According to a recent announcement, First Tractor Company Limited (the “Company”) reported that its subsidiary, YTO Diesel Engine, has entered into an Industrial Products Sale and Purchase Contract with Beijing Materials Handling Research Institute Co., Ltd. (“Beiqiyuan”) on 3 February 2026. The transaction, valued at RMB23 million, involves the construction of automated logistic systems, including vertical warehouses and AGV transport systems, to support YTO Diesel Engine’s non-road National V diesel engine industrialization project.
YTO Diesel Engine is a controlled subsidiary of the Company, while Beiqiyuan is wholly owned by China CAMC Engineering Co., Ltd. (“CAMCE”), which is in turn controlled by China National Machinery Industry Corporation (“Sinomach Group”). The agreement therefore constitutes a connected transaction under relevant listing rules since both parties are linked to Sinomach Group. The highest applicable percentage ratio is above 0.1% but below 5%, subjecting the transaction to reporting and announcement requirements without necessitating independent shareholders’ approval.
The planned construction encompasses automated storage facilities for cylinder blocks, heads, and spare parts, as well as AGV transport systems for machining lines. The upgrade aligns with broader modernization trends in agricultural machinery, as the Company aims to enhance its core component manufacturing and improve product quality. The total consideration for this project was determined through a competitive tender with multiple bidders, in which Beiqiyuan obtained the highest overall score.
First Tractor’s board had previously approved the relevant project details, noting that the contract was awarded on normal commercial terms via an open bidding process. The Company emphasized that it expects Beiqiyuan’s construction services to contribute to the ongoing automation and intelligent upgrades of its production lines, benefiting the high-quality development of the Group overall.
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