ADAMA LTD.
THIRD QUARTER REPORT 2024
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 thatempowers our people in markets around the world to listen to farmers and ideate from thefield. This uniquely positions ADAMA to offer a vast array of distinctive mixtures, formulationsand high-quality differentiated products, delivering solutions that meet local farmer andcustomer needs in dozens of countries globally, with direct presence in all top 20 markets.Please see important additional information and further details included in the Annex.
October 2024
Stock Code: 000553(200553) Stock Abbreviation: ADAMA A(B) Announcement No.2024-47
The Company and all members of its board of directors hereby confirm that allinformation disclosed herein is true, accurate and complete with no false or misleadingstatement or material omission.
Important NoticeThe Company’s Board of Directors, Board of Supervisors, directors, supervisors andsenior managers confirm that the content of the Report is true, accurate and completeand contains no false statements, misleading presentations or material omissions,and assume joint and several legal liability arising therefrom.Ga?l Hili, the person leading the Company (President and Chief Executive Officer) aswell as its legal representative, and Efrat Nagar, the person leading the accountingfunction (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 anydiscrepancy between the two versions, the Chinese version shall prevail.
I. Main accounting and financial results
1. Whether the Company performs any retroactive adjustments to, or restatements of, its accounting data of last year dueto change in accounting policies or correction of accounting errors
□ Yes √ No
| July - September 2024 | +/- (%) | January - September 2024 | +/- (%) | |
| Operating revenues (RMB’000) | 6,613,004 | -10.72% | 21,523,293 | -12.72% |
| Net loss attributable to shareholders of the Company (RMB’000) | (943,246) | -17.86% | (1,838,112) | -76.32% |
| Net loss attributable to shareholders of the Company excluding non-recurring profit and loss (RMB’000) | (978,076) | -19.53% | (1,925,131) | -71.39% |
| Net cash flow from operating activities (RMB’000) | 1,131,114 | 91.49% | 2,862,232 | 444.33% |
| Basic EPS (RMB/share) | (0.4049) | -17.86% | (0.7890) | -76.35% |
| Diluted EPS (RMB/share) | N/A | N/A | N/A | N/A |
| Weighted average return on net assets | (4.52%) | -1.07% | (8.71%) | -4.16% |
| End of Reporting Period | End of last year | +/- (%) | ||
| Total assets (RMB’000) | 51,519,496 | 55,405,803 | -7.01% | |
| Net assets attributable to shareholders (RMB’000) | 19,778,917 | 21,924,475 | -9.79% | |
2. Non-Recurring profit/loss
√ Applicable □ Not applicable
Unit: RMB’000
| Item | July - September 2024 | January - September 2024 | Note | |||
| Gains/losses on the disposal of non-current assets (including the offset part of asset impairment provisions) | 21,606 | 39,823 | ||||
| Government grants recognized through profit or loss (excluding government grants closely related to business of the Company and given at a fixed quota or amount in accordance with government’s uniform standards) | 1,694 | 3,993 | ||||
| Recovery or reversal of provision for bad debts which is assessed individually during the years | 7,835 | 24,545 | ||||
| (1,914) | 15,424 | |||||
| Other non-operating income and expenses other than the above | 15,745 | 23,544 | ||||
| Less: Income tax effects | 10,136 | 20,310 | ||||
| Total | 34,830 | 87,019 | ||||
Explanation of other profit or loss that meets the definition of non-recurring profit or loss
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Explanation of why the Company classified an item as non-recurring profit/loss according to the definition in the ExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering their Securities to the Public. Non-recurring Profitand Loss, and reclassified any non-recurring profit/loss items are given as examples in the said explanatory announcementto 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 forthe changes
√ Applicable □ Not applicable
General Crop Protection (CP) Market Environment
During the third quarter of 2024, key commodity crop prices remained subdued, pressuring farmer income, despite someease in the prices of inputs.While channel inventory continues to ease, the high interest rate environment coupled with ample product supply andactive ingredient prices from China remain at historic lows, continue to drive a just-in-time purchasing approach by thechannel.These dynamics have negatively impacted the pricing in the crop protection market.Update on the War Situation in Israel
ADAMA is headquartered in Israel and has three manufacturing sites in the country. The war situation in Israel, includingrecent developments, and tensions in the Red Sea and shipping disruptions, have not had a material impact on theCompany's ability to support its markets or on ADAMA’s consolidated financial results, although this situation might impactthe Company's ability to respond quickly to changing market demand
.
| January - September 2024 (000’RMB) | Same period last year (000’RMB) | +/-% | January - September 2024 (000’USD) | Same period last year (000’USD) | +/-% |
Operating income(Revenues)
| Operating income (Revenues) | 21,523,293 | 24,660,104 | -12.72% | 3,027,945 | 3,524,283 | -14.08% |
Cost of goods sold
| Cost of goods sold | 16,748,146 | 19,435,730 | -13.83% | 2,356,131 | 2,775,876 | -15.12% |
Sales & Marketingexpenses
| Sales & Marketing expenses | 3,408,333 | 3,206,154 | 6.31% | 479,481 | 457,749 | 4.75% |
General & Administrativeexpenses
| General & Administrative expenses | 817,172 | 713,482 | 14.53% | 114,955 | 101,885 | 12.83% |
R&D expenses
| R&D expenses | 319,977 | 372,361 | -14.07% | 45,014 | 53,240 | -15.45% |
Financial Expenses
| Financial Expenses | 1,220,073 | 686,670 | 77.68% | 171,629 | 97,891 | 75.33% |
Loss from Changes inFair Value
| Loss from Changes in Fair Value | (235,775) | (1,068,797) | -77.94% | (33,184) | (152,786) | -78.28% |
Total Net FinancialExpenses
| Total Net Financial Expenses | 1,455,848 | 1,755,467 | -17.07% | 204,813 | 250,677 | -18.30% |
Total loss
| Total loss | (1,442,604) | (1,104,176) | 30.65% | (202,873) | (154,701) | 31.14% |
Sources: CCPIA (China Crop Protection Industry Association), BAIINFO, FocusEconomics, China Containerized Freight Index, internalsources.
For further information see Section 3 Subsection X to the 2024 Semi-Annual Report, "Raw material supply and/or shipping, port servicedisruptions and inventory".
| January - September 2024 (000’RMB) | Same period last year (000’RMB) | +/-% | January - September 2024 (000’USD) | Same period last year (000’USD) | +/-% |
Income tax expenses(income)
| Income tax expenses (income) | 395,508 | (61,703) | 740.99% | 55,643 | (8,894) | 725.62% |
Net loss attributable toshareholders of theCompany
| Net loss attributable to shareholders of the Company | (1,838,112) | (1,042,473) | 76.32% | (258,516) | (145,807) | 77.30% |
EBITDA
| EBITDA | 1,790,580 | 2,209,544 | -18.96% | 251,953 | 318,310 | -20.85% |
| Q3 2024 (000’RMB) | Q3 2023 (000’RMB) | +/-% | Q3 2024 (000’USD) | Q3 2023 (000’USD) | +/-% |
Operating income(Revenues)
| Operating income (Revenues) | 6,613,004 | 7,406,903 | -10.72% | 929,451 | 1,032,600 | -9.99% |
Cost of goods sold
| Cost of goods sold | 5,274,072 | 6,077,003 | -13.21% | 741,264 | 847,196 | -12.50% |
Sales & Marketingexpenses
| Sales & Marketing expenses | 1,044,957 | 1,044,955 | 0.00% | 146,867 | 145,675 | 0.82% |
General & Administrativeexpenses
| General & Administrative expenses | 280,906 | 252,336 | 11.32% | 39,480 | 35,177 | 12.23% |
R&D expenses
| R&D expenses | 101,870 | 109,983 | -7.38% | 14,319 | 15,335 | -6.63% |
Financial Expenses
| Financial Expenses | 596,427 | 230,815 | 158.40% | 83,826 | 32,164 | 160.62% |
Loss from Changes in FairValue
| Loss from Changes in Fair Value | (39,283) | (286,579) | -86.29% | (5,525) | (39,952) | -86.17% |
Total Net FinancialExpenses
| Total Net Financial Expenses | 635,710 | 517,394 | 22.87% | 89,351 | 72,116 | 23.90% |
Total loss
| Total loss | (871,175) | (785,587) | 10.89% | (122,441) | (109,501) | 11.82% |
Income tax expenses
| Income tax expenses | 72,072 | 14,730 | 389.29% | 10,129 | 2,054 | 393.14% |
Net loss attributable toshareholders of theCompany
| Net loss attributable to shareholders of the Company | (943,246) | (800,317) | 17.86% | (132,570) | (111,555) | 18.84% |
EBITDA
| EBITDA | 395,826 | 268,554 | 47.39% | 55,636 | 37,444 | 48.58% |
Note: Since the functional currency of main overseas subsidiaries is the USD, and the Company’s management review ofthe Company’s performance is based on the USD results, following explanations and analysis are based on USD-denominated numbers as listed above.
Analysis of Financial Highlights
(1) Revenues
Revenues in the third quarter declined by approximately 10% (-11% in RMB terms; -6% in CER terms) to $929million, presenting a decrease of 7% in prices and an increase of 1% in volumes.The lower sales reflect lower market prices and de-focus from selected low profit products. High competition fromChinese and Indians manufactures as well as declining active ingredient prices have impacted the pricing of the
overall crop protection market led by the pricing of commoditized generic crop protection. Moreover, despiteimprovement in market inventory levels, the channel is exercising cautious buying patterns in light of price volatilityand a higher interest rate environment.These results brought the revenues in the first nine months of 2024 to $3,028 million, a decline of approximately14% (-13% in RMB terms; -12% in CER terms), reflecting a decrease of 9% in prices and a decrease of 3% involumes.
Regional Sales Performance
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 first nine months of 2024,following negative weather conditions in Eastern, Central and Northen Europe, and strong competition across the region,which have impacted pricing.North America: Consumer & Professional Solutions - Sales were higher in the third quarter and nine-month periodfollowing supported by good weather, while the Company focused on higher margin products.In the US Ag market, sales increased in the third quarter supported by channel restocking against channel destocking inthe corresponding quarter and decreased in the first nine months of 2024, following pricing pressure in light of competitionand lower famer profitability, just-in-time purchasing patterns reflecting the high interest rate environment.ADAMA's sales in Canada in the third quarter were higher and reflected good demand for pre and post-harvest herbicidesand fungicides, while the lower sales in the nine month period were impacted by low insecticide demand due to weatherconditions.Latin America: Brazil - decline in sales in the third quarter and first nine months of 2024, reflecting the softer pricingfollowing competition from Chinese competitors, “wait and see” famers behavior postponing CP purchases, negative impactof weather as well as de-focus from non-selective herbicides. The Company is focusing its sales on higher margin products,with new product introductions of differentiated products continuing to do well.In the rest of LATAM sales in the third quarter and the first nine-month period reflected negative weather conditions whichhave impacted the seasons across the region, while pricing was impacted by high competition. Despite this, new productintroductions of differentiated products supported sales.Asia-Pacific: In China, the branded formulations sales in the third quarter were impacted by lower customer demand dueto high channel inventory, market competition and extreme weather events as typhoon in Southern China. The pricingpressure continued throughout the first nine months. The non-Ag business saw a stable demand and improved businessquality despite the impact of lower prices.
| Q3 2024 $m | Q3 2023 $m | Change USD | 9M 2024 $m | 9M 2023 $m | Change USD |
Europe, Africa & Middle East (EAME)
| Europe, Africa & Middle East (EAME) | 203 | 235 | -14% | 882 | 999 | -12% |
North America
| North America | 158 | 133 | 19% | 572 | 568 | 1% |
Latin America
| Latin America | 287 | 350 | -18% | 687 | 912 | -25% |
Asia Pacific
| Asia Pacific | 282 | 315 | -11% | 887 | 1,044 | -15% |
Of which China
| Of which China | 109 | 130 | -16% | 384 | 453 | -15% |
Total
| Total | 929 | 1,033 | -10% | 3,028 | 3,524 | -14% |
In the Pacific region, sales in the third quarter and the first nine months were lower, impacted by softer pricing and just-in-time purchasing patterns. Sales in the third quarter were supported by positive weather conditions in Eastern Australiaand in New Zealand.Sales in India were stable in the third quarter and down in the nine-month period, impacted by erratic weather and softerpricing, particularly in commoditized products.Sales in the wider APAC region continued to experience pricing pressure following intense competition from China,particularly in commoditized products, and low demand as customers focused on lowering stocks and tended to buyproducts as needed.
(2) Cost of Goods and Gross Profit
Despite the decline in sales in the third quarter and first nine months of 2024, the Company improved the grossmargin both in the third quarter and nine-month period following the positive impact of new inventory sold, priced atmarket levels and following management's focus on the quality of business which led to an improvement in thesales mix of higher margin products, moderated by the negative impact of exchange rates. In the third quarter theCompany also recorded a slight increase in quantities sold, which had a positive impact.
(3) Operating Expenses:
Operating expenses include Sales and Marketing, General and Administration and R&D.The Company recorded certain non-operational charges within its operating expenses amounting to RMB 167million ($23 million) in Q3 2024 in comparison to RMB 49 million ($7 million) in Q3 2023, and RMB 639 million ($90million) in 9M 2024 in comparison to RMB 153 million ($22 million) in 9M 2023, mainly as follows:
(i) Provisions such as legal claims and update of registration depreciation; (ii) measures to improve efficiencies; (iii)non-cash amortization charges in respect of Transfer assets received and written-up related to the 2017ChemChina-Syngenta acquisition. The proceeds from the Divestment of crop protection products in connection withthe approval by the EU Commission of the acquisition of Syngenta by ChemChina, net of taxes and transactionexpenses, were paid to Syngenta in return for the transfer of a portfolio of products in Europe of similar nature andeconomic value. Since the products acquired from Syngenta are of the same nature, and with the same neteconomic value as those divested, the Divestment and Transfer transactions had no net impact on the underlyingeconomic performance of the Company. These additional amortization charges will continue until 2032 but at areducing rate, yet will still be at a meaningful level until 2028; (iv) charges related mainly to the non-cashamortization of intangible assets created as part of the Purchase Price Allocation (PPA) on acquisitions, with noimpact on the ongoing performance of the companies acquired.Excluding the impact of the abovementioned non-operational items, the operating expenses were lower in the thirdquarter and first nine months of 2024, following undertaking tight OPEX management measures, including theimpact of initiatives included in the Company's transformation plan and the positive impact of exchange rates.
(4) Financial Expenses
“Financial Expenses” alone mainly reflect interest payments on corporate bonds and bank loans as well as foreignexchange gains/losses on the bonds and other monetary assets and liabilities before the Company carries out anyhedging.The impact of Financial Expenses (before hedging) is an expense of RMB 1,220 million ($172 million) for the ninemonths of 2024 compared with an expense of RMB 687 million ($98 million) for the corresponding period in 2023.
Given the global nature of its operational activities and the composition of its assets and liabilities, the Company, inthe ordinary course of its business, uses foreign currency derivatives (forwards and options) to hedge the cash flowrisks 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 236 million ($33 million) in the first ninemonths of 2024, mainly due to hedging transactions, compared with a net loss of RMB 1,069 million ($153 million)in the corresponding period in 2023.The aggregate of Financial Expenses and Gains/Losses from Changes in Fair Value (hereinafter as “Total NetFinancial Expenses”), which more comprehensively reflects the financial expenses of the Company in supportingits main business and protecting its monetary assets/liabilities, amounts to RMB 1,456 million ($205 million) in thenine months of 2024 compared with RMB 1,755 million ($251 million) in the corresponding period in 2023.In the nine-month period the financial expenses were lower also due to lower interest paid on loans in light of thepositive cash flow achieved, better loan mix and improved efficiency of cash management as well as the net impactof a lower Israeli CPI on the ILS-denominated CPI-linked bonds.In the third quarter of 2024, the financial expenses were slightly higher due to higher hedging costs on exchangerates, the net impact of a higher Israeli CPI on the ILS-denominated CPI-linked bonds moderated by lower interestpaid on loans following a decrease in loans in light of the positive cash flow achieved, better loan mix and improvedefficiency of cash management.
(5) Income Tax Expenses
Despite reaching losses before tax, the Company recorded tax expenses in the third quarter and first nine monthsof the year mainly because the losses were primarily incurred by subsidiaries with relatively lower tax rates, whilesome of them did not create deferred tax assets on the losses. On the other hand, the subsidiaries that generatedprofit have a higher tax rate.In first nine months of 2024 the company recorded tax expenses due to the non-cash impact of the weakness ofthe BRL compared with tax income due to stronger BRL in the first nine months of 2023. In the third quarter of 2024the company recorded tax income due to the non-cash impact of the stronger BRL compared with tax expensesdue to the weakness of the BRL in the third quarter of 2023.
Changes in main assets and liabilities
Unit: RMB’000
| Assets and liabilities | End of Reporting Period | End of last year | +/- (%) | Explanation |
| Derivative financial assets | 265,314 | 850,137 | -68.79% | Changes due to revaluation of derivatives |
| Other receivables | 597,488 | 1,054,302 | -43.33% | Mainly decrease in receivables in respect of securitization transaction |
| Derivative financial liabilities | 177,091 | 607,787 | -70.86% | Changes due to revaluation of derivatives |
| Bills payable | 370,438 | 613,507 | -39.62% | Decrease in the procurement of goods |
| Other payables | 2,200,118 | 1,469,319 | 49.74% | Mainly increase liabilities in respect of securitization transaction and accrued expenses |
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 Shareholders as of the End of the Reporting Period | 39,491 (the number of ordinary A share shareholders is 27,293; the number of B share shareholders is 12,198) | Total Number of Preference Shareholders with Vote Right Restored (if any) as of the End of the Reporting Period | 0 | |||
| Shareholding of Top 10 Shareholders (Excluding the Shares Lent through Refinancing) | ||||||
| Name of Shareholder | Nature of Shareholder | Holding Percentage (%) | Number of Shareholding at the End of the Reporting Period | Number of Common Shares Held Subject to Trading Moratorium | Pledged, Marked or Frozen Shares | |
| Status of Shares | Status of Shares | |||||
| Syngenta Group Co., Ltd. | State-owned Legal Person | 78.47% | 1,828,137,961 | -- | -- | -- |
| China Structural Reform Fund | State-owned Legal Person | 1.44% | 33,557,046 | -- | -- | -- |
| China Cinda Asset Management Co., Ltd. | State-owned Legal Person | 1.34% | 31,115,916 | -- | -- | -- |
| Hong Kong Securities Clearing Company Ltd. (HKSCC) | Overseas Legal Person | 0.48% | 11,103,355 | -- | -- | -- |
| Wu Feng | Domestic Natural Person | 0.30% | 6,976,369 | -- | -- | -- |
| Zhu Shenglan | Domestic Natural Person | 0.25% | 5,756,000 | -- | -- | -- |
| Qichun County State-owned Assets Supervision and Administration Bureau | State-owned Legal Person | 0.18% | 4,169,266 | |||
| Zhang Jianwei | Domestic Natural Person | 0.16% | 3,758,501 | -- | -- | -- |
| Cai Wenxi | Domestic Natural Person | 0.15% | 3,591,200 | -- | -- | -- |
Liu Minqin
| Liu Minqin | Domestic Natural Person | 0.15% | 3,514,600 | -- | -- | -- | ||||
| Shares Held by Top 10 Shareholders Not Subject to Trading Moratorium (Excluding the Shares Lent through Refinancing and Restricted Shares of Executives) | ||||||||||
| Name of Shareholders | Number of Shares Held Not Subject to Trading Moratorium at the End of the Period | Type of Shares | ||||||||
| Type of Shares | Amount | |||||||||
| Syngenta Group Co., Ltd. | 1,828,137,961 | RMB Ordinary Share | 1,828,137,961 | |||||||
| China Structural Reform Fund | 33,557,046 | RMB Ordinary Share | 33,557,046 | |||||||
China Cinda AssetManagement Co., Ltd.
| China Cinda Asset Management Co., Ltd. | 31,115,916 | RMB Ordinary Share | 31,115,916 | |
| Hong Kong Securities Clearing Company Ltd. (HKSCC) | 11,103,355 | RMB Ordinary Share | 11,103,355 | |
| Wu Feng | 6,976,369 | RMB Ordinary Share | 6,976,369 | |
| Zhu Shenglan | 5,756,000 | RMB Ordinary Share | 5,756,000 | |
| Qichun County State-owned Assets Supervision and Administration Bureau | 4,169,266 | RMB Ordinary Share | 4,169,266 | |
| Zhang Jianwei | 3,758,501 | RMB Ordinary Share | 3,758,501 | |
| Cai Wenxi | 3,591,200 | RMB Ordinary Share | 3,591,200 | |
| Liu Minqin | 3,514,600 | RMB Ordinary Share | 3,514,600 | |
| Explanation on associated relationship among the above-mentioned shareholders, or explanation on acting-in-concert | Syngenta Group Co., Ltd. is neither a related party to any other shareholders listed above, nor any acting-in-concert party as prescribed in the Administrative Methods for Acquisition of Listed Companies. It is unknown whether the other shareholders are related parties or acting-in-concert parties as prescribed in the Administrative Methods for Acquisition of Listed Companies. | |||
| Particular about the top ten shareholder participating in the securities financing business (if any) | Shareholder Wu Feng held 4,934,443 shares of the Company through a common securities account and 2,041,926 shares of the Company through a credit collateral securities trading account, altogether 6,976,369 shares. Shareholder Zhu Shenglan held 5,756,000 shares of the Company through a credit collateral securities trading account. Shareholder Liu Minqin held 75,900 shares of the Company through a common securities account of the Company and 3,438,700 shares of the Company through a credit collateral securities trading account, altogether 3,514,600 shares. | |||
Shareholders holding more than 5% of shares, top ten shareholders and top ten shareholders with unlimited shares incirculation participating in the shares lending through refinancing arrangement
□Applicable √ Not applicable
Change of top ten shareholders and top ten shareholders with unlimited shares in circulation from the previous perioddue to the shares lending/returning through refinancing arrangement
□ Applicable √ Not applicable
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
IV. Financial Statementsi. Financial Statements
1. Consolidated balance sheet
Prepared by ADAMA Ltd.
30 September 2024
Unit: RMB’000
| Item | September 30, 2024 | December 31, 2023 | Item | September 30, 2024 | December 31, 2023 |
| Current assets: | Current liabilities: | ||||
| Cash at bank and on hand | 4,178,099 | 4,881,328 | Short-term loans | 4,644,761 | 5,733,522 |
| Financial assets held for trading | 1,815 | 1,912 | Derivative financial liabilities | 177,091 | 607,787 |
| Derivative financial assets | 265,314 | 850,137 | Bills payable | 370,438 | 613,507 |
| Bills receivable | 103,920 | 86,303 | Accounts payable | 4,954,899 | 4,649,733 |
| Accounts receivable | 7,833,025 | 8,146,677 | Contract liabilities | 1,499,076 | 1,514,365 |
| Receivables financing | 129,083 | 123,050 | Employee benefits payable | 778,090 | 847,039 |
| Prepayments | 341,593 | 305,883 | Taxes payable | 482,546 | 407,230 |
| Other receivables | 597,488 | 1,054,302 | Other payables | 2,200,118 | 1,469,319 |
| Inventories | 12,192,237 | 13,088,757 | Non-current liabilities due within one year | 1,929,361 | 2,297,888 |
| Other current assets | 1,212,326 | 1,083,714 | Other current liabilities | 721,950 | 753,827 |
| Total current assets | 26,854,900 | 29,622,063 | Total current liabilities | 17,758,330 | 18,894,217 |
| Non-current assets: | Non-current liabilities: | ||||
| Long-term receivables | 138,298 | 68,752 | Long-term loans | 2,665,546 | 2,885,939 |
| Long-term equity investments | 31,035 | 31,474 | Debentures payable | 6,612,750 | 6,919,423 |
| Other equity investments | 129,530 | 132,018 | Lease liabilities | 606,666 | 495,459 |
| Investment properties | 20,918 | 22,145 | Long-term accounts payable | 181,617 | 97,840 |
| Fixed assets | 10,264,863 | 10,040,113 | Long-term employee benefits payables | 569,956 | 671,530 |
| Construction in progress | 1,968,178 | 2,507,328 | Provisions | 319,135 | 299,251 |
| Right-of-use assets | 555,004 | 625,235 | Deferred tax liabilities | 303,751 | 297,103 |
| Intangible assets | 4,764,763 | 5,318,281 | Other non-current liabilities | 2,722,828 | 2,920,566 |
| Goodwill | 4,949,354 | 5,001,538 | Total non-current liabilities | 13,982,249 | 14,587,111 |
| Deferred tax assets | 1,460,320 | 1,601,641 | Total liabilities | 31,740,579 | 33,481,328 |
| Other non-current assets | 382,333 | 435,215 | Shareholders’ equity: | ||
| Total non-current assets | 24,664,596 | 25,783,740 | Share capital | 2,329,812 | 2,329,812 |
| Total assets | 51,519,496 | 55,405,803 | Capital reserves | 12,950,464 | 12,950,464 |
| Other comprehensive income | 1,446,139 | 1,675,896 | |||
| Special reserves | 8,418 | 16,595 | |||
| Surplus reserves | 273,617 | 273,617 | |||
| Retained earnings | 2,770,467 | 4,678,091 | |||
| Total equity attributed to the shareholders of the company | 19,778,917 | 21,924,475 | |||
| Non-controlling interests | - | - | |||
| Total equity | 19,778,917 | 21,924,475 | |||
| Total liabilities and equity | 51,519,496 | 55,405,803 |
| Gael Hili Legal representative | Efrat Nagar Chief of the accounting work | Efrat Nagar Chief of the accounting organ |
2. Consolidated income statement for the period from the year-beginning to the end of the Reporting Period
Unit: RMB’000
| Item | January-September, 2024 | January-September, 2023 | ||||
| 1. Total operating Income | 21,523,293 | 24,660,104 | ||||
| Less: Cost of sales | 16,748,146 | 19,435,730 | ||||
| Taxes and surcharges | 71,856 | 79,817 | ||||
| Selling and Distribution expenses | 3,408,333 | 3,206,154 | ||||
| General and Administrative expenses | 817,172 | 713,482 | ||||
| Research and Development expenses | 319,977 | 372,361 | ||||
| Financial expenses | 1,220,073 | 686,670 | ||||
| Including: Interest expense | 792,488 | 873,611 | ||||
| Interest income | 181,974 | 235,730 | ||||
| Add: Investment income, net | 8,386 | 17,134 | ||||
| Including: Income from investment in associates and joint ventures | 6,062 | 4,393 | ||||
| Loss from changes in fair value | (235,775) | (1,068,797) | ||||
| Credit impairment losses | (85,475) | (46,205) | ||||
| Asset Impairment losses | (157,247) | (228,926) | ||||
| Gain from disposal of assets | 39,823 | 26,971 | ||||
| 2. Operating loss | (1,492,552) | (1,133,933) | ||||
| Add: Non-operating income | 69,143 | 61,910 | ||||
| Less: Non-operating expense | 19,195 | 32,153 | ||||
| 3. Total loss | (1,442,604) | (1,104,176) | ||||
| Less: income tax expense (income) | 395,508 | (61,703) | ||||
| 4. Net loss | (1,838,112) | (1,042,473) | ||||
| 4.1 Classified by nature of operations | ||||||
| 4.1.1 Continuing operations | (1,838,112) | (1,042,473) | ||||
| 4.2 Classified by ownership | ||||||
| 4.2.1 Shareholders of the Company | (1,838,112) | (1,042,473) | ||||
| 4.2.2 Non-controlling interests | - | - | ||||
| 5. Other comprehensive income (loss) net of tax | (229,757) | 749,395 | ||||
| Other comprehensive income (loss) net of tax attributable to shareholders of the Company | (229,757) | 749,395 | ||||
| 5.1 Items that will not be reclassified into profit/loss | 4,545 | 15,564 | ||||
| 5.1.1 Re-measurement of defined benefit plan liability | 4,545 | 15,564 | ||||
| 5.2 Items that were or will be reclassified to profit or loss | (234,302) | 733,831 | ||||
| 5.2.1 Effective portion of gains or loss of cash flow hedge | (7,805) | 56,675 | ||||
| 5.2.2 Translation differences of foreign financial statements | (226,497) | 677,156 | ||||
| Other comprehensive income net of tax attributable to Non-controlling interests | - | - | ||||
| 6. Total comprehensive loss for the period | (2,067,869) | (293,078) | ||||
| Total comprehensive loss attributable to shareholders of the Company | (2,067,869) | (293,078) | ||||
| Total comprehensive income attributable to Non-controlling interests | - | - | ||||
| 7. Earnings (loss) per share | ||||||
| 7.1 Basic earnings (loss) per share (RMB/ share) | (0.7890) | (0.4474) | ||||
| 7.2 Diluted earnings per share (RMB/ share) | N/A | N/A | ||||
| Gael Hili Legal representative | Efrat Nagar Chief of the accounting work | Efrat Nagar Chief of the accounting organ | ||||
3. Consolidated cash flow statement for the period from the year-beginning to the end of the Reporting
Period
Unit: RMB’000
| Item | January-September, 2024 | January-September, 2023 |
| 1. Cash flows from operating activities: | ||
| Cash received from sale of goods and rendering of services | 20,852,442 | 24,801,386 |
| Refund of taxes and surcharges | 165,239 | 120,349 |
| Cash received relating to other operating activities | 343,229 | 360,690 |
| Sub-total of cash inflows from operating activities | 21,360,910 | 25,282,425 |
| Cash paid for goods and services | 12,964,858 | 18,461,118 |
| Cash paid to and on behalf of employees | 2,997,725 | 3,439,222 |
| Payments of taxes and surcharges | 428,866 | 487,549 |
| Cash paid relating to other operating activities | 2,107,229 | 2,368,706 |
| Sub-total of cash outflows from operating activities | 18,498,678 | 24,756,595 |
| Net cash flows from operating activities | 2,862,232 | 525,830 |
| 2. Cash flows from investing activities: | ||
| Cash receipts from disposal of investments | 83,249 | 171,646 |
| Cash received from investment income | - | 4,637 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 242,278 | 36,850 |
| Cash received for other investing activities | 2,325 | 37,984 |
| Sub-total of cash inflows from investing activities | 327,852 | 251,117 |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | 1,074,140 | 1,706,970 |
| Cash paid for acquisition of investments | - | 2,843 |
| Net cash paid to acquire subsidiaries or other business units | - | 148,460 |
| Cash paid for other investing activities | 120,132 | 6,481 |
| Sub-total of cash outflows from investing activities | 1,194,272 | 1,864,754 |
| Net cash flows from investing activities | (866,420) | (1,613,637) |
| 3. Cash flows from financing activities: | ||
| Cash received from borrowings | 1,311,257 | 4,458,035 |
| Cash received relating to other financing activities | 805,600 | 1,191,050 |
| Sub-total of cash inflows from financing activities | 2,116,857 | 5,649,085 |
| Cash repayment of borrowings | 3,588,782 | 1,973,706 |
| Cash payment for dividends, profit distributions or interest | 788,921 | 915,438 |
| Including: dividends paid to non-controlling interest | 69,512 | 91,597 |
| Cash paid relating to other financing activities | 442,213 | 723,786 |
| Sub-total of cash outflows from financing activities | 4,819,916 | 3,612,930 |
| Net cash flows from financing activities | (2,703,059) | 2,036,155 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | (21,111) | 107,187 |
| 5. Net increase (decrease) in cash and cash equivalents | (728,358) | 1,055,535 |
| Add: Cash and cash equivalents at the beginning of the period | 4,857,358 | 4,225,253 |
| 6. Cash and cash equivalents at the end of the period | 4,129,000 | 5,280,788 |
ii. Impact of initial application of new accounting standards on the opening balances of
current year
□ Applicable √ Not applicable
iii. Auditor’s reportIs this Report audited?
□ Yes √ NoThis Report is unaudited.
Board of Directors
ADAMA Ltd.October 31, 2024