ADAMA Ltd. First Quarter Report 2024
Stock Code: 000553(200553) Stock Abbreviation: ADAMA A(B) Announcement No. 2024-18
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.
FIRST QUARTER REPORT 2024
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.
April 2024
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ADAMA Ltd. First Quarter Report 2024
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.
Steve Hawkins, the person leading the Company (President and Chief Executive
Officer) as well as its legal representative, and Efrat Nagar, the person leading the
accounting function and the accounting body (Chief Financial Officer), hereby assert
and confirm the truthfulness, accuracy and completeness of the financial information
contained in the Report.
The First 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. First Quarter Report 2024
I. Main Financial Data
1. Main accounting and financial results
Whether the Company performs any retroactive adjustments to, or restatements of, its accounting data
of last year
□ Yes √ No
January - March 2024 January - March 2023 YoY +/- (%)
Operating revenues (RMB’000) 7,508,899 8,610,576 -12.79%
Net profit attributable to shareholders of the
(227,605) 83,273 -373.32%
Company (RMB’000)
Net profit attributable to shareholders of the
Company excluding non-recurring profit and loss (250,690) 44,893 -658.42%
(RMB’000)
Net cash flow from operating activities
(735,162) (2,905,168) 74.69%
(RMB’000)
Basic EPS (RMB/share) (0.098) 0.036 -372.22%
Diluted EPS (RMB/share) NA NA NA
Weighted average return on net assets -1.04% 0.36% -1.40%
End of Reporting Period End of last year +/- (%)
Total assets (RMB’000) 54,702,737 55,405,803 -1.27%
Net assets attributable to shareholders
21,662,821 21,924,475 -1.19%
(RMB’000)
2. Non-Recurring profit/loss
√ Applicable □ Not applicable
Unit: RMB’000
January-March
Item Note
2024
Gains/losses on the disposal of non-current assets (including the
1,159 -
write-off of asset impairment provisions accrued during the period)
Government grants recognized through profit or loss (excluding
government grants closely related to business of the Company
1,716 -
and given at a fixed quota or amount in accordance with
government’s uniform standard)
Reversal of provision for receivables and contract assets, that are
8,879 -
subject to specific provision
Post vesting cash share based payment revaluation 11,206
Other non-operating income and expenses other than the above 5,017 -
Other profit or loss that meets the definition of non-recurring profit
- -
or loss
Less: Income tax effects 4,892 -
Total 23,085 -
Explanation of other profit or loss that meets the definition of non-recurring profit or loss
□ Applicable √ Not applicable
No such cases during the Reporting Period.
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ADAMA Ltd. First Quarter Report 2024
Explanation of why the Company classified an item as non-recurring profit/loss according to the definition
in the First Explanatory Announcement on Information Disclosure for Companies Offering their Securities
to the Public. Non-recurring Profit and Loss, and reclassified any non-recurring profit/loss item given as
an example in the said explanatory announcement to recurrent profit/loss
□ Applicable √ Not applicable
No such cases during 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
General Crop Protection Market Environment1
Key commodity crop prices continued to decline in the first months of 2024 and global supply continued to improve. Crop
prices remain above average historical levels but the current price level has a negative impact on farmer income compared
to previous years. Despite this, farmer demand is expected to remain stable under the current conditions. The channel
inventory situation is easing up, but there still remains above average inventories in several geographies, including Brazil.
In addition, the high interest rate environment, continue to drive a just-in-time purchasing approach by the channel. Active
ingredient prices from China remained low during Q1 with some molecules even experiencing further price declines, on
one hand reducing input costs but on the other creating pricing pressure on crop protection products and supporting a
"wait and see" approach in the market.
Update on the War Situation in Israel
ADAMA is headquartered in Israel and has three manufacturing sites in the country. Following October 7 th, 2023, the
Company continued the production in its global manufacturing sites and in Israel, with certain non-significant restrictions
(which have been lifted in February 2024). This situation did not have a material impact on the Company's ability to support
its markets or on ADAMA’s consolidated financial results.
On the 14th of April, Israel was under an attack from Iran, with no consequences to the Company's ongoing activities.
Update on Impact of Shipping Obstructions
In January 2024 some major shipping lines announced that they will suspend shipping to Israel through Israeli ports and
through the Suez Canal due to tensions in the Red Sea. This has led to longer transportation times, with shipping lines
being diverted around Africa.
As of the date of publication of this report, shipping time and costs have increased significantly, mainly in the Asia-Pacific
Israel route in comparison to before January 2024. These cost increases impact only a small portion of the Company's
overall shipping costs and ADAMA has been ordering relevant materials ahead of time to ensure timely supply. Currently,
the Company does not anticipate this to have a significant impact on its financial results or on the ongoing supply of
materials to its production facilities, although this situation might impact the company's ability to respond quickly to changing
market demand.
1
Sources: CCPIA (China Crop Protection Industry Association), BAIINFO, FocusEconomics, Peer quarterly financial reports, internal
sources.
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ADAMA Ltd. First Quarter Report 2024
Same period Same period
Q1 2024 Q1 2024
last year +/-% last year +/-%
(000’RMB) (000’USD)
(000’RMB) (000’USD)
Revenues 7,508,899 8,610,576 -12.79% 1,057,150 1,258,525 -16.00%
Cost of goods
5,688,352 6,492,832 -12.39% 800,840 948,997 -15.61%
sold
Sales &
Marketing 1,080,738 1,065,293 1.45% 152,154 155,702 -2.28%
expenses
General &
Administrative 280,258 266,369 5.21% 39,456 38,929 1.35%
expenses
R&D
111,852 134,902 -17.09% 15,747 19,717 -20.13%
expenses
Financial
367,164 206,712 77.62% 51,705 30,222 71.08%
Expenses
Loss from
Changes in (148,935) (352,126) -57.70% (20,968) (51,467) -59.26%
Fair Value
Total Net
Financial 516,099 558,838 -7.65% 72,673 81,689 -11.04%
Expenses
Total profits
(151,293) 71,111 -312.75% (21,310) 10,386 -305.19%
(losses)
Income tax
expenses 76,312 (12,162) 727.46% 10,744 (1,777) 704.61%
(income)
Net profit
(loss)
attributable to
(227,605) 83,273 -373.32% (32,054) 12,163 -363.54%
shareholders
of the
Company
EBITDA 855,727 1,134,723 -24.59% 120,476 165,852 -27.36%
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.
In this table and all tables in this report numbers may not sum due to rounding.
Analysis of Financial Highlights
(1) Revenues
Revenues in the first quarter declined by approximately 16% (-13% in RMB terms; -14% in CER terms) to $1,057 million,
presenting a decrease of 10% in prices and a decrease of 5% in volumes. The lower sales reflect lower market prices and
lower demand, attributed to the market dynamics of pricing pressure, high competition and a "wait and see" approach
mainly in commoditized products as well as unfavorable weather conditions in some regions and the channel opting to
hold lower levels of inventory and purchase closer to the season in light of higher interest rates.
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ADAMA Ltd. First Quarter Report 2024
Regional Sales Performance
Q1 2024 Q1 2023 Change %
$m $m USD
Europe, Africa & Middle East (EAME) 368 430 -14.5%
North America 191 211 -9.4%
Latin America 191 233 -18.1%
Asia Pacific* 307 384 -20.0%
Of which China 154 182 -15.5%
Total 1,057 1,259 -16.0%
Europe, Africa & Middle East (EAME): Sales in EAME decreased in the first quarter of 2024 led by a contraction in the
overall European crop protection market mainly from low demand following channel destocking, erratic spring season
causing just-in-time purchasing patterns and lower famer demand in areas impacted by lower grain market prices. This
market also experienced pricing pressure, mainly in commoditized products.
North America: Consumer & Professional Solutions - Sales were lower as demand from the end-users in both the
consumer and professional markets slowly recovered during the first quarter. Declining active ingredient prices from
China supported "just-in-time" purchasing patterns.
In the US Ag market sales in the first quarter of 2024 were lower reflecting weak pricing, lower demand and strong
competition. The overall pricing was lower in the first quarter of 2024 than in the first quarter of 2023, as market prices
began to decline only during the second quarter of 2023. While channel inventory levels are steadily declining, demand is
being impacted by sales being pushed closer to season application, while the channel is opting to hold lower inventory
levels due to high interest rates.
ADAMA's sales in Canada declined in the first quarter in light of lower prices, a "wait and see" approach in the market,
high fungicide channel inventories, as well as strong competition particularly in commoditized products.
Latin America: Brazil – the Company's sales in the first quarter following the overall challenging crop protection market
due to unfavorable weather conditions, a "wait and see" approach" in the market and softer pricing impacted by strong
competition, particularly in commoditized products. Despite this, the Company's differentiated products continued to be
well received in the market.
In the rest of LATAM sales in the first quarter reflected the overall challenging crop protection market due to unfavorable
weather conditions in Northern LATAM and "wait and see" purchasing patterns combined with softer pricing in
commoditized products. Despite this, the Company's differentiated products in key strategic crop segment continued to
be well received in the market.
Asia Pacific: In China, the branded formulations achieved business growth in constant exchange rates driven by bio-
formulation new launches and well-prepared spring campaign while the Company also focused on improving the quality
of the business with differentiated products despite that the market is still experiencing high channel inventories and
pricing pressure especially in commodities. Market pricing in the non-ag business began normalizing from heights seen
in recent years and the tech sales were mainly impacted by a "wait and see" approach in the market.
In the Pacific region, sales in the first quarter were impacted by softer pricing following decline of active ingredients
prices from China as well as overall high channel inventories. This was despite better weather conditions than anticipated
in Australia.
Sales in India were impacted by softer pricing, exceptionally dry and hot weather, high channel inventories as well as
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ADAMA Ltd. First Quarter Report 2024
"wait-and-see" purchasing behaviour in commoditized products.
Sales in the wider APAC region continued to experience pricing pressure following intense competition from China,
particularly in commoditized products, while dry weather and higher channel inventories impacted demand.
(2) Cost of Goods and Gross Profit
In the first quarter of 2024, the new inventory sold, priced at market levels, the management focus on the quality of
business which led to an improvement in the sales mix of higher margin products and the lower transportation and
logistic costs had a positive impact on the cost of goods and gross profit and this is despite the lower sales impacted
by the decrease in prices and volumes and the negative impact of the exchange rates.
(3) Operating Expenses
Operating expenses include Sales and Marketing, General and Administration and R&D.
The Company recorded certain non-operational, mostly non-cash, charges within its reported operating expenses
amounting to RMB 136 million ($19.2 million) in Q1 2024 in comparison to RMB 65 million ($9.5 million) in Q1 2023,
mainly as follows:
(i) measures to improve efficiencies, (ii) non-cash amortization charges in respect of Transfer Assets received from
Syngenta related to the 2017 ChemChina-Syngenta acquisition, (iii) charges related 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,. For further details on these non-operational items, please see
the appendix to this release
Excluding the impact of the abovementioned non-operational charges, the operating expenses were lower in the
first quarter of 2024, following undertaking tight OPEX management measures.
(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, net (before hedging) is RMB 367 million ($52 million) for Q1 2024,
compared with Financial Expenses, net of RMB 207 million ($30 million) for the corresponding periods in 2023.
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.
“Gains/Losses from Changes in Fair Value” amounted to a net loss of RMB 149 million ($21 million) in Q1 2024,
mainly due to hedging transactions, compared with a net loss of RMB 352 million ($51 million) in the corresponding
period in 2023.
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 516 million ($73 million) in Q1 2023
compared with RMB 559 million ($82 million) in the corresponding period in 2023.
The lower financial expenses in the quarter were mainly due to the net effect of lower Israeli CPI on the ILS-
denominated, CPI-linked bonds as well as steps taken by the Company's management to optimize the Company's
financing structure. The Company took advantage of the high interest rate environment to increase interest received
from weekly bank deposits designated to support working capital, as well as improved financing terms and
leveraged group funding possibilities by taking long-term loans in China at attractive rates, which minimized the
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ADAMA Ltd. First Quarter Report 2024
increase in bank interest expenses paid in the first quarter of 2024.
(5) Income Tax Expenses
Despite reaching losses before tax, the Company recorded tax expenses in the quarter mainly because the losses
were primarily incurred by subsidiaries with relatively lower tax rates, while some of them did not create deferred
tax assets on the losses. On the other hand, the subsidiaries that generated profit have a higher tax rate. In the first
quarter of 2024 the Company recorded tax expenses due to the non-cash impact of the weakness of the BRL
compared with tax income due to stronger BRL in the first quarter of 2023.
Changes in main assets and liabilities
Unit: 000 RMB
End of Reporting
Assets and liabilities End of last year +/- (%) Explanation
Period
Realization and
Derivative financial assets 128,562 850,137 -84.88%
revaluation of derivatives
Increase mainly due to
Other receivables 1,635,491 1,054,302 55.13%
securitization programs
Realization and
Derivative financial liabilities 325,092 607,787 -46.51%
revaluation of derivatives
Seasonality increase
Taxes payable 561,490 407,230 37.88%
mainly due to VAT
II. Information regarding Shareholders
1. Total number of ordinary shareholders and preference shareholders who had resumed their voting
right and shareholdings of top 10 shareholders at the period-end
Unit: share
Total number of preference
Total number of ordinary 41,099 (the number of ordinary A share shareholders who had
shareholders at the end of the shareholders is 28,482; the number of resumed their voting right at 0
Reporting Period B share shareholders is 12,617) the end of the Reporting
Period (if any)
Shareholdings of top 10 shareholders (not including Shares Lent for the Relending Financing)
Name of Nature of Shareholding Number of Number of restricted Pledged or frozen
shareholder shareholder percentage shares held shares held shares
Status Status
Syngenta Group State-owned
78.47% 1,828,137,961 -- -- --
Co., Ltd. legal person
China Cinda Asset
State-owned
Management Co., 1.34% 31,115,916 -- -- --
Ltd. legal person
Bosera Funds-China
Merchants Bank-
Bosera Funds
Others 0.28% 6,500,000 -- -- --
Xincheng No.2
Collective Asset
Management Plan
Domestic
Wu Feng 0.28% 6,495,369 -- -- --
Individual
Bosera Funds-
Postal Savings
Bank- Bosera Funds
Others 0.26% 6,000,000 -- -- --
Xincheng No.3
Collective Asset
Management Plan
8
ADAMA Ltd. First Quarter Report 2024
Zhu Shenglan Domestic
0.25% 5,756,000 -- -- --
Individual
Agricultural Bank of
China- CSI 500
Exchange Traded
Others 0.25% 5,720,984 -- -- --
Open-end Index
Securities
Investment Fund
Hong Kong
Securities Clearing Overseas
0.20% 4,756,753 -- -- --
Company Ltd. legal person
(HKSCC)
China Universal
Fund-Industrial
Bank-China
Universal-Strategic Others 0.19% 4,400,000 -- -- --
Enhancement No.3
Collective Asset
Management Plan
Qichun County
State-owned Assets
Supervision and State-owned 0.18% 4,169,266 -- -- --
Administration legal person
Bureau
Shareholdings of top 10 non-restricted shareholders
Name of shareholder Number of non-restricted Types 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.
Bosera Funds-China Merchants
Bank- Bosera Funds Xincheng
6,500,000 RMB ordinary share 6,500,000
No.2 Collective Asset
Management Plan
Wu Feng 6,495,369 RMB ordinary share 6,495,369
Bosera Funds-Postal Savings
Bank- Bosera Funds Xincheng
6,000,000 RMB ordinary share 6,000,000
No.3 Collective Asset
Management Plan
Zhu Shenglan 5,756,000 RMB ordinary share 5,756,000
Agricultural Bank of China- CSI
500 Exchange Traded Open-end 5,720,984 RMB ordinary share 5,720,984
Index Securities Investment Fund
Hong Kong Securities Clearing
4,756,753 RMB ordinary share 4,756,753
Company Ltd. (HKSCC)
China Universal Fund-Industrial
Bank-China Universal-Strategic
4,400,000 RMB ordinary share 4,400,000
Enhancement No.3 Collective
Asset Management Plan
Qichun County State-owned
Assets Supervision and 4,169,266 RMB ordinary share 4,169,266
Administration Bureau
Syngenta Group Co., Ltd. is not related party or acting-in-concert party as prescribed
in the Administrative Methods for Acquisition of Listed Companies to other
Explanation on associated
shareholders. It is unknown to the Company whether shareholders above are related
relationship or/and persons parties or acting-in-concert parties as prescribed in the Administrative Methods for
Acquisition of Listed Companies.
Shareholder Wu Feng held 4,848,843 shares of the Company through a common
Particular about shareholder securities account and 1,646,526 shares of the Company through a credit collateral
participate in the securities securities trading account, altogether 6,495,369 shares. Shareholder Zhu Shenglan
held 5,756,000 shares of the Company through a credit collateral securities trading
9
ADAMA Ltd. First Quarter Report 2024
lending and borrowing business (if account.
any)
2. Involvement of Shareholders holding more than 5% of shares, Top 10 Shareholders and Top 10
Non-restricted Shareholders in Lending of Shares in the Relending Financing of Funds and
Securities
√ Applicable □ Not applicable
Shareholders holding more than 5% of shares, Top 10 Shareholders and Top 10 Non-restricted Shareholders in
Lending of Shares in the Relending Financing of Funds and Securities
Shareholding of Common
Shareholding of Common Shares Lent in Shares Lent in
Securities Account and
Securities Account and Relending Financing of Relending Financing of
Credit Collateral
Credit Collateral Securities Funds and Securities Funds and Securities
Securities Trading
Trading Account at the and Not Yet Returned at and Not Yet Returned
Name of Beginning Period Account at the Ending
the Beginning Period at the Ending Period
Shareholders Period
Shareholding Shareholding Shareholding Shareholding
Total Proportion of Total Proportion of Total Proportion of Total Proportion of
Number the Total Number the Total Number the Total Number the Total
Equity Equity Equity Equity
Agricultural
Bank of China-
CSI 500
Exchange
Traded Open- 2,476,484 0.11% 702,000 0.03% 5,720,984 0.25% 515,300 0.02%
end Index
Securities
Investment
Fund
3. Change from the Previous Reporting Period to the Top 10 Shareholders and Top 10 Non-restricted
Shareholders due to the Lending/Returning of Shares in the Relending Financing of Funds and
Securities
□ Applicable √Not Applicable
4. 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. First Quarter Report 2024
IV. Financial Statements
i. Financial statements
1. Consolidated balance sheet
Prepared by ADAMA Ltd.
31 March 2024
Unit: RMB’000
March 31, December 31, March 31, December 31,
Item Item
2024 2023 2024 2023
Current assets: Current liabilities:
Cash at bank and on hand 3,710,053 4,881,328 Short-term loans 5,299,947 5,733,522
Financial assets held for
1,873 1,912 Derivative financial liabilities 325,092 607,787
trading
Derivative financial assets 128,562 850,137 Bills payable 516,770 613,507
Bills receivable 63,500 86,303 Accounts payable 4,833,578 4,649,733
Accounts receivable 9,088,939 8,146,677 Contract liabilities 1,314,153 1,514,365
Receivables financing 117,203 123,050 Employee benefits payable 857,844 847,039
Prepayments 309,572 305,883 Taxes payable 561,490 407,230
Other receivables 1,635,491 1,054,302 Other payables 1,521,335 1,469,319
Non-current liabilities due
Inventories 12,823,850 13,088,757 2,068,629 2,297,888
within one year
Other current assets 1,076,415 1,083,714 Other current liabilities 731,913 753,827
Total current assets 28,955,458 29,622,063 Total current liabilities 18,030,751 18,894,217
Non-current assets: Non-current liabilities:
Long-term receivables 63,039 68,752 Long-term loans 3,374,215 2,885,939
Long-term equity investments 32,133 31,474 Debentures payable 6,848,469 6,919,423
Other equity investments 132,245 132,018 Lease liabilities 473,192 495,459
Investment properties 21,736 22,145 Long-term accounts payable 96,471 97,840
Long-term employee benefits
Fixed assets 9,850,569 10,040,113 686,613 671,530
payables
Construction in progress 2,682,814 2,507,328 Provisions 298,188 299,251
Right-of-use assets 606,940 625,235 Deferred tax liabilities 293,727 297,103
Intangible assets 5,256,827 5,318,281 Other non-current liabilities 2,938,290 2,920,566
Goodwill 5,009,990 5,001,538 Total non-current liabilities 15,009,165 14,587,111
Deferred tax assets 1,585,389 1,601,641 Total liabilities 33,039,916 33,481,328
Other non-current assets 505,597 435,215 Shareholders’ equity:
Total non-current assets 25,747,279 25,783,740 Share capital 2,329,812 2,329,812
Total assets 54,702,737 55,405,803 Capital reserves 12,950,464 12,950,464
Other comprehensive
1,647,909 1,675,896
income
Special reserves 10,533 16,595
Surplus reserves 273,617 273,617
Retained earnings 4,450,486 4,678,091
Total equity attributed to the
21,662,821 21,924,475
shareholders of the company
Non-controlling interests - -
Total equity 21,662,821 21,924,475
Total liabilities and equity 54,702,737 55,405,803
Steve Hawkins Efrat Nagar Efrat Nagar
Legal representative Chief of the accounting work Chief of the accounting organ
11
ADAMA Ltd. First Quarter Report 2024
2. Consolidated income statement
Unit: RMB’000
Item January-March, 2024 January-March, 2023
1. Total operating Income 7,508,899 8,610,576
Less: Cost of sales 5,688,352 6,492,832
Taxes and surcharges 24,598 25,849
Selling and Distribution expenses 1,080,738 1,065,293
General and Administrative expenses 280,258 266,369
Research and Development expenses 111,852 134,902
Financial expenses 367,164 206,712
Including: Interest expense 297,099 267,287
Interest income 64,943 43,225
Add: Investment income, net 4,283 3,537
Including: Income from investment in associates
4,283 3,537
and joint ventures
Loss from changes in fair value (148,935) (352,126)
Credit impairment reversal (losses) (3,461) 8,639
Asset Impairment reversal (losses) 11,408 (41,939)
Gain from disposal of assets 1,160 21,825
2. Operating profit (loss) (179,608) 58,555
Add: Non-operating income 33,200 20,237
Less: Non-operating expense 4,885 7,681
3. Total profit (loss) (151,293) 71,111
Less: income tax expense (income) 76,312 (12,162)
4. Net profit (loss) (227,605) 83,273
4.1 Classified by nature of operations
4.1.1 Continuing operations (227,605) 83,273
4.2 Classified by ownership
4.2.1 Shareholders of the Company (227,605) 83,273
4.2.2 Non-controlling interests -
5. Other comprehensive income net of tax (27,987) (210,116)
Other comprehensive income net of tax attributable to shareholders
(27,987) (210,116)
of the Company
5.1 Items that will not be reclassified into profit/loss (3,377) 7,936
5.1.1 Re-measurement of defined benefit plan liability (3,377) 7,936
5.2 Items that were or will be reclassified to profit or loss (24,610) (218,052)
5.2.1 Effective portion of gains or loss of cash flow hedge 13,485 (9,973)
5.2.2 Translation differences of foreign financial statements (38,095) (208,079)
Other comprehensive income net of tax attributable to Non-controlling
- -
interests
6. Total comprehensive income for the period (255,592) (126,843)
Total comprehensive income attributable to shareholders
(255,592) (126,843)
of the Company
Total comprehensive income attributable to Non-controlling interests - -
7. Earnings (loss) per share
7.1 Basic earnings (loss) per share (RMB/ share) (0.098) 0.036
7.2 Diluted earnings (loss) per share (RMB/ share) N/A N/A
Steve Hawkins Efrat Nagar Efrat Nagar
Legal representative Chief of the accounting work Chief of the accounting organ
12
ADAMA Ltd. First Quarter Report 2024
3. Consolidated cash flow statement
Unit: RMB’000
Item January-March, 2024 January-March, 2023
1. Cash flows from operating activities:
Cash received from sale of goods and rendering of services 5,034,379 6,839,010
Refund of taxes and surcharges 47,216 42,714
Cash received relating to other operating activities 208,380 109,137
Sub-total of cash inflows from operating activities 5,289,975 6,990,861
Cash paid for goods and services 4,151,625 7,879,994
Cash paid to and on behalf of employees 1,020,430 1,038,318
Payments of taxes and surcharges 111,233 170,562
Cash paid relating to other operating activities 741,849 807,155
Sub-total of cash outflows from operating activities 6,025,137 9,896,029
Net cash flows from operating activities (735,162) (2,905,168)
2. Cash flows from investing activities:
Cash receipts from investment income - 1,710
Cash received from disposal of investments 134,175 46,894
Net cash received from disposal of fixed assets, intangible assets
3,703 26,060
and other long-term assets
Cash received for other investing activities - 14,477
Sub-total of cash inflows from investing activities 137,878 89,141
Cash paid to acquire fixed assets, intangible assets and other
468,399 580,045
long-term assets
Net cash paid to acquire subsidiaries or other
- 148,460
business units
Cash paid for other investing activities 142,429 -
Sub-total of cash outflows from investing activities 610,828 728,505
Net cash flows from investing activities (472,950) (639,364)
3. Cash flows from financing activities:
Cash received from borrowings 863,075 3,594,576
Cash received relating to other financing activities 765,459 18,569
Sub-total of cash inflows from financing activities 1,628,534 3,613,145
Cash repayment of borrowings 1,382,652 199,851
Cash payment for dividends, profit distributions or interest 167,805 179,425
Including: dividends paid to non-controlling interest - 13,684
Cash paid relating to other financing activities 61,284 383,092
Sub-total of cash outflows from financing activities 1,611,741 762,368
Net cash flows from financing activities 16,793 2,850,777
4. Effect of foreign exchange rate changes on cash and cash
12,915 (52,929)
equivalents
5. Net decrease in cash and cash equivalents (1,178,404) (746,684)
Add: Cash and cash equivalents at the beginning of the period 4,857,358 4,225,253
6. Cash and cash equivalents at the end of the period 3,678,954 3,478,569
13
ADAMA Ltd. First Quarter Report 2024
ii. Auditor’s report
Is this Report audited?
□ Yes √ No
This Report is unaudited.
ADAMA Ltd.
Board of Directors
April 26, 2024
14
