Stock Code: 000553(200553) Stock Abbreviation: ADAMA A(B) Announcement No.2026-7

ADAMALtd.Announcement on the Engagement of an

Accounting Firm

The Company and all members of its board of directors hereby confirm that all

information disclosed herein is true accurate and complete with no false or

misleading statement or material omission.I. Explanation on the Proposed Appointment of the Company’s Auditor

ADAMA Ltd. (hereinafter referred to as: the “Company”) intends to renew the

appointment of KPMG Huazhen Certified Public Accountants LLP (hereinafter

referred to as: “KPMG Huazhen” or the “Auditor”) as the Company’s auditor for its

2026 financial statements and the annual internal control.

KPMG Huazhen is an accounting firm qualified to engage in securities and

futures-related businesses. It possesses sufficient professional competence and investor

protection capabilities and ensures that it will always maintain independence in

accordance with applicable laws and regulations when providing audit services to the

Company. In the course of providing audit services KPMG Huazhen has diligently

performed its duties adhered to the practice principles of independence objectivity and

impartiality and completed the engagements assigned by the Company. To maintain

continuity in the Company’s audit work the Company proposes to reappoint KPMG

Huazhen as the auditor for the Company’s financial statements and internal control for

2026. The aggregate audit fee for 2025 was RMB 3.15 million of which RMB 2.25

million was for the financial statements audit and RMB 0.9 million was for the internal

control audit. Upon the subsequent authorization of the shareholders the audit fee for

2026 will be negotiated and determined by the Company’s management and KPMG

Huazhen based on market conditions the size of the Company’s operations and the

actual audit scope and workload.

1This reappointment complies with the “Measures for the Administration of theSelection and Engagement of Accounting Firms by State-owned Enterprises and Listed

Companies (Cai Kuai [2023] No. 4) jointly promulgated by the Ministry of Finance the

State-owned Assets Supervision and Administration Commission of the State Council

and the China Securities Regulatory Commission.II. Introduction of the Proposed Auditor

KPMG Huazhen presented the following information to the Company.

1.Institution Information

1.1Basic Information

KPMG Huazhen was established on 18 August 1992 in Beijing. On 5 July 2012 it was

approved by the Ministry of Finance and other authorities to convert its business

property into a limited liability partnership. The business license was obtained on 10

July 2012 and the partnership business officially started on 1 August 2012.The headquarter office of KPMG Huazhen is located in Beijing with registered address

at 8th floor East Building 2 Oriental Plaza No.1 East Chang'an Avenue Dongcheng

District Beijing.The chief partner of KPMG Huazhen is Mr. Zou Jun who is of Chinese nationality and

holds the qualification of a Chinese Certified Public Accountant.As of the end of 2025 KPMG Huazhen had 247 partners and 1412 CPAs among

whom more than 330 CPAs have signed audit report for securities services business.The total revenue from audit business of KPMG Huazhen in 2024 exceeded RMB 4.1

billion of which revenue from the audit business exceeded RMB 4 billion (including

revenue from domestic statutory securities service exceeding RMB 900 million

revenue from other securities services of approximately RMB 1 billion with the total

revenue from securities service exceeding RMB 1.9 billion).KPMG Huazhen provided 2024 annual audit services to 127 listed companies with a

total audit service fee of RMB 682 million. The main industries of the listed companies

that KPMG Huazhen served are manufacturing finance transportation warehousing

storage and postal telecommunication software and information technology real

estate electricity heat gas and water production and supply mining wholesale and

retail agriculture forestry animal husbandry fisheries accommodation and catering

2scientific research and technology services health and social work water conservancy

environmental and public facility management cultural sports and entertainment as

well as leasing and business services industries. Among the listed companies KPMG

Huazhen served for the 2024 annual audit there are 59 listed companies in the same

industry as the Company.

1.2 Investor Protection

The aggregate limit of indemnity under the professional liability insurance purchased

by KPMG Huazhen together with the accumulated professional risk reserve provision

exceeds RMB 200 million which is in compliance with relevant regulations. In the past

three years with respect to civil lawsuits related to its professional practice KPMG

Huazhen has borne civil liability in bond-related civil litigation cases that were

concluded during this period. In the final instance judgments KPMG Huazhen was

held liable for compensation at a ratio of 2%–3% (approximately RMB 4.6 million)

and the payment has been fully settled.

1.3 Integrity Record

In the past three years neither KPMG Huazhen nor its practitioners have been subject

to any criminal penalties administrative penalties or self-regulatory measures or

disciplinary actions imposed by stock exchanges in connection with their professional

practice. KPMG Huazhen and four of its practitioners were once subject to an

administrative regulatory measure in the form of a warning letter issued by a local

office of the CSRC and two practitioners were once subject to a self-regulatory

measure imposed by an industry association. Pursuant to the relevant laws and

regulations the foregoing matters do not affect KPMG Huazhen’s acceptance or

performance of securities service business or other businesses.

2.Engagement Information

2.1 Basic Information

The basic information of the engagement partner signing certified public accountant

and engagement quality control reviewer of KPMG Huazhen responsible for the

Company’s audit engagement are as follows:

Engagement partner Ms. Wang Jia obtained her Chinese certified public accountant

qualification in 2008. She has been practicing with KPMG Huazhen since 2004 and has

been engaged in audits of listed companies since 2004. She has been providing audit

3services to the Company since 2025. Ms. Wang has not signed or reviewed any audit

reports of listed companies in the past three years.Signing certified public accountant Ms. Wang Shan obtained her Chinese certified

public accountant qualification in 2018. She has been practicing with KPMG Huazhen

since 2008 and has been engaged in audits of listed companies since 2008. She has been

providing audit services to the Company since 2025. Ms. Wang has signed or reviewed

two audit reports of listed companies in the past three years.Engagement quality control reviewer Ms. Chen Yuhong obtained her Chinese certified

public accountant qualification in 1994. She has been practicing with KPMG Huazhen

since 1992 and has been engaged in audits of listed companies since 1994. She has been

providing audit services to the Company since 2025. Ms. Chen has signed or reviewed

four audit reports of listed companies in the past three years.

2.2 Integrity Record

As presented to the Company by the Auditor none of the above-mentioned engagement

partner signing certified public accountant or engagement quality control reviewer of

KPMG Huazhen has been subject to any criminal penalties administrative penalties

administrative regulatory measures self-regulatory measures or disciplinary sanctions

in connection with their professional practice in the past three years.

2.3 Independence

KPMG Huazhen and abovementioned engagement partner signing certified public

accountants and engagement quality control reviewer have maintained their

independence in accordance with the requirements of the Code of Professional Ethics

and the independence standards.

2.4 Audit Service Fee

The audit service fees of KPMG Huazhen are determined based on factors such as the

level of responsibilities involved complexity of the engagement the work

requirements the working conditions and hours required and the professional

knowledge and experience contributed by personnel of various ranks participating in

the engagement. The audit fee for 2025 was RMB 3.15 million of which RMB 2.25

million was for the financial statements audit and RMB 0.9 million was for the internal

control audit. The audit fee for 2026 will be submitted to the general meeting of

shareholders to authorize the Company’s management to negotiate and determine with

4KPMG Huazhen in light of market conditions the size of the Company’s operations

and the actual audit scope and workload.III. Procedures for the Proposed Reappointment of the Auditor

1. Based on KPMG Huazhen’s representations and warranties regarding its

professional qualifications business capabilities independence and investor protection

capability and upon verification the Audit Committee of the Board of Directors of the

Company unanimously believes that KPMG Huazhen meets the qualification

requirements to serve the Company and is able to effectively perform its duties as the

auditor of the Company. The Audit Committee agrees to reappoint KPMG Huazhen as

the Company’s auditor for its 2026 financial statements and internal control and also

agrees to submit this proposal to the Board of Directors of the Company for approval.

2. The 18th Meeting of the 10th Session of the Board of Directors of the Company onMarch 26 2026 approved the proposal of “Reappointment of the Company’s Auditorfor the Audit of the Financial Statements and Internal Control for 2026”. This proposal

was passed with 7 affirmative votes 0 negative votes and 0 abstentions. The Board of

Directors of the Company agreed to reappoint KPMG Huazhen as the auditor for the

Company’s 2026 financial statements and internal control.

3. The reappointment of KPMG Huazhen shall be submitted to the shareholders’

meeting for approval and shall take effect from the date of approval by the

shareholders' meeting of the Company.IV. Documents available for reference

1. Resolutions of the 18th Meeting of the 10th Session of the Board of Directors;

2. Resolutions of the 1st Meeting of the Audit Committee in 2026；

3. The business license of the proposed accounting firm to be engaged the

information and contact details of its principal person in charge and the regulatory

business contact person and the identification documents practicing certificates

and contact details of the signing certified public accountants proposed to be

responsible for the specific audit work

4. Other documents required by Shenzhen Stock Exchange.

It is hereby announced.

5Board of Directors of ADAMA Ltd.

March 28 2026

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