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") received government grants of RMB6,864,850.00 in aggregate from 7 May 2020 to the date of this announcement. Details of which are as follows:

			Units: RMB
Name of the subsidized project	Amount	Representation	File Number (Government Approval)
Special Rewards and Subsidies for	900,000.00	Other income	Luo Cai Yu [2020] No. 41 - Notice on
Structural Adjustments of Industrial			Allocation of Special Rewards and
Enterprises used to stabilize			Subsidies for Structural Adjustments
employment			of Industrial Enterprises Used to
			stabilize employment
The first batch of enterprise subsidies	120,000.00	Other income	Luo Cai Yu [2020] No. 75 - Notice of
of special funds at provincial level			Luoyang Municipal Finance Bureau
on foreign economic and trade			on Allocation of the First Batch of
development in 2020			Special Funds at Provincial Level
			on Foreign Economic and Trade
			Development in 2020
Research and system development of	103,000.00	Deferred income	Mission Statement of Research and
reliability testing technology for			System Development of Reliability
tractor Key Parts			Testing Technology for Tractor Key
			Parts
Cloud-based collaborative intelligent	770,000.00	Deferred income	Mission Statement of Cloud-Based
harvesting robot system development			Collaborative Intelligent Harvesting
			Robot System Development

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Name of the subsidized project	Amount	Representation	File Number (Government Approval)
Special Fund for Advanced	2,910,000.00	Deferred income	Luo Cai Yu [2020] No.49 - Notice of
Manufacturing Industry Development			Luoyang Municipal Finance Bureau
in 2020 - Foundry medium and small			on Special Fund for Advanced
parts molding line transformation			Manufacturing Industry Development
project			in 2020
Research on key technologies of clean	31,200.00	Deferred income	Mission Statement of Research on
and combustion of agricultural diesel			Key Technologies of Clean and
engine			Combustion of Agricultural Diesel
			Engine
Research on control and OBD key	70,700.00	Deferred income	Mission Statement of Research on
technology of agricultural machinery			Control and OBD Key Technology of
exhaust after treatment system			Agricultural Machinery Exhaust after
			Treatment System
Grant after technology transfer of	1,000,000.00	Deferred income	Luo Cai Yu [2020] No.269 - Notice on
enterprises			the Budget for the Construction of
			the Fifth Batch of Provincial Science
			and Technology Innovation System in
			2020 by Luoyang Finance Bureau
Combating the Pandemic to help the	3,850.00	Other income	Tai Zheng Fa [2020] No.4 - Notice on
enterprises over the difficulties			the Printing and Issuance of 18 Policy
			Opinions on the Combating the
			Pandemic to help the enterprises over
			the difficulties (Chun Feng Hui Qi) in
			Jiangyan District of Taizhou
Patent Award Project by the	12,000.00	Other income	Luo Cai Gong [2017] No.34- Notice
Administration for Market Regulation			on Publishing and Issuance of the
of Luoyang			Measures for the Management of
			Special Funds of Intellectual Property
			Rights in Luoyang City
Application Research of Intelligent	72,100.00	Deferred income	Mission Statement of Application
Design Platform in the Development			Research of Intelligent Design
of High Power Tractor			Platform in the Development of High
			Power Tractor
Development of key core components	172,000.00	Deferred income	Mission Statement of Development
for new energy-saving and			of Key Core Components for New
environmentally friendly agricultural			Energy-Saving and Environmentally
diesel engines			Friendly Agricultural Diesel Engines
Tractor whole machine detection	700,000.00	Deferred income	Mission Statement of Tractor Whole
technology research and system			Machine Detection Technology
development			Research and System Development

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

Unit: RMB (Yuan)
Impact on the Company	Amounts
Credited to other income items, affecting current profit or loss
items	1,035,850.00
Credited to non-operating income items, affecting current profit or
loss items	0.00
Credited to deferred income items, and will transfer the relevant
projects to profit or loss items in accordance with the
regulations after acceptance	5,829,000.00
Total	6,864,850.00

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

By order of the Board of Directors

FIRST TRACTOR COMPANY LIMITED

Yu Lina

Company Secretary

Luoyang, the PRC

20 October 2020

As at the date of this announcement, the Board comprises Mr. Li Xiaoyu (Chairman), Mr. Cai Jibo (vice 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 purpose only

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