First Tractor : ANNOUNCEMENT ON RECEIPT OF GOVERNMENT GRANTS (in PDF)

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ANNOUNCEMENT ON RECEIPT OF GOVERNMENT GRANTS

1. BASIC INFORMATION ON RECEIPT OF GRANTS
   First Tractor Company Limited* (the "Company") and its subsidiaries received government grants amounting to RMB34,090,570.89 on a accumulative basis from 4 January 2021 to the date of this announcement, including income related government grants of RMB27,090,570.89 and asset related government grants of RMB7,000,000.00, details of which are as follows:

				Units: RMB (Yuan)
Name of the				File number	Asset/income
subsidized project	Amount	Representation	Date	(Government approval)	related
Project funding for "Research on	39,000.00	Deferred income	2021.1.26	Mission Statement of Project for	Income related
Fault Early Warning and Remote				"Research on Fault Early Warning
Diagnosis Technology for Tractor				and Remote Diagnosis Technology
Operation Information Collection"				for Tractor Operation Information
				Collection"
Project funding for "Key Technology	95,000.00	Deferred income	2021.1.26	Mission Statement of Project for "Key	Income related
Research and Machine				Technology Research and Machine
Development of Hilly Mountain				Development of Hilly Mountain
Tractor"				Tractor"
Project funding for "Research	205,000.00	Deferred income	2021.2.26	Mission Statement of Project for	Income related
and Development of Cloud				"Research and Development of
Collaborative Intelligent Operating				Cloud Collaborative Intelligent
Robot System"				Harvesting Robot System"
Recognition for advanced unit in	80,000.00	Other income	2021.3.1	Jiang Kai Dang Gong Wei Fa [2021]	Income related
Jiangyan Economic Development				No. 7
District for 2020

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Name of the				File number	Asset/income
subsidized project	Amount	Representation	Date	(Government approval)	related
Reward for transformation and	75,600.00	Other income	2021.3.16	Jiang Kai Dang Gong Wei Fa [2021]	Income related
upgrading of industrial enterprises				No. 3
Project funding for "Research on	1,346,192.00	Deferred income	2021.3-	Mission Statement of "Project for	Income related
and Application of Collaborative			2021.4	Research on and Application of
Manufacturing Integrated				Collaborative Manufacturing
Technology for Agricultural				Integrated Technology for
Equipment Manufacturing				Agricultural Equipment
Industry Cluster Regional				Manufacturing Industry Cluster
Network"				Regional Network"
Special funding for development of	5,000,000.00	Deferred income	2021.5.25	Luo Cai Yu [2021] No.95	Income related
advanced manufacturing industry
Special funds for foreign economic	274,300.00	Other income	2021.5.25	Luo Cai Yu [2020] No.270	Income related
and trade development
Subsidies for introduction of senior	300,000.00	Other income	2021.6.10	Declaration Letter for High-end	Income related
foreign experts				Foreign Expert Introduction
				Program of Henan
Government subsidies for research	2,946,280.00	Other income	2021.6.11	Luo Cai Yu [2019] No. 506	Income related
and development of enterprises
Supporting fund for employment	2,100,000.00	Other income	2021.6.11	Document relating to the "supporting	Income related
stabilization				fund for employment stabilization"
Funding for research and	406,990.00	Other income	2021.6.15	Yu Cai Ke [2017] No. 166	Income related
development of enterprises
Supporting fund for robot and	300,000.00	Other income	2021.6.25	Luo Cai Yu [2021] No. 77	Income related
intelligent equipment industries
Subsidies for integral reward for	43,000.00	Other income	2021.7.22	Tai Zheng Fa [2020] No. 15	Income related
technological innovation for 2020
Special fund for governmental	2,445,300.00	Other income	2021.8.5	Yu Cai Ke [2020] No. 30	Income related
subsidies for research and
development of enterprises for
2020
Award funding for Henan	300,000.00	Other income	2021.8.19	Yu Ke [2018] No. 203	Income related
Technology Research Center
for Non-road Use Diesel Engine
Project
Award to high-tech enterprises	100,000.00	Other income	2021.8.30	Luo Cai Tou [2021] No. 5	Income related

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Name of the						File number	Asset/income
subsidized project		Amount	Representation	Date	(Government approval)	related
Luoyang applied technology research	5,610,000.00	Other income	2021.8-	Luo Cai Tou [2021] No. 4	Income related
and development fund					2021.9
Subsidies for enterprises in	5,248,677.16	Non-operating	2021.8-	Guo Ji Cai Zi Chan Han [2018] No. 7	Income related
difficulties				income	2021.9
Special support plan for the	67,252.23	Other income	2021.9.30	Tai Ren She Fa [2020] No. 136	Income related
stabilization and expansion of
employment
Others	107,979.50	Other income/	2021.5-		Income related
				deferred income	2021.6
Subtotal	27,090,570.89
Subsidies for the project of modern	7,000,000.00	Deferred income	2021.7.3	Luo Gong Xin [2017] No. 197	Asset related
agricultural equipment smart
cockpit digital factory
Total	34,090,570.89

1. IMPACT OF GOVERNMENT GRANTS ON THE LISTED COMPANY
   The Company has confirmed the above matters in accordance with the relevant provisions under "Accounting Standards for Business Enterprises No.16 - Government Grants", details of which are as follows:

	Unit: RMB (Yuan)
Impact on the Company		Amounts
Credited to the item of other income,
affecting current profit or loss	15,103,301.73
Credited to the item of non-operating income,
affecting current profit or loss	5,248,677.16
Credited to the item of deferred income,
which will be transferred to profit or loss items
in accordance with the regulations after
verification on completion of the relevant projects		13,738,592.00
Total	34,090,570.89

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The specific accounting treatment of the abovementioned government grants shall be determined based on the results of the annual audit to be confirmed by the auditing authority.

By Order of the Board

FIRST TRACTOR COMPANY LIMITED

YU Lina

Company Secretary

Luoyang, the PRC

11 October 2021

As at the date of this announcement, the Board comprises Mr. Li Xiaoyu (Chairman) and Mr. Liu Jiguo as executive Directors; Mr. Li Hepeng, Mr. Xie Donggang and Mr. Zhou Honghai as non-executive Directors; and Ms. Yang Minli, Ms. Wang Yuru and Mr. Edmund Sit as independent non-executive Directors.

• For identification purposes only

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