ADAMA Ltd. Third Quarter Report 2023
Stock Code: 000553(200553) Stock Abbreviation: ADAMA A(B) Announcement No. 2023-35
The Company and all members of its board of directors hereby confirm that all
information disclosed herein is true, accurate and complete with no false or misleading
statement or material omission.
ADAMA LTD.
THIRD QUARTER REPORT 2023
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.
October 2023
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ADAMA Ltd. Third Quarter Report 2023
Important Notice
The Company’s Board of Directors, Board of Supervisors, directors, supervisors and
senior managers confirm that the content of the Report is true, accurate and complete
and contains no false statements, misleading presentations or material omissions,
and assume joint and several legal liability arising therefrom.
Steve Hawkins, the person leading the Company (President and Chief Executive
Officer) as well as its legal representative, and Efrat Nagar, the person leading the
accounting function (Chief Financial Officer), hereby assert and confirm the
truthfulness, accuracy and completeness of the Financial Report.
The Third Quarter Report has not been audited.
This Report has been prepared in both Chinese and English. Should there be any
discrepancy between the two versions, the Chinese version shall prevail.
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ADAMA Ltd. Third Quarter Report 2023
I. Main accounting and financial results
1. 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
July - September January -
+/- (%) +/- (%)
2023 September 2023
Operating revenues (RMB’000) 7,406,903 -20.20% 24,660,104 -12.17%
Net profit (loss) attributable to shareholders of the
(800,317) -2,320.27% (1,042,473) -235.71%
Company (RMB’000)
Net profit (loss) attributable to shareholders of the
Company excluding non-recurring profit and loss (818,268) -18,897.79% (1,123,234) -270.35%
(RMB’000)
Net cash flow from operating activities (RMB’000) 590,706 377.54% 525,830 133.74%
Basic EPS (RMB/share) (0.3435) -2,316.19% (0.4474) -235.70%
Diluted EPS (RMB/share) N/A N/A N/A N/A
Weighted average return on net assets -3.46% -3.62% -4.55% -7.99%
End of Reporting End of last
+/- (%)
Period year
Total assets (RMB’000) 58,239,864 57,980,489 0.45%
Net assets attributable to shareholders (RMB’000) 22,642,235 23,124,655 -2.09%
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ADAMA Ltd. Third Quarter Report 2023
2. Non-Recurring profit/loss
√ Applicable □ Not applicable
Unit: RMB’000
July - January -
Item September September Note
2023 2023
Gains/losses on the disposal of non-current assets
(including the offset part of asset impairment provisions) 4,820 28,222
Government grants recognized through profit or loss
(excluding government grants closely related to
business of the Company and given at a fixed quota or 4,401 23,454
amount in accordance with government’s uniform
standards)
Recovery or reversal of provision for bad debts which is
assessed individually during the years 17,395 44,720
Other non-operating income and expenses other than
the above 1,724 15,293
Mainly provision for early
Other profit or loss that meets the definition of non - retirement plan of employees at
recurring profit or loss (2,149) (4,900) the Company’s Israeli
manufacturing facilities.
Less: Income tax effects 8,240 26,028
Total 17,951 80,761
Explanation of other profit or loss that meets the definition of non-recurring profit or loss
√ Applicable □ Not applicable
Mainly provisions for early retirement plan of employees at the Company’s Israeli manufacturing facilities as explained
above in the note.
Explanation of why the Company classified an item as non-recurring profit/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering their Securities to the Public. Non-recurring Profit
and Loss, and reclassified any non-recurring profit/loss item s are given as examples in the said explanatory announcement
to recurrent profit/loss
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Changes in main accounting statement items and financial indicators in the Reporting Period, as well as reasons for
the changes
√ Applicable □ Not applicable
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ADAMA Ltd. Third Quarter Report 2023
General Crop Protection (CP) Market Environment 1
High crop protection channel inventories across all geographies due to channel loading in 2022 continued to negatively
impact channel consumption over Q3 2023. In addition, the distribution channel is opting to buy crop inputs on a "just in
time" basis and striving to carry minimal inventory given wide high interest rate environment outside China and abundant
supply of CP products. As a result, customers are buying much closer to the season, leading to a phasing of purchases
into later quarters vs last year. The Brazilian CP market, the largest crop protection market, was down significantly in USD
terms 2, mostly driven by lower volumes. This trend, coupled with the ongoing decline in Active Ingredients prices coming
out of China, is also putting pressure on commodity crop protection prices.
Over Q3 2023 the price trend of crop commodities continued to be mixed. Farmer CP consumption remained positive
across most regions supported by strong planted area.
Update on the War Situation in Israel
On October 7 th 2023, an unprecedented attack was launched against Israel, which thrust Israel into a state of war.
ADAMA is headquartered in Israel and has three manufacturing sites in the country. ADAMA is continuing the production
in its manufacturing sites in Israel, with certain non-significant restrictions, and globally and, at this time, does not expect
this situation to have a material impact on ADAMA's ability to support its markets or on ADAMA’s consolidated financial
results.
ADAMA continues to monitor the situation closely and support its people through these challenging times.
January - January - Same
Same period
September September period
last year +/-% +/-%
2023 2023 last year
(000’RMB)
(000’RMB) (000’USD) (000’USD)
Operating income
24,660,104 28,077,814 -12.17% 3,524,283 4,257,997 -17.23%
(Revenues)
Cost of goods sold 19,435,730 20,838,317 -6.73% 2,775,876 3,159,552 -12.14%
Sales & Marketing expenses 3,206,154 3,231,093 -0.77% 457,749 489,682 -6.52%
General & Administrative
713,482 972,450 -26.63% 101,885 147,192 -30.78%
expenses
R&D expenses 372,361 415,855 -10.46% 53,240 63,027 -15.53%
Financial Expenses 686,670 132,048 420.02% 97,891 15,496 531.72%
Gain (loss) from Changes in
(1,068,797) (1,364,883) -21.69% (152,786) (210,040) -27.26%
Fair Value
Total Net Financial Expenses 1,755,467 1,496,931 17.27% 250,677 225,536 11.15%
Total profits (loss) (1,104,176) 901,110 -222.54% (154,701) 138,853 -211.41%
1 Sources: Rabobank, Agri Commodity Markets Research, Sep 2023; AgbioInvestor -Quarterly-Briefing-Service-PLUS_Q3-2023;
2 Year-to-date as of Aug 2023, Source: Brazil Industry Panel
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ADAMA Ltd. Third Quarter Report 2023
January - January - Same
Same period
September September period
last year +/-% +/-%
2023 2023 last year
(000’RMB)
(000’RMB) (000’USD) (000’USD)
Income tax expenses
(61,703) 132,966 -146.41% (8,894) 20,121 -144.20%
(income)
Net profit (loss) attributable
to shareholders of the (1,042,473) 768,144 -235.71% (145,807) 118,732 -222.80%
Company
EBITDA 2,209,544 3,983,221 -44.53% 318,310 604,598 -47.35%
Q3 2023 Q3 2022 Q3 2023 Q3 2022
+/-% +/-%
(000’RMB) (000’RMB) (000’USD) (000’USD)
Operating income
7,406,903 9,281,986 -20.20% 1,032,600 1,359,044 -24.02%
(Revenues)
Cost of goods sold 6,077,003 7,015,562 -13.38% 847,196 1,027,235 -17.53%
Sales & Marketing expenses 1,044,955 1,072,004 -2.52% 145,675 156,961 -7.19%
General & Administrative
252,336 330,137 -23.57% 35,177 48,309 -27.18%
expenses
R&D expenses 109,983 141,117 -22.06% 15,335 20,664 -25.79%
Financial Expenses 230,815 570,273 -59.53% 32,164 83,487 -61.47%
Gain (loss) from Changes in
(286,579) (23,165) 1,137.12% (39,952) (3,392) 1,077.83%
Fair Value
Total Net Financial Expenses 517,394 593,438 -12.81% 72,116 86,879 -16.99%
Total profits (loss) (785,587) 67,736 -1,259.78% (109,501) 9,918 -1,204.06%
Income tax expenses 14,730 31,690 -53.52% 2,054 4,639 -55.72%
Net profit (loss) attributable
to shareholders of the (800,317) 36,046 -2,320.27% (111,555) 5,279 -2,213.18%
Company
EBITDA 268,554 1,211,159 -77.83% 37,444 177,324 -78.88%
Note: Since the functional currency of main overseas sub sidiaries is the USD, and the Company’s management review of
the Company’s performance is b ased on the USD results, following explanations and analysis are b ased on USD -
denominated numbers as listed ab ove.
Analysis of Financial Highlights
(1) Revenues
Revenues in the third quarter declined by approximately 24% (-20% in RMB terms; -25% in CER terms) to $1,033
million, reflecting a decrease of 12% in volumes and a decrease of 13% in prices. The lower sales reflect market
dynamics of high channel inventories, last-minute purchasing following channel destocking in light of high interest
rates and pressure on crop protection product pricing due to the lower channel demand.
These results brought the revenues in the first nine months of 2023 to $3,524 million, a decline of approximately
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ADAMA Ltd. Third Quarter Report 2023
17% (-12% in RMB terms; -15% in CER terms), reflecting a decrease of 10% in volumes and a decrease of 5% in
prices. This is in comparison to the record sales the Company achieved in 2022, which reflected the high demand
due to supply uncertainty in the market.
Regional Sales Performance
Q3 2023 Q3 2022 Change 9M 2023 9M 2022 Change
$m $m USD $m $m USD
Europe, Africa & Middle East (EAME)* 235 257 -8.8% 999 1,051 -4.9%
North America 133 174 -23.9% 568 736 -22.8%
Latin America 350 548 -36.1% 912 1,161 -21.4%
Asia Pacific 315 380 -17.0% 1,044 1,310 -20.3%
Of which China 130 156 -16.5% 453 605 -25.1%
Total 1,033 1,359 -24.0% 3,524 4,258 -17.2%
* 2022 denote proforma sales. As of 2023, the India, Middle East & Africa (IMA) region has been reorganized such that the
countries formerly included in this region are now included in the Europe region (renamed EAME) or in the Asia Pacific
region.
Note: the numbers in this table may not sum due to rounding.
Europe, Africa & Middle East (EAME): Sales in EAME decreased in the third quarter and nine-month period following
overall crop protection market slow down leading to lower volumes and pressure on prices. In Europe this trend was
particularly notable in Northern Europe with high channel inventory and in Central Europe, where cheap grain from Ukraine
impacted farmers' investments in crops. The Company succeeded in increasing its sales in France , Italy and Iberia
following weak seasons last year and with the company seizing opportunities in the cereal market in France.
North America: Consumer & Professional Solutions - Sales in the third quarter and nine-month period were impacted
by softening demand both in the consumer and professional solutions markets following a decline in disposable income,
an outcome of inflationary pressures and high interest rates, and high channel inventories. Additionally, sales shifted from
the third quarter to the fourth quarter to align with season use.
In the US Ag market sales in the third quarter and the nine-month period declined reflecting the overall dynamic of the
channel lowering inventory levels due to high interest rates with demand focusing on "just-in-time" supply from producers.
Sales in Canada were significantly impacted in the third quarter among others due to the negative effect of the weather on
fungicide sales and pricing pressure. In the nine-month period the decline in sales was more moderate as the sales were
supported by the strong performance in the first half of the year fo llowing expansion of the Company's portfolio during 2022
and relatively stable pricing in the market.
Latin America: Brazil - CP market contraction, characterized by channel destocking and softening pricing, led to a decline
in the company's sales in the third quarter and nine-month period.
In the rest of LATAM, sales in the third quarter and nine-month period decreased, following pressure on prices and dryer
weather than expected. This is despite the strong performance of the biologicals portfolio and gaining market share in
some key countries .
Asia-Pacific: In China, the market is experiencing oversupply and pricing pressure impacting both the branded formulation
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ADAMA Ltd. Third Quarter Report 2023
and non-ag sales, partially offset by the increase of AI sales as a result of active efforts to expand the markets and
customers along with the Sanonda Jingzhou site reaching high utilization after relocation.
Sales in the wider APAC and in India decreased in the third quarter and first nine-month period despite an increase in
volumes sold in Asia and Pacific regions. Sales were negatively impacted by pressure on prices, especially in Australia
and India with the beginning of El Nio and a weak monsoon season.
(2) Cost of Goods and Gross Profit
The decline in the gross profit in the first nine months was due to the decline in sales, as described above, high-
cost inventory and negative exchange rates moderated by lower transportation and logistics costs . In the third
quarter, these impacts had a higher adverse effect, though moderated by lower transportation and logistics costs
and slightly moderated by the positive impact of exchange rates and the initial effect of new inventory sold, priced
at market levels.
(3) Operating Expenses:
Operating expenses include Sales and Marketing, General a nd Administration and R&D.
The Company recorded certain non-operational charges within its operating expenses amounting to RMB 49 million
($7 million) in Q3 2023 in comparison to RMB 20 million ($3 million) in Q3 2022, and RMB 153 million ($22 million)
in 9M 2023 in comparison to RMB 202 million ($31 million) in 9M 2022, mainly as follows:
(i) 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) 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; and (iii) Incentive plans - share-based compensation.
Excluding the impact of the abovementioned non-operational items, the lower operating expenses in the third
quarter and first nine-month period of 2023 were mainly due to OPEX management measures, an adjustment of a
provision for success-based compensation and the positive impact of exchange rates. Additionally, in the first nine
months year of 2022 the Company recorded a provision for doubtful debts in Ukraine.
(4) Financial Expenses
“Financial Expenses” alone mainly reflect interest payments on corporate bonds and bank loans as well as foreign
exchange gains/losses on the bonds and other monetary assets and liabilities before the Company carries out any
hedging.
The impact of Financial Expenses (before hedging) is an expense of RMB 687 million ($98 million) for the nine
months of 2023 compared with an expense of RMB 132 million ($15 million) for the corresponding period in 2022.
Given the global nature of its operational activities and the composition of its assets and liabilities, the Company, in
the ordinary course of its business, uses foreign currency derivatives (forwards and options) to hedge the cash flow
risks associated with existing monetary assets and liabilities that may be affected by exchange rate fluctuations.
“Gains/Losses from Changes in Fair Value” amounted to a net loss of RMB 1,069 million ($153 million) in the
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ADAMA Ltd. Third Quarter Report 2023
first nine months of 2023, mainly due to hedging transactions, compared with a net loss of RMB 1,365 million ($210
million) in the corresponding period in 2022
The aggregate of Financial Expenses and Gains/Losses from Changes in Fair Value (hereinafter as “Total Net
Financial Expenses”), which more comprehensively reflects the financial expenses of the Company in supporting
its main business and protecting its monetary assets/liabilities, amounts to RMB 1,755 million ($251 million) in the
nine months of 2023 compared with RMB 1,497 million ($226 million) in the corresponding period in 2022.
The higher Total Net Financial Expenses were mainly due to higher bank interest expenses as stated above partially
offset by lower bond interest and CPI.
(5) Credit and Asset Impairment Loss
During the first nine months of 2023, the Company recorded provisions for asset and credit loss impairments totaling
RMB 275 million (approximately $39 million). These provisions are mainly related to impairment of inventories
mainly due to the decline in the market price of certain products and other inventory management issues part of the
ordinary course of the Company’s business and credit loss impairment of accounts receivables made during the
ordinary course of the Company’s business. For details, please refer to Asset Impa irment Announcement
(Announcement No. 2023-36) disclosed on October 31, 2023 at cninfo.com.
(6) Income Tax Expenses
Despite reaching losses before tax, the Company recorded tax expenses in the third quarter and recorded a low
tax income in the first nine-month period of 2023, mainly because the generation of the losses were primarily by
subsidiaries with relatively lower tax rates than the subsidiaries that generated profit. Additionally, in the third quarter
the company recorded tax expenses due to the non-cash impact of the weakness of the BRL in the third quarter
that effect the value of non-monetary tax assets. In the first nine months of 2022, the company recognized a high
deferred tax asset, related to inter-group sales, that led to a decline in the tax on income.
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ADAMA Ltd. Third Quarter Report 2023
Changes in main assets and liabilities
Unit: RMB’000
End of
End of last
Assets and liabilities Reporting +/- (%) Explanation
year
Period
Cash at bank and on
5,294,442 4,290,961 23.39% Additional financing and less procurement
hand
Derivative financial
308,208 233,809 31.82% Changes due to revaluation of derivatives
assets
Mainly decrease in receivables in respect of
Other receivables 684,280 1,021,824 -33.03%
securitization transaction
Inventories 15,283,558 16,927,241 -9.71% Decrease in the procurement of goods
Deferred tax assets 1,758,080 1,347,263 30.49% Mainly due to losses carried forward
Short-term loans 6,513,139 3,342,921 94.83% Supporting the on-going business activities
Derivative financial
792,872 545,516 45.34% Changes due to revaluation of derivatives
liabilities
Bills payable 469,390 1,114,775 -57.89% Decrease in the procurement of goods
Accounts payable 4,727,821 7,527,269 -37.19% Decrease in the procurement of goods
Employee benefits Adjustment of a provision for success -based
847,842 1,370,786 -38.15%
payable compensation
Mainly increase liabilities in respect of
Other payables 2,422,564 1,611,282 50.35% securitization transaction and accrued
expenses for interests
Other non-current
2,389,178 1,255,875 90.24% Increase in loan from related party
liabilities
II. Information regarding the Shareholders
1. Total number of ordinary shareholders and preference shareholders who had resumed their voting
rights, and shareholdings of top 10 shareholders at the period-end
Unit: share
Total number of preference
41,822 (the number of ordinary A
shareholders who had
Total number of ordinary shareholders at the share shareholders is 28,918; the
resumed their voting right at 0
end of the Reporting Period number of B share shareholders the end of the Reporting
is 12,904)
Period (if any)
Shareholdings of top 10 shareholders
Name of shareholder Nature of Shareholding Number of Number of Pledged or frozen
shareholde percentage shares held restricted shares
r shares held Status Number
Syngenta Group Co., Ltd. State-
owned
78.47% 1,828,137,961 -- -- --
legal
person
China Cinda Asset State-
Management Co., Ltd. owned
1.34% 31,115,916 -- -- --
legal
person
Bosera Funds-China
Merchants Bank- Bosera Funds Others 0.28% 6,500,000 -- -- --
Xincheng No.2 Collective Asset
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ADAMA Ltd. Third Quarter Report 2023
Management Plan
Domestic
Wu Feng Natural 0.26% 6,156,969 -- -- --
Person
Bosera Funds -Postal Savings
Bank- Bosera Funds Xincheng
Others 0.26% 6,000,000 -- -- --
No.3 Collective Asset
Management Plan
Domestic
Zhu Shenglan Natural 0.25% 5,756,000 -- -- --
Person
Overseas
Hong Kong Securities Clearing
Legal 0.24% 5,566,301
Company Ltd. (HKSCC)
Person
China Universal Asset
Management Fund-Industrial
Bank-CUAM-Strategic Others 0.19% 4,400,000 -- -- --
Enhancement No.3 Collective
Asset Management Plan
State-
Qichun County State-owned
owned
Assets Supervision and 0.18% 4,169,266 -- -- --
Legal
Administration Bureau
Person
Bosera Funds -Postal Savings
Bank- Bosera Funds Xincheng
Others 0.17% 4,000,000 -- -- --
No.4 Collective Asset
Management Plan
Shareholdings of top 10 non-restricted shareholders
Name of shareholder Number of non-restricted Type of shares
shares held at the period-end Type Number
Syngenta Group Co., Ltd. 1,828,137,961 RMB ordinary share 1,828,137,961
China Cinda Asset Management
31,115,916 RMB ordinary share 31,115,916
Co., Ltd.
Bosera Funds-China Merchants
Bank- Bosera Funds Xincheng
6,500,000 RMB Ordinary Share 6,500,000
No.2 Collective Asset Management
Plan
Wu Feng 6,156,969 RMB Ordinary Share 6,156,969
Bosera Funds-Postal Savings
Bank- Bosera Funds Xincheng
6,000,000 RMB Ordinary Share 6,000,000
No.3 Collective Asset Management
Plan
Zhu Shenglan 5,756,000 RMB Ordinary Share 5,756,000
Hong Kong Securities Clearing
5,566,301 RMB Ordinary Share 5,566,301
Company Ltd. (HKSCC)
China Universal Asset
Management Fund-Industrial
Bank-CUAM-Strategic 4,400,000 RMB Ordinary Share 4,400,000
Enhancement No.3 Collective
Asset Management Plan
Qichun County State-owned
Assets Supervision and 4,169,266 RMB Ordinary Share 4,169,266
Administration Bureau
Bosera Funds-Postal Savings
Bank- Bosera Funds Xincheng
4,000,000 RMB Ordinary Share 4,000,000
No.4 Collective Asset Management
Plan
Syngenta Group Co., Ltd. is not a related party or acting -in-concert party as
prescribed in the Administrative Methods for Acquisition of Listed Companies to other
Related or act-in-concert parties
shareholders. It is unknown to the Company whether shareholders above are related
among the shareholders above
parties or acting-in-concert parties as prescribed in the Administrative Methods for
Acquisition of Listed Companies.
Top 10 ordinary shareholders Shareholder Wu Feng held 4,776,243 shares of the Company through an ordinary
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ADAMA Ltd. Third Quarter Report 2023
conducting securities margin securities trading account and 1,380,726 shares of the Company through a credit
trading collateral securities trading account, the total sum of which is 6,156,969 shares.
Shareholder Zhu Shenglan held 5,756,000 shares of the Company through a credit
collateral securities trading account.
2. Total number of preference shareholders and shareholdings of the top 10 of such at the period-end
□ Applicable √ Not applicable
III. Other Significant Events
□ Applicable √ Not applicable
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ADAMA Ltd. Third Quarter Report 2023
IV. Financial Statements
i. Financial Statements
1. Consolidated balance sheet
Prepared by ADAMA Ltd.
30 September 2023
Unit: RMB’000
September 30, December 31, September 30, December 31,
Item Item
2023 2022 2023 2022
Current assets: Current liabilities:
Cash at bank and on hand 5,294,442 4,290,961 Short-term loans 6,513,139 3,342,921
Financial assets held for
1,881 1,685 Derivative financial liabilities 792,872 545,516
trading
Derivative financial assets 308,208 233,809 Bills payable 469,390 1,114,775
Bills receivable 129,839 112,297 Accounts payable 4,727,821 7,527,269
Accounts receivable 8,655,994 9,018,375 Contract liabilities 1,657,021 1,776,573
Receivables financing 191,102 63,639 Employee benefits payable 847,842 1,370,786
Prepayments 348,360 341,102 Taxes payable 419,240 459,574
Other receivables 684,280 1,021,824 Other payables 2,422,564 1,611,282
Non-current liabilities due
Inventories 15,283,558 16,927,241 2,519,292 2,262,131
within one year
Other current assets 1,117,735 1,129,688 Other current liabilities 748,337 703,794
Total current assets 32,015,399 33,140,621 Total current liabilities 21,117,518 20,714,621
Non-current assets: Non-current liabilities:
Long-term receivables 73,126 82,510 Long-term loans 3,037,852 3,662,870
Long-term equity investments 28,955 26,368 Debentures payable 7,199,797 7,353,511
Other equity investments 163,503 158,341 Lease liabilities 506,316 431,076
Investment properties 22,554 3,168 Long-term accounts payable 102,463 107,686
Long-term employee benefits
Fixed assets 9,386,997 8,952,184 payables 648,046 792,153
Construction in progress 3,241,534 2,961,401 Provisions 291,561 222,181
Right-of-use assets 646,491 555,889 Deferred tax liabilities 304,898 315,861
Intangible assets 5,392,647 5,342,754 Other non-current liabilities 2,389,178 1,255,875
Goodwill 5,068,366 4,805,157 Total non-current liabilities 14,480,111 14,141,213
Deferred tax assets 1,758,080 1,347,263 Total liabilities 35,597,629 34,855,834
Other non-current assets 442,212 604,833 Shareholders’ equity:
Total non-current assets 26,224,465 24,839,868 Share capital 2,329,812 2,329,812
Total assets 58,239,864 57,980,489 Capital reserves 12,950,464 12,986,333
Other comprehensive
income 1,829,985 1,080,590
Special reserves 16,852 15,818
Surplus reserves 242,498 242,498
Retained earnings 5,272,624 6,469,604
Total equity attributed to the
22,642,235 23,124,655
shareholders of the company
Non-controlling interests - -
Total equity 22,642,235 23,124,655
Total liabilities and equity 58,239,864 57,980,489
Steve Hawkins Efrat Nagar Efrat Nagar
Legal representative Chief of the accounting work Chief of the accounting organ
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ADAMA Ltd. Third Quarter Report 2023
2. Consolidated income statement for the period from the year-beginning to the end of the Reporting Period
Unit: RMB’000
January-September, January-September,
Item
2023 2022
1. Total operating Income 24,660,104 28,077,814
Less: Cost of sales 19,435,730 20,838,317
Taxes and surcharges 79,817 80,507
Selling and Distribution expenses 3,206,154 3,231,093
General and Administrative expenses 713,482 972,450
Research and Development expenses 372,361 415,855
Financial expenses 686,670 132,048
Including: Interest expense 873,611 525,681
Interest income 235,730 111,595
Add: Investment income, net 17,134 10,889
Including: Income from investment in associates
4,393 10,889
and joint ventures
Loss from changes in fair value (1,068,797) (1,364,883)
Credit impairment losses (46,205) (97,785)
Asset Impairment losses (228,926) (132,121)
Gain from disposal of assets 26,971 62,491
2. Operating profit (loss) (1,133,933) 886,135
Add: Non-operating income 61,910 38,257
Less: Non-operating expense 32,153 23,282
3. Total profit (loss) (1,104,176) 901,110
Less: income tax expense (income) (61,703) 132,966
4. Net profit (loss) (1,042,473) 768,144
4.1 Classified by nature of operations
4.1.1 Continuing operations (1,042,473) 768,144
4.2 Classified by ownership
4.2.1 Shareholders of the Company (1,042,473) 768,144
4.2.2 Non-controlling interests - -
5. Other comprehensive income net of tax 749,395 1,797,634
Other comprehensive income net of tax attributable to shareholders
749,395 1,797,634
of the Company
5.1 Items that will not be reclassified into profit/loss 15,564 75,796
5.1.1 Re-measurement of defined benefit plan liability 15,564 75,796
5.2 Items that were or will be reclassified to profit or loss 733,831 1,721,838
5.2.1 Effective portion of gains or loss of cash flow hedge 56,675 (24,433)
5.2.2 Translation differences of foreign financial statements 677,156 1,746,271
Other comprehensive income net of tax attributable to Non-controlling
- -
interests
6. Total comprehensive income (loss) for the period (293,078) 2,565,778
Total comprehensive income (loss) attributable to shareholders
(293,078) 2,565,778
of the Company
Total comprehensive income attributable to Non-controlling interests - -
7. Earnings (loss) per share
7.1 Basic earnings (loss) per share (RMB/ share) (0.4474) 0.3297
7.2 Diluted earnings per share (RMB/ share) N/A N/A
Steve Hawkins Efrat Nagar Efrat Nagar
Legal representative Chief of the accounting work Chief of the accounting organ
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ADAMA Ltd. Third Quarter Report 2023
3. Consolidated cash flow statement for the period from the year-beginning to the end of the Reporting
Period
Unit: RMB’000
January-September, January-September,
Item
2023 2022
1. Cash flows from operating activities:
Cash received from sale of goods and rendering of services 24,801,386 26,141,756
Refund of taxes and surcharges 120,349 240,522
Cash received relating to other operating activities 360,690 729,056
Sub-total of cash inflows from operating activities 25,282,425 27,111,334
Cash paid for goods and services 18,461,118 22,192,149
Cash paid to and on behalf of employees 3,439,222 3,130,092
Payments of taxes and surcharges 487,549 771,897
Cash paid relating to other operating activities 2,368,706 2,575,896
Sub-total of cash outflows from operating activities 24,756,595 28,670,034
Net cash flows from operating activities 525,830 (1,558,700)
2. Cash flows from investing activities:
Cash receipts from disposal of investments 171,646 5,887
Cash received from investment income 4,637 1,588
Net cash received from disposal of fixed assets, intangible assets
36,850 71,850
and other long-term assets
Cash received for other investing activities 37,984 2,325
Sub-total of cash inflows from investing activities 251,117 81,650
Cash paid to acquire fixed assets, intangible assets and other
1,706,970 1,968,585
long-term assets
Cash paid for acquisition of investments 2,843 -
Net cash paid to acquire subsidiaries or other
148,460 -
business units
Cash paid for other investing activities 6,481 89,395
Sub-total of cash outflows from investing activities 1,864,754 2,057,980
Net cash flows from investing activities (1,613,637) (1,976,330)
3. Cash flows from financing activities:
Cash received from borrowings 4,458,035 3,909,042
Cash received relating to other financing activities 1,191,050 26,750
Sub-total of cash inflows from financing activities 5,649,085 3,935,792
Cash repayment of borrowings 1,973,706 1,324,163
Cash payment for dividends, profit distributions or interest 915,438 571,867
Including: dividends paid to non-controlling interest 91,597 39,074
Cash paid relating to other financing activities 723,786 932,457
Sub-total of cash outflows from financing activities 3,612,930 2,828,487
Net cash flows from financing activities 2,036,155 1,107,305
4. Effect of foreign exchange rate changes on cash and cash
107,187 311,082
equivalents
5. Net increase (decrease) in cash and cash equivalents 1,055,535 (2,116,643)
Add: Cash and cash equivalents at the beginning of the period 4,225,253 5,759,480
6. Cash and cash equivalents at the end of the period 5,280,788 3,642,837
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ADAMA Ltd. Third Quarter Report 2023
ii. Impact of initial application of new accounting standards on the opening balances of
current year
□ Applicable √ Not applicable
iii. Auditor’s report
Is this Report audited?
□ Yes √ No
This Report is unaudited.
Board of Directors
ADAMA Ltd.
October 31, 2023
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