First Tractor Co., Ltd. (00038) Fa Yingxi expects net profit to be 920 million to 1.02 billion yuan in 2023, a year-on-year increase of 35.09% to 49.77%

According to Zhitong Finance App, First Tractor Co., Ltd. (00038) announced that the company expects to achieve net profit of RMB 920 million to RMB 1,020 million yuan in 2023. Compared with the same period last year, it will increase RMB 239 million to RMB 339 million, an increase of 35.09% to 49.77% over the previous year.

At the same time, the company expects to achieve net profit of RMB 836 million to RMB 936 million after deducting non-recurring profit and loss attributable to the owners of the parent company in 2023. Compared with the same period last year, it will increase RMB 65 million to RMB 165 million, an increase of 8.37% to 21.33% over the previous year.

According to the announcement, the main reason for the advance increase in performance in the current period is the impact on the main business: due to the “National 4” switch, domestic sales of large and medium products declined markedly in 2023. The company actively responds to challenges, consolidates its advantages in the domestic market by strengthening marketing capabilities and upgrading products and services. At the same time, it is making every effort to expand overseas markets and make up for the adverse effects of the downturn in the domestic market. In 2023, the company sold 72,300 units of large and medium towing products, down 18% year on year. Among them, sales of export products increased by 43% year on year, and export sales of diesel engine products were 82,500 units, up 7.69% year on year.

Impact of non-operating profit and loss: During the reporting period, non-recurring profit and loss items such as government subsidies and changes in the fair value of financial assets held by the company included in current profit and loss were approximately RMB 84 million, an increase of RMB 174 million over the same period last year.