ADAMA Ltd. First Quarter Report 2022
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 2022
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,formulations and high-quality differentiated products, delivering solutions that meet localfarmer and customer needs in over 100 countries globally.Please see important additional information and further details included in theAnnex.
April 2022
ADAMA Ltd. First Quarter Report 2022
Important NoticeThe Company’s Board of Directors, Board of Supervisors, directors, supervisors andsenior managers confirm that the content of the Report is true, accurate andcomplete and contains no false statements, misleading presentations or materialomissions, 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 the person leading the accountingfunction (acting Chief Financial Officer), hereby assert and 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 2022 | January - March 2021 | YoY +/- (%) | ||
| Before adjustment | After adjustment | After adjustment | ||
| Operating revenues (RMB’000) | 9,015,991 | 7,187,164 | 7,187,164 | 25.45% |
| Net profit attributable to shareholders of the Company (RMB’000) | 427,652 | 148,784 | 148,784 | 187.43% |
| Net profit attributable to shareholders of the Company excluding non-recurring profit and loss (RMB’000) | 143,314 | 121,678 | 121,678 | 03..32% |
| Net cash flow from operating activities (RMB’000) | (1,813,846) | (837,773) | (837,773) | -116.51% |
| Basic EPS (RMB/share) | 0.184 | 0.064 | 0.064 | 187.50% |
| Diluted EPS (RMB/share) | NA | NA | NA | NA |
| Weighted average return on net assets | 2.02% | 0.69% | 0.69% | 1.33% |
| End of Reporting Period | End of last year | +/- (%) | ||
| Before adjustment | After adjustment | After adjustment | ||
| Total assets (RMB’000) | 53,586,599 | 50,235,308 | 50,235,308 | 6.67% |
| Net assets attributable to shareholders (RMB’000) | 21,352,214 | 21,075,083 | 21,075,083 | 1.31% |
Reason for retroactive adjustments: When the financial assets measured at fair value through profit or loss weredisposed, the Company used to reclassify the accumulated fair value change of the financial assets to investment income.Starting from 2022, the Company no longer performed the abovementioned reclassification when the financial assetsmeasured at fair value through profit or loss were disposed. Such change did not impact the operating results during thequarter.
2. Non-Recurring profit/loss
√ Applicable □ Not applicable
Unit: RMB’000
| Item | January-March 2022 | Note |
| Gains/losses on the disposal of non-current assets (including the write-off of asset impairment provisions accrued during the period) | 1,882 | - |
| 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) | 7,719 | - |
| Reversal of provision for receivables and contract assets, that are subject to specific provision | 7,087 | - |
| Other non-operating income and expenses other than the above | 7,295 | - |
| Other profit or loss that meets the definition of non-recurring profit or loss | (4,0,1) | Mainly provision for early retirement plan of employees at the Company’s Israeli manufacturing facilities. |
| Less: Income tax effects | 4,3.0 | - |
| Total | 41,323 | - |
Explanation of other profit or loss that meets the definition of non-recurring profit or loss
√ Applicable □ Not applicable
Mainly provision for early retirement plan of employees at the Company’s Israeli manufacturing facilitiesas explained above in the note.
Explanation of why the Company classified an item as non-recurring profit/loss according to thedefinition in the First Explanatory Announcement on Information Disclosure for Companies Offering theirSecurities to the Public. Non-recurring Profit and Loss, and reclassified any non-recurring profit/loss itemgiven as an 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 EnvironmentCrop prices increased sharply during Q1 2022 as a result of concerns regarding supply, due mainly to the Russia-Ukraineconflict, and also due to persistent dryness in parts of South America. Prices are generally expected to remain highthroughout 2022, incentivizing another year of increases in global planted areas. As a result, crop protection demandremains strong globally as farmers strive to maximize yields in this high crop price environment. Farmers continue to faceelevated production costs, mainly from higher fertilizer prices resulting from disruption to supply and tight availabilitycaused by the Russia-Ukraine conflict, yet their farming activities are nevertheless still very profitable in most regions.The challenging cost environment of 2021 has extended into 2022. Global energy prices further increased during thequarter, impacted by Russia's strong share of global gas exports. In addition, global freight and logistics costs haverecently increased again due to oil prices going up, while the availability of shipping resources continues to be limited.Despite some easing in procurement prices for raw materials, intermediates and active ingredients in China during thequarter, prices are expected to remain generally elevated and could increase further due to production disruptions andtight supply in China as COVID-19 impacts the country. Strong global crop protection demand, as well as the high energyprices, may exert additional upward pressure on such procurement prices. Additionally, the availability of certainintermediates, such as co-formulants, has become uncertain as higher energy prices have decreased the economicviability of their production, causing a spike in their prices.
| Q1 2022 (000’RMB) | Same period last year (000’RMB) | +/-% | Q1 2022 (000’USD) | Same period last year (000’USD) | +/-% |
Revenues
| Revenues | 9,015,991 | 7,187,164 | 25.45% | 1,419,721 | 1,108,904 | 28.03% |
Cost of goods sold
| Cost of goods sold | 6,681,194 | 5,127,390 | 30.30% | 1,052,064 | 791,102 | 32.99% |
| Q1 2022 (000’RMB) | Same period last year (000’RMB) | +/-% | Q1 2022 (000’USD) | Same period last year (000’USD) | +/-% |
Sales & Marketingexpenses
| Sales & Marketing expenses | 989,908 | 1,241,310 | -20.25% | 155,878 | 191,247 | -18.49% |
General &Administrativeexpenses
| General & Administrative expenses | 282,826 | 266,713 | 6.04% | 44,534 | 41,419 | 7.52% |
R&D expenses
| R&D expenses | 130,037 | 110,482 | 17.70% | 20,477 | 17,047 | 20.12% |
Financial Expenses(income)
| Financial Expenses (income) | (258,331) | 184,932 | -239.69% | (40,679) | 28,551 | -242.48% |
Gain (loss) fromChanges in FairValue
| Gain (loss) from Changes in Fair Value | (596,893) | (53,159) | -1022.85% | (93,991) | (8,202) | -1045.95% |
Total Net FinancialExpenses
| Total Net Financial Expenses | 338,562 | 238,091 | 42.20% | 53,312 | 36,753 | 45.05% |
Total profits
| Total profits | 453,987 | 186,899 | 142.91% | 71,494 | 28,825 | 148.03% |
Income tax expenses
| Income tax expenses | 26,335 | 36,055 | -26.96% | 4,148 | 5,562 | -25.42% |
Net profit attributableto shareholders of theCompany
| Net profit attributable to shareholders of the Company | 427,652 | 148,784 | 187.43% | 67,346 | 22,945 | 193.51% |
EBITDA
| EBITDA | 1,292,239 | 892,232 | 44.83% | 203,496 | 137,669 | 47.82% |
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 onUSD-denominated numbers as listed above.Analysis of Financial Highlights
(1) Revenues
Revenues in the first quarter grew by 28% (+25% in RMB terms) to $1,420 million, driven by a significant 18% increase inprices, a trend which started in the third quarter of 2021. The markedly higher prices were complemented by continuedstrong volume growth (14%), including the contribution of newly acquired companies, achieved despite supply challengesin the market, which were only slightly moderated by the adverse impact of exchange rate movements.
Regional Sales Performance
| Q1 2022 $m | Q1 2021 $m | Change % USD |
Europe
| Europe | 357 | 344 | 3.6% |
North America
| North America | 284 | 189 | 50.4% |
Latin America
| Latin America | 234 | 177 | 32.5% |
Asia Pacific
| Asia Pacific | 388 | 241 | 60.8% |
Of which China
| Of which China | 237 | 124 | 90.6% |
India, Middle East & Africa
| India, Middle East & Africa | 157 | 158 | -0.5% |
Total
| Total | 1,420 | 1,109 | 28.0% |
Europe:
A strong performance in France, Romania and Poland, bolstered by good demand and high prices, more than offset adecline in sales in Ukraine, drought conditions in parts of southern Europe, and the adverse impact of exchange rates.The Company benefited from the sales in various countries of recently launched products POLEPOSITION? andTIMELINE? FX.North America: The remarkably strong growth in sales in the first quarter was driven by the Consumer &Professional business, which experienced robust demand, allowing for price increases in light of concerns regardingpotential shortages. This was further complemented by continued growth in US crop protection, driven both by highervolumes as well as higher prices, reflecting generally strong demand, especially in corn, soybeans, cereals and rice.Latin America:
Strong growth was achieved in Brazil due to early demand from farmers and higher prices, supported by good soybeanand corn planting seasons, and despite drought conditions in the south of the country. This was complemented bydemand for the Company's differentiated products, including the fungicides ARMERO?, ACROSS? and the herbicideARADDO?, which are part of ADAMA's leading soybean protection offering.Sales also grew in most of the countries of the wider region, driven by price increases, as the Company continues tostrengthen its positioning throughout the region.Asia Pacific: The Company's rapid growth in Asia Pacific during the first quarter was led by the particularly strong
increase in sales in China. The growth in China was led firstly by the sales of raw materials and intermediates, whichcontinued to benefit from strong demand and high prices in light of ongoing tight supply following shutdowns incompeting facilities due to COVID-19 and environmental inspections, which has also disrupted and slowed downtransportation. In addition, sales of ADAMA's branded, formulated portfolio in China also grew significantly, and weresupported by a pleasing performance from the commercial activities and portfolio acquired from Huifeng at the end of2020.In the wider APAC region, strong sales were delivered in the Pacific region and in certain countries in the Far East,benefiting from favorable seasonal conditions, and despite the impact of the weakening of the Australian dollar.India, Middle East and Africa:
Sales in the region grew in constant exchange rate terms, mainly led by India, and despite the cold and rainy season inthe Middle East and Africa which brought low insect and disease pressure. This growth is particularly noteworthy in lightof a very strong first quarter in 2021. This growth was offset by the adverse impact of exchange rates, particularly thedepreciation of the Turkish Lira, as well as the Indian Rupee.
(2) Cost of Goods and Gross Profit
In the reported results, as of Q4 2021, following recent changes in the guidelines in China, the transportations costs tothird parties and its marketing subsidiaries and opex idleness have been reclassified from operating expenses to costs ofgoods (not impacting the operating results), while these expenses were not recorded in the cost of goods in Q1 2021, butrather in the operating expenses.
Additionally, certain extraordinary charges related largely to a temporary disruption of the production of certain productswere adjusted in Q1 2021. These charges have significantly declined in Q1 2022, as the relocation and upgrade of themanufacturing Jingzhou site in China has been completed and is now almost fully operational.Excluding the impact of the abovementioned items, the significantly higher gross profit was mainly driven by the markedlyhigher prices, complemented by continued volume growth, all of which more than offset higher transportation and logisticscosts driven by both volumes being transported and an increase in freight costs, procurement and production costs as wellas the negative FX impact.
(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 36 million ($5.7 million) in Q1 2022 in comparison to RMB 104 million ($16.0 million) in Q1 2021,mainly as follows:
Non-cash amortization charges in respect of Transfer assets received and written-up related to the 2017ChemChina-Syngenta acquisition. The proceeds from the Divestment of crop protection products in connection with theapproval by the EU Commission of the acquisition of Syngenta by ChemChina, net of taxes and transaction expenses,were paid to Syngenta in return for the transfer of a portfolio of products in Europe of similar nature and economic value.Since the products acquired from Syngenta are of the same nature, and with the same net economic value as thosedivested, the Divestment and Transfer transactions had no net impact on the underlying economic performance of theCompany. These additional amortization charges will continue until 2032 but at a reducing rate, yet will still be at ameaningful level until 2028; (ii) Charges related mainly to the non-cash amortization of intangible assets created as partof the Purchase Price Allocation (PPA) on acquisitions, with no impact on the ongoing performance of the companiesacquired, as well as other M&A-related costs; (iii) Non-cash, share-based compensation (incentive plans).Excluding the impact of the abovementioned non-operational charges, the level of operating expenses in the quarterprimarily reflect the reclassification of certain transportation costs and idleness from operating expenses to costs of goodsas explained above and the inclusion of recent acquisitions.
(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 anyhedging. The impact of Financial Income, net (before hedging) is RMB 258 million ($41 million) for Q1 2022, comparedwith Financial Expenses, net of RMB 185 million ($29 million) for the corresponding periods in 2021.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 594 million($94 million) in Q1 2022, compared with RMB 53 million ($8 million) in the corresponding period in 2021.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 336 million ($53 million) in Q1 2022, compared with RMB238 million ($37 million) in the corresponding period in 2021. The higher Total Net Financial Expenses in the quarter weremainly driven by the net effect of the increase in the Israeli CPI on the ILS-denominated, CPI-linked bonds, and higher
non-cash charges related to put options in respect of minority interests on recent acquisitions.
(5) Credit and Asset Impairment Loss
Due to the current events in Ukraine, in order to cover the estimated risk, the Company made an impairment for theexpected credit loss related to the accounts receivables in Ukraine.
(6) Income Tax Expenses
The first quarter is generally characterized by a low effective tax rate compared to the effective tax rate of the Companyover the full year. This is mainly due to the generation of profits by subsidiary companies within ADAMA 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. In the first quarter of 2022, the low effective tax rate also reflects the tax income due tonon-cash impact on the value of non-monetary tax assets of the significant strengthening of the BRL, while in the firstquarter of 2021, the Company recorded tax expenses due to the impact of the weakening of the BRL.
Changes in main assets and liabilities
Unit: 000 RMB
| Assets and liabilities | End of Reporting Period | End of last year | +/- (%) | Explanation |
| Derivative financial assets* | 371,744 | 243,316 | 52.78% | Realization and revaluation of derivatives |
| Accounts receivables | 10,681,801 | 8,362,493 | 27.73% | Sales increase and seasonality change |
| Other receivables | 1,260,891 | 691,939 | 82.23% | Increase mainly due to securitization programs |
| Derivative financial liabilities* | 607,821 | 176,206 | 244.95% | Realization and revaluation of derivatives |
| Taxes payable | 580,811 | 368,682 | 57.54% | Seasonality increase mainly due to VAT |
* Both derivative financial assets and liabilities are hedging instruments, the sum-up of which reflects the net position.
II. Information regarding Shareholders
1. Total number of ordinary shareholders and preference shareholders who had resumed their votingright and shareholdings of top 10 shareholders at the period-end
Unit: share
| Total number of ordinary shareholders at the end of the Reporting Period | 42,943 (the number of ordinary A share shareholders is 29,262; the number of B share shareholders is 13,681) | 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 | Number | ||||||
Syngenta Group Co., Ltd.
| 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 | -- | -- | -- | |
| Portfolio No.503 of National | Others | 0.64% | 15,000,000 | -- | -- | -- |
| Social Security Fund | |||||||||
| Huarong Ruitong Equity Investment Management Co., Ltd. | State-owned legal person | 0.55% | 12,885,906 | -- | -- | -- | |||
| Hong Kong Securities Clearing Company Limited | Overseas legal person | 0.30% | 6,985,634 | -- | -- | -- | |||
| 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 | -- | -- | -- | |||
| China Universal Fund-Industrial Bank-China Universal-Strategic Enhancement No.3 Collective Asset Management Plan | Others | 0.19% | 4,400,000 | -- | -- | -- | |||
| State-owned Assets Administration Bureau of Qichun County | State-owned legal person | 0.18% | 4,169,266 | -- | -- | -- | |||
| Zhu Shenglan | Domestic natural person | 0.18% | 4,100,000 | -- | -- | -- | |||
| Shareholdings of top 10 non-restricted shareholders | |||||||||
| Name of shareholder | Number of non-restricted shares held at the period-end | Type 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. | 31,115,916 | RMB ordinary share | 31,115,916 | ||||||
| Portfolio No.503 of National Social Security Fund | 15,000,000 | RMB ordinary share | 15,000,000 | ||||||
| Huarong Ruitong Equity Investment Management Co., Ltd. | 12,885,906 | RMB ordinary share | 12,885,906 | ||||||
| Hong Kong Securities Clearing Company Limited | 6,985,634 | RMB ordinary share | 6,985,634 | ||||||
| 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 | ||||||
| China Universal Fund-Industrial Bank-China Universal-Strategic Enhancement No.3 Collective Asset Management Plan | 4,400,000 | RMB ordinary share | 4,400,000 | ||||||
| State-owned Assets Administration Bureau of Qichun County | 4,169,266 | RMB ordinary share | 4,169,266 | ||||||
| Zhu Shenglan | 4,100,000 | RMB ordinary share | 4,100,000 | ||||||
Related or act-in-concert partiesamong the shareholders above
| Related or act-in-concert parties among the shareholders above | 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. |
| Top 10 ordinary shareholders conducting securities margin trading | Shareholder Zhu Shenglan held 4,100,000 shares of the Company 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 2022
Unit: RMB’000
| Item | March 31, 2022 | December 31, 2021 | Item | March 31, 2022 | December 31, 2021 |
| Current assets: | Current liabilities: | ||||
| Cash at bank and on hand | 3,796,424 | 5,818,835 | Short-term loans | 982,098 | 874,755 |
| Financial assets held for trading | 2,114 | 1,479 | Derivative financial liabilities | 607,821 | 176,206 |
| Derivative financial assets | 371,744 | 243,316 | Bills payable | 750,938 | 493,376 |
| Bills receivable | 89,28, | 81,992 | Accounts payable | 7,653,543 | 6,294,163 |
| Accounts receivable | 10,681,801 | 8,362,493 | Contract liabilities | 1,514,92. | 1,381,311 |
| Receivables financing | 63,585 | 120,157 | Employee benefits payable | 1,199,354 | 1,247,979 |
| Prepayments | 439,57, | 379,788 | Taxes payable | 580,811 | 368,682 |
| Other receivables | 1,260,891 | 691,939 | Other payables | 4,426,430 | 1,342,188 |
| Inventories | 13,657,313 | 11,750,162 | Non-current liabilities due within one year | 1,799,240 | 1,795,754 |
| Other current assets | ..6,310 | 938,453 | Other current liabilities | 336,004 | 412,909 |
| Total current assets | 31,884,933 | 28,388,614 | Total current liabilities | 30,483,861 | 14,387,323 |
| Non-current assets: | Non-current liabilities: | ||||
| Long-term receivables | 66,764 | 56,234 | Long-term loans | 4,155,911 | 3,498,912 |
| Long-term equity investments | 20,092 | 15,335 | Debentures payable | 7,690,083 | 7,797,131 |
| Other equity investments | 151,916 | 152,118 | Lease liabilities | 355,975 | 362,086 |
| Investment properties | 3,579 | 3,716 | Long-term accounts payable | 95,325 | 95,699 |
| Fixed assets | 8,511,00, | 8,048,389 | Long-term employee benefits payables | 769,550 | 792,358 |
| Construction in progress | 1,968,624 | 2,143,400 | Provisions | 209,748 | 186,430 |
| Right-of-use assets | 467,373 | 463,915 | Deferred tax liabilities | 330,351 | 380,138 |
| Intangible assets | 5,169,090 | 5,326,288 | Other non-current liabilities | 1,696,135 | 1,660,148 |
| Goodwill | 4,391,254 | 4,409,599 | Total non-current liabilities | 15,303,078 | 14,772,902 |
| Deferred tax assets | 994,342 | 723,075 | Total liabilities | 8,,,89,838 | 29,160,225 |
| Other non-current assets | 483,042 | 504,625 | Shareholders’ equity: | ||
| Total non-current assets | 22,227,113 | 21,846,694 | Share capital | 2,329,812 | 2,329,812 |
| Total assets | 88,830,844 | 50,235,308 | Capital reserves | 12,977,171 | 12,977,171 |
| Other comprehensive income | (582,626) | (432,384) | |||
| Special reserves | 19,578 | 19,857 | |||
| Surplus reserves | 240,162 | 240,162 | |||
| Retained earnings | 6,368,117 | 5,940,465 | |||
| Total equity attributed to the shareholders of the company | 21,352,214 | 21,075,083 | |||
| Non-controlling interests | - | - | |||
| Total equity | 21,352,214 | 21,075,083 | |||
| Total liabilities and equity | 53,586,599 | 50,235,308 |
| Ignacio Dominguez Legal representative Chief of the accounting work and Chief of the accounting organ |
2. Consolidated income statement
Unit: RMB’000
| Item | January-March, 2022 | January-March, 2021 |
| 1. Total operating Income | 9,015,991 | 7,187,164 |
| Less: Cost of sales | 6,681,194 | 5,127,390 |
| Taxes and surcharges | 29,447 | 34,501 |
| Selling and Distribution expenses | 989,908 | 1,241,310 |
| General and Administrative expenses | 282,826 | 266,713 |
| Research and Development expenses | 130,037 | 110,482 |
| Financial expenses (income) | (258,331) | 184,932 |
| Including: Interest expense | 44,,424 | 169,365 |
| Interest income | 02,466 | 12,775 |
| Add: Investment income, net | 3,582 | 2,048 |
| Including: Income from investment in associates and joint ventures | 3,582 | 2,048 |
| Gain (loss) from changes in fair value | (596,893) | (53,14.) |
| Credit impairment reversal (losses) | (107,007) | 4,288 |
| Asset Impairment reversal (losses) | (18,924) | (9,449) |
| Gain (loss) from disposal of assets | 1,612 | 6,773 |
| 2. Operating profit | 443,280 | 172,337 |
| Add: Non-operating income | 15,420 | 20,065 |
| Less: Non-operating expense | 4,713 | 5,503 |
| 3. Total profit | 453,987 | 186,899 |
| Less: income tax expense | 26,335 | 36,055 |
| 4. Net profit | 427,652 | 150,844 |
| 4.1 Classified by nature of operations | ||
| 4.1.1 Continuing operations | 427,652 | 150,844 |
| 4.2 Classified by ownership | ||
| 4.2.1 Shareholders of the Company | 427,652 | 148,784 |
| 4.2.2 Non-controlling interests | - | 2,060 |
| 5. Other comprehensive income net of tax | ||
| Other comprehensive income net of tax attributable to shareholders of the Company | (150,242) | 224,804 |
| 5.1 Items that will not be reclassified into profit/loss | 33,168 | (8,411) |
| 5.1.1 Re-measurement of defined benefit plan liability | 33,168 | (8,411) |
| 5.2 Items that were or will be reclassified to profit or loss | (183,410) | 233,215 |
| 5.2.1 Effective portion of gains or loss of cash flow hedge | (116,354) | 198,665 |
| 5.2.2 Translation differences of foreign financial statements | (67,056) | 34,550 |
| Other comprehensive income net of tax attributable to Non-controlling interests | - | - |
| 6. Total comprehensive income for the period | 277,410 | 375,648 |
| Total comprehensive income attributable to shareholders of the Company | 277,410 | 373,588 |
| Total comprehensive income attributable to Non-controlling interests | - | 2,060 |
| 7. Earnings per share | ||
| 7.1 Basic earnings per share (RMB/ share) | 0.184 | 0.064 |
| 7.2 Diluted earnings per share (RMB/ share) | N/A | N/A |
| Ignacio Dominguez Legal representative Chief of the accounting work and Chief of the accounting organ |
3. Consolidated cash flow statement
Unit: RMB’000
| Item | January-March, 2022 | January-March, 2021 |
| 1. Cash flows from operating activities: | ||
| Cash received from sale of goods and rendering of services | 6,144,476 | 5,246,605 |
| Refund of taxes and surcharges | 74,680 | 40,843 |
| Cash received relating to other operating activities | 27,275 | 297,970 |
| Sub-total of cash inflows from operating activities | 6,246,431 | 5,585,418 |
| Cash paid for goods and services | 6,126,340 | 4,681,382 |
| Cash paid to and on behalf of employees | 982,810 | 887,515 |
| Payments of taxes and surcharges | 178,470 | 75,172 |
| Cash paid relating to other operating activities | 772,657 | 779,122 |
| Sub-total of cash outflows from operating activities | 8,060,277 | 6,423,191 |
| Net cash flows from operating activities | (1,813,846) | (837,773) |
| 2. Cash flows from investing activities: | ||
| Cash receipts from investment income | 5,887 | 856 |
| Cash received from disposal of investments | 1,588 | - |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 3,209 | 9,149 |
| Cash received for other investing activities | - | 6,754 |
| Sub-total of cash inflows from investing activities | 10,684 | 16,759 |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | 584,402 | 588,183 |
| Net cash paid to acquire subsidiaries or other business units | - | 54,557 |
| Cash paid for other investing activities | - | 78,502 |
| Sub-total of cash outflows from investing activities | 584,402 | 721,242 |
| Net cash flows from investing activities | (573,718) | (704,483) |
| 3. Cash flows from financing activities: | ||
| Cash received from borrowings | 969,246 | 1,861,623 |
| Cash received relating to other financing activities | 991 | 26,334 |
| Sub-total of cash inflows from financing activities | 970,237 | 1,887,957 |
| Cash repayment of borrowings | 171,875 | 244,391 |
| Cash payment for dividends, profit distributions or interest | 60,672 | 62,847 |
| Including: dividends paid to non-controlling interest | - | - |
| Cash paid relating to other financing activities | 411,095 | - |
| Sub-total of cash outflows from financing activities | 643,642 | 307,238 |
| Net cash flows from financing activities | 326,595 | 1,580,719 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | (24,186) | 18,915 |
| 5. Net increase (decrease) in cash and cash equivalents | (2,085,155) | 57,378 |
| Add: Cash and cash equivalents at the beginning of the period | 5,759,480 | 3,835,071 |
| 6. Cash and cash equivalents at the end of the period | 3,674,325 | 3,892,449 |
ii. Auditor’s reportIs this Report audited?
□ Yes √ No
This Report is unaudited.
ADAMA Ltd.
Board of Directors April 28, 2022