ADAMA Ltd. First Quarter Report 2024
The Company and all members of its board of directors hereby confirm that all informationdisclosed herein is true, accurate and complete with no false or misleading statement ormaterial omission.
ADAMA LTD.
FIRST 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 over 100 countries globally.Please see important additional information and further details included in the Annex.
April 2024
ADAMA Ltd. First Quarter Report 2024
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.Steve Hawkins, the person leading the Company (President and Chief ExecutiveOfficer) as well as its legal representative, and Efrat Nagar, the person leading theaccounting function and the accounting body (Chief Financial Officer), hereby assertand confirm the truthfulness, accuracy and completeness of the financial informationcontained in the Report.The First 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 Financial Data
1. Main accounting and financial results
Whether the Company performs any retroactive adjustments to, or restatements of, its accounting dataof last year
□ Yes √ No
| January - March 2024 | January - March 2023 | YoY +/- (%) | |
| Operating revenues (RMB’000) | 7,508,899 | 8,610,576 | -12.79% |
| Net profit attributable to shareholders of the Company (RMB’000) | (227,605) | 83,273 | -373.32% |
| Net profit attributable to shareholders of the Company excluding non-recurring profit and loss (RMB’000) | (250,690) | 44,893 | -658.42% |
| Net cash flow from operating activities (RMB’000) | (735,162) | (2,905,168) | 74.69% |
| Basic EPS (RMB/share) | (0.098) | 0.036 | -372.22% |
| Diluted EPS (RMB/share) | NA | NA | NA |
| Weighted average return on net assets | -1.04% | 0.36% | -1.40% |
| End of Reporting Period | End of last year | +/- (%) | |
| Total assets (RMB’000) | 54,702,737 | 55,405,803 | -1.27% |
| Net assets attributable to shareholders (RMB’000) | 21,662,821 | 21,924,475 | -1.19% |
2. Non-Recurring profit/loss
√ Applicable □ Not applicable
Unit: RMB’000
| Item | January-March 2024 | Note |
| Gains/losses on the disposal of non-current assets (including the write-off of asset impairment provisions accrued during the period) | 1,159 | - |
| 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 standard) | 1,716 | - |
| Reversal of provision for receivables and contract assets, that are subject to specific provision | 8,879 | - |
| Post vesting cash share based payment revaluation | 11,206 | |
| Other non-operating income and expenses other than the above | 5,017 | - |
| Other profit or loss that meets the definition of non-recurring profit or loss | - | - |
| Less: Income tax effects | 4,892 | - |
| Total | 23,085 | - |
Explanation of other profit or loss that meets the definition of non-recurring profit or loss
□ Applicable √ Not applicable
No such cases during the Reporting Period.
Explanation of why the Company classified an item as non-recurring profit/loss according to the definitionin the First Explanatory Announcement on Information Disclosure for Companies Offering their Securitiesto the Public. Non-recurring Profit and Loss, and reclassified any non-recurring profit/loss item given asan example in the said explanatory announcement to recurrent profit/loss
□ Applicable √ Not applicable
No such cases during the Reporting Period.
3. Changes in main accounting statement items and financial indicators in the ReportingPeriod, as well as reasons for the changes
√ Applicable □ Not applicable
General Crop Protection Market Environment
Key commodity crop prices continued to decline in the first months of 2024 and global supply continued to improve. Cropprices remain above average historical levels but the current price level has a negative impact on farmer income comparedto previous years. Despite this, farmer demand is expected to remain stable under the current conditions. The channelinventory situation is easing up, but there still remains above average inventories in several geographies, including Brazil.In addition, the high interest rate environment, continue to drive a just-in-time purchasing approach by the channel. Activeingredient prices from China remained low during Q1 with some molecules even experiencing further price declines, onone hand reducing input costs but on the other creating pricing pressure on crop protection products and supporting a"wait and see" approach in the market.
Update on the War Situation in IsraelADAMA is headquartered in Israel and has three manufacturing sites in the country. Following October 7
th, 2023, theCompany continued the production in its global manufacturing sites and in Israel, with certain non-significant restrictions(which have been lifted in February 2024). This situation did not have a material impact on the Company's ability to supportits markets or on ADAMA’s consolidated financial results.On the 14
thof April, Israel was under an attack from Iran, with no consequences to the Company's ongoing activities.
Update on Impact of Shipping ObstructionsIn January 2024 some major shipping lines announced that they will suspend shipping to Israel through Israeli ports andthrough the Suez Canal due to tensions in the Red Sea. This has led to longer transportation times, with shipping linesbeing diverted around Africa.As of the date of publication of this report, shipping time and costs have increased significantly, mainly in the Asia-PacificIsrael route in comparison to before January 2024. These cost increases impact only a small portion of the Company'soverall shipping costs and ADAMA has been ordering relevant materials ahead of time to ensure timely supply. Currently,the Company does not anticipate this to have a significant impact on its financial results or on the ongoing supply ofmaterials to its production facilities, although this situation might impact the company's ability to respond quickly to changingmarket demand.
Sources: CCPIA (China Crop Protection Industry Association), BAIINFO, FocusEconomics, Peer quarterly financial reports, internalsources.
| Q1 2024 (000’RMB) | Same period last year (000’RMB) | +/-% | Q1 2024 (000’USD) | Same period last year (000’USD) | +/-% |
Revenues
| Revenues | 7,508,899 | 8,610,576 | -12.79% | 1,057,150 | 1,258,525 | -16.00% |
Cost of goodssold
| Cost of goods sold | 5,688,352 | 6,492,832 | -12.39% | 800,840 | 948,997 | -15.61% |
Sales &Marketingexpenses
| Sales & Marketing expenses | 1,080,738 | 1,065,293 | 1.45% | 152,154 | 155,702 | -2.28% |
General &Administrativeexpenses
| General & Administrative expenses | 280,258 | 266,369 | 5.21% | 39,456 | 38,929 | 1.35% |
R&Dexpenses
| R&D expenses | 111,852 | 134,902 | -17.09% | 15,747 | 19,717 | -20.13% |
FinancialExpenses
| Financial Expenses | 367,164 | 206,712 | 77.62% | 51,705 | 30,222 | 71.08% |
Loss fromChanges inFair Value
| Loss from Changes in Fair Value | (148,935) | (352,126) | -57.70% | (20,968) | (51,467) | -59.26% |
Total NetFinancialExpenses
| Total Net Financial Expenses | 516,099 | 558,838 | -7.65% | 72,673 | 81,689 | -11.04% |
Total profits(losses)
| Total profits (losses) | (151,293) | 71,111 | -312.75% | (21,310) | 10,386 | -305.19% |
Income taxexpenses(income)
| Income tax expenses (income) | 76,312 | (12,162) | 727.46% | 10,744 | (1,777) | 704.61% |
Net profit(loss)attributable toshareholdersof theCompany
| Net profit (loss) attributable to shareholders of the Company | (227,605) | 83,273 | -373.32% | (32,054) | 12,163 | -363.54% |
EBITDA
| EBITDA | 855,727 | 1,134,723 | -24.59% | 120,476 | 165,852 | -27.36% |
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.In this table and all tables in this report numbers may not sum due to rounding.Analysis of Financial Highlights
(1) Revenues
Revenues in the first quarter declined by approximately 16% (-13% in RMB terms; -14% in CER terms) to $1,057 million,presenting a decrease of 10% in prices and a decrease of 5% in volumes. The lower sales reflect lower market prices andlower demand, attributed to the market dynamics of pricing pressure, high competition and a "wait and see" approachmainly in commoditized products as well as unfavorable weather conditions in some regions and the channel opting tohold lower levels of inventory and purchase closer to the season in light of higher interest rates.
Regional Sales Performance
Europe, Africa & Middle East (EAME): Sales in EAME decreased in the first quarter of 2024 led by a contraction in theoverall European crop protection market mainly from low demand following channel destocking, erratic spring seasoncausing just-in-time purchasing patterns and lower famer demand in areas impacted by lower grain market prices. Thismarket also experienced pricing pressure, mainly in commoditized products.North America: Consumer & Professional Solutions - Sales were lower as demand from the end-users in both theconsumer and professional markets slowly recovered during the first quarter. Declining active ingredient prices fromChina supported "just-in-time" purchasing patterns.In the US Ag market sales in the first quarter of 2024 were lower reflecting weak pricing, lower demand and strongcompetition. The overall pricing was lower in the first quarter of 2024 than in the first quarter of 2023, as market pricesbegan to decline only during the second quarter of 2023. While channel inventory levels are steadily declining, demand isbeing impacted by sales being pushed closer to season application, while the channel is opting to hold lower inventorylevels due to high interest rates.ADAMA's sales in Canada declined in the first quarter in light of lower prices, a "wait and see" approach in the market,high fungicide channel inventories, as well as strong competition particularly in commoditized products.Latin America: Brazil – the Company's sales in the first quarter following the overall challenging crop protection marketdue to unfavorable weather conditions, a "wait and see" approach" in the market and softer pricing impacted by strongcompetition, particularly in commoditized products. Despite this, the Company's differentiated products continued to bewell received in the market.In the rest of LATAM sales in the first quarter reflected the overall challenging crop protection market due to unfavorableweather conditions in Northern LATAM and "wait and see" purchasing patterns combined with softer pricing incommoditized products. Despite this, the Company's differentiated products in key strategic crop segment continued tobe well received in the market.Asia Pacific: In China, the branded formulations achieved business growth in constant exchange rates driven by bio-formulation new launches and well-prepared spring campaign while the Company also focused on improving the qualityof the business with differentiated products despite that the market is still experiencing high channel inventories andpricing pressure especially in commodities. Market pricing in the non-ag business began normalizing from heights seenin recent years and the tech sales were mainly impacted by a "wait and see" approach in the market.In the Pacific region, sales in the first quarter were impacted by softer pricing following decline of active ingredientsprices from China as well as overall high channel inventories. This was despite better weather conditions than anticipatedin Australia.Sales in India were impacted by softer pricing, exceptionally dry and hot weather, high channel inventories as well as
| Q1 2024 $m | Q1 2023 $m | Change % USD |
Europe, Africa & Middle East (EAME)
| Europe, Africa & Middle East (EAME) | 368 | 430 | -14.5% |
North America
| North America | 191 | 211 | -9.4% |
Latin America
| Latin America | 191 | 233 | -18.1% |
Asia Pacific*
| Asia Pacific* | 307 | 384 | -20.0% |
Of which China
| Of which China | 154 | 182 | -15.5% |
Total
| Total | 1,057 | 1,259 | -16.0% |
"wait-and-see" purchasing behaviour in commoditized products.Sales in the wider APAC region continued to experience pricing pressure following intense competition from China,particularly in commoditized products, while dry weather and higher channel inventories impacted demand.
(2) Cost of Goods and Gross Profit
In the first quarter of 2024, the new inventory sold, priced at market levels, the management focus on the quality ofbusiness which led to an improvement in the sales mix of higher margin products and the lower transportation andlogistic costs had a positive impact on the cost of goods and gross profit and this is despite the lower sales impactedby the decrease in prices and volumes and the negative impact of the exchange rates.
(3) Operating Expenses
Operating expenses include Sales and Marketing, General and Administration and R&D.The Company recorded certain non-operational, mostly non-cash, charges within its reported operating expensesamounting to RMB 136 million ($19.2 million) in Q1 2024 in comparison to RMB 65 million ($9.5 million) in Q1 2023,mainly as follows:
(i) measures to improve efficiencies, (ii) non-cash amortization charges in respect of Transfer Assets received fromSyngenta related to the 2017 ChemChina-Syngenta acquisition, (iii) charges related to the non-cash amortizationof intangible assets created as part of the Purchase Price Allocation (PPA) on acquisitions, with no impact on theongoing performance of the companies acquired,. For further details on these non-operational items, please seethe appendix to this releaseExcluding the impact of the abovementioned non-operational charges, the operating expenses were lower in thefirst quarter of 2024, following undertaking tight OPEX management measures.
(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, net (before hedging) is RMB 367 million ($52 million) for Q1 2024,compared with Financial Expenses, net of RMB 207 million ($30 million) for the corresponding periods 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 149 million ($21 million) in Q1 2024,mainly due to hedging transactions, compared with a net loss of RMB 352 million ($51 million) in the correspondingperiod 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 516 million ($73 million) in Q1 2023compared with RMB 559 million ($82 million) in the corresponding period in 2023.The lower financial expenses in the quarter were mainly due to the net effect of lower Israeli CPI on the ILS-denominated, CPI-linked bonds as well as steps taken by the Company's management to optimize the Company'sfinancing structure. The Company took advantage of the high interest rate environment to increase interest receivedfrom weekly bank deposits designated to support working capital, as well as improved financing terms andleveraged group funding possibilities by taking long-term loans in China at attractive rates, which minimized the
increase in bank interest expenses paid in the first quarter of 2024.
(5) Income Tax Expenses
Despite reaching losses before tax, the Company recorded tax expenses in the quarter mainly because the losseswere primarily incurred by subsidiaries with relatively lower tax rates, while some of them did not create deferredtax assets on the losses. On the other hand, the subsidiaries that generated profit have a higher tax rate. In the firstquarter of 2024 the Company recorded tax expenses due to the non-cash impact of the weakness of the BRLcompared with tax income due to stronger BRL in the first quarter of 2023.Changes in main assets and liabilities
Unit: 000 RMB
| Assets and liabilities | End of Reporting Period | End of last year | +/- (%) | Explanation |
| Derivative financial assets | 128,562 | 850,137 | -84.88% | Realization and revaluation of derivatives |
| Other receivables | 1,635,491 | 1,054,302 | 55.13% | Increase mainly due to securitization programs |
| Derivative financial liabilities | 325,092 | 607,787 | -46.51% | Realization and revaluation of derivatives |
| Taxes payable | 561,490 | 407,230 | 37.88% | Seasonality increase mainly due to VAT |
II. Information regarding Shareholders
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
| Total number of ordinary shareholders at the end of the Reporting Period | 41,099 (the number of ordinary A share shareholders is 28,482; the number of B share shareholders is 12,617) | Total number of preference shareholders who had resumed their voting right at the end of the Reporting Period (if any) | 0 | |||
| Shareholdings of top 10 shareholders (not including Shares Lent for the Relending Financing) | ||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Number of shares held | Number of restricted shares held | Pledged or frozen shares | |
| Status | Status | |||||
| Syngenta Group Co., Ltd. | State-owned legal person | 78.47% | 1,828,137,961 | -- | -- | -- |
China Cinda AssetManagement Co.,Ltd.
| China Cinda Asset Management Co., Ltd. | State-owned legal person | 1.34% | 31,115,916 | -- | -- | -- |
| Bosera Funds-China Merchants Bank- Bosera Funds Xincheng No.2 Collective Asset Management Plan | Others | 0.28% | 6,500,000 | -- | -- | -- |
| Wu Feng | Domestic Individual | 0.28% | 6,495,369 | -- | -- | -- |
| Bosera Funds-Postal Savings Bank- Bosera Funds Xincheng No.3 Collective Asset Management Plan | Others | 0.26% | 6,000,000 | -- | -- | -- |
| Zhu Shenglan | Domestic Individual | 0.25% | 5,756,000 | -- | -- | -- |
| Agricultural Bank of China- CSI 500 Exchange Traded Open-end Index Securities Investment Fund | Others | 0.25% | 5,720,984 | -- | -- | -- |
| Hong Kong Securities Clearing Company Ltd. (HKSCC) | Overseas legal person | 0.20% | 4,756,753 | -- | -- | -- |
| China Universal Fund-Industrial Bank-China Universal-Strategic Enhancement No.3 Collective Asset Management Plan | Others | 0.19% | 4,400,000 | -- | -- | -- |
Qichun CountyState-owned AssetsSupervision andAdministrationBureau
| Qichun County State-owned Assets Supervision and Administration Bureau | State-owned legal person | 0.18% | 4,169,266 | -- | -- | -- | ||
| Shareholdings of top 10 non-restricted shareholders | ||||||||
| Name of shareholder | Number of non-restricted shares held at the period-end | Types of Shares | ||||||
| Type | Number | |||||||
| Syngenta Group Co., Ltd. | 1,828,137,961 | RMB ordinary share | 1,828,137,961 | |||||
| China Cinda Asset Management Co., Ltd. | 31,115,916 | RMB ordinary share | 31,115,916 | |||||
| Bosera Funds-China Merchants Bank- Bosera Funds Xincheng No.2 Collective Asset Management Plan | 6,500,000 | RMB ordinary share | 6,500,000 | |||||
| Wu Feng | 6,495,369 | RMB ordinary share | 6,495,369 | |||||
| Bosera Funds-Postal Savings Bank- Bosera Funds Xincheng No.3 Collective Asset Management Plan | 6,000,000 | RMB ordinary share | 6,000,000 | |||||
| Zhu Shenglan | 5,756,000 | RMB ordinary share | 5,756,000 | |||||
Agricultural Bank of China- CSI500 Exchange Traded Open-endIndex Securities Investment Fund
| Agricultural Bank of China- CSI 500 Exchange Traded Open-end Index Securities Investment Fund | 5,720,984 | RMB ordinary share | 5,720,984 |
| Hong Kong Securities Clearing Company Ltd. (HKSCC) | 4,756,753 | RMB ordinary share | 4,756,753 |
| China Universal Fund-Industrial Bank-China Universal-Strategic Enhancement No.3 Collective Asset Management Plan | 4,400,000 | RMB ordinary share | 4,400,000 |
| Qichun County State-owned Assets Supervision and Administration Bureau | 4,169,266 | RMB ordinary share | 4,169,266 |
| Explanation on associated relationship or/and persons | Syngenta Group Co., Ltd. is not related party or acting-in-concert party as prescribed in the Administrative Methods for Acquisition of Listed Companies to other shareholders. It is unknown to the Company whether shareholders 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 securities | Shareholder Wu Feng held 4,848,843 shares of the Company through a common securities account and 1,646,526 shares of the Company through a credit collateral securities trading account, altogether 6,495,369 shares. Shareholder Zhu Shenglan held 5,756,000 shares of the Company through a credit collateral securities trading | ||
| lending and borrowing business (if any) | account. |
2. Involvement of Shareholders holding more than 5% of shares, Top 10 Shareholders and Top 10
Non-restricted Shareholders in Lending of Shares in the Relending Financing of Funds andSecurities
√ Applicable □ Not applicable
Shareholders holding more than 5% of shares, Top 10 Shareholders and Top 10 Non-restricted Shareholders in
Lending of Shares in the Relending Financing of Funds and SecuritiesName ofShareholders
| Name of Shareholders | Shareholding of Common Securities Account and Credit Collateral Securities Trading Account at the Beginning Period | Shares Lent in Relending Financing of Funds and Securities and Not Yet Returned at the Beginning Period | Shareholding of Common Securities Account and Credit Collateral Securities Trading Account at the Ending Period | Shares Lent in Relending Financing of Funds and Securities and Not Yet Returned at the Ending Period | |||||
| Total Number | Shareholding Proportion of the Total Equity | Total Number | Shareholding Proportion of the Total Equity | Total Number | Shareholding Proportion of the Total Equity | Total Number | Shareholding Proportion of the Total Equity | ||
| Agricultural Bank of China- CSI 500 Exchange Traded Open-end Index Securities Investment Fund | 2,476,484 | 0.11% | 702,000 | 0.03% | 5,720,984 | 0.25% | 515,300 | 0.02% | |
3. Change from the Previous Reporting Period to the Top 10 Shareholders and Top 10 Non-restricted
Shareholders due to the Lending/Returning of Shares in the Relending Financing of Funds andSecurities
□ Applicable √Not Applicable
4. 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.
31 March 2024
Unit: RMB’000
| Item | March 31, 2024 | December 31, 2023 | Item | March 31, 2024 | December 31, 2023 |
| Current assets: | Current liabilities: | ||||
| Cash at bank and on hand | 3,710,053 | 4,881,328 | Short-term loans | 5,299,947 | 5,733,522 |
| Financial assets held for trading | 1,873 | 1,912 | Derivative financial liabilities | 325,092 | 607,787 |
| Derivative financial assets | 128,562 | 850,137 | Bills payable | 516,770 | 613,507 |
| Bills receivable | 63,500 | 86,303 | Accounts payable | 4,833,578 | 4,649,733 |
| Accounts receivable | 9,088,939 | 8,146,677 | Contract liabilities | 1,314,153 | 1,514,365 |
| Receivables financing | 117,203 | 123,050 | Employee benefits payable | 857,844 | 847,039 |
| Prepayments | 309,572 | 305,883 | Taxes payable | 561,490 | 407,230 |
| Other receivables | 1,635,491 | 1,054,302 | Other payables | 1,521,335 | 1,469,319 |
| Inventories | 12,823,850 | 13,088,757 | Non-current liabilities due within one year | 2,068,629 | 2,297,888 |
| Other current assets | 1,076,415 | 1,083,714 | Other current liabilities | 731,913 | 753,827 |
| Total current assets | 28,955,458 | 29,622,063 | Total current liabilities | 18,030,751 | 18,894,217 |
| Non-current assets: | Non-current liabilities: | ||||
| Long-term receivables | 63,039 | 68,752 | Long-term loans | 3,374,215 | 2,885,939 |
| Long-term equity investments | 32,133 | 31,474 | Debentures payable | 6,848,469 | 6,919,423 |
| Other equity investments | 132,245 | 132,018 | Lease liabilities | 473,192 | 495,459 |
| Investment properties | 21,736 | 22,145 | Long-term accounts payable | 96,471 | 97,840 |
| Fixed assets | 9,850,569 | 10,040,113 | Long-term employee benefits payables | 686,613 | 671,530 |
| Construction in progress | 2,682,814 | 2,507,328 | Provisions | 298,188 | 299,251 |
| Right-of-use assets | 606,940 | 625,235 | Deferred tax liabilities | 293,727 | 297,103 |
| Intangible assets | 5,256,827 | 5,318,281 | Other non-current liabilities | 2,938,290 | 2,920,566 |
| Goodwill | 5,009,990 | 5,001,538 | Total non-current liabilities | 15,009,165 | 14,587,111 |
| Deferred tax assets | 1,585,389 | 1,601,641 | Total liabilities | 33,039,916 | 33,481,328 |
| Other non-current assets | 505,597 | 435,215 | Shareholders’ equity: | ||
| Total non-current assets | 25,747,279 | 25,783,740 | Share capital | 2,329,812 | 2,329,812 |
| Total assets | 54,702,737 | 55,405,803 | Capital reserves | 12,950,464 | 12,950,464 |
| Other comprehensive income | 1,647,909 | 1,675,896 | |||
| Special reserves | 10,533 | 16,595 | |||
| Surplus reserves | 273,617 | 273,617 | |||
| Retained earnings | 4,450,486 | 4,678,091 | |||
| Total equity attributed to the shareholders of the company | 21,662,821 | 21,924,475 | |||
| Non-controlling interests | - | - | |||
| Total equity | 21,662,821 | 21,924,475 | |||
| Total liabilities and equity | 54,702,737 | 55,405,803 |
| Steve Hawkins Legal representative | Efrat Nagar Chief of the accounting work | Efrat Nagar Chief of the accounting organ |
2. Consolidated income statement
Unit: RMB’000
| Item | January-March, 2024 | January-March, 2023 |
| 1. Total operating Income | 7,508,899 | 8,610,576 |
| Less: Cost of sales | 5,688,352 | 6,492,832 |
| Taxes and surcharges | 24,598 | 25,849 |
| Selling and Distribution expenses | 1,080,738 | 1,065,293 |
| General and Administrative expenses | 280,258 | 266,369 |
| Research and Development expenses | 111,852 | 134,902 |
| Financial expenses | 367,164 | 206,712 |
| Including: Interest expense | 297,099 | 267,287 |
| Interest income | 64,943 | 43,225 |
| Add: Investment income, net | 4,283 | 3,537 |
| Including: Income from investment in associates and joint ventures | 4,283 | 3,537 |
| Loss from changes in fair value | (148,935) | (352,126) |
| Credit impairment reversal (losses) | (3,461) | 8,639 |
| Asset Impairment reversal (losses) | 11,408 | (41,939) |
| Gain from disposal of assets | 1,160 | 21,825 |
| 2. Operating profit (loss) | (179,608) | 58,555 |
| Add: Non-operating income | 33,200 | 20,237 |
| Less: Non-operating expense | 4,885 | 7,681 |
| 3. Total profit (loss) | (151,293) | 71,111 |
| Less: income tax expense (income) | 76,312 | (12,162) |
| 4. Net profit (loss) | (227,605) | 83,273 |
| 4.1 Classified by nature of operations | ||
| 4.1.1 Continuing operations | (227,605) | 83,273 |
| 4.2 Classified by ownership | ||
| 4.2.1 Shareholders of the Company | (227,605) | 83,273 |
| 4.2.2 Non-controlling interests | - | |
| 5. Other comprehensive income net of tax | (27,987) | (210,116) |
| Other comprehensive income net of tax attributable to shareholders of the Company | (27,987) | (210,116) |
| 5.1 Items that will not be reclassified into profit/loss | (3,377) | 7,936 |
| 5.1.1 Re-measurement of defined benefit plan liability | (3,377) | 7,936 |
| 5.2 Items that were or will be reclassified to profit or loss | (24,610) | (218,052) |
| 5.2.1 Effective portion of gains or loss of cash flow hedge | 13,485 | (9,973) |
| 5.2.2 Translation differences of foreign financial statements | (38,095) | (208,079) |
| Other comprehensive income net of tax attributable to Non-controlling interests | - | - |
| 6. Total comprehensive income for the period | (255,592) | (126,843) |
| Total comprehensive income attributable to shareholders of the Company | (255,592) | (126,843) |
| Total comprehensive income attributable to Non-controlling interests | - | - |
| 7. Earnings (loss) per share | ||
| 7.1 Basic earnings (loss) per share (RMB/ share) | (0.098) | 0.036 |
| 7.2 Diluted earnings (loss) per share (RMB/ share) | N/A | N/A |
| Steve Hawkins Legal representative | Efrat Nagar Chief of the accounting work | Efrat Nagar Chief of the accounting organ |
3. Consolidated cash flow statement
Unit: RMB’000
| Item | January-March, 2024 | January-March, 2023 |
| 1. Cash flows from operating activities: | ||
| Cash received from sale of goods and rendering of services | 5,034,379 | 6,839,010 |
| Refund of taxes and surcharges | 47,216 | 42,714 |
| Cash received relating to other operating activities | 208,380 | 109,137 |
| Sub-total of cash inflows from operating activities | 5,289,975 | 6,990,861 |
| Cash paid for goods and services | 4,151,625 | 7,879,994 |
| Cash paid to and on behalf of employees | 1,020,430 | 1,038,318 |
| Payments of taxes and surcharges | 111,233 | 170,562 |
| Cash paid relating to other operating activities | 741,849 | 807,155 |
| Sub-total of cash outflows from operating activities | 6,025,137 | 9,896,029 |
| Net cash flows from operating activities | (735,162) | (2,905,168) |
| 2. Cash flows from investing activities: | ||
| Cash receipts from investment income | - | 1,710 |
| Cash received from disposal of investments | 134,175 | 46,894 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 3,703 | 26,060 |
| Cash received for other investing activities | - | 14,477 |
| Sub-total of cash inflows from investing activities | 137,878 | 89,141 |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | 468,399 | 580,045 |
| Net cash paid to acquire subsidiaries or other business units | - | 148,460 |
| Cash paid for other investing activities | 142,429 | - |
| Sub-total of cash outflows from investing activities | 610,828 | 728,505 |
| Net cash flows from investing activities | (472,950) | (639,364) |
| 3. Cash flows from financing activities: | ||
| Cash received from borrowings | 863,075 | 3,594,576 |
| Cash received relating to other financing activities | 765,459 | 18,569 |
| Sub-total of cash inflows from financing activities | 1,628,534 | 3,613,145 |
| Cash repayment of borrowings | 1,382,652 | 199,851 |
| Cash payment for dividends, profit distributions or interest | 167,805 | 179,425 |
| Including: dividends paid to non-controlling interest | - | 13,684 |
| Cash paid relating to other financing activities | 61,284 | 383,092 |
| Sub-total of cash outflows from financing activities | 1,611,741 | 762,368 |
| Net cash flows from financing activities | 16,793 | 2,850,777 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | 12,915 | (52,929) |
| 5. Net decrease in cash and cash equivalents | (1,178,404) | (746,684) |
| 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 | 3,678,954 | 3,478,569 |
ii. Auditor’s reportIs this Report audited?
□ Yes √ No
This Report is unaudited.
ADAMA Ltd.
Board of Directors
April 26, 2024