Stock Code: 000553(200553) Stock abbreviation: ADAMA A (B) Announcement No. 2026-3

ADAMA Ltd.Asset Impairment Announcement

The Company and all members of its Board of Directors confirm that all the

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

misleading statement or material omission.In accordance with the Accounting Standards for Business Enterprises ADAMA Ltd.(hereinafter referred to as the “Company”) is expected to record a total of RMB 548

million ($77 million) for the year of 2025 in provisions for asset and credit loss

impairments. These provisions are mainly related to one-time impairments of some fixed

assets impairment of inventories and credit loss impairment of accounts receivables

made during the ordinary course of the Company’s business as provided herein.Overview and Financial Impact of Provision for the Asset Impairments

During the year the Company is expected to record provisions for asset and credit loss

impairments based on "Accounting Standards for Business Enterprises" and the

Company’s own applicable accounting policies.These provisions charged to the total profits of the Company during the year are

expected amounting to RMB 548 million ($77 million).Further details of the impairments are as follows:

Unit: ‘000 RMB

Item Amount

Fixed assets 247015

Inventories 159054

Credit losses 115546

Intangible assets 15867

Construction in progress 11002

Total Asset impairments 548484

Basis and Explanation for Impairment of Fixed Assets

The Company assess at each balance sheet date whether there are any indications that

the fixed assets may be impaired. If there is any indication that such assets may be

impaired recoverable amounts are estimated for such assets (recoverable amount is

the higher between the assets’ fair value less costs to sell and the present value of the

future cash flow estimated to be derived from the asset). If the recoverable amount isbelow the assets’ net cost recorded in the balance sheet a provision for impairment is

made.In 2025 the Company is expected to provide impairments of around RMB 247 million

($35 million) to fixed assets with lower operational efficiency as part of the Fight

Forward plan. This is due to the Company’s strategic direction to enhance operational

efficiency and focus on high-performing facilities. The impairment is made based on the

evaluation of the assets’ net book value and recoverable amount.Basis and Explanation for Impairment of Inventories

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.Inventory impairments are expected to reach approximately RMB 159 million ($22

million) for the full year 2025. This is attributable to the fact that some of the defective

inventories could not be reprocessed because certain facilities are closing as part of the

Fight Forward Plan in order to improve operational efficiency. Other reasons of the

impairments were mainly due to inventory management aspects during the ordinary

course of the Company’s business.Basis and Explanation for Credit Impairment Losses

The Company recognizes an impairment provision which reflects its assessment

regarding the credit risk of accounts and other receivables on a lifetime expected credit

loss basis. The examination for expected credit losses is performed using a model

including aging analysis and historical loss experience and is adjusted taking into

account observable factors reflecting current and expected future economic conditions.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.The credit impairment losses provided for the year are expected to be around RMB 116

million ($16 million). The expected credit losses are mainly due to liquidity issues of

some local customers in certain countries which are provided based on the evaluation

of the current and future financial position of the local customers.Basis and Explanation for Impairment of Intangible Assets

The Company assesses at each balance sheet date whether there is any indication that

the intangible assets with a finite useful life may be impaired and if such indication

exists the Company calculates the recoverable amount of the asset. When the

recoverable amount of an asset is less than its carrying amount an impairment loss is

expected to be recognized to reduce the carrying amount to the recoverable amount.Impairment of intangible assets mainly related to product registrations amounting to

around RMB 16 million ($2.2 million) is expected to be provided for 2025.Basis and Explanation for Impairment of Construction in Progress

The Company assess at each balance sheet date whether there are any indications that

the construction in progress may be impaired. If there is any indication that such assets

may be impaired recoverable amounts are estimated for such assets (recoverable

amount is the higher between the assets’ fair value less costs to sell and the present

value of the future cash flow estimated to be derived from the asset). If the recoverable

amount is below the assets’ net cost recorded in the balance sheet a provision for

impairment is made.In 2025 the Company is expected to make impairments of around RMB 11 million ($1.6

million) on construction in progress.Explanation on the Reasonableness of Asset Impairments

The aforementioned provisions were mainly due to impairments of some fixed assets

inventories and credit loss impairments of accounts receivables made during the

ordinary course of the Company’s business.Based on the current status of the assets these impairments some of which non-

recurring serve to correctly present the balance sheet of the Company truly and fairly

reflects the company's financial situation asset value and operating results while

meeting requirements of accounting standards and related policies.Other Explanations

The expected provisions for asset impairment is the result of the preliminary calculation

of the financial department of the Company without the audit of the accounting firm.Please refer to the audited 2025 Annual Report of the Company for final financial data.Investors are kindly reminded to pay attention to investment risks.Approval Process for the Provision of Asset Impairments

According to the Company’s internal approval procedures the above-mentioned major

impairment of fixed assets and inventories as part of the Fight Forward Plan was

approved by the Company’s global senior management with the calculation of the

recoverable amount of the assets performed by the finance team of the related

subsidiaries and review done by the global finance team.Other impairments were identified calculated and approved locally by respective

subsidiaries and reviewed by the relevant global teams.It’s hereby announced.Board of Directors

ADAMA LTD.January 30 2026