ADAMA Ltd. Full Content of the First Quarter Report 2021 ADAMA LTD. FIRST QUARTER REPORT 2021 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 2021 1 ADAMA Ltd. Full Content of the First Quarter Report 2021 Section I - Important Notice The Company’s Board of Directors, Board of Supervisors, directors, supervisors and senior managers confirm that the content of the Report is true, accurate and complete and contains no false statements, misleading presentations or material omissions, and assume joint and several legal liability arising therefrom. Ignacio Dominguez, the person leading the Company (President and Chief Executive Officer) as well as its legal representative, and Aviram Lahav, the person leading the accounting function (Chief Financial Officer & Deputy Chief Executive Officer), hereby assert and confirm the truthfulness, accuracy and completeness of the Financial Report. All of the Company’s directors attended the board meeting for the review of this Report. This Report and its abstract have been prepared in both Chinese and English. Should there be any discrepancy between the two versions, the Chinese version shall prevail. 2 ADAMA Ltd. Full Content of the First Quarter Report 2021 Section II - Financial Highlights & Shareholder Changes I. Main accounting and financial results 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 January - March 2021 January - March 2020 YoY +/- (%) Operating revenues (RMB’000) 7,187,164 6,782,243 5.97% Net profit attributable to shareholders of the Company 148,784 (16,707) 990.55% (RMB’000) Net profit attributable to shareholders of the Company 121,678 16,813 623.71% excluding non-recurring profit and loss (RMB’000) Net cash flow from operating activities (RMB’000) (837,773) (384,708) 117.77% Basic EPS (RMB/share) 0.064 (0.007) 1,012.30% Diluted EPS (RMB/share) NA NA NA Weighted average return on net assets 0.69% -0.07% 0.76% End of Reporting End of last year +/- (%) Period Total assets (RMB’000) 48,431,370 46,801,034 3.48% Net assets attributable to shareholders (RMB’000) 21,728,692 21,353,752 1.76% Please see key additional information and further details included in the Annex. Non-Recurring profit/loss √ Applicable □ Not applicable Unit: RMB’000 Item January-March 2021 Note Gains/losses on the disposal of non-current assets (including the write-off of 6,774 - asset impairment provisions accrued during the period) Government grants recognized through profit or loss (excluding government grants closely related to business of the Company and given at a fixed quota 15,086 - or amount in accordance with government’s uniform standard) Reversal of provision for receivables and contract assets, that are subject to 6,079 - specific provision Other non-operating income and expenses other than the above 4,375 - Other profit or loss that meets the definition of non-recurring profit or loss - - Less: Income tax effects 5,208 - Total 27,106 - 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 ADAMA Ltd. Full Content of the First Quarter Report 2021 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 had resumed their voting right and shareholdings of top 10 shareholders at the period-end Unit: share 46,241 Total number of preference (the number of ordinary A Total number of ordinary shareholders at the shareholders who had resumed share shareholders is 32,057; 0 end of the Reporting Period their voting right at the end of the number of B share the Reporting Period (if any) shareholders is 14,184) Shareholdings of top 10 shareholders Number of Pledged or frozen Nature of Shareholding Number of shares Name of shareholder restricted shares shareholder percentage shares held held Status Number State-owned Syngenta Group Co., Ltd. 72.88% 1,708,450,759 -- -- -- legal person Jingzhou Sanonda Holding State-owned 5.11% 119,687,202 -- -- -- Co., Ltd. legal person China Cinda Asset State-owned 1.33% 31,115,916 -- -- -- Management Co., Ltd. legal person Portfolio No.503 of National Others 0.98% 23,000,052 -- -- -- Social Security Fund Huarong Ruitong Equity State-owned Investment Management Co., 0.55% 12,885,906 -- -- -- legal person Ltd. Hong Kong Securities Overseas Clearing Company Ltd. 0.41% 9,527,106 -- -- -- legal person (HKSCC) Bosera Funds Xincheng No.2 Collective Asset Others 0.28% 6,500,000 -- -- -- Management Plan Bosera Funds Xincheng No.3 Collective Asset Others 0.26% 6,000,000 -- -- -- Management Plan China Universal-Strategic Enhancement No.3 Collective Others 0.19% 4,400,000 -- -- -- Asset Management Plan State-owned Assets State-owned Administration Bureau of 0.18% 4,169,266 -- -- -- legal person Qichun County Shareholdings of top 10 non-restricted shareholders Number of non-restricted Type of shares Name of shareholder shares held at the period-end Type Number Syngenta Group Co., Ltd. 1,708,450,759 RMB ordinary share 1,708,450,759 Jingzhou Sanonda Holding Co., 119,687,202 RMB ordinary share 119,687,202 Ltd. China Cinda Asset Management 31,115,916 RMB ordinary share 31,115,916 Co., Ltd. Portfolio No.503 of National Social 23,000,052 RMB ordinary share 23,000,052 Security Fund Huarong Ruitong Equity 12,885,906 RMB ordinary share 12,885,906 Investment Management Co., Ltd. Hong Kong Securities Clearing 9,527,106 RMB ordinary share 9,527,106 Company Ltd. (HKSCC) Bosera Funds Xincheng No.2 6,500,000 RMB ordinary share 6,500,000 Collective Asset Management Plan Bosera Funds Xincheng No.3 6,000,000 RMB ordinary share 6,000,000 Collective Asset Management Plan China Universal-Strategic 4,400,000 RMB ordinary share 4,400,000 Enhancement No.3 Collective 4 ADAMA Ltd. Full Content of the First Quarter Report 2021 Asset Management Plan State-owned Assets Administration Bureau of Qichun 4,169,266 RMB ordinary share 4,169,266 County Jingzhou Sanonda Holdings Co., Ltd. and Syngenta Group are related parties, and are acting-in-concert parties as prescribed in the Administrative Methods for Related or act-in-concert parties Acquisition of Listed Companies. Both Jingzhou Sanonda Holdings Co., Ltd. and among the shareholders above Syngenta Group are controlled by ChemChina. It is unknown to the Company whether the other shareholders are related parties or acting-in-concert parties as prescribed in the Administrative Methods for Acquisition of Listed Companies. Top 10 ordinary shareholders conducting securities margin No such issue. trading (if any) Did any of the top 10 ordinary shareholders or the top 10 non-restricted ordinary shareholders of the Company conduct any promissory buy-back transaction 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 5 ADAMA Ltd. Full Content of the First Quarter Report 2021 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 In the first quarter of 2021, commodity crop prices continued to increase as global demand remained strong, fueled by pandemic-related food security concerns, a recovery in biofuel demand and higher feed demand, especially from China. Weather-related agricultural supply challenges also contributed to the high crop prices, which are expected to remain elevated throughout the rest of the year. The positive crop price environment, along with associated expectations of higher planted areas, are combining to drive global demand for crop protection products. During the quarter, prices of intermediates and active ingredients sourced from China increased compared to the same period last year, due in part to the recovery of oil prices alongside higher raw material costs and stronger demand. As global economies start to reopen following pandemic-related shutdowns over the past year, global trade markets are experiencing scarcity of transportation resources leading to higher freight costs, a situation that has been exacerbated by the recent Suez Canal incident and other port congestions all over the globe. The Company actively manages its procurement and supply chain activities in order to mitigate these higher procurement and logistics costs, and endeavors to adjust its pricing wherever possible to compensate. 6 ADAMA Ltd. Full Content of the First Quarter Report 2021 Q1 2021 Q1 2020 Q1 2021 Q1 2020 +/-% +/-% (000’RMB) (000’RMB) (000’USD) (000’USD) Operating income 7,187,164 6,782,243 5.97% 1,108,904 972,531 14.02% (Revenues) Cost of goods sold 5,127,390 4,757,413 7.78% 791,102 682,181 15.97% *Total Operating 1,618,505 1,674,108 -3.32% 249,713 240,055 4.02% Expenses Financial Expenses 184,932 411,620 -55.07% 28,551 59,022 -51.63% Gain (loss) from Changes -59,738 -118.45% -9,217 -119.85% 323,813 46,433 in Fair Value Investment Income (loss) 8,627 -129,323 -106.67% 1,331 -18,544 -107.18% Total Net Financial Expenses and Investment 236,043 217,130 8.71% 36,437 31,133 17.04% Income Total profits 186,899 136,632 36.79% 28,825 19,601 47.06% % of Sales 2.60% 2.02% 2.60% 2.02% Income tax expenses 36,055 153,339 -76.49% 5,562 21,988 -74.70% Net income attributable to shareholders of the 148,784 -16,707 -990.55% 22,945 -2,387 -1,061.25% Company % of Sales 2.07% -0.25% 2.07% -0.25% EBITDA 892,232 927,888 -3.84% 137,669 133,058 3.47% % of Sales 12.41% 13.68% 12.41% 13.68% * Total operating expenses includes Sales and Marketing, General and Administrative and Research and Development expenses 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. Analysis of Financial Highlights (1) Revenues Revenues grew 14% (+6% in RMB terms) to hit a first quarter record-high of $1,109 million, driven by a robust 15% increase in volumes. This strong volume-driven growth was somewhat mitigated by a softer pricing environment in a number of key regions. ADAMA delivered particularly strong performances in the Asia Pacific and India, Middle-East & Africa regions, benefiting from strong demand and favorable seasonal conditions. The Company also grew strongly in North America, driven by its Consumer and Professional business, as well as in Latin America. Sales in Europe were somewhat lower due to a slow start to the season in the northern and eastern parts of the region. 7 ADAMA Ltd. Full Content of the First Quarter Report 2021 Regional Sales Performance Q1 2021 Q1 2020 Change $m $m USD Europe 344 357 -3.5% North America 189 168 12.4% Latin America 177 159 11.3% Asia Pacific 241 158 52.7% Of which China 124 68 81.6% India, Middle East & Africa 158 131 20.4% Total 1,109 973 14.0% Europe: Sales were lower by 4.1% in the first quarter, in CER terms, compared with the corresponding period last year. Growth in the southern part of the region, where favorable market conditions drove good demand, was outweighed by a slow start to the season in the northern and eastern parts of the region, especially when compared to Q1 2020 which then saw strong orders from distribution in anticipation of the COVID-related shutdowns that soon followed. In US dollar terms, sales in Europe were lower by 3.5% in the quarter, compared to the corresponding period last year. North America: Sales grew by 11.8% in the quarter, in CER terms, compared with the corresponding period last year. Growth in the region was driven by a strong performance from the Company’s Consumer and Professional business, benefiting from the reopening of the economy after COVID-19 related restrictions in 2020. This more than offset a somewhat softer performance in the US crop protection business. In US dollar terms, sales in North America grew by 12.4% in the quarter, compared to the corresponding period last year, reflecting a moderate strengthening of the Canadian Dollar in the quarter. Latin America: Sales grew by a robust 22.1% in the quarter, in CER terms, compared to the corresponding period last year. The Company continues its growth trajectory in Latin America, driven by solid volume growth and good performance from recent product launches in the region. In US dollar terms, sales in Latin America grew by 11.3% in the quarter, compared to the corresponding period last year, as the robust business growth was partially offset by weaker currencies in the region, in particular the Brazilian Real. Asia Pacific: Sales grew by 39.3% in the quarter, in CER terms, compared to the corresponding period last year. The strong growth in the Asia-Pacific region was seen both in China and beyond. In China, ADAMA saw significant growth in the quarter both from its branded, formulated portfolio, which was driven by higher cereal demand due to an increase in field crop planted areas and an early start to the Q2 season, as well as from its sales of raw materials and intermediates. Sales in the country were further bolstered by the inclusion of the Company’s recent acquisition of Jiangsu Huifeng’s domestic commercial crop protection business. In the rest of Asia-Pacific, the Company benefited from favorable seasonal conditions and delivered strong growth, despite a slower recovery from COVID-19 challenges in Asia. In US dollar terms, sales in Asia-Pacific grew by 52.7% in the quarter, compared to the corresponding period last year, reflecting mainly the strengthening of the Chinese Renminbi and the Australian dollar against the US dollar. India, Middle East and Africa: Sales grew by 23.0% in the quarter, in CER terms, compared to the corresponding period last year, driven by strong volume growth alongside price increases amid continued positive weather conditions. During the quarter, ADAMA launched a new pilot formulation R&D facility in India, complementing the Company’s leading 8 ADAMA Ltd. Full Content of the First Quarter Report 2021 formulation development capabilities in its main R&D hubs in Israel, China and India. The new facility, equipped with state- of-the-art technologies, will bridge the path from the R&D lab to commercial stage production, developing processes for the scale-up of liquid and solid formulation. In US dollar terms, sales in the India, Middle East & Africa region grew by 20.4% in the quarter, compared to the corresponding period last year, reflecting mainly the weaker level of the Turkish Lira, partially offset by a stronger Israeli Shekel. (2) Cost of Goods Sold and Gross Profit The Company achieved higher gross profit in the quarter compared to the corresponding period last year, driven by the strong volume growth alongside positive seasonal changes in its product offering, more than offsetting the impacts of the generally softer pricing and higher cost of goods sold. The higher cost of goods sold in the quarter was largely driven by higher procurement and logistics costs incurred as the Company continued to fulfill demand for its products. The Company recorded certain extraordinary charges within its reported cost of goods sold, totaling approximately $11 million in the first quarter (Q1 2020: $9 million) largely related to its Relocation & Upgrade program. These charges mainly reflect excess procurement costs incurred as the Company continued to fulfill demand for its products in order to protect its market position, through replacement sourcing at significantly higher costs from third-party suppliers. (3) Operating Expenses Operating expenses include Sales and Marketing, General and Administration and R&D. Operating expenses in the first quarter were $250 million (22.5% of sales), compared to $240 million (24.7% of sales) reported in the corresponding period last year. The Company recorded certain non-operational, mostly non-cash, charges within its reported operating expenses, mainly as follows: (i) $8 million (RMB 51 million) in Q1 2021 (Q1 2020: $8 million (RMB 55 million)) in non-cash amortization charges in respect of Transfer assets received and written-up related to the 2017 ChemChina-Syngenta acquisition. The proceeds from the Divestment of crop protection products in connection with the approval by the EU Commission of the acquisition of Syngenta by ChemChina, net of taxes and transaction expenses, were paid to Syngenta in return for the transfer of a portfolio of products in Europe of similar nature and economic value. Since the products acquired from Syngenta are of the same nature, and with the same net economic value as those divested, the Divestment and Transfer transactions had no net impact on the underlying economic performance of the Company. These additional amortization charges will continue until 2032 but at a reducing rate, yet will still be at a meaningful level until 2028; (ii) $6 million (RMB 41 million) in Q1 2021 (Q1 2020: $10 million (RMB 70 million) in idleness charges largely related to suspensions at the facilities being relocated as well as to the temporary suspension of the Jingzhou site in Q1 2020 (at the outbreak of COVID-19 in Hubei Province); and (iii) $4 million (RMB 24 million) in Q1 2021 (Q1 2020: $3 million (RMB 18 million)) in charges related mainly to the non-cash amortization of intangible assets created as part of the Purchase Price Allocation (PPA) on acquisitions, with no impact on the ongoing performance of the companies acquired, as well as other M&A- related costs. 9 ADAMA Ltd. Full Content of the First Quarter Report 2021 The higher aggregate amount of non-operational charges in Q1 2020 also included $11 million in non-cash amortization charges related to the legacy PPA of the 2011 acquisition of Adama Agricultural Solutions Ltd., which have now largely finished, and $9 million in respect of early retirement expenses. Excluding the impact of the abovementioned non-operational charges, the higher operating expenses reflect primarily an increase in sales and marketing teams in growing geographies to drive and support the strong sales growth, higher transportation and logistics costs driven by both an increase in freight costs and the increased volumes being moved, as well as the inclusion of recent acquisitions in Greece, Paraguay and China. Despite the higher operating expenses in absolute terms, the Company continued to improve its expense-to-sales ratio. (4) Financial Expenses “Financial Expenses” 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 185 million (USD 29 million) for the first quarter of 2021 compared with RMB 412 million (USD 59 million) for the corresponding period in 2020. 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 related to derivatives transactions, is a net loss of RMB 53 million (USD 8 million) in the first quarter of 2021 compared with net gain of RMB 185 million (USD 27 million) in the corresponding period in 2020. 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 RMB 238 million (USD 37 million) in the first quarter of 2021 compared with RMB 227 million (USD 32 million) in the corresponding period in 2020. The higher financial expenses were mainly due to an increase in financing costs on the NIS-denominated, CPI-linked bonds due to a higher CPI in Israel. (5) Tax Expenses The first quarter is generally characterized by a low effective tax rate compared to the effective tax rate of the Company over the full year. This is mainly due to the generation of profits by subsidiary companies within ADAMA whose tax rates are lower relative to the Company’s aggregate effective tax rate, as well as to the method of calculation of tax assets related to unrealized profits. However, in Q1 2020, the Company recorded higher tax expenses largely due to the impact of the significant weakening of currencies in that quarter against the US dollar, most notably that of the Brazilian Real, driving higher non-cash tax expenses due to differences between the functional (US dollar) and tax (local) currencies regarding the value of non-monetary assets. 10 ADAMA Ltd. Full Content of the First Quarter Report 2021 Changes in main assets and liabilities Unit: RMB’000 Assets and liabilities March 31, 2021 December 31, 2020 % change Explanation for any major change Derivative financial Realization and revaluation of 937,140 1,560,788 -39.96% assets* derivatives Accounts receivable 9,772,073 8,766,869 11.47% Seasonality increase Derivative financial Realization and revaluation of 656,789 1,463,614 -55.13% liabilities derivatives Seasonality increase mainly Taxes payable 562,928 358,988 56.81% due to VAT Increase mainly due to tax Deferred tax liability 386,547 331,942 16.45% basis revaluation of non- monetary assets in Brazil Increase mainly to support Short term loans 2,844,948 1,205,498 136.00% increase in working capital *Both derivative financial assets and liabilities are hedging instruments, the sum-up of which reflects the net position. II. Progress on significant events, as well as the impact and solutions □ Applicable √ Not applicable Status of share buyback √ Applicable □ Not applicable The Company held the 26th Meeting of the 8th Session of the Board of Directors on August 19, 2020 and the 3 rd Interim Shareholders Meeting on September 7, 2020, approving the Repurchase Plan for Part of the Company’s Domestically Listed Foreign Shares (B Share), and subsequently disclosed the repurchase report and a series of repurchase progress announcements according to relevant regulations. The repurchase period expired on December 6, 2020. From September 16, 2020 (the first actual occurrence date of the share repurchase) to December 6, 2020, the Company repurchased 14,309,536 B-Shares by means of a centralized price bidding transaction through a special securities repurchase account for B-Shares. This amount of B-shares accounts for 0.61% of the Company’s total share capital. The highest transaction price was 5.22 HKD/share, the lowest transaction price was 4.27 HKD/share, and the total payment amount was HKD 69,747,209 (including transaction fees). Please refer to the Announcement on the Expiry of the Repurchase Period and the Results of the B-Shares Repurchase (Announcement No.2020-71) for details. According to the Repurchase Plan, after the completion of the repurchase of shares, the Board of Directors shall propose to shareholders to approve the cancellation of the repurchased shares, the decrease of the Company’s registered capital and the corresponding amendments to the Articles of Association of the Company. The above matters have been reviewed and approved by the 31st Meeting of the 8th Session of the Board of Directors of the Company, and have yet to be reviewed and approved by the shareholders’ meeting, which is to be convened on May 21, 2021. After the shareholders’ meeting will have reviewed and approved the share cancellation, the reduction of the registered capital and the corresponding amendments to the Company’s Articles of Association, the Company will submit applications for the cancellation of the repurchased shares and the reduction of the registered capital to the Shenzhen Stock Exchange and China Registration and Clearing Corporation (Shenzhen Branch), respectively. After the share cancellation will be completed, the Company 11 ADAMA Ltd. Full Content of the First Quarter Report 2021 will make corresponding amendments to the relevant provisions in the Articles of Association of the Company, and file the industrial and commercial registration. Whether the Company sold out shares which were bought back by means of centralized price bidding □ Applicable √ Not applicable 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. Investment on financial assets (1) Securities investment □ Applicable √ Not applicable No such cases in the Reporting Period. 12 ADAMA Ltd. Full Content of the First Quarter Report 2021 (2) Investment in derivative financial instruments √ Applicable □ Not applicable Unit: RMB’000 The party that Related party Initial Investment amount at Amount purchased Percentage of investment Gain/loss during Relation with Expiring Amount sold during Impairment Investment amount operates the transaction or Type investment Starting date beginning of the during the reporting amount divided by net asset at the reporting the Company date the reporting period accrued (if any) at end of the period investment not? amount period period end of the period period Banks No No Option 1,994,238 28/01/2021 22/07/2021 1,994,238 6,713,258 -4,465,149 No 4,242,347 19.31% -42,533 Banks No No Forward 20,796,924 27/10/2020 19/05/2021 20,796,924 26,320,565 -30,833,920 No 16,283,569 74.14% -99,245 Total 22,791,162 -- -- 22,791,162 33,033,823 -35,299,069 20,525,916 93.45% -141,778 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. Risk and control analysis for the reporting period (including but No legal risk is involved. not limited to market risk, liquidity risk, credit risk, operational The actions taken in order to further reduce risks are: risk, legal risk, etc.) The relevant subsidiaries have specific guidelines, under the Group’s policy, which were approved by the subsidiaries' financial statements 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. The aforesaid refers to short time hedging currency transactions made by the relevant subsidiary with banks. Market price or fair value change of investments during the Segregation of duties as follows: reporting period. For the fair value evaluation, the relevant subsidiary is usually using external experts. The relevant subsidiary hedges currencies only; the relevant transactions are simple (Options and forwards) for short Specific methodology and assumptions should be disclosed in terms. For fair value methodology see section XII of the annual report, note IX. Fair Value. The exchange rates are provided by the accounting department of the relevant subsidiary and all other parameters the analysis of fair value of the investments are provided by the experts. Explanation for any significant changes in accounting policies N/A and principles, compared with 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 Company’s routine business demands and are in Independent Directors’ opinion on the investment in derivative accordance with the relevant laws and regulations. Additionally, the Company has adopted Currency Risk Hedging Policy to strengthen the risk management and control which benefit the Company’s ability financial instruments and related risk controls to protect against market risk. The derivative investments do not harm the interests of the Company and its shareholders. 13 ADAMA Ltd. Full Content of the First Quarter Report 2021 V. Progress on the designated projects used the raised funds √ Applicable □ Not applicable After receiving the approval of China Securities Regulatory Commission for the issuance of shares to China National Agrochemical Co., Ltd. acquire assets and raise supporting funds (CSRC Permits [2017] No.1096), the Company issued 104,697,982 ordinary A shares in December 2017, at the price of RMB14.90 per share, raising a total amount of RMB 1,559,999,931.80. After deducting the underwriting fees of RMB 28,079,998.78, the net amount actually received was RMB 1,531,919,933.02. The net amount was received on 27 December 2017 and was verified by Deloitte Touche Tohmatsu Certified Public Accountant LLP which issued a capital verification report (De Shi Bao (Yan) Zi (17) No.00540). As at 31 March 2021, the Company has utilized a cumulative amount of RMB 1,047,929,415.06 of the raised funds, including RMB 993,372,647.40 used in previous years, and RMB 54,556,767.66 during this reporting period which were used for the remainder purchase price of the 51% Equity Stake in Shanghai Dibai Plant Protection Co., Ltd and the advanced payment of the partial purchase price of the 51% Equity Stake in ADAMA Huifeng (Jiangsu) Ltd. (the former name Jiangsu Kelinong Agrochemical Co., Ltd.). The balance that has not yet been used was RMB 566,302,702.64, including RMB 51,141,555.30 of net interest income (after deduction of bank charges). For details, please refer to the Announcement on the Use of the Raised Funds for the Acquisition of the 51% Equity Stake in Jiangsu Kelinong Agrochemical Co., Ltd. as well as that of in Shanghai Dibai Plant Protection Co., Ltd. (announcement no. 2020-61), Announcement on the Termination of the Use of Raised Funds for Certain Designated Projects(announcement no. 2020-26), Announcement on the Change of Certain Designated Projects (announcement no. 2019-17) separately published by the Company on October 29, 2020, April 28, 2020, and March 21, 2019. VI. Performance forecast for January-June 2021 Warning of possible loss or considerable YoY change in the accumulative net profit made during the period- beginning to the end of the next reporting period, as well as the reasons thereto: □ Applicable √ Not applicable VII. Significant contract in the routine business □ Applicable √ Not applicable VIII. Wealth management entrustment □ Applicable √ Not applicable No such cases in the Reporting Period. IX. Illegal provision of guarantees for external parties □ Applicable √ Not applicable No such cases in the Reporting Period. X. Inadequate use of Company’s capital by the controlling shareholder or by its related parties for non-operating purposes □ Applicable √ Not applicable No such cases in the Reporting Period. 14 ADAMA Ltd. Full Content of the First Quarter Report 2021 XI. Information regarding communication with investors √ Applicable □ Not applicable Reception Type of Date Place Name of the visitor About Index mode visitor CICC, Industrial Securities, Record of the TF Securities, Haitong Introduction on Communications Securities, Dongxing 2020 Q4 and FY between the Securities, BOC performance. Company and the Others International, Nanjing March Not Corresponding Investors (No. Phone call (Sell-side Securities, HSBC Qianhai 30, 2021 applicable presentation was 2021-01) was analysts) Securities, Guolian published on the published by the Securities, SWHY Securities, website of the Company on April CITIC Securities, Everbright Company. 1, 2021 at Securities, North East www.cninfo.com.cn. Securities and Citi, etc. Record of the Introduction on the Communications 2020 Q4 and FY between the Institutional performance. Company and the March Not and Corresponding Investors (No. Webcasting Not applicable 31, 2021 applicable individual presentation was 2021-02) was investors published on the published by the website of the Company on April Company. 2, 2021 at www.cninfo.com.cn. 15 ADAMA Ltd. Full Content of the First Quarter Report 2021 Section IV Financial Statements I. Financial statements 1. Consolidated balance sheet Prepared by ADAMA Ltd. 31 March 2021 Unit: RMB’000 March 31, December 31, March 31, December 31, Item Item 2021 2020 2021 2020 Current assets: Current liabilities: Cash at bank and on hand 3,914,945 3,863,886 Short-term loans 2,844,948 1,205,498 Financial assets held for Derivative financial liabilities trading 80,820 1,253 656,789 1,463,614 Derivative financial assets 937,140 1,560,788 Bills payable 186,718 369,791 Bills receivable 77,101 102,082 Accounts payable 4,944,450 4,557,006 Accounts receivable 9,772,073 8,766,869 Contract liabilities 1,146,678 1,092,253 Receivables financing 99,269 109,483 Employee benefits payable 1,166,818 1,208,834 Prepayments 423,597 406,008 Taxes payable 562,928 358,988 Other receivables 1,493,239 1,310,029 Other payables 1,178,348 1,075,721 Non-current liabilities due Inventories 10,930,707 10,338,273 within one year 1,218,061 1,272,581 Other current assets 853,516 769,641 Other current liabilities 283,835 315,597 Total current assets 28,582,407 27,228,312 Total current liabilities 14,189,573 12,919,883 Non-current assets: Non-current liabilities: Long-term receivables 93,010 95,329 Long-term loans 2,415,800 2,387,628 Long-term equity investments 13,353 14,081 Debentures payable 7,851,271 8,078,113 Other equity investments 152,672 152,200 Lease liabilities 411,974 379,190 Investment properties 4,246 4,364 Long-term accounts payable 104,031 27,327 Long-term employee benefits Fixed assets 6,551,449 6,576,116 payables 656,931 645,755 Construction in progress 1,563,964 1,405,328 Provisions 160,664 163,251 Right-of-use assets 528,171 483,618 Deferred tax liabilities 386,547 331,942 Intangible assets 5,182,771 5,226,455 Other non-current liabilities 443,664 434,030 Goodwill 4,606,865 4,584,226 Total non-current liabilities 12,430,882 12,447,236 Deferred tax assets 873,515 773,673 Total liabilities 26,620,455 25,367,119 Other non-current assets 278,947 257,332 Shareholders’ equity: Total non-current assets 19,848,963 19,572,722 Share capital 2,344,121 2,344,121 Total assets 48,431,370 46,801,034 Capital reserves 13,023,219 13,023,219 Less: Treasury shares 60,357 60,357 Other comprehensive income 152,749 (72,055) Special reserves 17,337 15,960 Surplus reserves 240,162 240,162 Retained earnings 6,011,461 5,862,702 Total equity attributed to the shareholders of the company 21,728,692 21,353,752 Non-controlling interests 82,223 80,163 Total equity 21,810,915 21,433,915 Total liabilities and equity 48,431,370 46,801,034 Ignacio Dominguez Aviram Lahav Aviram Lahav Legal representative Chief of the accounting work Chief of the accounting organ 16 ADAMA Ltd. Full Content of the First Quarter Report 2021 2. Balance sheet of the Company Unit: RMB’000 March 31, December 31, March 31, December 31, Item Item 2021 2020 2021 2020 Current assets: Current liabilities: Cash at bank and on hand 1,027,091 1,034,812 Short-term loans 80,000 100,000 Accounts receivable 235,016 387,117 Bills payable - 19,600 Receivables financing 29,782 25,060 Accounts payable 191,627 324,047 Prepayments 18,237 5,973 Contract liabilities 5,631 17,480 Other receivables 27,006 27,138 Employee benefits payable 54,378 99,808 Inventories 103,360 141,235 Taxes payable 3,057 3,143 Other current assets 32,505 42,243 Other payables 200,366 240,939 Non-current liabilities due Total current assets 1,472,997 1,663,578 within one year 39,302 39,302 Non-current assets: Total current liabilities 574,361 844,319 Long-term equity investments 16,663,212 16,663,212 Non-current liabilities: Other equity investments 85,495 85,495 Long-term loans 1,083,430 941,430 Long-term employee benefits Investment properties 4,246 4,364 payables 88,604 89,658 Fixed assets 757,379 784,218 Provisions 42,850 44,743 Construction in progress 1,030,036 992,863 Other non-current liabilities 143,770 143,770 Right-of-use assets 23 37 Total non-current liabilities 1,358,654 1,219,601 Intangible assets 258,330 220,963 Total liabilities 1,933,015 2,063,920 Deferred tax assets 66,264 66,036 Shareholders’ equity: Other non-current assets 262,627 238,750 Share capital 2,344,121 2,344,121 Total non-current assets 19,127,612 19,055,938 Capital reserves 15,569,929 15,569,929 Total assets 20,600,609 20,719,516 Less: Treasury shares 60,357 60,357 Other comprehensive income 47,390 47,390 Special reserves 18,029 16,651 Surplus reserves 240,162 240,162 Retained earnings 508,320 497,700 Total shareholders’ equity 18,667,594 18,655,596 Total liabilities and shareholders’ equity 20,600,609 20,719,516 17 ADAMA Ltd. Full Content of the First Quarter Report 2021 3. Consolidated income statement Unit: RMB’000 Item January-March, 2021 January-March, 2020 1. Total operating Income 7,187,164 6,782,243 Less: Cost of sales 5,127,390 4,757,413 Taxes and surcharges 34,501 18,943 Selling and Distribution expenses 1,241,310 1,256,871 General and Administrative expenses 266,713 325,229 Research and Development expenses 110,482 92,008 Financial expenses 184,932 411,620 Including: Interest expense 169,365 165,243 Interest income 12,775 10,530 Add: Investment income, net 8,627 (129,323) Including: Income from investment in associates and joint ventures 2,048 9,128 Gain (loss) from changes in fair value (59,738) 323,813 Credit impairment reversal (losses) 4,288 13,886 Asset Impairment reversal (losses) (9,449) (1,923) Gain (loss) from disposal of assets 6,773 7,692 2. Operating profit 172,337 134,304 Add: Non-operating income 20,065 17,390 Less: Non-operating expense 5,503 15,062 3. Total profit 186,899 136,632 Less: income tax expense 36,055 153,339 4. Net profit 150,844 (16,707) 4.1 Classified by nature of operations 4.1.1 Continuing operations 150,844 (16,707) 4.2 Classified by ownership 4.2.1 Shareholders of the Company 148,784 (16,707) 4.2.2 Non-controlling interests 2,060 - 5. Other comprehensive income net of tax Other comprehensive income net of tax attributable to shareholders of the Company 224,804 144,207 5.1 Items that will not be reclassified into profit/loss (8,411) 34,218 5.1.1 Re-measurement of defined benefit plan liability (8,411) 34,218 5.2 Items that were or will be reclassified to profit or loss 233,215 109,989 5.2.1 Effective portion of gains or loss of cash flow hedge 198,665 45,885 5.2.2 Translation differences of foreign financial statements 34,550 64,104 Other comprehensive income net of tax attributable to Non-controlling interests - - 6. Total comprehensive income for the period 375,648 127,500 Total comprehensive income attributable to shareholders of the Company 373,588 127,500 Total comprehensive income attributable to Non-controlling interests 2,060 - 7. Earnings per share 7.1 Basic earnings per share (RMB/ share) 0.064 (0.007) 7.2 Diluted earnings per share (RMB/ share) N/A N/A Ignacio Dominguez Aviram Lahav Aviram Lahav Legal representative Chief of the accounting work Chief of the accounting organ 18 ADAMA Ltd. Full Content of the First Quarter Report 2021 4. Income statement of the Company Unit: RMB’000 Item January-March, 2021 January-March, 2020 1. Operating income 359,193 170,951 Less: Cost of sales 273,581 149,890 Taxes and surcharges 1,741 1,695 Selling and Distribution expenses 11,641 2,938 General and Administrative expenses 66,155 98,878 Research and Development expenses 9,952 1,961 Financial expenses (income) 1,971 (3,725) Including: Interest expense 4,099 1,415 Interest income 2,466 4,033 Add: Credit impairment loss 49 (1,266) Asset Impairment loss (143) (1,587) Gain from disposal of assets 7,411 - 2. Operating profit 1,469 (83,539) Add: Non-operating income 9,412 4,100 Less: Non-operating expense 489 363 3. Total profit 10,392 (79,802) Less: Income tax expense (228) (1,404) 4. Net profit 10,620 (78,398) 4.1 Continuing operations 10,620 (78,398) 5. Other comprehensive income net of tax - - 6. Total comprehensive income for the period 10,620 (78,398) 19 ADAMA Ltd. Full Content of the First Quarter Report 2021 5. Consolidated cash flow statement Unit: RMB’000 Item January-March, 2021 January-March, 2020 1. Cash flows from operating activities: Cash received from sale of goods and rendering of services 5,246,605 5,144,846 Refund of taxes and surcharges 40,843 26,579 Cash received relating to other operating activities 297,970 167,605 Sub-total of cash inflows from operating activities 5,585,418 5,339,030 Cash paid for goods and services 4,681,382 4,028,009 Cash paid to and on behalf of employees 887,515 905,294 Payments of taxes and surcharges 75,172 75,043 Cash paid relating to other operating activities 779,122 715,392 Sub-total of cash outflows from operating activities 6,423,191 5,723,738 Net cash flows from operating activities (837,773) (384,708) 2. Cash flows from investing activities: Cash received from disposal of investments 856 2,218 Net cash received from disposal of fixed assets, intangible assets and other long-term assets 9,149 9,429 Cash received for other investing activities 6,754 - Sub-total of cash inflows from investing activities 16,759 11,647 Cash paid to acquire fixed assets, intangible assets and other long-term assets 588,183 357,353 Net cash paid to acquire subsidiaries or other business units 54,557 - Cash paid for other investing activities 78,502 27,393 Sub-total of cash outflows from investing activities 721,242 384,746 Net cash flows from investing activities (704,483) (373,099) 3. Cash flows from financing activities: Cash received from borrowings 1,861,623 1,194,240 Cash received relating to other financing activities 26,334 - Sub-total of cash inflows from financing activities 1,887,957 1,194,240 Cash repayment of borrowings 244,391 428,544 Cash payment for dividends, profit distributions or interest 62,847 46,210 Including: dividends paid to non-controlling interest - - Cash paid relating to other financing activities - 90,259 Sub-total of cash outflows from financing activities 307,238 565,013 Net cash flows from financing activities 1,580,719 629,227 4. Effect of foreign exchange rate changes on cash and cash equivalents 18,915 46,592 5. Net increase (decrease) in cash and cash equivalents 57,378 (81,988) Add: Cash and cash equivalents at the beginning of the period 3,835,071 4,319,907 6. Cash and cash equivalents at the end of the period 3,892,449 4,237,919 20 ADAMA Ltd. Full Content of the First Quarter Report 2021 6. Cash flow statement of the Company Unit: RMB’000 Item January-March, 2021 January-March, 2020 1. Cash flows from operating activities: Cash received from sale of goods and rendering of services 427,465 309,170 Refund of taxes and surcharges 15,213 17,306 Cash received relating to other operating activities 12,347 8,199 Sub-total of cash inflows from operating activities 455,025 334,675 Cash paid for goods and services 222,307 169,917 Cash paid to and on behalf of employees 78,419 59,625 Payments of taxes and surcharges 4,274 2,723 Cash paid relating to other operating activities 42,695 43,067 Sub-total of cash outflows from operating activities 347,695 275,332 Net cash flows from operating activities 107,330 59,343 2. Cash flows from investing activities: Net cash received from disposal of fixed assets, intangible assets and other long-term assets 8,021 - Sub-total of cash inflows from investing activities 8,021 - Cash paid to acquire fixed assets, intangible assets and other long-term assets 180,143 32,861 Cash paid for investment 54,557 - Sub-total of cash outflows from investing activities 234,700 32,861 Net cash flows from investing activities (226,679) (32,861) 3. Cash flows from financing activities: Cash received from borrowings 142,000 114,500 Cash received relating to other financing activities 5,880 2,151 Sub-total of cash inflows from financing activities 147,880 116,651 Cash repayment of borrowings 20,000 100,000 Cash payment for dividends, profit distributions or interest 10,178 3,381 Sub-total of cash outflows from financing activities 30,178 103,381 Net cash flows from financing activities 117,702 13,270 4. Effect of foreign exchange rate changes on cash and cash equivalents (194) 3,596 5. Net increase (decrease) in cash and cash equivalents (1,841) 43,348 Add: cash and cash equivalents at the beginning of the period 1,022,758 1,395,994 6. Cash and cash equivalents at the end of the period 1,020,917 1,439,342 21 ADAMA Ltd. Full Content of the First Quarter Report 2021 II. Adjustments of the financial statements 1. Opening balance adjustments due to initial adoption of new accounting standards for leases in 2021 □ Applicable √ Not applicable 2. Retrospective adjustments due to initial adoption of new accounting standards for leases in 2021 □ Applicable √ Not applicable III. Auditor’s report Is this Report audited? □ Yes √ No This Report is unaudited. ADAMA Ltd. April 28, 2021 22