(A joint stock company incorporated in The People’s Republic of China with limited liability) Stock Code: 00038 2020 INTERIM REPORT * For identification purposes only IMPORTANT NOTICE I. The Board and Board of Supervisors of the Company, and its Directors, Supervisors and senior management confirm that there are no false information, misleading statements or material omissions contained in this Interim Report, and severally and jointly accept responsibility for the truthfulness, accuracy and completeness of the contents therein. II. All the directors attended the meeting of the Board for approving the Interim Report of the Company. III. The Interim Report was unaudited. IV. Mr. Li Xiaoyu (the person in charge of the Company), Mrs. Zhao Junfen (the person in charge of the accounting function) and Mr. Yao Weidong (the person in charge of the Accounting Department and the accounting manager) have declared and confirmed the truthfulness, accuracy and completeness of the financial statements in the Interim Report. V. Proposal of profit distribution or proposal of capitalization from capital reserves for the Reporting Period as considered by the Board The Board did not propose to declare payment of any interim dividend for the six months ended 30 June 2020 (2019: Nil). VI. Statement for the risks involved in forward-looking statements Forward-looking statements such as the development strategy and business plan of the Company contained in this Interim Report do not constitute any substantial commitment to investors by the Company. Investors are advised to pay attention to risks. VII. Is there any misappropriation of funds not in the ordinary course of business by the controlling shareholders or its associates? No VIII. Is there any external guarantee in violation of any established decision-making procedures? No IX. Significant risks warning Please refer to Section IV “Management Discussion and Analysis” of this Interim Report for details. CONTENTS Section I Definitions 2 Section II Company Profile and Key Financial Indicators 6 Section III Overview of the Business of the Company 11 Section IV Management Discussion and Analysis 13 Section V Significant Events 33 Section VI Changes in Ordinary Shares and Information on Shareholders 55 Section VII Preference Shares 63 Section VIII Directors, Supervisors and Senior Management 64 Section IX Corporate Bonds 65 Section X Financial Statements Prepared in Accordance with the PRC 66 Accounting Standards for Business Enterprises Section XI Documents Available for Inspection 408 I DEFINITIONS Unless the context otherwise requires, the following terms should have the following meanings in the Interim Report: DEFINITION OF COMMONLY USED TERMS A Share(s) ordinary share(s) as approved by the CSRC which are issued to domestic investors and qualified foreign investors, traded on the PRC domestic stock exchange, denominated, subscribed for and traded in RMB agricultural machinery various machinery used in the crop farming and animal husbandry production, and the primary processing and treatment of agricultural and animal products auditor, accountant the financial statement auditor, Da Hua Certified Public Accountants (Special General Partnership), appointed by the Company as the Company’s auditor for the year of 2020 Board the board of Directors of the Company Board of Supervisors the board of Supervisors of the Company CAMACO China-Africa Machinery Corp. (中非重工投資有限公司), a controlled subsidiary of the Company CBIRC China Banking and Insurance Regulatory Commission Changtuo Company Changtuo Agricultural Machinery Equipment Group Company Limited (長拖農業機械裝備集團有限公司), a controlled subsidiary of the Company 2 FIRST TRACTOR COMPANY LIMITED I DEFINITIONS (CONTINUED) Changxing Company Luoyang Changxing Agricultural Machinery Company Limited (洛陽長興農業機械有限公司), a wholly-owned subsidiary of the Company the Company/Company First Tractor Company Limited (第一拖拉機股份有限公司) controlled subsidiary a company held as to more than 50% shares or equity interest by the Company, or a company actually controlled by the Company through agreement and arrangement crawler tractor tractor with crawler as walking device CSRC China Securities Regulatory Commission diesel engine internal combustion engine that uses diesel as fuel Director(s) the director(s) of the Company Group the Company and its controlled subsidiaries H Share(s) ordinary share(s) as approved by the CSRC which are issued to foreign investors, and listed with the approval of the Stock Exchange, denominated in RMB, subscribed for and traded in Hong Kong dollars hi-powered wheeled tractor wheeled tractor with horsepower of 100 (inclusive) or above Listing Rules of the Listing Rules of the Shanghai Stock Exchange (as Shanghai Stock Exchange amended from time to time) Listing Rules of the the Rules Governing the Listing of Securities on the Stock Exchange Stock Exchange (as amended from time to time) 2020 INTERIM REPORT 3 I DEFINITIONS (CONTINUED) mid-powered wheeled tractor wheeled tractor with horsepower of 25 (inclusive) to 100 power machinery products including diesel engine and fuel injection pump Securities and Futures Securities and Futures Ordinance, Chapter 571 of the Ordinance/SFO laws of Hong Kong Shanghai Stock Exchange the Shanghai Stock Exchange Sinomach China National Machinery Industry Corporation (中國 機械工業集團有限公司), the de facto controller of the Company Stock Exchange The Stock Exchange of Hong Kong Limited subsidiary a subsidiary as defined under the Listing Rules of the Stock Exchange Supervisor(s) the supervisor(s) of the Company Tractors Research Luoyang Tractors Research Institute Company Limited Company (洛陽拖拉機研究所有限公司), a controlled subsidiary of the Company YTO YTO Group Corporation (中國一拖集團有限公司), the controlling shareholder of the Company YTO Diesel Engine YTO (Luoyang) Diesel Engine Company Limited (一拖 （洛陽) 柴油機有限公司), a controlled subsidiary of the Company YTO Finance China YTO Group Finance Company Limited (中國一拖 集團財務有限責任公司), a controlled subsidiary of the Company 4 FIRST TRACTOR COMPANY LIMITED I DEFINITIONS (CONTINUED) YTO Flag YTO (Luoyang) Flag Auto-Body Company Limited (一拖 （洛陽）福萊格車身有限公司), a wholly-owned subsidiary of the Company YTO Foundry and Forging YTO (Luoyang) Foundry and Forging Company Limited (一拖（洛陽）鑄鍛有限公司), a wholly-owned subsidiary of the Company YTO France YTO France SAS (一拖法國農業裝備有限公司), a wholly- owned subsidiary of the Company YTO Fuel Injection Pump YTO (Luoyang) Fuel Injection Pump Company Limited (一拖（洛陽）燃油噴射有限公司), a controlled subsidiary of the Company (changed its name to YTO (Luoyang) Hydraulic Transmission Corporation Limited (一 拖（ 洛 陽）液壓傳動有限公司)) YTO Heilongjiang YTO Heilongjiang Agricultural Equipment Co., Ltd. (一 拖黑龍江農業裝備有限公司), a wholly-owned subsidiary of the Company YTO International Trade YTO International Economy and Trade Company Limited (一拖國際經濟貿易有限公司), a wholly-owned subsidiary of the Company YTO Shentong YTO (Luoyang) Shentong Construction Machinery Company Limited (一拖（洛陽）神通工程機械有限公司) ZF YTO Drive Axle ZF YTO (Luoyang) Drive Axle Company Limited (採 埃孚一拖（洛陽）車橋有限公司), an equity participating company of the Company 2020 INTERIM REPORT 5 II COMPANY PROFILE AND KEY FINANCIAL INDICATORS I. INFORMATION OF THE COMPANY Chinese name of the Company 第一拖拉機股份有限公司 Abbreviation in Chinese 一拖股份 English name of the Company First Tractor Company Limited Abbreviation in English First Tractor Legal representative of the Company Li Xiaoyu II. CONTACT PERSONS AND METHODS Representative of Secretary to the Board Securities Affairs Name Yu Lina Wei Yajun Contact address No. 154 Jianshe Road, Luoyang, No. 154 Jianshe Road, Luoyang, Henan Province, the PRC Henan Province, the PRC Telephone (86 379)64967038 (86 379)64970213 Facsimile (86 379)64967438 (86 379)64967438 E-mail [email protected] [email protected] III. INTRODUCTION OF CHANGES IN BASIC INFORMATION Registered address of the Company No. 154 Jianshe Road, Luoyang, Henan Province, the PRC Postal code of the registered address 471004 of the Company Office address of the Company No. 154 Jianshe Road, Luoyang, Henan Province, the PRC Postal code of the office address 471004 of the Company Website of the Company http://www.first-tractor.com.cn E-mail [email protected] Search index of changes during / the Reporting Period 6 FIRST TRACTOR COMPANY LIMITED II COMPANY PROFILE AND KEY FINANCIAL INDICATORS (CONTINUED) IV. INFORMATION DISCLOSURE AND CHANGES IN PLACE FOR DOCUMENTS INSPECTION Name of newspapers designated by the “China Securities Journal” and “Shanghai Company for dissemination of information Securities News” Website for publication of the Interim www.sse.com.cn Report as designated by the CSRC Website for publication of the Interim www.hkex.com.hk Report as designated by the Hong Kong Stock Exchange Place for inspection of the Interim Report Office of the Board of the Company of the Company (A Shares) Place for inspection of the Interim Report Golden China Consultants Limited, 15/ of the Company (H Shares) F, Chuang’s Tower, 30–32 Connaught Road Central, Central, Hong Kong Search index of changes during For details, please refer to “H Share the Reporting Period Announcement” published by the Company on the website of the Shanghai Stock Exchange on 1 July 2020 and “Change of Address of Principal Place of Business in Hong Kong” published by the Company on the website of the Stock Exchange on 30 June 2020 V. BASIC INFORMATION OF SHARES Abbreviation Stock exchange Abbreviation of shares prior Type for listing of shares Stock code to the change A Share Shanghai Stock Exchange 一拖股份 601038