ADAMALtd.AnnouncementonProvidingGuaranteesbyaWholly-ownedSubsidiarytoitsSubsidiary
StockCode:000553(200553)StockAbbreviation:ADAMAA(B)NO.2025-34TheCompanyandallmembersoftheCompany’sBoardofDirectorsconfirmthatallinformationdisclosedhereinistrue,accurateandcomplete,withnofalseormisleadingstatementormaterialomission.
I.OverviewInordertohedgeFXrisks,improveliquidityandtoreducefinancecostsofAdamaUkraineLLC(hereinafterreferredtoas“AdamaUkraine”),anindirectwholly-ownedsubsidiaryofAdamaAgriculturalSolutionsLtd.（hereinafterreferredtoas“Solutions”)whichisinturnawholly-ownedsubsidiaryofADAMALtd.(hereinafterreferredtoasthe“Company”),SolutionsagreestoprovidejointandseveralliabilityguaranteestotwolocalbanksthatwillprovideAdamaUkrainewiththefollowingfinancialaccommodation:
1.intheamountnotexceedingEUR12millionfromalocalbankJSC“INGBank
Ukraine”(guaranteeamount,accordingtothebank’srequirements,shouldbe15%higherthantheprincipalcreditfacilityamount,beingEUR13.8million,tocoverfinancialexpenses,e.g.accruedinterests,penalties);
2.intheamountnotexceedingEUR12millionfromalocalbankRaiffeisenBankJSC
(duetothecreditfacilityincreasefromEUR7milliontoEUR12million).AccordingtotheGuidelinesofShenzhenStockExchangeonSelf-disciplineSupervisionofListedCompaniesNo.1:StandardizedOperationofMainBoardListedCompanies,theaboveguaranteesareprovidedbythewholly-ownedsubsidiaryoftheCompanyforthelegalentityconsolidatedinthefinancialstatementsoftheCompany.Sincethedebt-to-assetsratioofAdamaUkraineexceeds70%,theCompanyconvenedthe15
th
Meetingofthe10
th
SessionoftheBoardofDirectorsonOctober28,2025,toreviewtheProposalonProvidingGuaranteesbyaWholly-ownedSubsidiarytoitsSubsidiaryandagreedtofurthersubmitit
totheCompany'sshareholders'meetingforapproval.II.BasicInformationoftheWarrantee
1.BasicInformationofAdamaUkraineNameoftheWarrantee:AdamaUkraineLLCEstablishedDate:25June2008RegisteredAddress:13,MykolyPymonenkaStreet,Office4A/41,ShevchenkivskyiDistrict,04050Kyiv,UkraineLegalRepresentative:DmytroKashporBusinessScope:Purchase,saleanddistributionofagriculturalchemicalsRelationshipwiththeCompany:SolutionsistheCompany’swholly-ownedsubsidiary,andAdamaUkraineisanindirectlywholly-ownedsubsidiary(100%)ofSolutions.Creditstatus:AftersearchingthewebsiteofdisclosureofenforcementinformationofChina,AdamaUkraineisnotadebtorsubjecttojudicialenforcement.ThemostrecentfinancialsituationofAdamaUkraineisasfollows:
Unit:’000USD
| AtSep302025(unaudited) | AtDec31,2024(audited) | |
| TotalAssets | 51,796 | 42,198 |
| TotalLiabilities | 50,420 | 42,795 |
| BankLoans | 7,745 | - |
| OtherCurrentLiabilities | 42,676 | 42,792 |
| Contingency | - | - |
| NetAssets | 1,376 | -597 |
| JanuarytoSeptember2025(unaudited) | 2024(audited) | |
| Revenue | 54,041 | 69,979 |
| GrossProfit | 12,534 | 13,908 |
| NetProfit | 1,973 | 434 |
III.MainContentsoftheGuaranteesInordertohedgeFXrisks,improveliquidityandtoreducefinancecosts,AdamaUkraineintendstoenterintobankloanswithalocalbank(JSC“INGBankUkraine”)inanamountofnomorethanEUR12million(guaranteeamount,accordingtothebank’srequirements,
shouldbe15%higherthantheprincipalcreditfacilityamount,beingEUR13.8million,tocoverfinancialexpenses,e.g.accruedinterests,penalties).Atthesametime,AdamaUkraineplanstoincreasetheexistingcreditfacilityinRaiffeisenBankJSCfromEUR7milliontoEUR12million.TosupporttheactivitiesinAdamaUkraine,SolutionsintendstoprovidejointandseveralliabilityguaranteestotheabovementionedbanksinatotalamountofnomorethanEUR
25.8million(approximatelyRMB215.04million)inconnectionwiththecreditfacilityandfinancingactivitiesbetweenAdamaUkraineandsuchbanks.Amongthem,theguaranteeamountforJSC“INGBankUkraine”isEUR13.8million(approximatelyRMB115.02million),whichisacontinuingguaranteeandshallremaininfullforceandeffectuntilallguaranteeobligationshavebeenpaid;theguaranteeamountforRaiffeisenBankJSCisEUR12million(approximatelyRMB100.02million)whichshallcontinueuntilSolutionsissuesawrittennoticerevokingthelimitedguarantyletter.IV.OpinionsoftheBoardofDirectorsWithregardtotheguaranteestobeprovidedbySolutionsinfavorofAdamaUkraine(theCompany’sindirectwholly-ownedsubsidiary)foritscreditfacilityandfinancingactivities,theBoardofDirectorsisoftheopinionthat:(i)thisservestomeetAdamaUkraine'sbusinessdevelopmentneedsandalignswiththeCompany'soverallinterests;(ii)thefinancialriskoftheguaranteesisundertheCompany’scontrol;and(iii)theguaranteesneithersignificantlyimpactthenormaloperationoftheCompany,norviolatetherelevantprovisionsoftheCSRCandtheArticlesofAssociationoftheCompany.V.AccumulatedQuantityofExternalGuaranteesandOverdueGuaranteesAsofSeptember30,2025,thebalanceoftheguaranteesthathavebeenprovidedbytheCompanyand/oritssubsidiariesisapproximatelyRMB5,064.94million.Afterprovidingtheaboveguarantees,thebalanceoftheguaranteesprovidedbytheCompanyanditssubsidiarieswillbeapproximatelyRMB5,279.98million,accountingfor27.8%ofthelatestauditednetassetsoftheCompany.NoguaranteeisprovidedbytheCompanyand/oritssubsidiariesforthefavorofentitiesnotconsolidatedintheCompany’sfinancialstatements.TheCompanyanditscontrolledsubsidiariesdonothaveoverdueguarantees.
VI.ListofReferenceDocuments
1.Theresolutionsofthe15thMeetingofthe10thSessionoftheBoardofDirectorsoftheCompany.TheAnnouncementisherebymade.
TheBoardofDirectorsofADAMALtd.
October30,2025