Abstract of 2020 Annual Report
Stock Code: 000553(200553) Stock Abbreviations: ADAMA A(B) Announcement No.2021-4
Abstract of the 2020 Annual Report of ADAMA Ltd.
I. Important Reminder
This Annual Report Abstract is from the full text of the Annual Report. Investors are advised to read the full text
of the Annual Report published on the media designated by China Securities Regulatory Commission for having a
round understand of the Company’s performance, financial status and future development plan.
All the directors attended the Board of Directors meeting to review the Annual Report. No disagreement was
raised by the directors, supervisors, and senior managements.
Non-standard auditor report
□ Applicable √ Not applicable
Plan approved by the Board of Directors for dividend distribution of ordinary shares or increasing the capital by
the transfer of capital reserves.
√Applicable □ Not applicable
The pre-plan of the dividend distribution approved by the meeting of the Board of Directors on March 29, 2021
refers to the total outstanding 2,329,811,766 shares of the Company which are entitled to the dividends as of the
record day when the profit distribution proposal is implemented as the basis for the distribution as cash dividend
of RMB 0.16 (before tax) per 10 shares, to all the shareholders of the Company. No shares will be distributed as
share dividend, and no reserve will be transferred to equity capital.
Plan approved by the Board of Directors for dividend distribution of preferred shares
□ Applicable √ Not applicable
II. Basic information about the Company
1. Company profile
Board Secretary Securities Affairs Representative Investor Relations Manager
Name Guo Zhi Wang Zhujun Wang Zhujun
Address 6/F, No.7 Office Building, No.10 Courtyard, Chaoyang Park South Road, Chaoyang District, Beijing
Tel. 010-56718110 010-56718110 010-56718110
Fax 010-59246173 010-59246173 010-59246173
E-mail irchina@adama.com irchina@adama.com irchina@adama.com
2. Brief introduction to the main business or products in the reporting period
The Company is a corporation incorporated in the People's Republic of China.
The Group is a global leader in crop protection, engaging in the development, man ufacturing and commercialization of a wide range
of crop protection products, that are largely off-patent. The Group provides solutions to farmers to combat weeds, insects and disease,
and sells its products in approximately 100 countries, through approximately 60 subsidiaries worldwide.
The Group's business model integrates end-customer access, regulatory expertise, state-of-the art global R&D, production and
formulation facilities, thereby providing the Group a significant competitive edge and allowing it to launch new and differentiated
products that meet local farmers and customer needs in key markets.
The Group's primary operations are global, spanning activities in Europe, North America, Latin America, Asia -Pacific (including
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Abstract of 2020 Annual Report
China) and India, the Middle-East and Africa.
The Group also utilizes its expertise to adapt such products also for the development, manufacturing and commercialization of similar
products for non-agricultural purposes (Consumer and Professional Solutions).
In addition, the Group leverages its core capabilities in the agricultural and chemical fields and operates in several other
non-agricultural areas, none of which, individually, is material for the Group. These activities, collectively reported as Intermediates
and Ingredients, include primarily, (a) the manufacturing and marketing of dietary supplements, food colors, texture and flavor
enhancers, and food fortification ingredients; (b) fragrance products for the perfume, cosmetics, body care and detergents in dustries;
(c) the manufacturing of industrial products and (d) other non-material activities.
Distinctive member of the Syngenta Group
In June 2020, ADAMA Group became a distinctive member of the newly established Syngenta Group, a world leader in agricultural
inputs, spanning crop protection, seeds, fertilizers, additional agricultural and digital technologies, as well as an advanced distribution
network in China.
ADAMA joined this newly-formed ag-industry leader through the contribution of most of the stake that ChemChina indirectly owned
in the Company into Syngenta Group. The Syngenta Group is owned by ChemChina, and as such, ChemChina remains the
Company’s ultimate controlling shareholder.
ADAMA continues to be headquartered in Israel and remains traded on the Shenzhen Stock Exchange, while ma intaining its unique
brand and positioning.
Performance in the context of general crop protection market environment
In 2020, the global agrochemical market saw resilient growth, with robust demand for crop protection products despite the ongoing
COVID-19 pandemic, demonstrating the industry’s importance in the global food production chain.
Crop prices mostly declined in the first half of the year as the demand for some agricultural crops, especially corn, cotton, sugar and
some fresh fruits and vegetables, softened in the first half of the year as a result of widespread pandemic-related shutdowns. Crop
prices improved significantly in the second half of the year as crop demand recovered, fueled by pandemic -related food security
concerns, the recovery of oil prices (benefiting corn and sugar prices) and the recovery in textile demand (benefiting cotton prices).
The spike in agricultural import demand is led by China, the world’s largest agricultural importer, which is rebuilding its c rop
reserves. Dryness in Latin America due to the La Nia weather event also pushed crop prices higher in t he latter part of 2020.
Overall, worldwide crop protection volumes were strong in 2020, driven by increased global planted acreages, higher pest pres sure
and improved weather conditions in key growing regions. Growth was also bolstered by demand for crop protection products in
developing markets such as India, where pandemic-induced labor shortages encouraged higher use of herbicides.
The non-crop industry, especially the consumer segment, saw strong demand as COVID-19 lockdowns drove investments in the
Home & Garden segments.
During most of 2020, prices of active ingredients in China declined as the cost of oil and related basic chemicals decreased sharply at
the initial onset of the pandemic. However, towards the end of the year, prices began to increase due to the recovery of oil prices
alongside higher raw material costs. This, combined with stronger demand for crop protection products and a strengthening of the
RMB when compared to the US dollar, has contributed to a recent increase in the procurement costs of raw materials, intermediates
and active ingredients, a trend which is continuing into 2021. This increase in procurement costs, if sustained for an extended period,
may challenge the Company’s gross margin over the coming quarters. The Company actively manages its procurement and supply
chain activities in order to mitigate these higher procurement costs, and adjusts its pricing wherever possible to compensate. However,
intense competitive dynamics in markets worldwide may constrain the Company's ability to fully and timely pass on these increases
in procurement costs.
2020 saw significant volatility in global currency markets, with the rapid depreciation of many currencies against the US dollar in the
first half of the year, most notably the Brazilian Real, Australian dollar, Turkish Lira and Indian Rupee, as well as volatility in the
Euro. These trends, although stabilizing to some extent in the second half of the year, impacted the financial performance of
multi-national companies throughout the world, including the Company. It should be noted that developed market currencies have
strengthened more than those in developing markets where the Company is experiencing its strongest growth, another trend which is
continuing into 2021. Furthermore, the relatively strong currencies of the Company’s two main production hubs, Israel and China,
have brought, and are expected to continue to bring, upward pressure on manufacturing costs in USD terms.
Crop Protection Products
The Group is focused on the development, manufacturing and commercialization of largely off-patent crop protection products, which
are generally herbicides, insecticides and fungicides, which protect agricultural and other crops against weeds, insects and disease,
respectively.
Herbicides - During cultivation, crops are exposed to various weeds that grow in their environment and compete for water, light and
nutrients. Herbicides are designed to prevent or stunt the development of such weeds to allow the cultivated crop to develop optimally
throughout the different stages of its growth, and therefore to reach optimum yield. The herbicides sold by the Company are both
selective (do not affect or harm the crop itself) and non-selective. The best-selling herbicides are those designed to protect soy, corn,
cereals, rice and cotton.
Insecticides - Insecticides are designed to control various types of insects and pests in a selective manner (without ha rming the crop
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Abstract of 2020 Annual Report
itself). The best-selling insecticides are designed to protect fruits and vegetables, corn, cotton and soy.
Fungicides - Fungicides are designed to combat various diseases and parasitical fungi. In general, when weather conditions in the
agricultural season are dry, the prevalence of crop diseases is much smaller, reducing demand for such products. Crops in which
fungicides are used most frequently are cereals, fruit, vegetables, soy, grapevines and rice.
Main production processes, and upstream and downstream elements
Production - The Group's manufacturing sites house two types of facilities: (1) dedicated facilities designed to produce a single
product or product family; and (2) multi-purpose facilities - comprising the majority of the Group's facilities where several kinds of
products may be manufactured. The latter provide the Group with manufacturing flexibility and enable it to prepare for the
manufacturing of new products, subject to maintaining and ensuring quality standards.
Value chain - Generally, the value chain between the Group and the end customer who ultimately purchases its products around the
world may be characterized as follows: Importer / Formulator -> Distributor -> Retailer -> Farmer. Due to the expansion of the
Company's activities and the acquisition and establishment of subsidiary companies in different regions of the world in recent years,
in most cases companies owned by the Group carry out the role of the formulator and/or the importer, and occasionally also the role
of the distributor and sometimes the retailer. In the past, farmers stored the inventory in their own warehouses, but this trend has
changed and today most of inventories are stored either in the importers' or the distributors’ warehouses.
Raw materials and suppliers - The Group procures and manufactures a large variety of raw materials, which may not be uniformly
characterized, together with complementary raw materials or intermediates required to produce the finished products and/or their
formulations. The most significant ele ment of the Group's cost of sales is the cost of raw materials used in its production processes,
which is primarily influenced by global changes in the supply of raw materials, and, to a certain extent, extreme fluctuations in
international oil prices. Similarly, the cost of purchasing finished products for sale to third parties is also significant. The Group
purchases its raw materials from various suppliers, primarily in China, Europe, the U.S.A., and South America. The Group's supplier
network has not changed significantly over the past few years, while suppliers from China are still a main source for raw material,
due to the wide range of products and competitive prices offered by them, together with the improved quality of the pr oducts that are
examined by the Group through product quality testing.
Customers - The Company’s customers are numerous and are distributed across many countries throughout the world, although in
some countries, sales are made to a relatively small number of customers. Generally, the Group's products are primarily sold to
regional and local distributors in the different countries, who in turn market them to end customers in that country, some of whom are
large cooperatives. The Group also sells, inter alia, to multinational companies and to other producers that manufacture end-use
products based on active ingredients sourced from the Group's. The vast majority of sales are made to returning customers, typically
without long-term supply contracts, as is customary in the industry. In most countries, purchases are made without long-term advance
orders, while in some areas they are made based on (non-binding) rolling sales forecasts and actual orders. The Group's actual
production is based on these forecasts.
Distribution and marketing - The Group's marketing operations are global and designed to consistently increase profits and market
share. The Group markets its products directly through local representation in all of the largest agricultural markets worldwide by
means of local salespeople and commercial activities directed at the distributors, agricultural consultants and farmers.
General environment and the effect of external factors on the Company’s operations
Major trends, events and key developments in the Group's macro-economic environment may materially impact the Group’s business
results and development. The impact of these factors may differ by geographic region and the different products of the Group. Since
the Group offers one of the a widest and most diverse product portfolios of crop protection products and since it operates in many
geographic regions, the aggregate effect of these factors in any given year, and during the course thereof, is not uniform and may
sometimes be mitigated by offsetting effects. The activities and results of the Group are further subject to, and affected by, certain
global, localized and other factors, such as: demographic changes; economic growth and rising standards of living; agricultural
commodity prices; significant fluctuations in raw materia l costs and global energy prices; development of new crop protection
technologies; patent expiries and growth in volumes of off-patent products; the global agricultural markets and volatile weather
conditions; regulatory changes; government policies; world ports, international monetary policies and the financial markets.
For further important additional information and details, please refer to the Annex to the Company’s 2020 Annual Report.
3. Major accounting data and financial index
(1) Major accounting data and financial indicators for the last three years
Whether the Company performed any retroactive adjustments to or restatement of its accounting data
□Yes √No
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Abstract of 2020 Annual Report
2020 2019 +/- (%) 2018
Operating revenue (RMB’000) 28,444,833 27,563,239 3.20% 26,867,308
Net profit attributable to the shareholders
352,753 277,041 27.33% 2,447,876
(RMB’000)
Net profit attributable to the shareholders,
287,724 610,059 -52.84% 859,448
excluding non-recurring profit and loss (RMB’000)
Net cash flows from operating activities (RMB’000) 2,023,015 843,487 139.84% 2,299,153
Basic EPS (RMB/share) 0.1505 0.1132 32.89% 1.0005
Diluted EPS (RMB/share) N/A N/A N/A N/A
Weighted average return on equity 1.61% 1.23% 0.38% 11.66%
31.12.2020 31.12.2019 +/- (%) 31.12.2018
Total assets (RMB’000) 46,801,034 45,288,940 3.34% 44,135,063
Net assets attributable to the shareholders
21,353,752 22,371,665 -4.55% 22,744,862
(RMB’000)
(2) Main Financial Index by Quarters
Unit: RMB’000
Q1 2020 Q2 2020 Q3 2020 Q4 2020
Operating revenue 6,782,243 7,338,797 6,768,583 7,555,210
Net profit attributable to the shareholders (16,707) 221,356 20,409 127,695
Net profit attributable to the share holders excluding 16,813 202,960 9,876 58,075
non-recurring profit and loss
Net cash flows from operating activities (384,708) 1,619,239 157,469 631,015
whether there are any material differences between the financial indicators above or their summations and those
which have been disclosed in quarterly or semi-annual reports
□ Yes √ No
4. Shares and shareholders
（1）Number of holders of ordinary shares and preference shares with vote right restored and top 10 shareholders
Unit: share
Total number of 48,018 Total number 46,509 Total 0 Total number of 0
shareholders at the of number of preferred
reporting period shareholders preferred stockholder
on the 30th stockholder with vote right
trading day with vote restored on the
before the right 30th trading
disclosure restored (if day before the
date of the any) disclosure date
annual report of the annual
report
Top Ten Shareholders
Name of shareholder Nature of Holding Number of Number of shares Pledged or frozen shares
shareholder percentage shareholding at held subject to Status of shares Amou
the end of the trading
nt
reporting period moratorium
State-owned -- -- --
Syngenta Group Co., Ltd. 72.88% 1,708,450,759
legal person
Jingzhou Sanonda State-owned -- -- --
5.11% 119,687,202
Holding Co., Ltd. legal person
China Cinda Asset State-owned -- -- --
1.33% 31,115,916
Management Co., Ltd. legal person
China Structural Reform State-owned 1.27% 29,828,446 -- -- --
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Abstract of 2020 Annual Report
Fund Co., Ltd. legal person
Portfolio No.503 of -- -- --
National Social Security Others 0.98% 23,000,052
Fund
Huarong Ruitong Equity -- -- --
State-owned
Investment Management 0.55% 12,885,906
legal person
Co., Ltd.
Hong Kong Securities -- -- --
Overseas
Clearing Company Ltd. 0.25% 5,948,320
legal person
(HKSCC)
Qichun County -- -- --
State-owned
State-owned Assets 0.18% 4,169,266
legal person
Administration
GUOTAI JUNAN -- -- --
Overseas
SECURITIES(HONGKO 0.17% 4,040,329
legal person
NG) LIMITED
Domestic -- -- --
Zhu Shenglan 0.17% 3,920,000
Individual
Explanation on associated relationship Jingzhou Sanonda Holdings Co., Ltd. and Syngenta Group are related parties, and
or/and persons are acting-in-concert parties as prescribed in the Administrative Methods for
Acquisition of Listed Companies. Both Jingzhou Sanonda Holdings Co., Ltd. and
Syngenta Group are controlled by ChemChina. 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.
Particular about shareholder participate Shareholder Zhu Shenglan held 3,920,000 shares of the Company through a credit
in the securities lending and borrowing collateral securities trading account.
business ( if any)
(2) Aggregated number of the preference shareholders and the list of the top 10 Preference shareholders
□ Applicable √ Not applicable
(3) Chart of the equity relationships between the Company and its actual controller
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Abstract of 2020 Annual Report
5. Corporate Bonds
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and
not yet due or due but failed to pay as of the date of the approval of this Annual Report by the Board of Directors.
No.
II. Performance Discussion and Analysis
1. Business Operation summary in the reporting period
Revenues
Revenues grew by 17% in the fourth quarter and by 11% in the full-year period, in constant exchange rates (CER) terms, compared to
the corresponding periods last year, driven by a 16% increase in volumes in the quarter and a 10% increase over the full year.
In the fourth quarter, the Company delivered strong, double-digit growth in all key regions in constant currency terms. A particularly
strong performance in the quarter in North America saw the region almost fully recover from the severe weather and other challenges
seen mainly in the US earlier in the year. Similarly strong growth was achieved in Europe in the quarter, bolstered by good c onsumption
by farmers and the Company’s acquisition in Greece in mid-year, bringing the region into positive growth territory for the full year.
Favorable weather conditions in the quarter in Asia-Pacific supported growth across the region, with noteworthy performances seen in
Australia, Japan and across south-east Asia. The India , Middle East & Africa region delivered continued growth, with noteworthy
performances seen in India and South Africa, which also enjoyed supportive seasonal conditions. The Company continues to grow its
market share in Latin America, led by strong business growth in Brazil, despite challenging weather in s ome parts which delayed the
soybean planting season, as well as solid performances in Chile, Peru, Colombia and Mexico.
The robust growth in the fourth quarter drove ADAMA to achieve record-high sales in 2020. The Company saw its strongest growth
over the year in the emerging markets of Latin America and the India, Middle East and Africa region, as well as in APAC. Its
performance was further bolstered by various acquisitions completed in 2020, including in Greece and Paraguay.
In US dollar terms, sales in the fourth quarter grew by 10% and by 3% in the full-year period, compared to the corresponding periods
last year, reflecting the impact of the generally weaker currencies, especially in the emerging market regions where the Company is
growing the fastest. The currency weakness constrained sales in US dollar terms by an estimated $71 million in the fourth quarter and
by an estimated $293 million over the full year.
Sales and Marketing expenses
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 Solutions (non-cash): Under ASBE,
since the first combined reporting for Q3 2017, the Company has inherited the historical “legacy” amortization charge that
ChemChina was previously 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 have been completed by the end of 2020. Its reported financial impact in the full
year of 2020 is RMB 255 million (USD 37 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 were 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 reducing rate, yet will still be at a meaningful level until 2028. Its reported financial impact in the full year of
2020 is RMB 211 million (USD 31 million), while in 2021 it is expected to be further reduced to approximately RMB 151
million (USD 23 million)
Amortization of acquisition-related PPA (non-cash) and other acquisition-related costs: Mainly the non-cash
amortization of intangible assets created in the course of acquisitions as well as other M&A-related costs, and has no impact
on the ongoing performa nce of the companies acquired. Its reported financial impact in the full year of 2020 is RMB 64
million (USD 9 million), net of tax.
The Company continues to maintain strong operating cost discipline while accommodating significantly higher sales and the
inclusion of acquisitions. Sales and marketing expenses in the 2020 periods benefited from the global currency weakness against the
US dollar when compared to prior periods, and were further aided by the impact of COVID-19 restrictions that caused savings on
certain expenses.
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Abstract of 2020 Annual Report
General and Administrative expenses
The Company is in the process of its multi-year Upgrade & Relocation program in China, where its production assets located in the
old production sites in Jingzhou and Huai’An are being relocated to the new sites, both in 2020 and in the coming years. Related to
that, the Company recorded in the general and administrative expenses and idleness cost of RMB 134 million (USD 19 million)
mainly in Jingzhou site for its temporary suspensions mostly during Q1 2020 at the outbreak of COVID-19 in Hubei Province
compared with RMB 342 million (USD 50 million) in 2019 due to environmental inspections carried out at that time). As part of the
relocation process, Jingzhou and Huai’An sites began to execute a reduction plan to reduce the number of employees related to which.
The fourth quarter of 2019 included one-time severance expenses of RMB 243 (USD 53 million).
This largely explained for the big changes of the general and administrative expenses between 2020 an d 2019.
In addition, the Company recorded a provision for an early retirement plan of employees at the Company’s Israeli manufacturing
facilities. Its financial impact in the FY is RMB 73 million (USD 11 million), most of which was incurred during Q1 2020.
Despite the above, the Company continues to maintain strong operating cost discipline. General a nd administrative expenses in the
2020 periods benefited from the global currency weakness against the US dollar when compared to prior periods, and were further
aided by the impact of COVID-19 restrictions that caused savings on certain expenses.
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 RMB 1,847 million (USD 962 million) for the full year of 2020 compared with RMB 1,666
million (USD 242 million) for 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 associate d with existing
monetary assets and liabilities that may be affected by exchange rate fluctuat ions. 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 the hedging transactions on Gains/Losses from Changes in Fair Value and Investment Income, excluding capital
gain/loss from realization of companies, is a net gain of RMB 681 million (USD 100 million) in the full year of 2020 compared with
RMB 574 million (USD 84 million) for 2019.
The aggregate of Financial Expenses, Gains/Losses from Changes in Fair Value 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 RMB 1,166 million (USD 169 million) in the full year of 2020, compared with RMB 1,092 million
(USD 158 million) for 2019. The higher financial expenses in the full year period were largely due to the effect on balance sheet
positions of the strengthening of the RMB when compared to 2019, alongside higher financing costs on the NIS-denominated,
CPI-linked bonds publicly traded at Tel Aviv Stock Exchange due to the expansion of the series in mid-2020, which were partially
offset by a lower CPI in Israel over the year.
In addition, Investment Income also mainly includes an amount of RMB 16 million (USD 2 million) in respect of equity accounted
investees in the full year of 2020 compared with RMB 20 million (USD 3 million) in the corresponding period in 2019 and RMB 59
million (USD 9 million) recognized as capital gain due to gaining control over an equity investee, bringing the total Gains/Losses
from Changes in Fair Value and Investme nt Income to RMB 747 million (USD 110 million) in the full year of 2020 compared with
expense of RMB 594 million (USD 87 million) for 2019.
For further important additional information and details, please refer to the Annex to the Company’s 2020 Annual Report
2. Material change in principal business during the reporting period
□ Yes √No
3. Products accounting for over 10% of revenue or profit from principal business of the Company
√ Applicable □Not applicable
Unit: RMB 000 Yuan
Operating Operating Gross YoY increase/decrease
YoY increase/decrease YoY increase/decrease
Product Name revenues profit margin of the operating
of the operating profit of the gross margin
revenues
Manufacture of
chemical raw
materials and 28,444,833 538,034 29.44% 3.20% 1.57% -2.79%
chemical
products
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Abstract of 2020 Annual Report
4. Existing seasonal or cyclical operations
□ Yes √No
5. Significant change of revenue, operating costs or net profit belonged to holders of ordinary shares of the
Company based on YoY
□Applicable √Not applicable
6. Trading suspension and termination of the listing
□ Applicable √ Not applicable
7. Matters regarding the financial report
(1) Explanation of the changes of the accounting policy, the accounting estimates and the accounting
methods compared to the last financial report
√ Applicable □Not applicable
"Accounting Standards for Business Enterprises Interpretation No. 13"
Interpretation No. 13 revised the three elements that constitute a business and elaborated the criteria for a business. "The
concentration test" is introduced as an option, for the acquirer in business combinations involvin g enterprises not under common
control, when determining whether the acquired operation or set of assets constitute a business. At the same time, Interpreta tion No.
13 further clarifies the definition of related parties.
In addition, Interpretation No. 13 further clarifies that related parties of an enterprise also include joint ventures or associates of other
members (including parent company and subsidiaries) of the group to which the enterprise belongs, and other joint ventures and
associates of investors who exercise joint control over the enterprise etc.
Interpretation No. 13 was effective from January 1, 2020. Adoption of the interpretation has no signific ant impact on the Company’s
financial statements.
"Regulations on Accounting Treatment of Rent Concessions Related to the New Coronary Pneumonia Epidemic" (Caikuai
[2020] No. 10)
In June 2020, the Ministry of Finance issued the "Notice on Issuing the "Regulations on Accounting Treatment of Rental Concessions
Related to the New COVID-19 Epidemic" (Financial Accounting Policy [2020] No. 10), which can be used in accordance with the
accounting treatment regulations for rental concessions related to the COVID-19 in order to apply a simplified approach. The notice
did not have a significant impact on the Company’s financial statements.
(2) Explain retrospective restatement due to correction of significant accounting errors in the reporting
period
□ Applicable √ Not applicable
No such cases in the reporting period.
(3) Explain change of the consolidation scope as compared with the financial reporting of last year
√Applicable □Not applicable
During the reporting period, the Group acquired Alfa Agricultural Supplies, S.A., FNV S.A., and Shanghai Dibai Plant Protection Co.,
Ltd. through business combination not under common control.
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Abstract of 2020 Annual Report
ADAMA Ltd.
Legal Representative：Ignacio Dominguez
March 29, 2021
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