First Tractor Company Limited (First Tractor) has signed an equity transfer agreement to purchase 39% of Heilongjiang Beidahuang Reclamation Agricultural Machinery Equipment Co., Ltd. (the Target Company) from Luoyang Intelligent Agricultural Equipment Research Institute Co., Ltd. (Intelligent Research Institute Company) for RMB19.79 million.
The acquisition price matches the base price set in a public tender run by China Beijing Equity Exchange, where First Tractor was the sole bidder. A deposit of RMB5.93 million was paid on 14 May 2026; the remaining consideration will be settled within five business days of the agreement’s effective date using internal funds.
Upon completion, First Tractor will hold 39% of the Target Company. Despite this stake, the Target Company’s financial results will not be consolidated into First Tractor’s accounts.
Target Company profile and financials • Registered capital: RMB50 million • 2025 audited revenue: RMB3.67 million (2024: RMB0) • 2025 loss after tax: RMB0.46 million, widening from RMB0.13 million in 2024 • Audited net assets at 31 Dec 2025: RMB44.08 million
Strategic rationale Management expects the investment to deepen collaboration with Beidahuang Agribusiness Group Co., Ltd., supporting national initiatives to develop high-horsepower smart agricultural machinery. The partnership is intended to accelerate R&D, manufacturing and deployment of First Tractor’s high-end products, reinforcing food-security objectives.
Connected-transaction treatment Intelligent Research Institute Company is a connected person because First Tractor’s controlling shareholder, YTO Group Corporation, owns 48.48% of it. The deal’s size—below the 5% threshold—subjects it to reporting, annual review and announcement requirements under Chapter 14A of the Hong Kong Listing Rules but does not require independent shareholders’ approval. Five YTO-affiliated directors abstained from voting when the Board approved the transaction on 28 April 2026.
Completion timeline Registration of the equity transfer is to be finalised within five business days after the Beijing Equity Exchange issues the transfer certificate. The completion date will be the day First Tractor is entered in the Target Company’s shareholder register.
Comments