Financial News Agency, November 9 (Reporter Zhang Chenjing)Sales of agricultural machinery declined this year, and the performance of Yituo Co., Ltd. (601038.SH) increased by more than 30%. However, investors still have concerns about the 2024 agricultural machinery market. Investors actively asked questions at the performance briefing held by the company today, and investors also posed 10 questions to management on market competition, capital utilization, and division of share capital.

Previously, sales of large and medium-sized tractor products in the industry declined this year due to market demand moving forward to four countries and rising operating and maintenance costs. According to data from the China Agricultural Machinery Industry Association, in the first half of 2023, the sales volume of large and medium-sized tractors by leading enterprises in the industry was 189,300 units, down 10.98% from the previous year.

This year, Yituo Co., Ltd. chose to raise product sales prices and at the same time increase overseas sales revenue to ensure performance growth after switching to the fourth country. Therefore, issues such as the 2024 agricultural machinery market situation and how to guarantee the growth rate of performance were frequently raised at today's performance conference.

Wei Tao, general manager of Yituo Co., Ltd., told the Finance Association reporter and investors that in the same period last year, sales of Dazhong Tuo products were at a high level due to the impact of the four-year transition, and domestic sales of Dazhong Tuo products declined markedly this year. As the national four models have been accepted by the market and recognized by users one after another, and superimposed countries have long attached great importance to food production safety and ensure stable and increased agricultural production, it is expected that the delay in sales volume in the industry will rise steadily.

Although domestic and medium sales volume declined this year, sales in overseas markets increased significantly year over year. Director Yu Lina said that the company's overseas factories are mainly built together with dealers. The company strengthened market research in key overseas regions, improved product adaptability, and channel construction in key overseas regions, and seizing favorable opportunities to actively launch products was the main reason for the increase in the company's overseas sales volume. In January-September of this year, the company's overseas sales increased by 48.82% over the same period last year.

It is worth mentioning that in recent years, leading construction equipment companies such as Xugong Machinery (000425.SZ) and Liugong (000528.SZ) have announced their entry into the tractor industry one after another, and competition in the industry has further intensified. Wei Tao believes that the entry of the construction machinery industry into the agricultural machinery industry shows that the agricultural machinery industry has good prospects for development. The company will continue to consolidate its first position in the tractor industry, give full play to the market, product, technology and other advantages it has accumulated in the agricultural machinery industry, actively increase market share, and expand product influence.

According to the company's financial report, net profit attributable to owners of the parent company for the first three quarters was 1,085 billion yuan, up 36.36% year on year; operating income was 10.246 billion yuan, up 0.24% year on year; and basic earnings per share were 0.9658 yuan, up 36.37% year on year.