First Tractor Company Limited reported resilient first-quarter results for 2026, with modest top-line growth translating into a stronger bottom line and a marked improvement in operating cash flow.

Key Performance • Operating revenue reached RMB 4.67 billion, a year-on-year increase of 2.47 %. • Net profit attributable to shareholders grew 6.23 % to RMB 562.51 million, while profit after non-recurring items rose 6.47 % to RMB 561.20 million. • Basic and diluted earnings per share both improved to RMB 0.5006, up from RMB 0.4712 a year earlier. • Weighted average return on net assets edged up 0.04 percentage point to 7.08 %.

Cash Flow and Balance Sheet • Net cash generated from operating activities surged to RMB 230.19 million, a 164.44 % increase, supported by higher sales volume and revenue collection. • Total assets expanded 12.92 % from the end of 2025 to RMB 17.05 billion, driven mainly by a higher debt-investment balance and larger accounts receivable. • Owners’ equity attributable to shareholders rose 7.34 % to RMB 8.22 billion. • Cash and cash equivalents stood at RMB 1.40 billion at quarter-end, up RMB 62.73 million from December 2025.

Cost Structure and Expenses • Total operating costs increased 1.67 % to RMB 4.10 billion, broadly in line with revenue growth. • R&D spending rose to RMB 94.20 million, up 8.36 %, underscoring continued product development. • Financial expenses turned slightly positive at RMB 0.11 million versus a cost of RMB 0.68 million in the prior-year quarter, benefiting from higher interest income.

Non-recurring Items Non-recurring gains netted RMB 1.32 million. Government grants contributed RMB 1.10 million, partially offset by a small loss on asset disposals.

Shareholder Structure The company had 31,889 ordinary shareholders at the end of March. Controlling shareholder YTO Group Corporation held a 48.81 % stake, while HKSCC Nominees Limited held 34.67 %.

Additional Developments In February, YTO Group provided RMB 11.18 million of state-owned capital operation budget funds to Luoyang Tractors Research Institute, a controlled subsidiary, via an entrusted loan at market-based rates.

Overall, First Tractor delivered stable revenue growth, improved profitability, and stronger operating cash generation in the opening quarter of 2026, supported by disciplined cost control and a healthy balance sheet.