First Tractor Company Limited (First Tractor) has announced a potential connected transaction involving the purchase of a 39% equity interest in Heilongjiang Beidahuang Reclamation Agricultural Machinery Equipment Co., Ltd. (the Target Company) from Luoyang Intelligent Agricultural Equipment Research Institute Co., Ltd. (Intelligent Research Institute Company) through a public tender on the China Beijing Equity Exchange. If the bid succeeds, First Tractor will additionally contribute a capital injection of approximately RMB8.00 million to the Target Company.

Transaction structure • Equity acquisition: 39% of the Target Company is to be acquired from Intelligent Research Institute Company, which currently owns 49%. • Post-transaction shareholding (assuming no other changes): Beidahuang Agricultural Service Group Co., Ltd. will remain at 51%, First Tractor will hold 39%, and Intelligent Research Institute Company’s stake would fall to 10%. • Capital injection: RMB8.00 million (about USD1.10 million) will be injected by First Tractor upon completion of the equity transfer.

Connected-party status and governance • Intelligent Research Institute Company is a connected person under Chapter 14A of the Hong Kong Listing Rules because YTO Group Corporation—First Tractor’s controlling shareholder with a 48.81% shareholding—owns 48.48% of Intelligent Research Institute Company. • The Board approved the proposed acquisition and capital injection on 28 April 2026. Directors who also serve on YTO’s board abstained from voting. • The deal is expected to be classified as a connected transaction requiring announcement and reporting, but it is exempt from independent shareholders’ approval under Hong Kong Listing Rules. It does not constitute a major asset reorganisation under Shanghai Stock Exchange rules.

Strategic context The Target Company manufactures agricultural machinery, IoT equipment, and related services—segments aligned with First Tractor’s core business in tractors, diesel engines, and agricultural power machinery. The proposed investment would broaden First Tractor’s footprint in intelligent agricultural equipment and services.

Next steps and cautionary note Final terms remain subject to the public tender outcome and detailed agreement negotiations. The company will issue additional disclosures in compliance with Hong Kong and Shanghai listing requirements once definitive contracts are signed. Shareholders and potential investors are advised to exercise caution in dealing in First Tractor shares until the transaction is finalised.