ADAMA Ltd. Third Quarter Report 2022
Stock Code: 000553(200553) Stock Abbreviation: ADAMA A(B) Announcement No.2022-29
The Company and all members of its board of directors hereby confirm that all
information disclosed herein is true, accurate and complete with no false or misleading
statement or material omission.
ADAMA LTD.
THIRD QUARTER REPORT 2022
ADAMA Ltd. (hereinafter referred to as “the Company”) is a global leader in crop protection,
providing solutions to farmers across the world to combat weeds, insects and disease.
ADAMA has one of the widest and most diverse portfolios of active ingredients in the world,
state-of-the art R&D, manufacturing and formulation facilities, together with a culture that
empowers our people in markets around the world to listen to farmers and ideate from the
field. This uniquely positions ADAMA to offer a vast array of distinctive mixtures, formulations
and high-quality differentiated products, delivering solutions that meet local farmer and
customer needs in over 100 countries globally.
Please see important additional information and further details included in the Annex.
October 2022
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ADAMA Ltd. Third Quarter Report 2022
Important Notice
The Company’s Board of Directors, Board of Supervisors, directors, supervisors and
senior managers confirm that the content of the Report is true, accurate and complete
and contains no false statements, misleading presentations or material omissions,
and assume joint and several legal liability arising therefrom.
Ignacio Dominguez, the person leading the Company (President and Chief Executive
Officer) as well as its legal representative, and Shahar Florentz, the person leading
the accounting function (Chief Financial Officer), hereby assert and confirm the
truthfulness, accuracy and completeness of the Financial Report.
The Third Quarter Report has not been audited.
This Report has been prepared in both Chinese and English. Should there be any
discrepancy between the two versions, the Chinese version shall prevail.
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ADAMA Ltd. Third Quarter Report 2022
I. Main accounting and financial results
1. Whether the Company performs any retroactive adjustments to, or restatements of, its accounting data of last year due
to change in accounting policies or correction of accounting errors
√ Yes □ No
July - July - September 2021 +/- (%) January - January - September 2021 +/- (%)
September Before After After September Before After After
2022 adjustment adjustment adjustment 2022 adjustment adjustment adjustment
Operating revenues
9,281,986 7,424,584 7,424,584 25.02% 28,077,814 22,488,364 22,488,364 24.85%
(RMB’000)
Net profit attributable
to shareholders of the 36,046 (370,952) (370,952) 109.72% 768,144 (3,916) (3,916) 19,715.53%
Company (RMB’000)
Net profit attributable
to shareholders of the
Company excluding 4,353 (384,112) (384,112) 101.13% 659,376 (61,989) (61,989) 1,163.70%
non-recurring profit
and loss (RMB’000)
Net cash flow from
operating activities (212,839) 690,694 690,694 -130.82% (1,558,700) 2,181,987 2,181,987 -171.43%
(RMB’000)
Basic EPS
0.0155 (0.1592) (0.1592) 109.72% 0.3297 (0.0017) (0.0017) 19,494.25%
(RMB/share)
Diluted EPS
N/A N/A N/A N/A N/A N/A N/A N/A
(RMB/share)
Weighted average
0.16% -1.73% -1.73% 1.89% 3.44% -0.02% -0.02% 3.46%
return on net assets
End of last year +/- (%)
End of Reporting Period
Before adjustment After adjustment After adjustment
Total assets
59,206,445 50,235,308 50,235,308 17.86%
(RMB’000)
Net assets attributable
to shareholders 23,570,005 21,075,083 21,075,083 11.84%
(RMB’000)
Reason for retroactive adjustments: According to ASBE 22 - Financial Instruments Recognition and Measurement,
starting from 2022 the Group recorded the gain or loss from the disposal of derivative instruments in the “Gain(loss) from
Changes in Fair Value”. Before 2022, the Group recorded the abovementioned gain of loss in the “Investment income,
net”. The Company reclassified the “Gain(loss) from Changes in Fair Value” and the “Investment income, net” in the
corresponding period in 2021. Such change has no impact on the operating results or net assets.
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ADAMA Ltd. Third Quarter Report 2022
2. Non-Recurring profit/loss
√ Applicable □ Not applicable
Unit: RMB’000
July - September January - September
Item Note
2022 2022
Gains/losses on the disposal of non-current assets (including
2,490 70,460
the offset part of asset impairment provisions)
Government grants recognized through profit or loss
(excluding government grants closely related to business of
5,952 30,786
the Company and given at a fixed quota or amount in
accordance with government’s uniform standards)
Recovery or reversal of provision for bad debts which is
assessed individually during the years 24,153 41,353
Other non-operating income and expenses other than the
above 3,958 (6,282)
Mainly
provision for
early
retirement
plan of
Other profit or loss that meets the definition of non-recurring
(7) (5,852) employees at
profit or loss
the
Company’s
Israeli
manufacturin
g facilities.
Less: Income tax effects 4,853 21,697
Total 31,693 108,768
Explanation of other profit or loss that meets the definition of non-recurring profit or loss
√ Applicable □ Not applicable
Mainly provisions for early retirement plan of employees at the Company’s Israeli manufacturing facilities as explained
above in the note.
Explanation of why the Company classified an item as non-recurring profit/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering their Securities to the Public. Non-recurring Profit
and Loss, and reclassified any non-recurring profit/loss items are given as examples in the said explanatory announcement
to recurrent profit/loss
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Changes in main accounting statement items and financial indicators in the Reporting Period, as well as reasons for
the changes
√ Applicable □ Not applicable
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ADAMA Ltd. Third Quarter Report 2022
General Crop Protection Market Environment
Preliminary projections estimate the global crop protection industry to increase by 14.5% in 20221. High crop prices
incentivized another year of increases in global planted areas, which drove higher crop protection volumes as well as by
higher pricing.
Crop prices remain elevated above historic averages despite decreasing somewhat in the last two quarters, after reaching
historically high levels in Q1 2022. Prices are expected to remain elevated into 2023, supported by key fundamentals
including very low stocks, unfavorable weather conditions in the Americas and parts of Europe and continued supply
disruptions exacerbated by the conflict in Ukraine as well as the energy crisis in Europe. However, weaker economic
conditions and broad-based monetary tightening could weigh on consumer demand, softening prices further.
Farmer profitability continues to face pressures from high production costs, mainly from high fertilizer prices, driven by a
surge in energy costs and the application of international economic sanctions to Russia and Belarus (both large fertilizer
exporters), as well as supply disruption and tight availability caused by the conflict in Ukraine. Despite this, farming activities
are nevertheless still very profitable in most regions.
Crude oil prices continued to decline in the third quarter of 2022 from the peak levels reached in the first quarter of 2022,
mainly due to concerns regarding the global economic outlook. Prices are, however, expected to remain elevated into the
fourth quarter of 2022 and beyond, due to low global inventory levels, uncertainty of Russia’s oil exports as well as the
OPEC+ decision to further limit oil production.
European gas prices and indirectly Asian spot LNG prices reached record highs in the third quarter of 2022 following the
sharp decline in Russian gas flows to Europe and a tight energy market. Meanwhile, prices in the United States reached
their highest summer levels since 2008.
Global container freight rates have dropped significantly in the third quarter of 2022, driven by a further weakening in
demand in the light of high inflation and slower-than-expected economic growth, easing port congestion. A large amount
of scheduled new deliveries of container vessel capacity, starting from the end of 2022, is expected to further soften port
congestion and put container shipping rates under pressure.
Prices for raw materials, intermediates and active ingredients reached peak levels towards the end of 2021; however,
since then there has been a general softening of prices in China and an increase in prices of such products in other
geographies. With strong global crop protection demand, and supply shortages driven by the energy crisis in Europe and
the ongoing conflict in Ukraine, as well as the ongoing "Zero COVID" policy in China, overall prices are expected to remain
above levels in recent years. In China, an increase in production capacity and an ease in logistic disruptions led to softening
of prices of many key raw materials, intermediates and active ingredients from China. In other geographies cost inflation,
energy prices, supply shortages and logistic challenges are driving procurement prices upward and impacting availability
of raw materials and intermediates.
1 Source: AgbioInvestor-Quarterly-Briefing-Service-PLUS_Q3-2022
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ADAMA Ltd. Third Quarter Report 2022
January - January - Same
Same period
September September period
last year +/-% +/-%
2022 2022 last year
(000’RMB)
(000’RMB) (000’USD) (000’USD)
Operating income
28,077,814 22,488,364 24.85% 4,257,997 3,475,992 22.50%
(Revenues)
Cost of goods sold 20,838,317 16,143,819 29.08% 3,159,552 2,495,316 26.62%
Sales & Marketing expenses 3,231,093 3,725,486 -13.27% 489,682 575,816 -14.96%
General & Administrative
972,450 1,020,945 -4.75% 147,192 157,812 -6.73%
expenses
R&D expenses 415,855 340,888 21.99% 63,027 52,692 19.61%
Financial Expenses 132,048 1,107,975 -88.08% 15,496 171,273 -90.95%
Gain (loss) from Changes
(1,364,883) 173,806 -885.29% (210,040) 26,571 -890.49%
in Fair Value
Total Net Financial Expenses 1,496,931 934,169 60.24% 225,536 144,702 55.86%
Total profits 901,110 244,550 268.48% 138,853 37,797 267.37%
Income tax expenses 132,966 246,269 -46.01% 20,121 38,054 -47.13%
Net profit attributable to
768,144 (3,916) 19,715.53% 118,732 (595) 20,054.96%
shareholders of the Company
EBITDA 3,983,221 2,619,409 52.07% 604,598 404,900 49.32%
Q3 2022 Q3 2021 Q3 2022 Q3 2021
+/-% +/-%
(000’RMB) (000’RMB) (000’USD) (000’USD)
Operating income (Revenues) 9,281,986 7,424,584 25.02% 1,359,044 1,147,469 18.44%
Cost of goods sold 7,015,562 5,437,109 29.03% 1,027,235 840,308 22.25%
Sales & Marketing expenses 1,072,004 1,219,050 -12.06% 156,961 188,399 -16.69%
General & Administrative
330,137 449,138 -26.50% 48,309 69,421 -30.41%
expenses
R&D expenses 141,117 113,948 23.84% 20,664 17,612 17.33%
Financial Expenses 570,273 659,185 -13.49% 83,487 101,884 -18.06%
Gain (loss) from Changes in
(23,165) 312,067 -107.42% (3,392) 48,230 -107.03%
Fair Value
Total Net Financial Expenses 593,438 347,118 70.96% 86,879 53,654 61.92%
Total profits 67,736 (175,764) 138.54% 9,918 (27,178) 136.49%
Income tax expenses 31,690 195,188 -83.76% 4,639 30,164 -84.62%
Net profit attributable to
36,046 (370,952) 109.72% 5,279 (57,342) 109.21%
shareholders of the Company
EBITDA 1,211,159 666,988 81.59% 177,324 103,080 72.03%
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ADAMA Ltd. Third Quarter Report 2022
Note: Since the functional currency of main overseas subsidiaries is the USD, and the Company’s management review of
the Company’s performance is based on the USD results, following explanations and analysis are based on USD-
denominated numbers as listed above.
Analysis of Financial Highlights
(1) Revenues
Revenues in the third quarter grew by 18% (+25% in RMB terms; +24% in constant exchange rates (CER) terms)
to $1,359 million, driven by a significant 18% increase in prices, a trend which started in the third quarter of 2021.
The markedly higher prices were complemented by continued volume growth (+6%), and achieved despite supply
challenges in certain markets, and the adverse impact of exchange rate movements in many regions. The Company
achieved growth in sales in constant exchange rates across most regions.
The accelerated growth in the quarter brought the first nine months sales to a record-high of $4,258 million, an
increase of 22% (+25% in RMB terms; +26% in CER terms) driven by a 19% increase in prices and an 7% growth
in volume.
Regional Sales Performance
Q3 2022 Q3 2021 Change 9M 2022 9M 2021 Change
$m $m USD $m $m USD
Europe 211 220 -4.0% 861 825 4.3%
North America 174 183 -4.7% 736 628 17.2%
Latin America 548 372 47.3% 1,161 820 41.7%
Asia Pacific 238 194 22.4% 958 677 41.4%
Of which China 156 121 28.9% 605 380 59.1%
India, Middle East & Africa 187 178 5.3% 542 525 3.1%
Total 1,359 1,147 18.4% 4,258 3,476 22.5%
Europe: Increase in sales in the third quarter in constant exchange rate terms following distributors securing inventory
for the autumn season in the UK, Czech Republic, France, Romania, Benelux and Baltics. This growth in constant
exchange rate terms was achieved despite drought conditions across European countries such as Spain, France, Italy
and Germany impacting demand, as well as supply issues, high channel inventories in some countries and a loss of
sales due to the Ukraine-Russia conflict.
North America: In the US Ag market, sales decreased in the third quarter as the Company was negatively impacted by
the record low harvest of cotton as farmers abandoned non-irrigated fields due to extreme drought conditions across
Texas and other southwest regions. Drought in California continued to impact demand. With the North American market
in the midst of harvest season, renewed demand for crop protection is expected in anticipation of the upcoming Q1 2023
planting season.
Very strong growth in sales in Canada enabled by the in-house production of cereal herbicide which supported the cereal
season before harvest.
The Consumer & Professional business presented slower sales in the quarter. On the professional side, initial market
price reductions, high levels of inventory in the channel and anticipation of decreases in costs of goods led to a slowdown
in the market. On the consumer side, inflationary pressures are softening overall market demand.
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ADAMA Ltd. Third Quarter Report 2022
Latin America: Strong growth in sales in Brazil, driven by prices and volume supporting the anticipated soybean, corn,
sugarcane and cotton fourth quarter crop seasons; sales which in 2021 were also included in the fourth quarter.
In other LATAM countries the higher sales reflect the strong demand across the region and were achieved despite some
adverse weather conditions and inventory in the channel.
Asia Pacific: The Company's strong growth in Asia Pacific was led by the sales of raw material, intermediates and fine
chemicals in China, driven by continued strong demand, in light of the strong global demand for crop protection and
achieved despite an ease in fine chemical prices. The sales in China of ADAMA's branded portfolio also continued to
grow nicely, despite the strong competition in the market.
In the wider APAC region, growth in sales in the quarter was also achieved led by strong sales in Asian countries such
as Thailand, Korea and Indonesia due to favorable seasonal conditions and with the return of face-to-face business post-
COVID. In the Pacific region fungicide sales grew nicely following favorable seasonal conditions. This growth was
achieved despite high channel inventories in parts of Asia.
India, Middle East and Africa: Sales in the third quarter were led by India and represent the peak season for sales in
this country due to the monsoon season. Despite this, heavy rainfall negatively impacted insecticide and fungicide sales
in certain crops and overall sales were also impacted by some supply constraints.
(2) Cost of Goods and Gross Profit
In the reported results, as of Q4 2021, following recent changes in the guidelines in China, the transportations costs
to third parties and its marketing subsidiaries and opex idleness have been reclassified from operating expenses to
costs of goods (not impacting the operating results), while these expenses were not recorded in the cost of goods
in the third quarter and first nine months of 2021, but rather in the operating expenses.
Additionally, certain extraordinary charges related largely to a temporary disruption of the production of certain
products were adjusted in the third quarter and first nine months of 2021. These charges have significantly declined
since Q1 2022, as the relocation and upgrade of the manufacturing Jingzhou site in China has been completed and
is now at a high level of operation.
Excluding the impact of the abovementioned items, the higher gross profit was mainly driven by the markedly higher
prices, complemented by continued volume growth, which offset the higher logistic, procurement and production
costs, as well as the negative impact of exchange rates.
(3) Operating Expenses:
Operating expenses include Sales and Marketing, General and Administration and R&D.
Please refer to the explanation above regarding the reclassification of certain transportation costs and idleness from
operating expenses to COGs.
Additionally, the Company recorded certain non-operational charges within its operating expenses amounting to
RMB 20 million ($ 3 million) in Q3 2022 in comparison to RMB 41 million ($ 6 million) in Q3 2021, and RMB 202
million ($ 31 million) in 9M 2022 in comparison to RMB 210 million ($ 32 million) in 9M 2021, mainly as follows:
(i) Non-cash amortization charges in respect of Transfer assets received and written-up related to the 2017
ChemChina-Syngenta acquisition. The proceeds from the Divestment of crop protection products in connection with
the approval by the EU Commission of the acquisition of Syngenta by ChemChina, net of taxes and transaction
expenses, were paid to Syngenta in return for the transfer of a portfolio of products in Europe of similar nature and
economic value. Since the products acquired from Syngenta are of the same nature, and with the same net
economic value as those divested, the Divestment and Transfer transactions had no net impact on the underlying
economic performance of the Company. These additional amortization charges will continue until 2032 but at a
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ADAMA Ltd. Third Quarter Report 2022
reducing rate, yet will still be at a meaningful level until 2028; (ii) Charges related mainly to the non-cash amortization
of intangible assets created as part of the Purchase Price Allocation (PPA) on acquisitions, with no impact on the
ongoing performance of the companies acquired; and (iii) Incentive plans - share-based compensation.
Excluding the impact of the abovementioned non-operational charges, the higher operating expenses in the quarter
and first nine months reflect the strong growth of the business, higher transportation and logistics costs driven by
both an increase in freight costs and volumes transported, an increase in expenses attributed to company success-
based employee compensation, the inclusion of a recent acquisition (in the nine-month period) and moderated by
the positive impact of exchange rates.
In addition, in the first quarter of 2022 the Company recorded a doubtful debt provision for trade receivables in
Ukraine.
(4) Financial Expenses
“Financial Expenses” alone mainly reflect interest payments on corporate bonds and bank loans as well as foreign
exchange gains/losses on the bonds and other monetary assets and liabilities before the Company carries out any
hedging.
The impact of Financial Expenses (before hedging) is an expense of RMB 132 million ($15 million) for the nine
months of 2022 compared with an expense of RMB 1,108 million ($171 million) for the corresponding period in
2021.
Given the global nature of its operational activities and the composition of its assets and liabilities, the Company, in
the ordinary course of its business, uses foreign currency derivatives (forwards and options) to hedge the cash flow
risks associated with existing monetary assets and liabilities that may be affected by exchange rate fluctuations.
The impact of the hedging transactions which is recorded in “Gains/Losses from Changes in Fair Value” is a net
loss of RMB 1,365 million ($210 million) in the nine months of 2022 compared with a net gain of RMB 174 million
($27 million) in the corresponding period in 2021.
The aggregate of Financial Expenses and Gains/Losses from Changes in Fair Value (hereinafter as “Total Net
Financial Expenses”), which more comprehensively reflects the financial expenses of the Company in supporting
its main business and protecting its monetary assets/liabilities, amounts to RMB 1,497 million ($226 million) in the
nine months of 2022 compared with RMB 934 million ($145 million) in the corresponding period in 2021.
The higher financial expenses were mainly driven by the net effect of the high Israeli CPI on the ILS-denominated,
CPI-linked bonds and higher hedging costs on exchange rates. In the nine-month period in 2022, these expenses
also included the valuation of put options attributed to minority stakes of a subsidiary fully consolidated from Q3
2021.
(5) Income Tax Expenses
In 2022, the Company recognized a higher deferred tax asset, related to inter-group sales, that led to a decline in
the tax on income.
The significantly higher tax expenses in the third quarter of 2021 reflected the high growth in end-market sales,
which incur higher tax rates, as well as the impact of a significantly weaker BRL on non-monetary tax assets.
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ADAMA Ltd. Third Quarter Report 2022
Changes in main assets and liabilities
Unit: RMB’000
End of
End of last
Assets and liabilities Reporting +/- (%) Explanation
year
Period
Cash at bank and on Increasing payments for procurement and
3,719,929 5,818,835 -36.07%
hand investments in CIP projects
Mainly increase in receivables in respect of
Other receivables 985,358 691,939 42.41%
securitization transaction
Higher inventory levels mainly to support
expected future sales, in light of anticipated
Inventories 17,381,277 11,750,162 47.92%
supply shortages, logistic challenges and
inventory costs increases.
Changes are mainly due to investments as part
Construction in progress 2,956,191 2,143,400 37.92%
of upgrade projects
Deferred tax assets 1,313,913 723,075 81.71% Mainly due to increase in inter-group sales
Short-term loans 3,139,729 874,755 258.93% Additional short-term financing
Bills payable 1,131,105 493,376 129.26% Due to higher level of procurement
Derivative financial
356,162 243,316 46.38% Changes due to revaluation of derivatives
assets
Derivative financial
803,087 176,206 355.77% Changes due to revaluation of derivatives
liabilities
Mainly increase in accrued expenses for
Other payables 1,975,130 1,342,188 47.16% logistics and bond interests, and liabilities in
respect of securitization transaction
II. Information regarding the Shareholders
1. Total number of ordinary shareholders and preference shareholders who had resumed their voting
rights, and shareholdings of top 10 shareholders at the period-end
Unit: share
Total number of preference
40,410 (the number of ordinary A
shareholders who had
Total number of ordinary shareholders at the share shareholders is 27,109; the
resumed their voting right at 0
end of the Reporting Period number of B share shareholders
the end of the Reporting
is 13,301)
Period (if any)
Shareholdings of top 10 shareholders
Name of shareholder Nature of Shareholding Number of Number of Pledged or frozen
shareholde percentage shares held restricted shares
r shares held Status Number
Syngenta Group Co., Ltd. State-
owned
78.47% 1,828,137,961 -- -- --
legal
person
China Cinda Asset State-
Management Co., Ltd. owned
1.34% 31,115,916 -- -- --
legal
person
Portfolio No.503 of National
Others 0.60% 14,000,000 -- -- --
Social Security Fund
CITIC Securities-Huarong
Others 0.55% 12,885,900 -- -- --
Ruitong Equity Investment
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ADAMA Ltd. Third Quarter Report 2022
Management Co., Ltd.-CITIC
Securities-Changfeng Asset
Management Plan for Single
Qualified Investor
Hong Kong Securities Clearing Overseas
Company Limited legal 0.43% 9,932,401 -- -- --
person
Bosera Funds-China
Merchants Bank- Bosera Funds
Others 0.28% 6,500,000 -- -- --
Xincheng No.2 Collective Asset
Management Plan
Domestic
WANG Xiuqin natural 0.27% 6,316,461
person
Bosera Funds-Postal Savings
Bank- Bosera Funds Xincheng
Others 0.26% 6,000,000 -- -- --
No.3 Collective Asset
Management Plan
China Merchants Bank –
Others 0.24% 5,489,800 -- -- --
Tianhong CSI 500 ETF
Domestic
WU Feng natural 0.21% 5,001,015 -- -- --
person
Shareholdings of top 10 non-restricted shareholders
Name of shareholder Number of non-restricted Type of shares
shares held at the period-end Type Number
Syngenta Group Co., Ltd. 1,828,137,961 RMB ordinary share 1,828,137,961
China Cinda Asset Management
31,115,916 RMB ordinary share 31,115,916
Co., Ltd.
Portfolio No.503 of National Social
14,000,000 RMB ordinary share 14,000,000
Security Fund
CITIC Securities-Huarong Ruitong
Equity Investment Management
Co., Ltd.-CITIC Securities- 12,885,900 RMB ordinary share 12,885,900
Changfeng Asset Management
Plan for Single Qualified Investor
Hong Kong Securities Clearing
9,932,401 RMB ordinary share 9,932,401
Company Limited
Bosera Funds-China Merchants
Bank- Bosera Funds Xincheng
6,500,000 RMB ordinary share 6,500,000
No.2 Collective Asset Management
Plan
WANG Xiuqin 6,316,461 RMB ordinary share 6,316,461
Bosera Funds-Postal Savings
Bank- Bosera Funds Xincheng
6,000,000 RMB ordinary share 6,000,000
No.3 Collective Asset Management
Plan
China Merchants Bank – Tianhong
5,489,800 RMB ordinary share 5,489,800
CSI 500 ETF
WU Feng 5,001,015 RMB ordinary share 5,001,015
Syngenta Group Co., Ltd. is not a related party or acting-in-concert party as
prescribed in the Administrative Methods for Acquisition of Listed Companies to other
Related or act-in-concert parties
shareholders. It is unknown to the Company whether shareholders above are related
among the shareholders above
parties or acting-in-concert parties as prescribed in the Administrative Methods for
Acquisition of Listed Companies.
Top 10 ordinary shareholders Shareholder Wu Feng held 3,591,189 shares of the Company through an ordinary
conducting securities margin securities trading account and 1,409,826 shares of the Company through a credit
trading collateral securities trading account, the total sum of which is 5,001,015 shares.
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ADAMA Ltd. Third Quarter Report 2022
2. Total number of preference shareholders and shareholdings of the top 10 of such at the period-end
□ Applicable √ Not applicable
III. Other Significant Events
□ Applicable √ Not applicable
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ADAMA Ltd. Third Quarter Report 2022
IV. Financial Statements
i. Financial Statements
1. Consolidated balance sheet
Prepared by ADAMA Ltd.
30 September 2022
Unit: RMB’000
September 30, December 31, September 30, December 31,
Item Item
2022 2021 2022 2021
Current assets: Current liabilities:
Cash at bank and on hand 3,719,929 5,818,835 Short-term loans 3,139,729 874,755
Financial assets held for
1,632 1,479 Derivative financial liabilities 803,087 176,206
trading
Derivative financial assets 356,162 243,316 Bills payable 1,131,105 493,376
Bills receivable 118,148 81,992 Accounts payable 7,191,302 6,294,163
Accounts receivable 10,130,337 8,362,493 Contract liabilities 1,505,390 1,381,311
Receivables financing 60,526 120,157 Employee benefits payable 1,157,872 1,247,979
Prepayments 443,550 379,788 Taxes payable 436,530 368,682
Other receivables 985,358 691,939 Other payables 1,975,130 1,342,188
Non-current liabilities due
Inventories 17,381,277 11,750,162 1,857,482 1,795,754
within one year
Other current assets 1,145,605 938,453 Other current liabilities 452,442 412,909
Total current assets 34,342,524 28,388,614 Total current liabilities 19,650,069 14,387,323
Non-current assets: Non-current liabilities:
Long-term receivables 66,369 56,234 Long-term loans 4,193,134 3,498,912
Long-term equity investments 24,836 15,335 Debentures payable 7,951,541 7,797,131
Other equity investments 159,774 152,118 Lease liabilities 451,940 362,086
Investment properties 3,305 3,716 Long-term accounts payable 104,716 95,699
Long-term employee benefits
Fixed assets 8,872,837 8,048,389 827,283 792,358
payables
Construction in progress 2,956,191 2,143,400 Provisions 205,374 186,430
Right-of-use assets 582,470 463,915 Deferred tax liabilities 378,787 380,138
Intangible assets 5,496,798 5,326,288 Other non-current liabilities 1,873,596 1,660,148
Goodwill 4,895,961 4,409,599 Total non-current liabilities 15,986,371 14,772,902
Deferred tax assets 1,313,913 723,075 Total liabilities 35,636,440 29,160,225
Other non-current assets 491,467 504,625 Shareholders’ equity:
Total non-current assets 24,863,921 21,846,694 Share capital 2,329,812 2,329,812
Total assets 59,206,445 50,235,308 Capital reserves 12,977,172 12,977,171
Other comprehensive
1,365,249 (432,384)
income
Special reserves 17,748 19,857
Surplus reserves 240,162 240,162
Retained earnings 6,639,862 5,940,465
Total equity attributed to the
23,570,005 21,075,083
shareholders of the company
Non-controlling interests - -
Total equity 23,570,005 21,075,083
Total liabilities and equity 59,206,445 50,235,308
Ignacio Dominguez Shahar Florentz Shahar Florentz
Legal representative Chief of the accounting work Chief of the accounting organ
13
ADAMA Ltd. Third Quarter Report 2022
2. Consolidated income statement for the period from the year-beginning to the end of the Reporting Period
Unit: RMB’000
January-September, January-September,
Item
2022 2021
1. Total operating Income 28,077,814 22,488,364
Less: Cost of sales 20,838,317 16,143,819
Taxes and surcharges 80,507 82,359
Selling and Distribution expenses 3,231,093 3,725,486
General and Administrative expenses 972,450 1,020,945
Research and Development expenses 415,855 340,888
Financial expenses (income) 132,048 1,107,975
Including: Interest expense 525,681 462,725
Interest income 111,595 45,487
Add: Investment income, net 10,889 4,408
Including: Income from investment in associates
10,889 4,408
and joint ventures
Gain (loss) from changes in fair value (1,364,883) 173,806
Credit impairment reversal (losses) (97,785) 9,685
Asset Impairment reversal (losses) (132,121) (39,358)
Gain (loss) from disposal of assets 62,491 9,246
2. Operating profit 886,135 224,679
Add: Non-operating income 38,257 46,564
Less: Non-operating expense 23,282 26,693
3. Total profit 901,110 244,550
Less: income tax expense 132,966 246,269
4. Net profit 768,144 (1,719)
4.1 Classified by nature of operations
4.1.1 Continuing operations 768,144 (1,719)
4.2 Classified by ownership - -
4.2.1 Shareholders of the Company 768,144 (3,916)
4.2.2 Non-controlling interests - 2,197
5. Other comprehensive income net of tax 1,797,634 (30,850)
Other comprehensive income net of tax attributable to shareholders
1,797,634 (30,850)
of the Company
5.1 Items that will not be reclassified into profit/loss 75,796 (5,474)
5.1.1 Re-measurement of defined benefit plan liability 75,796 (5,474)
5.2 Items that were or will be reclassified to profit or loss 1,721,838 (25,376)
5.2.1 Effective portion of gains or loss of cash flow hedge (24,433) 237,449
5.2.2 Translation differences of foreign financial statements 1,746,271 (262,825)
Other comprehensive income net of tax attributable to Non-controlling
- -
interests
6. Total comprehensive income for the period 2,565,778 (32,569)
Total comprehensive income attributable to shareholders
2,565,778 (34,766)
of the Company
Total comprehensive income attributable to Non-controlling interests - 2,197
7. Earnings per share
7.1 Basic earnings per share (RMB/ share) 0.3297 (0.0017)
7.2 Diluted earnings per share (RMB/ share) N/A N/A
Ignacio Dominguez Shahar Florentz Shahar Florentz
Legal representative Chief of the accounting work Chief of the accounting organ
14
ADAMA Ltd. Third Quarter Report 2022
3. Consolidated cash flow statement for the period from the year-beginning to the end of the Reporting
Period
Unit: RMB’000
January-September, January-September,
Item
2022 2021
1. Cash flows from operating activities:
Cash received from sale of goods and rendering of services 26,141,756 21,454,588
Refund of taxes and surcharges 240,522 133,814
Cash received relating to other operating activities 729,056 563,811
Sub-total of cash inflows from operating activities 27,111,334 22,152,213
Cash paid for goods and services 22,192,149 14,368,965
Cash paid to and on behalf of employees 3,130,092 2,789,320
Payments of taxes and surcharges 771,897 344,129
Cash paid relating to other operating activities 2,575,896 2,467,812
Sub-total of cash outflows from operating activities 28,670,034 19,970,226
Net cash flows from operating activities (1,558,700) 2,181,987
2. Cash flows from investing activities:
Cash receipts from disposal of investments 5,887 3,864
Cash received from investment income 1,588 867
Net cash received from disposal of fixed assets, intangible assets
71,850 19,964
and other long-term assets
Cash received for other investing activities 2,325 8,562
Sub-total of cash inflows from investing activities 81,650 33,257
Cash paid to acquire fixed assets, intangible assets and other
1,968,585 1,803,236
long-term assets
Net cash paid to acquire subsidiaries or other
- 655,039
business units
Cash paid for other investing activities 89,395 86,228
Sub-total of cash outflows from investing activities 2,057,980 2,544,503
Net cash flows from investing activities (1,976,330) (2,511,246)
3. Cash flows from financing activities:
Cash received from borrowings 3,909,042 4,369,565
Cash received relating to other financing activities 26,750 522,649
Sub-total of cash inflows from financing activities 3,935,792 4,892,214
Cash repayment of borrowings 1,324,163 2,655,257
Cash payment for dividends, profit distributions or interest 571,867 490,113
Including: dividends paid to non-controlling interest 39,074 35,904
Cash paid relating to other financing activities 932,457 300,907
Sub-total of cash outflows from financing activities 2,828,487 3,446,277
Net cash flows from financing activities 1,107,305 1,445,937
4. Effect of foreign exchange rate changes on cash and cash
311,082 (11,381)
equivalents
5. Net increase (decrease) in cash and cash equivalents (2,116,643) 1,105,297
Add: Cash and cash equivalents at the beginning of the period 5,759,480 3,835,071
6. Cash and cash equivalents at the end of the period 3,642,837 4,940,368
15
ADAMA Ltd. Third Quarter Report 2022
ii. Auditor’s report
Is this Report audited?
□ Yes √ No
This Report is unaudited.
Board of Directors
ADAMA Ltd.
October 27, 2022
16
