FIRST TRACTOR to Acquire 39% Stake in Heilongjiang Beidahuang Kenzheng Agricultural Equipment

FIRST TRACTOR Company Limited (00038) announced its intention to acquire a 39% equity interest in the target company, Heilongjiang Beidahuang Kenzheng Agricultural Equipment Co., Ltd. The acquisition will be conducted through a public bidding process on the Beijing Equity Exchange, with the stake being sold by Intelligent Research Institute Company. Should the bid be successful, FIRST TRACTOR plans to inject approximately RMB 8 million in additional capital into the target company following the completion of the share transfer. As of the announcement date, no formal equity transfer agreement, capital increase agreement, or letter of intent has been signed. Both the acquisition and the capital increase are contingent upon the outcome of the bidding process and further negotiations, if necessary.

Heilongjiang Beidahuang Kenzheng Agricultural Equipment Co., Ltd. has a registered capital of RMB 50 million. Its principal business activities include agricultural machinery manufacturing; production of specialized machinery for farming, forestry, animal husbandry, sideline production, and fishery; manufacturing of Internet of Things equipment; sales of intelligent agricultural machinery; agricultural machinery services; technical services, development, consultation, exchange, transfer, and promotion; industrial design services; research and development of machinery and equipment; development of new material technologies; software development; sales of artificial intelligence hardware; sales of intelligent robots; processing and sales of mechanical parts and components; sales of machinery and equipment; labor services (excluding labor dispatch); agricultural production托管 services; and services related to agricultural production technology, information, and facility construction and operation.

As of the announcement date, Beidahuang Agricultural Service Group Co., Ltd. holds a 51% equity interest in the target company, while Intelligent Research Institute Company holds the remaining 49%. China Yituo Group Co., Ltd., the controlling shareholder of FIRST TRACTOR, holds a 48.48% stake in Intelligent Research Institute Company. Other shareholders of Intelligent Research Institute Company include Jiangsu Yueda Intelligent Agricultural Equipment Co., Ltd. (12.08%), Qingyan (Luoyang) Advanced Manufacturing Industry Research Institute (10.24%), China National Agricultural Mechanization Science Research Institute Group Co., Ltd. (6.40%), and Nongxin Technology (Beijing) Co., Ltd. (6.40%). No other shareholder holds more than 5% of the equity in Intelligent Research Institute Company.