Stock Code: 000553(200553)      Stock abbreviation: ADAMA A (B)   Announcement No. 2022-20




      Announcement on Assets Impairment of ADAMA Ltd. During
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The Company and all members of its Board of Directors confirm that all the
information disclosed herein is true, accurate, and complete with no false or
misleading statement or material omission.

In accordance with the Accounting Standards for Business Enterprises, ADAMA Ltd.
(hereinafter referred to as the “Company”), recorded a total of RMB 126 million
(approximately $19.8 million) for the first quarter of 2022 in provisions for asset and
credit impairments. These provisions are mainly related to a credit loss provision for
trade receivables in Ukraine and impairments made during the ordinary course of the
Company’s business, as provided herein.
Overview and Financial Impact of Provision for the Assets Impairment
During the first quarter, the Company recorded provisions for asset and credit
impairments based on principles of prudent accounting and according to the
"Accounting Standards for Business Enterprises" and the Company’s own applicable
accounting policies.
These provisions, charged to the total profits of the Company during the quarter, were
amounting to RMB 126 million (approximately $19.8 million).
Further details of the impairments are as follows:
                                                                           Unit: ‘000 RMB
Item                                                                                Amount
Credit losses                                                                       701,001
Inventories                                                                          76,,81
Fixed assets                                                                            115
Total Asset impairments                                                             125,931


Basis and Explanation for Credit Impairment Losses
The Company recognizes an impairment provision, which reflects its assessment
regarding the credit risk of accounts receivables on a lifetime expected credit loss basis.
The examination for expected credit losses is performed using a model including aging
analysis and historical loss experience, and is adjusted taking into account observable
factors reflecting current and expected future economic conditions.
Due to the current events in Ukraine, in order to cover the estimated risk, the Company
has made an impairment for the expected credit loss related to the accounts receivables


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in Ukraine amounted to RMB 107 million (approximately $16.9 million).


Basis and Explanation for Impairment of Inventories
Inventories are measured at the lower of cost and net realizable value. If the net
realizable value is below the cost of inventories, a provision for decline in value of
inventories is made. Net realizable value is the estimated selling price in the ordinary
course of business less the estimated costs of completion, the estimated costs
necessary to make the sale and relevant taxes.
An amount of RMB 18.4 million (approximately $2.9 million) in inventory impairment was
provided in the ordinary course of the Company’s business during the first quarter.


Basis and Explanation for Impairment of Fixed Assets
The Company assesses at each balance sheet date whether there are any indications
that the fixed assets may be impaired. If there is any indication that such assets may be
impaired, recoverable amounts are estimated for such assets (recoverable amount is
the higher between the assets’ fair value less costs to sell and the present value of the
future cash flow estimated to be derived from the asset). If the recoverable amount is
below the assets’ net cost recorded in the balance sheet, a provision for impairment is
made.
During the quarter, the Company has accrued an impairment of RMB 0.6 million
(approximately $0.1 million) for fixed assets, which was immaterial to the overall
financial statements.


Board of Directors’ Explanation on the Reasonableness of Asset Impairments
The aforementioned provisions resulted from non-cash charges due mainly to the credit
loss provision related to trade receivables in Ukraine, and impairments accrued during
the ordinary course of the Company’s business.
Based on the current status of these assets, these non-cash impairments serve to
correctly present the balance sheet of the Company, truly and fairly reflects the
company's financial situation, asset value and operating results, while meeting
requirements of accounting standards and related policies.



                                                                 By order of the Board of
                                                                           ADAMA LTD.
                                                                          April 28, 2022




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