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 | ...

Financial Performance - The company reported a profit distribution plan for the year, deciding not to distribute annual profits, considering its financial status[6]. - Total operating revenue for 2019 was approximately ¥5.83 billion, an increase of 2.62% compared to ¥5.68 billion in 2018[30]. - The net profit attributable to shareholders of the listed company for 2019 was approximately ¥61.48 million, a significant recovery from a loss of ¥1.30 billion in 2018[30]. - The net cash flow from operating activities for 2019 was approximately ¥330.73 million, compared to a negative cash flow of ¥384.40 million in 2018[30]. - Basic earnings per share for 2019 were ¥0.0624, a recovery from a loss of ¥1.3188 per share in 2018[33]. - The weighted average return on net assets for 2019 was 1.52%, a recovery from -27.91% in 2018[33]. - The company received government subsidies amounting to approximately ¥118.58 million in 2019, which were closely related to its normal business operations[41]. - Total revenue for 2019 was RMB 583,018 million, an increase from RMB 568,155 million in 2018[46]. - Net profit for 2019 was RMB 12,651 million, recovering from a loss of RMB 136,497 million in 2018[46]. - Total assets decreased to RMB 1,162,902 million in 2019 from RMB 1,314,074 million in 2018[49]. - Total liabilities reduced to RMB 684,516 million in 2019, down from RMB 848,467 million in 2018[49]. Operational Highlights - The company achieved a gross profit margin increase due to improved internal management and cost control, leading to a significant rise in comprehensive gross profit margin[35]. - The company disposed of inefficient assets, generating approximately ¥212 million in asset disposal income during the reporting period[35]. - The company’s core competitiveness is enhanced through product technology upgrades and manufacturing improvements, with 66 patents obtained in 2019[58]. - The company’s agricultural machinery products received multiple awards, including the "Product Gold Award" in the 2019 China Agricultural Machinery Industry Annual Awards[58]. - The sales volume of large and medium-sized tractors was 41,900 units, with a growth rate of 10.78%, outperforming the industry average[62]. - The company sold 90,252 diesel engines, with external market sales increasing by 15.87% year-on-year[62]. - The company completed the domestic market launch of its National IV diesel engine, indicating a leading position in non-road agricultural machinery development[62]. - The company achieved a significant reduction in operating expenses, with the expense ratio decreasing by 11.5 percentage points[66]. - The company actively promoted the application of automatic driving tractors, delivering 185 units to a cooperative in Inner Mongolia, marking a milestone in smart agriculture[62]. Financial Management - The company has established a financial subsidiary, China Yituo Group Financial Co., Ltd., to manage its financial operations[15]. - The company’s financial subsidiary provides financing services, contributing to product sales and customer support[52]. - The company reported a significant increase in non-recurring gains, including a notable rise in the value of trading financial assets[41]. - The company’s financial assets increased significantly by 347.17% to RMB 671,668,502.78[99]. - The company’s investment income from trading financial assets was RMB 29,657,820.99 during the reporting period[111]. - The company reported a significant decrease in short-term borrowings, down 48.89% to RMB 1,419,528,065.30[99]. Market Strategy - The company aims to expand its market presence in Southeast Asia, South America, and Africa, enhancing its international sales network[54]. - The company expects the agricultural machinery industry to face intensified competition and aims to enhance comprehensive competitiveness[128]. - The company plans to focus on the development of large, efficient, and environmentally friendly agricultural machinery in line with national policies[129]. - The company is committed to international market expansion, transitioning from simple international trade to a model that includes overseas marketing and manufacturing[133]. - The domestic tractor market is expected to continue facing challenges due to declining demand, prompting the company to explore overseas markets, particularly along the Belt and Road Initiative[136]. Risk Management - The company faces risks from rising raw material prices, which could impact profitability, and plans to optimize procurement processes to mitigate this risk[136]. - The company is accelerating the transition to meet new emission standards for diesel engines, ensuring it maintains a technological edge[136]. Corporate Governance - The company has received a standard unqualified audit report from Dahua Certified Public Accountants[5]. - The company has no non-operating fund occupation by controlling shareholders or related parties[8]. - The company has no violations in decision-making procedures for external guarantees[8]. - The company reported no significant litigation or arbitration matters during the year[154]. - The company and its controlling shareholders have maintained a good credit status, with no significant debts overdue[154]. Research and Development - Research and development expenses totaled RMB 356,609,547.39, accounting for 6.22% of operating revenue, with 1,295 R&D personnel, representing 17.02% of the total workforce[89][91].

Financial Performance - Net profit attributable to shareholders was CNY 44,955,415.92, representing a significant increase of 341.54% year-on-year[16]. - Operating revenue for the first quarter was CNY 2,076,914,102.11, a decrease of 1.80% compared to the same period last year[16]. - The company reported a significant increase in net profit after deducting non-recurring gains and losses, reaching CNY 7,896,075.22, up 2,305.79% year-on-year[16]. - The basic earnings per share for the quarter was CNY 0.0456, reflecting a year-on-year increase of 341.45%[16]. - The company reported a total comprehensive income of CNY 179,450,475.95 for Q1 2020, compared to CNY 35,255,706.50 in Q1 2019[51]. - The net profit for Q1 2020 reached CNY 143,742,265.42, significantly up from CNY 27,573,766.31 in Q1 2019, marking a growth of 420.36%[54]. Assets and Liabilities - Total assets at the end of the first quarter were CNY 11,675,503,446.65, an increase of 0.40% compared to the end of the previous year[16]. - The total number of shareholders at the end of the reporting period was 35,767, with the largest shareholder holding 41.66% of the shares[19]. - The company's total current assets amounted to RMB 6,583,627,132.52, an increase from RMB 6,415,221,116.11 at the beginning of the period[34]. - Total liabilities increased by 40.42% to RMB 1,758,721,434.93, driven by higher sales volume and increased procurement of raw materials[26]. - Total liabilities amounted to CNY 5,301,830,483.23, slightly up from CNY 5,284,427,575.25 year-over-year[49]. - Shareholders' equity increased to CNY 4,139,013,723.62 from CNY 3,995,271,458.20, reflecting a growth of 3.6%[49]. Cash Flow - The net cash flow from operating activities was negative CNY 76,312,396.98, compared to a positive CNY 197,909,701.91 in the previous year[16]. - Cash flow from operating activities showed a net outflow of CNY -76,312,396.98 in Q1 2020, contrasting with a net inflow of CNY 197,909,701.91 in Q1 2019[60]. - The total cash outflow from operating activities was 1,142,176,836.81 RMB in Q1 2020, compared to 1,087,213,562.91 RMB in Q1 2019, indicating increased operational expenditures[62]. - The company reported a cash outflow of 780,100,000.00 RMB for debt repayment in Q1 2020, compared to 410,000,000.00 RMB in Q1 2019, reflecting higher debt servicing obligations[64]. Expenses - The company's financial expenses decreased by 76.69% to RMB 5,550,692.84, influenced by changes in the structure and scale of short-term borrowings[26]. - The company reported a decrease in management expenses by 34.49% to RMB 69,908,446.61, due to a reduction in employee numbers and social security rates[26]. - Operating costs for Q1 2020 were CNY 1,919,556,556.01, down from CNY 2,142,524,876.61 in Q1 2019, a decrease of 10.4%[49]. - Research and development expenses for Q1 2020 were CNY 67,953,853.27, a slight decrease from CNY 71,799,584.34 in Q1 2019[49]. Investments - Investment income surged by 1,240.29% to RMB 328,925,344.78 due to the confirmation of investment income from a company entering bankruptcy proceedings[26]. - The company accepted a commission from China National Machinery Group to develop key technologies for various agricultural machinery, indicating a focus on R&D[28]. - Cash inflow from investment activities was CNY 185,557,948.86 in Q1 2020, down from CNY 300,434,310.11 in Q1 2019[60]. - The cash flow from investment activities showed a net inflow of 185,356,314.55 RMB in Q1 2020, contrasting with a net outflow of -42,246,361.08 RMB in Q1 2019, indicating improved investment performance[64].

Financial Performance - Operating revenue for the first nine months was CNY 5,124,458,627.07, an increase of 6.02% year-on-year[25]. - Net profit attributable to shareholders was CNY 70,176,827.65, a significant recovery from a loss of CNY 396,965,372.67 in the same period last year[25]. - The net profit for the first three quarters of 2019 was RMB 881,875,805.51, compared to RMB 830,125,343.43 in the same period of 2018, indicating a growth of about 6%[66]. - The net profit for Q3 2019 was approximately ¥65.08 million, compared to a net loss of ¥261.44 million in Q3 2018, indicating a significant turnaround[70]. - The total profit for Q3 2019 reached approximately ¥71.46 million, contrasting with a total loss of ¥251.05 million in the same period last year[70]. - The company reported a total profit of 340,185.53 RMB, compared to a total loss of 87,084,755.42 RMB in the same period last year[79]. Cash Flow - The net cash flow from operating activities for the first nine months was CNY 122,116,209.43, a turnaround from a negative cash flow of CNY 388,513,300.13 in the previous year[25]. - The net cash flow from operating activities for the first three quarters of 2019 was ¥283,823,531.01, an increase of 94.5% compared to ¥145,909,838.15 in the same period of 2018[87]. - Cash inflow from investment activities is 1,079,733,391.96 RMB, compared to 807,558,857.89 RMB in the previous year, indicating an increase of approximately 33.5%[85]. - The cash flow from financing activities shows a net outflow of 1,738,823,466.93 RMB, compared to a net outflow of 503,807,285.06 RMB in the same period last year[85]. - The ending balance of cash and cash equivalents was ¥1,083,823,676.97, down from ¥1,372,552,253.19 in the previous year[90]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 11,787,174,397.83, a decrease of 10.30% compared to the end of the previous year[25]. - The company's cash and cash equivalents decreased by 39.58% to CNY 936,365,762.90 from CNY 1,549,845,341.18 due to a reduction in financing scale during the reporting period[37]. - Accounts receivable increased by 156.80% to CNY 1,042,021,353.12 from CNY 405,771,306.07, attributed to an increase in credit sales[37]. - The company’s total liabilities saw a significant change, with current liabilities increasing by 675.71% to CNY 606,129,481.76 from CNY 78,139,035.95 due to an increase in long-term borrowings due within one year[39]. - Total liabilities decreased to CNY 7,055,063,394.12 from CNY 8,484,665,985.63, a reduction of approximately 16.8%[58]. - The total liabilities as of September 30, 2019, were RMB 6,010,813,253.81, down from RMB 6,485,311,924.11 at the end of 2018[64]. Shareholder Information - The total number of shareholders at the end of the reporting period was 38,635, with the largest shareholder, China Yituo Group Co., Ltd., holding 41.66% of the shares[30]. - The company's equity attributable to shareholders increased to CNY 4,077,587,444.47 from CNY 4,007,081,663.62, showing a growth of about 1.7%[58]. - The total equity attributable to shareholders increased to RMB 4,240,126,739.79 from RMB 4,188,376,277.71 in the previous year[66]. Strategic Moves - The company plans to transfer 100% equity of its Xinjiang subsidiary to China Yituo, indicating a strategic move to streamline operations[43]. - The company is participating in a joint bid for a financing leasing procurement project for new energy municipal sanitation vehicles, indicating a focus on expanding into new markets[44]. - The company plans to focus on expanding its market presence and investing in new technologies to drive future growth[89]. Research and Development - Research and development expenses for Q3 2019 were RMB 86,408,629.64, slightly down from RMB 88,766,351.43 in Q3 2018[67]. - The company's R&D expenses in Q3 2019 were approximately ¥69.92 million, slightly down from ¥72.99 million in Q3 2018[76].