ADAMA Ltd. Semi-Annual Report 2025
ADAMA LTD.SEMI-ANNUAL REPORT 2025
ADAMA Ltd. 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 dozens of countries
globally with direct presence in all top 20 markets.Please see important additional information and further details included in the Annex.August 2025
1ADAMA Ltd. Semi-Annual Report 2025
Section I - Important Notice Table of Contents and Definitions
* 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 statement misleading presentations or material omissions and
assume joint and several legal liability arising therefrom.* Ga?l Hili the person in charge of 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.* All the Company’s directors attended the board meeting for the review of this Report.* The forward-looking information described in this Report such as future plans
development strategy market trends and their effect etc. does not constitute in any
manner whatsoever a substantial commitment of the Company to investors. Investors
and other relevant people are cautioned to be sufficiently mindful of investment risks
as well as the difference between plans forecasts and commitments.* The Company has described its possible risks in “X - Risks Facing the Company andCountermeasures” under Section III herein. The major risks of the Company include
among others exchange rate fluctuations; exposure to interest rate Israel CPI and
NIS exchange rate fluctuations; fluctuations in raw material inputs and prices and in
sales. Investors and other relevant people are cautioned to be sufficiently mindful of
investment risks. For the complete “Risks Facing the Company and Countermeasures”
of the Company please see the relevant section below.* For the Reporting Period the Company does not plan to distribute cash dividends or
bonus shares or convert capital reserve into share capital.* This Report and its Abstract have been prepared in both Chinese and English. Should
there be any discrepancies between the two versions the Chinese version shall prevail.
2ADAMA Ltd. Semi-Annual Report 2025
Table of Contents
Section I - Important Notice Table of Contents and... 2
Section II - Corporate Profile and Financial Resul... 6
Section III - Performance Discussion and Analysis ... 9
Section IV - Corporate Governance Environment and .. 33
Section V - Significant Events ..................... 35
Section VI - Share Changes and Shareholders ........ 77
Section VII - Bonds ................................ 82
Section VIII - Financial Report .................... 83
Section VIIII – Other Reported Data ............... 204
3ADAMA Ltd. Semi-Annual Report 2025
Documents Available for Reference
(I) Duly signed Financial Statements by the Legal Representative and Accounting Principal as well as Head of the
Accounting Organ;
(II) Originals of all Company’s documents previously disclosed in media designated by the CSRC as well as the originals
of all the public notices were deposited in the Company’s office.
4ADAMA Ltd. Semi-Annual Report 2025
Definitions
General Terms Definition
Company the Company ADAMA Ltd.Adama Agricultural Solutions Ltd. a wholly-owned subsidiary of the Company
Adama Solutions
incorporated in Israel according to its laws
ADAMA Anpon (Jiangsu) Ltd. a wholly-owned subsidiary of the Company
Anpon ADAMA Anpon
incorporated in China according to its laws
ADAMA Huifeng (Jiangsu) Ltd. a 51% owned subsidiary of the Company
ADAMA Huifeng
incorporated in China according to its laws
Board of Directors/Board The Board of Directors of the Company
Board of Supervisors The Board of Supervisors of the Company
Group the Group ADAMA The Company including all its subsidiaries unless expressly stated otherwise
ChemChina China National Chemical Co. Ltd.ChemChina-Syngenta
The acquisition of Syngenta AG by ChemChina in 2017
Transaction
China National Agrochemical Co. Ltd. the indirect controlling shareholder of the
CNAC
Company a wholly-owned subsidiary of ChemChina
CSRC China Securities Regulatory Commission
SZSE Shenzhen Stock Exchange
SASAC State Assets Supervision and Administration Commission of China
Syngenta Group Co. Ltd the controlling shareholder of the Company as of June
Syngenta Group
15 2020 a wholly-owned subsidiary of CNAC
Sinochem Holdings Sinochem Holdings Corporation Ltd.Sinochem Holdings including all its subsidiaries unless otherwise indicated or the
Sinochem Group
context otherwise requires
Report This 2025 Semi-Annual Report
Reporting Period this Period January 1 2025 - June 30 2025
2024 Annual Report The Company’s 2024 Annual Report published on March 14 2025
5ADAMA Ltd. Semi-Annual Report 2025
Section II - Corporate Profile and Financial Results
I. Corporate Information
Stock name ADAMA A ADAMA B Stock code 000553 200553
Stock exchange Shenzhen Stock Exchange
Company name in Chinese 安道麦股份有限公司
Abbr. 安道麦
Company name in English (if any) A DAMA Ltd.Abbr. (if any) ADAMA
Legal representative Ga?l Hili
II. Contact Information
Securities Affairs Representative &
Board Secretary
Investor Relations Manager
Name Guo Zhi Wang Zhujun
Address 6/F No.7 Office Building No.10 Courtyard Chaoyang Park South Road Chaoyang District Beijing
Tel. 010-56718110 010-56718110
Fax 010-59246173 010-59246173
E-mail irchina@adama.com irchina@adama.com
III. Other Information
1. Ways to Contact the Company
Indicate by tick mark whether any changes occurred to the registered address office address and their
postal codes website address and email address of the Company during the Reporting Period.□ Applicable √ Not applicable
No changes occurred to the said information during the Reporting Period which can be found in the 2024
Annual Report.
2. Information Disclosure Media and Place where this Report is Kept
Indicate by tick mark whether any changes occurred to the information disclosure media and the place
where this Report is kept during the Reporting Period.□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure the website designated by the
CSRC for the publication of this Report and the location where this Report is kept did not change during
6ADAMA Ltd. Semi-Annual Report 2025
the Reporting Period. Said information can be found in the 2024 Annual Report.
3. Other Relevant Documents
Indicate by tick mark whether any changes occurred to the relevant documents during the Reporting
Period.□ Applicable √ Not applicable
IV. Main Accounting Data and Financial Results
Indicate by tick mark whether the Company needs to retroactively adjust or restate any of its accounting
data.□ Yes √ No
January - June 2025 January - June 2024 YoY +/- (%)
Operating revenues (RMB’000) 15024200 14910289 0.76%
Net loss attributable to shareholders of the
(80352)(894866)91.02%
Company (RMB’000)
Net loss attributable to shareholders of the
Company excluding non-recurring profit and loss (149757) (947055) 84.19%
(RMB’000)
Net cash flow from (used in) operating activities
173857817311180.43%
(RMB’000)
Basic EPS (RMB/share) (0.0345) (0.3841) 91.02%
Diluted EPS (RMB/share) NA NA NA
Weighted average return on net assets (0.42%) (4.17%) 3.75 pp
End of Reporting Period End of last year +/- (%)
Total assets (RMB’000) 50703250 50059777 1.29%
Net assets attributable to shareholders
1890504418991094-0.45%
(RMB’000)
V. Differences in Accounting Data under Domestic and Foreign Accounting
Standards
1. Differences in Net Profit and Net Assets Disclosed in Financial Reports Prepared under
Chinese and International Accounting Standards
□ Applicable √ Not applicable
None during the Reporting Period.
2. Differences in Net Profit and Net Assets Disclosed in Financial Reports Prepared under
Chinese and Foreign Accounting Standards
□ Applicable √ Not applicable
None during the Reporting Period.
3. Reason for accounting data differences under Chinese and Foreign Accounting Standards
□ Applicable √ Not applicable
7ADAMA Ltd. Semi-Annual Report 2025
VI. Non-Recurring Profit/Loss
√ Applicable □ Not applicable
Unit: RMB’000
Item Reporting Period Note
Gains/losses on the disposal of non-current assets (including the offset
5054
part of asset impairment provisions)
Government grants recognized through profit or loss (excluding
government grants closely related to regular operation of the Company
5111
and continuously given at a fixed quota or amount in accordance with
certain standards)
Recovery or reversal of provision for bad debts which is assessed
38147
individually during the years
Post vesting cash share based payment revaluation 7578
Gains or losses arising from the holding or disposal of financial assets or
financial liabilities by non-financial corporations except for effective 30714
hedging related to the normal operating of the Company
Other non-operating income and expenses other than the above 1820
Other profit or loss that meets the definition of non-recurring profit or loss -
Less: Income tax effects 19019
Total 69405
Details of other profit and loss items that meet the definition of non-recurring profit or loss.□ Applicable √ Not applicable
No such cases in the Reporting Period.Explanation whether the Company has 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 given as an example in the said explanatory announcement to recurrent profit/loss
□ Applicable √ Not applicable
No such cases in the Reporting Period.
8ADAMA Ltd. Semi-Annual Report 2025
Section III - Performance Discussion and Analysis
I. Main Business of the Company during the Reporting Period
The Company is a corporation incorporated in the People's Republic of China.The Group is a global leader in crop protection engaging in the development manufacturing and
commercialization of a wide range of crop protection products that are largely off-patent. The Group
provides solutions to farmers to combat weeds insects and disease and sells its products in dozens of
countries globally with direct presence in all top 20 markets.The Group's business model integrates end-customer access regulatory expertise state-of-the art global
R&D production and formulation facilities thereby providing the Group a significant competitive edge
and allowing it to launch new and differentiated products that meet local farmers and customer needs in
key markets.The Group's primary operations are global spanning activities in Europe Africa & Middle East (EAME)
North America Latin America and Asia-Pacific (including China).The Group also utilizes its expertise to adapt such products also for the development manufacturing and
commercialization of similar products for non-agricultural purposes (Consumer and Professional
Solutions).In addition the Group leverages its core capabilities in the agricultural and chemical fields and operates
in several other non-agricultural areas none of which individually is material for the Group. These
activities collectively reported as Intermediates and Ingredients include primarily (a) the manufacturing
and marketing of dietary supplements food colors texture and flavor enhancers and food fortification
ingredients; (b) fragrance products for the perfume cosmetics body care and detergents industries; (c)
the manufacturing of industrial products and (d) other non-material activities.ADAMA Group is a distinctive member of Syngenta Group a world leader in agricultural inputs spanning
crop protection seeds fertilizers additional agricultural and digital technologies as well as an advanced
distribution network in China.The General Crop Protection Market Environment
In H1 2025 channel inventory returned to pre-pandemic levels in most countries allowing crop protection
demand recovery. Pricing pressure remains high driven by production over-capacity of active ingredients.Crop commodity prices remain stably low and coupled with the high-interest rate environment farmer
profitability remains tight leading to just-in-time purchasing patterns.Crop Protection Products
As described within the Company’s 2024 Annual Report the Group is focused on the development
manufacturing and commercialization of largely off-patent crop protection products which are generally
herbicides insecticides and fungicides which protect agricultural and other crops against weeds insects
and disease respectively. Since the publication of the 2024 Annual Report no major changes occurred
with that respect. For details please refer to 2024 Annual Report.Please see important additional information and further details included in the Annex.
9ADAMA Ltd. Semi-Annual Report 2025
II. Core Competitiveness Analysis
No significant changes occurred to the core competitiveness of the Company during the Reporting Period.III. Analysis of Main Business
General Description
Whether it is the same as main business of the Company during the Reporting Period disclosed or not
√ Yes □ NoPlease refer to the relevant information in section “I. Main Business of the Company during the ReportingPeriod” above.Year-on-year changes of main financial data:
Same period 2025 Apr- Same period
2025 Apr-June
of last year +/-% June of last year +/-%
(000’RMB)
(000’RMB) (000’USD) (000’USD)
Operating revenues 7851465 7401390 6.08% 1091791 1041344 4.84%
Cost of goods sold 5806542 5785722 0.36% 807427 814027 -0.81%
Selling and Distribution
10243051282638-20.14%142442180460-21.07%
expenses
General and administrative
36210225600841.44%503583601939.81%
expenses
R&D expenses 112949 106255 6.30% 15708 14948 5.08%
Financial Expenses 1002189 256483 290.74% 139326 36099 285.96%
Gain (loss) from Changes
345010(47557)825.47%47976(6691)817.02%
in Fair Value
Total Net Financial
657179304040116.15%9135042790113.48%
Expenses
Loss before tax (257578) (420137) 38.69% (35786) (59123) 39.47%
Tax expenses (income) (26095) 247124 -110.56% (3629) 34770 -110.44%
Net loss (231483) (667261) 65.31% (32157) (93893) 65.75%
EBITDA 933527 539027 73.19% 129812 75841 71.16%
Net cash flows from operating
19454462466280-21.12%270524346996-22.04%
activities
Net cash flows used in
(372808)(342006)-9.01%(51841)(48119)-7.73%
investing activities
Net cash flows used in
(1890259)(1861463)-1.55%(262850)(261900)-0.36%
financing activities
Net increase (decrease) in
(320875)291925-209.92%(43437)38648-212.39%
cash and cash equivalents
10ADAMA Ltd. Semi-Annual Report 2025
Same
Reporting Same period Reporting
period of
Period of last year +/-% Period +/-%
last year
(000’RMB) (000’RMB) (000’USD)
(000’USD)
Operating revenues 15024200 14910289 0.76% 2091331 2098494 -0.34%
Cost of goods sold 11030173 11474074 -3.87% 1535355 1614867 -4.92%
Selling and Distribution
19756682363376-16.40%275013332614-17.32%
expenses
General and administrative
73486753626637.03%1023027547535.54%
expenses
R&D expenses 216793 218107 -0.60% 30177 30695 -1.69%
Financial Expenses 1024340 623647 64.25% 142429 87804 62.21%
Loss from Changes in Fair
(6493)(196492)96.70%(1007)(27659)96.36%
Value
Total Net Financial
103083382013925.69%14343611546324.23%
Expenses
Loss before tax (125579) (571430) 78.02% (17403) (80433) 78.36%
Tax expenses (income) (45227) 323436 -113.98% (6295) 45514 -113.83%
Net loss (80352) (894866) 91.02% (11108) (125947) 91.18%
EBITDA 1964239 1394754 40.83% 273447 196317 39.29%
Net cash flows from operating
173857817311180.43%241697243495-0.74%
activities
Net cash flows used in
(635095)(814956)22.07%(88391)(114703)22.94%
investing activities
Net cash flows used in
(1367061)(1844670)25.89%(189941)(259536)26.82%
financing activities
Net decrease in cash and cash
(268278)(886478)69.74%(35403)(128632)72.48%
equivalents
Major changes to the profit structure or sources of the Company in the Reporting Period:
□ Applicable √ Not applicable
None during the Reporting Period.
11ADAMA Ltd. Semi-Annual Report 2025
Analysis of Financial Highlights
(1) Operating Revenues
Revenues in the second quarter increased by approximately 5% (6% in RMB; 5% in CER) to $1092
million reflecting a volume growth of 8% more than offsetting a decrease of 3% in prices. The higher
volumes reflected the gradual recovery of market demands and improvement of channel inventories
in most regions while the Company has been shifting away from selected low profit products and
businesses. Prices were weak mainly due to low prices of active ingredients in light of overcapacity
as well as a high-interest rate environment and low commodity prices which put pressure on
distributors and farmers.Supported by the growth of revenues in the second quarter ADAMA reported flat sales for the first
half of 2025 (0% in USD 1% in RMB 1% in CER) compared to the first half of 2024. The stabilization
of revenues in the first half was driven by volume growth of 4% offsetting a decrease in prices of 3%.Unit: RMB’000
2025H1 2024H1
Ratio of the Ratio of the
YoY +/-%
Amount operating Amount operating
revenue revenue
Total operating revenue 15024200 100.00% 14910289 100.0% 0.8%
Classified by industries
Manufacture of chemical raw materials
15024200100.00%14910289100.0%0.8%
and chemical products
Classified by products
Herbicides 6593471 43.9% 6163343 41.3% 7.0%
Fungicides 3149177 21.0% 3155230 21.2% -0.2%
Insecticides 3913941 26.1% 4215471 28.3% -7.2%
Ingredients and Intermediates (Formerly
13676119.1%13762459.2%-0.6%
referred to as Non-Agro)
Classified by regions
Europe Africa & Middle East (EAME)* 4811339 32.0% 4935526 33.1% -2.5%
North America 3554544 23.7% 2941766 19.7% 20.8%
Latin America 2609695 17.4% 2841344 19.1% -8.2%
Asia-Pacific* 4048622 26.9% 4191653 28.1% -3.4%
* As part of ADAMA’s business optimization program on January 1 2025 South Africa was reclassified from the APAC region to EAME.To enable meaningful comparisons the 2024 data presented here includes South Africa under EAME.Note: the sales split per product category is provided for convenience purposes only and is not representative of the way
the Company is managed or in which it makes its operational decisions.Regional Sales Performance in USD
Q2 2025 Q2 2024 Change H1 2025 H1 2024 Change
$m $m USD $m $m USD
Europe Africa & Middle East (EAME)* 314 318 -1% 670 695 -4%
North America 276 223 24% 495 414 19%
Latin America 216 209 3% 363 400 -9%
Asia Pacific* 286 292 -2% 564 590 -4%
12ADAMA Ltd. Semi-Annual Report 2025
Q2 2025 Q2 2024 Change H1 2025 H1 2024 Change
$m $m USD $m $m USD
Of which China 143 121 18% 309 275 12%
Total 1092 1041 5% 2091 2098 0%
Note: the following analysis of regional sales performance is based on USD results and the numbers in this table may not
sum due to rounding.Europe Africa & Middle East (EAME):
Volumes and revenue in Europe have generally improved year-over-year in H1 and were similar in Q2
though EAME results were negatively impacted by significant Q1 declines in Turkey which also impacted
H1. Pricing continued to decline in light of intense competition. Weather challenges in Northern Europe
were offset by good conditions in France and other countries.North America:
In the US Ag market reduction of stock in the channel and good weather conditions in key markets such
as corn and soybean led to volume increases. Just-in-time purchasing behavior continues with slight
improvements in prices. Similarly in Canada while AI pricing pressures remain volumes for ADAMA’s
overall portfolio have improved significantly in Q2 and H1. The Consumer & Professional Solutions
experienced flat Q2 revenues with a slight increase in volume offset by a slight decline in prices. However
for the half-year revenues increased with declining prices more than offset by higher volumes. End users
did not consume as much inventory as normal due to rain and adverse weather conditions.Latin America:
In Brazil volumes are up resulting in Q2 revenue improvements partially offsetting a weaker Q1.Competition remains strong resulting in lower pricing. In the rest of LATAM pricing pressures continue
in light of generics competition and just-in-time purchasing behaviors with lower volumes and revenues
reported in Q2 and H1.Asia-Pacific:
Sales continue to experience pricing pressure with declines in Q2 and H1. These declines reflect both
ample oversupply and the Company’s decision to optimize regional layouts. In India irregular weather
including flooding in some regions and deficient rainfall in others impacted sales though volumes
increased in both the quarter and half year.In China sales increased both in the second quarter and first half. Non-ag sales increased led by strong
chlor-alkali markets with stronger margin due to higher operational efficiency. AI sales also increased
driven by volume growth due to the expansion of new distribution channels and supported by the recovery
of global demand. Lower prices and volumes of branded formulations reflected the impacts of market
competition.
13ADAMA Ltd. Semi-Annual Report 2025
(2) Cost of Goods Sold:
List of the industries products or regions which exceed 10% of the operating revenues or
operating profits of the Company as at the Reporting Period
Unit: RMB’000
Gross YoY YoY
Operating Cost of YoY
Margin increase/decrease increase/decrease
revenues goods sold increase/decrease
(%) of the operating of the cost of
of the gross margin
revenues goods sold
Classified by industries
Manufacturing
chemical raw
15024200 11030173 26.6% 0.8% -3.9% 3.5 pp
materials and
chemical products
Classified by products
Crop Protection 13656589 9952759 27.1% 0.9% -3.9% 3.7 pp
Ingredients and
1367611 1077414 21.2% -0.6% -3.4% 2.2 pp
Intermediates
If the scope of the Company's main business was adjusted during the Reporting Period the Company's
financial data of main business according to the adjusted scope at the end of the reporting period is
disclosed as follows:
□ Applicable √ Not applicable
In the first half of the year higher volumes also contributed to the increase of gross profits. The lower cost
of goods sold mainly reflected the positive impacts of improved operational efficiency and lower costs of
inventory sold. The said positive impacts on gross profits and its margin more than compensated for lower
selling prices and the remediation costs by a wholly-owned subsidiary for its plant in Israel in the second
quarter.
(3) Operating Expenses:
Operating expenses include Sales and Marketing General and Administration and R&D.In the first half of the year the sales and marketing expenses declined mainly under the positive impacts
following implementation of the Fight Forward transformation plan and also because in 2024 there were
one-off expenses related to a legal claim of product liabilities. In the first half of both 2024 and 2025 the
Company continued recording following charges in its sales and marketing expenses at a similar amount
which incurred due to mergers and acquisitions in recent years mainly: (i) non-cash amortization charges
in respect of transfer assets received from Syngenta related to the 2017 ChemChina-Syngenta
acquisition; and (ii) non-cash amortization net charges related to intangible assets created as part of the
Purchase Price Allocation (PPA) on acquisitions with no impact on the ongoing performance of the
companies acquired. The general and administrative expenses increased in the first half mainly due to
the higher advisory and restructuring costs incurred than last year which more than offset the positive
impacts of the Fight Forward plan. Foreign exchanges rates had a positive impact on operating expenses
during the reporting period.Non-operational charges affected the Company’s reported operating expenses amounting to 338 million
14ADAMA Ltd. Semi-Annual Report 2025
($ 47 million) in H1 2025 in comparison to RMB 472 million ($ 66 million) in H1 2024. For details of the
non-operational charges please refer to the Annex to the Report.
(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 RMB 1024
million ($ 142 million) for the first half of 2025 compared to RMB 624 million ($ 88 million) for the
corresponding period in 2024.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” which recorded the hedging
costs and impacts among others amounted to a net loss of RMB 6 million ($ 1 million) in the first half of
2025 compared with a net loss of RMB 196 million ($ 28 million) in the corresponding period in 2024.
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
1031 million ($ 143 million) in the first half of 2025 compared with RMB 820 million ($ 115 million) in the
corresponding period in 2024.In the first half Total Net Financial Expenses increased mainly because (i) in 2024 there was a RMB 239
million ($34 million) income from revaluation of the put options attributed to minority stakes in controlled
subsidiaries and (ii) in the second quarter this year a controlled subsidiary repurchased its bond principal
as part of strengthening the debt structure incurring a loss due to the premium between the buyback
price and its issuance price.It should be noted that as mentioned above a subsidiary of the Company repurchased a significant part
of its bond principal in the second quarter for the purpose of improving financing structure and efficiency.As the repurchase was completed late in the quarter the impacts on improving the financial costs were
minor during the reporting periods.
(5) Cash Flow:
Net cash flows from (used in) operating activities: Operating cash flow of RMB 1739 million ($ 242
million) was generated in the half-year period compared to RMB 1731 million ($ 243 million) generated
in the corresponding period last year. The dynamics in the half-year period reflected an improvement in
collection offsetting higher outflow due to higher procurement payments in preparation to capture growth
momentum.Net cash used in investing activities was RMB 635 million ($ 88 million) in the half-year period
compared to RMB 815 million ($ 115 million) in the corresponding period last year. Lower cash used in
investing activities reflected continued prioritization of investments in ADAMA’s manufacturing facilities
and portfolio optimization.Free cash flow of RMB 651 million ($ 90 million) was generated in the half-year period compared to RMB
364 million ($ 51 million) generated in the corresponding period last year reflecting the aforementioned
operating and investing cash flow dynamics.
15ADAMA Ltd. Semi-Annual Report 2025
Cash Flow from Financing Activities was RMB 1367 million ($ 190 million) consumed in the half-year
period compared to RMB 1845 million ($ 260 million) consumed in the corresponding periods last year
mainly reflecting repayment and buyback of debts driven by positive free cash flow while less cash was
utilized to reduce debts compared to last year.
16ADAMA Ltd. Semi-Annual Report 2025
IV. Analysis of Non-Core Business
√ Applicable □ Not applicable
Unit: RMB’000
Proportion in Whether
Amount Reasons
total profit sustained
Investment income 5261 (4.19%) No
Loss from change of Fair Mainly from changes in fair value of
(6493) 5.17% No
Value derivatives.Expected credit loss in LATAM due to
Credit impairment losses (93679) 74.60% liquidity issues of some local
distributors.Asset impairment losses (27617) 21.99% No
Gain from disposal of assets 5054 (4.02%) No
Non-operating income 19219 (15.30%) No
Non-operating loss 12555 (10.00%) No
V. Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB’000
End of Reporting Period End of last year Change in Reason for
As a percentage As a percentage percentage significant
Amount Amount
of total assets (%) of total assets (%) point (pp) change
Cash at bank and on hand 3497229 6.90% 3630608 7.25% -0.35 pp -
Accounts receivable 8100271 15.98% 7977830 15.94% 0.04 pp -
Inventories 11612921 22.90% 11164663 22.30% 0.60 pp -
Investment property 19689 0.04% 20509 0.04% 0.00 pp -
Long term equity investments 35956 0.07% 30227 0.06% 0.01 pp -
Fixed assets 9588625 18.91% 9762895 19.50% -0.59 pp -
Construction in progress 1933407 3.81% 1996892 3.99% -0.18 pp -
Right of use assets 527579 1.04% 557159 1.11% -0.07 pp -
Loan
Short-term loans 6588393 12.99% 4748720 9.49% 3.50 pp replaceme
nt
Accounts payable 5440839 10.73% 4934865 9.86% 0.87 pp -
Contract liabilities 1491105 2.94% 1810764 3.62% -0.68 pp -
Long-term loans 1746425 3.44% 2166625 4.33% -0.89 pp -
Repurcha
Debentures payable 5146703 10.15% 6320157 12.63% -2.48 pp sed part of
the bonds
Lease liabilities 599408 1.18% 610415 1.22% -0.04 pp -
17ADAMA Ltd. Semi-Annual Report 2025
2. Main Overseas Assets
√ Applicable □ Not applicable
Proportion
Scale Control
Net Profit of
Specific (Amount) Operation measures to Significant
of the overseas
contents of the Reason of the Location /Manageme guarantee impairment
assets assets out
assets assets nt mode safety of the risk
(RMB’000) of total net
(RMB’000) assets
assets (%)
Equity Acquired
investment in through Israel and Corporate Corporate
15552902 (251820) 82% No
Adama Major Assets globally Governance Governance
Solutions Restructuring
Other explanations N/A
3. Assets and Liabilities Measured at Fair Value
√ Applicable □ Not applicable
Unit: RMB’000
Profit/loss on Impairment
Cumulative fair Purchased in
fair value provided in Sold in the
Opening value changes the Closing
Item changes in the the Reporting Others
balance charged to Reporting balance
Reporting Reporting Period
equity Period
Period Period
Financial assets
1.Financial assets
held for trading
1035---1012--2047
(excluding derivative
financial assets)
2.Derivative financial
assets (including long 483822 117458 (56692) - 568787 (249969) - 863406
term)
3.Other equity
131473-(304)----131169
investments
Total financial assets 616330 - (56996) - 569799 (249969) - 996622
Other 205059 - - - 7962 (50790) - 162231
Total of above 821389 117458 (56996) - 577761 (300759) - 1158853
Financial liabilities 278580 186587 - - - - - 465167
Significant changes in the measurement attributes of the main assets in the Reporting Period
□ Yes √ No
4. Limitation on Asset Rights as of End of the Reporting Period
At the end of this Reporting Period restricted assets included RMB 181544000 - restricted cash most
of which as guarantee for bank acceptance bills; and RMB 146565000 of other non-current assets
mainly as guarantee for lawsuits.
18ADAMA Ltd. Semi-Annual Report 2025
VI. Investments Made
1. Overall Condition of the Total Investments Made
√ Applicable □ Not applicable
Investment during the Investment during the Same +/-% YoY
Reporting Period (RMB'000) Period Last Year (RMB'000)
1613755822170519-27.21%
2. Significant Equity Investments during the Reporting Period
□ Applicable √ Not applicable
3. Significant Non-Equity Investments executed during the Reporting Period
□ Applicable √ Not applicable
4. Financial Investments
(1) Investments in Securities
□ Applicable √ Not applicable
None during the Reporting Period.
19ADAMA Ltd. Semi-Annual Report 2025
(2) Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
(1) Investment in Derivative Financial Instruments for Hedging during the Reporting Period
√ Applicable □ Not Applicable
Unit: 000 RMB
Profit/loss on fair Percentage of
Cumulative fair Purchased in Sold in the
Initial Opening value changes in Closing investment amount
Investment Type value changes the Reporting Reporting
Investment Balance the Reporting Balance divided by net asset
charged to equity Period Period
Period at end of the period
Option 2029357 2029357 (20738) (28273) 2025884 2029357 2025884 10.7%
Forward 19405343 19405343 (48391) (65970) 14111674 19405343 14111674 74.6%
Total 21434700 21434700 (69129) (94243) 16137558 21434700 16137558 85.3%
Explanation of accounting
policies and specific accounting
principles for hedging during the Please refer to section VIII of this Report note III. 32.1 for the disclosure of the accounting policies for hedging. There is no change in the accounting
reporting period and any policies for hedging during the reporting period.significant changes compared
with last reporting period
Explanations about actual
The loss during the year was RMB 94243000 compared to a loss of RMB 178050000 in the same period last year. The loss was mainly due to the
gain/loss during the Reporting
devaluation of the USD by 12% vs. the BRL and by 11% vs. the EUR offset by devaluation of the USD by 7.5% vs. ILS.Period
Despite of the loss incurred from the hedging transactions which include the gains or losses from changes in the fair value of the derivatives the gains or
Explanations for hedging effect losses from the disposal of the derivatives and the hedging costs the Group has effectively mitigated the impact from the exchange rate fluctuations
during the year.Source of fund for the
Internal.derivatives investment
The aforesaid refers to short term hedging currency transactions made with banks.Risk and control analysis for the The Group’s transactions are not traded in the market. The Transactions are between the applicable company in the Group and the applicable bank until
Reporting Period (including but the expiration date of the transaction therefore no market risk is involved.not limited to market risk
Regarding credit and liquidity risk the Group is working with large and substantial banks only and with some of them the Group has ISDA agreements.liquidity risk credit risk
operational risk legal risk etc.) As to operational risk the Group is working with relevant software which is its back office for all transactions.No legal risk is involved.
20ADAMA Ltd. Semi-Annual Report 2025
The actions taken in order to further reduce risks are:
* The relevant subsidiaries have specific guidelines under the Group’s policy which were approved by the subsidiaries' financial statements committee
of the board which specifies inter alia the hedging policy the persons that have the authorization to deal with hedging the tools ranges etc. The
only subsidiary that has hedging positions in the Group in the period was Adama Solutions and its subsidiaries.* The relevant subsidiaries apply management designed procedures and controls which among other things monitor the working process and the
controls of the hedging transactions and are quarterly reviewed and annually audited.* The controllers of the relevant subsidiaries are involved in the process and are monitoring the hedging accounting treatment.Every 2-3 years the internal audit of the relevant subsidiaries’ department is auditing the entire procedure.Market price or fair value change
of investments during the The aforesaid refers to short time hedging currency transactions made by the relevant subsidiary with banks.Reporting Period. Segregation of duties as follows:
Specific methodology and For the fair value evaluation the relevant subsidiary is usually using external experts. The relevant subsidiary hedges currencies only; the relevant
assumptions should be transactions are simple (Options and forwards) for short terms. For fair value methodology see section VIII of this Report note IX. Fair Value. The
disclosed in the analysis of fair exchange rates are provided by the accounting department of the relevant subsidiary and all other parameters are provided by the experts.value of the investments
Litigation-related situations (if
N/A
applicable)
Date of disclosure of Board
March 14th 2025
approval (if any)
Date of disclosure of
April 8th 2025
Shareholders’ approval (if any)The company is required to comply with the “Self-regulatory Guidelines for Listed Companies on Shenzhen Stock Exchange: No. 3 - Disclosure ofIndustry Information”.The derivative transactions carried out by the Group were mainly through options and forward in order to mitigate the currency exposure and the fluctuation in Israeli CPI. For
more details please refer to the section above.
(2) Investment in Derivative Financial Instruments for Speculation during the Reporting Period
□ Applicable √ Not Applicable
No such situation occurred during the Reporting Period.
21ADAMA Ltd. Semi-Annual Report 2025
5. Use of Raised Fund
□ Applicable √ Not applicable
None during the Reporting Period.VII. Sale of Major Assets and Equity Interests
1. Sale of Significant Assets
□ Applicable √ Not applicable
None during the Reporting Period.
2. Sale of Significant Equities
□ Applicable √ Not applicable
VIII. Main Controlled and Joint Stock Companies
√ Applicable □ Not applicable
List of main subsidiaries and stock-participating companies influencing over 10% of the net profits on
the Company
Unit: RMB’000
Name Type Registered Total Operating Operating Main services Net assets Net profit
capital assets revenues profit
Development
manufacturing and
marketing of
agrochemicals
Adama intermediate
Subsidiary 720085 42624316 12699959 13263012 (309059) (245725)
Solutions materials for other
industries food
additives and synthetic
aromatic products
mainly for export.Subsidiaries acquired or disposed during the Reporting Period
□ Applicable √ Not applicable
Explanations on the main controlled and joint stock companies
√ Applicable □ Not applicable
During the Reporting Period total sales of Solutions a wholly-owned subsidiary of the Company
amounted to $1845 million a decline of 2% reflecting an increase of 3% in volumes and a decrease of
3% in prices. Solutions’ net loss was $34 million in the first half of the year compared with net loss of
$137 million in the corresponding period last year. For detailed explanation of the performance movement
see above explanation of the Section.
22ADAMA Ltd. Semi-Annual Report 2025
IX. Structured Entities Controlled by the Company
□ Applicable √Not applicable
X. Risks Facing the Company and Countermeasures
The Group is exposed to several major risk factors resulting from its economic environment the industry
and the Group's unique characteristics as follows (the order below does not indicate priority):
Exchange rate fluctuations
Although the Company reports its consolidated financial statements in RMB the Company’s material
subsidiary Solutions reports its consolidated financial statements in US dollars which is its functional
currency while its operations sales and purchases of raw materials are carried out in various currencies.Therefore fluctuations in the exchange rate of the selling currency against the purchasing currency
impact the Company’s results. The Group's most significant exposures are to the Euro the Israeli Shekel
and the Brazilian Real. The Group has lesser exposures to other currencies. The strengthening of the US
dollar against other currencies in which the Company operates reduces the dollar value of such sales
and vice versa.On an annual basis approximately 22% of the Group’s sales are to the European market and therefore
the impact of long-term trends on the Euro may affect the Company's results and profitability.Analyses of currency exposure from foreign currency exchange rate fluctuations against assets liabilities
and cash flow denominated in foreign currencies are done constantly. High volatility of the exchange
rates of these currencies could increase the costs of transactions to hedge against currency exposure
thereby increasing the Company's financing costs.The Group uses commonly accepted financial instruments to hedge most of its substantial net balance
sheet exposure to any particular currency. Nonetheless since as part of these operations the Group
hedges against most of its balance sheet exposure and only against part of its economic exposure
exchange rate volatility might impact the Group’s results and profitability. As of the date of publication of
this Report the Group has hedged most of its balance sheet exposure.In addition as the Company’s product sales depend directly on the cyclical nature of the agricultural
seasons therefore the Company’s income and its exposure to the various currencies is not evenly
distributed over the year. Countries in the northern hemisphere have similar agricultural seasons and
therefore in these countries the highest sales are usually during the first half of the calendar year. During
this period the Company is most exposed to the Euro. In the southern hemisphere the seasons are
opposite and most of the local sales are carried out during the second half of the year. During these
months most of the Company's exposure pertains to the Brazilian Real.Exposure to Interest rate Israel CPI and NIS exchange rate fluctuations
The debentures issued by Solutions the material subsidiary of the Company are Israeli Shekel based
and linked to the Israel Consumer Price Index “CPI” and therefore an increase in the CPI and an
appreciation of the shekel rate against the dollar might lead to a significant increase in its financing
expenses. In addition high volatility of the exchange rate of USD/NIS and expectations of material
changes in the inflation rate may increase the costs of hedging transactions on currency exposure and
as a result may lead to a further increase in the company's financing costs. As of the date of approval of
the financial statements Solutions hedged most of its exposure to these risks on an ongoing basis
23ADAMA Ltd. Semi-Annual Report 2025
through CPI hedging and USD-ILS exchange rate hedging transactions.In addition inflation in several global markets has a cross effect on the business results of the Group
since on one hand it contributes to the Group's ability to increase the sale price of its products but on
the other hand it may increase the Group's production costs and operating expenses. As of the date of
the Report the Group is unable to isolate the influence of inflation on its sale prices and its costs. The
Group estimates that the cumulative cross influence of inflation does not have a material effect on to its
financial results.Since December 31 2021 the Group have had dollar denominated liabilities bearing variable interest
rates previously based on LIBOR exposing it to interest rate fluctuations. Following the global transition
away from LIBOR the Company monitors its exposure and periodically evaluates hedging strategies. As
of January 1 2022 SOFR (USD) ESTR (EUR) and SONIA (GBP) have replaced LIBOR as alternative
risk-free rates. As of the date of publication of this Report the Group has not carried out hedging for such
exposure since US dollar interest rates have been relatively stable.In addition the effect of interest changes on the debt that serves the Group’s working capital is seasonal.Such debt bears a variable interest but has no material effect on the Group’s financing expenses. As a
result the net increase in interest rate does not have a material effect on the Group’s business.Business operations in emerging markets
The Group conducts business - mainly product sales and raw material procurement - inter alia in
emerging markets such as Latin America (particularly in Brazil the largest market country wise in which
the Group operates) Eastern Europe Southeast Asia and Africa. The Group's activity in emerging
markets is exposed to risks typical of those markets including: political and regulatory instability; volatile
exchange rates; economic and fiscal instability and frequent revisions of economic legislation; relatively
high inflation and interest rates; terrorism or war; restrictions on import and trade; differing business
cultures; uncertainty as to the ability to enforce contractual and intellectual property rights; foreign
currency controls; governmental price controls; restrictions on the withdrawal of money from the country;
barter deals and potential entry of international competitors and accelerated consolidations by large-scale
competitors in these markets. Developments in these regions may have a significant effect on the Group's
operations. Distress to the economies of these markets could impair the ability of the Group's customers
to purchase its products or the ability to market them at international market prices as well as harm the
Group's ability to collect customer debts in a way that could have a significant adverse effect on the
Group's operating results.The Group’s operations in multiple regions allows for the diversification of such risks and for the reduction
of its dependency on particular economies. In addition changes in registration requirements or
customers' preferences in developed western countries which may limit the use of raw materials
purchased from emerging economies may require redeployment of the Group's procurement
organization which might negatively affect its profitability for a certain period.Operating in a competitive market
The crop protection products industry is highly competitive. Currently seven multinational companies
including the Company lead the global industry. Five of these Bayer Syngenta Corteva BASF and
FMC are Originator Companies which develop manufacture and market both patent-protected as well
as off-patent products. The Group competes with the original products with the aim of maintaining and
increasing its market share.The Originator Companies possess resources enabling them to compete aggressively in the short-to-
24ADAMA Ltd. Semi-Annual Report 2025
medium term on price and profit margins so as to protect their market share. Loss of market share or
inability to acquire additional market share from the Originator Companies can affect the Group's position
in the market and adversely affect its financial results. For details regarding the Group’s competitive
advantages see section III - subsection II. Core competitiveness analysis above.Similarly the Group also competes in the more decentralized off-patent segment of the market against
other off-patent companies and smaller-scale Originator Companies which have significantly grown in
number in recent years and are materially changing the face of the crop protection industry the majority
of whom have not yet deployed global distribution networks and are only active locally. These companies
often price their products aggressively and at times have lower profit margins than the Group which may
adversely impact the Group's sales and product prices. The Group's ability to maintain its revenues and
profitability from a specific product in the long term is affected by the number of companies producing
and selling comparable off-patent products and the timing of their entrance to the relevant market.Any delay in developing or obtaining registrations for products and/or delayed penetration into markets
and/or growth of competitors that focus on off-patent active ingredients (whether by the expansion of their
product portfolio granting registrations to other manufacturers (including manufacturers in China and
India) to operate in additional markets transforming their distribution network to a global scale or
increasing the competition for distribution access) and/or difficulty in purchasing low cost raw materials
may harm the Group’s sales affect its global position and lead to price erosion.Decline in scope of agricultural activities; Climate change and exceptional changes in weather
conditions
The scope of general agricultural activities worldwide may be negatively affected by many exogenous
factors some resulting from climate change including but not limited to extreme weather conditions
natural disasters a decrease in agricultural commodity prices government policies and the economic
condition of farmers. A material decline in the scope of agricultural activities would by necessary
implication cause a decline in the demand for the Group’s products erosion of its prices and collection
difficulties which may have a significant adverse effect on the Group's results. Extreme weather
conditions both chronic and acute as well as other damages caused by nature may have an impact on
the demand for the Group's products as well as to price thereof. For example drought may reduce the
need for fungicides which could result in fewer sales and greater unsold inventories in the market
whereas excessive rain could lead to increased plant disease or weed growth requiring growers to
purchase and use more crop protection products. Drought and/or increased temperatures may change
insect pest pressures requiring growers to use more less or different insecticides. Climate change may
increase the frequency or intensity of extreme weather such as storms floods heat waves droughts and
other events that could affect the demand for the Company’s products. The Group believes that should
extreme weather conditions or a number of such bad seasons occur in succession without favorable
seasons in the interim its results may sustain significant harm.Environmental health and safety legislation standards regulation and exposure
Many aspects of the Group's operations are strictly regulated including in relation to production and
trading and particularly in relation to the storage treatment manufacturing transport usage and disposal
of its products their ingredients and byproducts some of which are considered hazardous. The Group's
activities involve hazardous materials. Defective storage or handling of hazardous materials may cause
harm to human life or to the environment in which the Group operates. The regulatory requirements
regarding the environment health and safety could inter alia include soil and groundwater clean-up
requirements; as well as restrictions on the volume of the hazardous materials permitted to be stored in the Group’s
25ADAMA Ltd. Semi-Annual Report 2025
facilities and type of emissions the Group is permitted to discharge into the air and water.The regulatory requirements applicable to the Group vary from product to product and from market to
market and tend to become stricter with time. In recent years both government authorities and
environmental protection organizations have been applying increasing pressure including through
investigations and indictments as well as increasingly stricter legislative proposals and class action suits
related to companies and products that may potentially pollute the environment. Compliance with these
legislative and regulatory requirements and protection against such legal actions requires the Group to
commit considerable human and financial resources (both in terms of substantial ongoing costs and in
terms of material one-time investments) to meet mandatory environmental standards. In some instances
this may result in delaying the introduction of products into new markets or in adverse effects on the
Group’s profitability. In addition the toughening material alteration or revocation of environmental
licenses or permits or their stipulations or the inability to obtain such licenses and permits may
significantly affect the Group's ability to operate its production facilities which in turn may have a material
adverse effect on the financial and business results of the Group. The Group may be required to bear
significant civil liabilities (including due to class actions) or criminal liabilities (including high penalties
and/or high compensation payments and/or costs of environmental monitoring and rehabilitation)
resulting from violation of environmental health and safety regulations while some of the existing
legislation may impose “strict liability” regime on the Group i.e. the Group will be held liable regardless
of proof of negligence or malice.While the Group invests material sums in adapting its facilities and in constructing special facilities in
accordance with environmental requirements it is currently unable to assess with any certainty whether
these investments (current and future) and their outcomes may satisfy current or future requirements
should these be significantly increased or changed. In addition the Group is unable to predict with any
certainty the extent of future costs and investments it may incur in order to meet the requirements of the
environmental authorities in the relevant countries in which it operates since inter alia the Group is
unable to estimate the extent of potential pollutions their duration the extent of the measures required
to be taken by the Group in handling them the division of responsibility among other parties and the
amounts recoverable from third parties.Furthermore the Group may be the target of bodily injury claims and property damage claims caused by
exposure to hazardous materials which are largely covered under the Group’s insurance policies.The Group is evaluating both transition and physical risks related to climate change. Physical chronic and
acute risks to ADAMA production assets activities and products are being evaluated with the PCRAM
methodology. The Company has been assessing the transition risks including the carbon taxes.Additional transition risks include the adaptation of novel technologies aimed at reducing carbon
emissions.In addition regarding products that are exported to Europe the Group may be subject to the EU Carbon
Border Adjustment Mechanism (CBAM). As of this date the Group’s products are not subject to the first
phase of the CBAM.Legislative standard and regulatory changes in product registration
The majority of the substances and products marketed by the Group require registration at various stages
of their development production import utilization and marketing and are also subject to strict regulatory
supervision by the regulatory authorities in each country. Compliance with the regulatory requirements
that vary from country to country and which are becoming more stringent with time involves significant
26ADAMA Ltd. Semi-Annual Report 2025
time and costs and rigorous compliance with individual registration requirements for each product.Noncompliance with these regulatory requirements might materially adversely affect the Group’s
expenses cost structure and profit margins as well as penetration of its products in the relevant market
and may even lead to suspension of sales of the relevant product and recall of those products already
sold or to legal action. Moreover to the extent new regulatory requirements are imposed on existing
registered products (requiring additional investment or leading to the existing registration's revocation)
and/or the Group is required to compensate another company for its use of the latter's product registration
data these might amount to significant sums considerably increasing the Group's costs and adversely
affecting its results and reputation. In recent years the industry has been suffering from revocation of
registration for many products around the world. This trend is particularly evident in European countries
as well as in many other countries worldwide.Nevertheless the Group believes that in countries where the Group maintains a competitive edge any
toughening of registration requirements may actually increase this edge since this will make it difficult for
its competitors to penetrate the same market whereas in countries in which the Group possesses a small
market share if any such toughening may make further penetration of the Group's products into that
market more difficult.Product liability
Product and producer liability are a risk for the Group. Regardless of their prospects or actual results
product liability lawsuits might involve considerable costs as well as tarnish the Group's reputation thus
potentially impacting its profits. The Group has a third-party and defective product liability insurance cover.However there is no certainty that the scope of insurance cover is sufficient. Any future product liability
lawsuit or series of lawsuits could materially affect the Group’s operations and results should the Group
lose the lawsuit or should its insurance cover not suffice or apply in a particular instance. In addition
while the Group has not currently encountered any difficulty renewing such insurance policy it is possible
that it will encounter future difficulties in renewing an insurance policy for third party liability and defective
products on terms acceptable to the Group.Successful market penetration and product diversification
The Group’s growth and profit margins are affected inter alia by the extent of its success in developing
differentiated products and obtaining registrations for them so as to enable it to gain market share at the
expense of its competitors. Usually being the first to launch a certain off-patent product affords the Group
continuing advantage even after other competitors penetrate the same market. As such the Group's
revenues and profit margins from a certain new off-patent product could be materially affected by its
ability to launch such product ahead of the launch of a comparable product by its competitors.Should new products fail to meet registration requirements in the different countries or should it take a
long period of time to obtain such registrations the Group's ability to successfully introduce a new product
to the relevant market in the future may be affected since entry into the market prior to other competitors
is important for successful market penetration. Furthermore successful market penetration involves inter
alia product diversification in order to suit each market's changing needs. Therefore if the Group fails to
adapt its product mix by developing new products and obtaining the required regulatory approvals its
future ability to penetrate that market and to maintain its existing market share could be affected. Failure
to introduce new products to given markets and meet Group objectives (given the considerable time and
resources invested in their development and registration) might affect the sales of the product in question
in the relevant market the Group’s results and margins.
27ADAMA Ltd. Semi-Annual Report 2025
Intellectual property rights of the Group and of third parties
The Group's ability to develop off-patent products is dependent inter alia on its ability to oppose patents
or patent application of Originator Companies or other third parties or to develop products that do not
otherwise infringe intellectual property rights in a manner that may involve significant legal and other
costs. Originator Companies tend to vigorously defend their products and may attempt to delay the launch
of competing off-patent products by registering patents on slightly different versions of products for which
the original patent protection is about to expire or has expired with the aim of competing against the off-
patent versions of the original product. The Originator Companies may also change the branding and
marketing of their products. Such actions may increase the Group's costs and the risk it entails and harm
or even prevent its ability to launch new products.The Group is also exposed to legal claims that its products or production processes infringe on third-party
intellectual property rights. Such claims may involve time costs substantial damages and management
resources impair the value of the Group's brands and its sales and adversely affect its results. Such
lawsuits that were concluded involved non-material amounts.Furthermore although the Group protects its brands and trade secrets with patents trademarks and other
methods of intellectual property protection these protective means may not be sufficient for fully
safeguarding its intellectual property. Any unlawful or other unauthorized use of the Group's intellectual
property rights could adversely affect the value of its intellectual property and goodwill. In addition the
Group may be required to take legal actions involving financial costs and resources to safeguard its
intellectual property rights.Fluctuations in raw material inputs and prices and in sales costs
Significant percentage of the Groups’ cost of sales derives from raw material costs. Hence significant
increases or decreases in raw material costs affect the cost of goods sold and are due to the length of
the Company’s inventory cycle generally reflected in the Company’s financials. Most of the Group's raw
materials are distant derivatives of oil prices and therefore extreme changes or decrease in oil prices
may affect the costs of raw materials although only partially.To reduce exposure to fluctuations in the prices of raw materials the Group customarily engages in long-
term purchase contracts for key raw materials wherever possible. Similarly the Group acts to adjust its
sales prices wherever possible to reflect the changes in the costs of raw materials.As of the date of approval of the financial statements the Group has not engaged in any hedging
transactions against increases in oil and other raw material costs.Exposure due to recent developments in the genetically modified seeds market
Any significant development in the market of genetically modified seeds for agricultural crops including
as a result of regulatory changes in certain countries currently prohibiting the use of genetically modified
seeds and/or any significant increase in the sales of genetically modified seeds and/or to the extent new
crop protection products are developed for further crops that would be widely used (substituting traditional
products) will affect demand for crop protection products requiring the Group to respond by adapting its
product portfolio to the new demand structure. Consequently to the extent that the Group fails to adapt
its product mix accordingly this may reduce demand for its products erode their sales price and by
implication affect the Group’s results and market share.Nevertheless the fact that the Group itself markets some of the products for which herbicide tolerance
traits have been developed acts to mitigate this exposure (albeit only in terms of marketing margins).In addition natural and/or biological substances that attack weeds pests and diseases are potential
28ADAMA Ltd. Semi-Annual Report 2025
alternatives for the Company’s products though as of the date of the report their efficiency is relatively
limited and they are commercialized in a relatively small volumes.Operational risks
The Group’s operations including its manufacturing activities rely inter alia on state-of-the-art computer
systems. The Group continually invests in upgrading and protecting these systems from malfunctions and
attack. Any unexpected failure of these systems as well as the integration of new systems could involve
substantial costs and adversely affect the Group's operations until completion of the repair or integration.The potential occurrence of a substantial failure that cannot be repaired within a reasonable time frame
may also affect the Group's operations and its results. Currently the Group has a property and loss-of-
profit insurance policy.The Group's production capacity is affected among others by its facilities’ output and individual area and
time allocation at full capacity. The Group's Multi-purpose facilities provide manufacturing flexibility and
enable the Group to prepare for the manufacturing of new products. Although the Group believes that its
existing sites have sufficient facilities and land areas to expand its production capacity if necessary in
the case of immediate or short-term increases in demand for new products supply may be delayed due
to lack of capacity to meet demand for such new products.Data protection and cyber security
During its activity the Group may be exposed to risks and threats related to the stability of its information
technologies systems data protection and cyber security which could appear in many different forms
(such as service denial misleading employees malfunction encryption or data erasing and other cyber-
attacks via E-mail or malicious software). An attack on such computerized systems mainly network based
systems may cause the group material damages and expenses and even partial suspension and
disruption of their proper functioning. In order to minimize the abovementioned risks the group invests
resources in its technological resilience and in proper protection of its systems.Raw material supply and/or shipping port service disruptions and inventory
Lack of raw materials or other inputs utilized in the manufacture of the Group’s products may prevent the
Group from supplying its products or significantly increase production costs. Moreover the Group imports
raw materials to its production facilities worldwide from where it then exports the technical or formulated
products to its subsidiaries around the world for formulation and/or commercialization purposes.Disruptions in the supply of raw materials from regular suppliers may adversely affect operations until an
alternative supplier is engaged. If any of the Group's suppliers are unable to supply raw materials for a
prolonged period including due to ongoing disruptions and/or prolonged strikes and/or infrastructure
defects in the operating of a relevant port and if the Group is unable to engage with an alternative supplier
at similar terms and in accordance with the relevant product registration requirements this may adversely
affect the Group's results significantly affect its ability to obtain raw materials in general or obtain them
at reasonable prices as well as limit its ability to supply products and/or meet customer supply deadlines.These might negatively affect the Group its finances and operating results. In order to reduce this risk it
is the Group's practice to occasionally adjust the volume of its product inventories or in certain scenarios
to increase the levels of inventory held by the Company to overcome possible supply shortages logistic
challenges and increases in cost of inventory as mentioned above in order to support expected future
sales. Additionally in the case of fluctuations in the market prices for inventory held by the Company this
may affect its finances and operating results. In addition war regional conflicts acts of terror and/or
governmental instability around the world may negatively impact the Company's operations. This may
29ADAMA Ltd. Semi-Annual Report 2025
result among others in the suspension of operations or the shutdown of affected facilities hence causing
production and distribution delays loss of property injury to employees and increased insurance
premiums.Failed mergers and acquisitions; difficulties in integrating acquired operations
The Group's strategy may include selective mergers acquisitions investments and collaborations to
enhance and strengthen its presence in certain markets. When pursuing such opportunities effective
integration with market conditions profitability forecasts and competition are key considerations.Challenges in implementation or deviations from forecasts may impact the expected value customer
retention liability exposure and the valuation of intangible assets related to a merger or acquisition as
well as affect the retention of skilled personnel resources.Production concentration in limited plants
A large portion of the Group’s production operations is concentrated in a relatively small number of
locations. Natural disasters hostilities labor disputes substantial operational malfunction or any other
material damage might significantly affect Group operations as a result of the difficulty the time and
investment required for relocating the production operation or any other activity.International taxation
Most of the Group’s sales are global through its consolidated subsidiaries worldwide. These individual
companies are assessed in accordance with the tax laws effective in each respective location. The
Group’s effective tax rate could be significantly affected by different classification or attribution of the
profits arising from the proportional value of the components of each of the companies in the Group in
the various countries as is recognized in each tax jurisdiction; changes in the characteristics (including
regarding the location of control and management) of these companies; changes in the breakdown of the
Group's profits into regions where differing tax rates apply; changes in statutory tax rates and other
legislative changes; changes in assessment of the Group's deferred tax assets or deferred tax liabilities;
changes in determining the areas in which the Group is taxed; and potential changes in the Group's
organizational structure.Changes in tax regulations and the manner of their implementation including with regard to the
implementation of BEPS may lead to a substantial increase in the Group's applicable tax rates and have
a material adverse effect on its financial position results and cash flows.Risks arising from the Group’s debt
The Group finances its business operations by means of its own equity and loans from external sources
(primarily traded debentures issued by Solutions bank credit and credit from related parties). The Group's
main source for servicing the debt and its operating expenses is by means of the profits from the Group
companies’ operations. Restrictions applying to the Group companies regarding distribution of dividends
to the Group or the tax rate applicable on these dividends may affect the Group's ability to finance its
operations and service its debt.In addition the Group's Finance Documents as contained in the bank credit agreements require meeting
certain Financial Covenants. Failure to meet these covenants due to an exogenous event or non-
materialization of Group forecasts and insofar as the financing parties refuse to extend or update these
Financial Covenants as per the Group’s capabilities may lead the financing parties to demand the
immediate payment of these liabilities (or part thereof).Exposure to customer credit risks
The Group’s sales to customers worldwide usually involve customer credit as is customary in each market.
30ADAMA Ltd. Semi-Annual Report 2025
A portion of these credit lines is insured while the remainder are exposed to risk particularly during
economic slowdowns in the relevant markets. The Group’s aggregate credit however is diversified
among many customers in dozens of countries mitigating this risk. In addition in certain regions
particularly in South America credit days are particularly long (compared to those extended to customers
in regions such as Europe) and on occasion inter alia owing to agricultural seasons or economic
downturns in those countries the Group may encounter difficulty in timely collection of customer debts
with the collection period being extended over several years.Generally such issues arise more often in developing countries where the Group may be less familiar
with its customers the collaterals might be in double until actual repayment and the insurance cover of
these customers is likely to be limited. Credit default by any of the customers may negatively impact the
Group's cash flow and financial results.The Group’s working capital and cash flow needs
Similar to other companies operating in the crop protection industry the Group has substantial cash flow
and working capital requirements in the ordinary course of operations. In view of the Group's growth and
considering its primary growth regions the Group’s broad product portfolio and the Group’s investments
in manufacturing infrastructures the Group has significant financing and investment needs. The Group
acts continually to improve the state and management of its working capital. While currently the Group is
in compliance with all its financial covenants significant deterioration of its operating results may in the
future lead the Group to fail to comply with its financial covenants and fail to meet its financial needs. As
a result the Group's ability to meet its goals and growth plans as well as its ability to meet its financial
obligations may be harmed.Contagious disease outbreak
Outbreak of a contagious disease and pandemics or other adverse public health developments in
territories where significant production activity is taking place or from which raw materials are supplied to
a significant extent may have a material adverse effect on the Company’s activity such that the Company
may encounter difficulties with procurement of raw materials and intermediates experience a certain
decrease of activity within its production facilities due to governmental instructions and be constrained
with respect to its logistics and supply lines. In addition the Company sales could be potentially impacted
by a temporary decrease in demand for its products as well as by temporary disruption of the Company’s
ability to sell and distribute products as mentioned above.XI. Development and Implementation of Market Cap Management Policy and
Valuation Enhancement Plan
Has the Company developed Market Cap Management Policy
□Yes √ No
Has the Company disclosed Valuation Enhancement Plan
√Yes □No
On March 12th 2025 the 10th Meeting of the 10th Session of the BOD approved the Valuation
Enhancement Plan which was disclosed at www.cninfo.com.cn on March 14th 2025 at Announcement
No. 2025-13. For details please refer to the announcement.
31ADAMA Ltd. Semi-Annual Report 2025
XII. Implementation and enforcement of the ‘Action Campaign to Upgrade Both
Business Quality and Return’
Whether the Company has disclosed the announcement about the ‘Action Campaign to Upgrade Both
Business Quality and Return’
□ Yes √ No
32ADAMA Ltd. Semi-Annual Report 2025
Section IV - Corporate Governance Environment and Society
I. Changes in Directors Supervisors and Senior Management
□Applicable √ Not applicable
There were no changes in directors supervisors and senior management during the Reporting Period
please refer to the 2024 Annual Report for details.II. Basic Information on the Profit Distribution and Converting Capital Reserve into
Share Capital in the Reporting Period
□ Applicable √ Not applicable
For the Reporting Period the Company does not plan to distribute cash dividends or bonus shares or
convert capital reserve into share capital.III. Stock Incentive Plans ESOP or Other Employee Incentives
□ Applicable √ Not applicable
To the date of the report the Company does not have stock incentive plans ESOP or other staff incentives.It shall be noted that the Company’s subsidiary Adama Solutions currently has several long-term
incentive plans according to which it has granted long-term cash rewards to executive officers and
employees. These long-term incentive plans are based either on the performance of the Company's
shares (phantom cash incentives) and/or the Company's performance. Adama Solutions has further
adopted an incentive plan linked to the increase in the Syngenta Group EBITDA.IV. Environmental Information Disclosure
Whether the listed company and its main subsidiaries are included in the list of enterprises that are
required to disclose environmental information by the law
√ Yes □No
Number of enterprises included in the
list of enterprises that are required to
4
disclose environmental information by
the law
No. Company Name Index for disclosure of environmental reports
2024 Annual Report disclosed on the “Enterprise Environmental Information
1 ADAMA Ltd. Disclosure System (Hubei Province)”
Enterprise Environmental Information Disclosure System (Hubei Province)
2024 Annual Report disclosed on the “Enterprise Environmental Information
2 ADAMA Anpon (Jiangsu) Ltd. Disclosure System (Jiangsu Province)”
Enterprise Environmental Information Disclosure System (Jiangsu Province)
33ADAMA Ltd. Semi-Annual Report 2025
2024 Annual Report disclosed on the “Enterprise Environmental InformationMaidao Branch of ADAMA Anpon
3 Disclosure System (Jiangsu Province)”
(Jiangsu) Ltd.Enterprise Environmental Information Disclosure System (Jiangsu Province)
2024 Annual Report disclosed on the “Enterprise Environmental Information
4 ADAMA Huifeng (Jiangsu) Ltd. Disclosure System (Jiangsu Province)”
Enterprise Environmental Information Disclosure System (Jiangsu Province)
V. Social Responsibilities
In serving China’s national rural revitalization strategy ADAMA actively fulfills its corporate social
responsibilities and participates in the activities of the national science and technology special
delegations providing targeted assistance to Jinchuan County in Aba Prefecture Sichuan Province and
Danfeng County in Shangluo City Shaanxi Province. In April 2025 at the training of the national science
and technology special delegation held in Jinchuan County an agronomist from ADAMA sales team
shared the know-how on pest and disease classification and explained the key points in identification
prevention and control schemes for common pests and diseases of important local crops especially the
timing solutions and key points in using crop protection products transforming cutting-edge pest and
disease control technology into easy-to-understand practical solutions. In June ADAMA’s agronomist
representative in the national special delegation went to Danfeng County to provide technical guidance
for the development of the local edible mushroom and grape industries assisting in rural revitalization
and gaining recognition from the local agricultural and rural bureau. In the first half of 2025 the Company's
subsidiary ADAMA Anpon assisted Yuanzhuang Village in Huai’an City which is the designated
assistance target in cleaning up river channels and dredging drainage ditches. They also helped the
village equip with environmental sanitation facilities to improve the living environment and carried out
lighting renovation of rural roads.
34ADAMA Ltd. Semi-Annual Report 2025
Section V - Significant Events
I. Commitments completed by the Company the shareholders the actual controllers the purchasers or other related
parties during the Reporting Period and those which should have been completed failed to be fulfilled during the
Reporting Period
√ Applicable□ Not applicable
Note: No commitment that should have been completed during the Reporting Period failed to be timely fulfilled. For details of the on-going commitments
please refer to the 2024 Annual Report published on the website www.cninfo.com.cn on March 14 2025. Commitments completed during the Reporting
Period are listed below.Commitment Commitment Time of making Period of
Commitment Contents Fulfillment
maker type commitment commitment
Based on a preliminary review ChemChina believes The commitment
that Syngenta A.G. and ADAMA may have horizontal party fulfilled and
competition to some extent. It will further analyze complied with the
confirm and specify if the two companies share the commitments by way
Commitment
same or similar businesses and products in terms of of entrusted
in the
business content suppliers and customers product management (Note
acquisition Commitments
substitution processes and core technologies and January 7 1)：Syngenta AG
report or the ChemChina on horizontal January 7 2020
distribution channels etc. If the result will be positive 2025 (SAG) entered into a
report on competition
ChemChina will gradually solve the issue within 5 Entrusted
equity
years after the issuance of this Letter by taking Management
changes
appropriate measures including but not limited to Agreement with the
internal asset restructuring industrial planning and Company whereby
business structure adjustment technology SAG has entrusted
transformation and product upgrading market the Company with
35ADAMA Ltd. Semi-Annual Report 2025
Commitment Commitment Time of making Period of
Commitment Contents Fulfillment
maker type commitment commitment
segmentation or other feasible solutions in the right and
accordance with the requirements of securities laws responsibility of
and regulations and industry policies. managing the
entrusted business
of overlapping
products between
the Company and
SAG.I. Companies that are controlled by Syngenta Group The commitment
and have horizontal competition with ADAMA party fulfilled and
complied with the
After reviewing as of the date of issuance of the commitments by way
commitment letter there is a small amount of overlap of entrusted
in the field of off-patent crop protection products management (Note
between SAG a subsidiary of Syngenta Group and 1)：1. SAG entered
the Company and a small amount of overlap in the into a Entrusted
field of active ingredients and formulation products Management
Other between Yangnong Chemical Co. Ltd. (hereinafter Agreement with the
commitments Commitments referred to as "YN Chemical") and the Company. In Company whereby
to the Syngenta on Horizontal both cases such small overlap is not causing a November 1 January 7 SAG has entrusted
company's Group Competition negative impact on any of the subject companies. 2021 2025 the Company with
minority
shareholders Except for the aforementioned scenarios the major
the right and
business of Syngenta Group and other companies responsibility of
controlled by Syngenta Group does not operate the managing the
same or similar business with the Company. entrusted business
of overlapping
II. Commitment and timetable to address the products between
horizontal competitions mentioned above the Company and
SAG. 2. YN
In accordance with and in compliance with the
Chemical entered
applicable laws regulations and relevant regulatory
into a Entrusted
requirements then in effectiveness Syngenta Group
36ADAMA Ltd. Semi-Annual Report 2025
Commitment Commitment Time of making Period of
Commitment Contents Fulfillment
maker type commitment commitment
will adopt appropriate measures to gradually solve the Management
horizontal competitions among SAG YN Chemical Agreement with the
and the Company within 5 years after the issuance of Company in respect
Supplemental Commitment Letter of China National of the overlapping
Chemical Corporation on Avoiding Horizontal products between
Competition with ADAMA by ChemChina on January the Company and
7 2020. The aforementioned solutions include but not YN Chemical YN
limited to: Chemical entrusts
the Company with
(1) Asset restructuring: adopt different methods
the right and
permitted by relevant laws regulations and regulatory
responsibility of
policies such as cash or issuance of shares to
managing the
purchase assets asset replacement asset transfer or
entrusted business
other feasible restructuring methods. Assets are
of some overlapping
sorted out and reorganized to eliminate the overlap of
products; in return
relevant businesses;
the Company
(2) Adjust industry planning and business structure: entrusts YN
sort out business boundaries realize business Chemical with the
differentiation through asset transactions business right and
divisions and other different methods including but responsibility of
not limited to business composition product grades managing the
application areas and customer groups. Syngenta entrusted business
Group will try its best to achieve differentiated of the rest of
business operations; overlapping
products.
(3) Technological transformation and product
upgrade: achieve product differentiation through
appropriate technological transformation and product
upgrade and Syngenta Group will try its best to
achieve differentiated operations;
(4) Market segmentation: signing agreements while
37ADAMA Ltd. Semi-Annual Report 2025
Commitment Commitment Time of making Period of
Commitment Contents Fulfillment
maker type commitment commitment
taking into consideration of the business and other
factors to appropriately divide the market;
(5) Entrusted management: by signing an entrustment
agreement one party will delegate the decision-
making and management involved in the operation of
the overlapped assets to the other party for unified
management;
(6) Establish a joint venture company: jointly establish
a company in an appropriate way;
(7) Other feasible solutions within the scope permitted
by relevant laws regulations and regulatory policies.The implementation of the above-mentioned
resolution is based on the implementation of the
necessary review procedures for listed companies
the approval procedures of the securities regulatory
authority and relevant authorities (including but not
limited to the antitrust review that may be applicable)
in accordance with relevant laws and regulations and
the information disclosure obligations should be
fulfilled according to relevant laws and regulations.Whether the
commitments
Yes please see “Fulfillment” in this table for details.are fulfilled on
time
If the
commitment is
overdue the
--
specific
reasons for
not completing
38ADAMA Ltd. Semi-Annual Report 2025
Commitment Commitment Time of making Period of
Commitment Contents Fulfillment
maker type commitment commitment
the
performance
and the next
work plan
should be
explained in
detail.Note 1: On November 6 2024 the Company held the 7th meeting of the 10th session of the Board of Directors to review the ‘Proposal on Signing of the Entrusted Management
Agreement with Related Parties’ and disclosed the ‘Announcement on the Signing of the Entrusted Management Agreement with Related Parties’ (No. 2024-55). On November
22 2024 the Company held the 3rd interim shareholders meeting in 2024 to review and approve the ‘Proposal on Signing of the Entrusted Management Agreement with Related
Parties’ Syngenta Group as a related party of the Company abstained from voting. On December 30 2024 the Company held the 9th meeting of the 10th session of the Board
of Directors to consider the ‘Proposal on Amendments to Certain Terms of the Entrusted Management Agreement’.The original entrusted management measure and its adjustment are concrete measures taken by ChemChina and Syngenta Group to fulfil its undertakings on the resolution of
the horizontal competition. ChemChina and Syngenta Group in accordance with the ways as set forth in the undertakings and through the aforementioned arrangement conferred
the management right of the Entrusted Business related to the Overlapping Products between the Company and SAG to the Company and conferred the management right of
the Entrusted Business related to the Overlapping Products between the Company and YN Chemical to the Company or YN Chemical respectively to fulfill the undertakings
made to the capital market and to protect the long-term interests of the Company.ChemChina and Syngenta Group have taken measures to effectively avoid conflicts of interest arising from horizontal competition and the interests of small and medium
shareholders of the Company can be effectively protected. The Company shall conscientiously implement the agreement and urge the counterparty to conscientiously implement
the agreement and safeguard the legitimate rights and interests of the Company and all shareholders.
39ADAMA Ltd. Semi-Annual Report 2025
II. Inadequate use of Company’s capital by the controlling shareholder or its
related parties for non-operating purposes
□ Applicable √ Not applicable
No such situation occurred during the Reporting Period.III. Illegal guarantee
□ Applicable √ Not applicable
None during the Reporting Period.IV. Engagement and Disengagement of CPA Firm
Has the semi-annual financial report been audited
□ Yes √ No
This Semi-Annual Report is unaudited.V. Explanations Given by the Board of Directors and Board of Supervisors
Regarding “Modified Auditor’s Report” Issued by CPA Firm for the Reporting
Period
□ Applicable √ Not applicable
VI. Explanations Given by Board of Directors Regarding “Modified Auditor’s Report”
Issued for Last Year
□ Applicable √ Not applicable
VII. Bankruptcy and Restructuring
□ Applicable √ Not applicable
None during the Reporting Period.
40ADAMA Ltd. Semi-Annual Report 2025
VIII. Litigation and Arbitration Matters
Material litigations or arbitrations:
□Applicable √Not applicable
The Company didn’t have material litigation or arbitration during the reporting period.Other litigations or arbitrations:
√Applicable □Not applicable
Whether to
Amount
generate Result of the Litigation Enforcement of the
Overview of Litigation (or Involved Progress of Litigation (or Disclosure
any (or Arbitration) and the Litigation (or Arbitration) Disclosure Index
Arbitration) (RMB Arbitration) Date
estimated Impact Judgement
'0000)
liabilities
The Company filed an 6454 No In April 2025 Shanghai The Company shall make On June 30 2025 the April 4
Announcement on the
arbitration application with International Arbitration accounting treatment in Company signed an 2025
Progress of the
Shanghai International Center rendered an award in accordance with the agreement with Jiangsu
Arbitration Matters
Economic and Trade respect of the arbitration relevant provisions of the Huifeng stipulating that the
about Fulfillment of
Arbitration Commission according to which the Accounting Standards for mutual payments
Performance
(Shanghai International respondent shall pay the Business Enterprises determined by the arbitral
Commitments Related
Arbitration Center) as the Company the price and the specific results of tribunal in this case and the
to a Controlled
applicant requesting that adjustment payment of the treatment and the case of payment for equity
Subsidiary
Jiangsu Huifeng Bio- RMB45000000 yuan the impact on the Company's transfer between the
(Announcement No.
agriculture Co. Ltd. (the damage compensation for profit for the current and Company and Jiangsu
2025-16)
"respondent") pay the failure to pay the price the following periods shall Huifeng shall be offset
Company the price adjustment amount on time be subject to the final against each other. Disclosed at the website
adjustment payment of and a certain proportion of audit results of the According to the above CNINFO
RMB 64535827 yuan the fees for the attorney and the accounting firm. The agreement after
www.cninfo.com.cn
compensation for the arbitration as well as other Company does not expect calculation Jiangsu
41ADAMA Ltd. Semi-Annual Report 2025
Whether to
Amount
generate Result of the Litigation Enforcement of the
Overview of Litigation (or Involved Progress of Litigation (or Disclosure
any (or Arbitration) and the Litigation (or Arbitration) Disclosure Index
Arbitration) (RMB Arbitration) Date
estimated Impact Judgement
'0000)
liabilities
losses attorney fee and all expenses incurred by the material impact on its Huifeng shall pay the offset
costs incurred by the Company for initiating the profit or loss. balance to the Company.applicant for initiating the case. On July 9 2025 Jiangsu
arbitration including the Huifeng has paid the
arbitration fee. balance of RMB 34669 to
the Company. The above
arbitration award has been
fully performed.The plaintiff requested that 92 No The Intermediate People's Given that the second / August 20
Announcement on
the three defendants (China Court of Wuhan Hubei instance of the litigation 2025
Voluntary Disclosure of
National Chemical Province heard the case in has not yet commenced
the Progress of the
Corporation Limited March 2025 and issued its as of now there is
Company’s Involvement
Syngenta Group Co. Ltd. first instance judgment in uncertainty as to the
in Litigation
and ADAMA Ltd.) be jointly August. The court ruled that decision and thus its
(Announcement No.
liable for the plaintiff's the plaintiff's claim lacked impact on the Company’s
2025-27)
investment losses of RMB factual and legal basis and profits for the current or
916135 caused to the was not validated. Therefore future periods. Disclosed at the website
plaintiff due to the failure to the court dismissed the CNINFO
complete the commitments plaintiff's claims and ordered
www.cninfo.com.cn
and the failure to fulfill the the plaintiff to bear the
information disclosure litigation costs for this case.obligations as well as the The Company received a civil
litigation costs. appeal because the plaintiff
has been dissatisfied with the
first-instance judgment. He
42ADAMA Ltd. Semi-Annual Report 2025
Whether to
Amount
generate Result of the Litigation Enforcement of the
Overview of Litigation (or Involved Progress of Litigation (or Disclosure
any (or Arbitration) and the Litigation (or Arbitration) Disclosure Index
Arbitration) (RMB Arbitration) Date
estimated Impact Judgement
'0000)
liabilities
has filed an appeal with Hubei
Provincial Higher People's
Court and requested that the
first-instance judgment be
revoked the case be
remanded for retrial or the
judgment be amended and
that the appellees bear the
litigation costs.No other significant litigation or arbitration during the reporting period.IX. Punishment and Rectification
□Applicable √Not applicable
None during the Reporting Period.X. Integrity of the Company its controlling shareholders and actual controller
□ Applicable √ Not applicable
43ADAMA Ltd. Semi-Annual Report 2025
XI. Material Related-Party Transactions
1. Related-Party Transactions in the ordinary course of business
√ Applicable □ Not applicable
Market price
Pricing Percentage Whether
Type of Approved of similar
principle of Value against exceeds
related Content of related transaction Settlement transactions Date of Index of the
Related party Relationship related Price (RMB transactions the
party party transaction quota (RMB methods if the announcement disclosure
party ‘0000) of the same approved
transaction ‘0000) Company
transaction kind quota
knows
Announcement
on Expected
Purchasing
Related-Party
Under the raw
Syngenta AG Transactions in
same control materials Purchase of raw Market Cash
and its Market price 42838 5.76% 118797 No N/A March 142025 the Ordinary
of Sinochem and products materials/products price Settlement
subsidiaries Course of
Holdings from related
Business in
parties
2025 (No.2025-
11)
Purchasing Announcement
Bluestar
Under the raw on Expected
(Beijing)
same control materials Purchase of raw Market Cash Related-Party
Chemical Market price - - 1 No N/A March 142025
of Sinochem and products materials/products price Settlement Transactions in
Machinery Co.Holdings from related the Ordinary
Ltd.parties Course of
Business in
44ADAMA Ltd. Semi-Annual Report 2025
Market price
Pricing Percentage Whether
Type of Approved of similar
principle of Value against exceeds
related Content of related transaction Settlement transactions Date of Index of the
Related party Relationship related Price (RMB transactions the
party party transaction quota (RMB methods if the announcement disclosure
party ‘0000) of the same approved
transaction ‘0000) Company
transaction kind quota
knows
2025 (No.2025-
11)
Announcement
on Expected
Purchasing
Related-Party
Jiangsu Under the raw
Transactions in
Huaihe same control materials Purchase of raw Market Cash
Market price 6914 0.93% 16500 No N/A March 142025 the Ordinary
Chemicals of Sinochem and products materials/products price Settlement
Course of
Co. Ltd. Holdings from related
Business in
parties
2025 (No.2025-
11)
Announcement
on Expected
Purchasing
Related-Party
Under the raw
Sinochem Oil Transactions in
same control materials Purchase of raw Market Cash
(Hainan) Market price 2351 0.32% 6250 No N/A March 142025 the Ordinary
of Sinochem and products materials/products price Settlement
Co. Ltd. Course of
Holdings from related
Business in
parties
2025 (No.2025-
11)
Purchase of raw Market Cash
Sinochem Under the Purchasing Market price - - 1250 No N/A March 142025 Announcement
materials/products price Settlement
Nengke same control raw on Expected
45ADAMA Ltd. Semi-Annual Report 2025
Market price
Pricing Percentage Whether
Type of Approved of similar
principle of Value against exceeds
related Content of related transaction Settlement transactions Date of Index of the
Related party Relationship related Price (RMB transactions the
party party transaction quota (RMB methods if the announcement disclosure
party ‘0000) of the same approved
transaction ‘0000) Company
transaction kind quota
knows
Carbon Assets of Sinochem materials Related-Party
Operation Holdings and products Transactions in
Co. Ltd. from related the Ordinary
parties Course of
Business in
2025 (No.2025-
11)
Announcement
on Expected
Purchasing
Related-Party
Sinochem Under the raw
Transactions in
Petrochemical same control materials Purchase of raw Market Cash
Market price 726 0.10% 1000 No N/A March 142025 the Ordinary
Sales of Sinochem and products materials/products price Settlement
Course of
Co. Ltd. Holdings from related
Business in
parties
2025 (No.2025-
11)
Announcement
Purchasing
on Expected
Under the raw
Sinochem Related-Party
same control materials Purchase of raw Market Cash
Hebei Market price - - 902 No N/A March 142025 Transactions in
of Sinochem and products materials/products price Settlement
Co. Ltd. the Ordinary
Holdings from related
Course of
parties
Business in
2025 (No.2025-
46ADAMA Ltd. Semi-Annual Report 2025
Market price
Pricing Percentage Whether
Type of Approved of similar
principle of Value against exceeds
related Content of related transaction Settlement transactions Date of Index of the
Related party Relationship related Price (RMB transactions the
party party transaction quota (RMB methods if the announcement disclosure
party ‘0000) of the same approved
transaction ‘0000) Company
transaction kind quota
knows
11)
Announcement
on Expected
Purchasing
Related-Party
Jiangsu Youjia Under the raw
Transactions in
Plant same control materials Purchase of raw Market Cash
Market price 8200 1.10% 25235 No N/A March 142025 the Ordinary
Protection of Sinochem and products materials/products price Settlement
Course of
Co. Ltd. Holdings from related
Business in
parties
2025 (No.2025-
11)
Announcement
on Expected
Purchasing
Hangzhou Related-Party
Under the raw
(Torch) Xidou Transactions in
same control materials Purchase of raw Market Cash
Door Film Market price 3 0.00% 6 No N/A March 142025 the Ordinary
of Sinochem and products materials/products price Settlement
Industry Course of
Holdings from related
Co. Ltd. Business in
parties
2025 (No.2025-
11)
Zhonglan Under the Purchasing Purchase of raw Market Cash Announcement
Market price 454 0.06% 566 No N/A March 142025
International same control raw materials/products price Settlement on Expected
Chemical of Sinochem materials Related-Party
47ADAMA Ltd. Semi-Annual Report 2025
Market price
Pricing Percentage Whether
Type of Approved of similar
principle of Value against exceeds
related Content of related transaction Settlement transactions Date of Index of the
Related party Relationship related Price (RMB transactions the
party party transaction quota (RMB methods if the announcement disclosure
party ‘0000) of the same approved
transaction ‘0000) Company
transaction kind quota
knows
Co. Ltd. Holdings and products Transactions in
from related the Ordinary
parties Course of
Business in
2025 (No.2025-
11)
Liaocheng Luxi Announcement
Polyol New on Expected
Purchasing
Material Related-Party
Under the raw
Technology Transactions in
same control materials Purchase of raw Market Cash
Co.Ltd. Market price 1788 0.24% 3750 No N/A March 142025 the Ordinary
of Sinochem and products materials/products price Settlement
Liaocheng Luxi Course of
Holdings from related
Methylamine Business in
parties
Chemical 2025 (No.2025-
Co. Ltd. 11)
Announcement
Purchasing
on Expected
Under the raw
Ningxia Ruitai Related-Party
same control materials Purchase of raw Market Cash
Technology Market price 7 0.00% 125 No N/A March 142025 Transactions in
of Sinochem and products materials/products price Settlement
Co.Ltd. the Ordinary
Holdings from related
Course of
parties
Business in
2025 (No.2025-
48ADAMA Ltd. Semi-Annual Report 2025
Market price
Pricing Percentage Whether
Type of Approved of similar
principle of Value against exceeds
related Content of related transaction Settlement transactions Date of Index of the
Related party Relationship related Price (RMB transactions the
party party transaction quota (RMB methods if the announcement disclosure
party ‘0000) of the same approved
transaction ‘0000) Company
transaction kind quota
knows
11)
Announcement
on Expected
Purchasing
Related-Party
Under the raw
Transactions in
same control materials Purchase of raw Market Cash
Sinofert Market price 63 0.01% 125 No N/A March 142025 the Ordinary
of Sinochem and products materials/products price Settlement
Course of
Holdings from related
Business in
parties
2025 (No.2025-
11)
Announcement
on Expected
Purchasing
Related-Party
Under the raw
Transactions in
Sinochem same control materials Purchase of raw Market Cash
Market price 1080 0.15% 4253 No N/A March 142025 the Ordinary
Agro Co.Ltd. of Sinochem and products materials/products price Settlement
Course of
Holdings from related
Business in
parties
2025 (No.2025-
11)
Jiangsu Under the Purchasing Purchase of raw Market Cash Announcement
Market price 33 0.00% 17088 No N/A March 142025
Yangnong same control raw materials/products price Settlement on Expected
Chemical of Sinochem materials Related-Party
49ADAMA Ltd. Semi-Annual Report 2025
Market price
Pricing Percentage Whether
Type of Approved of similar
principle of Value against exceeds
related Content of related transaction Settlement transactions Date of Index of the
Related party Relationship related Price (RMB transactions the
party party transaction quota (RMB methods if the announcement disclosure
party ‘0000) of the same approved
transaction ‘0000) Company
transaction kind quota
knows
Co. Ltd. Holdings and products Transactions in
from related the Ordinary
parties Course of
Business in
2025 (No.2025-
11)
Announcement
on Expected
Purchasing
Sinochem Related-Party
Under the raw
Crop Transactions in
same control materials Purchase of raw Market Cash
Protection Market price 342 0.05% 3719 No N/A March 142025 the Ordinary
of Sinochem and products materials/products price Settlement
Products Course of
Holdings from related
Co. Ltd. Business in
parties
2025 (No.2025-
11)
Taicang Announcement
Purchasing
Zhonglan on Expected
Under the raw
Environmental Related-Party
same control materials Purchase of raw Market Cash
Protection Market price 13 0.00% - - N/A March 142025 Transactions in
of Sinochem and products materials/products price Settlement
Technology the Ordinary
Holdings from related
Service Co. Course of
parties
LTD Business in
2025 (No.2025-
50ADAMA Ltd. Semi-Annual Report 2025
Market price
Pricing Percentage Whether
Type of Approved of similar
principle of Value against exceeds
related Content of related transaction Settlement transactions Date of Index of the
Related party Relationship related Price (RMB transactions the
party party transaction quota (RMB methods if the announcement disclosure
party ‘0000) of the same approved
transaction ‘0000) Company
transaction kind quota
knows
11)
Announcement
on Expected
Purchasing
Related-Party
Under the raw
ELKEM Transactions in
same control materials Purchase of raw Market Cash
SILICONES Market price 163 0.02% - - N/A March 142025 the Ordinary
of Sinochem and products materials/products price Settlement
BRASIL LTDA Course of
Holdings from related
Business in
parties
2025 (No.2025-
11)
Announcement
on Expected
China Bluestar Purchasing
Related-Party
Chengrand Under the raw
Transactions in
Research same control materials Purchase of raw Market Cash
Market price 1 0.00% - - N/A March 142025 the Ordinary
Institute of Sinochem and products materials/products price Settlement
Course of
Chemical Holdings from related
Business in
Industry parties
2025 (No.2025-
11)
Shenyang Under the Purchasing Purchase of raw Market Cash Announcement
Market price 56 0.01% - - N/A March 142025
Sciencreat same control raw materials/products price Settlement on Expected
Chemicals Co. of Sinochem materials Related-Party
51ADAMA Ltd. Semi-Annual Report 2025
Market price
Pricing Percentage Whether
Type of Approved of similar
principle of Value against exceeds
related Content of related transaction Settlement transactions Date of Index of the
Related party Relationship related Price (RMB transactions the
party party transaction quota (RMB methods if the announcement disclosure
party ‘0000) of the same approved
transaction ‘0000) Company
transaction kind quota
knows
Ltd. Holdings and products Transactions in
from related the Ordinary
parties Course of
Business in
2025 (No.2025-
11)
Announcement
on Expected
Related-Party
Under the Purchasing
Bluestar Transactions in
same control fixed assets Purchase of fixed Market Cash
Engineering Market price - - 3375 No N/A March 142025 the Ordinary
of Sinochem from related assets price Settlement
Co.Ltd. Course of
Holdings parties
Business in
2025 (No.2025-
11)
Announcement
Bluestar on Expected
Under the Purchasing
(Beijing) Related-Party
same control fixed assets Purchase of fixed Market Cash
Chemical Market price - - 313 No N/A March 142025 Transactions in
of Sinochem from related assets price Settlement
Machinery the Ordinary
Holdings parties
Co. Ltd. Course of
Business in
2025 (No.2025-
52ADAMA Ltd. Semi-Annual Report 2025
Market price
Pricing Percentage Whether
Type of Approved of similar
principle of Value against exceeds
related Content of related transaction Settlement transactions Date of Index of the
Related party Relationship related Price (RMB transactions the
party party transaction quota (RMB methods if the announcement disclosure
party ‘0000) of the same approved
transaction ‘0000) Company
transaction kind quota
knows
11)
Announcement
on Expected
Huaxia Related-Party
Under the Purchasing
Hanhua Transactions in
same control fixed assets Purchase of fixed Market Cash
Chemical Market price 5 0.00% - - N/A March 142025 the Ordinary
of Sinochem from related assets price Settlement
Equipment Course of
Holdings parties
Co. LTD Business in
2025 (No.2025-
11)
Announcement
on Expected
Selling raw Related-Party
Under the
Syngenta AG materials Transactions in
same control Market Cash
and its and products Selling products Market price 36848 2.46% 114794 No N/A March 142025 the Ordinary
of Sinochem price Settlement
subsidiaries to related Course of
Holdings
parties Business in
2025 (No.2025-
11)
Jiangsu Under the Selling raw Market Cash Announcement
Selling products Market price 8073 0.54% 19488 No N/A March 142025
Huaihe same control materials price Settlement on Expected
Chemicals of Sinochem and products Related-Party
53ADAMA Ltd. Semi-Annual Report 2025
Market price
Pricing Percentage Whether
Type of Approved of similar
principle of Value against exceeds
related Content of related transaction Settlement transactions Date of Index of the
Related party Relationship related Price (RMB transactions the
party party transaction quota (RMB methods if the announcement disclosure
party ‘0000) of the same approved
transaction ‘0000) Company
transaction kind quota
knows
Co. Ltd. Holdings to related Transactions in
parties the Ordinary
Course of
Business in
2025 (No.2025-
11)
Announcement
on Expected
Selling raw Related-Party
Under the
materials Transactions in
same control Market Cash
Sinofert and products Selling products Market price 5319 0.35% 14825 No N/A March 142025 the Ordinary
of Sinochem price Settlement
to related Course of
Holdings
parties Business in
2025 (No.2025-
11)
Announcement
Selling raw on Expected
Jiangsu Youjia Under the
materials Related-Party
Plant same control Market Cash
and products Selling products Market price 7 0.00% 84 No N/A March 142025 Transactions in
Protection of Sinochem price Settlement
to related the Ordinary
Co. Ltd. Holdings
parties Course of
Business in
2025 (No.2025-
54ADAMA Ltd. Semi-Annual Report 2025
Market price
Pricing Percentage Whether
Type of Approved of similar
principle of Value against exceeds
related Content of related transaction Settlement transactions Date of Index of the
Related party Relationship related Price (RMB transactions the
party party transaction quota (RMB methods if the announcement disclosure
party ‘0000) of the same approved
transaction ‘0000) Company
transaction kind quota
knows
11)
Announcement
on Expected
Beijing Selling raw Related-Party
Under the
Guangyuan materials Transactions in
same control Market Cash
Yinong and products Selling products Market price 31 0.00% 59 No N/A March 142025 the Ordinary
of Sinochem price Settlement
Chemical to related Course of
Holdings
Co. Ltd. parties Business in
2025 (No.2025-
11)
Announcement
on Expected
Sinochem
Selling raw Related-Party
Agricultural Under the
materials Transactions in
Ecological same control Market Cash
and products Selling products Market price - - 75 No N/A March 142025 the Ordinary
Technology of Sinochem price Settlement
to related Course of
(Hubei) Holdings
parties Business in
Co. Ltd.
2025 (No.2025-
11)
Jiangsu Youshi
Under the Selling raw Market Cash Announcement
Chemical Selling products Market price 2249 0.15% 5000 No N/A March 142025
same control materials price Settlement on Expected
Co. Ltd.of Sinochem and products Related-Party
55ADAMA Ltd. Semi-Annual Report 2025
Market price
Pricing Percentage Whether
Type of Approved of similar
principle of Value against exceeds
related Content of related transaction Settlement transactions Date of Index of the
Related party Relationship related Price (RMB transactions the
party party transaction quota (RMB methods if the announcement disclosure
party ‘0000) of the same approved
transaction ‘0000) Company
transaction kind quota
knows
Holdings to related Transactions in
parties the Ordinary
Course of
Business in
2025 (No.2025-
11)
Announcement
on Expected
Selling raw Related-Party
Under the
Sinochem materials Transactions in
same control Market Cash
Agro and products Selling products Market price 233 0.02% 420 No N/A March 142025 the Ordinary
of Sinochem price Settlement
Co. Ltd. to related Course of
Holdings
parties Business in
2025 (No.2025-
11)
Announcement
Selling raw on Expected
Under the
materials Related-Party
same control Market Cash
Sino MAP and products Selling products Market price 2704 0.18% - - N/A March 142025 Transactions in
of Sinochem price Settlement
to related the Ordinary
Holdings
parties Course of
Business in
2025 (No.2025-
56ADAMA Ltd. Semi-Annual Report 2025
Market price
Pricing Percentage Whether
Type of Approved of similar
principle of Value against exceeds
related Content of related transaction Settlement transactions Date of Index of the
Related party Relationship related Price (RMB transactions the
party party transaction quota (RMB methods if the announcement disclosure
party ‘0000) of the same approved
transaction ‘0000) Company
transaction kind quota
knows
11)
Announcement
on Expected
Related-Party
Sinochem Under the Receiving
Transactions in
Information same control services Market Cash
IT services Market price 37 0.00% 379 No N/A March 142025 the Ordinary
Technology of Sinochem from related price Settlement
Course of
Co. Ltd Holdings parties
Business in
2025 (No.2025-
11)
Announcement
on Expected
Related-Party
Under the Receiving
Syngenta AG Market Transactions in same control services Cash
and its Regular services Market price 16 0.00% 63 No N/A March 142025 the Ordinary
of Sinochem from related price Settlement
subsidiaries Course of
Holdings parties
Business in
2025 (No.2025-
11)
Sinochem Under the Receiving Market Cash Announcement
Insurance services Market price - - 500 No N/A March 142025
Insurance same control services price Settlement on Expected
Brokers of Sinochem from related Related-Party
57ADAMA Ltd. Semi-Annual Report 2025
Market price
Pricing Percentage Whether
Type of Approved of similar
principle of Value against exceeds
related Content of related transaction Settlement transactions Date of Index of the
Related party Relationship related Price (RMB transactions the
party party transaction quota (RMB methods if the announcement disclosure
party ‘0000) of the same approved
transaction ‘0000) Company
transaction kind quota
knows
(Beijing) Holdings parties Transactions in
Co. Ltd. the Ordinary
Course of
Business in
2025 (No.2025-
11)
Announcement
on Expected
Related-Party
Under the Receiving
Transactions in
same control services Market Cash
Sino MAP Regular services Market price - - 3 No N/A March 142025 the Ordinary
of Sinochem from related price Settlement
Course of
Holdings parties
Business in
2025 (No.2025-
11)
Announcement
on Expected
Under the Receiving
Related-Party
same control services Market Cash
Sinofert Regular services Market price - - 26 No N/A March 142025 Transactions in
of Sinochem from related price Settlement
the Ordinary
Holdings parties
Course of
Business in
2025 (No.2025-
58ADAMA Ltd. Semi-Annual Report 2025
Market price
Pricing Percentage Whether
Type of Approved of similar
principle of Value against exceeds
related Content of related transaction Settlement transactions Date of Index of the
Related party Relationship related Price (RMB transactions the
party party transaction quota (RMB methods if the announcement disclosure
party ‘0000) of the same approved
transaction ‘0000) Company
transaction kind quota
knows
11)
Announcement
on Expected
Shenyang Related-Party
Under the Receiving
Chemical Transactions in
same control services Market Cash
Research Technical services Market price - - 13 No N/A March 142025 the Ordinary
of Sinochem from related price Settlement
Institute Course of
Holdings parties
Co. Ltd. Business in
2025 (No.2025-
11)
Announcement
Sinochem on Expected
Zhoushan Related-Party
Under the Receiving
Hazardous Transactions in
same control services Market Cash
Chemicals Training services Market price 1 0.00% 13 No N/A March 142025 the Ordinary
of Sinochem from related price Settlement
Emergency Course of
Holdings parties
Rescue Base Business in
Co. Ltd. 2025 (No.2025-
11)
Shenyang Under the Receiving Market Cash Announcement
Regular services Market price 1 0.00% - - N/A March 142025
Shenhua same control services price Settlement on Expected
Institute of Sinochem from related Related-Party
59ADAMA Ltd. Semi-Annual Report 2025
Market price
Pricing Percentage Whether
Type of Approved of similar
principle of Value against exceeds
related Content of related transaction Settlement transactions Date of Index of the
Related party Relationship related Price (RMB transactions the
party party transaction quota (RMB methods if the announcement disclosure
party ‘0000) of the same approved
transaction ‘0000) Company
transaction kind quota
knows
Testing Holdings parties Transactions in
Technology the Ordinary
Co. Ltd. Course of
Business in
2025 (No.2025-
11)
Total -- -- 120556 -- 358997 -- -- -- -- --
Details of large sales return -
According to the Company's daily business operation needs the Company estimates that the total amount of daily related party transactions in
Execution of related-party transactions in the ordinary
2025 will not exceed RMB 3589.97 million. For details please refer to Announcement on Expected Related-Party Transactions in the Ordinary
course of business whose value was expected by types
Course of Business in 2025 (No.: 2025-11). The Company’s actual amount of daily related party transactions defined in the listing rules
during this reporting period (if any)
incurred for the six months ended June 302025 is RMB 1205.56 million which does not exceed the expected amount.Reasons for large difference between transaction price and The Company’s related transactions with related party shall be carried out in accordance with the principle of voluntary equality and mutual
market reference price (if applicable) benefit fair and will not harm the interests of the Company.
60ADAMA Ltd. Semi-Annual Report 2025
2. Related-Party Transactions arising from Asset/Equity acquisition or sale
□ Applicable √ Not applicable
The Company was not involved in any related-party transactions arising from asset/equity acquisition or
sale during the Reporting Period.
3. Related-Party Transactions with Joint Investments
□ Applicable √ Not applicable
The Company was not involved in any related-party transaction with joint investments during the
Reporting Period.
4. Credits and Liabilities with Related Parties
√ Applicable □ Not applicable
Whether non-operating credits and liabilities with related parties exist or not
□ Yes √ No
The Company was not involved in any non-operating credit and liability with related parties in the
Reporting Period.
5. Transactions with financial companies with related relationships
√ Applicable □ Not applicable
Deposit Business
In RMB ’0000
Transactions during the
Reporting Period
Total Deposit Total
Maximum
Related Range of Opening Amount for Withdrawal Ending
Relations Daily Deposit
Parties Interest Rate Balance the Amount for Balance
Limit
Reporting the
Period Reporting
Period
Under the
Sinochem
same control
Finance Co. 150000 0.45%-1.45% 62744 35312 29995 68061
of Sinochem
Ltd
Holdings
61ADAMA Ltd. Semi-Annual Report 2025
Loans
In RMB ’0000
Transactions during the
Reporting Period
Credit Total Amount Total Amount
Related Range of Opening Ending
Relations Amount of of Loans for of Payment
Parties Interest Rate Balance Balance
the Loan the for the
Reporting Reporting
Period Period
Under the
Sinochem
same control
Finance Co. 200000 2.11%-2.4% 2000 2040 40 4000
of Sinochem
Ltd
Holdings
Facilities and Other Financial Services
In RMB ’0000
Total Amount Actual Amount
Related Party Relations Type of the Services
Incurred
Sinochem Finance Under the same control
Facilities 100000 4000
Co. Ltd of Sinochem Holdings
6. Transactions between the finance company controlled by the Company and related parties
□ Applicable √ Not applicable
The Company does not hold any equity interest in any finance company.
7. Other material related-party transactions
□Applicable √Not applicable
The Company did not have other material related-party transactions during the reporting period.XII. Particulars regarding material contracts and execution thereof
1. Particulars about trusteeship Contract and Lease
(1) Trusteeship
√Applicable □Not applicable
Explanation on Trusteeship
1) Entrusted Management of Anhui Petrochemical
On December 31 2021 the Company entered into an Entrusted Operation and Management Agreement
(hereinafter referred to as the "Original Agreement") with CNAC. Pursuant to this Agreement during the
62ADAMA Ltd. Semi-Annual Report 2025
entrusted management period the Company is entrusted to exercise the management rights that CNAC
holds over Anhui Petrochemical Group Co. Ltd. (hereinafter referred to as "Anhui Petrochemical"). For
specific details please refer to the Announcement on Signing an Entrusted Operation and Management
Agreement with a Related Party (Announcement No. 2022-2) the Announcement on the Resolution of
the 29th Meeting of the 9th Board of Directors (Announcement No. 2023-46) and the Announcement on
the Resolution of the 8th Meeting of the 10th Board of Directors (Announcement No. 2024-59).
2) Entrusted Management of Overlapping Products Between Syngenta AG and the Company and
Mutual Entrusted Management of Different Overlapping Products with Yangnong Chemical
On December 31 2024 the Company entered into entrusted management agreements with Syngenta
AG (hereinafter referred to as "SAG") and Jiangsu Yangnong Chemical Co. Ltd. (hereinafter referred to
as "Yangnong Chemical") respectively. Regarding the overlapping products between the Company and
SAG SAG has entrusted the Company to exercise and undertake the entrusted management business
of such overlapping products. Regarding the overlapping products between the Company and Yangnong
Chemical the Company and Yangnong Chemical have mutually entrusted each other to exercise and
undertake the entrusted management business of different overlapping products. For specific details
please refer to the Announcement on the Signing of the Entrusted Management Agreement with Related
Parties (Announcement No. 2024-55) and the Announcement on the Resolution of the 9th Meeting of the
10th Board of Directors (Announcement No. 2025-1).
Projects Whose Profits and Losses for the Company Account for More Than 10% of the Company’s Total
Profits in the Reporting Period
□Applicable √Not Applicable
During the reporting period the Company did not have entrusted management projects whose profits
and losses account for more than 10% of the Company’s total profits in the reporting period.
(2) Contract operation
□ Applicable √ Not applicable
There was no contract operation of the Company in the Reporting Period.
(3) Lease
□Applicable√ Not applicable
There is no major lease in the Reporting Period.
2. Significant Guarantees
(1) Details of guarantees
√Applicable □ Not applicable
Unless otherwise specified the unit hereunder is RMB ‘0000
Guarantees provided by the Company in favor of third parties (excluding subsidiaries)
Guarantee Disclosure Planned
Actual Actual Type of Collater Counter Period of expire Guarante
date of the guarante occurrencd party guaranteguarante al（if Guarante guarante d or e for aannounceme e e date e e any） e（if e not related
63ADAMA Ltd. Semi-Annual Report 2025nt amount amount any） party or
not
----------------------
Total guarantee line approved in Total amount of the occurred
favor of third parties (excluding guarantee in favor of third parties
00
subsidiaries) during the reporting (excluding subsidiaries) during the
period (A1) reporting period (A2)
Aggregated guarantee line in
favor of third parties (excluding Total guarantee balance in favor of
subsidiaries) that has been 5000 third parties (excluding subsidiaries) 0
approved by the end of the by the end of the reporting period (A4)
reporting period (A3)
Guarantees provided by the Company in favor of its subsidiaries
Guarante
Disclosure Planned Actual Counter
Actual Type of Collater Period of expire e for a
Guarantee date of the guarante guarante Guaranteoccurrenc guarante al（if guarante d or relatedd party announceme e e e（ife date e any） e not party ornt amount amount any）
not
Three
years
Joint and
January 1 after the
3000 several / / Yes No
2022 project
liability
loan
matures
December 22
ADAMA Three 2020
Anpon years
125800 Joint and
(Jiangsu) April 29 2021 January 1 after the 100 several / / No No
Ltd. October 2022 project liability
282021 loan
matures
Three
Joint and
February years
2100 several / /
28 2022 after the
No No
liability project
loan
64ADAMA Ltd. Semi-Annual Report 2025
matures
Three
years
Joint and
April 28 after the
1400 several / / No No
2022 project
liability
loan
matures
Three
years
Joint and
May 20 after the
750 several / / No No
2022 project
liability
loan
matures
Three
years
Joint and
June 26 after the
2350 several / / No No
2022 project
liability
loan
matures
Three
years
Joint and
January after the
200 several / / Yes No
25 2022 project
liability
loan
matures
Three
years
Joint and
February after the
200 several / / Yes No
28 2022 project
liability
loan
matures
Three
years
Joint and
February after the
190 several / / No No
28 2022 project
liability
loan
matures
65ADAMA Ltd. Semi-Annual Report 2025
Three
years
Joint and
July 2 after the
810 several / / No No
2022 project
liability
loan
matures
Three
years
Joint and
February after the
300 several / / No No
5 2024 project
liability
loan
matures
Three
years
Joint and
August 11 after the
700 several / / No No
2022 project
liability
loan
matures
Three
years
Joint and
August 11 after the
100 several / / Yes No
2022 project
liability
loan
matures
March 31
104100 Three
2022
years
Joint and
August 31 after the
1000 several / / No No
2022 project
liability
loan
matures
Three
years
Joint and
October after the
1100 several / / No No
28 2022 project
liability
loan
matures
October 1000 Joint and / / Three No No
66ADAMA Ltd. Semi-Annual Report 2025
31 2022 several years
liability after the
project
loan
matures
Three
years
Joint and
November after the
900 several / / Yes No
17 2022 project
liability
loan
matures
Three
years
Joint and
November after the
2500 several / / No No
23 2022 project
liability
loan
matures
Three
years
Joint and
November after the
1100 several / / No No
30 2022 project
liability
loan
matures
Three
years
Joint and
January after the
700 several / / No No
12 2023 project
liability
loan
matures
Three
years
Joint and
January after the
300 several / / Yes No
12 2023 project
liability
loan
matures
January Three
1000 Joint and / / years No No 16 2023 several
after the
67ADAMA Ltd. Semi-Annual Report 2025
liability project
loan
matures
Three
years
Joint and
April 4 after the
1200 several / / No No
2023 project
liability
loan
matures
Three
years
Joint and
April 4 after the
1400 several / / No No
2023 project
liability
loan
matures
Three
years
Joint and
April 13 after the
200 several / / No No
2023 project
liability
loan
matures
Three
years
Joint and
April 26 after the
150 several / / No No
2023 project
liability
loan
matures
Three
years
Joint and
October after the
300 several / / No No
17 2023 project
liability
loan
matures
Three
Joint and
October years
500 several / / No No
17 2023 after the
liability project
loan
68ADAMA Ltd. Semi-Annual Report 2025
matures
Three
years
Joint and
January after the
850 several / / No No
30 2024 project
liability
loan
matures
Three
years
Joint and
February after the
400 several / / No No
7 2024 project
liability
loan
matures
Three
Joint and years
April 10
5000 several / / after the No No
2024
liability loan
matures
Three
Joint and years
March 27 December
36000 3000 several / / after the No No
2024252024
liability loan
matures
Three
Joint and years
March 25
3000 several / / after the No No
2025
liability loan
matures
Total guarantee line
Total amount of the occurred guarantee in favor
approved in favor of the
31300 of the subsidiaries during the reporting period 3000
subsidiaries during the
(B2)
reporting period (B1)
Aggregated guarantee
line that has been Total guarantee balance in favor of the
approved in favor of the 297200 subsidiaries by the end of the reporting period 33100
subsidiaries by the end (B4)
of the reporting period
69ADAMA Ltd. Semi-Annual Report 2025
(B3)
Guarantees provided by subsidiaries in favor of subsidiaries (USD ’0000)
Guarante
Disclosure Planned Actual Counter
Actual Type of Collater Period of expire e for a
Guarantee date of the guarante guarante Guaranteoccurrenc guarante al（if guarante d or relatedd party announceme e e e（ife date e any） e not party ornt amount amount any）
not
Generally
7 years
Control joint and
October 31 October (subject
Solutions 1300 0 several / / No No
2018 30 2018 to the
Inc. liability
overseas
laws)
Related
guarantees
existed
before the
company
joint and
ADAMA was Valid until
Not applicable 10150 188 several / / No No
Brazil consolidate cancelled
liability
d into the
financial
statements
of the
Company.joint and Decembe
ADAMA January 22 December
900 900 several / / r 31 No No
Brazil 2022 29 2021
liability 2025
joint and Decembe
ADAMA December 19 January 4
10000 1610 several / / r 31 No No
Brazil 2024 2025
liability 2027
joint and Decembe
ADAMA December 19 January 4
2000 104 several / / r 31 No No
Brazil 2024 2025
liability 2026
Adama Not applicable 8801 Related 679 joint and / / Valid until No No
India guarantees several
70ADAMA Ltd. Semi-Annual Report 2025
Private existed liability cancelled
Ltd. before the
company
was
consolidate
d into the
financial
statements
of the
Company.Related
guarantees
existed
ADAMA
before the
Turkey
company
Tar?m joint and
was Valid until
Sanayi ve Not applicable 7150 0 several / / No No
consolidate cancelled
Ticaret liability
d into the
Limited
financial
?irketi
statements
of the
Company.Related
guarantees
existed
before the
company
Adama joint and
was Valid until
Makhteshi Not applicable unlimited 38265 several / / No No
consolidate cancelled
m liability
d into the
financial
statements
of the
Company.Adama joint and
May 3 Valid until
Makhteshi April 25 2023 7875 0 several / / No No
2023 cancelled
m liability
Adama Related
joint and
Valid until
Not applicable unlimited
Agan guarantees
22390 several / / No No
cancelled
existed liability
71ADAMA Ltd. Semi-Annual Report 2025
before the
company
was
consolidate
d into the
financial
statements
of the
Company.ADAMA
joint and
Agricultural January 22 January Valid until
437 37 several / / No No
Solutions 2022 22 2022 cancelled
liability
UK Ltd.ADAMA
CELSIUS
BV
Curacao
joint and
branch & November 25 November Valid until
4500 0 several / / No No
ADAMA 2022 24 2022 cancelled
liability
Fahrenheit
BV
Curacao
Branch
ADAMA
CELSIUS
BV
Curacao
joint and
branch & January 22 January Valid until
7000 5856 several / / No No
ADAMA 2022 22 2022 cancelled
liability
Fahrenheit
BV
Curacao
Branch
Related
guarantees
ADAMA existed joint and Valid until
Ukraine Not applicable 1500 before the 0 several / / No No cancelled
LLC company liability
was
consolidate
72ADAMA Ltd. Semi-Annual Report 2025
d into the
financial
statements
of the
Company.Related
guarantees
existed
before the
company
ADAMA joint and
was Valid until
Ukraine Not applicable 1500 0 several / / Yes No
consolidate cancelled
LLC liability
d into the
financial
statements
of the
Company.ADAMA joint and
October 10 October Valid until
Ukraine 792 276 several / / No No
2023 28 2023 cancelled
LLC liability
ADAMA joint and
December 19 February Valid until
Ukraine 800 696 several / / No No
2024 3 2025 cancelled
LLC liability
Related
guarantees
existed
Makhteshi before the
m Agan of company joint and
was Valid until
North Not applicable 4000 0 several / / No No consolidate cancelled
America liability d into the
Inc. financial
statements
of the
Company.joint and Six
Makhteshi September September
4543 4543 several / / months No No
m Agan of 28 2024 26 2024
liability after the
73ADAMA Ltd. Semi-Annual Report 2025
North terminatio
America n
Inc.of the
principal
agreeme
nt
Adama joint and
December 19 December Valid until
Australia 377 0 several / / No No
2024 23 2024 cancelled
Pty Ltd. liability
Total guarantee line
Total amount of the guarantee inapproved in favor of the 75544（approximately
0 favor of the subsidiaries occurredsubsidiaries during the RMB 5407.89 million）
during the reporting period (C2)
reporting period (C1)
72125
Aggregated guarantee
(approximately RMB
line that has been
5163.14 million) (the Total guarantee balance in favor ofapproved in favor of the 75544（approximatelyguarantee amount for the subsidiaries by the end of thesubsidiaries by the end RMB 5407.89 million）
Adama Makhteshim reporting period (C4)
of the reporting period
and Adama Agan is
(C3)
unlimited)
Total guarantee amount provided by the Company (total of the above-mentioned three kinds of guarantees)
Total guarantee line
Total actual occurred amount of
approved during the
31300 guarantee during the reporting period 543789
reporting period
(A2+B2+C2)
(A1+B1+C1)
Total guarantee line that
has been approved at Total actual guarantee balance at the
the end of the reporting 818514 end of the reporting period 573889
period (A4+B4+C4)
(A3+B3+C3)
Proportion of total guarantee amount
30.36%
(A4+B4+C4) to the net assets of the Company
Of which:
74ADAMA Ltd. Semi-Annual Report 2025
The balance of the guarantee provided in
favor of the controlling shareholder and 0
related party.Amount of debt guarantee provided for the USD 703.22 million
guaranteed party whose asset-liability ratio is
not less than 70% directly or indirectly (E) (approximately RMB 5034.07 million)
The amount of the guarantee that exceeds
0
50% of the net assets
Total amount of the above three guarantees USD 703.22 million
(D+E+F) (approximately RMB 5034.07 million)
As for undue guarantee liability to guarantee
has happened or there is evidence that joint
--
liquidated liability may be undertaken during
this Reporting Period (if existing)
Regulated procedures are violated to offer
--
guarantee (if existing)
3. Wealth management entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Other Significant Contracts
□ Applicable √ Not applicable
None during the Reporting Period.XIII. Other Significant Events
√ Applicable □ Not applicable
Explanation on the Fulfillment of Performance Commitments
When the Company acquired the equity interest in Adama Huifeng (Shanghai) Agricultural Technology
Co. Ltd (“Adama Huifeng (Shanghai)”) and Adama Huifeng from Jiangsu Huifeng Biological Agriculture
Co. Ltd (“Jiangsu Huifeng”) during 2020 and 2021 there were performance commitments made by
Jiangsu Huifeng regarding specific business operations of the acquired subsidiaries. If the performance
commitments is not met Jiangsu Huifeng shall make a price adjustment payment calculated based on
75ADAMA Ltd. Semi-Annual Report 2025
a method as agreed. By the end of 2023 when the commitment period ended the performance
commitments has not been fulfilled. There were disputes between the Company and Jiangsu Huifeng
regarding the price adjustment payment and the Company filed the arbitration application as the
Applicant to the Shanghai International Economic and Trade Arbitration Commission against Jiangsu
Huifeng as the claimant.On April 1 2025 Shanghai International Economic and Trade Arbitration Commission rendered an
award in respect of the arbitration according to which Jiangsu Huifeng shall pay the Company the price
adjustment payment of RMB45000000 yuan the damage compensation for failure to pay the price
adjustment amount on time and a certain proportion of fees for the attorney and the arbitration as well
as other expenses incurred by the Company for initiating the case.On June 30 2025 the Company signed an agreement with Jiangsu Huifeng stipulating that the mutual
payments in the price adjustment payment case and the case of payment for equity transfer between
the Company and Jiangsu Huifeng shall be offset. According to the above agreement after calculation
Jiangsu Huifeng shall pay the offset balance of RMB 34669 to the Company. On July 9 2025 Jiangsu
Huifeng has paid the balance to the Company. The above-mentioned performance commitments of
Jiangsu Huifeng have been fulfilled.For details please refer to the Announcement on the Fulfillment of Performance Commitments Related
to a Controlled Subsidiary (Announcement No. 2024-9) Announcement on the Arbitration Matters about
Fulfillment of Performance Commitments Related to a Controlled Subsidiary (Announcement No. 2024-
28) and Announcement on the Progress of the Arbitration Matters about Fulfillment of Performance
Commitments Related to a Controlled Subsidiary (Announcement No. 2025-16) published on the
website www.cninfo.com.cn.XIV. Significant Events of Subsidiaries
□ Applicable √ Not applicable
76ADAMA Ltd. Semi-Annual Report 2025
Section VI - Share Changes and Shareholders
I. Changes in shares
1. Changes in shares
Unit: share
Before the Change Increase/Decrease (+/-) After the Change
Newly Issued Bonus Capitalization of
Amount Proportion Other Subtotal Amount Proportion
Shares Shares Public Reserves
I. Restricted Shares 0 0.0000% -- -- -- -- -- 0 0.0000%
1. State-owned Shares -- -- -- -- -- -- -- -- --
2. State-owned Legal Person’s Shares 0 0.00% -- -- -- -- -- 0 0.00%
3. Shares Held by Domestic Investors 0 0.0000% -- -- -- -- -- 0 0.0000%
Among which Shares Held by Domestic
00.00%----------00.00%
Legal Person
Shares Held by Domestic Natural
00.0000%----------00.0000%
Person
II. Shares not Subject to Trading
2329811766100.0000%----------2329811766100.0000%
Moratorium
1.RMB Ordinary Shares 2177071961 93.4441% -- -- -- -- -- 2177071961 93.4441%
2.Domestically Listed Foreign Shares 152739805 6.5559% -- -- -- -- -- 152739805 6.5559%
III. Total Shares 2329811766 100.00% -- -- -- -- -- 2329811766 100.00%
77ADAMA Ltd. Semi-Annual Report 2025
Reasons for the change in shares
□ Applicable √ Not applicable
Approval of the change in shares
□ Applicable √ Not applicable
The registered status for the change in shares
□ Applicable √ Not applicable
Status of share buyback
□ Applicable √ Not applicable
Status of share buyback in the way of centralized bidding
□ Applicable √Not applicable
Effects of the change in shares on the basic EPS diluted EPS net assets per share attributable to
common shareholders of the Company and other financial indexes over the last year and last period.□ Applicable √Not Applicable
Other contents that the Company considered necessary or is required by securities regulatory authorities
to disclose
□ Applicable √ Not applicable
2. Changes in Restricted Shares
□Applicable √Not applicable
II. Issuance and Listing of Securities
□ Applicable √ Not applicable
78ADAMA Ltd. Semi-Annual Report 2025
III. Total Number of Shareholders and Their Shareholdings
Unit: share
Total Number of Common 37602 (the number of ordinary A share Total Number of Preferred Stockholders
Shareholders as of the End of shareholders is 25923; the number of B with Vote Right Restored (if any) as of the 0
the Reporting Period share shareholders is 11679) End of the Reporting Period
Shareholding of Top 10 Shareholders or Those Holding More than 5% Shares
(Excluding the Shares Lending through Refinancing)
Number Pledged Marked
Number of Change of of Shares Number of or Frozen Shares
Holding Shareholding Shares Held Shares Held
Nature of
Number of Shareholder Percent at the End of during the Subject to Not Subject Status
Shareholder
age (%) the Reporting Reporting Trading to Trading of Amount
Period Period Moratoriu Moratorium Share
m s
State-owned 182813796
Syngenta Group Co. Ltd. 78.47% 1828137961 0 0 -- 0
Legal Person 1
China State-owned Enterprises
State-owned
Structural Adjustment Fund Co. 1.44% 33557046 0 0 -- 0
Legal Person 33557046
Ltd.China Cinda Asset Management State-owned
1.34%3111591600--0
Co. Ltd. Legal Person 31115916
Hong Kong Securities Clearing Overseas
0.79%1829158511843628018291585--0
Company Ltd. (HKSCC) Legal Person
Domestic
Zhu Shenglan Natural 0.31% 7300000 0 0 -- 0
7300000
Person
Domestic
Wu Feng Natural 0.31% 7212412 -507000 0 -- 0
7212412
Person
Qichun County State-owned
State-owned Share
Assets Supervision and 0.18% 4169266 0 0 4169266 4169266
Legal Person Freeze
Administration Bureau
Domestic
Zhang Jianwei Natural 0.15% 3492201 1434200 0 3492201 -- 0
Person
Domestic
Liu Minqin Natural 0.15% 3428946 -195427 0 3428946 -- 0
Person
GUOTAI JUNAN SECURITIES Overseas
0.13%3004597-3299903004597--0
(HONG KONG) LIMITED Legal Person
Strategic Investors or the
General Legal Person Who
Become the Top 10 Common Not Applicable
Shareholders (if any) due to the
Placement of New Shares
Syngenta Group Co. Ltd. is neither a related party to any other shareholders listed above nor any
Explanation on Associated acting-in-concert party as prescribed in the Administrative Methods for Acquisition of Listed
Relationship or/and Persons 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.
79ADAMA Ltd. Semi-Annual Report 2025
Explanation on Situations of
Entrusted Voting Rights or
Waiver of Voting Rights Not Applicable
Involved by the Above
Shareholders
Explanation on the Existence of
Special Repurchase Accounts
Not applicable
among the Top 10 Shareholders
(if any)
Details of Shares Held by Top 10 Shareholders Not Subject to Trading Moratorium (Excluding the Shares Lending through
Refinancing and Restricted Shares of Executives)
Number of Shares Held Not Type of Shares
Subject to Trading
Number of Shareholders
Moratorium at the End of the Type of Shares Amount
Period
Syngenta Group Co. Ltd. 1828137961 RMB Ordinary Share 1828137961
China State-owned Enterprises Structural Adjustment Fund RMB Ordinary Share
33557046
Co. Ltd. 33557046
RMB Ordinary Share
China Cinda Asset Management Co. Ltd. 31115916
31115916
Hong Kong Securities Clearing Company Ltd. (HKSCC) 18291585 RMB Ordinary Share
18291585
RMB Ordinary Share
Zhu Shenglan 7300000
7300000
RMB Ordinary Share
Wu Feng 7212412
7212412
Qichun County State-owned Assets Supervision and RMB Ordinary Share
4169266
Administration Bureau 4169266
RMB Ordinary Share
Zhang Jianwei 3492201
3492201
Liu Minqin 3428946 RMB Ordinary Share
3428946
domestically listed
GUOTAI JUNAN SECURITIES (HONG KONG) LIMITED 3004597 share in foreign
3004597
currencies
Explanation on associated relationship among the top Syngenta Group Co. Ltd. is neither a related party to any other shareholders
ten common shareholders of tradable share not listed above nor any acting-in-concert party as prescribed in the
subject to trading moratorium as well as among the Administrative Methods for Acquisition of Listed Companies. It is unknown
top ten common shareholders of tradable share not whether the other shareholders are related parties or acting-in-concert
subject to trading moratorium and top ten parties as prescribed in the Administrative Methods for Acquisition of Listed
shareholders or explanation on acting-in-concert Companies.Shareholder Zhu Shenglan held 7300000 shares of the Company through
a credit collateral securities trading account. Shareholder Wu Feng held
4660986 shares of the Company through a common securities account
Particular about the top ten common shareholder
and 2551426 shares of the Company through a credit collateral securities
participating in the securities lending and borrowing
trading account altogether 7212412 shares. Shareholder Liu Minqin held
business (if any)
246 shares of the Company through a common securities account and
3428700 shares of the Company through a credit collateral securities
trading account altogether 3428946 shares.
80ADAMA Ltd. Semi-Annual Report 2025
Shareholders holding more than 5% of shares top ten shareholders and top ten shareholders with
unlimited shares in circulation participating in the shares lending through refinancing arrangement
□Applicable √ Not applicable
Top ten shareholders and top ten shareholders with unlimited shares in circulation change from the
previous period due to the shares lending/returning through refinancing arrangement
□ Applicable √ Not applicable
Did any top 10 common shareholders or the top 10 common shareholders not subject to trading
moratorium of the Company carry out a promissory buy-back in the Reporting Period
□ Yes √ No
The top 10 common shareholders or the top 10 common shareholders not subject to trading
moratorium of the Company had not carried out any agreed buy-back in the Reporting Period.IV. Changes in Shareholdings of Directors Supervisors and Senior Management
□ Applicable √ Not applicable
No such cases in the Reporting Period. For details see Annual Report 2024.V. Change of the Controlling Shareholder or the Actual Controller
Change of the controlling shareholder in the Reporting Period
□ Applicable √ Not applicable
There was no change of the controlling shareholder of the Company in the Reporting Period.Change of the actual controller in the Reporting Period
□ Applicable √ Not applicable
There was no change of the actual controller of the Company in the Reporting Period.VI. Preferred Stocks
□ Applicable √ Not applicable
The Company doesn’t have preferred stocks during the reporting period.
81ADAMA Ltd. Semi-Annual Report 2025
Section VII - Bonds
□ Applicable √ Not applicable
82ADAMA Ltd. Semi-Annual Report 2025
Section VIII - Financial Report
I. Audit report
Was the half-year report audited
□ Yes √ No
The half-year report was not audited.II. Financial Statements
Notes to the financial statements are presented in RMB’000.
83ADAMA Ltd. Semmi-Annual Report 2025
(Expressed in RMB '000)
Consolidated Balance Sheet
June 30 December 31
Notes 2025 2024
Current assets
Cash at bank and on hand V.1 3497229 3630608
Financial assets held for trading V.2 2047 1035
Derivative financial assets V.3 863406 483822
Bills receivable V.4 94322 65565
Accounts receivable V.5 8100271 7977830
Receivables financing V.6 107640 144763
Prepayments V.7 374149 313542
Other receivables V.8 806357 1147469
Inventories V.9 11612921 11164663
Other current assets V.10 1136322 988093
Total current assets 26594664 25917390
Non-current assets
Long-term receivables V.11 342775 159813
Long-term equity investments V.12 35956 30227
Other equity investments V.13 131169 131473
Investment properties 19689 20509
Fixed assets V.14 9588625 9762895
Construction in progress V.15 1933407 1996892
Right-of-use assets V.16 527579 557159
Intangible assets V.17 4581403 4796655
Goodwill V.18 5053780 5074283
Deferred tax assets V.19 1518114 1291654
Other non-current assets V.20 376089 320827
Total non-current assets 24108586 24142387
Total assets 50703250 50059777
84ADAMA Ltd. Semmi-Annual Report 2025
(Expressed in RMB '000)
Consolidated Balance Sheet (continued)
June 30 December 31
Notes 2025 2024
Current liabilities
Short-term loans V.21 6588393 4748720
Derivative financial liabilities V.22 465167 278580
Bills payable V.23 505034 439495
Accounts payable V.24 5440839 4934865
Contract liabilities V.25 1491105 1810764
Employee benefits payable V.26 795019 851784
Taxes payable V.27 534999 516761
Other payables V.28 1733135 1417319
Non-current liabilities due within one year V.29 1909993 2230713
Other current liabilities V.30 1112128 784456
Total current liabilities 20575812 18013457
Non-current liabilities
Long-term loans V.31 1746425 2166625
Debentures payable V.32 5146703 6320157
Lease liabilities V.33 599408 610415
Long-term payables 186159 191103
Long-term employee benefits payable V.34 541598 543855
Provisions V.35 395857 316490
Deferred tax liabilities V.19 251495 283081
Other non-current liabilities V.36 2354749 2623500
Total non-current liabilities 11222394 13055226
Total liabilities 31798206 31068683
Shareholders' equity
Share capital V.37 2329812 2329812
Capital reserve V.38 12950464 12950464
Less: Treasury shares - -
Other comprehensive income V.39 1792144 1721028
Special reserves 8154 10798
Surplus reserve V.40 298610 298610
Retained earnings V.41 1525860 1680382
Total equity attributed to the shareholders 18905044 18991094
of the company
Non-controlling interests - -
Total Equity 18905044 18991094
Total liabilities and equity 50703250 50059777
Gael Hili Efrat Nagar
Legal representative Chief Financial Officer
These financial statements were approved by the Board of Directors of the Company on August 25 2025.The notes form part of these financial statements.
85ADAMA Ltd. Semmi-Annual Report 2025
(Expressed in RMB '000)
Company's Balance Sheet
June 30 December 31
Notes 2025 2024
Current assets
Cash at bank and on hand XV.1 79746 41031
Accounts receivable XV.2 1455213 1182104
Receivables financing XV.3 8003 34350
Prepayments 8580 50485
Other receivables XV.4 29374 24393
Inventories 205752 252747
Non-current assets due within one year 70000 70000
Other current assets 7787 5739
Total current assets 1864455 1660849
Non-current assets
Long-term equity investments XV.5 17430716 17430716
Other equity investments 54299 54299
Investment properties 1797 2071
Fixed assets 1299493 1361190
Construction in progress 55390 88292
Right-of-use assets 936 1297
Intangible assets 232136 237120
Deferred tax assets 30191 51640
Other non-current assets 269722 265572
Total non-current assets 19374680 19492197
Total assets 21239135 21153046
Current liabilities
Short-term loans 150000 100000
Bills payables 142464 98584
Accounts payables 129514 148262
Contract liabilities 15873 10854
Employee benefits payable 5381 9709
Taxes payable 2777 2748
Other payables 824720 716369
Non-current liabilities due within one year 301977 641392
Total current liabilities 1572706 1727918
Non-current liabilities
Long-term loans 424743 308357
Lease liabilities 213 592
Long-term employee benefits payable 65255 67154
Provisions 25193 25507
Other non-current liabilities 55860 55860
Total non-current liabilities 571264 457470
Total liabilities 2143970 2185388
Shareholders’ equity
Share capital V.37 2329812 2329812
Capital reserve 15523881 15523881
Other comprehensive (loss) income 23894 23894
Special reserves 8845 11489
Surplus reserve V.40 298610 298610
Retained earnings 910123 779972
Total shareholders’ equity 19095165 18967658
Total liabilities and shareholders’ equity 21239135 21153046
86ADAMA Ltd. Semmi-Annual Report 2025
(Expressed in RMB '000)
Consolidated Income Statement
Six months ended June 30
Notes 2025 2024
I. Operating income V.42 15024200 14910289
Less: Cost of sales V.42 11030173 11474074
Taxes and surcharges V.43 57128 48358
Selling and Distribution expenses V.44 1975668 2363376
General and administrative expenses V.45 734867 536266
Research and 216793 218107
Development expenses V.46
Financial expenses V.47 1024340 623647
Including: Interest expense 527096 532560
Interest income 101281 130667
Add: Investment income net V.48 5261 4418
Including: Income from investment
in associates and joint ventures 5261 4418
Loss from changes in fair value V.49 (6493) (196492)
Credit impairment losses V.50 (93679) (15676)
Asset impairment losses V.51 (27617) (59134)
Gain from disposal of assets V.52 5054 18217
II. Operating loss (132243) (602206)
Add: Non-operating income 19219 43241
Less: Non-operating expenses 12555 12465
III. III. Total loss (125579) (571430)
Less: Income tax expenses (income) V.53 (45227) 323436
IV. Net loss (80352) (894866)
(1). Classified by nature of operations
(1.1). Continuing operations (80352) (894866)
(2). Classified by ownership
(2.1). Shareholders of the Company (80352) (894866)
(2.2). Non-controlling interests - -
V. Other comprehensive income (loss)net of tax V. 39 71116 (3734)
Other comprehensive income (loss) (net of tax)
attributable to shareholders of the Company 71116 (3734)
(1) Items that will not be reclassified to profit or loss: 979 8522
(1.1) Re-measurement of defined benefit plan liability 979 8522
(1.2) Fair Value changes in other equity investment - -
(2) Items that were or will be reclassified to profit or loss 70137 (12256)
(2.1) Effective portion of gains or loss of cash flow hedge (48355) 6283
(2.2) Translation differences of foreign financial statements 118492 (18539)
VI. Total comprehensive loss for the period attributable to (9236) (898600)
Shareholders of the Company
Total comprehensive loss for the period (9236) (898600)
attributable to shareholders of the Company
Total comprehensive income for the period - -
attributable to Non-controlling interests
VII. Earnings per share XIV.2
(1) Basic loss per share (Yuan/share) (0.03) (0.38)
(2) Diluted earnings per share (Yuan/share) N/A N/A
87ADAMA Ltd. Semmi-Annual Report 2025
(Expressed in RMB '000)
Company's Income Statement
Six months ended June 30
Notes 2025 2024
I. Operating income XV.6 1094572 981592
Less: Operating costs XV.6 879975 831781
Taxes and surcharges 7663 5450
Selling and Distribution expenses 2185 3695
General and administrative expenses 105840 62755
Research and Development expenses 664 2497
Financial expenses 13170 3942
Including: Interest expense 14052 19087
Interest income 1019 3892
Add: Investment income net 32445 -
Gain from changes in fair value (“-” means loss) 30714 (30870)
Credit impairment reversal (losses) (1084) (2)
Asset Impairment reversal (losses) (3362) (3565)
Gain from disposal of assets 3607 -
II. Operating Profit 147395 37035
Add: Non-operating income 4225 1606
Less: Non-operating expenses 20 39
III. Total profit 151600 38602
Less: Income tax expense (income) 21449 51414
IV. Net profit (loss) 130151 (12812)
V. Other comprehensive income net of tax - -
(1) Items that will not be reclassified to profit or loss - -
(1.1) Re-measurement of defined benefit plan liability - -
(1.2) FV changes in other equity investment - -
VI. Total comprehensive income (loss) for the period 130151 (12812)
88ADAMA Ltd. Semmi-Annual Report 2025
(Expressed in RMB '000)
Consolidated Cash Flow Statement
Six months ended June 30
Notes 2025 2024
I. Cash flows from operating activities:
Cash received from sale of goods and rendering of services 14968968 13538583
Refund of taxes and surcharges 90510 104215
Cash received relating to other operating activities V.56(1) 75142 292828
Sub-total of cash inflows from operating activities 15134620 13935626
Cash paid for goods and services 9451146 8394452
Cash paid to and on behalf of employees 1999080 2093554
Payments of taxes and surcharges 289600 324788
Cash paid relating to other operating activities V.56(2) 1656216 1391714
Sub-total of cash outflows from operating activities 13396042 12204508
Net cash flows provided by operating activities V.57(1)a 1738578 1731118
II. Cash flows from investing activities:
Cash received from disposal of investments 41370 63100
Net cash received from disposal of fixed assets intangible
assets and other long-term assets 17493 30379
Sub-total of cash inflows from investing activities 58863 93479
Cash paid to acquire fixed assets intangible assets and
other long-term assets 589861 800485
Net cash paid to acquire subsidiaries or other business units 56272 -
Cash paid relating to other investing activities V.56(3) 47825 107950
Sub-total of cash outflows from investing activities 693958 908435
Net cash flows used in investing activities (635095) (814956)
III. Cash flows from financing activities:
Cash received from borrowings 1625222 1014194
Cash received from other financing activities V.56(4) 1082504 781651
Sub-total of cash inflows from financing activities 2707726 1795845
Cash repayments of borrowings 3107377 2792435
Cash payment for dividends profit distributions and interest 527153 586795
Including: Dividends paid to non-controlling interest 74170 34892
Cash paid relating to other financing activities V.56(5) 440257 261285
Sub-total of cash outflows from financing activities 4074787 3640515
Net cash flow used in financing activities (1367061) (1844670)
IV. Effects of foreign exchange rate changes on cash and cash
equivalent
equivalent (4700) 42030
V. Net decrease in cash and cash equivalents V.57(1)b (268278) (886478)
Add: Cash and cash equivalents at the beginning of the year 3583963 4857358
I. VI. Cash and cash equivalents at the end of the period V.57(2) 3315685 3970880
89ADAMA Ltd. Semmi-Annual Report 2025
(Expressed in RMB '000)
Company's Cash Flow Statement
Six months ended June 30
Notes 2025 2024
I. Cash flows from operating activities:
Cash received from sale of goods and rendering of services 650459 879847
Refund of taxes and surcharges 32238 41484
Cash received relating to other operating activities XV.7(1) 15324 12564
Sub-total of cash inflows from operating activities 698021 933895
Cash paid for goods and services 413963 530851
Cash paid to and on behalf of employees 64712 69738
Payments of taxes and surcharges 9317 9090
Cash paid relating to other operating activities XV.7(2) 23927 20299
Sub-total of cash outflows from operating activities 511919 629978
Net cash flows provided by operating activities XV.8 186102 303917
II. Cash flows from investing activities:
Cash received from returns of investments 32445 -
Net cash received from disposal of fixed assets intangible assets and other
long-term assets 11210 -
Cash received relating to other investing activities XV.7.(3) 803 127600
Sub-total of cash inflows from investing activities 44458 127600
Cash paid to acquire fixed assets intangible assets and
other long-term assets 9369 17913
Sub-total of cash outflows from investing activities 9369 17913
Net cash flows provided by (used in) investing activities 35089 109687
III. Cash flows from financing activities:
Cash received from borrowings 300000 50000
Cash received relating to other financing activities XV.7.(4) 1858 6460
Sub-total of cash inflows from financing activities 301858 56460
Cash repayments of borrowings 473046 544732
Cash payment for dividends profit distributions or interest 14395 19179
Cash paid relating to other financing activities XV.7.(5) 14246 3884
Sub-total of cash outflows from financing activities 501687 567795
Net cash flow used in financing activities (199829) (511335)
IV. Effects of foreign exchange rate changes on cash and cash equivalents 4965 9630
V. Net decrease in cash and cash equivalents 26327 (88101)
Add: Cash and cash equivalents at the beginning of the year XV.8(2) 39173 157186
VI. Cash and cash equivalents at the end of the period XV.8(2) 65500 69085
90ADAMA Ltd. Semmi-Annual Report 2025
(Expressed in RMB '000)
Consolidated Statement of Changes in Shareholders’ Equity
For the Six months ended June 30 2025
Other
Share Capital comprehensive Special Surplus Retained Non-controlling
capital reserve income reserves reserve earnings Total interests Total equity
I. Balance at December 31 2024 2329812 12950464 1721028 10798 298610 1680382 18991094 - 18991094
II. Changes in equity for the period - - 71116 (2644) - (154522) (86050) - (86050)
1. Total comprehensive loss - - 71116 - - (80352) (9236) - (9236)
2. Appropriation of profits - - - - - (74170) (74170) - (74170)
2.1 Distribution to non-controlling - - - - - (74170) (74170) - (74170)
interest
3. Special reserve - - - (2644) - - (2644) - (2644)
3.1 Transfer to special reserve - - - 4514 - - 4514 - 4514
3.2 Amount utilized - - - (7158) - - (7158) - (7158)
III. Balance at June 30 2025 2329812 12950464 1792144 8154 298610 1525860 18905044 - 18905044
91ADAMA Ltd. Semmi-Annual Report 2025
(Expressed in RMB '000)
Statement of Changes in Shareholders’ Equity
For the Six months ended June 30 2024
Other
Share Capital comprehensive Special Surplus Retained Non-controlling
capital reserve income reserves reserve earnings Total interests Total equity
I. Balance at December 31 2023 2329812 12950464 1675896 16595 273617 4678091 21924475 - 21924475
II. Changes in equity for the period - - (3734) (8497) - (929758) (941989) - (941989)
1. Total comprehensive loss - - (3734) - - (894866) (898600) - (898600)
2. Appropriation of profits - - - - - (34892) (34892) - (34892)
2.1 Distribution to non-controlling - - - - - (34892) (34892) - (34892)
interest
3. Special reserve - - - (8497) - - (8497) - (8497)
3.1 Transfer to special reserve - - - 4721 - - 4721 - 4721
3.2 Amount utilized - - - (13218) - - (13218) - (13218)
III. Balance at June 30 2024 2329812 12950464 1672162 8098 273617 3748333 20982486 - 20982486
92ADAMA Ltd. Semmi-Annual Report 2025
(Expressed in RMB '000)
Company's Statement of Changes in Shareholders’ Equity
For the Six months ended June 30 2025
Other
Share Capital comprehensive Special Surplus Retained
capital reserve income reserves reserve earnings Total
I. Balance at December 31 2024 2329812 15523881 23894 11489 298610 779972 18967658
II. Changes in equity for the period - - - (2644) - 130151 127507
1. Total comprehensive income - - - - - 130151 130151
2. Special reserve - - - (2644) - - (2644)
2.1 Transfer to special reserve - - - 4514 - - 4514
2.2 Amount utilized - - - (7158) - - (7158)
Ⅲ. Balance at June 30 2025 2329812 15523881 23894 8845 298610 910123 19095165
For the Six months ended June 30 2024
Other
Share Capital comprehensive Special Surplus Retained
capital reserve income reserves reserve earnings Total
I. Balance at December 31 2023 2329812 15523881 (1002) 17286 273617 555037 18698631
II. Changes in equity for the period - - - (8497) - (12812) (21309)
1. Total comprehensive income - - - - - (12812) (12812)
2. Special reserve - - - (8497) - - (8497)
2.1 Transfer to special reserve - - - 4721 - - 4721
2.2 Amount utilized - - - (13218) - - (13218)
Ⅲ. Balance at June 30 2024 2329812 15523881 (1002) 8789 273617 542225 18677322
93ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
I BASIC CORPORATE INFORMATION
ADAMA Ltd. (hereinafter the “Company” or the “Group”) is a company limited by shares established in
China with its head office located in Hubei Jingzhou.In June 2020 the controlling shareholder of the Company changed from China National Agrochemical Co.Ltd. (hereinafter – “CNAC") to Syngenta Group Co. Ltd. (hereinafter “Syngenta Group”). As of August
2021 following the combination between China National Chemical Co. Ltd. (hereinafter - “ChemChina”)
and Sinochem Holdings Corporation Ltd. (hereinafter - “Sinochem Holdings”) Syngenta Group and
subsequently the Company are ultimately controlled by Sinochem Holdings - parent of both ChemChina
and Sinochem Group Co. Ltd. (hereinafter “Sinochem Holdings”) subordinated to SASAC.The principal activities of the Company and its subsidiaries (together referred to as the “Group”) are engaged
in development manufacturing and marketing of agrochemicals intermediate materials for other industries
food additives and synthetic aromatic products mainly for export. For information about the largest
subsidiaries of the Company refer to Note VII.The Company’s consolidated financial statements had been approved by the Board of Directors of the
Company on August 25 2025.Details of the scope of consolidated financial statements are set out in Note VII "Interest in other entities"
whereas the changes of the scope of consolidation are set out in Note VI "Changes in consolidation scope".II BASIS OF PREPARATION
1. Basis of preparation
The Group has adopted the Accounting Standards for Business Enterprises issued by the Ministry of Finance
(the "MoF"). In addition the Group has disclosed relevant financial information in these financial statements
in accordance with Information Disclosure and Presentation Rules for Companies Offering Securities to the
Public No. 15－General Provisions on Financial Reporting (revised by China Securities RegulatoryCommission (hereinafter "CSRC”) in 2023).
2. Accrual basis and measurement principle
The Group has adopted the accrual basis of accounting. Except for certain financial instruments which are
measured at fair value deferred tax assets and liabilities assets and liabilities relating to employee benefits
provisions and investments in associated companies and joint ventures the Group adopts the historical cost
as the principle of measurement in the financial statements. Where assets are impaired provisions for asset
impairment are made in accordance with relevant requirements.In the historical cost measurement assets obtained shall be measured at the amount of cash or cash
equivalents or fair value of the consideration paid. Liabilities shall be measured at the actual amount of cash
or assets received or the contractual amount in a present obligation or the prospective amount of cash or
cash equivalents paid to discharge the liabilities.Fair value is the amount for which an asset could be exchanged or a liability settled between knowledgeable
willing market participants in an arm’s length transaction at the measurement date. Fair value measured and
disclosed in the financial statements are determined on this basis whether it is observable or estimated by
valuation techniques.
94ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
II BASIS OF PREPARATION - (cont’d)
2. Accrual basis and measurement principle - (cont’d)
The following table provides an analysis grouped into Levels 1 to 3 based on the degree to which the fair
value input is observable and significant to the fair value measurement as a whole:
Level 1 - based on quoted prices (unadjusted) in active markets;
Level 2 - based on valuation techniques for which the lowest level input that is significant to the fair value
measurement is observable (other than quoted prices included within Level 1) either directly or
indirectly;
Level 3 - based on valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.
3. Going concern
The financial statements have been prepared on the going concern basis.The Group has performed going concern assessment for the following 12 months from June 302025 and
have not identified any significant doubtful matter or event on the going concern as such the financial
statement have been prepared on the going concern basis.III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES
1. Statement of compliance
These financial statements are in compliance with the Accounting Standards for Business Enterprises to truly
and completely reflect the Company's consolidated financial position as at December 31 2024 and the
Company's consolidated operating results changes in shareholders' equity and cash flows for the twelve
months then ended.
2. Accounting period
The Group has adopted the calendar year as its accounting year i.e. from 1 January to 31 December.
3. Business cycle
The company takes the period from the acquisition of assets for processing to their realisation in cash or cash
equivalents as a normal operating cycle. The operating cycle for the company is 12 months.
4. Reporting currency
The Company and its domestic subsidiaries choose Renminbi (hereinafter "RMB") as their functional
currency. Functional currencies of overseas subsidiaries are determined on the basis of the principal
economic environment in which the overseas subsidiaries operate. The functional currency of the overseas
subsidiaries is mainly the United States Dollar (hereinafter "USD"). The presentation currency of these
financial statements is Renminbi.
95ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
5. Criteria of determining material item in the report and its benchmark
Item Benchmark for Material Item
Individual construction in progress project with a budget higher than RMB
Material construction in progress projects
100 million
6. Business combinations
6.1 Business combinations not involving enterprises under common control and goodwill
A business combination not involving enterprises under common control is a business combination in which
all of the combining enterprises are not ultimately controlled by the same party or parties before and after
the combination.The costs of business combination are the fair value of the assets paid liabilities incurred or assumed and
equity instruments issued by the acquirer for the purpose of achieving the control rights over the acquiree.The intermediary costs such as audit legal services and assessment consulting costs and other related
management costs that are directly attributable to the combination by the acquirer are charged to profit or
loss in the period in which they are incurred. Direct capital issuance costs incurred in respect of equity
instruments or liabilities issued pursuant to the business combination should be charged to the respect equity
instruments or liabilities upon initial recognition of the underlying equity instruments or liabilities.The acquiree’s identifiable assets liabilities and contingent liabilities acquired by the acquirer in a business
combination that meet the recognition criteria shall be measured at fair value at the acquisition date.The consideration transferred includes the fair value of any contingent consideration. (such as earnout
arrangements with the former shareholders). After the acquisition date the Group recognizes changes in the
fair value of contingent consideration classified as a financial liability at fair value through profit or loss.Where the cost of combination exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable
net assets the difference is treated as an asset and recognized as goodwill which is measured at cost on
initial recognition. Where the cost of combination is less than the acquirer’s interest in the fair value of the
acquiree’s identifiable net assets the remaining difference is recognized immediately in profit or loss for the
current year.The goodwill raised because of the business combination should be separately disclosed in the consolidated
financial statement and measured by the initial amount less any accumulative impairment provision.In a business combination achieved in stages the Group remeasure its previously held equity interest in the
acquiree at its acquisition-date fair value and recognise the resulting gain or loss if any in profit or loss.
96ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
7. Basis for preparation of consolidated financial statements
The scope of consolidation in consolidated financial statements is determined on the basis of control. Control
is achieved when the Company has power over the investee; is exposed or has rights to variable returns
from its involvement with the investee; and has the ability to use its power to affect its returns.For a subsidiary disposed of by the Group the operating results and cash flows before the date of disposal
(the date when control is lost) are included in consolidated income statement and consolidated statement of
cash flows.For a subsidiary acquired through a business combination not involving enterprises under common control
the operating results and cash flows from the acquisition date (the date when control is obtained) are included
in consolidated income statement and consolidated statement of cash flows.The significant accounting policies and accounting years adopted by the subsidiaries are determined based
on the uniform accounting policies and accounting years set out by the Company.All significant intra-group balances transactions and unrealized profits are eliminated on consolidation.The portion of subsidiaries' equity that is not attributable to the Company is treated as non-controlling
interests and presented as "non-controlling interests" in the shareholders’ equity in consolidated balance
sheet. The portion of net profits or losses of subsidiaries for the period attributable to non-controlling
interests is presented as "non-controlling interests" in consolidated income statement below the "net profit"
line item. Total comprehensive income attributable to non-controlling shareholders is presented separately
in the consolidated income statement below the total comprehensive income line item.When the amount of loss for the period attributable to the non-controlling shareholders of a subsidiary
exceeds the non-controlling shareholders' portion of the opening balance of owners' equity of the subsidiary
the excess amount is still allocated against non-controlling interests.Acquisition of non-controlling interests or disposal of equity interest in a subsidiary that does not result in
the loss of control over the subsidiary is accounted for as equity transactions. The carrying amounts of the
Company's interests and non-controlling interests are adjusted to reflect the changes in their relative interests
in the subsidiary. The difference between the amount by which the non-controlling interests are adjusted and
the fair value of the consideration paid or received is adjusted to capital reserve under owners' equity. If the
capital reserve is not sufficient to absorb the difference the excess is adjusted against retained earnings.Other comprehensive income attributed to the non-controlling interest is reattributed to the shareholders of
the company.A put option issued by the Group to holders of non-controlling interests that is settled in cash or other
financial instrument is recognized as a liability at the present value of the exercise price (according to the
"anticipated acquisition method"). The Group’s share of a subsidiary’s profits includes the share of the
holders of the non-controlling interests to which the Group issued a put option.
97ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
6. Basis for preparation of consolidated financial statements - (cont’d)
In cases which the Group has a Call option in addition to the Put option above due to the anticipated
acquisition method implementation no value is given to the Call option in the consolidated financial
statements.When the Group loses control over a subsidiary due to disposal of certain equity interest or other reasons
any retained interest is re-measured at its fair value at the date when control is lost. The difference between
(i) the aggregate of the consideration received on disposal and the fair value of any retained interest and (ii)
the share of the former subsidiary's net assets cumulatively calculated from the acquisition date according to
the original proportion of ownership interest is recognized as investment income in the period in which
control is lost. Other comprehensive income associated with the disposed subsidiary is reclassified to
investment income in the period in which control is lost.
7. Classification and accounting methods of joint arrangement
There are two types of joint arrangements – joint operations and joint ventures. The type of joint
arrangements is determined based on the rights and obligations of joint operator to the joint arrangements
by considering the factors such as the structure the legal form of the arrangements and the contractual
terms etc. A joint operation is a joint arrangement whereby the joint operators have rights to the assets and
obligations for the liabilities relating to the arrangement. A joint venture is a joint arrangement whereby the
joint ventures have rights to the net assets of the arrangement.
8. Cash and cash equivalents
Cash comprises cash on hand and deposits that can be readily withdrawn on demand. Cash equivalents are
the Group's short-term highly liquid investments that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value.
9. Translation of transactions and financial statements denominated in foreign currencies
10.1 Transactions denominated in foreign currencies
On initial recognition foreign currency transactions are translated into functional currency using the spot
exchange rate prevailing at the date of transaction.At the balance sheet date foreign currency monetary items are translated into functional currency using the
spot exchange rates at the balance sheet date. Exchange differences arising from the differences between the
spot exchange rates prevailing at the balance sheet date and those on initial recognition or at the previous
balance sheet date are recognized in profit or loss for the period except that (i) exchange differences related
to a specific-purpose borrowing denominated in foreign currency that qualify for capitalization are
capitalized as part of the cost of the qualifying asset during the capitalization period. (ii) exchange differences
related to hedging instruments for the purpose of hedging against foreign currency risks are accounted for
using hedge accounting.
98ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
10. Translation of transactions and financial statements denominated in foreign currencies - (cont’d)
10.1 Transactions denominated in foreign currencies - (cont’d)
When preparing financial statements involving foreign operations if there is any foreign currency monetary
items which in substance forms part of the net investment in the foreign operations exchange differences
arising from the changes of foreign currency are recorded as other comprehensive income and will be
reclassified to profit or loss upon disposal of the foreign operations.Foreign currency non-monetary items measured at historical cost are translated to the amounts in functional
currency at the spot exchange rates on the dates of the transactions and the amounts in functional currency
remain unchanged.
10.2 Translation of financial statements denominated in foreign currency
For the purpose of preparing consolidated financial statements financial statements of a foreign operation
are translated from the foreign currency into RMB using the following method: assets and liabilities on the
balance sheet are translated at spot exchange rate prevailing at the balance sheet date; shareholders' equity
items except for retained earnings are translated at the spot exchange rates at the dates on which such items
arose; all items in the income statement as well as items reflecting the distribution of profits are translated at
average rate or at spot exchange rates on the dates of the transactions; the retained earnings opening balance
is previous year's translated retained earnings closing balance; the closing balance of retained earnings is
calculated and presented on the basis of each translated income statement and profit distribution item. The
difference between the translated assets and the aggregate of liabilities and shareholders' equity items is
recorded as other comprehensive income. Cash Flows arising from transaction in foreign currency and the
cash flows of a foreign subsidiary are translated at the spot exchange rate on the date of the cash flow the
effect of exchange rate changes on the cash and cash equivalents is regarded as a reconciling item and presentseparately in the statement “effect of foreign exchange rate changes on the cash and cash equivalents".The opening balances and the comparative figures of prior year are presented at the translated amounts in
the prior year's financial statements.On disposal of the Group's entire equity interest in a foreign operation or upon a loss of control over a
foreign operation due to disposal of certain equity interest in it or other reasons the Group transfers the
accumulated translation differences which are attributable to the owners' equity of the Company and
presented under other comprehensive income to profit or loss in the period in which the disposal occurs.In case of a disposal or other reason that does not result in the Group losing control over a foreign operation
the proportionate share of accumulated translation differences are re-attributed to non-controlling interests
and are not recognized in profit and loss. For partial disposals of equity interest in foreign operations which
are associates or joint ventures the proportionate share of the accumulated translation differences are
reclassified to profit or loss.
99ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
10. Financial instruments
The Group recognizes a financial asset or a financial liability when it becomes a party to the contractual
provisions of the instrument. At initial recognition the Group measures a financial asset or financial liability
at its fair value plus or minus (which is not measured at fair value through profit or loss) transaction costs
that are directly attributable to the acquisition or issue of the financial asset or financial liability. Initial
recognition in trade receivables which do not contain a significant financing component shall be made
according to their transaction price.
11.1 Classification and measurement of financial assets
After initial recognition an entity shall measure a financial asset at: (a) amortised cost; (b) fair value through
other comprehensive income (“FVTOCI”); or (c) fair value through profit or loss (“FVTPL”).
11.1.1 Financial assets at amortised cost
A financial asset is measured at amortised cost if both of the following conditions are met: (a) the financial
asset is held within a business model whose objective is to hold financial assets in order to collect contractual
cash flows; and (b) the contractual terms of the financial asset give rise on specified dates to cash flows that
are solely payments of principal and interest on the principal amount outstanding.Such financial assets are subsequently measured at amortised cost using effective interest method. Gains or
losses upon impairment and derecognition are recognized in profit or loss.
11.1.1.1 Effective interest method and amortised cost
Effective interest rate represents the rate that discounts the future cash flow over the expected subsisting
period or shorter period if appropriate of the financial asset or financial liability to the current carrying
value of such financial asset or financial liability.When calculating the effective interest rate the Group will consider the anticipated future cash flow (not
considering the future credit loss) on the basis of all contract clauses of financial assets or financial liabilities
as well as consider all kinds of charges which are an integral part of the effective interest rate including
transaction fees and discount or premium paid or received between both parties of financial asset or financial
liability contract.
100ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
11. Financial instruments - (cont’d)
11.1 Classification and measurement of financial assets - (cont’d)
11.1.2 Financial assets at FVTOCI
A financial asset is measured at fair value through other comprehensive income if both of the following
conditions are met: (a) the financial asset is held within a business model whose objective is achieved by
both collecting contractual cash flows and selling financial assets and (b) the contractual terms of the
financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on
the principal amount outstanding.A gain or loss on a financial asset measured at fair value through other comprehensive income is recognized
in other comprehensive income except for impairment gains or losses foreign exchange gains and losses
and interest calculated using the effective interest method until the financial asset is derecognized or
reclassified. When the financial asset is derecognized the cumulative gain or loss previously recognized in
other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment.
11.1.3 Financial assets at FVTPL
Financial assets at FVTPL are either those that are classified as financial assets at FVTPL or designated as
financial assets at FVTPL.A financial asset is measured at FVTPL unless it is measured at amortised cost or at FVTOCI.The Group may at initial recognition irrevocably designate a financial asset as measured at FVTPL if doing
so eliminates or significantly reduces a measurement or recognition inconsistency (sometimes referred to as
an ‘accounting mismatch’) that would otherwise arise from measuring assets or liabilities or recognizing the
gains and losses on them on different bases.A gain or loss on a financial asset that is measured at FVTPL is recognized in profit or loss unless it is part
of a hedging relationship. Dividends are recognized in profit or loss.
11.1.4 Designated financial assets at FVTOCI
At initial recognition the Group makes an irrevocable election to designate to FVTOCI an investment in an
equity instrument that is not held for trading.When a non-trading equity instrument investment is designated as a financial asset that is measured at fair
value through other comprehensive income the changes in the fair value of the financial asset are recognised
in other comprehensive income. Upon realization the accumulated gains or losses from other comprehensive
income are transferred from other comprehensive income and included in retained earnings. During the
period in which the Group holds these non-trading investment instruments the right to receive dividends in
the Group has been established and the economic benefits related to dividends are likely to flow into the
Group and when the amount of dividends can be reliably measured the dividend income is recognized in
the current profit and loss.
101ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
11. Financial instruments - (cont’d)
11.2 Impairment of financial assets
The Group recognizes a loss allowance for expected credit losses on financial assets that are classified to
amortised cost and FVTOCI.The Group always measures the loss allowance at an amount equal to lifetime expected credit losses for
trade receivables and notes receivables.For financial assets other than trade receivables the Group initially measure the loss allowance for that
financial instrument at an amount equal to 12-month expected credit losses. At each balance sheet date if
the credit risk on that financial instrument has increased significantly since initial recognition the Group
measures the loss allowance for a financial instrument at an amount equal to the lifetime expected credit
losses. The Group recognizes in profit or loss as an impairment gain or loss the amount of expected credit
losses (or reversal) that is required to adjust the loss allowance to the amount that is required to be recognized.
11.2.1 Significant increases in credit risk
At each balance sheet date the Group assesses whether the credit risk on a financial instrument has
increased significantly since initial recognition.The Group mainly considers the following list of information in assessing changes in credit risk:
(a) significant changes in internal price indicators of credit risk as a result of a change in credit risk since
inception.(b) significant changes in external market indicators of credit risk for a particular financial instrument
or similar financial instruments with the same expected life.(c) a significant change in the debtors’ ability to meet its debt obligations.(d) an actual or expected significant change in the operating results of the debtor.(e) significant increases in credit risk on other financial instruments of the same debtor.(f) an actual or expected significant adverse change in the regulatory economic or technological
environment of the debtor.(g) significant changes in the value of the collateral supporting the obligation or in the quality of third-
party guarantees or credit enhancements which are expected to reduce the debtor’s economic
incentive to make scheduled contractual payments or to otherwise have an effect on the probability
of a default occurring.(h) significant changes that are expected to reduce the receivable’s economic incentive to make
scheduled contractual payments.(i) significant changes in the expected performance and behaviour of the debtor.The Group assumes that the credit risk on a financial instrument has not increased significantly since initial
recognition if the financial instrument is determined to have low credit risk at the reporting date.
102ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
11. Financial instruments - (cont’d)
11.2 Impairment of financial assets - (cont’d)
11.2.2 Credit-impaired financial asset
A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated
future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired
include observable data about the following events:
(a) significant financial difficulty of the issuer or the receivable;
(b) a breach of contract such as a default or past due event;
(c) the lender(s) of the receivable for economic or contractual reasons relating to the receivable’s
financial difficulty having granted to the receivable a concession(s) that the lender(s) would not
otherwise consider;
(d) it is becoming probable that the receivable will enter bankruptcy or other financial reorganization;
11.2.3 Recognition of expected credit losses
Expected credit losses of financial instruments are determined as the present value of the difference
between: (a) the contractual cash flows that are due to an entity under the contract; and (b) the cash flows
that the entity expects to receive.For a financial asset that is credit-impaired at the reporting date an entity shall measure the expected credit
losses as the difference between the asset’s gross carrying amount and the present value of estimated future
cash flows discounted at the financial asset’s original effective interest rate. Any adjustment is recognized
in profit or loss as an impairment gain or loss.The Group measures expected credit losses of a financial instrument in a way that reflects:
(a) an unbiased and probability-weighted amount that is determined by evaluating a range of possible
outcomes;
(b) the time value of money; and
(c) reasonable and supportable information that is available without undue cost or effort at the reporting
date about past events current conditions and forecasts of future economic conditions.
103ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
11. Financial instruments - (cont’d)
11.2 Impairment of financial assets - (cont’d)
11.2.4 Written-off of financial assets
The Group directly reduces the gross carrying amount of a financial asset when the entity has no reasonable
expectations of recovering a financial asset in its entirety or a portion thereof. A write-off constitutes a
derecognition event.
11.3 Transfer of financial asset
The Group derecognizes a financial asset if one of the following conditions is satisfied: (i) the contractual
rights to the cash flows from the financial asset expire; or (ii) the financial asset has been transferred and
substantially all the risks and rewards of ownership of the financial asset transferred to the transferee; or (iii)
although the financial asset has been transferred the Group neither transfers nor retains substantially all the
risks and rewards of ownership of the financial asset but has not retained control of the financial asset.If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a financial
asset and it retains control of the financial asset it recognizes the financial asset to the extent of its continuing
involvement in the transferred financial asset and recognizes an associated liability. The extent of the
Group’s continuing involvement in the transferred asset is the extent to which it is exposed to changes in the
value of the transferred asset.When the company is derecognizing a financial asset in its entirety the difference between (i) the carrying
amount of the financial asset transferred; and (ii) the sum of the consideration received from the transfer is
recognized in profit or loss.
11.4 Classification and measurement of financial liabilities
Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the
substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.All financial liabilities are subsequently measured at FVTPL or other financial liabilities.Financial liabilities are classified as at FVTPL when the financial liability is (i) held for trading or (ii) it is
designated as at FVTPL. The financial liability other than derivative financial liabilities are stated as
liabilities held for trading.Other financial liabilities are subsequently measured at amortized cost by using effective interest method.Gain or loss arising from derecognition or amortization is recognized in current profit or loss.
104ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
11. Financial instruments - (cont’d)
11.5 Derecognition of financial liabilities
Financial liabilities are derecognized in full or in part only when the present obligation is discharged in full
or in part. An agreement entered into force between the Group (debtor) and a creditor to replace the original
financial liabilities with new financial liabilities with substantially different terms derecognize the original
financial liabilities as well as recognize the new financial liabilities. When financial liabilities is
derecognized in full or in part the difference between the carrying amount of the financial liabilities
derecognized and the consideration paid (including transferred non-cash assets or new financial liability) is
recognized in profit or loss for the current period.
11.6 Derivatives
Derivative financial instruments include forward exchange contracts currency swaps and foreign exchange
options etc. Derivatives are initially measured at fair value at the date when the derivative contracts are
entered into and are subsequently re-measured at fair value. The resulting gain or loss is recognized in profit
or loss unless the derivative is designated and highly effective as a hedging instrument in which case the
timing of the recognition in profit or loss depends on the nature of the hedge relationship (Note III 32.1).
11.7 Offsetting financial assets and financial liabilities
Financial assets and financial liabilities shall be presented separately in the balance sheet and shall not be
offset except for circumstances where the Group has a legal right that is currently enforceable to offset the
recognized financial assets and financial liabilities and intends either to settle on a net basis or to realize
the financial asset and settle the financial liability simultaneously a financial asset and a financial liability
shall be offset and the net amount is presented in the balance sheet.
11.8 Equity instruments
The consideration received from the issuance of equity instruments net of transaction costs is recognized in
shareholders’ equity. Consideration and transaction costs paid by the Company for repurchasing self-issued
equity instruments are deducted from shareholders’ equity.When the Company repurchases its own shares those shares are treated as treasury shares. All expenditures
relating to the repurchase are recorded in the cost of the treasury shares with the transaction entering into
the share capital. Treasury shares are excluded from profit distributions and are stated as a deduction under
shareholders’ equity in the balance sheet.
105ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
11. Accounts receivables
Accounts receivables are assessed for impairment on a collective group and/or on an individual basis as
follows:
Expected credit losses in respect of accounts receivables is measured at an amount equal to lifetime expected
credit losses. The assessment is made collectively for account receivables where receivables share similar
credit risk characteristics based on geographical location using the expected credit losses model including
inter-alia aging analysis historical loss experiences adjusted by the observable factors reflecting current and
expected future economic conditions. The ratio of the account receivables collective provision for expected
credit losses in which credit losses has not occurred is between 0%-4.36%.When credit risk on accounts receivable has increased significantly since initial recognition the group
records specific provision or collective provision which is determined for groups of similar assets in
countries in which there are large number of customers with immaterial balances.In assessing whether the credit risk on accounts receivables has increased significantly since initial
recognition the Group compares the risk of a default occurring on the accounts receivables at the reporting
date with the risk of a default occurring on the accounts receivables at the date of initial recognition and
considers both quantitative and qualitative information that is reasonable and supportable including
observable data that comes to the attention of the Group about loss events such as a significant decline in the
solvency of an individual debtor or the portfolio of debtors and significant changes in the financial condition
that have an adverse effect on the debtor.
12. Receivables financing
All receivbales financing are bank acceptance notes due within 1 year. From the past experience the
possibility of significant losses due to banks default is low the Group believes that there is no significant
credit risk in the bank acceptances notes held.
13. Other receivables
The Group determines expected credit losses for other receivables on an individual basis.
14. Inventories
15.1 Categories of inventories and initial measurement
The Group's inventories mainly include raw materials work in progress semi-finished goods finished goods
and reusable materials. Reusable materials include low-value consumables packaging materials and other
materials which can be used repeatedly but do not meet the definition of fixed assets.Inventories are initially measured at cost. Cost of inventories comprises all costs of purchase costs of
conversion and other expenditures incurred in bringing the inventories to their present location and condition
including direct labor costs and an appropriate allocation of production overheads.
106ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
15. Inventories - (cont’d)
15.2 Valuation method of inventories upon delivery
The actual cost of inventories upon delivery is calculated using the weighted average method.
15.3 Basis for determining net realizable value of inventories and provision methods for decline in value of
inventories
At the balance sheet date inventories are measured at the lower of cost and net realizable value. If the net
realizable value is below the cost of inventories a provision for decline in value of inventories is made. Net
realizable value is the estimated selling price in the ordinary course of business less the estimated costs of
completion the estimated costs necessary to make the sale and relevant taxes. In determining the realizable
value of inventory it is based on solid evidence obtained while also considering the purpose of holding the
inventory and the impact of events after the balance sheet date.After the provision for decline in value of inventories is made if the circumstances that previously caused
inventories to be written down below cost no longer exist so that the net realizable value of inventories is
higher than their carrying amount the original provision for decline in value is reversed and the reversal is
included in profit or loss for the period.
15.4 The perpetual inventory system is maintained for stock system.
15. Long-term equity investments
Long-term equity investments include investments in subsidiaries joint ventures and associates.
16.1 Basis for determining control joint control and significant influence over investee
Control is achieved when the Company has power over the investee; is exposed or has rights to variable
returns from its involvement with the investee; and has the ability to use its power to affect its returns.Joint control is the contractually agreed sharing of control over an economic activity and exists only when
the strategic financial and operating policy decisions relating to the activity require the unanimous consent
of the parties sharing control.Significant influence is the power to participate in the financial and operating policy decisions of the investee
but is not control or joint control over those policies.When determining whether an investing enterprise is able to exercise control or significant influence over
an investee the effect of potential voting rights of the investee (for example warrants and convertible debts)
held by the investing enterprises or other parties that are currently exercisable or convertible shall be
considered.
107ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
16. Long-term equity investments - (cont’d)
16.2 Determination of investment cost
Subsidiaries are the companies that are controlled by the Company. Associates are the companies over which
the Group has significant influence. Joint ventures are joint arrangements over which the Group has joint
control along with other investors and has rights to the net assets of the joint arrangement.The Company accounts for the investment in subsidiaries at historical cost in the Company's financial
statements. Investments in associates and joint ventures are accounted for under equity method.For a long-term equity investment acquired through a business combination involving enterprises under
common control the investment cost of the long-term equity investment is the share of the carrying amount
of the shareholders' equity of the acquiree attributable to the ultimate controlling party at the date of
combination. The difference between initial investment cost and cash paid non-cash assets transferred and
book value of liabilities assumed is adjusted in capital reserve. If the balance of capital reserve is not
sufficient to absorb the difference any excess is adjusted to retained earnings.For a long-term equity investment acquired through business combination not involving enterprises under
common control the investment cost of the long-term equity investment is the cost of acquisition. For a
business combination not involving enterprises under common control achieved in stages that involves
multiple exchange transactions the initial investment cost is carried at the aggregate of the carrying amount
of the acquirer’s previously held equity interest in the acquiree and the new investment cost incurred on the
acquisition date.Regarding the long-term equity investment acquired otherwise than through a business combination if the
long-term equity investment is acquired by cash the historical cost is determined based on the amount of
cash paid and payable; if the long-term equity investment is acquired through the issuance of equity
instruments the historical cost is determined based on the fair value of the equity instruments issued.
16.3 Subsequent measurement and recognition of profit or loss
If the long-term equity investment is accounted for at cost it should be measured at historical cost less
accumulated impairment losses. Dividend declared by the investee should be accounted for as investment
income.Under the equity method where the long-term equity investment initial investment cost exceeds the Group’s
share of the fair value of the investee’s identifiable net assets at the time of acquisition no adjustment is
made to the initial investment cost. Where the initial investment cost is less than the Group’s share of the
fair value of the investee’s identifiable net assets at the time of acquisition the difference is recognized in
profit or loss for the period and the cost of the long-term equity investment is adjusted accordingly.
108ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
16. Long-term equity investments - (cont’d)
16.3 Subsequent measurement and recognition of profit or loss - (cont’d)
Under the equity method the Group recognizes its share of the net profit or loss and other comprehensive
income of the investee for the period as investment income or loss and other comprehensive income for the
period. The Group recognizes its share of the investee’s net profit or loss based on the fair value of the
investee’s individual separately identifiable assets etc. at the acquisition date after making appropriate
adjustments to be confirmed with the Group's accounting policies and accounting period. The Group
discontinues recognizing its share of net losses of the investee after the carrying amount of the long-term
equity investment together with any long-term interests that in substance form part of its net investment in
the investee is reduced to zero. If the Group has incurred obligations to assume additional losses of the
investee a provision is recognized according to the expected obligation and recorded as investment loss for
the period.
16.4 Methods of impairment assessment and determining the provision for impairment loss
If the recoverable amounts of the investments to subsidiaries joint ventures and associates are less than their
carrying amounts an impairment loss should be recognized to reduce the carrying amounts to the recoverable
amounts (Note III 23).
16.5 The disposal of long-term equity investment
On disposal of a long term equity investment the difference between the proceeds actually received and
receivable and the carrying amount is recognized in profit or loss for the period.
17. Investment properties
Investment property refers to real estate held to earn rentals or for capital appreciation or both including
leased land use rights land use rights held and provided for transferring after appreciation and leased
constructions etc.Investment property is initially measured at cost. Subsequent expenditures related to an investment property
shall be included in cost of investment property only when the economic benefits associated with the asset
will likely flow to the Group and its cost can be measured reliably. All other subsequent expenditures on
investment property shall be included in profit or loss for the current period when incurred.The Group adopts cost method for subsequent measurement of investment property which is depreciated or
amortized using the same policy as that for buildings and land use rights.When an investment property is sold transferred retired or damaged the amount of proceeds on disposal of
the property net of the carrying amount and related taxes and surcharges is recognized in profit or loss for
the current period.
109ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
18. Fixed assets
18.1 Recognition criteria for fixed assets
Fixed assets include land owned by the Group and buildings machinery and equipment motor vehicles
office equipment and others.Fixed assets are tangible assets that are held for use in the production or supply of goods or for administrative
purposes and have useful lives of more than one accounting year. A fixed asset is recognized only when it
is probable that economic benefits associated with the asset will flow to the Group and the cost of the asset
can be reliably measured. Purchased or constructed fixed assets are initially measured at cost when acquired.Subsequent expenditures incurred for the fixed asset are included in the cost of the fixed asset and if it is
probable that economic benefits associated with the asset will flow to the Group and the subsequent
expenditures can be measured reliably. Other subsequent expenditures are recognized in profit or loss in the
period in which they are incurred.
18.2 Depreciation of each category of fixed assets
Fixed asset is depreciated based on the cost of fixed asset recognized less expected net residual value over
its useful life using the straight-line method since the month subsequent to the one in which it is ready for
intended use. Depreciation is calculated based on the carrying amount of the fixed asset after impairment
over the estimated remaining useful life of the asset.The Group reviews the useful life and estimated net residual value of a fixed asset and the depreciation
method applied at least once at each financial year-end and account for any change as a change in an
accounting estimate.The estimated useful life estimated net residual value and annual depreciation rate of each category of fixed
assets are as follows:
Residual Annual
Useful life value depreciation rate
Category Depreciation (years) (%) (%)
Buildings the straight-line method 15-50 0-4 1.9-6.7
Machinery and equipment the straight-line method 3-22 0-4 4.4-33.3
Office and other equipment the straight-line method 3-17 0-4 5.6-33.3
Motor vehicles the straight-line method 5-9 0-2 10.9-20.0
Overseas Land owned by the Group is not depreciated.
110ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
18. Fixed assets - (cont’d)
18.3 Other explanations
If a fixed asset is upon disposal or no future economic benefits are expected to be generated from its use or
disposal the fixed asset is derecognized. When a fixed asset is sold transferred retired or damaged the
amount of any proceeds on disposal of the asset net of the carrying amount and related taxes is recognized
in profit or loss for the period.The difference between recoverable amounts of the fixed assets under the carrying amount is referred to as
impairment loss (Note III 23).
19. Construction in progress
Construction in progress is measured at its actual costs. The actual costs include various construction
installation costs borrowing costs capitalized and other expenditures incurred until such time as the relevant
assets are completed and ready for its intended use. When the asset concerned is ready for its intended use
the cost of the asset is transferred to fixed assets and depreciated starting from the following month.The difference between recoverable amounts of the construction in progress under the carrying amount is
referred to as impairment loss (Note III 23).
20. Borrowing costs
Borrowing costs directly attributable to the acquisition construction or production of qualifying asset are
capitalized when expenditures for such asset and borrowing costs are incurred and activities relating to the
acquisition construction or production of the asset that are necessary to prepare the asset for its intended use
or sale have commenced. Capitalization of borrowing costs ceases when the qualifying asset being acquired
constructed or produced becomes ready for its intended use or sale. Borrowing costs incurred subsequently
should be charged to profit or loss. Capitalization of borrowing costs is suspended during periods in which
the acquisition construction or production of a qualifying asset is suspended abnormally and when the
suspension is for a continuous period of more than 3 months. Capitalization is suspended until the acquisition
construction or production of the asset is resumed.Where funds are borrowed under a specific-purpose borrowing the amount of interest to be capitalized is
the actual interest expenses incurred on that borrowing for the period less any bank interest earned from
depositing the borrowed funds before being used on the asset or any investment income on the temporary
investment of those funds.Where funds are borrowed under general-purpose borrowings the Group determines the amount of interest
to be capitalized on such borrowings by applying a capitalization rate to the weighted average of the excess
of cumulative expenditures on the asset over the amounts of specific-purpose borrowings. The capitalization
rate is the weighted average of the interest rates applicable to the general-purpose borrowings.During the capitalization period exchange differences on foreign currency specific-purpose borrowing are
fully capitalized whereas exchange differences on foreign currency general-purpose borrowing charged to
profit or loss.
111ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
21. Intangible assets
21.1 Valuation methods useful life impairment test
The Group’s intangible assets include product registration assets intangible assets upon purchase of products
marketing rights and rights to use tradenames and trademarks land use rights software and customer
relations. Intangible assets are stated at cost less accumulated amortization and impairment losses.When an intangible asset with a finite useful life is available for use its original cost less any accumulated
impairment losses is amortized over its estimated useful life using the straight-line method. An intangible
asset with an indefinite useful life is not amortized.For an intangible asset with a finite useful life the Group reviews the useful life and amortization method at
the end of the year and makes adjustments when necessary.The respective amortization periods for such intangible assets are as follows:
Item Amortization period (years)
Land use rights 49-50 years
Product registration 8-11 years
Intangible assets on purchase of products 7-20 years
Marketing rights tradename and trademarks 4-10 30 years
Exclusivity agreement 21 years
Software 3-5 years and 12 years for ERP
Customer relations 5-10 13 years
The difference between recoverable amounts of the intangible assets under the carrying amount is referred
to as impairment loss (see Note III 23).
112ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
21. Intangible assets - (cont’d)
21.2 Research and development expenditure
Internal research and development project expenditures were classified into research expenditures and
development expenditures depending on its nature and the greater uncertainty whether the research activities
becoming to intangible assets.Expenditure during the research phase is recognized as an expense in the period in which it is incurred.Expenditure during the development phase that meets all of the following conditions at the same time is
recognized as intangible asset:
- It is technically feasible to complete the intangible asset so that it will be available for use or sale;
- The Group has the intention to complete the intangible asset and use or sell it;
- The Group can demonstrate the ways in which the intangible asset will generate economic benefits;
- The availability of adequate technical financial and other resources to complete the development and the
ability to use or sell the intangible asset;
- The expenditure attributable to the intangible asset during its development phase can be reliably
measured.Expenditures that do not meet all of the above conditions at the same time are recognized in profit or loss
when incurred. If the expenditures cannot be distinguished between the research phase and development
phase the Group recognizes all of them in profit or loss for the period. Expenditures that have previously
been recognized in the profit or loss would not be recognized as an asset in subsequent years. Those
expenditures capitalized during the development stage are recognized as development costs incurred and
will be transferred to intangible asset when the underlying project is ready for an intended use.The research and development expenditure includes salaries and welfare expenses of personnel directly
engaged in research and development activities depreciation expenses of instruments and equipment used
in research and development activities expenses for field trial and professional services materials consumed
and lease and maintenance expenses related to research and development activities.
113ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
22. Goodwill
The initial cost of goodwill represents the excess of cost of acquisition over the acquirer’s interest in the fair
value of the identifiable net assets of the acquiree under a business combination not involving enterprises
under common control.Goodwill is not amortized and is stated in the balance sheet at cost less accumulated impairment losses (see
Note III 23). On disposal of an asset group or a set of asset groups any attributable goodwill is written off
and included in the calculation of the profit or loss on disposal.
23. Impairment of long-term assets
The Company assesses at each balance sheet date whether there is any indication that the fixed assets
construction in progress right of use assets intangible assets with finite useful lives investment properties
measured at historical cost investments in subsidiaries joint ventures and associates may be impaired. If
there is any indication that such assets may be impaired recoverable amounts are estimated for such assets.The recoverable amount of an asset is the higher of its fair value less costs to sell and the present value of
the future cash flow estimated to be derived from the asset. The Group estimates the recoverable amount on
an individual basis. If it is not possible to estimate the recoverable amount of the individual asset the Group
determines the recoverable amount of the asset group to which the asset belongs. Identification of an asset
group is based on whether major cash inflows generated by the asset group are largely independent of the
cash inflows from other assets or asset groups.Goodwill arising from a business combination is tested for impairment at least at each year end irrespective
of whether there is any indication that the asset may be impaired. For the purpose of impairment testing the
carrying amount of goodwill acquired in a business combination is allocated from the acquisition date on a
reasonable basis to each of the related asset groups; if it is impossible to allocate to the related asset groups
it is allocated to each of the related set of asset groups. Each of the related asset groups or set of asset groups
is an asset group or set of asset group that is able to benefit from the synergies of the business combination
and shall not be larger than a reportable segment determined by the Group. If the carrying amount of the
asset group or set of asset groups is higher than its recoverable amount the amount of the impairment loss
first reduced by the carrying amount of the goodwill allocated to the asset group or set of asset groups and
then the carrying amount of other assets (other than the goodwill) within the asset group or set of asset groups
pro rata based on the carrying amount of each asset.Once the impairment loss of such assets is recognized it will not be reversed in any subsequent period.
24. Contract liabilities
Contract liabilities refer to the Group’s obligation to transfer goods or services to a customer for which the
Group has received consideration from the customer.
114ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
25. Employee benefits
25.1 Short-term employee benefits
Employee wages or salaries bonuses social security contributions measured on a non-discounted basis and
the expense is recorded when the related service is provided. A provision for short-term employee benefits
in respect of cash bonuses is recognized in the amount expected to be paid where the Group has a current
legal or constructive obligation to pay the said amount for services provided by the employee in the past and
the amount can be estimated reliably.
25.2 Post-employment benefits
Post-employment benefits are classified into defined contribution plans and defined benefit plans.A defined contribution plan is a post-employment benefit plan under which the Group pays contributions to
a separate entity and has no legal or constructive obligation to pay further amounts. Obligations for
contributions to defined contribution plans are recognized as an expense in profit or loss in the periods during
which related services are rendered by employees.Defined benefit plans of the Group are post-employment benefit plans other than defined contribution plans.In accordance with the projected unit credit method the Group measures the obligations under defined
benefit plans using unbiased and mutually compatible actuarial assumptions to estimate related demographic
variables and financial variables and discount obligations under the defined benefit plans to determine the
present value of the defined benefit liability. The discount rate used is the yield on the reporting date on
highly-rated corporate debentures denominated in the same currency that have maturity dates approximating
the terms of the Group’s obligation.The Group attributes benefit obligations under a defined benefit plan to periods of service provided by
respective employees. Service cost and interest expense on the defined benefit liability are charged to profit
or loss and remeasurements of the defined benefit liability are recognized in other comprehensive income.
25.3 Termination benefits
When the Group terminates the employment with employees or provides compensation under an offer to
encourage employees to accept voluntary redundancy a provision is recognized with a corresponding
expense in profit or loss at the earlier of when the Group can no longer withdraw the offer of the termination
benefit and when it recognises any related restructuring costs.If the benefits are payable more than 12 months after the end of the reporting period they are discounted to
their present value. The discount rate used is the yield on the reporting date on highly-rated corporate
debentures denominated in the same currency that have maturity dates approximating the terms of the
Group’s obligation.
115ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
25. Employee benefits - (cont’d)
25.4 Other long-term employee benefits
The Group’s net obligation for long-term employee benefits which are not attributable to post-employment
benefit plans is for the amount of the future benefit to which employees are entitled for services that were
provided during the current and prior periods.The amount of these benefits is discounted to its present value and the fair value of the assets related to these
obligations is deducted therefrom. The discount rate used is the yield on the reporting date on highly-rated
corporate debentures denominated in the same currency that have maturity dates approximating the terms
of the Group’s obligation.
26. Share-based payment
Share-based payment refers to the transaction in order to acquire the service offered by the employees or
other parties that grants equity instruments or liabilities on the basis of the equity instruments. Share-based
payment classified into equity-settled share-based payment and cash-settled share-based payment.
26.1 Cash-settled share-based payment
The cash-settled share-based payment should be measured according to the fair value of the liabilities
recognized based on the shares or other equity instrument undertaken by the Company. For cash-settled
share-based payment made in return for the rendering of employee services that cannot be exercised until
the services are fully provided during the vesting period or specified performance targets are met on each
balance sheet date within the vesting period the services acquired in the current period shall based on the
best estimate of the number of exercisable instruments be recognized in relevant expenses and the
corresponding liabilities at the fair value of the liability incurred by the Company.On each balance sheet date and the settlement date before the settlement of the relevant liabilities the
Company should re-measure the fair value of the liabilities and the changes should be included in the current
period profit and loss.
27. Provisions
Provisions are recognized when the Group has a present obligation related to a contingency it is probable
that an outflow of economic benefits will be required to settle the obligation and the amount of the obligation
can be measured reliably.The amount recognized as a provision is the best estimate of the consideration required to settle the present
obligation at the settlement date taking into account factors pertaining to a contingency such as the risks
uncertainties and time value of money. Where the effect of the time value of money is material the amount
of the provision is determined by discounting the related future cash outflows. The increase in the provision
due to passage of time is recognized as interest expense.If all or part of the provision settlements is reimbursed by third parties when the realization of income is
virtually certain then the related asset should be recognized. However the amount of related asset
recognized should not be exceeding the respective provision amount.At the balance sheet date the amount of provision should be re-assessed to reflect the best estimation then.
116ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
28. Revenue
Revenue of the Group is mainly from sale of goods.The Group recognizes revenue when transferring goods to a customer at the amount of the transaction price.The timing of transferring the control of goods changes according to the specific terms of the sale contract.Regarding sales of products transfer of the control of goods generally occurs when the products arrive at the
customer’s warehouse while for certain overseas shipments the transfer occurs when the products are loaded
on the shipper’s transport vehicles.Transaction price is the amount of consideration to which an entity expects to be entitled in exchange for
transferring goods to a customer excluding amounts collected on behalf of third parties.Variable consideration
Variable consideration includes sales with a right of return (see below) refunds discounts volume rebates
etc. The amounts of variable consideration are estimated using the Group’s past experience in the relevant
markets. The Group includes in the transaction price the amounts of variable consideration only to the extent
that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not
occur when the uncertainty associated with the variable consideration is subsequently resolved.Significant financing component
For a contract with a significant financing component the Group recognize revenue at an amount that reflects
the price that a customer would have paid for the goods if the customer had paid cash for those goods at
receipt. The difference between the amount of consideration and the cash selling price of the goods is
amortized in the contract period using effective interest rate. The Group does not adjust the amount of
consideration for the effects of a significant financing component if the Group expects at contract inception
that the period between when the entity transfers a good to a customer and when the customer pays for that
good will be one year or less.Sale with a right of return
For sale with a right of return the Group recognizes revenue at the amount of consideration to which the
Group expects to be entitled (ie excluding the products expected to be returned). For any amounts received
(or receivable) for which an entity does not expect to be entitled the entity shall not recognize revenue when
it transfers products to customers but shall recognize those amounts received (or receivable) as a refund
liability. An asset recognized for the Group’s right to recover products from a customer on settling a refund
liability shall initially be measured by reference to the former carrying amount of the product less any
expected costs to recover those products.Advance receipts for the sale of goods
When the Group receives advance payments from customers for the sale of goods it first recognizes such
payments as liabilities and then transfers them to revenue when the relevant performance obligations are
fulfilled.
117ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
29. Government grants
Government grants are transfer of monetary assets and non-monetary assets from the government to the
Group at no consideration including tax returns financial subsidies and so on. A government grant is
recognized only when the Group can comply with the conditions attached to the grant and the Group will
receive the grant.If a government grant is in the form of a transfer of a monetary asset it is measured at the amount received
or receivable. If a government grant is in the form of a non-monetary asset it is measured at fair value. If
the fair value cannot be reliably determined it is measured at a nominal amount.Government grants are either related to assets or income.
(1) The basis of judgment and accounting method of the government grants related to assets
Government grants obtained for acquiring long-term assets are government grants related to assets. A
government grant related to an asset is offset with the cost of the relevant asset.
(2) The basis of judgment and accounting method of the government grants related to income
For a government grant related to income if the grant is a compensation for related expenses or losses to be
incurred in subsequent periods the grant is recognized as deferred income and recognized in profit or loss
over the periods in which the related costs are recognized. If the grant is a compensation for related expenses
or losses already incurred the grant is recognized immediately in profit or loss for the period.Government grants related to the Group’s normal course of business are offset with related costs and
expenses. Government grants related that are irrelevant with the Group’s normal course of business are
included in non-operating gains.
30. Current and deferred tax
The income tax expenses include current income tax and deferred income tax.
30.1 Current income tax
At the balance sheet date current income tax liabilities (or assets) for the current and prior periods are
measured at the amount expected to be paid (or recovered) according to the requirements of tax laws.
30.2 Deferred tax assets and deferred tax liabilities
Temporary differences are differences between the carrying amounts of certain assets or liabilities and their
tax base.All taxable temporary differences are recognized as related deferred tax liabilities. Deferred tax assets are
recognized to the extent that it is probable that future taxable profits will be available against which the
deductible losses and tax credits can be utilized.
118ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
30. Current and deferred tax - (cont’d)
30.2 Deferred tax assets and deferred tax liabilities - (cont’d)
For deductible losses and tax credits that can be carried forward deferred tax assets are recognized to the
extent that it is probable that future taxable profits will be available against which the deductible losses and
tax credits can be utilized. However for deductible temporary differences associated with the initial
recognition of goodwill and the initial recognition of an asset or liability arising from a transaction (not a
business combination) that affects neither the accounting profit nor taxable profits (or deductible losses) at
the time of transaction no deferred tax asset or liability is recognized.At the balance sheet date deferred tax assets and liabilities are measured at the tax rates according to tax
laws that are expected to apply in the period in which the asset is realized or the liability is settled.Deferred tax liabilities are recognized for taxable temporary differences associated with investments in
subsidiaries and associates and interests in joint ventures except where the Group is able to control the
timing of the reversal of the temporary difference and it is probable that the temporary difference will not
reverse in the foreseeable future.The Group may be required to pay additional tax in case of distribution of dividends by the Group companies.This additional tax was not included in the financial statements since the policy of the Group is not to
distribute in the foreseeable future a dividend which creates a significant additional tax liability.Except for those current income tax and deferred tax charged to comprehensive income or shareholders’
equity in respect of transactions or events which have been directly recognized in other comprehensive
income or shareholders’ equity and deferred tax recognized on business combinations all other current
income tax and deferred tax items are charged to profit or loss in the current period.At the balance sheet date the carrying amount of deferred tax assets is reviewed and reduced if it is no longer
probable that sufficient taxable profits will be available in the future to allow the benefit of deferred tax
assets to be utilized. Such reduction is reversed when it becomes probable that sufficient taxable profits will
be available.
30.3 Offset of income tax
When the Group has a legal right to settle current tax assets and liabilities on a net basis and tax assets and
tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity
or different taxable entities which intend to realize the assets and liabilities simultaneously current tax assets
and liabilities are offset and presented on a net basis.When the Group has a legal right to settle deferred tax assets and liabilities on a net basis which relates to
income taxes levied by the same taxation authority on either the same taxable entity or different taxable
entities which intend either to settle current tax assets and liabilities on a net basis or to realize the assets and
liabilities simultaneously in each future period in which significant amounts of deferred tax assets or
liabilities are expected to be reversed deferred tax assets and deferred tax liabilities are offset and presented
on a net basis.
119ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
31. Leases
Lease is a contract that conveys the right to use an asset for a period of time in exchange for consideration.
31.1 Determining whether an arrangement contains a lease
On the inception date of the lease the Group determines whether the arrangement is a lease or contains a
lease while assessing if it conveys the right to control the use of an identified asset for a period of time in
exchange for consideration. In its assessment of whether an arrangement conveys the right to control the use
of an identified asset the Group assesses whether it has the following two rights throughout the lease term:
(a) The right to obtain substantially all the economic benefits from use of the identified asset; and
(b) The right to direct the identified asset’s use.An arrangement does not contain a lease if an asset is leased for a period of less than 12 months or to lease of
asset with low economic value.
31.2 Initial recognition of leased assets and lease liabilities
Upon initial recognition the Group recognizes a liability at the present value of future lease payments
(exclude certain variable lease payments as detailed in Note III 31.4) and concurrently the Group recognizes
a right-of-use asset at the same amount adjusted for any prepaid lease payments paid at the lease date or
before plus initial direct costs incurred in respect of the lease.When the interest rate implicit in the lease is not readily determinable the incremental borrowing rate of the
lessee is used.The Group presents right-of-use assets separately from other assets in the balance sheet.
31.3 The lease term
The lease term is the non-cancellable period of the lease plus periods covered by an extension or termination
option if it is reasonably certain that the lessee will exercise or not exercise the option respectively.If there is a change in the lease term or in the assessment of an option to purchase the underlying asset the
Group remeasures the lease liability on the basis of the revised lease term and the revised discount rate and
adjust the right-of-use assets accordingly.
31.4 Variable lease payments
Variable lease payments that depend on an index or a rate are initially measured using the index or rate
existing at the commencement of the lease. When the cash flows of future lease payments change as the
result of a change in an index or a rate the balance of the liability is adjusted with a correspondence change
in the right-of-use asset.Other variable lease payments that are not included in the measurement of the lease liability are recognized
in profit or loss in the period in which the condition that triggers payment occurs.
120ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
31. Leases - (cont’d)
31.5 Subsequent measurement
After lease commencement a right-of-use asset is measured on a cost basis less accumulated depreciation
and accumulated impairment losses and is adjusted for re-measurements of the lease liability. The asset is
depreciated on a straight-line basis over the useful life or contractual lease period whichever earlier.The Group applies ASBE8 Impairment of Assets to determine whether the right-of-use asset is impaired
and to account for any impairment loss identified.A lease liability is measured after the lease commencement date at amortized cost using the effective interest
method.
32. Other significant accounting policies and accounting estimates
32.1 Hedging
The Group uses derivative financial instruments to hedge its risks related to foreign currency and inflation
risks and derivatives that are not used for hedging.Hedge accounting
The Group makes an assessment both at the inception of the hedge relationship as well as on an ongoing
basis whether the hedge is expected to be effective in offsetting the changes in the fair value of cash flows
that can be attributed to the hedged risk during the period for which the hedge is designated.An effective hedge exists when all of the below conditions are met:
* There is an economic relationship between the hedged item and the hedging instrument;
* the effect of credit risk does not dominate the value changes that result from that economic
relationship;
* the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the
hedged item that the entity actually hedges and the quantity of the hedging instrument that the entity
actually uses to hedge that quantity of hedged item.On the commencement date of the accounting hedge the Group formally documents the relationship between
the hedging instrument and hedged item including the Group’s risk management objectives and strategy in
executing the hedge transaction together with the methods that will be used by the Group to assess the
effectiveness of the hedging relationship.With respect to a cash-flow hedge a forecasted transaction that constitutes a hedged item must be highly
probable and must give rise to exposure to changes in cash flows that could ultimately affect profit or loss.
121ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
32. Other significant accounting policies and accounting estimates - (cont’d)
32.1 Hedging - (cont’d)
Cash-flow hedges
Subsequent to the initial recognition changes in the fair value of derivatives used to hedge cash flows are
recognized through other comprehensive income directly in a hedging reserve with respect to the part of the
hedge that is effective. Regarding the portion of the hedge that is not effective the changes in fair value are
recognized in profit and loss. The amount accumulated in the hedging reserve is reclassified to profit and
loss in the period in which the hedged cash flows impact profit or loss and is presented in the same line item
in the statement of income as the hedged item.If the hedging instrument no longer meets the criteria for hedge accounting expires or is sold terminated or
exercised the hedge accounting is discontinued. The cumulative gain or loss previously recognized in a
hedging reserve through other comprehensive income remains in the reserve until the forecasted transaction
occurs or is no longer expected to occur. If the forecasted transaction is no longer expected to occur the
cumulative gain or loss in respect of the hedging instrument in the hedging reserve is reclassified to profit
or loss.Economic hedge
Hedge accounting is not applied with respect to derivative instruments used to economically hedge financial
assets and liabilities denominated in foreign currency or CPI linked. Changes in the fair value of such
derivatives are recognized in profit or loss as gain (loss) from changes in fair value.
32.2 Securitization of assets
Details of the securitization of asset agreements and accounting policy are set out in Note V.5 - Account
receivables.
32.3 Segment reporting
Reportable segments are identified based on operating segments which are determined based on the structure
of the Group’s internal organization management requirements and internal reporting system.Two or more operating segments may be aggregated into a single operating segment if the segments have
similar economic characteristics and are same or similar in respect of the nature of each product and service
the nature of production processes the type or class of customers for the products and services the methods
used to distribute the products or provide the services and the nature of the regulatory environment.Inter-segment revenues are measured on the basis of actual transaction price for such transactions for
segment reporting. Segment accounting policies are consistent with those for the consolidated financial
statements.
122ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
32. Other significant accounting policies and accounting estimates - (cont’d)
32.4 Profit distributions to shareholders
Dividends which are approved after the balance sheet date are not recognized as a liability at the balance
sheet date but are disclosed in the notes separately.
33. Changes in significant accounting policies and accounting estimates
33.1 Changes in significant accounting policies
There are no significant changes in accounting policies in the reporting period.
33.2 Changes in significant accounting estimates
There are no significant changes in accounting estimates in the reporting period.
34. Significant accounting estimates and judgments
The preparation of the financial statements requires management to make estimates and assumptions that
affect the application of accounting policies and the reported amounts of assets liabilities income and
expenses. Actual results may differ from these estimates. Estimates as well as underlying assumptions and
uncertainties involved are reviewed on an ongoing basis. Revisions to accounting estimates are recognized
in the period in which the estimate is revised and in any future periods affected.Notes V.34 Note VIII Note IX and Note XIII contain information about the assumptions and their risk
factors relating to post-employment benefits – defined benefit plans fair value of financial instruments and
share-based payments. Other key sources of estimation uncertainty are as follows:
34.1 Expected credit loss of trade receivables
As described in Note III.12 trade receivables are reviewed at each balance sheet date to determine whether
credit risk on a receivable has increased significantly since initial recognition lifetime expected losses is
accrued for impairment provision. Evidence of impairment includes observable data that comes to the
attention of the Group about loss events such as a significant decline in the solvency of an individual debtor
or the portfolio of debtors and significant changes in the financial condition that have an adverse effect on
the debtor. If there is objective evidence of a recovery in the value of receivables which can be related
objectively to an event occurring after the impairment was recognized the previously recognized impairment
loss is reversed.
123ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
34. Significant accounting estimates and judgments - (cont’d)
34.2 Provision for impairment of inventories
As described in Note III.15 the net realisable value of inventories is under management’s regular review
and as a result provision for impairment of inventories is recognized for the excess of inventories’ carrying
amounts over their net realisable value. When making estimates of net realisable value the Group takes into
consideration the use of inventories held on hand and other information available to form the underlying
assumptions including the inventories’ market prices and the Group’s historical operating costs. The actual
selling price the costs of completion and the costs necessary to make the sale and relevant taxes may vary
based on the changes in market conditions and product saleability manufacturing technology and the actual
use of the inventories resulting in the changes in provision for impairment of inventories. The net profit or
loss may then be affected in the period when the impairment of inventories is adjusted.
34.3 Impairment of assets other than inventories and financial assets
As described in Note III.23 if impairment indication exists assets other than inventories and financial assets
are assessed at balance sheet date to determine whether the carrying amount exceeds the recoverable amount
of the assets. If any such case exists an impairment loss is recognized.If it is not practical to estimate the recoverable amount of an individual asset the recoverable amount of the
asset group to which the asset belongs will be estimated. Impairment exists if the carrying amount of an asset
or asset group is higher than recoverable amount the higher of its fair value less costs of disposal and the
present value of the future cash flows expected to be derived from the asset or asset group. In assessing the
present value of estimated future cash flows significant judgements are exercised over the asset’s production
selling price related operating expenses and discount rate to calculate the present value. All the parameters
used for estimation of the recoverable amount are based on reasonable and supportable assumptions.
34.4 Depreciation and amortisation of assets such as fixed assets and intangible assets
As described in Note III.18 and III.21 assets such as fixed assets and intangible assets are depreciated and
amortised over their useful lives after taking into account residual value. The estimated useful lives of the
assets are regularly reviewed to determine the depreciation and amortisation costs charged in each reporting
period. The useful lives of the assets are determined based on historical experience of similar assets and the
estimated technical changes. If there have been significant changes in the factors used to determine the
depreciation or amortisation the rate of depreciation or amortisation is revised prospectively.
124ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
34. Significant accounting estimates and judgments - (cont’d)
34.5 Income taxes and deferred income tax
The Company and Group companies are assessed for income tax purposes in a large number of jurisdictions
and therefore Company management is required to use considerable judgment in determining the total
provision for taxes and attribution of income.When assessing whether there will be sufficient future taxable profits available against which the deductible
temporary differences can be utilised the Group recognizes deferred tax assets to the extent that it is probable
that future taxable profits will be available against which the deductible temporary differences can be utilised
using tax rates that would apply in the period when the asset would be utilised. In determining the amount
of deferred tax assets the Group makes reasonable judgements and estimates about the timing and amount
of taxable profits to be utilised in the following periods and of the tax rates applicable in the future according
to the existing tax policies and other relevant regulations. If the actual timing and amount of future taxable
profits or the actual applicable tax rates differ from the estimates made by management the differences affect
the amount of tax expenses.
34.6 Contingent liabilities
When assessing the possible outcomes of legal claims filed against the Company and its investee companies
the company positions are based on the opinions of their legal advisors. These assessments by the legal
advisors are based on their professional judgment considering the stage of the proceedings and the legal
experience accumulated regarding the various matters. Since the results of the claims will be determined by
the courts the outcomes could be different from the assessments.In addition to the said claims the Group is exposed to unasserted claims inter alia where there is doubt as
to interpretation of the agreement and/or legal provision and/or the manner of their implementation. This
exposure is brought to the Company’s attention in several ways among others by means of contacts made
to Company personnel. In assessing the risk deriving from the unasserted claims the Company relies on
internal assessments by the parties dealing with these matters and by management who weigh assessment
of the prospects of a claim being filed and the chances of its success if filed. The assessment is based on
experience gained with respect to the filing of claims and the analysis of the details of each claim. By their
nature in view of the preliminary stage of the clarification of the legal claim the actual outcome could be
different from the assessment made before the claim was filed.
34.7 Employee benefits
The Group’s liabilities for long-term post-employment and other benefits are calculated according to the
estimated future amount of the benefit to which the employee will be entitled in consideration for his services
during the current period and prior periods. The benefit is stated at present value net of the fair value of the
plan’s assets based on actuarial assumptions. Changes in the actuarial assumptions could lead to material
changes in the book value of the liabilities and in the operating results.
125ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
34. Significant accounting estimates and judgments - (cont’d)
34.8 Derivative financial instruments
The Group enters into transactions in derivative financial instruments for the purpose of hedging risks related
to foreign currency and inflationary risks. The derivatives are recorded at their fair value. The fair value of
derivative financial instruments is based on quotes from financial institutions. The reasonableness of the
quotes is examined by discounting the future cash flows based on the terms and length of the period to
maturity of each contract while using market interest rates of a similar instrument as of the measurement
date. Changes in the assumptions and the calculation model could lead to material changes in the fair value
of the assets and liabilities and in the results.
126ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
IV. Taxation
1. Main types of taxes and corresponding tax rates
The income tax rate in China is 25% (2024: 25%). The subsidiaries outside of China are assessed based on
the tax laws in the country of their residence.Set forth below are the tax rates outside China relevant to the largest subsidiaries of the Group in respect of
assets and operating income:
Name of subsidiary Location 2025
ADAMA agriculture solutions Ltd. Israel 23.0%
ADAMA Makhteshim Ltd. Israel 7.5%
ADAMA Agan Ltd. Israel 16.0%
ADAMA Brasil S/A Brazil 34.0%
Makhteshim Agan of North America Inc. U.S. 24.3%
ADAMA India Private Ltd India 25.2%
ADAMA Deutschland GmbH Germany 32.5%
Control Solutions Inc. U.S. 26.0%
Adama Australia Pty Ltd Australia 30.0%
ADAMA Northern Europe B.V. Netherlands 25.8%
ADAMA Italia SRL Italy 27.9%
Alligare LLC U.S. 26.1%
The VAT rate of the Group's subsidiaries is in the range between 2.6% to 27%.
(1) Benefits from High-Tech Certificate
The Company was jointly approved as new and high-tech enterprise by the Hubei Provincial Department
of Science and Technology Department of Finance of Hubei Province and Hubei Provincial Office of the
State Administration of Taxation. The applicable income tax rate for 2025 and 2024 is 15%.Adama Anpon (Jiangsu) Ltd. (Formally know as Jiangsu Anpon Electrochemical Co. Ltd hereinafter -“Anpon") a subsidiary of the Company was jointly approved as new and high-tech enterprise by the JiangsuProvincial Department of Science and Technology Department of Finance of Jiangsu Province and Jiangsu
Provincial Office of the State Administration of Taxation. The applicable income tax rate for 2025 and 2024
is 15%.
(2) Benefits In Israel under the Law for the Encouragement of Capital Investments
The Israeli enterprises are entitled to tax benefits under the Israeli Law for the Encouragement of Capital
Investments 1959. The Israeli enterprises have retained earnings that have been generated under the status
of “Approved Enterprise” or “Beneficiary Enterprise”. In the event that a dividend is distributed from these
retained earnings such dividend may be liable to tax at the time of distribution.
127ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
IV. Taxation - (cont’d)
1. Main types of taxes and corresponding tax rates - (cont’d)
(3) Amendment to the Law for the Encouragement of Capital Investments 1959
Since 2013 the Israeli enterprises are taxed under the "Preferred Enterprise" regime. The benefits include a
grants track for enterprises located on Area A. Tax rates on preferred income as from 2017 tax year are as
follows: 7.5% for Development Area A and 16% for the rest of the country. The amendment further
determined that no tax shall apply to dividend distributed out of preferred income to Israel resident company
shareholder.As of January 1 2017 the law includes new tax benefit tracks for a “preferred technological enterprise” and
a “special preferred technological enterprise” which award reduced tax rates to a technological industrial
enterprise for the purpose of encouraging activity relating to the development of qualifying intangible assets.The benefits will be awarded to a “preferred company” that has a “preferred technological enterprise” or a
“special preferred technological enterprise” with respect to taxable “preferred technological income” per its
definition in the Encouragement Law. Regulations that provide a nexus formula for allocating eligible profits
govern these regimes.Income of a Preferred Technological Enterprise a Special Preferred Technological Enterprise will be subject
to a reduced corporate tax rate of 6% regardless of the development area in which the enterprise is located.
128ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements
1. Cash at Bank and On Hand
June 30 December 31
20252024
Cash on hand 1202 1317
Deposits in banks 3314483 3582646
Other cash and bank balances 181544 46645
34972293630608
Including cash and bank balances placed outside China 2570438 2849640
As at June 30 2025 restricted cash and bank balances was 181544 thousand RMB (as at December 31 2024
46645 thousand RMB) mainly including deposits that guarantee bank acceptance drafts.
2. Financial assets held for trading
June 30 December 31
20252024
Bank deposits 2047 1035
20471035
3. Derivative financial assets
June 30 December 31
20252024
Economic hedge 832230 445465
Accounting hedge derivatives 31176 38357
863406483822
4. Bills Receivable
June 30 December 31
20252024
Post-dated checks receivable 94322 65565
9432265565
129ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements – (cont'd)
5. Accounts Receivable
a. By category
June 30 2025
Provision for expected
Book value credit losses
Percentage Carrying
Amount (%) Amount Percentage (%) amount
Account receivables assessed 587647 7 354756 60 232891
individually for impairment
Account receivables assessed 7973408 93 106028 1 7867380
collectively for impairment
856105510046078458100271
December 31 2024
Provision for expected
Book value credit losses
Carrying
Amount Percentage (%) Amount Percentage (%) amount
Account receivables assessed 497541 6 321410 65 176131
individually for impairment
Account receivables assessed 7911529 94 109830 1 7801699
collectively for impairment
840907010043124057977830
b. Aging analysis
June 30 2025
Within 1 year (inclusive) 8083699
Over 1 year but within 2 years 214686
Over 2 years but within 3 years 39515
Over 3 years but within 4 years 46760
Over 4 years but within 5 years 16715
Over 5 years 159680
8561055
130ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements – (cont'd)
5. Accounts Receivable – (cont'd)
Main groups of account receivables assessed collectively for impairment based on geographical
location:
Geographical location A:
Account receivables in geographical location A are grouped based on similar credit risk:
June 30 2025
Provision for expected
Book value credit loss Percentage (%)
Credit group A 1063616 3348 0.3
Credit group B 423900 3669 0.9
Credit group C 254605 11108 4.4
Credit group D 42733 891 2.1
1784854190161.1
Geographical location B:
Account receivables in geographical location B are grouped based on aging analysis:
June 30 2025
Provision for expected
Book value credit loss Percentage (%)
Accounts receivable that are not overdue 566446 5032 0.9
Debts overdue less than 100 days 44905 1323 3.0
Debts overdue less than 190 days but 24341 2434 10.0
more than 100 days.Debts overdue less than 360 days but 26569 10628 40.0
more than 190 days.Debts overdue above 360 days 15356 11357 74.0
Legal Debtors 36290 36290 100.0
713097670649.4
Other geographical locations:
June 30 2025
Provision for expected
Book value credit loss Percentage (%)
Other account receivables assessed 5475457 19948 0.4
collectively for impairment
131ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements – (cont'd)
5. Accounts Receivable – (cont'd)
c. Addition written-back and written-off of provision for expected credit losses during the period
Lifetime expected
credit loss (credit Lifetime expected
losses has not credit loss (credit
occurred) losses has occurred) Total
January 1 2025 55908 375332 431240
Addition (write back) during the period net (11869) 94170 82301
Write-off during the period - (12269) (12269)
Reclassification to long term - (52116) (52116)
Exchange rate effect (117) 11745 11628
Balance as of June 30 2025 43922 416862 460784
d. Five largest accounts receivable at June 30 2025:
Allowance of expected
Proportion of Accounts credit losses (credit losses
Name Closing balance receivable (%) has occurred)
Customer 1 212022 1.6 -
Customer 2 133859 1.2 -
Customer 3 103907 2.5 96634
Customer 4 103628 1.2 -
Customer 5 84192 1.0 -
Total 637608 7.5 96634
e. Derecognition of accounts receivable due to transfer of financial assets
Certain subsidiaries of the group entered into a securitization transaction with Rabobank International for
sale of trade receivables (hereinafter – “the Securitization Program” and/or “the Securitization Transaction”).Pursuant to the Securitization Program the companies will sell their trade receivables debts in various
different currencies to a foreign company that was set up for this purpose and that is not owned by the
Adama Ltd. (hereinafter – “the Acquiring Company”). Acquisition of the trade receivables by the Acquiring
Company is financed by Cooperative Rabobank U.A..The trade receivables included as part of the Securitization Transaction are trade receivables that meet the
criteria provided in the agreement.Every year the credit facility is re-approved in accordance with the Securitization Program. As at 30 June
2025 the Securitization agreement was approved up to October 25 2025.
132ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements – (cont'd)
5. Accounts Receivable – (cont'd)
e. Derecognition of accounts receivable due to transfer of financial assets - (cont'd)
The maximum scope of the securitization is adjusted for the seasonal changes in the scope of the Company’s
activities as follows: during January - 350m$ (as of June-2025 2506 million RMB) during the months of
February through July – 400m$ (as of June-2025 2863 million RMB) during the months of August through
September – 300m$ (as of June-2025 2148 million RMB) during the months of October through November-
275m$ (as of June-2025 1969 million RMB) and during the monthof December – 300m$ (as of June-2025
2148 million RMB). In addition the company has a permanent uncommitted facility of 50$ million (as of
June-2025 358 million RMB) which will be applicable each period. The proceeds received from those
customers whose debts were sold are used for acquisition of new trade receivables.The price at which the trade receivables debts are sold is the amount of the debt sold less a discount calculated
based on among other things the expected length of the period between the date of sale of the trade
receivable and its anticipated repayment date. In the month following acquisition of the debt the Acquiring
Company pays in cash most of the debt while the remainder is recorded as a subordinated note and as
continuing involvement that is paid after collection of the debt sold. If the customer does not pay its debt on
the anticipated repayment date the Company bears interest up to the earlier of the date on which the debt is
actually repaid or the date on which debt collection is transferred to the insurance company (the actual costs
are not significant and are not expected to be significant).The Acquiring Company bears 95% of the credit risk in respect of the customers whose debts were sold and
will not have a right of recourse to the Company in respect of the amounts paid in cash except regarding
debts with respect to which a commercial dispute arises between the companies and their customers that is
a dispute the source of which is a claim of non-fulfillment of an obligation of the seller in the supply
agreement covering the product such as: a failure to supply the correct product a defect in the product
delinquency in the supply date and the like.The Acquiring Company appointed a policy manager who will manage for it the credit risk involved with
the trade receivables sold including an undertaking with an insurance company.Pursuant to the Receivables Servicing Agreement the Group subsidiaries handle collection of the trade
receivables as part of the Securitization Transaction for the benefit of the Acquiring Company.As part of the agreement Solutions is committed to comply with certain financial covenants mainly the ratio
of the liabilities to equity and profit ratios. As of June 30 2025 Solutions was in compliance with the
financial covenants.The accounting treatment of sale of the trade receivables included as part of the Securitization Program is:
The Company is not controlling the Acquiring Company therefore the Acquiring Company is not
consolidated in the financial statements.The Company continues to recognize the trade receivables included in the Securitization Program based on
the extent of its continuing involvement therein.A subordinated note is recorded in respect of the portion of trade receivables included in the Securitization
Program with respect to outstanding cash proceeds however the Company has transferred the credit risk.The continuing involvement and subordinated note recorded in the balance sheet as part of the “otherreceivables” line item.
133ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements – (cont'd)
5. Accounts Receivable – (cont'd)
e. Derecognition of accounts receivable due to transfer of financial assets - (cont'd)
The loss from sale of the trade receivables is recorded at the time of sale in the statement of income in the
“financing expenses”.f. A subsidiary in Brazil (hereinafter - “the subsidiary”) entered into the following securitization
agreements:
(1) Since 2016 a securitization transaction with Rabobank Brazil for sale of customer receivables
(hereinafter "FIDC-Donegal agreement"). Under the FIDC-Donegal agreement the subsidiary will sell its
receivables to a securitization structure (hereinafter - “the entity”) that was formed for this purpose where
the subsidiary has subordinate rights of 5% of the entity's capital.As at June 17 2024 the FIDC-Donegal agreement was approved up to September 30 2027. The maximum
securitization scope as of June 30 2025 is BRL 355 million (466 million RMB).On the date of the sale of the customer receivables the entity pays the full amount which is the debt amount
sold net of discount calculated among others over the expected length of the period between the date of sale
of the customer receivable and its anticipated repayment date.The entity bears 95% of the credit risk in respect of the customers whose debts were sold such that the entity
has the right of recourse to 5% of the unpaid amount. The subsidiary has a pledged deposit with regards to
the entity’s right of recourse.The subsidiary continues to recognize the trade receivables sold to the entity based on the extent of its
continuing involvement therein (5% right of recourse) and also recognizes an associated liability in the same
amount.In "FIDC-Donegal agreement" the subsidiary handles the collection of receivables included in the
securitization for the entity.
(2) During 2021 the subsidiary has entered into an additional securitization agreement (hereinafter -
“FIDC – Liverpool agreement”) with Itau Bank and Farm investments for sale of customer receivables to a
securitization structure that was formed for this purpose where the subsidiary has mezzanine quotes of 10.5%
of the entity's capital.As at June 30 2025 the FIDC-Liverpool agreement was approved up to November 30 2025. The maximum
securitization scope as of June 30 2025 is BRL 226 million (296 million RMB).The entity bears 100% of the credit risk in respect of the customers whose debts were sold (non-recourse)
therefore the subsidiary has no continuing involvement in those account receivables sold.In "FIDC-Liverpool agreement" the collection of receivables is being handled by the entity.In all the agreements above the subsidiary does not control the entities and therefore the entities are not
consolidated in the Group's financial statements.The loss from the sale of the trade receivables is recorded at the time of sale in the statement of income in
the “financing expenses” category.
134ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements – (cont'd)
5. Accounts Receivable – (cont'd)
f. Derecognition of accounts receivable due to transfer of financial assets - (cont'd)
June 30 December 31
20252024
Accounts receivables derecognized 3774877 3114041
Continuing involvement 169079 137471
Subordinated note in respect of trade receivables 470914 897443
Liability in respect of trade receivables 119807 21127
Six months ended June 30
20252024
Loss in respect of sale of trade receivables 87344 97379
6. Receivables financing
June 30 December 31
20252024
Bank acceptance draft 107640 144763
107640144763
As at June 30 2025 bank acceptance endorsed but not yet due amounts to 432494 thousands RMB.
7. Prepayments
(1) The aging analysis of prepayments is as follows:
June 30 December 31
20252024
Amount Percentage (%) Amount Percentage (%)
Within 1 year (inclusive) 366603 98 306019 98
Over 1 year but within 2 years (inclusive) 5656 2 5138 2
Over 2 years but within 3 years (inclusive) 1715 - 1711 -
Over 3 years 175 - 674 -
374149100313542100
(2) Total of five largest prepayments by debtor at the end of the period:
Percentage of prepayments
Amount (%)
June 30 2025 122081 33
135ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements – (cont'd)
8. Other Receivables
(1) Other receivables by nature
June 30 December 31
20252024
Dividend receivable 3766 -
Others 802591 1147469
8063571147469
a. Others breakdown by categories
June 30 December 31
20252024
Subordinated note in respect of trade receivables 470914 897443
Trade receivables as part of securitization transactions
not yet eliminated 169079 137471
Other 179356 130385
Sub total 819349 1165299
Provision for expected credit losses - other receivables (16758) (17830)
8025911147469
b. Other receivables by aging
June 30
2025
Within 1 year (inclusive) 795184
Over 1 year but within 2 years 4366
Over 2 years but within 3 years 2263
Over 3 years but within 4 years 8613
Over 4 years but within 5 years 1079
Over 5 years 7844
819349
(2) Additions recovery or reversal and written-off of provision for expected credit losses during the
period:
Six months ended
June 30 2025
Balance as of January 1 2025 17830
Addition (written back) during the period 147
Write-off during the period (1187)
Exchange rate effect (32)
Balance as of June 30 2025 16758
136ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements – (cont'd)
8. Other Receivables – (cont'd)
(3) Five largest other receivables at June 30 2025:
Allowance of
Proportion of other expected credit
Name Closing balance receivables (%) losses
Party 1 470914 57 -
Party 2 9879 1 -
Party 3 3125 - 3125
Party 4 1681 - 1681
Party 5 1641 - 1641
Total 487240 58 6447
9. Inventories
(1) Inventories by category:
June 30 2025
Provision for
Book value impairment Carrying amount
Raw materials 3627504 27175 3600329
Work in progress 1662122 1460 1660662
Finished goods 6084021 228251 5855770
Others 512803 16643 496160
1188645027352911612921
December 31 2024
Provision for
Book value impairment Carrying amount
Raw materials 2675281 24255 2651026
Work in progress 1831853 4151 1827702
Finished goods 6490899 280088 6210811
Others 487335 12211 475124
1148536832070511164663
137ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements – (cont'd)
9. Inventories - (cont'd)
(2) Provision for impairment of inventories:
For the Six months ended June 30 2025
January 1 Reversal or
2025 Provision write-off Other June 30 2025
Raw material 24255 12966 (9981) (65) 27175
Work in progress 4151 432 (3120) (3) 1460
Finished goods 280088 134597 (186223) (211) 228251
Others 12211 4356 (380) 456 16643
320705152351(199704)177273529
10. Other Current Assets
June 30 December 31
20252024
Deductible VAT 611644 611737
Current tax assets 325826 261872
Short term investments 138956 72725
Others 59896 41759
1136322988093
11. Long-Term Receivables
June 30 December 31
20252024
Long term account receivables from sale of goods 413008 159813
Provision for expected credit losses – long term receivables (70233) -
342775159813
1) Additions recovery or reversal of provision for expected credit losses during the period:
Provision for
long term
receivables
January 1 2025 -
Reclassification from short term 52116
Addition (write back) during the period net 11231
Exchange rate effect 6886
Balance as of June 30 2025 70233
V. Notes to the consolidated financial statements – (cont'd)
138ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
12. Long-Term Equity Investments
(1) Long-term equity investments by category:
June 30 December 31
20252024
Joint venture 2035 1907
Associate 33921 28320
3595630227
(2) Movements of long-term equity investments for the period are as follows:
Other Declared
January 1 Investment Comprehensive distribution of Balance at the
2025 income income cash dividend end of the period
Joint
venture
Investee A 1907 137 (9) - 2035
Sub-total 1907 137 (9) - 2035
Associate
Investee B 28320 5124 3802 (3325) 33921
Sub-total 28320 5124 3802 (3325) 33921
Sub-total 30227 5261 3793 (3325) 35956
13. Other equity investments
December 31 Dividend received
June 30 2025 2024 during 2025
Investment A 54299 54299 -
Investment B 76870 77174 -
131169131473-
Other equity investments are non-core businesses that are intended to be held in the foreseeable future.
139ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements – (cont'd)
14. Fixed assets
Land & Machinery & Office & other
Buildings equipment Motor vehicles equipment Total
Cost
Balance as at January 1 2025 4555365 19377869 192853 513027 24639114
Purchases 58850 38236 7924 15253 120263
Transfer from construction in progress 17703 221343 442 581 240069
Disposals (14279) (592823) (17490) (10772) (635364)
Currency translation adjustment 22646 (19911) 3870 3509 10114
Balance as at June 30 2025 4640285 19024714 187599 521598 24374196
Accumulated depreciation
Balance as at January 1 2025 (1931798) (11484429) (85812) (410178) (13912217)
Charge for the period (74194) (410472) (15368) (20041) (520075)
Disposals 6294 572529 13623 9211 601657
Currency translation adjustment (4881) 7871 (3770) (2833) (3613)
Balance as at June 30 2025 (2004579) (11314501) (91327) (423841) (13834248)
Provision for impairment
Balance as at January 1 2025 (392586) (569765) (694) (957) (964002)
Transfer from construction in progress - (3897) - - (3897)
Disposals 2447 11839 47 - 14333
Currency translation adjustment 969 1618 (346) 2 2243
Balance as at June 30 2025 (389170) (560205) (993) (955) (951323)
Carrying amounts
As at June 30 2025 2246536 7150008 95279 96802 9588625
As at January 1 2025 2230981 7323675 106347 101892 9762895
The lands reported as fixed assets are owned by the group subsidiaries and are located outside of China.
140ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
15. Construction in Progress
(1) Construction in progress
June 30 December 31
20252024
Provision for Provision for
Book value impairment Carrying amount Book value impairment Carrying amount
2239097(305690)19334072306480(309588)1996892
(2) Details and Movements of major construction projects in progress during period ended June 30 2025
Actual
Including: Currency Transfer cost to Project
January Interest translation to fixed June 30 budget progress
Budget 1 2025 Additions capitalized differences assets Impairment 2025 (%) (%) Source of funds
Project A 1048741 123633 2827 - - (635) - 125825 77% 77% Bank loan and internal finance
Project B 173073 24307 3382 - - (2020) - 25669 99% 99% Internal finance
Project C 959252 788927 43900 6595 (3424) - - 829403 86% 86% Bank loan and internal finance
* As of June 30 2025 Project A and Project B include impairment of RMB 14 million and 35 million respectively.
141ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
16. Right-of-use assets
Land & Machinery & Office & other
Buildings equipment Motor vehicles equipment Total
Cost
Balance as at January 1 2025 733276 44712 287129 4773 1069890
Additions 24252 484 38532 - 63268
Decrease (29976) (1886) (46128) (65) (78055)
Currency translation adjustment 8270 (165) 1092 (20) 9177
Balance as at June 30 2025 735822 43145 280625 4688 1064280
Accumulated depreciation
Balance as at January 1 2025 (338365) (20471) (151141) (2754) (512731)
Charge for the period (49724) (1586) (42487) (421) (94218)
Decrease 25958 1886 44253 65 72162
Currency translation adjustment (1206) 62 (780) 10 (1914)
Balance as at June 30 2025 (363337) (20109) (150155) (3100) 536701
Provision for impairment
Balance as at January 1 2025 - - - - -
Balance as at June 30 2025 - - - - -
Carrying amounts
As at June 30 2025 372485 23036 130468 1588 527579
As at January 1 2025 394911 24241 135988 2019 557159
142ADAMA LTD.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
17. Intangible Assets
Marketing
Intangible assets rights
Product on Purchase of tradename and Customers
registration Products Software trademarks relations Land use rights (1) Others(2) Total
Costs
Balance as at January 1 2025 13458047 4280000 1522254 851480 647905 507127 677222 21944035
Purchases 161525 - 72498 - - - 7939 241962
Currency translation adjustment (25577) (19552) (6148) (3143) (373) (167) 3830 (51130)
Balance as at June 30 2025 13593995 4260448 1588604 848337 647532 506960 688991 22134867
Accumulated amortization
Balance as at January 1 2025 (10900925) (3541336) (943309) (591866) (410266) (119350) (306093) (16813145)
Charge for the period (287100) (55329) (57559) (11214) (21295) (5168) (9929) (447594)
Currency translation adjustment 26865 14975 2173 1670 (255) (394) 577 45611
Balance as at June 30 2025 (11161160) (3581690) (998695) (601410) (431816) (124912) (315445) (17215128)
Provision for impairment
Balance as at January 1 2025 (161347) (161782) (9488) - - - (1618) (334235)
Charge for the period - (1435) - - - - - (1435)
Currency translation adjustment (3380) 674 40 - - - - (2666)
Balance as at June 30 2025 (164727) (162543) (9448) - - - (1618) (338336)
Carrying amount
As at June 30 2025 2268108 516215 580461 246927 215716 382048 371928 4581403
As at January 1 2025 2395775 576882 569457 259614 237639 387777 369511 4796655
(1) Include land parcel in Israel that has not yet been registered in the name of the Group subsidiaries at the Land Registry Office mostly due to registration procedures or technical problems.
(2) Mainly exclusivity agreements.
143ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
18. Goodwill
Changes in goodwill
The Group allocates goodwill to two cash generating units ("CGU" ) Crop Protection (Agro) and a non-core
activity included in the Intermediates and ingredients segment. At the end of the year or more frequently whether
indicators for impairment exists the Group estimates the recoverable amount of each CGU for which goodwill
has been allocated to using the DCF model based on:
* The actual results of 2024 2025 workplan and the forecast results for the next 4 years.* The discount rate (9% WAAC) based on the company's cost of equity and cost of debt taking into account
the comprehensive risk factors.* The annual growth rate (1.5%) based on the management projections and market expectations.As of December 31 2024 the value in use of the cash generating units to which goodwill has been allocated to
exceeds its carrying amount.Change Currency
January 1 during the translation Balance at
2025 year adjustment June 30 2025
Book value 5074283 - (20503) 5053780
Impairment provision - - - -
Carrying amount 5074283 - (20503) 5053780
19. Deferred Tax Assets and Deferred Tax Liabilities
(1) Deferred tax assets without taking into consideration of the offsetting of balances within the same
tax jurisdiction
June 30 December 31
20252024
Deductible Deductible
temporary Deferred tax temporary Deferred tax
differences assets differences assets
Deferred tax assets
Deferred tax assets in respect of carry
forward losses 3205317 562523 3882406 572189
Deferred tax assets in respect of
inventories 2458627 685748 1717590 450346
Deferred tax assets in respect of
employee benefits 831926 125326 889110 143905
Other deferred tax asset 2463845 582690 2026968 545029
8959715195628785160741711469
144ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
19. Deferred Tax Assets and Deferred Tax Liabilities - (cont’d)
(2) Deferred tax liabilities without taking into consideration of the offsetting of balances within the
same tax jurisdiction
June 30 December 31
20252024
Taxable Taxable
temporary Deferred tax temporary Deferred tax
differences liabilities differences liabilities
Deferred tax liabilities
Deferred tax liabilities in respect of
fixed assets intangible assets and
right-of-use assets 4011883 689668 3982775 702896
40118836896683982775702896
(3) Deferred tax assets and deferred tax liabilities presented on a net basis after offsetting
June 30 December 31
20252024
The offset The offset
amount of Deferred tax amount of Deferred tax
deferred tax assets or deferred tax assets or
assets and liabilities assets and liabilities after
liabilities after offset liabilities offset
Presented as:
Deferred tax assets 438173 1518114 419815 1291654
Deferred tax liabilities 438173 251495 419815 283081
(4) Details of unrecognized deferred tax assets
June 30 December 31
20252024
Deductible temporary differences 770042 790191
Deductible losses carry forward 5389130 4875741
61591725665932
(5) Expiration of deductible tax losses carry forward for unrecognized deferred tax assets
June 30 December 31
20252024
202551975272
2026166393190008
20272085920920
2028215779215536
2029174091148322
After 2029 4806811 4295683
53891304875741
145ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
19. Deferred Tax Assets and Deferred Tax Liabilities - (cont'd)
(6) Unrecognized deferred tax liabilities
When calculating the deferred taxes taxes that would have applied in the event of realizing investments
in subsidiaries were not taken into account since it is the Company’s intention to hold these investments
and not realize them.
20. Other Non-Current Assets
June 30 December 31
20252024
Judicial deposits 146565 117624
Assets related to securitization 54591 60296
Advances in respect of non-current assets 30662 16296
Long term investments - 49837
Others 144271 76774
376089320827
21. Short-Term Loans
Short-term loans by category:
June 30 December 31
20252024
Unsecured loans 6588393 4748720
65883934748720
146ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements – (cont'd)
22. Derivative financial liabilities
June 30 December 31
20252024
Economic hedge 405235 268149
Accounting hedge derivatives 59932 10431
465167278580
23. Bills Payables
June 30 December 31
20252024
Post-dated checks payables 148570 202821
Note payables draft 356464 236674
505034439495
As at June 30 2025 none of the bills payable are overdue.
24. Accounts payable
June 30 December 31
20252024
Within 1 year (including 1 year) 5380609 4881335
1-2 years (including 2 years) 22084 14600
2-3 years (including 3 years) 9578 11061
Over 3 years 28568 27869
54408394934865
There are no significant accounts payables aging over one year.As at June 30 2025 the amount of the accounts payable included under the supplier financing
arrangements was 1331500 thousand RMB. Accounts payables under financing arrangements have
payment due dates ranging from 90 to 180 days from the invoice date. Comparable accounts payable
that are not part of supplier financing arrangements have similar payment terms.Under supplier finance arrangements participating suppliers may elect to receive early payment from
the financial institutions for invoices owed and the company makes a payment to the financial
institutions on the original invoice due date regardless of whether the supplier has elected to receive
early payment or not.
147ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
24. Accounts payable - (cont'd)
The company may provide guarantees to the financial institutions (as may be provided to suppliers
directly as well) but incurs no interest or other charges payable to the financial institutions on the
payments made.The balance of the accounts payable is not derecognized from the balance sheet because the original
liability is not substantially modified on entering the arrangements as it continues to carry the
characteristic of accounts payable and represent liabilities to pay for goods and services.The settlements to the financial institutions are included within operating cash flows because they
continue to be part of the normal operating cycle.Supplier financing arrangements have no impact on the company's liquidity risk.
25. Contract liabilities
June 30 December 31
20252024
Discount for customers 1282968 941955
Advances from customers 208137 868809
14911051810764
26. Employee Benefits Payable
June 30 December 31
20252024
Short-term employee benefits 495598 539144
Post-employment benefits 44119 53100
Share based payment (See note XIII) 6568 14191
Other benefits within one year 195075 185565
741360792000
Current maturities 53659 59784
795019851784
148ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
27. Taxes Payable
June 30 December 31
20252024
Corporate income tax 289236 276343
VAT 213920 212957
Others 31843 27461
534999516761
28. Other Payables
June 30 December 31
20252024
Dividends payables 750 750
Other payables 1732385 1416569
17331351417319
(1) Other payables
June 30 December 31
20252024
Accrued expenses 880201 692046
Liability in respect of securitization transactions 119807 21127
Hold-back payment due to acquistions 100000 131000
Payables in respect of intangible assets 68679 100350
Financial institutions - 6692
Others 563698 465354
17323851416569
29. Non-Current Liabilities Due Within One Year
Non-current liabilities due within one year by category are as follows:
June 30 December 31
20252024
Long-term loans due within one year 1281059 1493018
Debentures payable due within one year 467879 574562
Lease liabilities due within one year 161055 163133
19099932230713
149ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
30. Other Current Liabilities
June 30 December 31
20252024
Put options to holders of non-controlling interests 827795 488531
Provision in respect of returns 243235 284287
Provision in respect of claims 40676 11264
Others 422 374
1112128784456
31. Long-Term Loans
Long-term loans by category
June 30 December 31
2025 Interest range 2024 Interest range
Long term loans
Guaranteed loans 330971 2.75% - 2.95% 352017 3.20%-3.40%
Unsecured loans 2696513 2.25%-6.45% 3307626 1.73%-9.79%
Total Long term loans 3027484 3659643
Less:
Long term loans from banks due within 1 year (1281059) (1493018)
Long term loans net 1746425 2166625
* For more detailes regarding the guaranteed loans – see note X. related parties and related parties
transactions.For the maturity analysis see note VIII.C - Liquidity risk.
32. Debentures Payable
June 30 December 31
20252024
Debentures Series B 5614582 6894719
Current maturities (467879) (574562)
51467036320157
June 30
2025
First year (current maturities) 467879
Second year 467879
Third year 467879
Fourth year 467879
Fifth year and thereafter 3743066
5614582
150ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
32. Debentures Payable - (cont'd)
Movements of debentures payable:
For the Six months ended June 30 2025:
Balance at Amortization CPI and Repayment Currency Balance at
Maturity Face value Face value Issuance Maturity Issuance January 1 of discounts exchange during the translation June 30
period in RMB NIS date period amount 2025 or premium rate effect period adjustment 2025
Debentures November
Series B 2673640 1650000 4.12.2006 2020-2036 3043742 2890593 116 254443 (801247) (10511) 2333394
Debentures November
Series B 843846 513527 16.1.2012 2020-2036 842579 876223 4909 78039 (233450) (3239) 722482
Debentures November
Series B 995516 600000 7.1.2013 2020-2036 1120339 1077469 2134 95500 (286161) (3967) 884975
Debentures November
Series B 832778 533330 1.2.2015 2020-2036 1047439 1002056 (1294) 88752 (265423) (3680) 820411
Debentures November
Series B 418172 266665 1-6.2015 2020-2036 556941 539058 (3493) 47657 (142179) (1970) 439073
Debentures November
Series B 497989 246499 5.5.2020 2020-2036 692896 509320 (4104) 45067 (134177) (1859) 414247
6894719(1732)609458(1862637)(25226)5614582
Series B debentures in amount of NIS 3810 million par value (2958 million par value net of self-purchased) linked to the CPI and bear interest at the base annual rate of
5.15%. The debenture principal shall be repaid in 17 equal payments in the years 2020 through 2036.
On May 26 2025 ADAMA Solutions Board of Directors approved a buyback plan for the Company's debentures (Series B) in the amount of up to USD 300 million (RMB
2148 million). On May 29 2025 the Company purchased NIS 642448000 par value of Bonds for a total consideration of approximately USD 268 million (RMB 1927
million). The loss in respect of the debentures buyback was RMB 68 million and included in the financial expenses.
151ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
33. Lease liabilities
June 30 December 31
2025 Interest range 2024 Interest range
Lease liabilities 760463 1.0%-12.8% 773548 1.5%-15.4%
Less: Lease liabilities due within one year (161055) (163133)
Long term lease liabilities net 599408 610415
34. Long-Term Employee Benefits Payable
Post-employment benefit plans – defined benefit plan and early retirement
June 30 December 31
20252024
Total present value of obligation 474916 453398
Less: fair value of plan's assets (56703) (54186)
Net liability related to Post-employment benefits 418213 399212
Termination benefits 74190 78054
Total recognized liability for defined benefit plan net (1) 492403 477266
Other long-term employee benefits 102854 126373
Total long-term employee benefits net 595257 603639
Including: Long-term employee benefits payable due within one year (53659) (59784)
541598543855
(1) Movement in the net liability and assets in respect of defined benefit plans early retirement and
their components
Defined benefit
obligation and early Fair value of plan's
retirement assets Total
202520242025202420252024
Balance as at January 1 531452 593169 54186 59884 477266 533285
Expense/income recognized
in profit and loss:
Current service cost 8400 10685 - - 8400 10685
Past service cost (309) 1158 - - (309) 1158
Interest costs 10360 10624 1315 1286 9045 9338
Losses on curtailments and settlements 3374 8696 - - 3374 8696
Changes in exchange rates 32895 (15145) 4260 (2032) 28635 (13113)
Actuarial losses due to early retirement 1033 (105) - - 1033 (105)
Included in other comprehensive income:
Actuarial gain (losses) as a result of changes in
actuarial assumptions (1555) (10583) (302) (938) (1252) (9645)
Foreign currency translation differences in respect of
foreign operations (2324) 3082 (285) 340 (2040) 2742
Additional movements:
Benefits paid (34220) (54040) (3161) (7304) (31059) (46736)
Classification to termination - (206) - - - (206)
Contributions paid by the Group - - 690 412 (690) (412)
Balance as at June 30 549106 547335 56703 51648 492403 495687
152ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
34. Long-Term Employee Benefits Payable - (cont'd)
Post-employment benefit plans – defined benefit plan and early retirement - (cont'd)
(2) Actuarial assumptions and sensitivity analysis
The principal actuarial assumptions at the reporting date for defined benefit plan
June 30 December 31
20252024
Discount rate (%)* 1.8%-3.3% 1.8%-3.0%
* According to the demographic and the benefit components.The assumptions regarding the future mortality rate are based on published statistical data and acceptable
mortality rates.Possible reasonable changes as of the date of the report in the discount rate assuming the other assumptions
remain unchanged would have affected the defined benefit obligation as follows:
As of June 30 2025
Increase of 1% Decrease of 1%
Change in defined benefit obligation (33970) 39921
35. Provisions
June 30 December 31
20252024
Liabilities in respect of contingencies* 202400 164271
Provision in respect of site restoration 191109 147446
Other 2348 4773
395857316490
* Liabilities in respect of contingencies includes obligations of pending litigations where an outflow of
resources had been reliably estimated.
153ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
36. Other Non-Current Liabilities
June 30 December 31
20252024
Long term loans from related party* 2354749 2330911
Put options to holders of non- controlling interests - 292589
23547492623500
Current maturities - -
23547492623500
* For more detailes regarding the borrowing from related party – see note X. related parties and related
parties transactions.
37. Share Capital
Balance at Issuance of new Balance at
January 1 2025 shares Buyback of shares June 30 2025
Share capital 2329812 - - 2329812
38. Capital Reserve
Balance at Additions during Reductions during Balance at
January 1 2025 the period the period June 30 2025
Share premiums 12606562 - - 12606562
Other capital reserve 343902 - - 343902
12950464--12950464
154ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
39. Other Comprehensive Income net of tax
Attributable to shareholders of the company
Less:
Balance at transfer Less:
January 1 Before tax to profit Income tax Net-of-tax Balance at June
2025 amount or loss expenses amount 30 2025
Items that will not be
reclassified to profit or loss 116584 1252 - 273 979 117563
Re-measurement of changes
in liabilities under defined
benefit plans 87909 1252 - 273 979 88888
Changes in fair value of
other equity investment 28675 - - - - 28675
Items that may be
reclassified to profit or loss 1604444 28860 (32940) (8337) 70137 1674581
Effective portion of gain or
loss of cash flow hedge 23241 (89632) (32940) (8337) (48355) (25114)
Translation difference of
foreign financial statements 1581203 118492 - - 118492 1699695
172102830112(32940)(8064)711161792144
40. Surplus reserve
Additions Reductions
Balance at during the during the Balance at
January 1 2025 period period June 30 2025
Statutory surplus reserve 294796 - - 294796
Discretional surplus reserve 3814 - - 3814
298610--298610
41. Retained Earnings
20252024
Retained earnings as at January 1 1680382 4678091
Net loss for the period attributable to shareholders of the Company (80352) (894866)
Dividends to non-controlling Interest (74170) (34892)
Retained earnings as at June 30 1525860 3748333
155ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
42. Operating Income and Cost of Sales
Six months ended June 30 Six months ended June 30
20252024
Income Cost of sales Income Cost of sales
Principal activities 14991514 11019714 14887442 11465990
Other businesses 32686 10459 22847 8084
15024200110301731491028911474074
43. Taxes and Surcharges
Six months ended June 30
20252024
Tax on turnover 10953 13009
Others 46175 35349
5712848358
44. Selling and Distribution Expenses
Six months ended June 30
20252024
Salaries and related expense 912703 1013080
Depreciation and amortization 465967 507333
Advertising and sales promotion 132972 156657
Warehouse expenses 85581 76853
Registration 70147 65733
Travel expenses 67740 63152
Professional services 51287 56684
Insurance 39707 48859
Legal claims settlements - 207084
Others 149564 167941
19756682363376
156ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
45. General and Administrative Expenses
Six months ended June 30
20252024
Salaries and related expenses 238606 257344
Professional services 225996 68482
IT systems 76570 60008
Depreciation and amortization 71596 57725
Cost contribution arrangement 36281 31604
Office rent maintenance and expenses 17901 18822
Other 67917 42281
734867536266
46. Research and development expenses
Six months ended June 30
20252024
Salaries and related expenses 110779 122214
Depreciation and amortization 32164 31207
Materials 19589 10807
Field trial 13186 11155
Office rent maintenance and expenses 8839 7000
Professional services 8101 13149
Other 24135 22575
216793218107
47. Financial expenses (incomes) net
Six months ended June 30
20252024
Interest expenses on debentures and loans and other charges 522664 542663
Exchange rate differences net 230008 42455
CPI expenses in respect of debentures 117480 138427
Interest income from customers banks and others (101281) (130667)
Loss in respect of sale of trade receivables 87344 97379
Revaluation of put option net 43890 (190694)
Interest expense on lease liabilities 24084 20205
Interest expense in respect of post-employment benefits and early
retirement net 8992 10849
Others 91159 93030
1024340623647
157ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
48. Investment income net
Six months ended June 30
20252024
Income from long-term equity investments accounted for using
the equity method 5261 4418
52614418
49. Loss from Changes in Fair Value
Six months ended June 30
20252024
Loss from changes in fair value of derivative financial
Instruments (36189) (204837)
Others 29696 8345
(6493)(196492)
50. Credit impairment reversal (losses)
Six months ended June 30
20252024
Bills receivable and accounts receivable (93532) (17570)
Other receivables (147) 1894
(93679)(15676)
51. Asset impairment losses
Six months ended June 30
20252024
Inventories (26081) 8938
Construction in progress (101) (2995)
Intangible asset (1435) (65077)
(27617)(59134)
158ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
52. Gain from Disposal of Assets
Six months ended June 30 Included in
non-recurring
2025 2024 items
Gain from disposal of fixed assets 5160 18370 5160
Gain (loss) from disposal of intangible assets (106) (153) (106)
5054182175054
53. Income Tax Expenses (incomes)
Six months ended June 30
20252024
Current year 192126 160810
Deferred tax expenses (income) (245081) 148269
Adjustments for previous years net 7728 14357
(45227)323436
(1) Reconciliation between income tax expense and accounting profit is as follows:
Six months ended June 30
20252024
Loss before taxes (125579) (571430)
Statutory tax in china 25% 25%
Tax calculated according to statutory tax in china (31395) (142858)
Tax benefits from Approved Enterprises (19282) (16702)
Difference between measurement basis of income for financial
statement and for tax purposes (82453) 81121
Taxable income (loss) and temporary differences at other tax rate (197928) 55568
Taxes in respect of prior years 7728 14357
Utilization of tax losses prior years for which deferred taxes were
not created (14177) (7009)
Temporary differences and losses in the report year for which
deferred taxes were not created 180931 172664
Non-deductible expenses non-taxable income and other difference
net 48007 (17312)
Neutralization of tax calculated in respect of the Company’s share
in results of equity accounted investees (1744) (1474)
Effect of change in tax rate in respect of deferred taxes 12056 151281
Creation and reversal of deferred taxes for tax losses and temporary
differences from previous years 53030 33800
Income tax expenses (incomes) )45227( 323436
54. Other comprehensive income
Details of the Other comprehensive income are set out in Note V.39
159ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
55. Government grants
Amount recognized in the profit
and loss statements during the Six
months ended June 30
Category Presentation accounts 2025 2024
Government grants related to income Non-Operating income 5111 2299
Government grants related to assets Fixed assets Intangible assets 5334 6352
56. Notes to items in the cash flow statements
(1) Cash received relating to other operating activities
Six months ended June 30
20252024
Interest income 39574 56151
Government subsidies 12854 2299
Financial institutions - 83292
Others 22714 151086
75142292828
(2) Cash paid relating to other operating activities
Six months ended June 30
20252024
Derivatives transactions 402853 223110
Professional services 256694 149886
Advertising and sales promotion 141629 154594
IT and Communication 106662 105993
Commissions and Warehouse 99741 95631
Registration and Field trials 76972 79681
Financial institutions 71112 -
Travel 45237 51867
Insurance 35887 51790
Others 419429 479162
16562161391714
160ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
56. Notes to items in the cash flow statements - (cont'd)
(3) Cash paid relating to other investing activities
Six months ended June 30
20252024
Increase in short and long term investments 47825 107950
47825107950
(4) Cash received from other financing activities
Six months ended June 30
20252024
Borrowing from related party * 789364 355148
Proceeds in respect of hedging transactions on debentures 246992 403236
Deposit for issuing bills payables 46148 23267
1082504781651
* For more detailes regarding the borrowing from related party – see note X. related parties and related
parties transactions.
(5) Cash paid relating to other financing activities
Six months ended June 30
20252024
Payment in respect of hedging transactions on debentures 165934 145548
Deposit for issuing bills payable 181047 23634
Repayment of lease liability 93276 91643
Others - 460
440257261285
161ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
57. Supplementary Information on Cash Flow Statement
(1) Supplementary information on Cash Flow Statement
a. Reconciliation of net profit to cash flows from operating activities:
Six months ended June 30
20252024
Net loss (80352) (894866)
Add: Impairment provisions for assets 27617 59134
Credit impairment losses 93679 15676
Depreciation of fixed assets and investment property 520896 531833
Depreciation of right-of-use asset 94218 96938
Amortization of intangible asset 447594 471597
Gains on disposal of fixed assets intangible assets and other long-
term assets net (5054) (18217)
Losses from changes in fair value 6493 196492
Financial expenses 1214335 160503
Investment income net (5261) (4418)
Decrease (increase) in deferred tax assets net (226093) 153953
Decrease in deferred tax liabilities net (18988) (5684)
Decrease (increase) in inventories net (365063) 764477
Increase in operating receivables net (1431729) (881861)
Increase in operating payables net 1466286 1103531
Others - (17970)
Net cash flow provided by operating activities 1738578 1731118
b. Net Decrease in cash and cash equivalents
Six months ended June 30
20252024
Closing balance of cash and cash equivalents 3315685 3970880
Less: Opening balance of cash and cash equivalents 3583963 4857358
Decrease in cash and cash equivalents (268278) (886478)
162ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
57. Supplementary Information on Cash Flow Statement - (cont'd)
(2) Details of cash and cash equivalents
June 30 December 31
20252024
Cash on hand 1202 1317
Bank deposits available on demand without restrictions 3314483 3582646
33156853583963
58. Assets with Restricted Ownership or Right of Use
June 30
2025 Reason
Cash 181544 Pledged
Other non-current assets 146565 Guarantees
328109
163ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
59. Foreign currencies denominated items - (cont'd)
(1) Foreign currencies denominated items - (cont'd)
As at June 30 2025
RMB at the
Exchange end of the
Foreign currency at the end of the period rate period
Cash and bank balances
BRL 255456 1.312 335158
EUR 36126 8.397 303353
ILS 83856 2.123 178027
USD 16403 7.159 117427
PLN 31774 1.979 62881
ZAR 105972 0.402 42601
GBP 2852 9.816 27997
CAD 4268 5.238 22356
Other 183748
Total 1273548
Bills and Accounts receivable
BRL 791484 1.312 1038427
EUR 94216 8.397 791128
RON 211218 1.652 348932
CAD 55776 5.238 292157
HUF 9380834 0.021 196998
USD 25777 7.159 184528
GBP 11661 9.816 114460
CZK 257327 0.3388 87192
TRY 448049 0.180 80649
ILS 35576 2.123 75528
ZAR 181102 0.402 72803
Other 229364
Total 3512166
Other receivables
EUR 25339 8.397 212775
BRL 31886 1.312 41835
GBP 3028 9.816 29726
ILS 12479 2.123 26492
Other 4304
Total 315132
164ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
59. Foreign currencies denominated items - (cont'd)
(2) Foreign currencies denominated items - (cont'd)
As at June 30 2025
RMB at the
Exchange end of the
Foreign currency at the end of the period rate period
Other current assets
ILS 70585 2.123 149851
BRL 107341 1.312 140831
ARS 17561239 0.006 105367
EUR 8506 8.397 71421
UAH 126108 0.172 21691
PYG 18619519 0.001 18620
TRY 77830 0.180 14009
CAD 2651 5.238 13888
CZK 36954 0.339 12528
INR 144365 0.084 12127
Other 45914
Total 606247
Long-term receivables
BRL 261261 1.312 342775
Total 342775
Long-term investments loans
and other
BRL 229250 1.312 300776
Other 6314
Total 307090
Short-term loans
UAH 404875 0.172 69639
ARS 4851145 0.006 29106
Total 98745
Bills and Accounts payable
ILS 393207 2.123 834779
EUR 68263 8.397 573205
BRL 142588 1.312 187076
USD 14357 7.159 102781
Other 67069
Total 1764910
165ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
59. Foreign currencies denominated items - (cont'd)
(3) Foreign currencies denominated items - (cont'd)
As at June 30 2025
Foreign currency
at the end of the RMB at the end of
period Exchange rate the period
Other payables
ILS 138406 2.123 293835
CAD 13057 1.000 13057
Other 30702
Total 337594
Contract liabilities
EUR 57267 8.397 480872
CAD 43459 5.238 227636
BRL 66413 1.312 87134
TRY 114140 0.180 20545
Other 58329
Total 874516
Non-current liabilities due within one year
ILS CPI 244643 2.123 519378
EUR 1634 8.397 13723
Other 32844
Total 565945
Other current liabilities
EUR 8105 8.397 68057
Other 1905
Total 69962
Debentures payable
ILS CPI 2424260 2.123 5146703
Total 5146703
Provision and Long-term payables
BRL 148754 1.312 195165
ILS 57458 2.123 121983
EUR 426 8.397 3579
Total 320727
Lease liabilities
ILS CPI 30853 2.123 65501
EUR 5859 8.397 49194
ILS 7543 2.123 16014
Other 21104
Total 151813
Other non-current liabilities
CNH 2000000 0.998 1996820
Total 1996820
166ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
59. Foreign currencies denominated items - (cont'd)
(4) Major foreign operations
Registration &
Principal place of Functional
Name of the Subsidiary business Business nature currency
ADAMA France S.A.S France Distribution USD
ADAMA Brasil S/A Brazil Manufacturing; Distribution; USD
Registration
ADAMA Deutschland GmbH Germany Distribution; Registration USD
ADAMA India Private Ltd. India Manufacturing INR
Distribution; Registration
Makhteshim Agan of North United States Manufacturing; Distribution; USD
America Inc. Registration
Control Solutions Inc. United States Manufacturing; Distribution; USD
Registration
ADAMA Agan Ltd. Israel Manufacturing; Distribution; USD
Registration
ADAMA Makhteshim Ltd. Israel Manufacturing; Distribution; USD
Registration
ADAMA Australia Pty Australia Distribution AUD
Limited
ADAMA Italia SRL Italy Distribution USD
ADAMA Northern Netherlands Distribution USD
Europe B.V.Alligare LLC United States Manufacturing; Distribution; USD
Registration
The functional currency of the subsidiaries above is the main currency that represent the principal economic
environment.VI. Change in consolidation Scope
There is no change of consolidation scope during the period.
167ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
VII. Interest in Other Entities
1. Interests in subsidiaries
Composition of the largest subsidiaries of the Group in respect of assets and operating income
Registration & Method of
Principal place of obtaining the
Name of the Subsidiary business Business nature Direct Indirect subsidiary
ADAMA France S.A.S France Distribution 100% Established
ADAMA Brasil S/A Brazil Manufacturing; Distribution; 100% Purchased
Registration
ADAMA Deutschland GmbH Germany Distribution; Registration; 100% Established
ADAMA India Private Ltd. India Manufacturing; 100% Established
Distribution; Registration
Makhteshim Agan of North America United States Manufacturing; Distribution; 100% Established
Inc. Registration
Control Solutions Inc. United States Manufacturing; Distribution; 67% Purchased
Registration
ADAMA Agan Ltd. Israel Manufacturing; Distribution; 100% Restructure
Registration
ADAMA Makhteshim Ltd. Israel Manufacturing; Distribution; 100% Restructure
Registration
ADAMA Australia Pty Limited Australis Distribution 100% Purchased
ADAMA Italia SRL Italy Distribution 100% Established
ADAMA Northern Europe B.V. Netherlands Distribution 55% Purchased
Manufacturing; Distribution; Purchased
Alligare LLC United States 100%
Registration
Adama Anpon (Jiangsu) Ltd. China Manufacturing; Distribution 100% Purchased
Adama Huifeng (Jiangsu) Co. Ltd. China Manufacturing; Distribution 51% Purchased
2. Interests in joint ventures or associates
June 30 December 31
20252024
Joint venture 2035 1907
Associate 33921 28320
3595630227
3. Summarized financial information of joint ventures and associates
December 31 2024 and
June 30 2025 and six six months ended June
months then ended 302024
Joint venture:
Total carrying amount 2035 1907
The Group's share of the following items:
Net profit 137 334
Other comprehensive income (9) 10
Total comprehensive income 128 344
Associate:
Total carrying amount 33921 28320
The Group's share of the following items:
Net profit 5124 4084
Other comprehensive income 3802 (3912)
Total comprehensive income 8926 172
168ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
VIII. Risk Related to Financial Instruments
A. General
The Group has extensive international operations and therefore it is exposed to credit risks liquidity risks
and market risks (including currency risk interest risk and other price risk). In order to reduce the exposure to
these risks the Group uses financial derivatives instruments including forward transactions and options
(hereinafter - “derivatives”).Transactions in derivatives are undertaken with major financial institutions and therefore in the opinion of
Group Management the credit risk in respect thereof is low.This note provides information on the Group’s exposure to each of the above risks the Group’s objectives
policies and processes regarding the measurement and management of the risk. Additional quantitative
disclosure is included throughout the consolidated financial statements.The Board of Directors has overall responsibility for establishing and monitoring the framework of the Group's
risk management policy. The Finance Committee is responsible for establishing and monitoring the Group's
actual risk management policy. The Chief Financial Officer reports to the Finance Committee on a regular
basis regarding these risks.The Group’s risk management policy established to identify and analyze the risks facing the Group to set
appropriate risk limits and controls and to monitor risks and adherence to limits. The policy and methods for
managing the risks are reviewed regularly in order to reflect changes in market conditions and the Group's
activities. The Group through training and management standards and procedures aims to develop a
disciplined and constructive control environment in which all the employees understand their roles and
obligations.B. Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails
to meet its contractual obligations and derives mainly from trade receivables and other receivables as well as
from cash and deposits in financial institutions.Accounts and other receivables
The Group’s revenues are derived from a large number of widely dispersed customers in many countries.Customers include multi-national companies and manufacturing companies as well as distributors
agriculturists agents and agrochemical manufacturers who purchase the products either as finished goods or
as intermediate products for their own requirements.The Company entered into an agreement for the sale of trade receivables in a securitization transaction for
details see note V.5.e. and f.In June 2024 a two-years agreement with an international insurance company was renewed. The amount of
the insurance coverage was fixed at $150 million cumulative per year. The indemnification is limited to 90%
of the debt.The Group’s exposure to credit risk is influenced mainly by the personal characterization of each customer
and by the demographic characterization of the customer’s base including the risk of insolvency of the
industry and geographic region in which the customer operates.
169ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
VIII. Risk Related to Financial Instruments - (cont’d)
B. Credit risk - (cont’d)
The Company management has prescribed a credit policy whereby the Company performs current ongoing
credit evaluations of existing and new customers and every new customer is examined thoroughly regarding
the quality of his credit before offering him the Group’s customary shipping and payment terms. The
examination made by the Group includes an outside credit rating if any and in many cases receipt of
documents from an insurance company. A credit limit is prescribed for each customer outstanding amount of
the accounts receivable balance. These limits are examined annually. Customers that do not meet the Group’s
criteria for credit quality may do business with the Group on the basis of a prepayment or against furnishing
of appropriate collateral.Most of the Group’s customers have been doing business with it for many years. In monitoring customer credit
risk the customers were grouped according to a characterization of their credit based on geographical locationindustry aging of receivables maturity and existence of past financial difficulties. Customers defined as “highrisk” are classified to the restricted customer list and are supervised by management. In certain countries
mainly Brazil customers are required to provide property collaterals (such as agricultural lands and equipment)
against execution of the sales the value of which is examined on a current ongoing basis by the Company. In
these countries in a case of expected credit risk the Company records a provision for the amount of the debt
less the value of the collaterals provided and acts to realize the collaterals.The Group closely monitors the economic situation in Eastern Europe and in South America on an ongoing
basis.The Group recognizes an impairment provision which reflects its assessment regarding the credit risk of
account receivables Other receivables and investments on a lifetime expected credit loss basis. See also notes
Ⅲ.11 – Financial instruments Ⅲ.12 – Accounts receivables and Ⅲ.14 – Other receivables.Cash and deposits in banks
The Company holds cash and deposits in banks with a high credit rating. These banks are also required to
comply with capital adequacy or maintain a level of security based on different situations.Guarantees
The Company’s policy is to provide financial guarantees only to investee companies.Aging of receivables and expected credit risk
Presented below is the aging of the past due trade receivables:
June 30 2025
Past due by less than 90 days 776475
Past due by more than 90 days 598398
1374873
170ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
VIII. Risk Related to Financial Instruments - (cont’d)
B. Credit risk - (cont’d)
The company measure the provision for credit losses on a collective group basis where receivables share
similar credit risk characteristics based on geographical locations. The examination for expected credit losses
is performed using model including aging analysis and historical loss experiences and adjusted by the
observable factors reflecting current and expected future economic conditions.When credit risk on a receivable has increased significantly since initial recognition the group records specific
provision or general provision which is determined for groups of similar assets in countries in which there are
large number of customers with immaterial balances.The Group has credit risk exposures for accounts receivables amounted to RMB 7826757 thousand relate to
category of "Lifetime expected credit losses (credit losses has not occurred)" and amounted to RMB 734298
thousand related to category of "Lifetime expected credit losses (credit losses occurred)". The Group has a
provision for other receivables amounted to RMB 16758 thousand related to category of "Lifetime expected
credit losses (credit losses occurred)". The credit risk exposures for all remaining balance of financial assets
at amortised cost and financial assets at FVTOCI are related to "12-month expected credit losses".C. Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting its financial obligation when they
come due. The Group's approach to managing its liquidity risk is to assure to the extent possible an adequate
degree of liquidity for meeting its obligations timely under ordinary conditions and under pressure conditions
without sustaining unwanted losses or hurting its reputation.The cash-flow forecast is determined both at the level of the various entities as well as of the consolidated
level. The Company examines the current forecasts of its liquidity requirements in order to ascertain that there
is sufficient cash for the operating needs including the amounts required in order to comply with the financial
liabilities while taking strict care that at all times there will be unused credit frameworks so that the Company
will not exceed the credit frameworks granted to it and the financial covenants with which it is required to
comply with. These forecasts take into consideration matters such as the Company’s plans to use debt for
financing its activities compliance with required financial covenants compliance with certain liquidity ratios
and compliance with external requirements such as laws or regulation.The surplus cash held by the Group subsidiaries which is not required for financing the current ongoing
operations is invested in short-term interest-bearing investment channels.
171ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
VIII. Risk Related to Financial Instruments - (cont’d)
C. Liquidity risk - (cont’d)
(1) Presented below are the contractual maturities of the financial liabilities at undiscounted amounts
including estimated interest payments:
As at June 30 2025
Third- Fifth year Contractual Carrying
First year Second year Fourth year and above Cash flow amount
Non-derivative financial
liabilities
Short-term loans 6761198 - - - 6761198 6588393
Bills payables 505034 - - - 505034 505034
Accounts payables 5440839 - - - 5440839 5440839
Other payables 1733135 - - - 1733135 1733135
Other current liabilities 827795 - - - 827795 827795
Debentures payable 719260 719726 1367278 4506825 7313089 5614582
Long-term loans 1343555 845244 983861 - 3172660 3027484
Long-term payables 11645 25576 47462 179908 264591 186159
Lease Liabilities 207388 149112 177109 610558 1144167 760463
Other non-current liabilities 47122 2375193 - - 2422315 2354749
Derivative financial liabilities
Foreign currency derivatives 459545 - - - 459545 459545
CPI/shekel forward transactions 5622 - - - 5622 5622
180621384114851257571052972913004999027503800
D. Market risks
Market risk is the risk that changes in market prices such as foreign exchange rates CPI interest rates and
prices of capital instruments will affect the Group’s revenues or the value of its holdings in its financial
instruments. The objective of market risk management is to manage and monitor the exposure to market risks
within acceptable parameters while optimizing the return.During the ordinary course of business the Group purchases and sells derivatives and assumes financial
liabilities for the purpose of managing market risks.
(1) CPI and foreign currency risks
Currency risk
The Group is exposed to currency risk from its sales purchases expenses and loans denominated in currencies
that differ from the Group’s functional currency. The main exposure is in Euro Brazilian real USD and in
NIS. In addition there are smaller exposures to various currencies such as the British pound Polish zloty
Australian dollar Indian rupee Argentine peso Canadian dollar South African Rand Ukraine Hryunia the
Turkish lira and Chinese Yuan Renminbi.The Group uses foreign currency derivatives – forward transactions and currency options – in order to hedge
the cash flows risk which derive from existing monetary assets and liabilities and anticipated sales and
purchases which may be affected by exchange rate fluctuations.
172ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
VIII. Risk Related to Financial Instruments - (cont’d)
D. Market risks - (cont’d)
(1) CPI and foreign currency risks - (cont’d)
The Group hedged a part of the estimated currency exposure to anticipate sales and purchases for the
subsequent year. Likewise the Group hedges most of its monetary assets and liabilities denominated in a
non- U.S. dollar currency. The Group uses foreign currency derivatives to hedge its currency risk mostly with
maturity dates of less than one year from the reporting date.Solutions debentures are linked to the NIS-CPI and therefore an increase in the NIS-CPI as well as changes
in the NIS exchange rate could cause significant impact with respect to the subsidiary functional currency –
the U.S. dollar. As of the approval date of the financial statements the subsidiary had hedged most of its
exposure deriving from issuance of the debentures in options and forward contracts.
(A) The Group’s exposure to NIS-CPI and foreign currency risk is as follows:
June 30 2025
Total assets Total liabilities
In US Dollar 2881498 2149111
In Euro 1448437 1094028
In Brazilian real 2199802 371209
CPI-linked NIS 3293 5741855
In New Israeli Shekel 429898 1160571
Denominated in or linked to other foreign currency 2971908 2624806
993483613141580
(B) The exposure to CPI and foreign currency risk in respect of derivatives is as follows:
June 30 2025
Currency/ Currency/ Average USD RMB
linkage linkage expiration thousands thousands
receivable payable date Par value Par value Fair value
Forward foreign currency USD EUR 09/10/2025 161220 1154109 (57086)
Contracts and call options USD PLN 18/08/2025 2218 15878 (1583)
USD BRL 07/08/2025 270676 1937658 (88212)
USD GBP 16/07/2025 20629 147675 (4709)
USD ZAR 28/07/2025 12214 87432 (7334)
ILS USD 21/07/2025 912413 6531603 651051
USD OTHER 874920 6263204 (93724)
CPI forward contracts CPI ILS 11/11/2025 548636 3927464 (164)
173ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
VIII. Risk Related to Financial Instruments - (cont’d)
D. Market risks - (cont’d)
(1) CPI and foreign currency risks - (cont’d)
(C) Sensitivity analysis
The appreciation or depreciation of the Dollar against the following currencies as of December 31 2024
and the increase or decrease in the CPI would increase (decrease) the equity and profit or loss by the
amounts presented below. This analysis assumes that all the remaining variables among others interest
rates remains constant.June 30 2025
Decrease of 5% Increase of 5%
Equity Profit (loss) Equity Profit (loss)
New Israeli shekel 51230 32908 (14499) 1041
British pound 1917 1917 (1917) (1917)
Euro (35568) (1707) 28912 1707
Brazilian real 14905 14905 (22151) (22151)
Polish zloty (1799) (1799) 1713 1713
South African Rand 115 115 (586) (586)
Chinese Yuan Renminbi 124500 124500 (108753) (108753)
CPI-linked NIS 99466 99466 (99466) (99466)
(2) Interest rate risks
The Group has exposure to changes in the variable interest rate. The Group has different assets and
liabilities in different countries which bear interest according to the economic environment in each country.Most of the loans other than the debentures bear Dollar SOFR and Euro ESTER interest. As a result
most of the variable interest exposure of those loans is to the SOFR interest.The Company prepares a quarterly summary of exposure to a change in the SOFR interest rate. As at the
approval date of the financial statements the Company had not hedged this exposure.
174ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
VIII. Risk Related to Financial Instruments - (cont’d)
D. Market risks - (cont’d)
(2) Interest rate risks - (cont’d)
(A) Type of interest
The interest rate profile of the Group’s interest-bearing financial instruments was as follows:
June 30 2025
Fixed-rate instruments – unlinked to the CPI
Financial assets
Other non-current assets 1632
Financial liabilities
Long-term loans (1) 2365763
Long-term payables 25721
Other non-current liabilities 357930
(2747782)
Fixed-rate instruments – linked to the CPI
Financial liabilities
Debentures payable (1) 5614582
Variable-rate instruments
Financial assets
Cash at banks 590377
Financial assets at fair value through profit or loss 2047
Other current assets 138956
Financial liabilities
Short-term loans and credit from banks 6588393
Long-term loans (1) 661721
Long-term payables 138061
Other non-current liabilities 1996819
(8653614)
(1) Including current maturities.
(B) Sensitivity analysis of cash flows regarding variable-interest instruments
A change of 5% in the interest rates on the reporting date would increase or reduce equity and profit or loss
by the amounts presented below. This analysis assumes that all the remaining variables among others
exchange rates remained fixed.Profit or loss Equity
Increase in Decrease in Increase in Decrease in
interest interest interest interest
As at June 30 2025 2225 (2251) 2225 (2251)
175ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
IX. Fair Value
The fair value of forward contracts on foreign currency is based on their listed market price if available. In the
absence of market prices the fair value is estimated based on the discounted difference between the stated
forward price in the contract and the current forward price for the residual period until redemption using an
appropriate interest rate.The fair value of foreign currency options is based on bank quotes. The reasonableness of the quotes is evaluated
through discounting future cash flow estimates based on the conditions and duration to maturity of each contract
using the market interest rates of a similar instrument at the measurement date and in accordance with the Black
& Scholes model.
1. Financial instruments measured at fair value for disclosure purposes only
The carrying amount of certain financial assets and liabilities including cash at bank and on hand bills and
accounts receivable receivables financing other receivables short-term loans bills and accounts payable and
other payable are the same or proximate to their fair value.The following table details the carrying amount in the books and the fair value of groups of non-current financial
instruments presented in the financial statements not in accordance with their fair values:
June 30 2025
Carrying amount Fair value
Financial assets
Other non-current assets (a – Level 2) 16601 13394
Financial liabilities
Long-term loans and others (b – Level 2) 6330132 6145750
Debentures (c – Level 1) 5614582 5914985
a) The fair value of the other non-current assets is based on a discounted future cash flows using the acceptable
interest rate for similar investment having similar characteristics (Level 2).b) The fair value of the long-term loans and others is based on a discounted future cash flows using the acceptable
interest rate for similar loans having similar characteristics (Level 2).c) The fair value of the debentures is based on stock exchange quotes (Level 1).
2. The interest rates used in determining fair value
The interest rates used to discount the estimate of anticipated cash flows are:
June 30 2025
%
U.S. dollar interest 7.08-8.50
Chinese Yuan Renminbi 1.42-3.97
Euro 4.54-4.86
176ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
IX. Fair Value - (cont’d)
3. Fair value hierarchy of financial instruments measured at fair value
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The table below presents an analysis of financial
instruments measured at fair value. The various levels have been defined as follows:
? Level 1: quoted prices (unadjusted) in active market for identical instrument.? Level 2: inputs other than quoted prices included within Level 1 that are observable either directly or indirectly.? Level 3: inputs that are not based on observable market data (unobservable inputs).The Company’s forward contracts and options are carried at fair value and are evaluated by observable inputs
and therefore are concurrent with the definition of level 2.June 30
2025
Forward contracts and options used for hedging the cash flow (Level 2) (28756)
Forward contracts and options used for economic hedging (Level 2) 426995
Other equity investment (Level 2) 131169
Receivables financing (Level 2) 107640
Other non-current assets (Level 2) 54591
Other (Level 2) 2047
Financial Instrument Fair value
Fair value measured on the basis of discounting the difference between the
stated forward price in the contract and the current forward price for the
Forward contracts
residual period until redemption using an appropriate interest rates.Foreign currency options The fair value is measured based on the Black&Scholes model.No transfer between any levels of the fair value hierarchy in the reporting period.No change in the valuation techniques in the reporting period.
177ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
X. Related parties and related party transactions
1. Information on parent Company
Company Registered Registered capital Shareholding Percentage
name place Business nature (Thousand RMB) percentage of voting rights
Production and
sales of
agrochemicals
Syngenta Shanghai fertilizers and GM
Group China seeds 11158387 78.47% 78.47%
The Company’s ultimate controlling shareholder is Sinochem Holdings .
2. Information on the largest subsidiaries of the Company
For information about the subsidiaries of the Company refer to Note VII.1.
3. Information on largest joint ventures and associates of the Company
For information about the joint ventures and associates of the Company refer to Note V.12.Other joint ventures and associates that have related party transactions with the Group during this period or the
previous periods are as follows:
Name of entity Relationship with the Company
Innovaroma SA Joint venture of the Group
178ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
X. Related parties and related party transactions - (cont’d)
4. Information on other related parties
Name of other related parties Related party relationship
Agro Jangada Ltda Common control
Beijing Guangyuan Yinnong Chemical Co. LTD Common control
Bluestar (Beijing) Chemical Machinery Co. Ltd. Common control
Bluestar Engineering Co. Ltd. Common control
China National Chemical Information Center Co. Ltd. Common control
Dipagro LTDA Common control
Elkem Silicones Brasil Ltd. Common control
Hangzhou (Torch) Xidoumen Membrane Industry Co. LTD Common control
Huaxia Hanhua Chemical Equipment Co. LTD Common control
Jiangsu Huaihe Chemical Co. Ltd. Common control
Jiangsu Yangnong Chemical Co. Ltd. Common control
Liaocheng Luxi Polyol New Material Technology Co. Ltd. Common control
Sino MAP Common control
Ningxia Ruitai Technology Co. Ltd. Common control
P.T. Syngenta Indonesia Common control
Produtécnica Nordeste Comércio de Insumos Agrícolas Ltda. Common control
Qingdao Rubber Six Conveyor Belt Co.Ltd. Common control
Shenyang Sciencreat Chemicals Co. Ltd. Common control
Shenyang Shenhua Institute Testing Technology Co. Ltd. Common control
Sinochem (Hainan) Agroecology Co. Common control
Sinochem (Linyi) Crop Nutrition Co. Ltd Common control
Sinochem Agro Co. Ltd. Common control
Sinochem Fertilizer Company Limited and its branches Common control
Sinochem Hebei Co. Ltd. Common control
Sinochem Information Technology Co. Ltd. Common control
Sinochem International Crop Care (Overseas) Pte. Ltd. Common control
Sinochem Modern Agriculture (Hunan) Co. LTD Common control
Sinochem Modern Agriculture (Inner Mongolia) Co. LTD Common control
Sinochem Modern Agriculture (Xinjiang) Co. LTD Common control
Sinochem Modern Agriculture Anhui Co. LTD Common control
Sinochem Oil (Hainan) Co.Ltd. Common control
Sinochem Petrochemical Sales Co. Ltd. Common control
Sinochem Zhoushan Hazardous Chemicals Emergency Rescue Base Co. Common control
Ltd.Syngenta (Shanghai) Crop Protection Technology Company Limited Common control
179ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
X. Related parties and related party transactions - (cont’d)
4. Information on other related parties - (cont’d)
Name of other related parties Related party relationship
Syngenta Agro (Argentina) S.A. Common control
Syngenta Agro AG Common control
Syngenta Agro GmbH Common control
Syngenta Australia Pty Ltd Common control
Syngenta Canada Inc Common control
Syngenta Comercial Agricola Common control
Syngenta Crop Protection A/S Common control
Syngenta Crop Protection AG Common control
Syngenta Crop Protection Lda Common control
Syngenta Crop Protection LLC Common control
Syngenta Crop Protection Ltd. Common control
Syngenta Crop Protection SA Common control
Syngenta Czech s.r.o. Common control
Syngenta Espa?a S.A. Common control
Syngenta France SAS Common control
Syngenta Group Saturn (NL) B.V. Common control
Syngenta Hellas AEBE Common control
Syngenta India Ltd Common control
Syngenta Italia SpA Common control
Syngenta Korea Ltd Common control
Syngenta Nantong Crop Protection Co Ltd Common control
Syngenta Protecao de Cultivos Ltda Common control
Syngenta SA.. Common control
Syngenta Slovakia s.r.o. Common control
Syngenta Tarim Sanay ve Ticaret AS Common control
Syngenta Zambia Limited Common control
Taicang Zhonglan Environmental Protection Technology Service Co. Common control
LTD
China Bluestar Chengrand Research Institute Chemical Industry Common control
Youjia Crop Protection Co. Ltd. Common control
Youth Chemical Co. Ltd. Common control
Zhonglan International Chemical Co. Ltd. Common control
Zhonglan Lianhai Design & Research Institute Co. Ltd. Common control
Jiangsu Huifeng Biological Agriculture Co. Ltd Minority shareholder and its subsidiary
Nongyi Net (Yangling) e-commerce Co. Ltd. Minority shareholder and its subsidiary
Shanghai focus supply chain Co. Ltd Minority shareholder and its subsidiary
Shanghai nengjianyuan Biological Agriculture Co. Ltd Minority shareholder and its subsidiary
180ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
X. Related parties and related party transactions - (cont’d)
5. Transactions and balances with related parties
(1) Transactions with related parties
Six months ended
June 30
Type of purchase Related Party Relationship 2025 2024
Summary of purchase of goods/services:
Purchase of goods/services received Common control under
Sinochem Holdings 651803 675406
Minority shareholder and 14228 17564
its subsidiary
Purchase of fixed assets and other assets Common control under 49 -
Sinochem Holdings
Lease expenses Common control under - 284
Sinochem Holdings
Minority shareholder and 924 544
its subsidiary
Summary of Sales of goods:
Sale of goods/ Service rendered Common control under 554642 659835
Sinochem Holdings
Joint venture 49323 44550
Minority shareholder and
its subsidiary 8948 26159
Lease income Minority shareholder 544 588
(2) Guarantees
The Group as the guarantee receiver
Amount of Inception date Maturity date Guaranty
Guarantee provider guaranteed loan of guaranty of guaranty completed (Y / N)
Parent company 263000 21/04/2021 20/04/2028 N
67971 01/06/2021 31/05/2028 N
* During the reporting period the Company paid a guarantee fee amounting to 197 thousand RMB
(six months ended June 30 2024: 210 thousand RMB) to the parent company.
181ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
X. Related parties and related party transactions - (cont’d)
5. Transactions and balances with related parties - (cont'd)
(3) Remuneration of key management personnel and directors
Periods ended June 30
20252024
Remuneration of key management personnel and directors 16533 16195
(4) Receivables from and payables to related parties (including loans)
Receivable Items
June 30 December 31
20252024
Expected Expected
Related Party Book credit Book credit
Items Relationship Balance losses Balance losses
Trade receivables Common control under 240517 - 243093 -
Sinochem Holdings
Joint venture 22564 - 13198 -
Minority shareholder and 1492 - 8163 -
its subsidiary
Other Non-Current assets Common control under - - - -
Sinochem Holdings
Prepayments Common control under 1905 - 617 -
Sinochem Holdings
Minority shareholder and - - 547 -
its subsidiary
Payable Items
June 30 December 31
Items Related Party Relationship 2025 2024
Trade payables Common control under Sinochem 288429 235899
Holdings
Minority shareholder and its subsidiary 1245 256
Other payables Common control under Sinochem 70899 35450
Holdings
Minority shareholder and its subsidiary 1850 1641
Contractual liability Common control under Sinochem 17714 38676
Holdings
Short-term loans * Common control under Sinochem 3507713 2731591
Holdings
Other non-current Common control under Sinochem 2354749 2330911
liabilities * Holdings
* Include liabilities are loans from a related party the interest expenses for the Six months ended June 30
2025 is 134799 thousand RMB (six months ended June 30 2024: 117494 thousand RMB ).
182ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
X. Related parties and related party transactions - (cont’d)
5. Transactions and balances with related parties - (cont'd)
(4) Receivables from and payables to related parties (including loans) (cont'd)
On October 27 2021 the Board of Directors first approved (following the pre-approval of the Company’s
independent directors dated October 25 2021) the Company through one of its subsidiaries entering into
committed credit facilities agreements in the aggregate amount of $100 million (RMB 715 million) on
market terms with Syngenta Group or any of its subsidiaries. Following the approvals of the Company’s
requisite organs these facilities were amended and further increased in December 2022 and in April 2023
to an aggregate amount of $400 million (RMB 2863 million). As of June 30 2025 a total of $400 million
(RMB 2863 million) was utilized.On August 28 2023 the Board of Directors approved (following the pre-approval of the Company’s
independent directors dated August 22 2023) the Company through one of its subsidiaries entering into an
additional committed credit facility agreement in the amount of RMB 2000 million with Syngenta Group
or any of its subsidiaries. As of June 30 2025 a total of RMB 2000 million was utilized.On April 25 2024 the Board of Directors approved (following the pre-approval of the Company’s
independent directors dated April 24 2024) the Company through one of its subsidiaries entering into an
committed credit facility agreement (“the Previous Credit Facility”) in the amount of $200 million (RMB
1432 million) with one subsidiary of Syngenta Group.
On November 6 2024 the Board of Directors approved (following the pre-approval of the Company’s
independent directors dated November 5 2024) the Company to apply on top of the previous credit facitiliy
a new credit line with an estimated amount of no more than $200 million (RMB 1432 million) and to sign
a new facility agreement. As of June 30 2025 $140 million (RMB 1002 million) was utilized under this
agreement.
(5) Other related party transactions
The closing balance of bank deposit in Sinochem Finance Corporation was 680606 thousand RMB
(31.12.24: 627434) Interest income of bank deposit for the current period was 3197 thousand RMB (amount
for six months ended June 2024 was 3773 thousand RMB).The closing balance of a loan received from Sinochem Finance Corporation was 40000 thousand RMB
(31.12.24: 20000). Interest expenses in the current period was 398 thousand RMB (amount for six months
ended June 2024 was nil thousand RMB).
183ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XI. Commitments and contingencies
1. Significant commitments
June 30 December 31
20252024
Investment in Fixed assets 173636 195204
2. Commitments and Contingent Liabilities
On June 12 2024 the 3rd meeting of the 10th session of the Board of Directors of the Company approved the
engagement on the purchase of joint liability insurance policy for Directors Supervisors and Senior Executives
of the Company and its PRC subsidiaries by way of adding the Company to the Directors and Officers liability
insurance policy of Syngenta Group which shall provide shared coverage. On June 28 2024，the Company’s
2nd Interim Shareholders Meeting in 2024 approved the above engagement. The insurance period is from July
1 2024 to June 30 2025.
Based on the Shareholders meeting approval the Company's management renewed the Directors and Officers
liability insurance policy and the insurance period was extended to April 30 2026.Environmental protection
The manufacturing processes of the Company and the products it produces and market entail environmental
risks that impact the environment. The Company invests substantial resources in order to comply with the
applicable environmental laws and attempts to prevent or minimize the environmental risks that could occur as
a result of its activities. To the best of the Company’s knowledge at the balance sheet date there are no material
environmental issues relating to the Company there are no material administrative penalties or investigations
related to environment health and safety imposed or initiated by regulatory authorities and none of the material
permits and licenses regarding environmental issues required for the Company’s day to day operations have
been revoked.Claims against subsidiaries
In the ordinary course of business legal claims were filed against subsidiaries including claims for patent
infringement. The Company inter alia like other companies operating in the crop protection market is exposed
to class actions for large amounts which it must defend against while incurring considerable costs even if these
claims have no basis in the first place. In the opinion of the Company’s management which is based inter alia
on the opinions of its legal advisors regarding the prospects of the proceedings the financial statements include
adequate provisions where necessary to cover the exposure resulting from the claims.On October 20 2020 a claim and a motion for its approval as a class action (the “Motion”) was filed against
Monsanto Company and Bayer AG (the “Manufacturers”) as well as against ADAMA Agan Ltd. a wholly-
owned subsidiary of Solutions with respect to an herbicide bearing the brand name Roundup which is produced
by the Manufacturers and distributed in Israel in small quantities by Solutions’ subsidiary. The applicants argued
that the product allegedly poses a risk to users or those who have been exposed to it.On August 7 2025 the court rendered a first-instance judgment dismissing the Motion.Therefore and based on the opinion of Solutions’ external counsels as of the date of the financial statements
this proceeding is not expected to have any non-negligible effect on the Company’s financial results.As Solutions is an authorized distributor of the Manufactures the Manufacturers undertook to fully indemnify
defend and hold harmless ADAMA Agan Ltd. for any monetary compensation or any other remedy it will
have to make in connection with the Motion.
184ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XI. Commitments and contingencies - (cont’d)
2. Commitments and Contingent Liabilities - (cont’d)
Claims against subsidiaries (cont’d)
In June 2021 a lawsuit was filed against a subsidiary of the Company alleging two patents owned by a large
competitor of the Company have been infringed by such subsidiary. Among the claims the plaintiff seeks
preliminary and permanent injunctions to prevent the subsidiary from manufacturing using or commercializing
a product that allegedly infringes the plaintiff’s patents and seeks actual damages and profits loss. The said
preliminary injunctions were granted by the court in favor of the plaintiff. The subsidiary has filed appeals
against such preliminary injunctions which were rejected. Prior to such claims and on-going the subsidiary
filed several lawsuits against the said plaintiff seeking to declare the said patents are invalid and the subsidiary
does not infringe them. In May 2023 an additional lawsuit (including a preliminary injunction) was filed by the
same large competitor against said subsidiary alleging infringement of the same two patents for a different
product. The said preliminary injunction was rejected by the court and plaintiff’s appeals with respect thereto
are pending. All these lawsuits are pending as of the approval date of the financial statements. At this stage the
claims filed by the plaintiff are not expected to have a material effect on the Company.Various immaterial claims have been filed against Group companies in courts throughout the world in
immaterial amounts for causes of action primarily involving employee-employer relations and various civil
claims for which the Company did not record a provision in the financial statements. The claims that in the
estimation of Company’s management based on its legal advisors’ opinion have lower chances of succeeding
than being rejected amount to a negligible amount. Furthermore claims were filed against the Company for
product liability damages for which the Company has adequate insurance coverage such that the Company’s
exposure in respect thereof is limited to the deductible amount or the amount thereof does not exceed the
deductible amount.Performance commitments
When the Company acquired the equity interest in Adama Huifeng (shanghai) Agricultural Technology Co.Ltd (“Adama Huifeng (Shanghai)”) and Adama Hiufeng (Jiangsu) Co. Ltd.(“Adama Huifeng (Jiangsu)") fromJiangsu Huifeng Biological Agriculture Co. Ltd (“Jiangsu Huifeng”) during 2020 and 2021 there were
performance commitments made by Jiangsu Huifeng regarding specific business operations of the acquired
subsidiaries. If the performance commitments is not met Jiangsu Huifeng shall make a price adjustment
payment calculated based on a method as agreed. By the end of 2023 when the commitment period ended the
performance commitments has not been fulfilled. There were disputes between the Company and Jiangsu
Huifeng regarding the price adjustment payment and the arbitration application filed by the Company as the
Applicant to the Shanghai International Economic and Trade Arbitration Commission against Jiangsu Huifeng
as the claimant was accepted in May 2024. The arbitration case was heard by the arbitration tribunal in
September 2024.On April 1 2025 Shanghai International Economic and Trade Arbitration Commission rendered an award in
respect of the arbitration according to which Jiangsu Huifeng shall pay the Company the price adjustment
payment of RMB45000000 yuan the damage compensation for failure to pay the price adjustment amount on
time and a certain proportion of fees for the attorney and the arbitration as well as other expenses incurred by
the Company for initiating the case.On June 30 2025 the Company signed an agreement with Jiangsu Huifeng stipulating that the mutual payments
determined by the arbitral tribunal in this case and the case of payment for equity transfer between the Company
and Jiangsu Huifeng shall be offset against each other. According to the above agreement after calculation
185ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XI. Commitments and contingencies - (cont’d)
2. Commitments and Contingent Liabilities - (cont’d)
Performance commitments - (cont’d)
Jiangsu Huifeng shall pay the offset balance to the Company. On July 9 2025 Jiangsu Huifeng has paid the
balance of RMB 34669 to the Company. The above arbitration award has been fully performed.XII. Events subsequent to the balance sheet date
In August 2025 the court in a first-instance judgment dismissed the motion to approve the class action filed
against the Company and other parties in connection with the Roundup product for additional information see
note XI. Commitments and Contingent Liabilities.XIII. Share-based Payments
1. In February 2019 the remuneration committee and Solutions Board of Directors (as well as the General
Meeting with respect to theformer CEO and Vice President who also serves as a director) approved the
allocation of 77864910 phantom warrants to officers and employees in accordance with the long-term
phantom compensation plan (hereinafter - "the 2019 Plan") out of which 75814897 phantom warrants were
granted at the grant date of February 21 2019. During 2019 1206081 additional Phantom warrants were
granted.The warrants will vest in four equal portions where the first and second quarters are exercisable after two
years the third quarter after three years and the fourth quarter after four years from January 1 2019. The
warrants will be exercisable in whole or in part in accordance with the terms of the 2019 plan and subject to
achieving financial targets as determined in the plan. The warrants will be exercisable until the end of 2025.Upon exercise of each warrant the offeree will be entitled to receive cash payment equal to the difference
between the base price as determined at the time of the grant and the closing price of one share of the Company
on the Shenzhen Stock Exchange as it will be on the exercise date up to the ceiling that was determined under
the plan.The fair value of the granted warrants as aforesaid was estimated using the binomial pricing model.The cost of the benefit embodied in the warrants that were allocated as aforesaid based on the fair value at the
grant date amounted to a total of approximately 186 million RMB. The liability at the end of the reporting
period was recorded according to the vesting period as determined in the plan taking into account the extent
of the service that the employees provided until that date and the Company’s share price at the end of the
reporting period.Statement of share based payments in the period Phantom warrants
Total number of Phantom warrants at the beginning of the period 20290025
Total number of Phantom warrants granted in current period -
Total number of Phantom warrants exercised in current period -
Total number of Phantom warrants forfeited in current period (8090591)
Total number of Phantom warrants at the end of the period 12199434
The exercise prices and the remainder of the contractual period for Phantom RMB 9.87 – 10.85
warrants outstanding at the end of period 0.5 year
186ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XIII. Share-based Payments - (cont’d)
1. (cont’d)
The parameters used in implementing the model at the grant date are as follows:
Stock price (RMB) 10.85
Exercise increment (RMB) 10.03/10.85
Expected volatility 43.97%
Risk-free interest rate 3.06%
Economic value as of February 21 2019 (in thousands RMB) 186206
The methods for the determination of the fair value of liabilities arising from
cash-settled share-based payments The binomial pricing model
Accumulated amount of liabilities arising from cash-settled share-based
payments (in thousands RMB) 3222
Expenses arising from cash-settled share-based payments in current period
(in thousands RMB) (6284)
2. In September 2019 the remuneration committee and Solutions Board of Directors (and the General Meeting
with respect to the CEO and Vice President who also serves as a director) approved the cancellation of 2017
Plan against the allocation of 28258248 warrants in accordance with the long-term phantom compensation
plan (hereinafter - "The Alternative Warrants" and "The Alternative Plan"). The cancellation and allocation
date is September 26 2019. During 2019 an additional 90130 Alternative Phantom Warrants were granted.The alternative warrants will vest in four equal portions where the first quarter is exercisable after one year
the second quarter after two years the third quarter after three years and the fourth quarter after four years
from October 1 2019. The warrants will be exercisable in whole or in part in accordance with the terms of
the Alternative Plan and subject to achieving financial targets as determined in the plan. The warrants will be
exercisable until October 1 2026.Upon exercise of each warrant the offeree will be entitled to receive cash payment equal to the difference
between the base price as determined at the time of the grant and the closing price of one share of the parent
company on the Shenzhen Stock Exchange as it will be on the exercise date up to the ceiling that was
determined under the plan.The fair value of the total granted alternative warrants at the allocated date is equal to the fair value of the total
warrants canceled from the 2017 plan.The cost of the benefit embodied in the warrants that were allocated as aforesaid based on the fair value at the
cancellation and allocation date amounted to a total of approximately 69 million RMB. The liability in the
financial statements at the end of the reporting period was recorded at the fair value estimated using the
binomial option pricing model and by the vesting period from the original grant date of the 2017 plan to the
end of the service period determined by the alternative plan taking into account the extent of the service that
the employees provided until that date and the stock price at the reporting date.
187ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XIII. Share-based Payments - (cont’d)
2. (cont’d)
Statement of share based payments in the period
Phantom warrants
Changes in the number of 2017 Plan:
Total number of Phantom warrants at the beginning of the period 7404561
Total number of Phantom warrants granted in current period -
Total number of Phantom warrants exercised in current period -
Total number of Phantom warrants forfeited in current period (3056231)
Total number of Phantom warrants at the end of the period 4348330
The range of the exercise prices and the remainder of the contractual period RMB 9.37 – 9.43
for Phantom warrants outstanding at the end of period 1.25 years
The parameters used in implementing the model at the grant date are as follows:
Stock price (RMB) 9.23
Exercise increment (RMB) 9.43
Expected volatility 40.29%
Risk-free interest rate 3.14%
Economic value as of September 26 2019 (in thousands RMB) 68836
The methods for the determination of the fair value of liabilities arising from
cash-settled share-based payments related to the alternative plan The binomial pricing model
Accumulated amount of liabilities arising from cash-settled share-based
payments related to the alternative plan (in thousands RMB) 3346
Expenses (income) arising from cash-settled share-based payments in
current period related to the alternative plan (in thousands RMB) (1294)
188ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XIV. Other significant items
1. Segment reporting
The Company presents its segment reporting based on a format that is based on a breakdown by business
segments:
* Crop Protection (Agro)
This is the main area of the Company’s operations and includes the manufacture and marketing of
conventional agrochemical products.* Intermediates and ingredients
This field of activity includes a large number of sub-fields including: Lycopan (an oxidization retardant)
aromatic products and other chemicals. It combines all the Company’s activities not included in the Crop
Protection products segment.Segment results reported to the chief operating decision maker include items directly attributable to a segment
as well as items that can be allocated on a reasonable basis. Unallocated items comprise mainly financing
expenses net gains from changes in fair value investment income and tax expenses.All assets and liabilities that can be attributed to a specific segment were allocated accordingly. Attributed
assets include: accounts and bills receivables receivables financing inventory fixed assets right-of-use assets
construction in progress intangible assets goodwill non-current trade receivables and long-term equity
investments. Attributed liabilities include account payables bill payablesand lease liabilities. All other assets
and liabilities which are not attributable to a specific segment are presented as unallocated assets and liabilities.
189ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XIV. Other significant items - (cont'd)
1. Segment reporting - (cont’d)
Information regarding the results and assets and liabilities of each reportable segment is included below:
Crop Protection Intermediates and ingredients Elimination among segments Total
Six months ended Six months ended Six months ended Six months ended
June 30 June 30 June 30 June 30
20252024202520242025202420252024
Operating income from external
customers 13656589 13534044 1367611 1376245 - - 15024200 14910289
Inter-segment operating income - - 962 829 (962) (829) - -
Interest in the profit or loss of
associates and joint ventures - - 5261 4418 - - 5261 4418
Segment's results 776250 178932 129004 69777 - - 905254 248709
Financial expenses 1024340 623647
Loss from changes in fair value (6493) (196492)
Loss before tax (125579) (571430)
Income tax expenses (45227) 323436
Net Loss (80352) (894866)
Crop Protection Intermediates and ingredients Unallocated assets and liabilities Total
June 30 December 31 June 30 December 31 June 30 December 31 June 30 December 31
20252024202520242025202420252024
Total assets 40363032 40394519 2255639 2371148 8084579 7294110 50703250 50059777
Total liabilities 7655263 6878372 225526 291201 23917417 23899110 31798206 31068683
190ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XIV. Other significant items - (cont'd)
1. Segment reporting - (cont’d)
Geographic information
The following tables sets out information about the geographical segments of the Group’s operating income
based on the location of customers (sales target) and the Group's non-current assets (including mainly fixed
assets right-of-use assets construction in progress investment properties intangible assets and goodwill). In
the case of investment property fixed assets right of used assets and construction in progress the geographical
location of the assets is based on its physical location. In case of intangible assets and goodwill the
geographical location of the company which owns the assets.Operating income from external
customers
Six months ended June 30
20252024
Europe Africa and Middle East 4811339 4935526
North America 3554544 2941766
Latin America 2609695 2841344
Asia Pacific 4048622 4191653
1502420014910289
Specified non-current assets
June 30 December 31
20252024
Europe Africa and Middle East 13972022 14249233
North America 1246981 1252352
Latin America 1755456 1730472
Asia Pacific 4819909 5044172
2179436822276229
? As of 2025 South Africa is included in the Europe Africa and Middle East region . The information for 2024 was re-
classified accordingly.
2. The dependency on major customers
No single customer's proportion of the total amount of sales is over 10%.
191ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XIV. Other significant items - (cont'd)
3. Calculation of losses per share and Diluted earnings per share
Amount for the Amount for the
current period prior period
Net loss from continuing operations attributable to ordinary
shareholders (80352) (894866)
Amount for the Amount for the
Shares current period prior period
Number of ordinary shares outstanding at the beginning of the
year 2329811766 2329811766
Add: weighted average number of ordinary shares issued during
the year - -
Less: weighted average number of ordinary shares repurchased
during the year - -
Weighted average number of ordinary shares outstanding at the
end of the year 2329811766 2329811766
Amount for Amount for
the current the prior
period period
Calculated based on net loss attributable to ordinary shareholders
Basic losses per share (0.03) (0.38)
Diluted losses per share N/A N/A
Calculated based on net loss from continuing operations attributable
to ordinary shareholders:
Basic losses per share (0.03) (0.38)
Diluted losses per share N/A N/A
Calculated based on net loss from discontinued operations
attributable to ordinary shareholders:
Basic losses per share N/A N/A
Diluted losses per share N/A N/A
192ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XV. Notes to major items in the Company's financial statements
1. Cash at bank and on hand
June 30 December 31
20252024
Deposits in banks 65500 39173
Other cash and bank balances 14246 1858
7974641031
As at June 30 2025 restricted cash and bank balances was 14246 thousand RMB (as at December 31 2024:
1858 thousand RMB).
2. Accounts receivable
a. By category
June 30 2025
Provision for expected
Book value credit losses
Carrying
Amount Percentage (%) Amount Percentage (%) amount
Account receivables assessed
individually for impairment 36039 2 14977 42 21062
Account receivables assessed
collectively for impairment 1434151 98 - - 1434151
14701901001497711455213
December 31 2024
Provision for expected credit
Book value losses
Carrying
Amount Percentage (%) Amount Percentage (%) amount
Account receivables assessed
individually for impairment 13893 1 13893 100 -
Account receivables assessed
collectively for impairment 1182104 99 - - 1182104
11959971001389311182104
b. Aging analysis
June 30 2025
Within 1 year (inclusive) 1133095
Over 1 year but within 2 years 323202
Over 2 years but within 3 years -
Over 3 years but within 4 years -
Over 4 years but within 5 years 15
Over 5 years 13878
1470190
193ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XV. Notes to major items in the Company's financial statements - (cont'd)
2. Accounts receivable - (cont'd)
c. Addition written-back and written-off of provision for expected credit losses during the period
Six months ended June 30 2025
Balance as of January 1 13893
Addition during the period net 1084
Balance as of June 30 14977
d. Five largest accounts receivable at June 30 2025:
Proportion of Allowance of
Accounts expected
Name Closing balance receivable (%) credit losses
Party 1* 1366711 93 -
Party 2 22146 2 1084
Party 3 18254 1 -
Party 4 8157 1 -
Party 5 5041 - -
1420309971084
* Include intergroup balance with ADAMA Solutions.
3. Receivable financing
June 30 December 31
20252024
Bank acceptance draft 8003 34350
800334350
As at June 30 2025 bank acceptance endorsed but not yet due amounts to 351800 thousand RMB.
4. Other Receivables
June 30 December 31
20252024
Other receivables 29374 24393
2937424393
194ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XV. Notes to major items in the Company's financial statements - (cont'd)
4. Other Receivables - (cont'd)
(1) Other receivables
a. Other receivables by categories
June 30 December 31
20252024
Other 34750 29769
Provision for expected credit losses (5376) (5376)
2937424393
b. Other receivables by aging
June 30 2025
Within 1 year (inclusive) 17763
Over 1 year but within 2 years -
Over 2 years but within 3 years 113
Over 3 years but within 4 years 91
Over 4 years but within 5 years* 11830
Over 5 years 4953
34750
* Include intergroup balance with Anpon
c. Additions recovery or reversal and written-off of provision for expected credit losses during the
period:
Six months ended June 30 2025
Balance as of January 1 2025 5376
Addition during the period -
Balance as of June 30 2025 5376
d. Five largest other receivables at June 30 2025:
Proportion of other
Name Closing balance receivables (%) Credit loss provision
Party 1* 29340 84 -
Party 2 3125 9 3125
Party 3 548 2 548
Party 4 237 1 237
Pa rty 5 221 1 221
33471974131
* Include intergroup balance with Anpon
195ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XV. Notes to major items in the Company's financial statements - (cont'd)
5. Long-term equity investments
June 30 2025 December 31 2024
Impairment Impairment
Amount balance loss Book value Amount balance loss Book value
Invest in
subsidiaries 17511352 80636 17430716 17511352 80636 17430716
175113528063617430716175113528063617430716
Investments in subsidiaries
Provision of Balance of
Opening impairment Closing Impairment
Invested unit balance Increase Decrease loss balance loss
ADAMA Agricultural Solutions Ltd. 15890213 - - - 15890213 -
Adama Anpon (Jiangsu) Ltd. 450449 - - - 450449 -
ADAMA Hiufeng (Jiangsu) Co. Ltd. 789116 - - - 789116 (59024)
Hubei Sanonda Foreign Trade Co.Ltd. 11993 - - - 11993 -
Adama Huifeng (shanghai)
Agricultural Technology Co. Ltd 288945 - - - 288945 (21612)
17430716---17430716(80636)
6. Operating Income and operating costs
Six months ended June 30 2025 Six months ended June 30 2024
Operating Operating
Revenue costs Revenue costs
Main operations 1068970 870381 958749 823699
Other operations 25602 9594 22843 8082
1094572879975981592831781
196ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XV. Notes to major items in the Company's financial statements - (cont'd)
7. Notes to items in the cash flow statements
(1) Other cash received relevant to operating activities
Six months ended Six months ended
June 30 2025 June 30 2024
Interest income 216 1292
Government subsidies 4201 1588
Other 10907 9684
1532412564
(2) Other cash paid relevant to operating activities
Six months ended Six months ended
June 30 2025 June 30 2024
Professional services 11037 8683
Other 12890 11616
2392720299
(3) Other cash received relevant to investing activities
Six months ended Six months ended
June 30 2025 June 30 2024
Loans - 125000
Other 803 2600
803127600
(4) Other cash received relevant to financing activities
Six months ended Six months ended
June 30 2025 June 30 2024
Deposit for issuing bills payables 1858 6460
18586460
197ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XV. Notes to major items in the Company's financial statements - (cont'd)
7. Notes to items in the cash flow statements
(5) Other cash paid relevant to financing activities:
Six months ended Six months ended
June 30 2025 June 30 2024
Deposit for issuing bills payable 14246 3424
Other - 460
142463884
8. Supplementary information to cash flow statement
(1) Reconciliation of net profit to net cash flows generated from operating activities:
Six months ended June 30
20252024
Net profit (loss) 130151 (12812)
Add: Asset Impairment reversal (losses) 3362 3565
Credit impairment reversal (losses) 1084 2
Depreciation of fixed assets and investment property 98116 118953
Depreciation of-right-of use assets 395 787
Amortization of intangible assets 6067 6058
Gain (losses) on disposal of fixed assets intangible assets and other
long-term assets (3587) 39
Losses (gains) from changes in fair value (30714) 30870
Financial expenses 13298 5180
Investment income (32445) -
Decrease in deferred income tax assets 21449 51414
Decrease (increase) in inventory 43633 ) 16667(
Decrease (increase) in accounts receivable from operating activities (212970) 112480
Increase in payables from operating activities 148263 4048
Net cash flows generated from operating activities 186102 303917
(2) Net increase in cash and cash equivalents
Six months ended June 30
20252024
Closing balance of cash 65500 69085
Less: Opening balance of cash 39173 157186
Net increase in cash and cash equivalents 26327 (88101)
198ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XV. Notes to major items in the Company's financial statements - (cont'd)
9. Related parties and related parties transactions
(1) Information on parent Company
Registered
capital
Company Registered (Thousand Shareholding Percentage
name place Business nature RMB) percentage of voting rights
Production and sales
of agrochemicals
Syngenta Shanghai fertilizers and GM
Group China seeds 11158387 78.47% 78.47%
The ultimate controlling shareholder is Sinochem Holdings .
(2) Information on the subsidiaries of the Company
For information about the subsidiaries of the Company refer to Note VII.1.
(3) Transactions with related parties
a. Transactions of goods and services
Six months ended June 30
20252024
Summary of Purchase of goods/services Related Party Relationship
received:
Purchase of goods/services received Common control
under Sinochem
Holdings 37764 35789
Subsidiary 45789 42440
Summary of Sales of goods:
Sale of goods Common control under
Sinochem Holdings 347 226
Subsidiary 645933 555090
199ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XV. Notes to major items in the Company's financial statements - (cont'd)
9. Transactions and balances with related parties - (cont'd)
(3) Transactions with related parties - (cont'd)
b. Guarantees
The Company as the guarantor
Amount of Inception Maturity Guaranty
guaranteed date of date of completed
loan guaranty guaranty (Y/ N)
Subsidiary 1000 2022.01.01 2025.11.28 N
21000 2022.02.28 2027.11.28 N
14000 2022.02.28 2027.11.28 N
7500 2022.05.20 2027.11.28 N
23500 2022.06.26 2027.11.28 N
10000 2022.10.31 2027.11.28 N
11000 2022.11.30 2027.11.28 N
30000 2024.12.09 2025.12.08 N
7000 2023.01.12 2025.06.20 N
12000 2023.04.03 2025.06.20 N
3000 2024.07.28 2027.11.10 N
5000 2023.10.17 2027.11.10 N
50000 2024.04.10 2027.04.26 N
30000 2025.03.25 2028.03.24 N
1900 2022.02.28 2026.09.28 N
8100 2022.07.12 2026.09.28 N
2000 2023.04.13 2026.09.28 N
3000 2024.02.05 2026.09.29 N
7000 2022.08.11 2028.06.22 N
10000 2022.08.31 2028.06.22 N
11000 2022.10.28 2027.06.22 N
25000 2022.11.23 2026.12.22 N
10000 2023.01.16 2026.06.22 N
14000 2023.04.04 2026.06.22 N
4000 2024.02.07 2026.06.23 N
1500 2023.04.26 2028.05.05 N
8500 2024.01.30 2028.05.05 N
200ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XV. Notes to major items in the Company's financial statements - (cont'd)
9. Transactions and balances with related parties - (cont'd)
(3) Transactions with related parties - (cont'd)
b. Guarantees - (cont'd)
The Company as the guarantee receiver
Amount of Inception date Maturity date Guaranty
Guarantee provider guaranteed loan of guaranty of guaranty completed (Y / N)
Parent company 263000 21/04/2021 20/04/2028 N
Parent company 67971 01/06/2021 31/05/2028 N
During the reporting period the Company paid a guarantee fee amounting to 197 thousand RMB
(2024.1-6: 210) to the parent company.
c. Receivables from and payables to related parties (including loans)
Receivable Items
June 30 December 31
20252024
Expected Expected
Related Party Book credit Book credit
Items Relationship Balance losses Balance losses
Trade receivables Subsidiary 1372458 - 1102274 -
Non-current
assets within one
year Subsidiary 70000 - 70000 -
Other receivables Subsidiary 29340 - 24393 -
Prepayments Common control under
Sinochem Holding 1830 - 617 -
201ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XV. Notes to major items in the Company's financial statements - (cont'd)
9. Transactions and balances with related parties - (cont'd)
(3) Transactions with related parties - (cont'd)
c. Receivables from and payables to related parties (including loans) - (cont'd)
Payable Items
June 30 December 31
Items Related Party Relationship 2025 2024
Trade payables Subsidiary 15 10
Trade payables Common control under Sinochem
Holdings 5301 4023
Other payables Subsidiary 571838 525071
Common control under Sinochem
Holdings 752 522
d. Other related party transactions
The closing balance of bank deposit in SinoChem Finance Corporation was 52675 thousand
RMB (31.12.24: 28470 thousand RMB) Interest income of bank deposit for the current period
was 157 thousand RMB (amount for six months ended June 2024 was 1181 thousand RMB).
202ADAMA Ltd. Semi-Annual Report 2025
Supplementary information
(Expressed in RMB '000)
1. Extraordinary Gain and Loss
Six months ended
June 30 2025
Disposal of non-current assets 5054
Government grants recognized through profit or loss 5111
Changes in fair value of financial assets and liabilities held for trading 30714
Recovery or reversal of expected credit losses which is assessed individually during
the years 38147
Post vesting fair value revaluation of cash-settled share based payment 7578
Other non-operating income or expenses other than the above 1820
Tax effect (19019)
69405
2. Return on net assets and earnings per share (“EPS”)
The information of Return on net assets and EPS is in accordance with the Preparation Rules for
Information Disclosure by Companies Offering Securities to the Public No. 9 – Calculation and
Disclosure of Return on net assets and Earnings per share (2010 Amendment) issued by China Securities
Regulatory Commission.Weighted average
rate of return on net Basic EPS Diluted EPS
Profit during the reporting period assets (RMB/share) (RMB/share)
Net loss attributable to ordinary
shareholders of the Company (0.42%) (0.03) N/A
Net loss after deduction of extraordinary
gains/losses attributable to ordinary
shareholders of the Company (0.79%) (0.06) N/A
203ADAMA Ltd. Semi-Annual Report 2025
Section VIIII – Other Reported Data
I. Other Major Social Security Issues
Whether the listed company and its subsidiaries have any other significant social security issues
□ Yes √ No
Administrative punishment during the reporting period
□ Yes √ No
II. Information regarding communication with investors during the Reporting Period
√ Applicable □ Not applicable
Reception Type of
Date Place Name of the Visitor About Index
Mode Visitor
March Online Live Institutional The live webcast was Introduction on 2024 Q4 Record of the
18th 2025 Platform webcast at and accessible for all and FY performance as Communications
online individual investors. well as the Fight Forward between the
Platform Investors plan of the Company. The Company and the
corresponding Investors (No. 2025-
presentations was 01) was published
published on the website by the Company on
of the Company (IR page March 19th 2025 at
on www.adama.com). www.cninfo.com.cn.March Beijing Field Institutional China Galaxy Business overview Record of the
26th 2025 Office Research Investors Securities Chengtong progress of the ongoing Communications
Securities GF Fight Forward plan of the between the
Securities Sinolink Company as well as 2024 Company and the
Securities Shenwan Q4 and FY performance. Investors (No. 2025-
Hongyuan Securities The corresponding 02) was published
Huafu Securities presentations was by the Company on
Beijing Hongxin Capital published on the website May 26th 2025 at
CUFE Rising Union of the Company (IR page www.cninfo.com.cn.Guoze Fund Great Wall on www.adama.com).Asset Management
Xiefeng Private Equity
Fund Beijing Sanhe
Hongxin Investment
Management Shaanxi
Science and Technology
Venture Capital
Management Shengshi
International
Investment Jintai
Securities Investment
and Zhongzhong
International Consulting
Group
May 7th Online Live Institutional The live webcast was Introduction on 2025 Q1 Record of the
2025 Platform webcast at and accessible for all Communications
performance of the
online individual investors. between the
204ADAMA Ltd. Semi-Annual Report 2025
Reception Type of
Date Place Name of the Visitor About Index
Mode Visitor
Platform Investors Company. Company and the
Investors (No. 2025-
The corresponding
03) was published
presentation was
by the Company on
published on the website
May 8th 2025 at
of the Company (IR page
www.cninfo.com.cn
on www.adama.com).III. Summary of Funds Transferred Between the Company and the Controlling Shareholder and
Other Related Parties
√ Applicable □ Not applicable
In RMB ’0000
Additions
Name of the Nature of the Opening Repayments Closing Interest Interest
during the
Related Parties transaction Balance during the period Balance income expense
period
Sinochem
Finance Operational 62744 34992 29995 68061 320 -
Corporation
Syngenta AG
and its Operational 23597 41638 44033 21202 - -
subsidiaries
Bluestar
Engineering Operational - 7 - 7 - -
Co. Ltd.Bluestar
(Beijing)
Chemical Operational - 124 - 124 - -
Machinery Co.Ltd.Jiangsu Huaihe
Chemical Operational 305 9123 8223 1205 - -
Co.Ltd.Zhonglan
International
Operational 61 452 513 - - -
Chemical Co.Ltd
Sinofert Operational 164 6011 5527 648 - -
Shenyang
Shenhua
Institute Testing Operational - 59 - 59 - -
Technology Co.Ltd.MAP (Sinochem
Agriculture Operational - 3055 2523 532 - -
Holdings Ltd)
Ningxia Ruitai Operational - 8 8 - - -
205ADAMA Ltd. Semi-Annual Report 2025
Additions
Name of the Nature of the Opening Repayments Closing Interest Interest
during the
Related Parties transaction Balance during the period Balance income expense
period
Technology Co.Ltd.Beijing
Guangyuan
Yinong Operational - 35 35 - - -
Chemical Co.LTD
Jiangsu
Yangnong
Chemical co. Operational 243 2813 2591 465 - -
LTD. and its
subsidiaries
ADAMA Anpon
Non-Operational 7000 - 80 7000 80 -
(Jiangsu) Ltd.Total -- 94114 98317 93528 99303 400 -
On November 6 2024 the Company held the 7th meeting of the 10th session of the Board of Directors
to review the ‘Proposal on the Renewal of the Financial Service Agreement with Sinochem Finance
Co. Ltd.’ and disclosed the ‘Announcement on the Intended Renewal of the Financial Service
Agreement with Sinochem Finance Co. Ltd.constituting a related-party transaction’ (No. 2024-51) on
Relevant the website www.cninfo.com.cn on November 7 2025. This matter has been approved by the
decision- Company's 2024 Third Extraordinary General Meeting of Shareholders.making On 12 March 2025 the Company held the 10th meeting of the 10th session of the Board of Directors
procedures to review the ‘Proposal on the Expected Related Party Transactions in the Ordinary Course of
Business in 2025’ and disclosed the ‘Announcement on Expected Related-Party Transactions in the
Ordinary Course of Business in 2025’ (No. 2025-11) on the website www.cninfo.com.cn on March 14
2025. This matter has been approved by the Company's 2024 Annual General Meeting of
Shareholders.The Company's aforementioned operational funds transferred are based on actual business needs
Funds Security and the risks to cash security are controllable. The Company has control over the production and
Measures operation decisions and use of funds of its subsidiaries and therefore can ensure the security of the
funds provided to them.ADAMA Ltd.Legal Representative：Ga?l Hili
August 25 2025
206
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