Stock Code: 000553(200553)    Stock Abbreviation: ADAMA A(B) Announcement No.2019-18




                                   ADAMA Ltd.
  Announcement on the Change of Accounting Policy



 The Company and all members of its board of directors confirm that all information
 disclosed herein is true, accurate and complete with no false or misleading
 statement or material omission.


     The 12th meeting of the 8th session of Board of Directors of ADAMA Ltd.
(hereinafter referred to as “Company”) approved the proposal on the change in the
accounting policy (hereinafter referred to as the “Change”). The proposal is not subject
to the approval of the shareholders. The details of the Change are as follows.

1. Overview of the Proposed Change

      In preparation of the 2018 Annual Report, the group began to adopt the Notice on
Revising the Format of 2018 Financial Statements for General Enterprise promulgated
by Ministry of Finance on June 15th, 2018 (Caikuai [2018] No.15, hereinafter “Caikuai
No.15”). Caikuai No.15 revised the accounts in balance sheet and income statements,
including:
        Newly added “Notes and Accounts Receivable”, “Notes and Accounts Payable”
        and “Research and Development Expenses”;
        Revised the disclosure of “Other Receivables”, “Fixed Assets”, “Construction
        in Progress”, “Other Payables”, “Long-term Payables” and “General and
        Administrative Expense”;
        Deleted “Notes receivable”, “Accounts Receivable”, “Dividends Receivable”,
        “Interests Receivable”, “Disposal of Fixed Assets”, “Projects Material”, “Notes
        Payable”, “Accounts Payable”, “Interests Payable”, “Dividends Payable” and
        “Special Accounts Payable”.
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Caikuai No.15 also added the disclosure of “Including: Interest Expense” and “Interest
Income” as sub-accounts of “Financial Expense” and adjusted the sequence of some
accounts in Income Statement.
     The above modifications were retrospectively adjusted for comparative numbers.
The Change has no significant impact on the Company’s financial statements.

2. Explanations of the Board of Directors on the Reasonableness of the Change

     The Board of Directors confirms that the Change is made based on the
requirements of relevant regulations. The decision-making process is in line with the
laws, regulations, and the Articles of Association of the Company. The Change will not
harm the interests of the Company and its shareholders.

3. Opinion of the Independent Directors

     The Change is in accordance with the Accounting Standards for Enterprises and
relevant regulations. The Change will not harm the interests of the Company and its
shareholders (especially the minority shareholders). The decision-making process is in line
with the laws, regulations and the Articles of Association of the Company. The independent
directors agree with the Change.

4. Opinion of the Board of Supervisors

     The Board of Supervisors confirms that the Change is based on the requirements of
the relevant regulations. The Change is in line with the relevant regulations of the Ministry
of Finance. No interests of the Company and its shareholders will be harmed by the Change.
The Board of Supervisors agrees with the Change.




It is hereby announced.




                                                       Board of Directors of ADAMA Ltd.

                                                                            March 21, 2019




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