First Tractor Company Limited reported audited results for the year ended 31 December 2025, highlighting weaker top- and bottom-line performance amid a subdued domestic agricultural-machinery market, partially offset by export growth and cost controls.
Revenue and Profitability • Total operating revenue declined 9.09% year on year to RMB 10.82 billion, reflecting lower sales of core agricultural-machinery and diesel-engine products. • Net profit attributable to equity holders fell 11.93% to RMB 0.81 billion. Basic and diluted EPS slipped to RMB 0.7226 from RMB 0.8206 the prior year. • Despite the revenue contraction, the consolidated gross profit margin edged up 0.37 percentage points to 15.15%, supported by company-wide cost-reduction initiatives.
Segment Breakdown • Agricultural-machinery revenue reached RMB 9.89 billion (–9.72% YoY) with a gross margin of 14.04% (+0.46 ppt). • Power-machinery (diesel engines) contributed RMB 2.61 billion (–10.71% YoY) and recorded a gross margin of 10.84% (–0.12 ppt). • Domestic sales fell 12.29% to RMB 9.63 billion, while overseas revenue expanded 29.04% to RMB 1.19 billion, raising the export share to 11% of group revenue.
Cost and Expenses • Operating costs decreased 9.48% to RMB 9.18 billion, broadly in line with the sales decline. • R&D expenditure rose 6.39% to RMB 0.55 billion, equivalent to 5.08% of revenue, as the company accelerated investment in high-end tractors, alternative-energy platforms and digital upgrades. • Financial expenses swung to a loss of RMB 1.42 million from a RMB 44.07 million gain, mainly due to lower deposit interest income and higher exchange-rate losses.
Cash Flow and Balance Sheet • Net cash generated from operations fell 24.70% to RMB 0.92 billion, mirroring the profit contraction. • Total assets increased 2.76% to RMB 15.10 billion, while total liabilities edged down, trimming the gearing ratio to 45.48% (–1.58 ppt). • Liquidity metrics improved: the current ratio rose to 1.36 (2024: 1.14) and the quick ratio to 1.17 (2024: 0.93).
Dividend Proposal The board proposes a cash dividend of RMB 1.9746 per 10 shares, amounting to approximately RMB 221.88 million, subject to shareholder approval at the 2025 AGM. No scrip dividend is planned.
Management Commentary The company cited subdued grain prices, higher farming input costs and intensified competition as key factors weighing on domestic demand. Export momentum, product-mix optimisation and cost control partially mitigated pressure. Looking ahead, First Tractor plans to deepen domestic market cultivation, accelerate overseas expansion, advance high-end intelligent products such as power-shift and CVT tractors, and pursue new-energy solutions to support its “15th Five-Year Plan” objectives.
No significant post-balance-sheet events were reported up to the announcement date of 26 March 2026.