First Tractor Company Limited reported solid top-line expansion for the six months ended 30 June 2026, with total operating revenue rising 13.84% year on year to RMB 7.89 billion. Net profit attributable to equity holders increased 1.72% to RMB 782.29 million, translating into basic earnings per share of RMB 0.6962. Stripping out one-off items, underlying profit grew 23.39% to RMB 853.46 million.
Operating performance • Operating costs climbed 13.06% to RMB 6.58 billion, broadly in line with revenue growth and keeping gross profitability stable. • Operating profit slipped 4.37% to RMB 882.62 million, mainly reflecting a RMB 95.82 million fair-value loss on trading financial assets versus a gain a year earlier. • Financial expenses turned to a RMB 1.86 million charge from a RMB 1.64 million credit in 1H25 amid lower deposit yields. • Income-tax expense fell 20.11% to RMB 84.58 million, cushioning the drop in operating profit.
Segment highlights • Agricultural machinery remained the core driver, contributing RMB 6.94 billion of external sales, up 15% year on year. • Power machinery generated RMB 0.94 billion in external revenue, with exports of 65,500 diesel engines in the period. • Segment profit before tax stood at RMB 746.76 million for agricultural machinery and RMB 116.36 million for power machinery.
Cash flow and balance-sheet trends • Net operating cash inflow surged 167.26% to RMB 1.06 billion thanks to stronger receipts from higher sales volumes. • Net investing cash outflow widened to RMB 1.30 billion (1H25: RMB 0.77 billion) as the company boosted holdings of time deposits and other debt investments, lifting the balance of debt investments by 112.10% to RMB 6.02 billion. • Accounts receivable rose 484.10% to RMB 1.91 billion, reflecting seasonally concentrated tractor deliveries; notes receivable fell 48.77% after bill settlements. • Contract liabilities dropped 69.03% to RMB 175.30 million following delivery of prior orders. • The gearing ratio increased to 49.17% from 45.48% at year-end 2025, while the current ratio declined to 0.95, partly due to higher trade payables and lower cash.
Dividend proposal The Board proposes an interim cash dividend of RMB 0.6962 per 10 shares (tax inclusive), subject to shareholder approval, payable on or before 30 November 2026.
Operational developments During the half-year, First Tractor sold 50,100 tractors, up 17.05% and 11.55 percentage points ahead of industry growth, raising domestic market share by 2.77 points. Overseas tractor shipments jumped 47% to 8,006 units, aided by localisation of assembly plants in key “Belt and Road” regions. The group continued to invest in high-end intelligent and new-energy models, completed Phase I of its intelligent multi-purpose tractor capacity upgrade, and advanced digital platforms including the Dongfanghong Huinong app, which has attracted nearly 30,000 registered users.
Outlook Management plans to intensify domestic and overseas market expansion, accelerate product innovation in areas such as continuously variable transmission and hybrid tractors, progress digital and intelligent manufacturing projects, and pursue cost-efficiency measures to support sustained growth in the second half of 2026.
No material litigations, asset disposals, or preference shares were reported during the period. ShineWing Certified Public Accountants LLP continues as auditor for 2026.