Abstract: Adhering to cost leadership strategy and implementing new development philosophy to construct a new development paradigm, First Tractor Company Limited has adapted to requirements of high-quality development by leveraging whole value chain cost management．Through identifying, analyzing and expanding value chains, the company continuously extends scope and connotation of cost management．From product chain cost control to industry chain cost analysis, focusing on value chain from research and development, procurement, production to sales, from enterprises, suppliers, distributors to users, entire value chain cost management was deeply promoted, and cost control for all employees, processes, and elements was carried out．These measures could promote enterprises to overcome difficulties, achieve excellent performance in reform and revitalization, provide important support for high-quality development of listed companies, and embark on a high-quality development path that combining market and on-site efforts, emphasizing both open source and cost saving, and achieving a win-win situation of efficiency and effectiveness．