ADAMA Ltd. First Quarter Report 2023
The Company and all members of its board of directors hereby confirm that all informationdisclosed herein is true, accurate and complete with no false or misleading statement ormaterial omission.
ADAMA LTD.FIRST QUARTER REPORT 2023
ADAMA Ltd. (hereinafter referred to as “the Company”) is a global leader in crop protection,providing solutions to farmers across the world to combat weeds, insects and disease.ADAMA has one of the widest and most diverse portfolios of active ingredients in the world,state-of-the art R&D, manufacturing and formulation facilities, together with a culture thatempowers our people in markets around the world to listen to farmers and ideate from thefield. This uniquely positions ADAMA to offer a vast array of distinctive mixtures, formulationsand high-quality differentiated products, delivering solutions that meet local farmer andcustomer needs in over 100 countries globally.Please see important additional information and further details included in the Annex.
April 2023
ADAMA Ltd. First Quarter Report 2023
Important NoticeThe Company’s Board of Directors, Board of Supervisors, directors, supervisors andsenior managers confirm that the content of the Report is true, accurate and completeand contains no false statements, misleading presentations or material omissions,and assume joint and several legal liability arising therefrom.Ignacio Dominguez, the person leading the Company (President and Chief ExecutiveOfficer) as well as its legal representative, and Efrat Nagar, the person leading theaccounting function and the accounting body (Chief Financial Officer), hereby assertand confirm the truthfulness, accuracy and completeness of the Financial Report.The First Quarter Report has not been audited.This Report has been prepared in both Chinese and English. Should there be anydiscrepancy between the two versions, the Chinese version shall prevail.
I. Main Financial Data
1. Main accounting and financial results
Whether the Company performs any retroactive adjustments to, or restatements of, its accounting dataof last year
□ Yes √ No
| January - March 2023 | January - March 2022 | YoY +/- (%) | |
| Operating revenues (RMB’000) | 8,610,576 | 9,015,991 | -4.50% |
| Net profit attributable to shareholders of the Company (RMB’000) | 83,273 | 427,652 | -80.53% |
| Net profit attributable to shareholders of the Company excluding non-recurring profit and loss (RMB’000) | 41,468 | 413,345 | -89.97% |
| Net cash flow from operating activities (RMB’000) | (2,905,168) | (1,813,846) | -60.17% |
| Basic EPS (RMB/share) | 0.036 | 0.184 | -80.43% |
| Diluted EPS (RMB/share) | NA | NA | NA |
| Weighted average return on net assets | 0.36% | 2.02% | -1.66% |
| End of Reporting Period | End of last year | +/- (%) | |
| Total assets (RMB’000) | 59,010,804 | 57,980,489 | 1.78% |
| Net assets attributable to shareholders (RMB’000) | 22,943,219 | 23,124,655 | -0.78% |
2. Non-Recurring profit/loss
√ Applicable □ Not applicable
Unit: RMB’000
| Item | January-March 2023 | Note |
| Gains/losses on the disposal of non-current assets (including the write-off of asset impairment provisions accrued during the period) | 22,053 | - |
| Government grants recognized through profit or loss (excluding government grants closely related to business of the Company and given at a fixed quota or amount in accordance with government’s uniform standard) | 8,584 | - |
| Reversal of provision for receivables and contract assets, that are subject to specific provision | 14,135 | - |
| Other non-operating income and expenses other than the above | 7,755 | - |
| Other profit or loss that meets the definition of non-recurring profit or loss | - | - |
| Less: Income tax effects | 10,722 | - |
| Total | 41,805 | - |
Explanation of other profit or loss that meets the definition of non-recurring profit or loss
□ Applicable √ Not applicable
No such cases during the Reporting Period.
Explanation of why the Company classified an item as non-recurring profit/loss according to the definitionin the First Explanatory Announcement on Information Disclosure for Companies Offering their Securitiesto the Public. Non-recurring Profit and Loss, and reclassified any non-recurring profit/loss item given asan example in the said explanatory announcement to recurrent profit/loss
□ Applicable √ Not applicable
No such cases during the Reporting Period.
3. Changes in main accounting statement items and financial indicators in the ReportingPeriod, as well as reasons for the changes
√ Applicable □ Not applicable
General Crop Protection Market Environment
In Q1 2023 commodity crop prices continued to decline as the result of a slowing global economy and better than expectedproduction in some regions. However, crop prices remain elevated above the 10-yr average as crop inventories remainlow, supporting positive grower margins.While Q1 2022 was characterized by early purchases as a result of concerns about product availability and supplyshortages, in Q1 2023 the channel and farmers were much more cautious regarding input purchases. An improved supplyand logistics situation, relatively high channel inventories as well as the deflationary environment of AI prices in China haveled customers to adopt a “wait-and-see” approach regarding some crop protection purchases.
| Q1 2023 (000’RMB) | Same period last year (000’RMB) | +/-% | Q1 2023 (000’USD) | Same period last year (000’USD) | +/-% |
Revenues
| Revenues | 8,610,576 | 9,015,991 | -4.50% | 1,258,525 | 1,419,721 | -11.35% |
Cost of goodssold
| Cost of goods sold | 6,492,832 | 6,681,194 | -2.82% | 948,997 | 1,052,064 | -9.80% |
Sales &Marketingexpenses
| Sales & Marketing expenses | 1,065,293 | 989,908 | 7.62% | 155,702 | 155,878 | -0.11% |
General &Administrativeexpenses
| General & Administrative expenses | 266,369 | 282,826 | -5.82% | 38,929 | 44,534 | -12.59% |
R&Dexpenses
| R&D expenses | 134,902 | 130,037 | 3.74% | 19,717 | 20,477 | -3.71% |
FinancialExpenses(income)
| Financial Expenses (income) | 206,712 | (258,331) | -180.02% | 30,222 | (40,679) | -174.31% |
Gain (loss)fromChanges inFair Value
| Gain (loss) from Changes in Fair Value | (352,126) | (596,893) | -41.01% | (51,467) | (93,991) | -45.24% |
Total NetFinancialExpenses
| Total Net Financial Expenses | 558,838 | 338,562 | 65.06% | 81,689 | 53,312 | 53.20% |
Total profits
| Total profits | 71,111 | 453,987 | -84.33% | 10,386 | 71,494 | -85.47% |
| Q1 2023 (000’RMB) | Same period last year (000’RMB) | +/-% | Q1 2023 (000’USD) | Same period last year (000’USD) | +/-% |
Income taxexpenses
| Income tax expenses | (12,162) | 26,335 | -146.18% | (1,777) | 4,148 | -142.84% |
Net profitattributable toshareholdersof theCompany
| Net profit attributable to shareholders of the Company | 83,273 | 427,652 | -80.53% | 12,163 | 67,346 | -81.94% |
EBITDA
| EBITDA | 1,134,723 | 1,292,239 | -12.19% | 165,852 | 203,496 | -18.50% |
Note: Since the functional currency of main overseas subsidiaries is the USD, and the Company’s management review ofthe Company’s performance is based on the USD results, following explanations and analysis are based on USD-denominated numbers as listed above.In this table and all tables in this report numbers may not sum due to rounding.
Analysis of Financial Highlights
(1) Revenues
Revenues in the first quarter declined by approximately 11% (-4% in RMB terms; -7% in CER terms) to $1,259 million,reflecting an increase of 1% in prices and a decrease of 8% in volumes mainly due to high channel inventory in the marketand declining raw material prices supporting a "wait and see" approach across the board that impacted volumes and pricesin the first quarter in 2023.
Regional Sales Performance
* 2022 denote proforma sales. As of 2023, the India, Middle East & Africa (IMA) region has been reorganized such thatthe countries formerly included in this region are now included in the Europe region (renamed EAME) or in the AsiaPacific region.Europe, Africa & Middle East (EAME):
The sales in EAME increased in the first quarter in constant exchange rates, most notably in UK and Germany, despitedelayed rainfall, high channel inventories and continued drought in Southern Europe.
North America:
The Consumer & Professional Solutions sales decreased in the first quarter, impacted by weather conditions as wellinflationary pressure on consumer demand and a slowdown in the professional market mostly due high levels of inventory
| Q1 2023 $m | Q1 2022 $m | Change % USD |
Europe, Africa & Middle East (EAME)*
| Europe, Africa & Middle East (EAME)* | 430 | 429 | 0.3% |
North America
| North America | 211 | 284 | -25.7% |
Latin America
| Latin America | 233 | 234 | -0.5% |
Asia Pacific*
| Asia Pacific* | 384 | 472 | -18.7% |
Of which China
| Of which China | 182 | 237 | -23.1% |
Total
| Total | 1,259 | 1,420 | -11.4% |
in the channel and expectation for price decreases.Sales in the US Ag market decreased in the first quarter as the market is in a state of "wait and see" due to high channelinventory and in anticipation of the spring season.Sales in Canada increased in the first quarter as the Company expanded its product portfolio during 2022 and while theCompany's products' pricing held. This was achieved despite cold weather delaying spring product movement, creatinga backing up of inventory in the channel.Latin America:
Sales in Brazil increased slightly in the first quarter, reflecting a "wait and see" approach in the market in light of decliningselling prices and competition to sell the high, expensive inventory accumulated throughout the channel.In other LATAM countries slightly lower sales were achieved due to the negative impact of the weather in Argentina andEcuador as well as lower sales in Peru.Asia Pacific:
During the first quarter the Company's sales decreased in the Asia Pacific region following a decline in the Company'ssales in China of raw material, intermediates and fine chemicals due to softening of demand, strong competition and anoverall decline in market prices.The Company's sales of its branded portfolio in China increased in local currency following strong sales of differentiatedproducts and despite the decrease in market selling prices and high channel inventory.Sales in Pacific region in the first quarter were negatively impacted as the positive La Ni?a effect begins to pass, whiledeclining prices of AI from China and India encourage a "wait and see" approach. In India, the sales were impacted byexchange rates and by reduced market demand following high Q4 2022 market sales. In the rest of Asia, Thailand andSouth Korea presented strong performance in the first quarter.
(2) Cost of Goods and Gross Profit
The decline in gross profit in the first quarter was due to the decline in sales, as described above, exchange rates andhigh-cost inventory. These impacts were slightly moderated by the improvement in the Company's sales mix of highermargin products and lower transportation and logistics costs.
(3) Operating Expenses
Operating expenses include Sales and Marketing, General and Administration and R&D.The Company recorded certain non-operational, mostly non-cash, charges within its reported operating expensesamounting to RMB 65 million ($9.5 million) in Q1 2023 in comparison to RMB 36 million ($5.7 million) in Q1 2022, mainlyas follows:
(I) Non-cash amortization charges in respect of Transfer assets received and written-up related to the 2017 ChemChina-Syngenta acquisition. The proceeds from the Divestment of crop protection products in connection with the approval bythe EU Commission of the acquisition of Syngenta by ChemChina, net of taxes and transaction expenses, were paid toSyngenta in return for the transfer of a portfolio of products in Europe of similar nature and economic value. Since theproducts acquired from Syngenta are of the same nature, and with the same net economic value as those divested, theDivestment and Transfer transactions had no net impact on the underlying economic performance of the Company. Theseadditional amortization charges will continue until 2032 but at a reducing rate, yet will still be at a meaningful level until2028; (ii) Charges related mainly to the non-cash amortization of intangible assets created as part of the Purchase Price
Allocation (PPA) on acquisitions, with no impact on the ongoing performance of the companies acquired, as well as otherM&A-related costs; (iii) Non-cash, share-based compensation (incentive plans).Excluding the impact of the abovementioned non-operational charges, the operating expenses in the first quarter of 2023decreased, among others, mainly due to the positive impact of exchange rates.
(4) Financial Expenses
“Financial Expenses” alone mainly reflect interest payments on corporate bonds and bank loans as well as foreignexchange gains/losses on the bonds and other monetary assets and liabilities before the Company carries out any hedging.The impact of Financial Expenses, net (before hedging) is RMB 207 million ($30 million) for Q1 2023, compared withFinancial Income, net of RMB 258 million ($41 million) for the corresponding periods in 2022.Given the global nature of its operational activities and the composition of its assets and liabilities, the Company, in theordinary course of its business, uses foreign currency derivatives (forwards and options) to hedge the cash flow risksassociated with existing monetary assets and liabilities that may be affected by exchange rate fluctuations. The impact ofthe hedging transactions which is recorded in Gains/Losses from Changes in Fair Value is a net loss of RMB 352 million($51 million) in Q1 2023, compared with RMB 597 million ($94 million) in the corresponding period in 2022.The aggregate of Financial Expenses and Gains/Losses from Changes in Fair Value (hereinafter as “Total Net FinancialExpenses”), which more comprehensively reflects the financial expenses of the Company in supporting its main businessand protecting its monetary assets/liabilities, amounts to RMB 559 million ($82 million) in Q1 2023, compared with RMB339 million ($53 million) in the corresponding period in 2022. The higher financial expenses were mainly driven by (i) higherbank interest expenses due an increase in short-term loans as well as the sharp increase in interest rates, (ii) higherhedging costs on exchange rates mainly due to volatility in the ILS/Dollar exchange rate and (iii) the net effect of the highIsraeli CPI on the ILS-denominated, CPI-linked bonds.
(5) Income Tax Expenses
The tax income in the first quarter of 2023 was mainly due to the non-cash impact of the stronger BRL on the value of non-monetary tax assets, the method of calculation of tax assets related to unrealized profits and low profit before tax.The low effective tax rate in first quarter of 2022 was mainly due to the generation of profits by subsidiaries whose tax ratesare lower relative to the Company’s aggregate effective tax rate, as well as to the method of calculation of tax assetsrelated to unrealized profits and a tax income from the strengthening of the BRL.
Changes in main assets and liabilities
Unit: 000 RMB
| Assets and liabilities | End of Reporting Period | End of last year | +/- (%) | Explanation |
| Other receivables | 1,660,608 | 1,021,824 | 62.51% | Increase mainly due to securitization programs |
| Short term loan | 6,713,822 | 3,342,921 | 100.84% | Supporting the increased working capital |
| Bills payable | 525,141 | 1,114,775 | -52.89% | Bills paid off |
| Taxes payable | 599,951 | 459,574 | 30.55% | Seasonality increase mainly due to VAT |
II. Information regarding Shareholders
1. Total number of ordinary shareholders and preference shareholders who had resumed their voting
right and shareholdings of top 10 shareholders at the period-end
Unit: share
| Total number of ordinary shareholders at the end of the Reporting Period | 42,965 (the number of ordinary A share shareholders is 29,721; the number of B share shareholders is 13,244) | Total number of preference shareholders who had resumed their voting right at the end of the Reporting Period (if any) | 0 | ||||||
| Shareholdings of top 10 shareholders | |||||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Number of shares held | Number of restricted shares held | Pledged or frozen shares | ||||
| Status | Status | ||||||||
| Syngenta Group Co., Ltd. | State-owned legal person | 78.47% | 1,828,137,961 | -- | -- | -- | |||
| China Cinda Asset Management Co., Ltd. | State-owned legal person | 1.34% | 31,115,916 | -- | -- | -- | |||
| CITIC Securities - Huarong Ruitong Equity Investment Management Co., Ltd. - CITIC Securities - Changfeng Single Asset Management Plan | Others | 0.55% | 12,885,900 | -- | -- | -- | |||
| Wang Xiuqin | Domestic Individual | 0.36% | 8,477,715 | -- | -- | -- | |||
| Bosera Funds-China Merchants Bank- Bosera Funds Xincheng No.2 Collective Asset Management Plan | Others | 0.28% | 6,500,000 | -- | -- | -- | |||
| Bosera Funds-Postal Savings Bank- Bosera Funds Xincheng No.3 Collective Asset Management Plan | Others | 0.26% | 6,000,000 | -- | -- | -- | |||
| Wu Feng | Domestic Individual | 0.24% | 5,515,515 | -- | -- | -- | |||
| Hong Kong Securities Clearing Company Ltd. (HKSCC) | Overseas legal person | 0.21% | 4,937,869 | -- | -- | -- | |||
| Zhu Shenglan | Domestic Individual | 0.19% | 4,500,000 | -- | -- | -- | |||
| China Universal Fund-Industrial Bank-China Universal-Strategic Enhancement No.3 Collective Asset Management Plan | Others | 0.19% | 4,400,000 | -- | -- | -- | |||
| Shareholdings of top 10 non-restricted shareholders | |||||||||
| Name of shareholder | Number of non-restricted shares held at the period-end | Types of Shares | |||||||
| Type | Number | ||||||||
| Syngenta Group Co., Ltd. | 1,828,137,961 | RMB ordinary share | 1,828,137,961 | ||||||
China Cinda Asset Management Co., Ltd.
| China Cinda Asset Management Co., Ltd. | 31,115,916 | RMB ordinary share | 31,115,916 |
| CITIC Securities - Huarong Ruitong Equity Investment Management Co., Ltd. - CITIC Securities - Changfeng Single Asset Management Plan | 12,885,900 | RMB ordinary share | 12,885,900 |
| Wang Xiuqin | 8,477,715 | RMB ordinary share | 8,477,715 |
| Bosera Funds-China Merchants Bank- Bosera Funds Xincheng No.2 Collective Asset Management Plan | 6,500,000 | RMB ordinary share | 6,500,000 |
| Bosera Funds-Postal Savings Bank- Bosera Funds Xincheng No.3 Collective Asset Management Plan | 6,000,000 | RMB ordinary share | 6,000,000 |
| Wu Feng | 5,515,515 | RMB ordinary share | 5,515,515 |
| Hong Kong Securities Clearing Company Ltd. (HKSCC) | 4,937,869 | RMB ordinary share | 4,937,869 |
| Zhu Shenglan | 4,500,000 | RMB ordinary share | 4,500,000 |
China Universal Fund-Industrial Bank-ChinaUniversal-Strategic Enhancement No.3Collective Asset Management Plan
| China Universal Fund-Industrial Bank-China Universal-Strategic Enhancement No.3 Collective Asset Management Plan | 4,400,000 | RMB ordinary share | 4,400,000 |
| Explanation on associated relationship or/and persons | Syngenta Group Co., Ltd. is not related party or acting-in-concert party as prescribed in the Administrative Methods for Acquisition of Listed Companies to other shareholders. It is unknown to the Company whether shareholders above are related parties or acting-in-concert parties as prescribed in the Administrative Methods for Acquisition of Listed Companies. | ||
| Particular about shareholder participate in the securities lending and borrowing business (if any) | Shareholder Wang Xiuqin held 606,261 shares through an ordinary securities trading account and 7,871,454 shares through a credit collateral securities trading account, thus holding a total of 8,477,715 shares of the Company. Shareholder Wu Feng held 4,150,489 shares through an ordinary securities trading account and 1,365,026 shares through a credit collateral securities trading account, thus holding a total of 5,515,515 shares of the Company. Shareholder Zhu Shenglan held 4,500,000 shares through a credit collateral securities trading account. | ||
2. Total number of preference shareholders and shareholdings of the top 10 of such at the period-
end
□ Applicable √ Not applicable
III. Other Significant Events
□ Applicable √ Not applicable
IV. Financial Statementsi. Financial statements
1. Consolidated balance sheet
Prepared by ADAMA Ltd.
31 March 2023
Unit: RMB’000
| Item | March 31, 2023 | December 31, 2022 | Item | March 31, 2023 | December 31, 2022 |
| Current assets: | Current liabilities: | ||||
| Cash at bank and on hand | 3,529,280 | 4,290,961 | Short-term loans | 6,713,822 | 3,342,921 |
| Financial assets held for trading | 1,712 | 1,685 | Derivative financial liabilities | 494,020 | 545,516 |
| Derivative financial assets | 210,947 | 233,809 | Bills payable | 525,141 | 1,114,775 |
| Bills receivable | 74,399 | 112,297 | Accounts payable | 6,408,409 | 7,527,269 |
| Accounts receivable | 9,569,469 | 9,018,375 | Contract liabilities | 1,554,491 | 1,776,573 |
| Receivables financing | 98,293 | 63,639 | Employee benefits payable | 1,236,838 | 1,370,786 |
| Prepayments | 377,674 | 341,102 | Taxes payable | 599,951 | 459,574 |
| Other receivables | 1,660,608 | 1,021,824 | Other payables | 1,711,473 | 1,611,282 |
| Inventories | 17,264,564 | 16,927,241 | Non-current liabilities due within one year | 2,353,337 | 2,262,131 |
| Other current assets | 1,213,989 | 1,129,688 | Other current liabilities | 623,098 | 703,794 |
| Total current assets | 34,000,935 | 33,140,621 | Total current liabilities | 22,220,580 | 20,714,621 |
| Non-current assets: | Non-current liabilities: | ||||
| Long-term receivables | 54,960 | 82,510 | Long-term loans | 3,520,806 | 3,662,870 |
| Long-term equity investments | 26,574 | 26,368 | Debentures payable | 7,141,510 | 7,353,511 |
| Other equity investments | 157,361 | 158,341 | Lease liabilities | 421,092 | 431,076 |
| Investment properties | 23,372 | 3,168 | Long-term accounts payable | 103,886 | 107,686 |
| Fixed assets | 9,225,204 | 8,952,184 | Long-term employee benefits payables | 799,210 | 792,153 |
| Construction in progress | 2,796,572 | 2,961,401 | Provisions | 278,235 | 222,181 |
| Right-of-use assets | 547,301 | 555,889 | Deferred tax liabilities | 311,008 | 315,861 |
| Intangible assets | 5,306,606 | 5,342,754 | Other non-current liabilities | 1,271,258 | 1,255,875 |
| Goodwill | 4,856,324 | 4,805,157 | Total non-current liabilities | 13,847,005 | 14,141,213 |
| Deferred tax assets | 1,489,588 | 1,347,263 | Total liabilities | 36,067,585 | 34,855,834 |
| Other non-current assets | 526,007 | 604,833 | Shareholders’ equity: | ||
| Total non-current assets | 25,009,869 | 24,839,868 | Share capital | 2,329,812 | 2,329,812 |
| Total assets | 59,010,804 | 57,980,489 | Capital reserves | 12,945,837 | 12,986,333 |
| Other comprehensive income | 870,474 | 1,080,590 | |||
| Special reserves | 15,413 | 15,818 | |||
| Surplus reserves | 242,498 | 242,498 | |||
| Retained earnings | 6,539,185 | 6,469,604 | |||
| Total equity attributed to the shareholders of the company | 22,943,219 | 23,124,655 | |||
| Non-controlling interests | - | - | |||
| Total equity | 22,943,219 | 23,124,655 | |||
| Total liabilities and equity | 59,010,804 | 57,980,489 |
| Ignacio Dominguez Legal representative | Efrat Nagar Chief of the accounting work | Efrat Nagar Chief of the accounting organ |
2. Consolidated income statement
Unit: RMB’000
| Item | January-March, 2023 | January-March, 2022 |
| 1. Total operating Income | 8,610,576 | 9,015,991 |
| Less: Cost of sales | 6,492,832 | 6,681,194 |
| Taxes and surcharges | 25,849 | 29,447 |
| Selling and Distribution expenses | 1,065,293 | 989,908 |
| General and Administrative expenses | 266,369 | 282,826 |
| Research and Development expenses | 134,902 | 130,037 |
| Financial expenses (income) | 206,712 | (258,331) |
| Including: Interest expense | 267,287 | 158,501 |
| Interest income | 43,225 | 20,166 |
| Add: Investment income, net | 3,537 | 3,582 |
| Including: Income from investment in associates and joint ventures | 3,537 | 3,582 |
| Gain (loss) from changes in fair value | (352,126) | (596,893) |
| Credit impairment reversal (losses) | 8,639 | (107,007) |
| Asset Impairment reversal (losses) | (41,939) | (18,924) |
| Gain (loss) from disposal of assets | 21,825 | 1,612 |
| 2. Operating profit | 58,555 | 443,280 |
| Add: Non-operating income | 20,237 | 15,420 |
| Less: Non-operating expense | 7,681 | 4,713 |
| 3. Total profit | 71,111 | 453,987 |
| Less: income tax expense (income) | (12,162) | 26,335 |
| 4. Net profit | 83,273 | 427,652 |
| 4.1 Classified by nature of operations | ||
| 4.1.1 Continuing operations | 83,273 | 427,652 |
| 4.2 Classified by ownership | ||
| 4.2.1 Shareholders of the Company | 83,273 | 427,652 |
| 4.2.2 Non-controlling interests | - | - |
| 5. Other comprehensive income net of tax | (210,116) | (150,242) |
| Other comprehensive income net of tax attributable to shareholders of the Company | (210,116) | (150,242) |
| 5.1 Items that will not be reclassified into profit/loss | 7,936 | 33,168 |
| 5.1.1 Re-measurement of defined benefit plan liability | 7,936 | 33,168 |
| 5.2 Items that were or will be reclassified to profit or loss | (218,052) | (183,410) |
| 5.2.1 Effective portion of gains or loss of cash flow hedge | (9,973) | (116,354) |
| 5.2.2 Translation differences of foreign financial statements | (208,079) | (67,056) |
| Other comprehensive income net of tax attributable to Non-controlling interests | - | - |
| 6. Total comprehensive income for the period | (126,843) | 277,410 |
| Total comprehensive income attributable to shareholders of the Company | (126,843) | 277,410 |
| Total comprehensive income attributable to Non-controlling interests | - | - |
| 7. Earnings per share | ||
| 7.1 Basic earnings per share (RMB/ share) | 0.036 | 0.184 |
| 7.2 Diluted earnings per share (RMB/ share) | N/A | N/A |
| Ignacio Dominguez Legal representative | Efrat Nagar Chief of the accounting work | Efrat Nagar Chief of the accounting organ |
3. Consolidated cash flow statement
Unit: RMB’000
| Item | January-March, 2023 | January-March, 2022 |
| 1. Cash flows from operating activities: | ||
| Cash received from sale of goods and rendering of services | 6,839,010 | 6,144,476 |
| Refund of taxes and surcharges | 42,714 | 74,680 |
| Cash received relating to other operating activities | 109,137 | 27,275 |
| Sub-total of cash inflows from operating activities | 6,990,861 | 6,246,431 |
| Cash paid for goods and services | 7,879,994 | 6,126,340 |
| Cash paid to and on behalf of employees | 1,038,318 | 982,810 |
| Payments of taxes and surcharges | 170,562 | 178,470 |
| Cash paid relating to other operating activities | 807,155 | 772,657 |
| Sub-total of cash outflows from operating activities | 9,896,029 | 8,060,277 |
| Net cash flows from operating activities | (2,905,168) | (1,813,846) |
| 2. Cash flows from investing activities: | ||
| Cash receipts from investment income | 1,710 | 1,588 |
| Cash received from disposal of investments | 46,894 | 5,887 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 26,060 | 3,209 |
| Cash received for other investing activities | 14,477 | - |
| Sub-total of cash inflows from investing activities | 89,141 | 10,684 |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | 580,045 | 584,402 |
| Net cash paid to acquire subsidiaries or other business units | 148,460 | - |
| Sub-total of cash outflows from investing activities | 728,505 | 584,402 |
| Net cash flows from investing activities | (639,364) | (573,718) |
| 3. Cash flows from financing activities: | ||
| Cash received from borrowings | 3,594,576 | 969,246 |
| Cash received relating to other financing activities | 18,569 | 991 |
| Sub-total of cash inflows from financing activities | 3,613,145 | 970,237 |
| Cash repayment of borrowings | 199,851 | 171,875 |
| Cash payment for dividends, profit distributions or interest | 179,425 | 60,672 |
| Including: dividends paid to non-controlling interest | 13,684 | - |
| Cash paid relating to other financing activities | 383,092 | 411,095 |
| Sub-total of cash outflows from financing activities | 762,368 | 643,642 |
| Net cash flows from financing activities | 2,850,777 | 326,595 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | (52,929) | (24,186) |
| 5. Net increase (decrease) in cash and cash equivalents | (746,684) | (2,085,155) |
| Add: Cash and cash equivalents at the beginning of the period | 4,225,253 | 5,759,480 |
| 6. Cash and cash equivalents at the end of the period | 3,478,569 | 3,674,325 |
ii. Auditor’s reportIs this Report audited?
□ Yes √ No
This Report is unaudited.
ADAMA Ltd.
Board of DirectorsApril 25, 2023