First Tractor : ANNOUNCEMENT IN RELATION TO PROVISION OF EXTERNAL GUARANTEES BY THE COMPANY (in PDF)

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(a joint stock company incorporated in The People's Republic of China with limited liability)

First Tractor Company Limited* (the "Company") and all members of the board (the "Board") of directors (the "Directors") of the Company hereby warrant that there are no false information, misleading statements or material omissions in this announcement, and accept several and joint responsibilities for the truthfulness, accuracy and completeness of its contents.

• Name of the guaranteed parties:

• Dealers and users which purchase agricultural machinery products from the Company under finance lease, buyer's credit and "Dong Fanghong" commercial loan business (the "Dealers and Users"); and

• YTO (Jiangyan) Power Machinery Company Limited* ("YTO Jiangyan Power Machinery"), YTO (France) Agricultural Equipment Company Limited* (" YTO France Agricultural Equipment ") and Luoyang Changxing Agricultural Machinery Company Limited* ("Changxing Agricultural Machinery") (the above subsidiaries of the Company are collectively referred to as the "Subsidiaries").

  (The above Dealers and Users and Subsidiaries are collectively referred to as the "Guaranteed Parties", and the guarantees proposed to be provided by the Company for the Guaranteed Parties are referred to as the "Proposed Guarantees".)

• Total amount of the Proposed Guarantees and the amount of guarantees actually provided:

  The total amount of the Proposed Guarantees to be provided by the Company will not be more than RMB1,122.50 million. As at the end of February 2017, the amount of guarantees actually provided by the Company for the Guaranteed Parties was RMB236.0845 million. The total amount of the Proposed Guarantees includes the aforesaid amount of guarantees actually provided.

• Provision of counter-guarantees: all external guarantees provided by the Company shall be counter-guaranteed by the Guaranteed Parties.

1. SUMMARY OF THE GUARANTEES

2. Provision of guarantees by the Company for the Dealers and Users: in order to promote the sale of agricultural machinery products of the Company, relieve the pressure in relation to collection of accounts receivable and diversify the financing methods for the Dealers and Users to purchase products, the Company intends to develop the finance lease, buyer's credit and "Dong Fanghong" commercial loan business. The Company proposes to provide guarantees for the Dealers and Users for financing purpose and the amount of guarantees actually provided shall not exceed RMB480 million at any time during the validity period of the guarantees, among which the amount of guarantees actually provided to the dealers under the "Dong Fanghong" commercial loan business shall not exceed RMB280 million. The proposed guarantees will be available for use on a revolving basis.

3. Provision of guarantees by the Company for the Subsidiaries: in light of the actual capital needs for the production and operations of the Subsidiaries, the Company proposes to provide guarantees for the Subsidiaries for the financing provided by financial institutions and the amount of guarantees actually provided by the Company shall not exceed RMB642.50 million at any time during the validity period of the guarantees. The proposed guarantees amount will be available for use on a revolving basis. Details of the guarantees are set out below:

   Currency: RMB (unless otherwise specified)

   Guaranteed Parties Guarantee Amount

   YTO Jiangyan Power Machinery 30 million YTO France Agricultural Equipment Euro 15 million (approximately RMB112.5 million)

   Changxing Agricultural Machinery 500 million

4. The guarantees to be provided by the Company for the Dealers and Users and the subsidiaries of the Company, i.e. YTO France Agricultural Equipment and Changxing Agricultural Machinery, shall be subject to the shareholders' approval at the 2016 annual general meeting of the Company (the "AGM"). The validity period of the above guarantees shall commence from the date of approval at the AGM and end on the date of convening the 2017 annual general meeting of the Company. The guarantee to be provided by the Company for its subsidiary YTO Jiangyan Power Machinery is not required to obtain shareholders' approval, therefore, the validity period of the guarantee to be provided for YTO Jiangyan Power Machinery shall commence from the date of convening the AGM and end on the date of convening the 2017 annual general meeting of the Company.

5. BASIC INFORMATION OF THE GUARANTEED PARTIES

6. The Dealers and Users are non-connected persons of the Company.

7. For basic information of the Subsidiaries, please refer to Table 1 below. For major audited financial data of the Subsidiaries for the last year, please refer to Table 2 below.

   Table 1: Guaranteed Parties Registered Capital Voting Rights held by the Company Legal Representative Principal Business

   YTO Jiangyan Power Machinery

   RMB200

   million

   78%

   (Note 1)

   Yang Yongan Manufacturing and sale of multi-

   cylinder diesel engines and relevant accessories

   YTO France Agricultural Equipment

   Euro 34.60

   million

   100% Su Wensheng Research, manufacturing and sale

   of agricultural machineries and relevant accessories

   Changxing Agricultural Machinery

   RMB3

   million

   100%

   (Note 2)

   Zhu Weijiang Sale of hi-powered and mid-powered

   wheeled tractors and relevant products

   Notes:

8. The Company directly holds 38% equity interest in YTO Jiangyan Power Machinery and indirectly holds 40% equity interest in YTO Jiangyan Power Machinery through its subsidiary, YTO (Luoyang) Diesel Engine Company Limited; and

9. The Company directly holds 70% equity interest in Changxing Agricultural Machinery, and indirectly holds 30% equity interest in Changxing Agricultural Machinery through its wholly-owned subsidiary, Luoyang Changhong Industrial Trading Company Limited*.