Abstract of 2019 Semi-Annual Report
Stock Code: 000553(200553) Stock Abbreviations: ADAMA A(B) Announcement No.2019-47
Abstract of the 2019 Semi-Annual Report of ADAMA Ltd.
I. Important Reminder
This Semi-Annual Report Abstract is from the full text of the Semi-Annual Report. Investors are advised to read
the full text of the Semi-Annual Report published on the media designated by China Securities Regulatory
Commission for having a round understand of the Company’s performance, financial status and future
development plan.
All the directors attended the Board of Directors meeting to review the Semi-Annual Report. No disagreement
was raised by the directors, supervisors, and senior managements.
Non-standard auditor report
□ Applicable √ Not applicable
Plan approved by the Board of Directors for dividend distribution of ordinary shares or increasing the capital by
the transfer of capital reserves.
□Applicable √Not applicable
For the Reporting Period, the Company does not plan to distribute cash dividends or bonus shares or convert
capital reserve into share capital.
Plan approved by the Board of Directors for dividend distribution of preferred shares
□ Applicable √ Not applicable
II. Basic information about the Company
1. Company profile
Stock name ADAMA A(B) Stock code 000553(200553)
Stock exchange Shenzhen Stock Exchange
Contact Person Board Secretary Securities Affairs Representative Investor Relations Manager
Name Li Zhongxi Liang Jiqin Wang Zhujun
Address 6/F, No.7 Office Building, No.10 Courtyard, Chaoyang Park South Road, Chaoyang District, Beijing
Tel. 010-56718110 010-56718110 010-56718110
E-mail irchina@adama.com irchina@adama.com irchina@adama.com
2. Major accounting data and financial index
Whether the Company performed any retroactive adjustments to or restatement of its accounting data
√Yes □No
Reason for retrospective adjustment or restatement: Business combination under common control.
Same period of last year +/- (%)
Reporting Period
Before adjustment After adjustment After adjustment
1
Abstract of 2019 Semi-Annual Report
Operating revenues (RMB’000) 13,616,032 13,026,258 13,639,073 -0.17%
Net profit attributable to shareholders of
588,638 2,362,781 2,389,167 -75.36%
the Company (RMB’000)
Net profit attributable to shareholders of
the Company excluding non-recurring 430,270 790,296 790,296 -45.56%
profit and loss (RMB’000)
Net cash flow from operating activities
(304,950) 779,518 839,803 -136.31%
(RMB’000)
Basic EPS (RMB/share) 0.2406 0.9658 0.9765 -75.36%
Diluted EPS (RMB/share) N/A N/A N/A N/A
Weighted average return on net assets 2.59% 11.65% 11.53% -8.94%
End of Reporting End of last year +/- (%)
Period Before adjustment After adjustment After adjustment
Total assets (RMB’000) 45,810,089 41,577,798 44,135,063 3.80%
Net assets attributable to shareholders
22,479,404 21,543,425 22,744,862 -1.17%
of the Company (RMB’000)
3. Shares and shareholders
51,819 (the number of ordinary A share
Total number of common Total number of preferred shareholders that
shareholders is 35,774;
shareholders at the end of the had resumed their voting right at the end of 0
Reporting Period the number of B share shareholders is the Reporting Period (if any)
16,045)
Shareholding of common shareholders holding more than 5% shares or the top 10 shareholders
Holding Number of Pledged or frozen shares
Nature of Number of
Name of shareholder percentage restricted
shareholder shares held Status Number
(%) shares held
China National Agrochemical State-owned
74.02% 1,810,883,039 1,810,883,039 - -
Co., Ltd. legal person
Jingzhou Sanonda Holding State-owned
4.89% 119,687,202 - - -
Co., Ltd. legal person
China Cinda Asset State-owned
1.37% 33,557,046 - - -
Management Co., Ltd. legal person
China Structural Reform State-owned
1.37% 33,557,046 - - -
Fund Co., Ltd. legal person
Portfolio No.503 of National
Others 0.53% 12,999,893 - - -
Social Security Fund
CCB Principal-ICBC-Avic
Trust, Trust Plan of Pooled
Funds of CCB Principal
Others 0.53% 12,885,906 - - -
Private Placement
Investment, Tianqi (2016)
No. 293 of Avic Trust
Industrial Bank Co., Ltd,
Mixed Securities Investment
Others 0.33% 8,053,736 - - -
Fund, Aegon-Industrial Trend
Investment (LOF)
Domestic
Jiang Yun 0.27% 6,500,000 - - -
individual
Caitong Fund Fuchun
Chuangyi Private Placement Others 0.19% 4,697,986 - - -
No.3 Asset Management Plan
GUOTAI JUNAN Foreign 0.19% 4,697,389 0 - -
2
Abstract of 2019 Semi-Annual Report
SECURITIES(HONGKONG) legal person
LIMITED
Jingzhou Sanonda Holdings Co., Ltd. and CNAC are related parties, and are
acting-in-concert parties as prescribed in the Administrative Methods for Acquisition of
Explanation on associated relationship
Listed Companies. Sanonda Holding is a controlled subsidiary of CNAC. It is unknown
or/and persons
whether the other shareholders are related parties or acting-in-concert parties as
prescribed in the Administrative Methods for Acquisition of Listed Companies.
Particular about shareholder participate in
the securities lending and borrowing -
business (if any)
4. Change of the Controlling Shareholder or the Actual Controller
Change of the controlling shareholder in the Reporting Period
□ Applicable √ Not applicable
There was no change of the controlling shareholder of the Company in the Reporting Period.
Change of the actual controller in the Reporting Period
□ Applicable √ Not applicable
There was no change of the actual controller of the Company in the Reporting Period.
5. Corporate Bonds
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and
not yet due or due but failed to pay as of the date of the approval of this Semi-Annual Report by the Board of
Directors.
No.
III. Performance Discussion and Analysis
1. Business Operation summary in the reporting period
Whether the company needs to comply with the disclosure requirements of certain industry
No
Significant precipitation in North America in the first quarter followed by unprecedented flooding in the second
quarter, alongside extreme dry weather in Europe, India and parts of Asia-Pacific, delayed and reduced application
of crop protection products in these regions. Latin America benefited from relatively strong demand in the
southern hemisphere off-season. India’s monsoon season started late in the second quarter, delaying the sowing of
several summer-planted crops.
Crop prices have generally remained subdued in the first half of 2019, with the exception of corn, which continues
to challenge farmer income in most regions, resulting in continued sluggish demand for crop protection products.
The sustained supply-constrained environment, mostly owing to increased environmental focus in China, has seen
continued industry-wide shortages in certain raw materials and intermediates, and resulted in procurement costs
remaining elevated compared to the first half of last year. The Company continues to raise its prices in all regions
and contain its manufacturing and other operating costs to mitigate this impact.
For ADAMA, the extended cold and wet conditions in North America, alongside dry weather in Europe, India and
parts of Asia-Pacific, delayed and reduced application of crop protection products, while continued tight supply
conditions prevented the Company from taking advantage of demand for certain products.
Strong growth in Latin America, led by Brazil, as well as resilient performance in APAC, notably Australia,
alongside the contribution of joiners Bonide and Anpon, partially offset these weather- and supply-related delays.
In China, continued strong demand for the Company’s differentiated, formulated and branded products is
supporting the shift towards sales through its own channels and away from sales of unformulated, technical active
3
Abstract of 2019 Semi-Annual Report
ingredients to intermediaries.
The Company continues to drive growth with new launches of differentiated product throughout all regions. The
continued supportive pricing environment allowed for the raising of prices by an average of 3% across all regions,
passing on some of the impact of the constrained supply and higher procurement costs, while mitigating the
impact of generally softer currencies. In addition, the Company continues to contain its manufacturing and other
operating costs, while recording idleness costs at Jingzhou old site.
Looking toward the second half of the year, the Company expects robust growth, as the southern hemisphere
regions, which are performing strongly, move into their peak season, as the Monsoon season progresses in India,
and as supply constraints start alleviating.
Increasing collaboration activities
The Company continues to advance collaboration opportunities with other ChemChina group entities, as well as
other entities of the Sinochem group, to make the most of its positioning.
Jingzhou Old Site
Following resumption of operations at the Jingzhou old site in late March, the Company is advancing the gradual
ramp-up of production. The new state-of-the-art wastewater treatment facility is operational, and the upgraded
biological-decomposition systems are being acclimated to the improved wastewater quality. As this progresses,
the Company is still experiencing constrained supply in key products manufactured at the site, especially
impacting the Americas, Asia-Pacific, China and India, Middle-East and Africa, constraining sales and gross
profit by approximately $100 million and $35 million, respectively, in the half-year, and recorded approximately
$20 million in related idleness costs during the period, bringing the impact from the disruption on EBITDA to
approximately $50 million and on Net Income to approximately $40 million. In recent weeks, the Ecological
Protection Supervision Team of the central government commenced on-site inspections at many ChemChina’s
group companies, including the Company’s sites in China, as part of its strengthening ongoing environmental and
safety focus. ADAMA is working in full cooperation, in the context of its 3-year relocation and upgrade process
which is due to conclude next year, to identify and rectify any safety or environmental matter.
Notwithstanding that the old site only produces a small number of products for the group, and the fact that
ADAMA has significant production and procurement capabilities elsewhere in China and worldwide ,the
suspension has had a negative impact on the Company’s performance as described above.
Regarding the explanations on the changes of the financial data, please refer to the “II Analysis of Main Business”
of Section IV of the Semi-Annual Report.
2. Matters regarding the financial report
(1) Explanation of the changes of the accounting policy, the accounting estimates and the accounting methods
compared to the last financial report
√ Applicable □Not applicable
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).
The Company began to adopt the revised Accounting Standards for Business Enterprises No. 21 - Leases (CaiKuai
[2018] No. 35) (“Revised ASBE21”) promulgated on December 7, 2018 by the Ministry of Finance, as of January
1, 2019.
For details, please refer to the Announcements on the Change of Accounting Policy published by the Company on
March 21, 2019 and April 30, 2019.
(2) Explain retrospective restatement due to correction of significant accounting errors in the reporting period
□ Applicable √ Not applicable
4
Abstract of 2019 Semi-Annual Report
No such cases in the reporting period.
(3) Explain change of the consolidation scope as compared with the financial reporting of last year
√Applicable □Not applicable
During the reporting period, the Company acquired Bonide Products Inc. and Jiangsu Anpon Electrochemical Co., Ltd. which
entailed the change of the consolidation scope. For details, please refer to item VI “Change of the Consolidation Scope” of the notes
of the financial report.
5
