ADAMA Ltd. Full Content of the Third Quarter Report 2019
ADAMA LTD.
THIRD QUARTER REPORT 2019
ADAMA Ltd. is one of the world's leading crop protection companies. We strive to Create
Simplicity in Agriculture - offering farmers effective products and services that simplify their lives
and help them grow. With one of the most comprehensive and diversified portfolios of differentiated,
quality products, our 7,000 strong team reaches farmers in over 100 countries, providing them with
solutions to control weeds, insects and disease, and improve their yields.
Please see important additional information and further details included in the Annex.
October 2019
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ADAMA Ltd. Full Content of the Third Quarter Report 2019
Section I - Important Notice
The Company’s Board of Directors, Board of Supervisors, directors, supervisors and executive managers
confirm that the content of this report is true, accurate and complete and contains no false statement,
misleading presentation or material omissions, and assume joint and several legal liability arising therefrom.
Chen Lichtenstein, the person in charge of the Company as well as its legal representative, and Aviram Lahav,
the person leading the accounting function (Chief Financial Officer), hereby state and ensure the truthfulness,
accuracy and completeness of the Financial Report.
All the Company’s directors attended the board meeting for the review of this Report.
This Report has been prepared in both Chinese and English. Should there be any discrepancies between the
two versions, the Chinese version shall prevail.
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ADAMA Ltd. Full Content of the Third Quarter Report 2019
Section II - Financial Highlights & Shareholder Changes
I. Highlights of accounting data and financial indicators
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
The reason for the retroactive adjustments or restatements: Business combination under common control.
Unit: RMB’000
End of last year +/- (%)
End of Reporting Period
Before adjustment After adjustment After adjustment
Total assets 46,046,978 42,812,505 44,135,063 4.33%
Net assets attributable to
shareholders of the Company 23,222,179 22,280,126 22,744,862 2.10%
January - September,
July - September, 2019 YoY +/- (%) YoY +/- (%)
2019
Operating revenues 6,666,043 6.01% 20,282,075 1.78%
Net profit attributable to
shareholders of the Company 206,095 (6.62%) 794,733 (69.55%)
Net profit attributable to
shareholders of the Company
excluding non-recurring profit
and loss 192,235 9.40% 622,505 (35.56%)
Net cash flow from operating
activities -- -- 94,261 (93.93%)
Basic EPS (RMB/share) 0.0842 (6.65%) 0.3248 (69.55%)
Diluted EPS (RMB/share) N/A N/A N/A N/A
Weighted average return on
net assets 0.87% 0.87% 3.46% (8.07%)
Please see key additional information and further details included in the Annex.
Non-Recurring profit/loss
√ Applicable □ Not applicable
Unit: RMB’000
Item January - September, 2019 Note
Gains/losses on the disposal of non-current assets (including the
121,403
offset part of asset impairment provisions)
Government grants recognized through profit or loss (excluding
government grants closely related to business of the Company
21,086
and given at a fixed quota or amount in accordance with
government’s uniform standards)
Profit or loss of subsidiaries generated before combination date of
38,027
a business combination under common control
Recovery or reversal of provision for bad debts which is assessed
20,349
individually during the years
Other non-operating income and expenses other than the above (7,631)
Less: Income tax effects 21,006
Total 172,228
Explanation of why the Company classified an item as exceptional profit/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public - Exceptional Profit and Loss,
or reclassified any exceptional profit/loss item given as an example in the said explanatory announcement to recurrent profit/loss
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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ADAMA Ltd. Full Content of the Third Quarter Report 2019
II. Total number of shareholders and shareholdings of top 10 shareholders at the period-end
1. Total number of ordinary shareholders and preference shareholders who have re-attained their voting rights, and
shareholdings of top 10 shareholders at the period-end
Unit: share
49,866 (including 34,042
Total number of ordinary shareholders at the end of the Total number of preference shareholders who had resumed their
A shareholders and 15,824 0
Reporting Period voting right at the end of the Reporting Period (if any)
B shareholders)
Shareholdings of top 10 shareholders
Number of Number of restricted Pledged or frozen shares
Name of shareholder Nature of shareholder Shareholding percentage
shares held shares held Status Number
China National
State-owned legal
Agrochemical Corporation 74.02% 1,810,883,039 1,810,883,039 - -
person
(CNAC)
Jingzhou Sanonda Holding State-owned legal
4.89% 119,687,202 - - -
Co., Ltd. person
China Cinda Asset State-owned legal
1.37% 33,557,046 - - -
Management Co., Ltd. person
China Structural Reform State-owned legal
1.37% 33,557,046 - - -
Fund Co., Ltd. person
Portfolio No.503 of
National Social Security Others 0.55% 13,499,813 - - -
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
Zhu Shenglan Domestic natural person 0.42% 10,207,100 - - -
Industrial Bank Co., Ltd,
Mixed Securities Investment
Others 0.33% 8,053,736 - - -
Fund, Aegon-Industrial
Trend Investment (LOF)
Caitong Fund Fuchun
Chuangyi Private Placement
Others 0.19% 4,697,986 - - -
No.3 Asset Management
Plan
GUOTAI JUNAN
SECURITIES(HONGKONG Foreign legal person 0.18% 4,355,572 - - -
) LIMITED
Shareholdings of top 10 non-restricted shareholders
Number of non-restricted shares held Type of shares
Name of shareholder
at the period-end Type Number
Jingzhou Sanonda Holding Co., Ltd. 119,687,202 RMB ordinary share 119,687,202
China Cinda Asset Management Co., Ltd. 33,557,046 RMB ordinary share 33,557,046
China Structural Reform Fund Co., Ltd. 33,557,046 RMB ordinary share 33,557,046
Portfolio No.503 of National Social Security Fund 13,499,813 RMB ordinary share 13,499,813
CCB Principal-ICBC-Avic Trust, Trust Plan of Pooled Funds of CCB Principal
12,885,906 RMB ordinary share 12,885,906
Private Placement Investment, Tianqi (2016) No. 293 of Avic Trust
Zhu Shenglan 10,207,100 RMB ordinary share 10,207,100
Industrial Bank Co., Ltd, Mixed Securities Investment Fund, Aegon-Industrial
8,053,736 RMB ordinary share 8,053,736
Trend Investment (LOF)
Caitong Fund Fuchun Chuangyi Private Placement No.3 Asset Management
4,697,986 RMB ordinary share 4,697,986
Plan
Domestically listed
GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED 4,355,572 4,355,572
foreign share
Qichun County State-owned Assets Administration 4,169,266 RMB ordinary share 4,169,266
Jingzhou Sanonda Holdings Co., Ltd. and CNAC are related parties, and are acting-in-concert parties as
Related or act-in-concert parties among the prescribed in the Administrative Methods for Acquisition of Listed Companies. Sanonda Holding is a
shareholders above subsidiary of CNAC. It is unknown whether the other shareholders are related parties or acting-in-concert
parties as prescribed in the Administrative Methods for Acquisition of Listed Companies.
Shareholder Zhu Shenglan held 3,767,200 shares of the Company through a credit collateral securities trading
Top 10 ordinary shareholders conducting
account and held 6,439,900 shares of the Company through a common securities account, and therefore held
securities margin trading (if any)
10,207,100 shares of the Company in aggregate.
Did any of the top 10 ordinary shareholders or the top 10 non-restricted ordinary shareholders of the Company conduct any agreed
securities buyback during the Reporting Period?
□ Yes √ No
No such cases in the Reporting Period.
2. Total number of preference shareholders and shareholdings of the top 10 of such at the period-end
□ Applicable √ Not applicable
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ADAMA Ltd. Full Content of the Third Quarter Report 2019
Section III - Significant Events
I. Changes in main accounting statement items and financial indicators in the Reporting Period, as
well as reasons for the changes
√ Applicable □ Not applicable
January - Same period January - Same period
September, last year September, last year
+/-% +/-%
2019 (000’RMB) 2019 (000’USD)
(000’RMB) (Restated) (000’USD) (Restated)
Operating income (Revenues) 20,282,075 19,927,452 1.78% 2,961,572 3,066,842 (3.43%)
Cost of goods sold 13,607,433 13,331,039 2.07% 1,986,377 2,050,927 (3.15%)
Gross Profits 6,674,642 6,596,413 1.19% 975,195 1,015,915 (4.01%)
Sales & Marketing expenses 3,664,412 3,401,616 7.73% 535,288 522,793 2.39%
General & Administrative expenses 902,506 735,794 22.66% 131,885 113,303 16.40%
R&D expenses 317,642 262,580 20.97% 46,357 40,180 15.37%
Financial Expenses 1,503,130 661,660 127.18% 219,199 100,733 117.60%
Gain (loss) from Changes in Fair
1,157,695 (344,673) 435.88% 170,076 (53,221) 419.57%
Value
Investment Income (loss) (467,057) 355,812 (231.27%) (69,534) 53,838 (229.15%)
Total Net Financial Expenses and
812,492 650,521 24.90% 118,657 100,116 18.52%
Investment Income
Total profits 962,140 3,407,520 (71.76%) 140,951 532,852 (73.55%)
Income tax expenses 167,407 797,637 (79.01%) 24,537 124,745 (80.33%)
Net income 794,733 2,609,883 (69.55%) 116,414 408,108 (71.47%)
EBITDA 3,524,465 5,501,713 (35.94%) 515,069 854,418 (39.72%)
Q3 2018 Q3 2019 Q3 2018
Q3 2019
(000’RMB) +/-% (000’USD) (000’USD) +/-%
(000’RMB)
(Restated) (Restated)
Operating income (Revenues) 6,666,043 6,288,379 6.01% 953,422 925,156 3.06%
Cost of goods sold 4,584,191 4,288,856 6.89% 655,666 631,105 3.89%
Gross Profits 2,081,852 1,999,523 4.12% 297,756 294,051 1.26%
Sales & Marketing expenses 1,164,638 1,144,625 1.75% 166,573 168,399 (1.08%)
General & Administrative expenses 274,247 211,973 29.38% 39,224 31,046 26.34%
R&D expenses 106,943 106,305 0.60% 15,295 15,640 (2.21%)
Financial Expenses 564,934 314,106 79.85% 80,798 46,251 74.69%
Gain (loss) from Changes in Fair
273,560 (101,297) 370.06% 39,126 (14,903) 362.54%
Value
Investment Income (loss) 47,386 208,759 (77.30%) 6,777 30,713 (77.93%)
Total Net Financial Expenses and
243,988 206,644 18.07% 34,895 30,441 14.63%
Investment Income
Total profits 232,965 280,795 (17.03%) 33,320 41,293 (19.31%)
Income tax expenses 26,870 60,079 (55.28%) 3,845 8,832 (56.47%)
Net income 206,095 220,716 (6.62%) 29,475 32,461 (9.20%)
EBITDA 1,063,546 1,015,502 4.73% 152,113 149,424 1.80%
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ADAMA Ltd. Full Content of the Third Quarter Report 2019
Analysis of Financial Highlights
(1) Revenues
Revenues in the third quarter grew compared to the same period last year in US dollar terms, and in RMB terms.
Nine-month sales were somewhat lower compared to the parallel period last year, and up in RMB terms,
overcoming the significant headwinds encountered throughout the period. This growth was achieved despite the
impact of the disruption at the Jingzhou old site, which constrains the supply of high-demand products in many
geographies as it continues its gradual ramp-up of operations. The disruption at the site constrained third quarter
sales by $55 million and nine-month sales by $162 million.
The third quarter saw a partial recovery in North America late in the season following the severe weather
challenges seen in the first half of the year, with noteworthy performances in both the US and Canada. The
Company also grew strongly in Europe in the third quarter, following a challenging first half of the year, despite
the drought in the region, as well as in Brazil and the rest of Latin America, where its portfolio of differentiated
products is driving increasing market penetration. In China, ADAMA continues to grow sales of its
differentiated, formulated and branded products at significant double-digit rates.
Supportive demand facilitated further price increases in the quarter of an average 2% across all regions.
Regional Sales Performance
Q3 2019 Q3 2018 Change 9M 2019 9M 2018 Change
$m $m USD $m $m USD
Europe 188 168 +12.1% 816 870 -6.2%
North America 160 124 +28.8% 560 530 +5.5%
Latin America 302 277 +9.1% 657 587 +11.9%
Asia Pacific 138 131 +5.3% 496 487 +1.9%
Of which China 76 69 +9.8% 255 241 +5.6%
India, Middle East & Africa 166 173 -4.0% 432 443 -2.4%
Total 953 872 +9.3% 2,962 2,918 +1.5%
Note: 2018 sales by region in the table above, and as described in the regional explanations below, are as previously reported, and
not as restated to include the business combination under common control of Anpon.
Europe: The strong performance in the quarter was driven by business growth, although only partially
recovering from the supply-related challenges in the first-half of the year, and despite a severe drought in the
region which delayed herbicide application in cereals, reduced disease pressure in grapes and citrus, lowering
consumption, and reduced oilseed rape planting areas.
In Northern Europe, sales grew strongly in the quarter driven by Germany and the Baltic countries. The
Company restrains sales in Ukraine where liquidity remains challenging for distributors.
The Company saw robust growth in South Europe in the quarter with continued market share gains. Noteworthy
performances were recorded in France, which experienced its second strongest harvest on record, as well as Italy
and Iberia. Strong demand for insecticides compensated for weak disease pressure in grapes and citrus.
The Company obtained a number of new registrations for differentiated products, including FOLPAN ,
ADAMA’s proprietary fungicide treating key resistant diseases in cereals in Germany, PITCHER, a
differentiated mixture fungicide for flower-bulbs in the Netherlands and ZAKEO EXTRA, a dual-action, wide
spectrum fungicide in Greece.
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ADAMA Ltd. Full Content of the Third Quarter Report 2019
North America: Sales in the region grew significantly in the quarter through a combination of robust organic
business growth, increased prices and joiners.
The Company recorded strong growth in the quarter in both the US and Canada, partially recovering from the
first-half floodings while benefiting from price increases in key backward-integrated products.
Latin America: Latin America delivered strong business growth in key countries in the face of a severe drought
across the region, alongside continued price increases, which more than offset the impact of constrained supply.
The Company continues to grow strongly in Brazil despite a delayed planting season in soybean and corn crops,
driven by its differentiated product portfolio and key recently launched products. These include flagship product
CRONNOS, the triple-action fungicide for soybean rust which is performing strongly in its first year since
launch, GALIL, a differentiated combination insecticide and TRIVOR, a dual-action insecticide for rapid and
extended control of sucking pests.
Noteworthy performances were recorded in the quarter in Colombia, Bolivia, Mexico and Peru, while over the
nine-month period, the leading contributors to growth were Peru and Colombia.
During the quarter, ADAMA launched several new products, including BREVIS, a differentiated solution to
optimize fruit load and size in apples in Argentina and TRIVOR, in Colombia. The Company obtained a
number of new registrations for differentiated products, including EXPERTGROW, a range of biostimulants
promoting the growth and development of multiple fruit, vegetables and flower crops in Peru, Paraguay and
Bolivia.
Asia Pacific: Sales in the region grew, driven by business growth alongside continued price increases, while
being affected by constrained supply of products of the Jingzhou old site.
In China, ADAMA continues to see strong demand for its differentiated, formulated and branded products, with
sales growth of more than 25% in both the quarter and the first nine months, excluding those from the Jingzhou
old site. In the first nine months of this year, ADAMA has launched 12 new products in China, driving this
strong growth. Two new registrations of the NIMITZ suite of products were obtained in the quarter. Anpon
delivered a solid performance.
The third quarter saw robust growth in Japan and a resilient performance in Australia, despite the continued
severe drought in the country which is significantly reducing summer crops. These compensated for the
weather-related challenges seen throughout South-East Asia.
During the quarter, the Company obtained new registrations in Australia, including SOPRANO, a cereal
fungicide, and SOMBRERO, an insecticide seed dressing for a wide range of crops.
India, Middle East and Africa: In India, the Company benefited from the start of the monsoon rains, but was
impacted by shortages of key products produced at the Jingzhou old site. ADAMA saw noteworthy sales in the
country of SHAMIR, the novel dual-action combination fungicide for protection of multiple fruit and vegetable
crops. Over the nine-month period, India and Turkey delivered noteworthy performance.
(2) Gross Profit:
The somewhat lower gross margins reflect the impact of the Jingzhou old site disruption which constrained sales
of backward-integrated products in high demand, as well as higher procurement costs and softer currencies,
partially offset by higher pricing aimed at passing on the impact of the higher procurement costs, as well as an
improvement in product mix in the quarter. The Jingzhou site disruption reduced third quarter gross profit by $24
million and nine-month gross profit by $64 million.
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ADAMA Ltd. Full Content of the Third Quarter Report 2019
(3) Operating Expenses:
Sales and Marketing expenses: Sales and Marketing expenses reflect the inclusion of the joiner’s expenses, as
well as the amortization of the written-up value of assets transferred from Syngenta in connection with the 2017
ChemChina-Syngenta transaction (see additional details below). These impacts were partially offset by ongoing
strong expense containment.
In recent years, the Company conducted various corporate development activities, including mergers and
acquisitions, which resulted in the inclusion within its sales and marketing expenses of various one-time or
non-cash or non-operational items affecting the Company’s reported numbers, mainly as follows:
Amortization of legacy Purchase Price Allocation (PPA) of 2011 acquisition of Adama Agricultural
Solutions Ltd., a wholly-owned subsidiary of the Company (“Solutions”) (non-cash): Under PRC GAAP,
since the first combined reporting in Q3 2017 following the combination, the Company has inherited the
historical “legacy” amortization charge that ChemChina previously was incurring in respect of its acquisition
of Solutions in 2011. This amortization is done in a linear manner on a quarterly basis, most of which will be
fully amortized by the end of 2020. Its reported financial impact (affecting the Sales & Marketing expenses) in
the first nine months is USD 28.6 million, net of tax.
Amortization of Transfer assets received and written-up due to 2017 ChemChina-Syngenta transaction
(non-cash): 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. Its reported financial impact (affecting the Sales & Marketing
expenses) in the first nine months of 2019 is USD 27.5 million.
Amortization of acquisition PPA (non-cash): The amortization of non-cash intangible assets created in the
course of acquisitions, and which has no impact on the ongoing performance of the companies acquired. Its
reported financial impact (affecting Sales & Marketing expenses) in the first nine months of 2019 is USD 4.2
million, net of tax.
General and Administrative expenses: General and Administrative expenses include the recording of Jingzhou
old-site related idleness costs of $8 million in the third quarter and $29 million in the nine-month period as it
advances its gradual ramp-up in production, as well as the relevant expenses of the joiner, partially offset by the
strong containment of expenses.
(3) 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 USD 219 million for the first nine months
of 2019 compared with USD 101 million for the corresponding period in 2018. The higher level in the first nine
months compared with the same period last year reflects mainly (i) the adverse foreign exchange impact on
balance sheet positions (before hedging), (ii) higher interest payments, and (iii) offset in the third quarter by the
reduction in financing costs on the ILS-denominated, CPI-linked bonds due to a lower CPI.
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ADAMA Ltd. Full Content of the Third Quarter Report 2019
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. Net gains/losses from hedging of those positions, are recorded in “Gains/Losses from Changes in
Fair Value”, and are then transferred to “Investment Income” upon realization. The combined impact of
Gains/Losses from Changes in Fair Value and Investment Income is a net benefit of USD 101 million for the
first nine months of 2019 compared with a negligible net negative impact for the parallel period in 2018.
The aggregate of Financial Expenses, Gains/Losses from Changes in Fair Value and Investment Income
(hereinafter as “Total Net Financial Expenses and Investment Income”), which more comprehensively reflects
the financial expenses of the Company in supporting its main business and protecting its monetary
assets/liabilities, amounts to USD 119 million for the first nine months of 2019 compared with USD 100 million
for the parallel period in 2018. This moderate increase in reflects mainly the net, combined impact of (i) the higher
hedging costs due to global currency volatility, (ii) higher interest payments, (iii) the net foreign exchange impact
on balance sheet positions which was largely offset by the benefit from hedging transactions and (iv) in the third
quarter, the reduction in financing costs on the Shekel-denominated, CPI-linked bonds, due to a reduction in the
CPI. The lower expenses in the corresponding periods last year reflect the benefit of foreign exchange income
related to balance sheet positions.
(4) Income Tax Expenses
The lower income tax expenses in the quarter reflect the impact of the Jingzhou old site disruption, which reduced
taxable income, partially offset by a non-cash impact due to the devaluation of the Brazilian Real over the quarter,
which reduced the value of local currency-denominated non-monetary assets. The lower tax expenses over the
nine-month period were largely due to the lower taxable income mainly resulting from the impact from the
Jingzhou old site disruption, as well as changes in exchange rates against the US dollar that affected the value of
local-currency denominated balance sheet items. The higher tax expenses in the corresponding period last year
reflect the one-time capital gain from Divestment of registrations due to 2017 ChemChina-Syngenta transaction.
Note: In estimating the impact from the Jingzhou old site disruption, the lost sales and gross profit are calculated as the
difference in sales and gross profit earned on the affected products between the relevant periods in 2019 and their
comparative periods in 2018. Related operating expenses include the additional idleness costs recorded in this year’s
periods compared to the parallel period last year, as well as an assumed saving of 2.5% of affected sales in respect of
incremental Sales & Marketing expenses. Financing costs were assumed not to be impacted. An effective tax rate of 20%
was assumed in calculating the after-tax impact.
Corporate development
On October 30, 2019 the Company signed an agreement for the acquisition of AgroKlinge, a leading Peruvian
crop protection company for a non-material amount for the Company. This acquisition will allow ADAMA to
further improve and expand its business in Peru, broadening its portfolio, creating a leading commercial platform
throughout the country and enhancing its access to large scale industrial farmers.
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 continues to advance the
gradual ramp-up of production at the site. The site was visited during the third quarter by the Ecological
Protection Supervision Team of the central government, as part of its inspections of the ChemChina group and in
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ADAMA Ltd. Full Content of the Third Quarter Report 2019
the context of strengthening ongoing nationwide environmental focus. As part of its China sites’ three-year
relocation and upgrade process, due to conclude by the end of next year, the Company continues to work with all
relevant authorities to bring the site to best-in-class safety and environmental standards.
In a significant milestone in this upgrade and relocation process, ADAMA obtained a new, expanded EIA
(Environmental Impact Assessment) permit for the new Jingzhou site, allowing increased production of Acephate,
DMPAT and other backward-integrated products. This will ensure the Company’s ability to strengthen the
ACEMAIN franchise in key markets, including India, Brazil, US and China, leveraging its strong cost position
and site stability.
By end of 2020, ADAMA is aiming to complete most of its relocations at both Jingzhou and Huai’An, vacate the
old sites, and be operational with improved cost and efficiencies at its new sites. The transformed new sites are
designed to be more profitable, and ready to accommodate additional new molecules emerging from the
Company’s strong development pipeline.
Unit: RMB’000
Assets and liabilities September 30, December 31, +/- Main reason for change
2019 2018 (%)
Cash at bank and on hand 4,579,346 6,400,190 (28%)
Due to the Company’s robust performance in Brazil in the
Accounts receivable 7,345,260 6,573,100 12%
first nine months
Due to the higher procurement costs, changes in the sales
mix due to the volatile weather in many regions,
Inventories 10,508,640 9,433,876 11%
proactively-constrained sales due to credit restraint in
Eastern Europe, as well as the first-time inclusion of joiner
Right of use assets 549,588 - 100% Adoption of ASBE-21
Mainly due to increase of short-term credits from banks to
Short term loans 1,558,465 1,122,774 39% finance the increase in the needs of working capital and the
increased investments in the period
Bills payable 215,709 445,533 (52%) Mainly due to Jingzhou old site disruption
Taxes payable 424,381 616,780 (31%) Payment of income taxes
Mainly increase in liabilities in respect of securitization
Other payables 1,646,187 1,197,579 37%
transaction
Non-current liabilities due Mainly increase in current portion due to adoption of
547,668 301,814 81%
within one year ASBE-21 – Leases
Mainly due to change of the terms of a put option to
Other current liabilities 349,861 578,184 (39%)
holders of non-controlling interests
Mainly due to increase of long-term loans from banks in
Long-term loans 997,538 235,819 323% order to finance acquisitions and other investments and
due to the increase in the working capital in the period
Lease liabilities 413,418 - 100% Adoption of ASBE-21
Other non-current Mainly due to change of the terms of a put option to
416,790 199,930 108%
liabilities holders of non-controlling interests
II. Progress on significant events, as well as the influence and solutions
□ Applicable √ Not applicable
Status of share buyback
□Applicable√Not applicable
Status of share buyback in the way of centralized bidding
□Applicable√Not applicable
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ADAMA Ltd. Full Content of the Third Quarter Report 2019
III. None completion of Commitments that should have been completed in the reporting period by the
Company, actual controller, shareholders, related parties, acquirer, and other committed parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV. Securities investment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
V. Wealth management entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI. Investment in derivative financial instruments
√ Applicable □ Not applicable
Unit: RMB’000
Amount Percentage of
Investment Amount sold Gain/loss
The party that Relation Related party Initial purchased Impairment Investment investment
Starting Expiring amount at during the during the
operates the with the transaction or Type investment during the accrued (if amount at end amount divided by
date date beginning of reporting reporting
investment Company not? amount reporting any) of the period net asset at end of
the period period period
period the period
Banks No No Option 3,362,968 25/3/2019 26/2/2020 3,362,968 2,127,756 -3,720,452 No 1,770,272 7.63% 249,366
Banks No No Forward 11,634,236 28/6/2019 6/3/2020 11,634,236 32,329,857 -28,499,029 No 15,465,064 66.64% 581,854
Total 14,997,204 -- -- 14,997,204 34,457,613 -32,219,481 17,235,336 74.27% 831,220
Source of fund for the investment Internal
litigation-related situations (if applicable) N/A
Date of disclosure of Board approval (if any) December 30, 2017
Date of disclosure of Shareholders’ approval (if any) N/A
The aforesaid refers to short term hedging currency transactions made with banks.
The Group’s transactions are not traded in the market. The Transactions are between the applicable company in the Group and the applicable bank until
the expiration date of the transaction, therefore no market risk is involved.
Regarding credit and liquidity risk, the Group is working with large and substantial banks only and with some of them the Group has ISDA agreements.
As to operational risk, the Group is working with relevant software, which is its back office for all transactions.
No legal risk is involved.
Risk and control analysis for the reporting period The actions taken in order to further reduce risks are:
(including but not limited to market risk, liquidity
The relevant subsidiaries have specific guidelines, under the Group’s policy, which were approved by the subsidiaries' financial statements
risk, credit risk, operational risk, legal risk, etc.)
committee of the board, which specifies, inter alia, the hedging policy, the persons that have the authorization to deal with hedging, the tools, ranges
etc. The only subsidiary that has hedging positions in the Group in the period was Solutions and its subsidiaries.
The relevant subsidiaries apply management designed procedures and controls, which among other things, monitor the working process and the
controls of the hedging transactions and are quarterly reviewed and annually audited.
The controllers of the relevant subsidiaries are involved in the process and are monitoring the hedging accounting treatment.
Every 2-3 years the internal audit of the relevant subsidiaries’ department is auditing the entire procedure.
Market price or fair value change of investments The aforesaid refers to short time hedging currency transactions made by the relevant subsidiary with banks.
during the reporting period. Segregation of duties as follows:
Specific methodology and assumptions should be For the fair value evaluation, the relevant subsidiary is usually using external experts. The relevant subsidiary hedges currencies only; the relevant
disclosed in the analysis of fair value of the transactions are simple (Options and forwards) for short terms. For fair value methodology see section X of this report, note IX. Fair Value. The exchange
investments rates are provided by the accounting department of the relevant subsidiary and all other parameters are provided by the experts.
Explanation for any significant changes in
accounting policies and principles, compared with N/A
last reporting period
The derivative investments carried by the Company are for hedging and narrowing down the risk of market fluctuations. The investments respond to the
Independent Directors’ opinion on the investment in
Company’s routine business demands and are in accordance with the relevant laws and regulations. Additionally, the Company has adopted Currency Risk
derivative financial instruments and related risk
Hedging Policy to strengthen the risk management and control which benefit the Company’s ability to protect against market risk. The derivative
controls
investments do not harm the interests of the Company and its shareholders.
VII. Visits paid to the Company for purposes of research, communication, interview, etc. during the
Reporting Period
√ Applicable □ Not applicable
Date of visit Way of visit Type of visitor About
Global industry review and outlook. Introduced the
July 8 to 9, 2019 On Site Research Institutional Investors situation of the Company's main markets and the
registrations.
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ADAMA Ltd. Full Content of the Third Quarter Report 2019
Date of visit Way of visit Type of visitor About
Introduced the Company's overall situation and
August 13, 2019 Call (One to One) Institutional Investor
business development.
Communication on the Q2 performances of the
August 21, 2019 Call (One to Many) Institutional Investors
Company.
Communication on the Q2 performances of the
September 3, 2019 Roadshow (One to Many) Institutional Investors
Company.
Introduced the Company's overall situation and
September 18, 2019 On Site Research Institutional Investors
business development.
VIII. Illegal provision of guarantees for external parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX. Utilization of the Company’s capital by the controlling shareholder or its related parties for
non-operating purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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ADAMA Ltd. Full Content of the Third Quarter Report 2019
Section IV - Financial Statements
I. Financial statements
1. Consolidated balance sheet
Prepared by Adama Ltd.
30 September 2019
Unit: RMB’000
September 30, December 31, September 30, December 31,
Item Item
2019 2018 (Restated) 2019 2018 (Restated)
Current assets: Current liabilities:
Cash at bank and on hand 4,579,346 6,400,190 Short-term loans 1,558,465 1,122,774
Financial assets held for trading 32,860 46,095 Derivative financial liabilities 697,814 1,451,670
Derivative financial assets 887,316 517,726 Bills payable 215,709 445,533
Notes receivable 53,910 40,569 Accounts payable 3,893,560 4,627,936
Accounts receivable 7,345,260 6,573,100 Contract liabilities 982,837 848,402
Receivables financing 71,608 73,216 Employee benefits payable 901,398 944,175
Prepayments 318,263 410,506 Taxes payable 424,381 616,780
Other receivables 1,386,551 1,079,332 Other payables 1,646,187 1,197,579
Non-current liabilities due
Inventories 10,508,640 9,433,876 547,668 301,814
within one year
Non-current assets due within one
1 48 Other current liabilities 349,861 578,184
year
Other current assets 659,935 660,806 Total current liabilities 11,217,880 12,134,847
Total current assets 25,843,690 25,235,464 Non-current liabilities:
Non-current assets: Long-term loans 997,538 235,819
Long-term accounts receivable 177,452 157,600 Debentures payable 8,532,704 7,649,098
Long-term equity investments 136,161 108,350 Lease liabilities 413,418 N/A
Other equity investments 98,911 91,559 Long-term accounts payable 29,883 25,106
Long-term employee benefits
Investment property 3,852 4,094 719,474 620,646
payables
Fixed assets 7,243,932 7,263,866 Provisions 129,251 132,351
Construction in progress 622,421 487,204 Deferred tax liabilities 367,861 392,404
Right-of-use assets 549,588 N/A Other non-current liabilities 416,790 199,930
Intangible assets 5,811,965 5,741,962 Total non-current liabilities 11,606,919 9,255,354
Goodwill 4,422,687 4,085,945 Total liabilities 22,824,799 21,390,201
Deferred tax assets 782,034 741,737 Owners’ equity:
Other non-current assets 354,285 217,282 Share capital 2,446,554 2,446,554
Total non-current assets 20,203,288 18,899,599 Capital reserves 12,903,168 13,324,491
Total assets 46,046,978 44,135,063 Other comprehensive income 1,508,234 1,090,827
Special reserves 18,361 13,536
Surplus reserves 240,162 240,162
Retained earnings 6,105,700 5,629,292
Total owners’ equity 23,222,179 22,744,862
Total liabilities and owners’
46,046,978 44,135,063
equity
Legal representative: _______________ Chief of the accounting work: ____________Chief of the accounting organ: ____________
Chen Lichtenstein Aviram Lahav Aviram Lahav
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ADAMA Ltd. Full Content of the Third Quarter Report 2019
2. Balance sheet of the Company
Unit: RMB’000
Item September 30, 2019 December 31, 2018
Current Assets:
Cash at bank and on hand 1,509,485 2,058,253
Accounts receivable 313,755 692,199
Receivables financing 50,780 19,917
Prepayments 33,560 10,500
Other receivables 16,139 31,748
Inventories 82,307 147,975
Other current assets 9,623 1,343
Total current assets 2,015,649 2,961,935
Non-current assets:
Long-term equity investments 16,403,642 15,939,826
Other equity investments 86,059 80,119
Investment property 3,851 4,094
Fixed assets 914,742 1,012,674
Construction in progress 300,546 188,020
Right-of-use assets 505 N/A
Intangible assets 171,477 174,997
Deferred tax assets 102,474 48,103
Other non-current assets 130,613 54,060
Total non-current assets 18,113,909 17,501,893
Total assets 20,129,558 20,463,828
Current liabilities:
Short-term loans 100,000 20,000
Bills payables 82,165 209,700
Accounts payables 96,481 182,110
Contract liabilities 7,783 9,983
Employee benefits payable 25,334 25,758
Taxes payable 1,831 55,198
Other payables 207,272 187,762
Non-current liabilities due within one year 608 72,000
Total current liabilities 521,474 762,511
Non-current liabilities:
Long-term loans 90,000 -
Long-term employee benefits payables 97,704 100,144
Provisions 17,071 16,454
Other non-current liabilities 171,770 171,770
Total non-current liabilities 376,545 288,368
Total liabilities 898,019 1,050,879
Owners’ equity:
Share capital 2,446,554 2,446,554
Capital reserves 15,463,245 15,414,429
Other comprehensive income 41,668 43,167
Special reserves 15,213 11,564
Surplus reserves 240,162 240,162
Retained earnings 1,024,697 1,257,073
Total owners’ equity 19,231,539 19,412,949
Total liabilities and owners’ equity 20,129,558 20,463,828
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ADAMA Ltd. Full Content of the Third Quarter Report 2019
3. Consolidated income statement for the Reporting Period
Unit: RMB’000
July-September, 2018
Item July-September, 2019
(Restated)
1. Total operating Income 6,666,043 6,288,379
Less: Cost of sales 4,584,191 4,288,856
Taxes and surcharges 18,495 17,462
Selling and Distribution expenses 1,164,638 1,144,625
General and Administrative expenses 274,247 211,973
Research and Development expenses 106,943 106,305
Financial expenses 564,934 314,106
Including: Interest expense 196,172 132,180
Interest income 23,000 18,407
Add: Investment income, net 47,386 208,759
Including: Income from investment in associates
and joint ventures 944 992
Gain (loss) from changes in fair value 273,560 (101,297)
Credit impairment loss (23,376) (7,999)
Asset impairment loss (16,626) (19,345)
Gain (loss) from disposal of assets 5,890 (928)
2. Operating profit 239,429 284,242
Add: Non-operating income 3,022 1,855
Less: Non-operating expense 9,486 5,302
3. Total profit 232,965 280,795
Less: income tax expense 26,870 60,079
4. Net profit 206,095 220,716
5.1 Classified by nature of operations
5.1.1 Continuing operations 206,095 220,716
5.1.2 Discontinued operations - -
5.2 Classified by ownership
5.2.1 Shareholders of the Company 206,095 220,716
5.2.2 Non-controlling interests - -
5. Other comprehensive income net of tax 535,389 706,766
Other comprehensive income net of tax attributable to shareholders
of the Company
5.1 Items that will not be reclassified into profit/loss (29,628) (1,346)
5.1.1 Re-measurement of defined benefit plan liability (23,079) (1,346)
5.1.2 FV changes in other equity investment (6,549) -
5.2 Items that were or will be reclassified to profit or loss 565,017 708,112
5.2.1 Effective portion of gains or loss of cash flow hedge 120,790 7,607
5.2.2 Translation differences of foreign financial statements 444,227 700,505
6. Total comprehensive income for the period
Attributable to shareholders of the Company 741,484 927,482
7. Earnings per share
7.1 Basic earnings per share (RMB/ share) 0.0842 0.0902
7.2 Diluted earnings per share (RMB/ share) N/A N/A
For business combination under common control in the reporting period, net profit of the acquiree before the business combination
was 0 thousand RMB; net profit of the acquiree in the comparative period (July-September, 2018) was 41,252 thousand RMB.
Legal representative: _______________ Chief of the accounting work: ____________Chief of the accounting organ: ____________
Chen Lichtenstein Aviram Lahav Aviram Lahav
15
ADAMA Ltd. Full Content of the Third Quarter Report 2019
4. Income statement of the Company for the Reporting Period
Unit: RMB’000
Item July-September, 2019 July-September, 2018
1. Operating income 395,343 760,590
Less: Cost of sales 286,894 468,749
Taxes and surcharges 1,625 2,323
Selling and Distribution expenses 12,885 30,248
General and Administrative expenses 97,658 43,487
Research and Development expenses 16,362 23,433
Financial expenses (income) (13,275) (23,294)
Including: Interest expense 583 2,032
Interest income 6,439 6,061
Add: Investment income, net 2,583 -
Credit impairment loss 376 (1,781)
Asset Impairment loss (3,990) (401)
2. Operating profit (7,837) 213,462
Add: Non-operating income 25 -
Less: Non-operating expense 50 844
3. Total profit (7,862) 212,618
Less: Income tax expense (50,591) 43,648
4. Net profit 42,729 168,970
4.1 Continuing operations 42,729 168,970
4.2 Discontinued operations - -
5. Other comprehensive income net of tax (6,549) (68)
5.1 Items that will not be reclassified into profit/loss (6,549) (68)
5.1.1 Re-measurement of defined benefit plan liability - (68)
5.1.3 FV changes in other equity investment (6,549) -
5.2 Items that were or will be reclassified to profit or loss - -
6. Total comprehensive income for the period 36,180 168,902
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ADAMA Ltd. Full Content of the Third Quarter Report 2019
5. Consolidated income statement for the period from the year-beginning to the end of the Reporting Period
Unit: RMB’000
January-September, 2018
Item January-September, 2019
(Restated)
1. Total operating Income 20,282,075 19,927,452
Less: Cost of sales 13,607,433 13,331,039
Taxes and surcharges 64,721 78,010
Selling and Distribution expenses 3,664,412 3,401,616
General and Administrative expenses 902,506 735,794
Research and Development expenses 317,642 262,580
Financial expenses: 1,503,130 661,660
Including: Interest expense 521,310 439,001
Interest income 64,534 59,872
Add: Investment income (loss), net (467,057) 355,812
Including: Income from investment in
associates and joint ventures 22,668 13,750
Gain (loss) from changes in fair value 1,157,695 (344,673)
Credit impairment loss (20,029) (14,096)
Asset impairment loss (40,435) (57,128)
Gain from disposal of assets 121,404 1,996,242
2. Operating profit 973,809 3,392,910
Add: Non-operating income 13,833 28,739
Less: Non-operating expense 25,502 14,129
3. Total profit 962,140 3,407,520
Less: income tax expense 167,407 797,637
4. Net profit 794,733 2,609,883
5.1 Classified by nature of operations
5.1.1 Continuing operations 794,733 2,609,883
5.1.2 Discontinued operations - -
5.2 Classified by ownership
5.2.1 Shareholders of the Company 794,733 2,609,883
5.2.2 Non-controlling interests - -
5. Other comprehensive income net of tax 421,918 1,212,127
Other comprehensive income net of tax attributable to
shareholders of the Company
5.1 Items that will not be reclassified into profit/loss (34,045) 9,760
5.1.1 Re-measurement of defined benefit plan liability (37,057) 9,760
5.1.2 FV changes in other equity investment 3,012 -
5.2 Items that were or will be reclassified to profit or loss 455,963 1,202,367
5.2.1 Effective portion of gains or loss of cash flow hedge (31,203) 301,081
5.2.2 Translation differences of foreign financial
487,166 901,286
statements
6. Total comprehensive income for the period
Attributable to shareholders of the Company 1,216,651 3,822,010
7. Earnings per share
7.1 Basic earnings per share (RMB/ share) 0.3248 1.0668
7.2 Diluted earnings per share (RMB/ share) N/A N/A
For business combination under common control in the reporting period, net profit of the acquiree before the business combination
was 38,027 thousand RMB; net profit of the acquiree in the comparative period (January-September, 2018) was 67,414 thousand
RMB.
Legal representative: _______________ Chief of the accounting work: ____________Chief of the accounting organ: ____________
Chen Lichtenstein Aviram Lahav Aviram Lahav
17
ADAMA Ltd. Full Content of the Third Quarter Report 2019
6. Income statement of the Company for the period from the year-beginning to the end of the Reporting Period
Unit: RMB’000
Item January-September, 2019 January-September, 2018
1. Operating income 1,130,769 2,427,162
Less: Cost of sale 805,455 1,638,505
Taxes and surcharges 10,535 23,534
Selling and Distribution expenses 55,939 99,782
General and Administrative expenses 288,608 129,163
Research and Development expenses 40,826 25,863
Financial expenses: (14,529) (43,731)
Including: Interest expense 2,642 6,950
Interest income 20,772 19,096
Add: Investment income (loss), net 2,583 -
Credit impairment loss (1,257) (4,854)
Asset Impairment loss (4,262) (1,306)
2. Operating profit (59,001) 547,886
Add: Non-operating income 4,455 428
Less: Non-operating expense 1,946 420
3. Total profit (56,492) 547,894
Less: Income tax expense (61,432) 96,542
4. Net profit 4,940 451,352
4.1 Continuing operations 4,940 451,352
4.2 Discontinued operations - -
5. Other comprehensive income net of tax (1,499) (459)
5.1 Items that will not be reclassified into profit/loss (1,499) (459)
5.1.1 Re-measurement of defined benefit plan liability (1,499) (459)
5.2 Items that were or will be reclassified to profit or loss - -
6. Total comprehensive income for the period 3,441 450,893
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ADAMA Ltd. Full Content of the Third Quarter Report 2019
7. Consolidated cash flow statement for the period from the year-beginning to the end of the Reporting Period
Unit: RMB’000
January-September, 2018
Item January-September, 2019
(Restated)
1. Cash flows from operating activities:
Cash received from sale of goods and rendering of services 18,678,554 18,345,384
Refund of taxes and surcharges 50,825 12,072
Cash received relating to other operating activities 385,343 555,148
Sub-total of cash inflows from operating activities 19,114,722 18,912,604
Cash paid for goods and services 13,819,496 12,450,518
Cash paid to and on behalf of employees 2,589,280 2,475,360
Payments of taxes and surcharges 579,208 365,980
Cash paid relating to other operating activities 2,032,477 2,068,103
Sub-total of cash outflows from operating activities 19,020,461 17,359,961
Net cash flows from operating activities 94,261 1,552,643
2. Cash flows from investing activities:
Cash received from disposal of investments 20,173 9,792
Cash received from returns of investments 7,763 -
Net cash received from disposal of fixed assets, intangible assets and 182,089 2,444,906
other long-term assets
Cash received from other investing activities 59,687 57
Sub-total of cash inflows from investing activities 269,712 2,454,755
Cash paid to acquire fixed assets, intangible assets and other
long-term assets 1,090,047 2,967,239
Cash paid for acquisition of investments - 6,566
Net cash paid to acquire subsidiaries or other
business units 826,805 13,213
Cash paid for other investing activities 15,177 14
Sub-total of cash outflows from investing activities 1,932,029 2,987,032
Net cash flows from investing activities (1,662,317) (532,277)
3. Cash flows from financing activities:
Cash received from borrowings 2,668,024 621,453
Cash received relating to other financing activities 132,216 -
Sub-total of cash inflows from financing activities 2,800,240 621,453
Cash repayment of borrowings 1,483,578 2,732,485
Cash payment for dividends, profit distributions or interest 706,890 490,563
Including: dividends paid to non-controlling interest 29,209 24,830
Cash paid relating to other financing activities 894,617 62,856
Sub-total of cash outflows from financing activities 3,085,085 3,285,904
Net cash flows from financing activities (284,845) (2,664,451)
4. Effect of foreign exchange rate changes on cash and cash
equivalents 61,806 172,206
5. Net increase (decrease) in cash and cash equivalents (1,791,095) (1,471,879)
Add: Cash and cash equivalents at the beginning of the period 6,346,196 7,979,502
6. Cash and cash equivalents at the end of the period 4,555,101 6,507,623
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ADAMA Ltd. Full Content of the Third Quarter Report 2019
8. Cash flow statement of the Company for the period from the year-beginning to the end of the Reporting Period
Unit: RMB’000
Item January-September, 2019 January-September, 2018
1. Cash flows from operating activities:
Cash received from sale of goods and rendering of services 1,357,646 2,006,704
Refund of taxes and surcharges 25,691 12,981
Cash received relating to other operating activities 26,770 24,141
Sub-total of cash inflows from operating activities 1,410,107 2,043,826
Cash paid for goods and services 843,164 844,221
Cash paid to and on behalf of employees 138,028 134,483
Payments of taxes and surcharges 76,174 75,128
Cash paid relating to other operating activities 133,914 126,968
Sub-total of cash outflows from operating activities 1,191,280 1,180,800
Net cash flows from operating activities 218,827 863,026
2. Cash flows from investing activities:
Cash received from returns of investments 4,391 -
Net cash received from disposal of fixed assets, intangible assets and
other long-term assets - -
Sub-total of cash inflows from investing activities 4,391 -
Cash paid for acquisition of investments 415,000 -
Cash paid to acquire fixed assets, intangible assets and other
long-term assets 214,548 72,571
Sub-total of cash outflows from investing activities 629,548 72,571
Net cash flows from investing activities (625,157) (72,571)
3. Cash flows from financing activities:
Cash received from borrowings 190,000 20,000
Cash received relating to other financing activities 39,886 -
Sub-total of cash inflows from financing activities 229,886 20,000
Cash repayment of borrowings 92,000 116,590
Cash payment for dividends, profit distributions or interest 240,028 161,188
Cash paid relating to other financing activities 8,836 454,551
Sub-total of cash outflows from financing activities 340,864 732,329
Net cash flows from financing activities (110,978) (712,329)
4. Effect of foreign exchange rate changes on cash and cash
equivalents (184) (8,829)
5. Net increase (decrease) in cash and cash equivalents (517,492) 69,297
Add: cash and cash equivalents at the beginning of the period 2,005,313 1,864,003
6. Cash and cash equivalents the end of the period 1,487,821 1,933,300
20
ADAMA Ltd. Full Content of the Third Quarter Report 2019
II. Adjustments of the financial statements
1. Opening balance adjustments due to adoption of new accounting standards for financial instruments, revenue and leases
√ Applicable □ Not applicable
Summary of impacts to assets and liabilities from adoption of new lease standard, as at January 1, 2019:
Unit: RMB’000
December 31, Impact from adoption of January 1,
Items 2018 new leases standard 2019
Fixed assets 7,263,866 (6,917) 7,256,949
Right-of-use assets N/A 513,780 513,780
Total non-current assets 18,899,599 506,863 19,406,462
Total assets 44,135,063 506,863 44,641,926
Non-current liabilities due within one year 301,814 120,584 422,398
Other payables 1,197,579 (4,327) 1,193,252
Total current liabilities 12,134,847 116,257 12,251,104
Lease liabilities N/A 390,606 390,606
Total non-current liabilities 9,255,354 390,606 9,645,960
Total liabilities 21,390,201 506,863 21,897,064
2. Retrospective adjustments due to adoption of new accounting standards for financial instruments, revenue and leases
□ Applicable √ Not applicable
III. Auditor’s report
Is this Report audited?
□ Yes √ No
This Report is unaudited.
ADAMA Ltd.
October 31, 2019
21
