[ET Net News Agency, 27 January 2022] First Tractor Company Limited (00038) said the
net profit attributable to the shareholders of the company for the year 2021 is estimated
to be RMB400 million to RMB460 million, representing an increase of RMB120 million to
RMB180 million as compared with the corresponding period last year, or a year-on-year
increase of 42.86% to 64.29%.
In 2021, benefiting from the implementation of the national food security strategy,
rural revitalization strategy and other policies and measures, the domestic agricultural
production in regions continued to be active. The domestic agricultural machinery industry
maintained a momentum of growth. Meanwhile, the adjustment of a new round of subsidy
policies for the purchase of agricultural machinery and the increase in raw material
prices also brought many challenges to the operation of the enterprises.
In the face of the complex external market environment, the company insisted on the
strategic development idea of "innovation-driven, optimize the structure, penetrate the
market and seize the high-end", actively and effectively seized the domestic and overseas
markets, with the sales volume of hi-powered and mid-powered tractor products of the
company increasing by approximately 30% year-on-year, and the sales volume of diesel
engine products increasing by approximately 19% year-on-year. The company took measures to
reduce costs and increase efficiency by locking prices and establishing reserves of raw
materials, promoting cost management of full value chain and implementing lean production,
which suppressed the impact of the significant increase in raw material prices on the
company's profitability to the extent, resulting in a significant year-on-year improvement
in the operating results of the company.
During the reporting period, the company recorded non-recurring profit and loss items of
approximately RMB83 million, including government grants included in the current profit or
loss and changes in fair value of financial assets held. (RC)