Semiannual Report — FY2026 H1

During the current interim accounting period, the company pursued earnings-structure reform as the first year of the second-phase medium-term business plan under Offensive120. In the agricultural machinery business, lower domestic sales were offset by higher overseas sales, but revenue declined year on year, while revenue in the bearing business increased due to higher orders. In terms of profit, higher personnel expenses and depreciation were more than offset by the effect of price revisions and cost reductions from in-house production, resulting in an improvement. In addition, the partial transfer of the equity interest in 山東五征高北農牧機械有限公司 resulted in the company no longer qualifying as an equity-method affiliate.