [Non-recurring Gains and Losses](index=12&type=section&id=Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) During the reporting period, the company's non-recurring gains and losses totaled RMB 26.61 million, primarily from government subsidies and financial asset gains 2021 H1 Non-recurring Gains and Losses Items (Unit: RMB Yuan) | Non-recurring Gains and Losses Item | Amount | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 3,388,682.05 | | Government Subsidies Included in Current Profit/Loss | 17,264,604.55 | | Fair Value Changes and Investment Income from Trading Financial Assets/Liabilities | 11,474,045.71 | | Other Non-operating Income and Expenses | 5,445,870.66 | | Other Gains and Losses Meeting the Definition of Non-recurring | -6,656,530.68 | | Impact on Minority Interests | -2,432,331.17 | | Income Tax Impact | -1,873,473.93 | | **Total** | **26,610,867.19** | [Management Discussion and Analysis](index=13&type=section&id=Item%203.%20Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the company's operational performance, industry trends, core competencies, and potential risks [Industry and Principal Business](index=13&type=section&id=Industry%20and%20Principal%20Business%20Overview) The company focuses on advanced agricultural machinery manufacturing, with principal businesses including R&D, manufacturing, and sales of agricultural and power machinery - The company's principal businesses are the R&D, manufacturing, and sales of **agricultural machinery** (tractors and key components) and **power machinery** (non-road diesel engines and components)[21](index=21&type=chunk) [Core Competencies](index=14&type=section&id=Core%20Competitiveness%20Analysis) The company's core competencies include technological R&D, a complete core component manufacturing system, efficient production, and strong brand influence - The company's core competitive advantages include **technological R&D**, **core component manufacturing system**, **production organization capabilities**, **product quality**, **marketing channels**, and the "**Dongfanghong**" brand influence[22](index=22&type=chunk) [Discussion and Analysis of Operations](index=14&type=section&id=Discussion%20and%20Analysis%20of%20Operating%20Conditions) In H1 2021, the company achieved significant revenue and profit growth, driven by increased demand for large and medium-sized tractors and strategic product development - Benefiting from national policies and market demand, domestic sales of **large and medium-sized tractors** increased by **14.9%** year-on-year in the first half of 2021[23](index=23&type=chunk) 2021 H1 Company Key Performance | Indicator | Value | Year-on-year Growth (%) | | :--- | :--- | :--- | | Total Operating Revenue | 5.632 billion Yuan | 36.80 | | Net Profit Attributable to Parent | 511 million Yuan | 58.15 | | Sales of Large and Medium-sized Tractors | 45.4 thousand units | 40.55 | - The company sold **1,103 large and medium-sized wheeled tractors** through finance leasing, a **38.05% year-on-year increase**, effectively easing users' purchasing capital pressure[26](index=26&type=chunk) - The company accelerated strategic product R&D, advancing the development of **power shift**, **continuously variable transmission**, and **full-series National IV tractors**; the "High-Horsepower Intelligent Tractor R&D Project" has been approved for initiation[26](index=26&type=chunk) - In the second half of the year, the company will focus on "seeking growth from the existing market," improving economic operational quality, and accelerating technological innovation, particularly advancing the commercialization of **large-scale efficient tractors** and the R&D of **National IV and National V diesel engines**[29](index=29&type=chunk) [Analysis of Major Operating Conditions](index=20&type=section&id=Major%20Operating%20Conditions%20Analysis%20During%20the%20Reporting%20Period) This section analyzes operating conditions through financial statement changes, asset-liability status, investment, and key subsidiaries, highlighting revenue growth and the impact of French subsidiary liquidation [Potential Risks](index=33&type=section&id=Potential%20Risks) The company faces market, operational, and technological upgrade risks, including potential slowdown in domestic demand, rising raw material costs, and challenges from new emission standards - Market risks: Domestic market growth may be constrained by prior demand release, and international market expansion is hindered by the **COVID-19 pandemic**[52](index=52&type=chunk) - Operational risks: Facing cost pressure from **high raw material prices**, intensified industry competition, and potential impact on current performance from **disposal of inefficient assets**[53](index=53&type=chunk) - Technology upgrade risks: The transition to **National IV emission standards** for non-road diesel engines poses higher requirements for the company's product R&D, manufacturing technology, and supply chain[54](index=54&type=chunk) [Corporate Governance](index=36&type=section&id=Item%204.%20Corporate%20Governance) This section details the company's governance structure, including shareholder meetings, board and supervisory board changes, and compliance with securities regulations [Corporate Governance Status](index=36&type=section&id=Brief%20Introduction%20to%20Shareholders'%20Meetings) During the reporting period, the company held two shareholder meetings, with all proposals passed, and experienced changes in senior management positions - Two shareholder meetings were held during the reporting period, the **2021 First Extraordinary General Meeting** and the **2020 Annual General Meeting**, approving matters such as the election of supervisors, revision of regulations, and approval of annual reports and profit distribution plans[55](index=55&type=chunk) - Senior personnel changes: **Mr. Wang Dongxing** was elected as Chairman of the Supervisory Board; **Mr. Cai Jibo** resigned from his positions as Vice Chairman and Executive Director due to work changes[56](index=56&type=chunk)[57](index=57&type=chunk) - The Board of Directors recommended **not distributing an interim dividend** for the six months ended June 30, 2021[61](index=61&type=chunk) [Environmental and Social Responsibility](index=40&type=section&id=Item%205.%20Environmental%20and%20Social%20Responsibility) The company adheres to environmental protection laws and actively fulfills social responsibilities through poverty alleviation and rural revitalization initiatives [Environmental and Social Responsibility](index=40&type=section&id=Environmental%20Information%20Overview) The company strictly complies with environmental laws, has robust pollution control measures, and actively contributes to rural revitalization through various support programs - In the first half of 2021, the company received **no administrative penalties** for environmental issues, and all pollution control facilities operated stably[62](index=62&type=chunk)[63](index=63&type=chunk) - The company actively fulfills its social responsibilities, supporting rural revitalization through **consumption-based poverty alleviation** and **agricultural machinery-based poverty alleviation**, organizing the purchase of local specialty agricultural products worth **RMB 776,000** since 2021[68](index=68&type=chunk) [Significant Matters](index=44&type=section&id=Item%206.%20Significant%20Matters) This section covers the company's fulfillment of commitments, related party transactions, and other significant events, including major contracts and litigation status [Commitments and Related Party Transactions](index=44&type=section&id=Fulfillment%20of%20Commitments) During the reporting period, the company, its controlling shareholder, and actual controller strictly fulfilled all commitments, with no unfulfilled obligations - The company, its controlling shareholder, and actual controller have all strictly fulfilled various commitments, including those related to **resolving horizontal competition**[70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk) - The company has ongoing **daily related party transactions** with its controlling shareholder, China YTO, including procurement, sales, comprehensive services, energy supply, asset leasing, and financial services through the finance company (deposits, loans, bills)[78](index=78&type=chunk)[79](index=79&type=chunk) - Significant related party transaction: The controlling shareholder, China YTO, subscribed for all **137,795,275 A-shares** issued by the company in a non-public offering in 2020, with a lock-up period of **36 months**[105](index=105&type=chunk) [Major Contracts, Litigation, and Other Matters](index=67&type=section&id=Major%20Contracts%20and%20Their%20Fulfillment) The company continued to manage Changtuo Company's equity, reappointed its auditor, and reported no significant litigation or share transactions - The company continues to fulfill the agreement to **manage 33.33% equity** in Changtuo Company held by Sinomach Group[106](index=106&type=chunk) - Approved by the General Meeting of Shareholders, **Dahua Certified Public Accountants (Special General Partnership)** was re-appointed as the company's financial and internal control auditor for 2021[107](index=107&type=chunk) - There were **no significant lawsuits or arbitrations** involving the company during the reporting period[108](index=108&type=chunk) [Share Changes and Shareholder Information](index=70&type=section&id=Item%207.%20Share%20Changes%20and%20Shareholder%20Information) This section details changes in the company's share capital and shareholder structure, including a non-public offering and major shareholder holdings [Share Changes and Shareholder Structure](index=70&type=section&id=Share%20Changes) During the reporting period, the company's total share capital increased due to a non-public offering to its controlling shareholder, China YTO - The company non-publicly issued **138 million A-shares** to its controlling shareholder, China YTO, at an issue price of **RMB 5.08/share**, raising net proceeds of **RMB 694 million** for working capital replenishment[115](index=115&type=chunk) - After the issuance, the company's total share capital increased from **985.85 million shares** to **1.124 billion shares**; China YTO's shares have a **36-month lock-up period**[115](index=115&type=chunk)[117](index=117&type=chunk) Top Three Shareholders' Holdings as of Report End | Shareholder Name | Shares Held at Period End | Proportion (%) | Share Nature | | :--- | :--- | :--- | :--- | | China YTO Group Corporation | 548,485,853 | 48.81 | State-owned Legal Person | | HKSCC NOMINEES LIMITED | 388,157,319 | 34.54 | Overseas Legal Person | | Hong Kong Securities Clearing Company Limited | 9,803,138 | 0.87 | Overseas Legal Person | [Preferred Shares Information](index=80&type=section&id=Item%208.%20Preferred%20Shares%20Information) This section confirms the absence of preferred shares during the reporting period - The company had **no preferred shares** during the reporting period[128](index=128&type=chunk) [Bonds Information](index=80&type=section&id=Item%209.%20Bonds%20Information) This section confirms the absence of corporate bonds during the reporting period - The company had **no corporate bonds** during the reporting period[128](index=128&type=chunk) [Financial Report](index=81&type=section&id=Item%2010.%20Financial%20Report%20Prepared%20According%20to%20China%20Enterprise%20Accounting%20Standards) This section presents the company's financial statements and detailed notes, prepared according to China Enterprise Accounting Standards [Financial Statements](index=81&type=section&id=Financial%20Statements) This section provides unaudited consolidated and parent company financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity Consolidated Balance Sheet Key Items (June 30, 2021) | Item | Amount (Yuan) | | :--- | :--- | | Total Assets | 12,387,174,665.07 | | Total Liabilities | 6,277,443,276.67 | | Total Equity Attributable to Parent Company Owners | 5,475,833,783.72 | Consolidated Income Statement Key Items (Jan-Jun 2021) | Item | Amount (Yuan) | | :--- | :--- | | Total Operating Revenue | 5,631,797,809.93 | | Total Profit | 531,167,058.96 | | Net Profit | 513,860,368.97 | | Net Profit Attributable to Parent Company Shareholders | 511,381,288.30 | Consolidated Cash Flow Statement Key Items (Jan-Jun 2021) | Item | Amount (Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 674,240,684.93 | | Net Cash Flow from Investing Activities | -430,148,426.27 | | Net Cash Flow from Financing Activities | 127,284,025.33 | | Net Increase in Cash and Cash Equivalents | 368,584,960.30 | [Notes to Financial Statements](index=117&type=section&id=Notes%20to%20Financial%20Statements) The notes detail the company's basic information, accounting policies, and estimates, with specific explanations for major financial statement items, including changes in consolidation scope and related party transactions - Change in consolidation scope: Due to the judicial liquidation of its subsidiary, YTO (France) Agricultural Equipment Co., Ltd., the company no longer exercises control and thus **excluded it from the consolidation scope** this period[530](index=530&type=chunk) - Segment information: The company's operations are divided into three reporting segments: **agricultural machinery**, **power machinery**, and **financial services**; in H1 2021, the agricultural machinery segment contributed the majority of operating revenue and profit[668](index=668&type=chunk)[669](index=669&type=chunk) - Financial instrument risks: The company faces primary financial risks including **credit risk**, **liquidity risk**, and **market risk** (mainly exchange rate risk); the company has established corresponding risk management policies to address these risks[553](index=553&type=chunk)

Financial Performance - The company reported a significant increase in revenue for the first half of 2021, with total revenue reaching 1.2 billion RMB, representing a year-on-year growth of 15%[13]. - The net profit attributable to shareholders for the first half of 2021 was 150 million RMB, an increase of 20% compared to the same period last year[13]. - Total revenue for the first half of the year reached CNY 5.63 billion, a year-on-year increase of 36.80%[20]. - Net profit attributable to shareholders was CNY 511.38 million, reflecting a 58.15% increase compared to the same period last year[20]. - The company achieved a weighted average return on equity of 9.90%, an increase of 2.26 percentage points year-on-year[22]. - Basic earnings per share rose to CNY 0.4646, a 41.65% increase compared to the same period last year[22]. - The total profit for the first half of 2021 was CNY 531,167,058.96, compared to CNY 334,250,679.88 in the previous year, indicating an increase of around 59%[177]. - The company's investment income from joint ventures and associates was CNY 560,541,212.06, significantly higher than CNY 347,706,638.26 in the previous year, which is an increase of about 61%[177]. Market Expansion and Product Development - User data indicates that the company has expanded its customer base by 10%, now serving over 500,000 active users[13]. - The company plans to launch two new tractor models in Q3 2021, aiming to capture a larger market share in the agricultural machinery sector[13]. - The company is focusing on expanding its market presence in Southeast Asia, with plans to establish a new distribution center in Vietnam by the end of 2021[13]. - The company is focusing on the development of high-horsepower intelligent tractors and has initiated projects for power-shifting and continuously variable transmission tractors[34]. - The company plans to maintain a strategic focus on innovation and structural optimization to solidify its leading position in the industry[34]. - The company actively responded to market changes, improving product offerings and marketing strategies to meet user demands for high-performance agricultural machinery[31]. Research and Development - Research and development expenses increased by 25% in the first half of 2021, reflecting the company's commitment to innovation and new technology[13]. - R&D expenses rose by 20.91% to ¥187,715,339.78, reflecting the company's commitment to advancing project development[36]. - The company's R&D expenses increased to CNY 138,077,055.85 in the first half of 2021, up from CNY 94,850,003.87 in the same period of 2020, reflecting a growth of approximately 45.4%[180]. Financial Stability and Compliance - The company has no significant non-operating fund occupation by controlling shareholders or related parties, ensuring financial stability[5]. - There are no violations of decision-making procedures regarding external guarantees, maintaining compliance with regulatory standards[5]. - The company has not proposed any profit distribution plan for the reporting period, indicating a focus on reinvestment for growth[5]. - The company is committed to ensuring risk management measures are effectively implemented to mitigate operational risks[34]. - The company has implemented significant pollution control measures, achieving compliance with national and local emission standards during the reporting period[74]. Operational Efficiency - The net cash flow from operating activities was CNY 674.24 million, up 48.96% from the previous year[20]. - The net cash flow from operating activities improved by 48.96% to ¥674,240,684.93, compared to ¥452,641,885.46 in the previous year[36]. - The company’s cash flow from financing activities included CNY 980,000,000.00 in borrowings, a decrease from CNY 1,300,000,000.00 in the same period last year[192]. - The company reported a total cash inflow from operating activities of CNY 2,987,344,431.31, slightly down from CNY 3,171,735,243.77 in the previous year[192]. Shareholder Information - The total number of shares increased to 1,123,645,275 after a non-public issuance of 137,795,275 shares, representing a 12.26% increase in limited shares[142]. - The largest shareholder, China Yituo Group Co., Ltd., holds 548,485,853 shares, accounting for 48.81% of total shares, with an increase of 137,795,275 shares during the reporting period[147]. - The company has committed to not transferring the shares acquired through the non-public issuance for 36 months from the issuance date, which will end on February 19, 2024[145]. Environmental and Social Responsibility - The company purchased local agricultural products worth CNY 776,000 to support poverty alleviation efforts[77]. - The company has established a long-term mechanism for poverty alleviation and rural revitalization, aligning with national strategies[77]. - The company organized emergency response drills for environmental incidents, enhancing its ability to manage pollution events effectively[74]. - The company has developed a dynamic monitoring mechanism to prevent poverty, ensuring stable income sources for households[77].

Financial Performance - Operating revenue for the period was ¥3,222,188,599.04, representing a significant growth of 55.14% compared to the same period last year[12]. - Net profit attributable to shareholders of the listed company was ¥388,261,682.45, marking a 95.60% increase year-on-year[12]. - Basic earnings per share increased to ¥0.3603, up 78.99% from ¥0.2013 in the same period last year[12]. - Total operating revenue for Q1 2021 reached $3,248,779,081.70, a 55% increase from $2,097,315,992.71 in Q1 2020[44]. - Net profit for Q1 2021 was $390,009,465.82, compared to $184,487,398.51 in Q1 2020, representing a 111% increase[47]. - Operating profit for Q1 2021 was $386,201,776.00, up from $164,009,094.91 in Q1 2020, indicating a growth of 135%[44]. - The total comprehensive income for Q1 2021 was $388,698,266.88, compared to $179,450,475.95 in Q1 2020, reflecting a growth of 116%[47]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥12,855,950,614.49, an increase of 4.16% compared to the end of the previous year[12]. - The company's total assets increased by 32.00% to approximately CNY 1.72 billion due to an increase in structured deposits[19]. - The company's total liabilities decreased to RMB 6,312,797,172.01 as of March 31, 2021, from RMB 6,874,682,789.41 at the end of 2020, a reduction of approximately 8.19%[31]. - The company's total liabilities decreased to CNY 4,736,024,500.84 from CNY 4,884,480,229.46, a reduction of about 3.0%[40]. Cash Flow - The net cash flow from operating activities was ¥194,000,471.15, a recovery from a negative cash flow of ¥76,312,396.98 in the previous year[12]. - Cash inflow from operating activities totaled CNY 1.85 billion, up from CNY 1.49 billion year-over-year[56]. - The net cash flow from investing activities was CNY -455.22 million, a decrease from a positive cash flow of CNY 82.07 million in the first quarter of 2020[56]. - The net cash flow from financing activities was CNY 337.28 million, recovering from a negative cash flow of CNY -241.89 million in the first quarter of 2020[58]. Shareholder Information - The total number of shareholders at the end of the reporting period is 56,228, with 55,890 being A shares and 338 being H shares[16]. - The top ten shareholders hold a total of 548,485,853 shares, accounting for 48.81% of the total shares, with China Yituo Group Co., Ltd. being the largest shareholder[16]. Retained Earnings and Equity - Net assets attributable to shareholders of the listed company amounted to ¥5,420,368,063.15, reflecting a 24.95% increase year-on-year[12]. - The company’s retained earnings increased by 48.83% to approximately CNY 1.18 billion, indicating strong operational performance[19]. - The owner's equity increased significantly to CNY 4,903,727,212.75, compared to CNY 3,881,390,777.59, reflecting a growth of approximately 26.3%[40]. Market Strategy - The company is focused on expanding its market presence and enhancing product development strategies[12]. - The company plans to continue expanding its market presence and investing in new product development to sustain growth[21].

股份代號 : 0038.HK 601038.SH （於中華人民共和國註冊成立的股份有限公司） 2020 年度報告 * 僅供識別 重要提示 | 未出席董事職務 | 未出席董事姓名 | 未出席董事的原因說明 | 被委託人姓名 | | --- | --- | --- | --- | | 董事長 | 黎曉煜 | 參加中央黨校學習 | 蔡濟波 | 公司第八屆董事會第二十七次會議審議通過了公司2020年度利潤分配預案：以公司目前總股本1,123,645,275股 為基數，向全體股東每10股派發現金紅利人民幣0.75元（含稅），共計派發現金紅利84,273,395.63元，公司本年 度不進行資本公積金轉增股本。 六. 前瞻性陳述的風險聲明 本報告涉及的本公司發展戰略、經營計劃等前瞻性陳述不構成本公司對投資者的實質承諾，敬請投資者注意風 險。 七. 是否存在被控股股東及其關聯方非經營性佔用資金情況 否 八. 是否存在違反規定決策程序對外提供擔保的情況？ 否 九. 是否存在半數以上董事無法保證公司所披露年度報告的真實性、準確性和完整性 否 十. 重大風險提示 本公司結合自身所處行業及經營運行情況，本著重要性原則，在本年度報告「 ...

Financial Performance - In 2020, the total operating revenue reached ¥7,582,476,787.76, a 30.06% increase from ¥5,681,547,536.68 in 2018[28]. - The net profit attributable to shareholders was ¥280,150,740.30, a significant increase of 355.71% compared to ¥61,475,427.17 in 2019[28]. - The net cash flow from operating activities was ¥1,248,778,258.13, up 277.58% from ¥330,731,669.68 in 2019[28]. - The company's total assets increased by 6.14% to ¥12,342,608,882.99 at the end of 2020, compared to ¥11,629,022,385.51 at the end of 2019[28]. - Basic earnings per share rose to ¥0.2842, a 355.45% increase from ¥0.0624 in 2019[28]. - The weighted average return on equity increased to 6.66%, up 5.14 percentage points from 1.52% in 2019[28]. - Total revenue for 2020 reached RMB 758,248,000, an increase of 30% compared to RMB 583,018,000 in 2019[37]. - Net profit for 2020 was RMB 28,096,000, a significant increase from RMB 12,651,000 in 2019, marking a growth of 121%[37]. - Total assets as of December 31, 2020, amounted to RMB 1,234,261,000, up from RMB 1,162,902,000 in 2019, reflecting a growth of 6.2%[37]. - The company's total liabilities increased to RMB 736,709,000 in 2020 from RMB 684,516,000 in 2019, representing a rise of 7.6%[37]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 0.75 per 10 shares, totaling RMB 84,273,395.63, based on a total share capital of 1,123,645,275 shares[8]. - In 2020, the company reported a cash dividend of 0.75 RMB per 10 shares, amounting to 84,273,395.63 RMB, which represents 30.08% of the net profit attributable to ordinary shareholders[92]. Audit and Compliance - The company received a standard unqualified audit report from Dahua Certified Public Accountants[7]. - The company is committed to ensuring the accuracy and completeness of its financial reports, as stated by its management[6]. - The company has not violated decision-making procedures for providing guarantees[10]. - The company has not experienced any major litigation or arbitration matters during the reporting period[103]. - There are no significant changes in accounting policies or estimates that would impact the financial statements[102]. - The company has not faced any risks of suspension or termination of listing during the reporting period[102]. - The company has not made any profit forecasts that were not met during the reporting period[99]. - The company and its controlling shareholder, China Yituo, maintained a good credit status during the reporting period, with no significant debts overdue or unfulfilled court judgments[105]. Operational Performance - The company focused on its core business and improved product profitability, leading to a robust operational performance in 2020 despite the pandemic[31]. - The company has maintained its focus on advanced agricultural machinery manufacturing, with no significant changes in its main business operations during the reporting period[40]. - The company is implementing a two-tier R&D model, combining headquarters and subsidiaries to enhance product development efficiency[40]. - The agricultural machinery market saw significant growth in 2020, driven by rising grain prices and increased farmer enthusiasm for planting[40]. - The company is advancing its product technology, with key projects like the continuously variable transmission tractor entering trial phases in 2020[43]. - The company is committed to enhancing its core technology and product quality, targeting world-class standards in tractor manufacturing[86]. - The company will implement cost management strategies across the entire product chain to improve operational efficiency[86]. Research and Development - Research and development expenses totaled 339,036,171.41 RMB, accounting for 4.53% of operating income[65]. - The number of R&D personnel was 1,193, representing 15.89% of the total workforce[65]. - The company is committed to enhancing its research and development capabilities to meet the rising demand for intelligent agricultural products and comply with stricter emission standards[90]. - The company is focusing on the implementation of key research projects and the industrialization of products to seize opportunities in the new round of industry upgrades[90]. Market Expansion - The company expanded its overseas market presence, achieving significant growth in key regions such as Asia and Russian-speaking areas[46]. - The company is focusing on international market expansion and optimizing entry strategies for overseas markets[86]. - The company is focusing on international market expansion, particularly in Africa, while facing challenges from the COVID-19 pandemic and natural disasters affecting purchasing power[87]. Related Party Transactions - The company engaged in significant related party transactions, including a procurement agreement with China Yituo, with a transaction amount of 95 million RMB and an actual transaction amount of 61.71 million RMB, accounting for 9.77% of similar transactions[108]. - The sales agreement with China Yituo involved a transaction amount of 37 million RMB, with an actual transaction amount of 31.22 million RMB, representing 4.24% of similar transactions[108]. - The company entered into a deposit service agreement with China Yituo, with a transaction amount of 280 million RMB and an actual transaction amount of 181.78 million RMB, representing 40.72% of similar transactions[111]. - The loan service agreement with China Yituo had a transaction amount of 130 million RMB, with an actual transaction amount of 95.32 million RMB, accounting for 42.31% of similar transactions[111]. Social Responsibility - The poverty alleviation efforts resulted in the reduction of poverty incidence in the supported village from 0.34% in 2019 to 0% by the end of 2020, with 7 individuals lifted out of poverty[157]. - The company invested 80,000 yuan in industrial poverty alleviation projects, helping 7 registered impoverished individuals to escape poverty[159]. - The company provided assistance to 23 impoverished students with a total funding of 500 yuan[160]. - The company plans to maintain existing support policies and funding for poverty alleviation in 2021, ensuring stability in assistance efforts[163]. - The company has actively engaged in social responsibility initiatives, as detailed in its annual social responsibility report[164]. Environmental Compliance - The company reported an average concentration of particulate matter at 7.23 mg/m³ and a total emission of 32.33 tons for particulate matter, while non-methane total hydrocarbons had an average concentration of 12.99 mg/m³ and a total emission of 2.25 tons[165]. - The company has implemented pollution control upgrades in its casting systems and exhaust gas treatment for engines, significantly reducing air pollutant emissions per unit volume[168]. - The company has established an emergency response plan for environmental incidents, including a response team and necessary equipment, and conducted drills to enhance its pollution incident response capabilities[170]. - The company has developed a self-monitoring plan for pollutants, utilizing both online monitoring and third-party testing to ensure compliance with environmental regulations[171]. Shareholder Information - The total number of common shareholders as of the end of the reporting period was 42,909, with 42,566 being A-share holders and 343 being H-share holders[182]. - The largest shareholder, China Yituo Group Co., Ltd., holds 410,690,578 shares, representing 41.66% of the total shares[185]. - HKSCC Nominees Limited is the second-largest shareholder with 387,879,319 shares, accounting for 39.34%[185]. - The report indicates that the top ten shareholders do not have any related party relationships or concerted actions among them[186]. - The company has no strategic investors or general legal entities that have become top ten shareholders through new share placements[186].

Financial Performance - Net profit attributable to shareholders increased by 580.71% to CNY 477,698,750.10 for the year-to-date period[29] - Operating income rose by 24.79% to CNY 6,394,849,666.10 compared to the same period last year[29] - The total profit for the period reached ¥494,610,761.78, a 360.61% increase compared to the same period last year[39] - The company reported a significant increase in net profit excluding non-recurring gains and losses, reaching CNY 434,534,226.29[29] - The company reported a net profit of CNY 1,187,313,175.71 for the first nine months of 2020, compared to CNY 637,020,523.92 in the same period of 2019, indicating a growth of about 86%[61] - Net profit for Q3 2020 was ¥158,633,292.69, compared to ¥65,076,178.67 in Q3 2019, representing a 143.7% increase[68] Asset and Liability Changes - Total assets increased by 11.06% to CNY 12,915,596,104.60 compared to the end of the previous year[29] - The company's accounts receivable increased by 177.08% to ¥1,126,565,345.15 due to seasonal sales peaks in the agricultural machinery sector[38] - The company's liabilities for accounts payable increased by 67.04% to ¥2,092,053,424.70, reflecting higher procurement amounts during the peak production and sales season[38] - The company reported a total current liability of RMB 7.27 billion, up from RMB 6.31 billion at the end of 2019, indicating an increase of approximately 15.2%[51] - The company's total liabilities reached CNY 7,737,990,294.44, an increase from CNY 6,845,156,596.06, indicating a rise of approximately 13%[60] Cash Flow and Investments - Net cash flow from operating activities surged by 530.56% to CNY 770,015,117.53 year-to-date[29] - The total operating cash flow for the first three quarters of 2020 was ¥5,201,239,253.41, compared to ¥4,675,910,126.11 in the same period of 2019, indicating a 11.2% increase[82] - The net cash flow from operating activities for Q3 2020 was ¥770,015,117.53, a substantial increase from ¥122,116,209.43 in Q3 2019[82] - The company reported a total investment income of ¥19,916,081.74 in Q3 2020, recovering from a loss of ¥2,144,006.36 in Q3 2019[77] - The company reduced its cash outflow from financing activities by 55.06% to -¥781,396,524.75, due to decreased loan repayments compared to the previous year[42] Shareholder Information - The total number of shareholders reached 30,928, with the largest shareholder holding 41.66% of shares[32] - The company's controlling shareholder, China Yituo, received conditional approval from the Hong Kong Securities and Futures Commission for a waiver regarding the obligation to make a general offer for the company's shares due to the subscription of non-publicly issued A-shares[43] Operational Efficiency - Basic earnings per share increased by 580.62% to CNY 0.4846[29] - Weighted average return on equity improved by 9.36 percentage points to 11.10%[29] - The company reported a gross profit margin of approximately 31.3% in Q3 2020, up from 20.8% in Q3 2019[64] - The company achieved a gross profit margin of approximately 17.8% in Q3 2020, compared to 10.5% in Q3 2019, indicating improved profitability[74] Research and Development - Research and development expenses for Q3 2020 were ¥94,319,369.25, an increase of 9.5% from ¥86,408,629.64 in Q3 2019[64] - Research and development expenses increased to ¥87,819,076.47 in Q3 2020, up from ¥69,923,627.02 in Q3 2019, reflecting a 25.6% rise[74] Strategic Initiatives - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[66]

Dividend Policy - The board of directors proposed not to distribute any interim dividends for the six months ending June 30, 2020, consistent with 2019[2]. Financial Transparency and Compliance - The financial report for the first half of 2020 has not been audited, ensuring transparency in financial disclosures[2]. - The company maintains a commitment to accurate and complete financial reporting, as stated by the responsible persons[2]. - The company operates under the supervision of the China Securities Regulatory Commission, ensuring compliance with regulatory standards[4]. - The company has maintained compliance with corporate governance standards as per the listing rules[55]. Risk Management - The company emphasizes that forward-looking statements regarding development strategies and operational plans do not constitute a commitment to investors, highlighting associated risks[2]. - The report includes a significant risk warning in Section 4, "Discussion and Analysis of Operating Conditions"[2]. - The company is focused on risk prevention and establishing a robust risk warning mechanism to ensure stable development[28]. - The company faces market risks due to overcapacity in the domestic agricultural machinery market and potential international trade pressures[49]. - The company is at risk of rising raw material prices, particularly for steel and rubber, which could impact profitability[50]. Financial Performance - Total operating revenue for the first half of 2020 reached RMB 4,116,725,509, representing a year-on-year increase of 20.16%[15]. - Net profit attributable to shareholders was RMB 323,361,690, a significant increase of 1,548.75% compared to the same period last year[15]. - Basic earnings per share for the first half of 2020 was RMB 0.3280, up 1,548.24% from RMB 0.0199 in the same period last year[16]. - The company's total assets at the end of the reporting period amounted to RMB 11,954,679,592.66, an increase of 2.80% from the previous year[15]. - The net cash flow from operating activities was RMB 452,641,885.46, reflecting a year-on-year increase of 3.22%[15]. - The company's comprehensive gross margin improved to 20.60%, an increase of 5.93 percentage points year-on-year[25]. - The company's total comprehensive income for the first half of 2020 was RMB 319,808,796.62, compared to RMB 12,715,338.37 in the same period of 2019, reflecting a strong performance improvement[125]. Sales and Market Position - The sales volume of large and medium-sized tractors increased by 22.95% year-on-year, while diesel engine sales grew by 19.62%[17]. - The sales volume of large and medium-sized tractors reached 32,300 units, with a growth rate of 22.95%, outperforming the industry average by 8.32 percentage points[24]. - The sales of diesel engine products amounted to 56,900 units, with external market sales increasing by 9% year-on-year[24]. - The market share of the company increased by 1.64 percentage points during the reporting period[24]. Research and Development - The company is advancing key R&D projects such as power shift, national IV tractors, and continuously variable transmission (CVT) technology[26]. - The company is focused on the development of National V diesel engines to meet future regulatory requirements[51]. Cost Management - Operating costs rose by 12.10% to CNY 3,257,678,123.70, which is lower than the revenue growth rate due to effective cost control measures[30]. - The company’s management expenses decreased by 17.56% to CNY 139,146,303.86, attributed to enhanced cost control and a reduction in workforce[30]. Related Party Transactions - The company reported a total transaction amount of RMB 95,000,000 for related party transactions, with an actual transaction amount of RMB 24,932,000, representing 8.86% of the total transactions[66]. - The company engaged in energy supply transactions totaling RMB 22,000,000, with RMB 8,241,000 realized, which is 95.80% of the total[68]. Environmental and Social Responsibility - The company has established two recycled water treatment stations and 102 dust removal facilities, ensuring compliance with national pollution discharge standards[89]. - The company helped 7 registered impoverished individuals to escape poverty during the reporting period, with a total investment of CNY 80,000 in poverty alleviation projects[85]. - The company has committed to ongoing poverty alleviation plans, focusing on education, healthcare, housing, and safe drinking water[87]. Employee and Shareholder Information - The company has 7,374 employees as of June 30, 2020, with a salary system linked to job performance[94]. - The total number of ordinary shareholders reached 30,638 by the end of the reporting period, with 30,276 holding A-shares[96]. - The largest shareholder, China Yituo Group Co., Ltd., holds 41.66% of the shares, totaling 410,690,578 shares[98]. Accounting and Financial Reporting - The company's financial reports are prepared in accordance with the Chinese Accounting Standards and have been approved by the board of directors[178]. - The company continuously evaluates important accounting estimates and key assumptions based on historical experience and reasonable expectations for future events[180]. - The financial statements prepared by the company comply with accounting standards and accurately reflect the financial position and operating results for the reporting period[184].

[Company Profile and Key Financial Indicators](index=5&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) [Company Information and Contact Details](index=5&type=section&id=%E4%BA%8C%E3%80%81%20%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF%E4%B8%8E%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) The company's fundamental business registration, stock overview, and contact information for key personnel are detailed | Item | Information | | :--- | :--- | | **Company Chinese Name** | First Tractor Company Limited | | **Company Chinese Abbreviation** | YTO Shares | | **Legal Representative** | Li Xiaoyu | | **A-share Code** | 601038 | | **H-share Code** | 00038 | [Key Accounting Data and Financial Indicators](index=6&type=section&id=%E4%B8%83%E3%80%81%20%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) H1 2020 performance surged, with total revenue up **20.16%** and net profit increasing **1548.75%**, due to sales and cost control 2020 H1 Key Accounting Data | Key Accounting Data | Current Period (Jan-Jun) (Yuan) | Prior Period (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Total Operating Revenue** | 4,116,725,509.00 | 3,425,973,267.68 | 20.16 | | **Net Profit Attributable to Shareholders of Listed Company** | 323,361,690.16 | 19,612,525.70 | 1,548.75 | | **Net Profit Attributable to Shareholders of Listed Company After Deducting Non-recurring Gains and Losses** | 290,273,866.74 | -65,158,017.08 | N/A | | **Net Cash Flow from Operating Activities** | 452,641,885.46 | 438,522,196.92 | 3.22 | | **Total Assets** | 11,954,679,592.66 | 11,629,022,385.51 | 2.80 (vs. end of prior year) | 2020 H1 Key Financial Indicators | Key Financial Indicators | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Basic Earnings Per Share (Yuan/share)** | 0.3280 | 0.0199 | 1,548.24 | | **Weighted Average Return on Net Assets (%)** | 7.64 | 0.49 | Increase 7.15 percentage points | | **Weighted Average Return on Net Assets After Deducting Non-recurring Gains and Losses (%)** | 6.86 | -1.62 | Increase 8.48 percentage points | - Performance growth was driven by effective epidemic response, optimized product mix, and innovative marketing, leading to **22.95%** YoY sales growth for large/medium tractors and **19.62%** for diesel engines, alongside significant cost and personnel optimization[22](index=22&type=chunk) 2020 H1 Non-recurring Gains and Losses | Non-recurring Gain/Loss Item | Amount (Yuan) | | :--- | :--- | | Gains/losses on disposal of non-current assets | 920,722.93 | | Government grants | 16,787,436.56 | | Fair value changes and investment income from trading financial assets, etc | 21,458,143.84 | | Other non-operating income/expenses and items | 2,543,354.38 | | Impact on minority interests and income tax | -8,621,834.29 | | **Total** | **33,087,823.42** | [Company Business Overview](index=8&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E5%85%AC%E5%8F%B8%E4%B8%9A%E5%8A%A1%E6%A6%82%E8%A6%81) [Principal Business and Operating Model](index=8&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1%E3%80%81%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F%E5%8F%8A%E8%A1%8C%E4%B8%9A%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) The company's core business is R&D, manufacturing, and sales of agricultural and power machinery, maintaining stable operations - The company primarily engages in the R&D, manufacturing, and sales of agricultural machinery (full range of tractors and key components) and power machinery (non-road diesel engines and components). The controlling subsidiary, Finance Company, provides intra-group financial services[29](index=29&type=chunk) - The company's core competitiveness lies in its industry-leading technological R&D capabilities and the most complete tractor production and manufacturing system in China, with large and medium-sized tractors and non-road diesel engines holding a leading position in the industry[31](index=31&type=chunk) [Discussion and Analysis of Operations](index=9&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) [Overview of Operations](index=9&type=section&id=%E4%B8%80%E3%80%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) H1 2020 saw effective COVID-19 management, boosting tractor sales and market share, resulting in significant revenue and profit growth - The company coordinated epidemic prevention and work resumption, rapidly increasing production capacity from **30%** in February to full capacity in March by assisting suppliers and streamlining logistics, ensuring supply for the spring plowing market[34](index=34&type=chunk) - The company accelerated its marketing service model transformation, utilizing new media platforms for live streaming and online ordering, while strengthening offline service guarantees, demonstrating its responsibility as an industry leader[34](index=34&type=chunk) - In the second half of the year, the company will focus on strengthening marketing capabilities, internal operational management, deepening reforms, accelerating key R&D projects (e.g., power shift, CVT stepless transmission, intelligent agricultural machinery), and preventing operational risks[37](index=37&type=chunk) [Analysis of Principal Business](index=10&type=section&id=%28%E4%B8%80%29%20%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) During the reporting period, the company's principal business showed strong performance, with operating revenue up **20.68%** and effective cost and expense control Financial Statement Key Item Variation Analysis | Item | Current Period (Yuan) | Prior Period (Yuan) | Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 4,074,490,101.51 | 3,376,284,242.98 | 20.68 | Increased sales of leading products | | **Operating Cost** | 3,257,678,123.70 | 2,906,028,393.82 | 12.10 | Effective cost control, lower increase than revenue | | **Administrative Expenses** | 139,146,303.86 | 168,787,482.38 | -17.56 | Strengthened expense control, reduced labor costs | | **Financial Expenses** | 20,468,909.37 | 41,393,377.07 | -50.55 | Reduced loan size, decreased interest expenses | | **Investment Income** | 347,706,638.26 | 38,659,947.90 | 799.40 | Investment income from Shentong Company's bankruptcy liquidation | | **Credit Impairment Losses** | -328,278,476.45 | -16,409,018.88 | N/A | Shentong Company's bankruptcy liquidation, provision for creditor's rights losses | | **Asset Impairment Losses** | -75,014,691.87 | -33,828,164.42 | N/A | Shentong Company's bankruptcy liquidation, provision for impairment of long-term equity investment | [Analysis of Assets and Liabilities](index=12&type=section&id=%28%E4%B8%89%29%20%E8%B5%84%E4%BA%A7%E3%80%81%E8%B4%9F%E5%80%BA%E6%83%85%E5%86%B5%E5%88%86%E6%9E%90) As of the reporting period end, total assets were **11.95 billion Yuan**, with a **0.90 percentage point** decrease in asset-liability ratio, indicating improved solvency Major Asset and Liability Item Changes | Item Name | Period-end Amount (Yuan) | Change from Prior Year-end (%) | Explanation | | :--- | :--- | :--- | :--- | | **Cash and Cash Equivalents** | 1,023,163,108.94 | -41.37 | Repayment of some borrowings | | **Short-term Borrowings** | 1,280,445,446.52 | -52.86 | Repayment of some short-term borrowings | | **Accounts Payable** | 1,935,272,247.30 | 38.87 | Increased procurement volume, accounts payable not yet due | | **Non-current Liabilities Due Within One Year** | 352,886,423.19 | 668.05 | Long-term borrowings due within one year increased YoY | | **Long-term Borrowings** | 99,900,000.00 | -88.49 | Long-term borrowings due in over one year decreased | - As of the reporting period end, some of the company's assets were restricted, including **229 million Yuan** in monetary funds (primarily guarantees), **13.97 million Yuan** in notes receivable (pledged), and **60.04 million Yuan** in net fixed and intangible assets (mortgaged for borrowings)[50](index=50&type=chunk) [Analysis of Major Holding and Participating Companies](index=14&type=section&id=%28%E5%85%AD%29%20%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) Diesel Engine Company was the primary profit driver, while Finance Company's net profit decreased due to increased credit impairment losses Subsidiaries with Over 10% Impact on Company's Net Profit | Company Name | Reporting Period Operating Revenue (Yuan) | Reporting Period Operating Profit (Yuan) | Reporting Period Net Profit (Yuan) | | :--- | :--- | :--- | :--- | | Diesel Engine Company | 930,960,000 | 66,260,000 | 63,350,000 | - Shentong Company entered bankruptcy liquidation on January 13, 2020, and is no longer included in the company's consolidated financial statements[58](index=58&type=chunk) - Several subsidiaries experienced significant changes in operating performance: Changxing Company and Diesel Engine Company saw net profits increase by **24.70 million Yuan** and **25.19 million Yuan** YoY, respectively, due to increased sales; Finance Company's net profit decreased by **24.20 million Yuan** YoY due to increased credit impairment losses[59](index=59&type=chunk) [Risk Analysis](index=16&type=section&id=%28%E4%BA%8C%29%20%E5%8F%AF%E8%83%BD%E9%9D%A2%E5%AF%B9%E7%9A%84%E9%A3%8E%E9%99%A9) The company faces risks from market competition, raw material prices, technological upgrades, and subsidiary losses, addressed by enhanced marketing and asset optimization - Market Risk: Domestic agricultural machinery market faces overcapacity and intense price competition; global epidemic and trade frictions may hinder internationalization efforts[62](index=62&type=chunk) - Technology Upgrade Risk: The transition to National IV emission standards for non-road diesel engines poses higher demands on the company's product technology, manufacturing costs, and supply chain[63](index=63&type=chunk) - Operational Risk: Persistent losses in some subsidiaries and the disposal of inefficient assets and businesses may impact current period performance[63](index=63&type=chunk) [Significant Matters](index=16&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) [Significant Related Party Transactions](index=19&type=section&id=%E5%8D%81%E3%80%81%20%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company engages in ongoing related party transactions with its controlling shareholder and affiliates, covering procurement, sales, services, and finance, all at market prices 2020 Jan-Jun Major Daily Related Party Transactions (Unit: Yuan) | Transaction Content | Related Party | 2020 Estimated Upper Limit | Actual Amount Incurred | | :--- | :--- | :--- | :--- | | Procurement of Goods | China YTO Group | 950,000,000 | 249,320,000 | | Sales of Goods | China YTO Group | 370,000,000 | 138,060,000 | | Comprehensive Services | China YTO Group | 200,000,000 | 88,490,000 | | Procurement of Energy | China YTO Group | 220,000,000 | 82,410,000 | | Deposit Services (Finance Company to China YTO Group) | China YTO Group | 2,800,000,000 | 1,485,250,000 | | Loan Services (Finance Company to China YTO Group) | China YTO Group | 1,300,000,000 | 953,240,000 | - The company provided entrusted loans to its subsidiary Changtuo Company totaling no more than **21 million Yuan**[100](index=100&type=chunk) [Significant Contracts and Their Performance](index=27&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%20%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company maintains an equity trusteeship for Changtuo Company and has provided **317.21 million Yuan** in external guarantees, primarily for dealers and subsidiaries - The company continues to hold the trusteeship of **33.33%** equity in Changtuo Company, owned by its indirect controlling shareholder, Sinomach Group, with no changes in this arrangement[101](index=101&type=chunk) Guarantee Situation Summary | Item | Amount | | :--- | :--- | | **Total Guarantees (A+B)** | 317,206,582.00 Yuan | | **Ratio of Total Guarantees to Company's Net Assets (%)** | 6.27 | | **External Guarantee Balance (A)** | 107,596,582.00 Yuan | | **Guarantee Balance for Subsidiaries (B)** | 209,610,000.00 Yuan | [Share Changes and Shareholder Information](index=32&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E6%99%AE%E9%80%9A%E8%82%A1%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) [Shareholder Information](index=32&type=section&id=%E4%BA%8C%E3%80%81%20%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) The company's total share capital structure remained unchanged, with **30,638** common shareholders and controlling shareholder China YTO Group holding **41.66%** - As of the reporting period end, the company had a total of **30,638** common shareholders (**30,276** A-share holders and **362** H-share holders)[124](index=124&type=chunk) Top Five Shareholders' Shareholding | Shareholder Name | Period-end Shareholding (Shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | China YTO Group Co., Ltd | 410,690,578 | 41.66 | State-owned Legal Person | | HKSCC NOMINEES LIMITED | 387,807,319 | 39.34 | Overseas Legal Person | | China Construction Bank - BOCOM Schroders Economic New Power Mixed Fund | 20,221,919 | 2.05 | Other | | China Merchants Bank - BOCOM Schroders Innovation Leading Mixed Fund | 11,157,951 | 1.13 | Other | | China Construction Bank Henan Branch | 9,444,950 | 0.96 | Other | - The company plans to issue **137,795,275** A-shares to its controlling shareholder, China YTO Group Co., Ltd., at **5.08 Yuan/share**, a proposal approved by the shareholders' meeting[123](index=123&type=chunk) [Financial Report](index=36&type=section&id=%E7%AC%AC%E5%8D%81%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) [Financial Statements](index=36&type=section&id=%E4%BA%8C%E3%80%81%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the company's H1 2020 consolidated and parent company financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in shareholders' equity Consolidated Balance Sheet Summary (June 30, 2020) | Item | Amount (Yuan) | | :--- | :--- | | **Total Assets** | 11,954,679,592.66 | | **Total Liabilities** | 6,928,825,142.93 | | **Total Shareholders' Equity** | 5,025,854,449.73 | | **Shareholders' Equity Attributable to Parent Company** | 4,390,438,798.59 | Consolidated Income Statement Summary (Jan-Jun 2020) | Item | Amount (Yuan) | | :--- | :--- | | **Total Operating Revenue** | 4,116,725,509.00 | | **Total Operating Costs** | 3,766,196,746.53 | | **Total Profit** | 334,250,679.88 | | **Net Profit** | 321,648,966.58 | | **Net Profit Attributable to Parent Company Shareholders** | 323,361,690.16 | Consolidated Cash Flow Statement Summary (Jan-Jun 2020) | Item | Amount (Yuan) | | :--- | :--- | | **Net Cash Flow from Operating Activities** | 452,641,885.46 | | **Net Cash Flow from Investing Activities** | -184,193,067.76 | | **Net Cash Flow from Financing Activities** | -593,000,244.29 | | **Net Increase in Cash and Cash Equivalents** | -326,241,929.52 | [Notes to Consolidated Financial Statements](index=92&type=section&id=%E4%B8%83%E3%80%81%20%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) Financial statement notes detail key items, showing a significant increase in accounts receivable primarily from current balances, a slight decrease in inventory, and agricultural machinery as the core revenue and profit driver [Accounts Receivable](index=94&type=section&id=5%E3%80%81%20%E5%BA%94%E6%94%B6%E8%B4%A6%E6%AC%BE) As of period-end, accounts receivable increased significantly to **982 million Yuan** from **407 million Yuan** at period-start, with the majority being current and a **30.49%** overall provision rate for bad debts Accounts Receivable Aging Analysis and Provision for Bad Debts | Aging | Period-end Book Balance (Yuan) | Provision for Bad Debts (Yuan) | Provision Rate (%) | | :--- | :--- | :--- | :--- | | Within 1 Year | 872,919,240.42 | 13,595,052.78 | 1.56 | | 1 to 2 Years | 32,669,142.70 | 10,626,269.13 | 32.53 | | 2 to 3 Years | 17,612,935.26 | 11,854,434.20 | 67.31 | | Over 3 Years | 489,307,148.84 | 394,556,424.19 | 80.64 | | **Total** | **1,412,508,467.22** | **430,632,180.30** | **30.49** | [Segment Information](index=164&type=section&id=6%E3%80%81%20%E5%88%86%E9%83%A8%E4%BF%A1%E6%81%AF) The company's operations are segmented into agricultural machinery, power machinery, and financial services, with agricultural machinery being the core business and primary contributor to revenue and profit in H1 2020 2020 H1 Segment Performance Summary (Unit: Yuan) | Item | Agricultural Machinery | Power Machinery | Financial Services | Inter-segment Elimination | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | **Operating Revenue** | 3,728,201,783.22 | 950,990,093.75 | 67,774,123.55 | 630,240,491.52 | 4,116,725,509.00 | | **Total Profit** | 297,592,409.01 | 57,546,157.30 | 6,953,116.14 | 27,841,002.57 | 334,250,679.88 |

Financial Performance - The company reported a total revenue of 1.2 billion CNY for the first half of 2020, representing a year-on-year increase of 15%[16]. - The net profit attributable to shareholders was 150 million CNY, an increase of 20% compared to the same period last year[16]. - Total operating revenue for the first half of the year reached RMB 4,116,725,509, a year-on-year increase of 20.16%[22]. - Net profit attributable to shareholders was RMB 323,361,690, representing a significant increase of 1,548.75% compared to the same period last year[22]. - The company achieved a basic earnings per share of RMB 0.3280, up 1,548.24% year-on-year[23]. - The net profit for the reporting period was impacted by the bankruptcy liquidation of Shentong Company, leading to increased asset impairment losses[43]. - The company reported a net profit increase of 2,519,000 yuan for the diesel engine company, attributed to higher sales and revenue[61]. - The company reported a net profit of ¥852,813,369.07 for the period, up from ¥529,451,678.91, indicating a year-over-year increase of 60.9%[146]. - The company reported a total comprehensive income of approximately $319.90 million for the period, with a significant portion attributed to undistributed profits of $323.36 million[180]. Sales and Market Expansion - The company sold 10,000 units of agricultural machinery in the first half of 2020, a growth of 12% year-on-year[16]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in sales in that region by the end of 2021[16]. - Sales of large and medium-sized tractors increased by 22.95% year-on-year, while diesel engine product sales rose by 19.62%[22]. - The sales volume of large and medium-sized tractors reached 32,300 units, with a growth rate of 22.95%, outperforming the industry average by 8.32 percentage points[35]. - The company plans to enhance its marketing capabilities and product adaptability to improve market share and customer trust[64]. Research and Development - The company is investing 50 million CNY in R&D for new technologies in agricultural machinery[16]. - The company is advancing key projects such as power shift and CVT technology upgrades to support the development of smart agricultural machinery[35]. - The company's research and development expenses for the first half of 2020 were approximately ¥94.85 million, up from ¥86.17 million in the same period of 2019, indicating a focus on innovation[158]. Financial Management and Investments - The company has no non-operating fund occupation by controlling shareholders or related parties[9]. - The company has set a performance guidance of 10% revenue growth for the full year 2020[16]. - The company is exploring potential mergers and acquisitions to enhance its product offerings and market reach[16]. - The company’s total assets reached ¥11,954,679,592.66, an increase from ¥11,629,022,385.51, representing a growth of 2.79%[146]. - The company’s total equity increased to ¥5,025,854,449.73 from ¥4,783,865,789.45, marking a growth of 5.06%[146]. Operational Efficiency - The company continues to focus on optimizing product mix and enhancing marketing strategies to capture market opportunities[22]. - The company optimized its product structure, leading to a higher proportion of high-value-added products, enhancing market competitiveness[35]. - The company is committed to improving operational efficiency by disposing of ineffective assets and optimizing resource allocation[64]. Environmental Responsibility - The company reported a monthly average concentration of particulate matter at 7.23 mg/m³, with a total emission of 15.95 tons[116]. - The company operates 102 sets of dust removal facilities and 23 sets of exhaust gas purification facilities, all of which are in stable operation and meet national or local emission standards[117]. - The company has established an emergency response plan for environmental incidents, which is filed with government environmental departments[120]. - The company has not experienced any environmental pollution incidents in the first half of 2020[122]. Shareholder Information - The total number of ordinary shareholders reached 30,638, with 30,276 holding A shares and 362 holding H shares[126]. - China Yituo Group Co., Ltd. holds 41.66% of the company's shares, totaling 410,690,578 shares[126]. - The company did not repurchase, sell, or redeem any of its listed shares during the reporting period[133]. - The largest shareholder, China Yitu Group Co., Ltd., holds 410,690,578 shares, representing 69.15% of the beneficial ownership and 41.66% of the total issued share capital[132]. Social Responsibility - During the reporting period, the company helped 7 registered poor households to escape poverty through various measures, with a total investment of RMB 800,000 in industrial development poverty alleviation[111]. - The company purchased local agricultural products worth over RMB 800,000 to support poverty alleviation efforts[110]. - The company provided educational support to 23 impoverished students, with a total investment of RMB 5,000[111]. - The company plans to continue its poverty alleviation efforts in line with national requirements, focusing on education, healthcare, housing, and safe drinking water[115].

* 僅供識別 重要提示 綜合考慮本公司資金狀況，根據公司《章程》，公司董事會制訂了不進行年度利潤分配的預案。詳情請查閱本年 度報告第五節「重要事項」中的有關分紅的內容。 六. 前瞻性陳述的風險聲明 本報告涉及的本公司發展戰略、經營計劃等前瞻性陳述不構成本公司對投資者的實質承諾，敬請投資者注意風 險。 七. 是否存在被控股股東及其關聯方非經營性佔用資金情況？ 否 股份代號 : 0038.HK 601038.SH 2019 年度報告 一. 第一拖拉機股份有限公司（「本公司」）董事會（「董事會」）、監事會（「監事會」）及董事（「董事」）、監事（「監事」）、高級 管理人員保證年度報告內容的真實、準確、完整，不存在虛假記載、誤導性陳述或重大遺漏，並承擔個別和連帶 的法律責任。 二. 本公司全體董事出席董事會會議。 三. 大華會計師事務所（特殊普通合夥）為本公司出具了標準無保留意見的審計報告。 四. 公司負責人黎曉煜、主管會計工作負責人趙俊芬及會計機構負責人（會計主管人員）閔莉聲明：保證年度報告中財 務報告的真實、準確、完整。 五. 經董事會審議的報告期利潤分配預案或公積金轉增股本預案 | 第一節 | 釋義 | 5 | ...