Abstract of 2021 Annual Report of ADAMA Ltd.
Stock Code: 000553(200553) Stock Abbreviations: ADAMA A(B) Announcement No.2022-8
Abstract of the 2021 Annual Report of ADAMA Ltd.
I. Important Reminder
The 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.
√A pplicable □Not applicable
Whether increase the capital by the transfer of capital reserves
□Yes √No
The pre-plan of the dividend distribution approved by the meeting of the Board of Directors refers to the total
outstanding 2,329,811,766 shares of the Company as the basis for the distribution as cash dividend of RMB 0.08
(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
Stock name ADAMA A, ADAMA B Stock code 000553, 200553
Stock exchange Shenzhen Stock Exchange
Securities Affairs Representative &
Contact Information Board Secretary
Investor Relations Manager
Name Guo Zhi Wang Zhujun
6/F, No.7 Office Building, No.10 Courtyard, Chaoyang Park South Road, Chaoyang
Address
District, Beijing
Tel. 010-56718110 010-56718110
E-mail irchina@adama.com irchina@adama.com
2. Main Business or Products during the Reporting Period
Main Business
The Company is a global leader in crop protection, engaging in the development, manufacturing and
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Abstract of 2021 Annual Report of ADAMA Ltd.
commercialization of a wide range of crop protection products, that are largely off-patent. The Company provides
solutions to farmers to combat weeds, insects and disease, and sells its products in over 100 countries, through
approximately 60 subsidiaries worldwide.
The Company's business model integrates end-customer access, regulatory expertise, state-of-the art global R&D,
production and formulation facilities, thereby providing the Company a significant competitive edge and allowing
it to launch new and differentiated products that meet local farmers and customer needs in key markets.
The Company's primary operations are global, spanning activities in Europe, North America, Latin America,
Asia-Pacific (including China) and India, the Middle-East and Africa.
The Company 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 Company 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 Company. 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 industries; (c) the manufacturing of industrial
products and (d) other non-material activities.
General crop protection market environment
During 2021, crop prices of most of the major commodity crops remained elevated, and even further increased,
supporting strong crop protection demand in most regions. The positive crop price environment, along with
associated higher planted areas, combined to drive global demand for crop protection products.
On the whole, farmers continue to benefit from the high global crop prices. However, this benefit is somewhat
dampened by broad inflationary pressures they are experiencing across most of their input costs, including seeds,
fertilizers, crop protection, fuel and machinery.
During the year, prices of intermediates and active ingredients sourced from China remained high due to rising oil
prices and high raw material prices. In the third quarter, availability of intermediates and active ingredients
sourced from China was more constrained, although improved somewhat in the fourth quarter as the “Dual
Control” energy saving measures in the country were relaxed, and agrochemical production came back online.
However, China agrochemical prices remained high and COVID-19 restrictions and lockdowns continued to
negatively impact agrochemical production and logistics.
Global energy prices recovered and remained high over the course of 2021. In addition, global freight and
logistics costs rose considerably during the year, and even further increased in December as COVID-19 continued
to disrupt port activity, coupled with high stay-at-home demand brought on by the Omicron wave. Similarly,
in-land logistics remained challenged as pandemic-related restrictions continued to create frictions in domestic
supply lines. Taken together, these constraints have impacted both availability of shipping and transportation
resources, as well as significantly increased their costs, a dynamic widely observed across all international
trade-related industries.
The Company continues to actively manage its procurement and supply chain activities in order to mitigate these
higher procurement and logistics costs. It also endeavors to adjust its pricing wherever market conditions allow, to
compensate for these increased costs, the results of which were apparent in Q4, and are continuing to be seen into
the beginning of this year.
Market Competition and the Company’s Market Share
The global crop protection market is dominated by seven multinational companies, including the Group, five of
which are originator companies. In the past decade, a number of mergers and acquisitions were completed among
the largest players in the crop protection industry. Nonetheless, the crop protection industry as a whole is
relatively decentralized, with a number of local manufacturers competing in each country against the global
multinational companies. The Group believes that entry barriers for the crop protection market are relatively high,
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Abstract of 2021 Annual Report of ADAMA Ltd.
although they vary from region to region.
ADAMA is a leading company (in sales terms) among the crop-protection companies that focus on off-patent crop
protection solutions. The Group’s global crop protection market share was approximately 6% in 2021, based on
AgBio Investor’s preliminary estimation of the global agrochemical industry in 2021 (compared with 5.5% in
2020).
3. Main Accounting Data and Financial Indicators
(1) Main Accounting Data and Financial Indicators of the Latest Three Years
Whether the Company performed any retroactive adjustments to or restatement of its accounting data
□Yes √No
31.12.2021 31.12.2020 +/- (%) 31.12.2019
Total assets (RMB’000) 50,235,308 46,801,034 7.34% 45,288,940
Net assets attributable to the shareholders (RMB’000) 21,075,083 21,353,752 -1.31% 22,371,665
2021 2020 +/- (%) 2019
Operating revenue (RMB’000) 31,038,605 28,444,833 9.12% 27,563,239
Net profit attributable to the shareholders (RMB’000) 157,397 352,753 -55.38% 277,041
Net profit attributable to the shareholders, excluding
77,853 287,724 -72.94% 610,059
non-recurring profit and loss (RMB’000)
Net cash flows from operating activities (RMB’000) 4,561,875 2,023,015 125.50% 843,487
Basic EPS (RMB/share) 0.0676 0.1505 -55.08% 0.1132
Diluted EPS (RMB/share) N/A N/A N/A N/A
Weighted average return on equity 0.74% 1.61% -0.87% 1.23%
(2) Main Accounting Data by Quarter
Q1 Q2 Q3 Q4
Operating revenue (RMB’000) 7,187,164 7,876,616 7,424,584 8,550,241
Net profit attributable to the shareholders (RMB’000) 148,784 218,252 -370,952 161,313
Net profit attributable to the shareholders, excluding
121,678 200,445 -384,112 139,842
non-recurring profit and loss (RMB’000)
Net cash flows from operating activities (RMB’000) -837,773 2,329,066 690,694 2,379,888
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 Common Shareholders and Preferred Shareholders with Vote Right Restored and
Shareholding Table of Top-10 Shareholders
Unit: share
Total number of
Total number preferred stockholder
Total number
Total number of shareholders on the of preferred with vote right
of shareholders
44,886 30th trading day before the disclosure 43,735 stockholder 0 restored on the 30th 0
at the reporting
date of the annual report with vote trading day before the
period
right restored disclosure date of the
annual report
Shareholding of Top-10 Shareholders
Name of shareholder Nature of Holding Number of Number of shares held subject Pledged or frozen
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Abstract of 2021 Annual Report of ADAMA Ltd.
shareholder percentage shares to trading moratorium shares
Status of Amo
shares unt
State-owned -- -- --
Syngenta Group Co., Ltd. 78.47% 1,828,137,961
legal person
China Cinda Asset Management Co., State-owned -- -- --
1.34% 31,115,916
Ltd. legal person
Portfolio No.503 of National Social -- -- --
Others 0.64% 15,000,000
Security Fund
Huarong Ruitong Equity Investment State-owned -- -- --
0.55% 12,885,906
Management Co., Ltd. legal person
Hong Kong Securities Clearing Overseas -- -- --
0.32% 7,485,077
Company Ltd. (HKSCC) legal person
Bosera Funds-China Merchants Bank- -- -- --
Bosera Funds Xincheng No.2 Others 0.28% 6,500,000
Collective Asset Management Plan
Bosera Funds-Postal Savings Bank- -- -- --
Bosera Funds Xincheng No.3 Others 0.26% 6,000,000
Collective Asset Management Plan
China Universal Fund-Industrial -- -- --
Bank-China Universal-Strategic
Others 0.19% 4,400,000
Enhancement No.3 Collective Asset
Management Plan
Qichun County State-owned Assets State-owned -- -- --
0.18% 4,169,266
Administration legal person
Domestic -- -- --
Zhu Shenglan 0.18% 4,100,000
Individual
Syngenta Group Co., Ltd. is not related party or acting-in-concert party as
prescribed in the Administrative Methods for Acquisition of Listed Companies
Explanation on associated relationship or/and
to other shareholders. It is unknown to the Company whether shareholders
persons
above are related parties or acting-in-concert parties as prescribed in the
Administrative Methods for Acquisition of Listed Companies.
Particular about shareholder participate in the Shareholder Zhu Shenglan held 4,100,000 shares of the Company through a
securities lending and borrowing business ( if any) credit collateral securities trading account.
(2) Number of Preferred Shareholders and Shareholding Table of Top-10 Preferred Shareholders
□ Applicable √ Not applicable
None in the Reporting Period.
(3) Block Diagram of Equity and Control Relationship between the Company and Actual controller
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Abstract of 2021 Annual Report of ADAMA Ltd.
5. Corporate Bonds on the Reporting Date
□ Applicable √ Not applicable
III. Important Matters
None.
For introduction to Company business during the reporting period, please refer to Section III. Management
Discussion and Analysis of the full text of 2021 Annual Report.
ADAMA Ltd.
Legal Representative：Ignacio Dominguez
March 29th, 2022
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