First Tractor Company Limited (0038.HK) Bundle
As 0038.HK, First Tractor Company Limited traces its roots back to 1955 and today stands as a prominent manufacturer of agricultural machinery-most notably tractors, harvesters and related equipment-combining a broad distribution network with a clear focus on research and development to drive innovation; driven by a mission to boost farmer productivity and a vision to become a global leader, the company embeds sustainability and eco-friendly solutions into product design while scaling its technological capabilities and product portfolio to meet diverse agricultural needs worldwide.
First Tractor Company Limited (0038.HK) - Intro
First Tractor Company Limited (0038.HK), established in 1955 and headquartered in Luoyang, Henan, is a veteran Chinese manufacturer of agricultural machinery focused on tractors, harvesters and related implements. The company combines legacy manufacturing capacity with ongoing R&D investments to serve farmers across China and export markets, positioning itself as a core supplier in mechanized agriculture and rural modernization.- Founded: 1955
- Headquarters: Luoyang, Henan, China
- Stock code: 0038.HK (Hong Kong)
- Business scope: Tractors, combine harvesters, power systems, agricultural implements, parts & after-sales
- Target markets: Domestic China (rural mechanization) and export regions across Asia, Africa, Latin America and parts of Europe
- Technological focus: Engine efficiency, telematics/precision guidance, reduced emissions and modular implement platforms
- Sustainability focus: Fuel-efficiency improvements, emission-compliant engines, parts remanufacturing and service-life extension
| Indicator | Data / Notes |
|---|---|
| Corporate founding year | 1955 |
| Listing / Stock code | 0038.HK (Hong Kong) |
| Headquarters | Luoyang, Henan, China |
| Primary products | Tractors (utility, row-crop), combine harvesters, engines, implements |
| Geographic reach | Domestic China + exports to >~100 countries/regions (distribution & dealer network) |
| Employees (approx.) | Several thousands (manufacturing, R&D, sales & service) - enterprise-scale workforce |
| R&D emphasis | Powertrain efficiency, telematics, precision agriculture and emission reductions |
- Deliver durable, affordable agricultural machinery tailored to farmers' productivity needs.
- Advance mechanization to boost rural productivity and support national food security.
- Drive product lifecycle service and parts availability to minimize downtime for users.
- Be a leading global supplier of sustainable agricultural machinery solutions, integrating electrified and digital technologies into core product lines.
- Expand value-added services (telemetry, precision ag, finance & after-sales) to increase lifetime customer value.
- Reliability - product durability and dependable after-sales support.
- Innovation - continuous improvement in powertrains, electronics and implements.
- Accessibility - broad dealer network and affordable product tiers for diverse farm sizes.
- Responsibility - compliance with emissions standards and progress toward lower-carbon equipment.
- New-model launch cadence (tractors & combines) and their adoption rates in core provinces.
- Progress on engine/aftertreatment compliance with national emission phases and any electrified models announced.
- Export order flows and dealer expansion in target international markets.
- R&D spend and partnerships (joint ventures, tech suppliers) that translate into differentiated features.
First Tractor Company Limited (0038.HK) - Overview
First Tractor Company Limited (0038.HK) positions itself as a leading supplier of agricultural machinery with a mission to provide high-quality equipment that enhances farmer productivity and efficiency worldwide. The company's strategic focus combines sustained R&D investment, customer-centric service, and an increasing emphasis on sustainability and low-emission farming solutions. Core elements of the mission are reflected across product development, after-sales support, and strategic alliances that aim to broaden access to mechanization in both domestic and international markets.- Priority on product quality and reliability to reduce total cost of ownership for farmers.
- Continuous R&D investment to deliver innovative, fuel-efficient, and electrified drivetrain options.
- Robust after-sales network and tailored service programs to maximize uptime and farmer ROI.
- Commitment to sustainability through development of lower-emission models and eco-friendly manufacturing practices.
- Focus on building long-term relationships with cooperatives, distributors, and large-scale farming customers.
| Metric | 2022 | 2023 (est./reported) |
|---|---|---|
| Revenue (RMB) | ~9.8 billion | ~10.6 billion |
| Net Profit (RMB) | ~420 million | ~480 million |
| R&D Expenditure (RMB) | ~240 million (≈2.4% of revenue) | ~300 million (≈2.8% of revenue) |
| Tractor Units Sold (domestic + export) | ~55,000 units | ~62,000 units |
| Estimated China Tractor Market Share | ~12-14% | ~13-15% |
- R&D pipeline: modular engine platforms, Tier IV-equivalent emission reductions, and electrified/hybrid tractor prototypes targeted for scaling over the next 3-5 years.
- After-sales infrastructure: expanded authorized service centers and parts depots to reduce average downtime and improve parts availability in key provinces and export markets.
- Product portfolio diversification: small- to large-horsepower ranges, specialty implements, and integrated precision-agriculture solutions to serve smallholders through to commercial farms.
- Export and partnership strategy: targeted expansion in Southeast Asia, Africa, and CIS markets leveraging local distributors and financing partners.
- Long-term vision: to be a global enabler of sustainable mechanization, increasing per-hectare productivity while lowering environmental footprint.
- Sustainability targets: improved fuel efficiency across new model launches, waste-reduction targets in manufacturing, and gradual electrification of product lines.
- Customer impact metrics: focus on increasing farmer yield-per-machine and reducing lifecycle fuel costs-core KPIs embedded in product development and sales incentives.
First Tractor Company Limited (0038.HK) - Mission Statement
First Tractor Company Limited (0038.HK) commits to empowering modern agriculture by designing, manufacturing and delivering reliable, efficient and sustainable agricultural machinery that increases farm productivity while reducing environmental impact. The company's mission aligns with its vision to become a global leader in agricultural machinery through continuous innovation, market expansion and sustainable practices.- Advance technology integration - precision farming, telematics, and automated systems to raise per-hectare output and lower input costs.
- Expand global footprint - target growth in Asia, Africa and Latin America where mechanization rates are rising.
- Promote sustainability - develop low-emission, fuel-efficient machines and support circular practices in manufacturing and after-sales.
- Customer-centric solutions - tailor product lines and service offerings to smallholders, commercial farms and contractors.
- Invest in human capital - continuous training, safety and R&D culture to maintain competitive advantage.
Vision Statement
First Tractor Company Limited envisions becoming a global leader in the agricultural machinery industry by delivering innovative and sustainable solutions that meet the evolving needs of farmers. This vision drives strategic initiatives to develop advanced machinery with cutting-edge technology, expand into new markets with growing agricultural sectors, and lead industry eco-friendly practices that reduce environmental impact and promote sustainable farming. The company aims to foster a culture of continuous improvement, encouraging innovation and adaptability, and to be recognized as a trusted partner for farmers worldwide.| Metric | Value (most recent disclosed / approximate) |
|---|---|
| Annual Revenue (FY) | ≈ RMB 8-12 billion (FY2022-FY2023, company disclosure ranges) |
| Net Profit (FY) | ≈ RMB 300-900 million (FY2022-FY2023, variable by year) |
| Tractors & Implements Sold (annual) | ≈ 40,000-70,000 units (includes domestic + exports) |
| R&D Investment | ≈ 3-5% of revenue (targeted increase year-on-year) |
| Export Share | ≈ 15-25% of sales (growing focus on overseas markets) |
| Targets (3-5 year) | Increase market share in Southeast Asia & Africa; boost sales of smart/low-emission models by 30%+ |
- Strategic priorities: product modernization (precision + automation), dealer & service network expansion, after-sales digital services, and partnerships for sustainable fuels and electrification.
- Operational KPIs tracked: unit sales, revenue growth, gross margin, R&D productivity (new-model launches/year), dealer coverage and customer satisfaction scores.
First Tractor Company Limited (0038.HK) - Vision Statement
First Tractor Company Limited (0038.HK) envisions becoming the benchmark global provider of intelligent, sustainable agricultural machinery and farming solutions that empower farmers to achieve higher productivity, profitability, and environmental stewardship. The vision emphasizes technology-led transformation, customer intimacy, and scalable global partnerships to address food security and rural modernization. Core Values- Integrity - ethical governance, transparent reporting, and responsible stakeholder engagement that build long-term trust.
- Innovation - sustained investment in R&D, digitalization, and smart machinery to meet evolving agronomic and mechanization needs.
- Customer-centricity - designing products and services around farmers' operational realities, after-sales support, and localized solutions.
- Sustainability - reducing emissions, improving fuel efficiency, and developing implements that support soil health and resource-efficient farming.
- Teamwork - cross-functional collaboration across R&D, manufacturing, sales, and service networks to accelerate problem solving and execution.
- Excellence - rigorous quality control, continuous improvement, and service reliability to ensure durable, high-performance equipment.
- Scale intelligent product lines (automation, telematics, precision guidance) to increase attach rates for digital services.
- Expand after-sales and financing ecosystems to improve lifetime customer value and facilitate mechanization adoption.
- Pursue export growth through targeted markets in Asia, Africa, and Latin America while maintaining dominant positions in core domestic segments.
- Integrate sustainability KPIs across product development, supply chain, and manufacturing to lower carbon intensity and lifecycle impacts.
| Metric | Value / Recent Figure |
|---|---|
| Annual tractor production (approx.) | ~100,000+ units |
| Domestic medium‑power market share (approx.) | ~10% |
| R&D investment (annual) | RMB 200-400 million |
| After‑sales service centers (network) | Thousands across China; expanding overseas |
| Installed telematics-connected units | Hundreds of thousands of machine‑hours monitored annually |
| Typical warranty and service response KPI | 24-72 hour response in core regions |
- Product roadmaps prioritize fuel-efficiency improvements (engine optimization, hybrid options) and emissions reduction to meet tightening regulations.
- Digital services: telematics subscriptions, predictive maintenance, and agronomic advisory bundled to increase recurring revenue and farm-level yields.
- Localized manufacturing and dealer training programs to shorten lead times and improve uptime for farmers.
- Partnerships with financial institutions to expand equipment financing penetration among small and medium farms.
- Investors: disciplined capital allocation with targeted R&D and capacity investments intended to improve margin profile and ROE over a multi‑year horizon.
- Customers (farmers): product reliability, total cost of ownership (TCO) transparency, and tailored after‑sales packages to lower operating risk.
- Employees: training, safety, and cross-disciplinary teams that foster innovation and execution excellence.
- Society and environment: initiatives to reduce lifecycle emissions, promote sustainable tillage equipment, and support rural mechanization programs.
First Tractor Company Limited (0038.HK) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.