ADAMA Ltd. Semi-Annual Report 2026
ADAMA LTD.
SEMI-ANNUAL REPORT 2026
August 2026
ADAMA Ltd. Semi-Annual Report 2026
Section I - Important Notice, Table of Contents and Definitions
• The Company’s Board of Directors, directors 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 and
Countermeasures” 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.
ADAMA Ltd. Semi-Annual Report 2026
Table of Contents
ADAMA Ltd. Semi-Annual Report 2026
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.
ADAMA Ltd. Semi-Annual Report 2026
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
Group, the Group, ADAMA The Company, including all its subsidiaries, unless expressly stated otherwise
ChemChina China National Chemical Co., Ltd.
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 Syngenta Group Co., Ltd, the controlling shareholder of the Company
Sinochem Holdings Sinochem Holdings Corporation Ltd.
Sinochem Holdings including all its subsidiaries unless otherwise indicated or the
Sinochem Group
context otherwise requires
Report This 2026 Semi-Annual Report
Reporting Period, this Period January 1, 2026 - June 30, 2026
ADAMA Ltd. Semi-Annual Report 2026
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) ADAMA 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
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 2025
Annual Report.
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
ADAMA Ltd. Semi-Annual Report 2026
the Reporting Period. Said information can be found in the 2025 Annual Report.
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 2026 January - June 2025 YoY +/- (%)
Operating revenues (RMB’000) 14,476,540 15,024,200 -3.65%
Net profit (loss) attributable to shareholders of
the Company (RMB’000)
Net profit (loss) attributable to shareholders of
the Company excluding non-recurring profit and 80,637 (149,757) 153.85%
loss (RMB’000)
Net cash flow from operating activities
(RMB’000)
Basic EPS (RMB/share) 0.1857 (0.0345) 638.26%
Diluted EPS (RMB/share) NA NA NA
Weighted average return on net assets 2.46% (0.42%) 2.88 pp
End of Reporting Period End of last year
Total assets (RMB’000) 46,649,089 48,463,962 -3.74%
Net assets attributable to shareholders
(RMB’000)
V. Differences in Accounting Data under Domestic and Foreign Accounting
Standards
Chinese and International Accounting Standards
□ Applicable √ Not applicable
None during the Reporting Period.
Chinese and Foreign Accounting Standards
□ Applicable √ Not applicable
None during the Reporting Period.
□ Applicable √ Not applicable
ADAMA Ltd. Semi-Annual Report 2026
VI. Non-Recurring Profit/Loss
√ Applicable □ Not applicable
Unit: RMB’000
Item Reporting Period Note
Capital gain from the
disposal of fixed
Gains/losses on the disposal of non-current assets (including the offset
part of asset impairment provisions)
logistic center in
Israel
Government grants recognized through profit or loss (excluding
government grants closely related to regular operation of the Company
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
individually during the years
Custodian fees earned from entrusted operation 1,746
Other non-operating income and expenses other than the above 5,533
Mainly compensation
received related to
limited and localized
damage to one of the
Other profit or loss that meets the definition of non-recurring profit or loss 17,102 Company’s Israeli
manufacturing sites
caused by falling
debris following
missile interceptions
Less: Income tax effects 10,567
Total 351,930
Details of other profit and loss items that meet the definition of non-recurring profit or loss.
□ Applicable √ Not applicable
Mainly compensation received related to limited and localized damage caused by falling debris following
missile interceptions at one of the Company’s Israeli manufacturing sites as explained above in the note.
Explanation of non-recurring items of profit or loss listed in "Explanatory Announcement No. 1 on
Information Disclosure for Companies Offering their Securities to the Public-Non-Recurring Profit and
Loss" reclassified as recurring items of profit or loss
□ Applicable √ Not applicable
No such cases in the Reporting Period.
ADAMA Ltd. Semi-Annual Report 2026
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 North America, Latin America, Asia-
Pacific (including China) and Europe, Africa and the Middle East.
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, additional agricultural and digital technologies, as well as an advanced distribution
network in China.
The General Crop Protection Market Environment
Despite healthy underlying crop protection demand supported by low channel inventories, crop protection
pricing remains under pressure in H1 2026. This is mainly due to lower farmer profitability, as well as
persistently low active ingredient prices resulting from structural production overcapacity in China.
Farmer profitability remains low despite some easing in input costs, supporting continued just-in-time
purchasing behavior. This is mainly due to crop commodity prices expected to remain broadly stable at
relatively normal levels, although still sensitive to geopolitical and weather-related risks (e.g El Ni?o),
limiting upside to farmer income. While geopolitical tensions continue to contribute to market uncertainties,
inflation and energy prices have stabilized towards more normal levels.1
Crop Protection Products
As described within the Company’s 2025 Annual Report, the Group is focused on the development,
manufacturing and commercialization of largely off-patent crop protection products, which are generally
ADAMA Ltd. Semi-Annual Report 2026
herbicides, insecticides and fungicides, which protect agricultural and other crops against weeds, insects
and disease, respectively. Since the publication of the 2025 Annual Report, no major changes occurred
with that respect. For details, please refer to 2025 Annual Report.
Please see important additional information and further details included in the Annex.
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 □ No
Please refer to the relevant information in section “I. Main Business of the Company during the Reporting
Period” above.
Year-on-year changes of main financial data:
Same period 2026 Apr- Same period
of last year +/-% June of last year +/-%
(000’RMB)
(000’RMB) (000’USD) (000’USD)
Operating revenues 7,270,859 7,851,465 -7.39% 1,062,878 1,091,791 -2.65%
Cost of goods sold 5,315,231 5,806,542 -8.46% 776,910 807,427 -3.78%
Selling and Distribution
expenses
General and administrative
expenses
R&D expenses 105,986 112,949 -6.16% 15,495 15,708 -1.36%
Financial Expenses 677,202 1,002,189 -32.43% 99,007 139,326 -28.94%
Gain from Changes in Fair
Value
Total Net Financial
Expenses
Loss before tax (26,148) (257,578) 89.85% (3,745) (35,786) 89.54%
Tax expenses (income) 110,513 (26,095) 523.50% 16,162 (3,629) 545.36%
Net loss (136,661) (231,483) 40.96% (19,907) (32,157) 38.09%
EBITDA 1,008,725 933,527 8.06% 147,544 129,812 13.66%
Net cash flows from operating
activities
Net cash flows used in
(19,512) (372,808) -94.77% (2,852) (51,841) -94.50%
investing activities
Net cash flows used in
(1,903,425) (1,890,259) 0.70% (278,248) (262,850) 5.86%
financing activities
Net decrease in cash and cash
(313,059) (320,875) -2.43% (38,750) (43,437) -10.79%
equivalents
ADAMA Ltd. Semi-Annual Report 2026
Same
Reporting Same period Reporting
period of
Period of last year +/-% Period +/-%
last year
(000’RMB) (000’RMB) (000’USD)
(000’USD)
Operating revenues 14,476,540 15,024,200 -3.65% 2,099,592 2,091,331 0.40%
Cost of goods sold 10,523,330 11,030,173 -4.60% 1,526,201 1,535,355 -0.60%
Selling and Distribution
expenses
General and administrative
expenses
R&D expenses 211,350 216,793 -2.51% 30,654 30,177 1.58%
Financial Expenses 1,023,706 1,024,340 -0.06% 148,875 142,429 4.53%
Gain (loss) from Changes in
Fair Value
Total Net Financial Expenses 810,255 1,030,833 -21.40% 117,663 143,436 -17.97%
Profit (loss)before tax 392,385 (125,579) 412.46% 56,472 (17,403) 424.50%
Tax expenses (income) (40,182) (45,227) 11.15% (5,519) (6,295) 12.33%
Net profit (loss) 432,567 (80,352) 638.34% 61,991 (11,108) 658.08%
EBITDA 2,276,660 1,964,239 15.91% 329,989 273,447 20.68%
Net cash flows from operating
activities
Net cash flows from (used in)
investing activities
Net cash flows used in financing
(1,251,166) (1,367,061) -8.48% (184,404) (189,941) -2.92%
activities
Net decrease in cash and cash
(534,294) (268,278) 99.16% (63,183) (35,403) 78.47%
equivalents
Major changes to the profit structure or sources of the Company in the Reporting Period:
□ Applicable √ Not applicable
None during the Reporting Period.
Analysis of Financial Highlights
(1) Operating Revenues
Revenues in the second quarter decreased by approximately 3% (-7% in RMB; -5% in CER) to
$1,063 million compared to last year, reflecting a decline of 1% in volumes and 3% in prices, partially
compensated by positive foreign exchange impacts.
The lower volumes resulted from the Company’s strategic decision to reduce the manufacture and
sale of certain basic chemicals and low-margin products, partially compensated by new product
introductions and healthy demand in the market. Lower prices reflected the overall lower market
pricing and weaker farmer purchasing power.
These results brought the revenues in the first half of 2026 to $2,100 million, flat compared to last
year (-4% in RMB terms; -3% in CER terms), reflecting a decrease of 4% in prices, offset by a 1%
increase in volumes and positive foreign exchange impacts.
ADAMA Ltd. Semi-Annual Report 2026
Excluding the Company's decision to reduce the manufacture and sale of certain basic chemicals,
sales would have decreased by 1% in the second quarter and in the first half year period increased
by 3% in comparison to the corresponding periods in 2025.
Unit: RMB’000
Ratio of the Ratio of the
YoY +/-%
Amount operating Amount operating
revenue revenue
Total operating revenue 14,476,540 100.0% 15,024,200 100.0% -3.6%
Classified by industries
Manufacture of chemical raw materials
and chemical products
Classified by products
Herbicides 6,496,416 44.9% 6,593,471 43.9% -1.5%
Fungicides 2,944,209 20.3% 3,149,177 21.0% -6.5%
Insecticides 4,056,572 28.0% 3,913,941 26.1% 3.6%
Ingredients and Intermediates (Formerly
referred to as Non-Agro)
Classified by regions
Europe, Africa & Middle East (EAME) 5,041,810 34.8% 4,811,339 32.0% 4.8%
North America 3,570,492 24.7% 3,554,544 23.7% 0.4%
Latin America 2,431,950 16.8% 2,609,695 17.4% -6.8%
Asia-Pacific 3,432,288 23.7% 4,048,622 26.9% -15.2%
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 2026 Q2 2025 Change H1 2026 H1 2025 Change
$m $m USD $m $m USD
Europe, Africa & Middle East (EAME)* 324 314 3% 731 670 9%
North America 281 276 2% 518 495 5%
Latin America 209 216 -3% 353 363 -3%
Asia Pacific* 248 286 -13% 498 564 -12%
Of which China 104 143 -28% 238 309 -23%
Total 1,063 1,092 -3% 2,100 2,091 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):
Sales increased in the second quarter and first half of 2026 despite extremely dry weather, low disease
pressure and a difficult spring season. Competitive pressure, farmer liquidity constraints and selective
application decisions contributed to lower market consumption and higher channel inventories. Against
this backdrop, ADAMA outperformed the underlying market, supported by strong channel execution and
favorable foreign exchange conditions.
ADAMA Ltd. Semi-Annual Report 2026
North America:
Sales increased both in the second quarter and first half year, presenting mixed performance across the
businesses.
In US Ag, sales slightly declined in a competitive and price-sensitive crop protection market, as
disciplined inventory management and leaner customer inventories continued to weigh on channel
replenishment. Canada delivered sales growth supported by a balanced portfolio. In the Professional
Solutions business unit, sales increased in the second quarter and first half year supported by higher
volumes, favorable spring weather, despite continuous price erosion in weed control segments. In the
Consumer business overall sales declined in the second quarter and increased in the first half year
following lower pricing and lower private label demand, while supported by favorable spring weather
across the US and improved distribution in key channels.
Latin America:
In Brazil, higher volumes reflected solid commercial execution across key crop seasons, including
soybean and corn. However, sales in the second quarter and first half year were impacted by lower market
prices, which more than offset the benefit from higher volumes, as lower farmer profitability and increased
competition, particularly in commodity products, weighed on pricing.
In the rest of LATAM, sales in the second quarter and first half year increased, mainly driven by higher
volumes and continued commercial momentum, offset by weak pricing in a highly competitive market.
Growth was supported by deeper market penetration and strengthened positions in key markets, and
was partly tempered by El Ni?o impacts and the normalization of channel inventories in parts of the region.
Asia-Pacific:
The sales in India in the second quarter and first half year increased in CER terms driven by higher
volume and pricing reflecting continued commercial momentum despite uneven seasonal conditions,
including delayed monsoon rainfall and El Ni?o-related effects on crop protection demand. Significant
adverse foreign exchange impacts led to broadly stable sales in dollar terms.
In Pacific, sales in the second quarter and first half year increased despite the continued impact of El
Ni?o-related weather conditions, particularly in Northern Australia, where dry conditions affected planting
decisions and crop protection demand. Stronger demand in Southern and Western Australia helped offset
regional weakness, demonstrating resilient commercial performance in a challenging market environment.
Retailers and growers continued to favor just-in-time purchasing patterns amid intense market
competition.
In China, sales declined, reflecting the Company’s decision to reduce manufacturing and sale of certain
basic chemicals and low-margin products, and time-phasing of customized products. The decline was
partially compensated by higher sales of brand formulations, driven by product launches and improved
market penetration.
ADAMA Ltd. Semi-Annual Report 2026
(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
materials and
chemical products
Classified by products
Crop Protection 13,497,197 9,723,520 28.0% -1.2% -2.3% 0.84 pp
Ingredients and
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
Gross profit and margin improved in the first half, mainly reflecting favorable foreign exchange impacts,
higher volumes and improved quality of the business, more than compensating for lower prices, mild cost
increases, and an increase in expenses supporting business growth.
(3) Operating Expenses:
Operating expenses include Sales and Marketing, General and Administration and R&D.
Operating expenses in the first half of the year reflected the negative impact of exchange rates and an
increase in employee compensation. In the first half of both 2026 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. The general and administrative expenses decreased as the restructuring
costs significantly reduced compared to last year.
Non-operational charges affected the Company’s reported operating expenses amounting to RMB 167
million ($ 24 million) in H1 2026 in comparison to RMB 338 million ($ 47 million) in H1 2025. 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
ADAMA Ltd. Semi-Annual Report 2026
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 1,024
million ($ 149 million) for the first half of 2026 compared to RMB 1,024 million ($ 142 million) for the
corresponding period in 2025.
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 gain of RMB 213 million ($ 31 million) in the first half
of 2026, compared with a net loss of RMB 6 million ($ 1 million) in the corresponding period in 2025.
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
corresponding period in 2025.
The lower Total Net Financial Expenses in the first half mainly reflected the better debt structure, which
also reflects the buyback of bonds in Q2 2025, lower hedging costs related to foreign exchange, positive
impact of the CPI and the benefits of continued positive cash flow. In addition, an expense was recorded
in Q2 2025 in bond repurchase by a controlled subsidiary as part of strengthening the debt structure.
(5) Cash Flow:
Net cash flow from (used in) operating activities: Operating cash flow of RMB 670 million ($ 100
million) was generated in the half-year period, compared to RMB 1,739 million ($ 242 million) generated
in the corresponding period last year. The lower operating cash flow was mainly due to higher receivables
which reflected lower sales of basic chemicals with shorter collection terms, lower collections due to
timing differences mainly in Q1 2025, and lower procurement in comparison to last year, in which the
Company increased procurement and inventory in order to provide business continuity during the merging
of entities in Israel.
Net cash flow from investing activities was an inflow of RMB 137 million ($ 20 million) in the half-year
period, compared to an outflow of RMB 635 million ($ 88 million) in the corresponding period last year.
The Company continued the execution of its strategy to prioritize the most critical investments in
infrastructure, portfolio and innovation. Meanwhile, as part of optimizing its existing assets to enable new
growth projects, the Company disposed fixed assets, resulting into the proceeds from asset disposal,
mainly a logistics center in Israel. The higher cash used in investing activities last year also reflected the
payment for earn out related to Agrinova, a controlled subsidiary of the Company.
Cash Flow from Financing Activities was RMB 1,251 million ($ 184 million) consumed in the half-year
period, compared to RMB 1,367 million ($ 190 million) consumed in the corresponding periods last year,
mainly reflecting lower borrowings supported by continued positive cash flow while less cash was utilized
to reduce debts compared to last year.
ADAMA Ltd. Semi-Annual Report 2026
IV. Analysis of Non-Core Business
√ Applicable □ Not applicable
Unit: RMB’000
Proportion in Whether
Amount Reasons
total profit sustained
Investment income 6,593 1.68% No
Mainly foreign currency effect on
Gain from change of Fair financial assets and liabilities (refer to
Value explanation to Financial expenses
above).
Please refer to the Announcement on No
Asset Impairment (Announcement No.
Credit impairment losses (28,205) (7.19%)
www.cninfo.com.cn
Please refer to the Announcement on No
Asset Impairment (Announcement No.
Asset impairment losses (152,029) (38.74%)
www.cninfo.com.cn
Capital gain from the disposal of fixed No
Gain from disposal of assets 306,349 78.07%
assets, mainly a logistic center in Israel
Non-operating income 94,399 24.06% No
Non-operating loss 79,305 (20.21%) No
V. Analysis of Assets and Liabilities
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 2,906,052 6.23% 3,450,300 7.12% -0.89 pp -
Lower
sales with
shorter
collection
terms and
Accounts receivable 7,781,302 16.68% 7,124,736 14.70% 1.98 pp lower
collections
due to
timing
difference
s
Inventories 11,280,787 24.18% 11,607,842 23.95% 0.23 pp -
Investment property 18,053 0.04% 18,869 0.04% 0.00 pp -
Long term equity investments 42,820 0.09% 39,312 0.08% 0.01 pp -
Fixed assets 9,635,349 20.65% 10,073,551 20.79% -0.14 pp -
Construction in progress 713,670 1.53% 897,175 1.85% -0.32 pp -
Right of use assets 562,738 1.21% 661,443 1.36% -0.15 pp -
Repaid
Short-term loans 5,763,384 12.35% 6,673,792 13.77% -1.42 pp
loans
ADAMA Ltd. Semi-Annual Report 2026
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
Accounts payable 5,048,131 10.82% 5,461,749 11.27% -0.45 pp -
Contract liabilities 1,515,640 3.25% 1,789,490 3.69% -0.44 pp -
Long-term loans 1,152,479 2.47% 1,507,514 3.11% -0.64 pp -
Debentures payable 5,138,114 11.01% 4,894,076 10.10% 0.91 pp -
Lease liabilities 652,730 1.40% 751,226 1.55% -0.15 pp -
√ 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
Adama Major Assets globally Governance Governance
Solutions Restructuring
Other explanations N/A
√ 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
held for trading
(excluding derivative
financial assets)
assets (including long 449,379 314,534 49,076 - 100,589 (683,858) (1,228) 228,492
term)
investments
Total financial assets 580,398 314,534 46,755 - 102,077 (683,858) (1,228) 358,678
Other 58,566 - - - 51,973 (3,054) - 107,485
Total of above 638,964 314,534 46,755 - 154,050 (686,912) (1,228) 466,163
Financial liabilities 189,581 60,256 - - - - - 249,837
Significant changes in the measurement attributes of the main assets in the Reporting Period
□ Yes √ No
ADAMA Ltd. Semi-Annual Report 2026
At the end of this Reporting Period, restricted assets included RMB 87,020,000 - restricted cash, most of
which as guarantee for bank acceptance bills; and RMB 171,328,000 of other non-current assets, mainly
as guarantee for lawsuits.
VI. Investments Made
√ Applicable □ Not applicable
Investment during the Investment during the Same +/-% YoY
Reporting Period (RMB'000) Period Last Year (RMB'000)
□ Applicable √ Not applicable
□ Applicable √ Not applicable
(1) Investments in Securities
□ Applicable √ Not applicable
None during the Reporting Period.
ADAMA 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 3,760,408 3,760,408 76,284 92,653 1,900,241 3,760,408 1,900,241 11%
Forward 17,665,618 17,665,618 177,994 216,191 19,198,399 17,665,618 19,198,399 109%
Total 21,426,026 21,426,026 254,278 308,844 21,098,640 21,426,026 21,098,640 120%
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
gain/loss during the Reporting The gain during the year was RMB 308,844,000, mainly due to the devaluation of the USD by 6% vs. ILS.
Period
Explanations for hedging effect 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.
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
Risk and control analysis for the
the expiration date of the transaction, therefore no market risk is involved.
Reporting Period (including but
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,
As to operational risk, the Group is working with relevant software, which is its back office for all transactions.
operational risk, legal risk, etc.)
No legal risk is involved.
The actions taken in order to further reduce risks are:
ADAMA Ltd. Semi-Annual Report 2025
• 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
December 23, 2025
approval (if any)
Date of disclosure of
January 14, 2026
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 of
Industry 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.
ADAMA Ltd. Semi-Annual Report 2026
□ Applicable √ Not applicable
None during the Reporting Period.
VII. Sale of Major Assets and Equity Interests
□ Applicable √ Not applicable
None during the Reporting Period.
□ 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 720,085 38,914,963 11,684,019 13,320,971 273,369 318,161
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 $1,930 million, an increase of 5% compared to last year, reflecting an increase of 5% in
volumes and positive foreign exchange impacts, offset by a decrease of 4% in prices. Solutions’ net
income was $45 million in the first half of the year, compared with net loss of $34 million in the
corresponding period last year. For detailed explanation of the performance movement, see above
explanation of the Section.
ADAMA Ltd. Semi-Annual Report 2026
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 23% 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,
ADAMA Ltd. Semi-Annual Report 2026
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.
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-
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 III. Core competitiveness analysis in 2025 Annual Report.
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
ADAMA Ltd. Semi-Annual Report 2026
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
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
ADAMA Ltd. Semi-Annual Report 2026
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
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
ADAMA Ltd. Semi-Annual Report 2026
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.
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-
ADAMA Ltd. Semi-Annual Report 2026
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
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.
ADAMA Ltd. Semi-Annual Report 2026
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
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.
ADAMA Ltd. Semi-Annual Report 2026
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.
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.
ADAMA Ltd. Semi-Annual Report 2026
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.
On March 26th, 2026, the 18th Meeting of the 10th Session of the BOD deliberated and reviewed the
Report on Effectiveness of the Valuation Enhancement Plan in 2025.
The Company has been focusing on improving its business efficiency, quality and profitability first and
foremost, and on this basis, improving investor relations management and enhancing the quality and
transparency of information disclosure, etc., with an aim to strengthen the confidence of investors, and
enhance the market value of the Company and investor returns.
ADAMA Ltd. Semi-Annual Report 2026
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
ADAMA Ltd. Semi-Annual Report 2026
Section IV - Corporate Governance, Environment and Society
I. Changes in Directors and Senior Management
□Applicable √ Not applicable
There were no changes in directors and senior management during the Reporting Period, please refer
to the 2025 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 cash rewards incentive
plans to executive officers and employees. These incentive plans are based either on the financial
performance and/or the Company's shares (phantom cash incentives).
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 disclose
environmental
information by the law
No. Company Name Index for disclosure of environmental reports
System (Hubei Province)”
http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/enterpriseInfo?XTXH=c39b8d32-
e200-4b1c-aba9-b8cbd7483407&XH=1677749854437009244672&year=2025
ADAMA Anpon 2025 Annual Report disclosed on the “Enterprise Environmental Information Disclosure
(Jiangsu) Ltd. System (Jiangsu Province)”
ADAMA Ltd. Semi-Annual Report 2026
http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
webapp/web/viewRunner.html?viewId=http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
webapp/web/sps/views/yfpl/views/yfplHomeNew/index.js
Maidao Branch of System (Jiangsu Province)”
(Jiangsu) Ltd. webapp/web/viewRunner.html?viewId=http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
webapp/web/sps/views/yfpl/views/yfplHomeNew/index.js
System (Jiangsu Province)”
ADAMA Huifeng
(Jiangsu) Ltd.
webapp/web/viewRunner.html?viewId=http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
webapp/web/sps/views/yfpl/views/yfplHomeNew/index.js
The Company must comply with the disclosure requirements for ‘businesses related to the chemical
industry’ set out in the Self-Regulatory Guidance No. 3 for Listed Companies – Industry Information
Disclosure of Shenzhen Stock Exchange.
Details regarding environmental incidents involving the listed company
In the first half of 2026, the Company did not have material environmental pollution incidents.
V. Social Responsibilities
In serving China’s national rural revitalization strategy, ADAMA actively fulfills its corporate social
responsibilities. In the first half of 2026, the Company’s subsidiary, ADAMA Anpon assisted Yuanzhuang
Village of Huai’an City, which is the designated assistance target, with infrastructure repairs and the
clearing of ditches to ensure the unobstructed flow of waterways; it also carried out lighting renovation on
rural roads to improve the living environment.
ADAMA Ltd. Semi-Annual Report 2026
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.
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 √ No
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 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.
ADAMA Ltd. Semi-Annual Report 2026
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 Enforcement
Amount
generate Result of the Litigation of the
Overview of Litigation (or Involved Progress of Litigation (or Disclosure
any (or Arbitration) and the Litigation (or Disclosure Index
Arbitration) (RMB Arbitration) Date
estimated Impact Arbitration)
'0000)
liabilities Judgement
The plaintiff requested that the 92 No The Intermediate People's Court of The Hubei High Court, in / July 2,
Announcement on
three defendants (China Wuhan, Hubei Province, heard the its second-instance 2026
Voluntary Disclosure of
National Chemical Corporation case in March 2025, and issued its judgement, dismissed the
the Progress of the
Limited, Syngenta Group Co., first instance judgment in August. plaintiff’s claims and
Company’s Involvement
Ltd. and ADAMA Ltd.) be jointly The court ruled that the plaintiff's ordered the plaintiff to pay
in Litigation
liable for the plaintiff's claim lacked factual and legal the litigation costs. As final
(Announcement No.
investment losses of RMB basis and was not validated. and binding as it is, the
due to the failure to complete the plaintiff's claims and ordered the have no impact on the Disclosed at the website
commitments and the failure to plaintiff to bear the litigation costs Company’s profit for the CNINFO
fulfill the information disclosure for this case. current or future periods.
www.cninfo.com.cn
obligations, as well as the Subsequently, the Company
litigation costs. received a civil appeal because the
plaintiff has been dissatisfied with
the first-instance judgment. He has
ADAMA Ltd. Semi-Annual Report 2026
Whether to Enforcement
Amount
generate Result of the Litigation of the
Overview of Litigation (or Involved Progress of Litigation (or Disclosure
any (or Arbitration) and the Litigation (or Disclosure Index
Arbitration) (RMB Arbitration) Date
estimated Impact Arbitration)
'0000)
liabilities Judgement
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.
In June 2026, the Hubei High Court
made its second-instance
judgment in this case. The Court
found the plaintiff’s appeal not
validated and dismissed it
accordingly. The Hubei High Court
affirmed the original first-instance
judgment, concluding that the facts
were clearly established and the
law was correctly applied. The
plaintiff was ordered to bear the
costs of both instances. This
judgment is final and binding.
No other significant litigation or arbitration during the reporting period.
ADAMA Ltd. Semi-Annual Report 2026
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
XI. Material Related-Party Transactions
√ Applicable □ Not applicable
Percentage Whether Market price of
Pricing Approved
Type of Content of Value against exceeds similar
principle of transaction Settlement Date of Index of the
Related party Relationship related party related party Price (RMB transactions the transactions if
related party quota (RMB methods disclosure disclosure
transaction transaction ‘0000) of the same approved the Company
transaction ‘0000)
kind quota knows
Announcement
on Expected
Purchasing
Under the Related-Party
Syngenta AG raw materials Purchase of
same control Market Cash December Transactions in
and its and products raw materials/ Market price 39,911 5.49% 134,212 No N/A
of Sinochem price Settlement 23, 2025 the Ordinary
subsidiaries from related products
Holdings Course of
parties
Business in 2026
(No.2025-42)
Under the Purchasing Market Cash December Announcement
Jiangsu Youjia Purchase of Market price 6,726 0.92% 19,598 No N/A
same control raw materials price Settlement 23, 2025 on Expected
Plant Protection raw materials/
of Sinochem and products Related-Party
ADAMA Ltd. Semi-Annual Report 2026
Percentage Whether Market price of
Pricing Approved
Type of Content of Value against exceeds similar
principle of transaction Settlement Date of Index of the
Related party Relationship related party related party Price (RMB transactions the transactions if
related party quota (RMB methods disclosure disclosure
transaction transaction ‘0000) of the same approved the Company
transaction ‘0000)
kind quota knows
Co., Ltd. Holdings from related products Transactions in
parties the Ordinary
Course of
Business in 2026
(No.2025-42)
Announcement
on Expected
Purchasing
Jiangsu Under the Related-Party
raw materials Purchase of
Yangnong same control Market Cash December Transactions in
and products raw materials/ Market price 325 0.04% 17,132 No N/A
Chemical Co., of Sinochem price Settlement 23, 2025 the Ordinary
from related products
Ltd. Holdings Course of
parties
Business in 2026
(No.2025-42)
Liaocheng Luxi Announcement
Polyol New on Expected
Material Purchasing Related-Party
Under the
Technology Co., raw materials Purchase of Transactions in
same control Market Cash December
Ltd./ Liaocheng and products raw materials/ Market price 1,913 0.26% 5,438 No N/A the Ordinary
of Sinochem price Settlement 23, 2025
Luxi from related products Course of
Holdings
Methylamine parties Business in 2026
Chemical Co., (No.2025-42)
Ltd.
Purchasing Announcement
Under the
raw materials Purchase of on Expected
Sinochem Agro same control Market Cash December
and products raw materials/ Market price 1,302 0.18% 2,634 No N/A Related-Party
Co., Ltd. of Sinochem price Settlement 23, 2025
from related products Transactions in
Holdings
parties the Ordinary
ADAMA Ltd. Semi-Annual Report 2026
Percentage Whether Market price of
Pricing Approved
Type of Content of Value against exceeds similar
principle of transaction Settlement Date of Index of the
Related party Relationship related party related party Price (RMB transactions the transactions if
related party quota (RMB methods disclosure disclosure
transaction transaction ‘0000) of the same approved the Company
transaction ‘0000)
kind quota knows
Course of
Business in 2026
(No.2025-42)
Announcement
on Expected
Purchasing
Under the Related-Party
Sinochem raw materials Purchase of
same control Market Cash December Transactions in
Petrochemical and products raw materials/ Market price 1,072 0.15% 1,875 No N/A
of Sinochem price Settlement 23, 2025 the Ordinary
Sales Co., Ltd. from related products
Holdings Course of
parties
Business in 2026
(No.2025-42)
Announcement
on Expected
Purchasing
Under the Related-Party
raw materials Purchase of
Sinochem Hebei same control Market Cash December Transactions in
and products raw materials/ Market price 93 0.01% 1,254 N/A
Co., Ltd. of Sinochem price Settlement 23, 2025 the Ordinary
from related products
Holdings Course of
parties
Business in 2026
(No.2025-42)
Announcement
on Expected
Purchasing
Bluestar (Beijing) Under the Related-Party
raw materials Purchase of
Chemical same control Market Cash December Transactions in
and products raw materials/ Market price 406 0.06% 1,161 No N/A
Machinery Co., of Sinochem price Settlement 23, 2025 the Ordinary
from related products
Ltd. Holdings Course of
parties
Business in 2026
(No.2025-42)
ADAMA Ltd. Semi-Annual Report 2026
Percentage Whether Market price of
Pricing Approved
Type of Content of Value against exceeds similar
principle of transaction Settlement Date of Index of the
Related party Relationship related party related party Price (RMB transactions the transactions if
related party quota (RMB methods disclosure disclosure
transaction transaction ‘0000) of the same approved the Company
transaction ‘0000)
kind quota knows
Announcement
on Expected
Sinochem Purchasing
Under the Related-Party
International raw materials Purchase of
same control Market Cash December Transactions in
Crop Care and products raw materials/ Market price 32 0.00% 799 No N/A
of Sinochem price Settlement 23, 2025 the Ordinary
(Overseas) Pte. from related products
Holdings Course of
Ltd. parties
Business in 2026
(No.2025-42)
Announcement
on Expected
Purchasing
Under the Related-Party
Ningxia Ruitai raw materials Purchase of
same control Market Cash December Transactions in
Technology Co., and products raw materials/ Market price 46 0.01% 63 No N/A
of Sinochem price Settlement 23, 2025 the Ordinary
Ltd. from related products
Holdings Course of
parties
Business in 2026
(No.2025-42)
Announcement
China Bluestar on Expected
Purchasing
Chengrand Under the Related-Party
raw materials Purchase of
Research same control Market Cash December Transactions in
and products raw materials/ Market price 1 0.00% 3 No N/A
Institute of Sinochem price Settlement 23, 2025 the Ordinary
from related products
Chemical Holdings Course of
parties
Industry Business in 2026
(No.2025-42)
Market Cash December Announcement
Sinochem India Under the Purchasing Purchase of Market price 25 0.00% - - N/A
price Settlement 23, 2025 on Expected
Company Private same control raw materials raw materials/
ADAMA Ltd. Semi-Annual Report 2026
Percentage Whether Market price of
Pricing Approved
Type of Content of Value against exceeds similar
principle of transaction Settlement Date of Index of the
Related party Relationship related party related party Price (RMB transactions the transactions if
related party quota (RMB methods disclosure disclosure
transaction transaction ‘0000) of the same approved the Company
transaction ‘0000)
kind quota knows
Limited of Sinochem and products products Related-Party
Holdings from related Transactions in
parties the Ordinary
Course of
Business in 2026
(No.2025-42)
Announcement
on Expected
Purchasing
Under the Related-Party
Anhui Kelihua raw materials Purchase of
same control Market Cash December Transactions in
Chemistry Co., and products raw materials/ Market price 1,215 0.17% - - N/A
of Sinochem price Settlement 23, 2025 the Ordinary
Ltd. from related products
Holdings Course of
parties
Business in 2026
(No.2025-42)
Announcement
on Expected
Purchasing
Under the Related-Party
ELKEM raw materials Purchase of
same control Market Cash December Transactions in
SILICONES and products raw materials/ Market price 248 0.03% - - N/A
of Sinochem price Settlement 23, 2025 the Ordinary
BRASIL LTDA from related products
Holdings Course of
parties
Business in 2026
(No.2025-42)
Purchasing Announcement
Under the
Anhui Chemical raw materials Purchase of on Expected
same control Market Cash December
Research and products raw materials/ Market price 119 0.02% - - N/A Related-Party
of Sinochem price Settlement 23, 2025
Institute from related products Transactions in
Holdings
parties the Ordinary
ADAMA Ltd. Semi-Annual Report 2026
Percentage Whether Market price of
Pricing Approved
Type of Content of Value against exceeds similar
principle of transaction Settlement Date of Index of the
Related party Relationship related party related party Price (RMB transactions the transactions if
related party quota (RMB methods disclosure disclosure
transaction transaction ‘0000) of the same approved the Company
transaction ‘0000)
kind quota knows
Course of
Business in 2026
(No.2025-42)
Announcement
on Expected
Purchasing
Jiangsu Ruiheng Under the Related-Party
raw materials Purchase of
New Material same control Market Cash December Transactions in
and products raw materials/ Market price 3 0.00% - - N/A
Technology CO., of Sinochem price Settlement 23, 2025 the Ordinary
from related products
LTD. Holdings Course of
parties
Business in 2026
(No.2025-42)
Announcement
on Expected
Purchasing
Under the Related-Party
YANGNONG raw materials Purchase of
same control Market Cash December Transactions in
SINGAPORE and products raw materials/ Market price 55 0.01% - - N/A
of Sinochem price Settlement 23, 2025 the Ordinary
PTE. LTD. from related products
Holdings Course of
parties
Business in 2026
(No.2025-42)
Announcement
on Expected
Purchasing
Shenyang Under the Related-Party
raw materials Purchase of
Sciencreat same control Market Cash December Transactions in
and products raw materials/ Market price 94 0.01% - - N/A
Chemicals Co. of Sinochem price Settlement 23, 2025 the Ordinary
from related products
Ltd. Holdings Course of
parties
Business in 2026
(No.2025-42)
ADAMA Ltd. Semi-Annual Report 2026
Percentage Whether Market price of
Pricing Approved
Type of Content of Value against exceeds similar
principle of transaction Settlement Date of Index of the
Related party Relationship related party related party Price (RMB transactions the transactions if
related party quota (RMB methods disclosure disclosure
transaction transaction ‘0000) of the same approved the Company
transaction ‘0000)
kind quota knows
Announcement
on Expected
Under the Purchasing Related-Party
Bluestar
same control fixed assets Purchase of Market Cash December Transactions in
Engineering Market price 1,504 0.21% - - N/A
of Sinochem from related fixed assets price Settlement 23, 2025 the Ordinary
Co.,Ltd.
Holdings parties Course of
Business in 2026
(No.2025-42)
Announcement
on Expected
Selling raw
Under the Related-Party
Syngenta AG materials and
same control Selling Market Cash December Transactions in
and its products to Market price 36,876 2.55% 112,644 No N/A
of Sinochem products price Settlement 23, 2025 the Ordinary
subsidiaries related
Holdings Course of
parties
Business in 2026
(No.2025-42)
Announcement
on Expected
Selling raw
Under the Related-Party
materials and
Sinofert Holdings same control Selling Market Cash December Transactions in
products to Market price - - 6,406 No N/A
Limited of Sinochem products price Settlement 23, 2025 the Ordinary
related
Holdings Course of
parties
Business in 2026
(No.2025-42)
Selling Market Cash December Announcement
Jiangsu Youshi Under the Selling raw Market price 463 0.03% 5,000 No N/A
products price Settlement 23, 2025 on Expected
Chemical Co., same control materials and
ADAMA Ltd. Semi-Annual Report 2026
Percentage Whether Market price of
Pricing Approved
Type of Content of Value against exceeds similar
principle of transaction Settlement Date of Index of the
Related party Relationship related party related party Price (RMB transactions the transactions if
related party quota (RMB methods disclosure disclosure
transaction transaction ‘0000) of the same approved the Company
transaction ‘0000)
kind quota knows
Ltd. of Sinochem products to Related-Party
Holdings related Transactions in
parties the Ordinary
Course of
Business in 2026
(No.2025-42)
Announcement
on Expected
Selling raw
Under the Related-Party
materials and
same control Selling Market Cash December Transactions in
Sino MAP products to Market price 36 0.00% 3,888 No N/A
of Sinochem products price Settlement 23, 2025 the Ordinary
related
Holdings Course of
parties
Business in 2026
(No.2025-42)
Announcement
on Expected
Selling raw
Syngenta Under the Related-Party
materials and
Nantong Crop same control Selling Market Cash December Transactions in
products to Market price - - 1,670 No N/A
Protection of Sinochem products price Settlement 23, 2025 the Ordinary
related
Co.,Ltd. Holdings Course of
parties
Business in 2026
(No.2025-42)
Selling raw Announcement
Under the
materials and on Expected
Sinochem Agro same control Selling Market Cash December
products to Market price 68 0.00% 750 No N/A Related-Party
Co., Ltd. of Sinochem products price Settlement 23, 2025
related Transactions in
Holdings
parties the Ordinary
ADAMA Ltd. Semi-Annual Report 2026
Percentage Whether Market price of
Pricing Approved
Type of Content of Value against exceeds similar
principle of transaction Settlement Date of Index of the
Related party Relationship related party related party Price (RMB transactions the transactions if
related party quota (RMB methods disclosure disclosure
transaction transaction ‘0000) of the same approved the Company
transaction ‘0000)
kind quota knows
Course of
Business in 2026
(No.2025-42)
Announcement
on Expected
Selling raw
Sinochem Crop Under the Related-Party
materials and
Protection same control Selling Market Cash December Transactions in
products to Market price - - 500 No N/A
Products Co., of Sinochem products price Settlement 23, 2025 the Ordinary
related
Ltd. Holdings Course of
parties
Business in 2026
(No.2025-42)
Announcement
on Expected
Selling raw
Sinochem Hebei Under the Related-Party
materials and
Fuding Chemical same control Selling Market Cash December Transactions in
products to Market price 15 0.00% - - N/A
Technology Co., of Sinochem products price Settlement 23, 2025 the Ordinary
related
Ltd. Holdings Course of
parties
Business in 2026
(No.2025-42)
Announcement
on Expected
Selling raw
Sinochem Under the Related-Party
materials and
Fertilizer same control Selling Market Cash December Transactions in
products to Market price 2,225 0.15% - - N/A
Company of Sinochem products price Settlement 23, 2025 the Ordinary
related
Limited Holdings Course of
parties
Business in 2026
(No.2025-42)
ADAMA Ltd. Semi-Annual Report 2026
Percentage Whether Market price of
Pricing Approved
Type of Content of Value against exceeds similar
principle of transaction Settlement Date of Index of the
Related party Relationship related party related party Price (RMB transactions the transactions if
related party quota (RMB methods disclosure disclosure
transaction transaction ‘0000) of the same approved the Company
transaction ‘0000)
kind quota knows
Announcement
on Expected
Selling raw
Beijing Under the Related-Party
materials and
Guangyuan same control Selling Market Cash December Transactions in
products to Market price 8 0.00% - - N/A
Yinong Chemical of Sinochem products price Settlement 23, 2025 the Ordinary
related
Co., LTD Holdings Course of
parties
Business in 2026
(No.2025-42)
Announcement
on Expected
Sinochem Under the Receiving Related-Party
Information same control services from Market Cash December Transactions in
IT services Market price 31 0.00% 113 No N/A
Technology Co., of Sinochem related price Settlement 23, 2025 the Ordinary
Ltd. Holdings parties Course of
Business in 2026
(No.2025-42)
Announcement
on Expected
Shenyang
Under the Receiving Related-Party
Shenhua
same control services from Field Trials Market Cash December Transactions in
Institute Testing Market price 33 0.00% 46 No N/A
of Sinochem related expense price Settlement 23, 2025 the Ordinary
Technology Co.
Holdings parties Course of
Ltd.
Business in 2026
(No.2025-42)
Waste Market Cash December Announcement
Taicang Under the Receiving Market price 27 0.00% 38 No N/A
disposal fee price Settlement 23, 2025 on Expected
Zhonglan same control services from
ADAMA Ltd. Semi-Annual Report 2026
Percentage Whether Market price of
Pricing Approved
Type of Content of Value against exceeds similar
principle of transaction Settlement Date of Index of the
Related party Relationship related party related party Price (RMB transactions the transactions if
related party quota (RMB methods disclosure disclosure
transaction transaction ‘0000) of the same approved the Company
transaction ‘0000)
kind quota knows
Environmental of Sinochem related Related-Party
Protection Holdings parties Transactions in
Technology the Ordinary
Service Co., LTD Course of
Business in 2026
(No.2025-42)
Announcement
on Expected
Beijing Century
Under the Receiving Related-Party
Chemsunny Property and
same control services from Market Cash December Transactions in
Property maintenances Market price - - 23 No N/A
of Sinochem related price Settlement 23, 2025 the Ordinary
Management ervice
Holdings parties Course of
Co.,Ltd.
Business in 2026
(No.2025-42)
Announcement
on Expected
Shenyang Under the Receiving Related-Party
Chemical same control services from Technical Market Cash December Transactions in
Market price 5 0.00% 19 No N/A
Research of Sinochem related service price Settlement 23, 2025 the Ordinary
Institute Co., Ltd. Holdings parties Course of
Business in 2026
(No.2025-42)
Shenyang Under the Receiving Announcement
Sinochem same control services from Regular Market Cash December on Expected
Market price - - 13 No N/A
Agrochemicals of Sinochem related service price Settlement 23, 2025 Related-Party
R&D Co., Ltd. Holdings parties Transactions in
the Ordinary
ADAMA Ltd. Semi-Annual Report 2026
Percentage Whether Market price of
Pricing Approved
Type of Content of Value against exceeds similar
principle of transaction Settlement Date of Index of the
Related party Relationship related party related party Price (RMB transactions the transactions if
related party quota (RMB methods disclosure disclosure
transaction transaction ‘0000) of the same approved the Company
transaction ‘0000)
kind quota knows
Course of
Business in 2026
(No.2025-42)
Announcement
on Expected
Under the Receiving Related-Party
same control services from Regular Market Cash December Transactions in
Sino MAP Market price - - 7 No N/A
of Sinochem related service price Settlement 23, 2025 the Ordinary
Holdings parties Course of
Business in 2026
(No.2025-42)
Announcement
Sinochem
on Expected
Zhoushan
Under the Receiving Related-Party
Hazardous
same control services from Training Market Cash December Transactions in
Chemicals Market price - - 4 No N/A
of Sinochem related expense price Settlement 23, 2025 the Ordinary
Emergency
Holdings parties Course of
Rescue Base
Business in 2026
Co., Ltd.
(No.2025-42)
Announcement
on Expected
Sinochem
Under the Receiving Related-Party
Shared Financial
same control services from Market Cash December Transactions in
Services IT service Market price - - 3 No N/A
of Sinochem related price Settlement 23, 2025 the Ordinary
(Shanghai) Co.,
Holdings parties Course of
LTD
Business in 2026
(No.2025-42)
ADAMA Ltd. Semi-Annual Report 2026
Percentage Whether Market price of
Pricing Approved
Type of Content of Value against exceeds similar
principle of transaction Settlement Date of Index of the
Related party Relationship related party related party Price (RMB transactions the transactions if
related party quota (RMB methods disclosure disclosure
transaction transaction ‘0000) of the same approved the Company
transaction ‘0000)
kind quota knows
Announcement
on Expected
Huaxia Hanhua Under the Receiving Related-Party
Chemical same control services from Regular Market Cash December Transactions in
Market price 3 0.00% - - N/A
Equipment Co., of Sinochem related services price Settlement 23, 2025 the Ordinary
LTD Holdings parties Course of
Business in 2026
(No.2025-42)
Announcement
on Expected
Under the Receiving Related-Party
Zhonglan Lianhai
same control services from Regular Market Cash December Transactions in
Design Institute Market price 11 0.00% - - N/A
of Sinochem related services price Settlement 23, 2025 the Ordinary
Co., Ltd.
Holdings parties Course of
Business in 2026
(No.2025-42)
Announcement
on Expected
Under the Receiving Related-Party
Syngenta A.G.
same control services from Regular Market Cash December Transactions in
and its Market price 79 0.01% - - N/A
of Sinochem related services price Settlement 23, 2025 the Ordinary
subsidiaries
Holdings parties Course of
Business in 2026
(No.2025-42)
Total -- -- 94,970 -- 315,293 -- -- -- -- --
ADAMA Ltd. Semi-Annual Report 2026
Percentage Whether Market price of
Pricing Approved
Type of Content of Value against exceeds similar
principle of transaction Settlement Date of Index of the
Related party Relationship related party related party Price (RMB transactions the transactions if
related party quota (RMB methods disclosure disclosure
transaction transaction ‘0000) of the same approved the Company
transaction ‘0000)
kind quota knows
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
course of business whose value was expected by types
Course of Business in 2026 (No.: 2025-42). The Company’s actual amount of daily related party transactions defined in the listing rules incurred
during this reporting period (if any)
for the six months ended June 30,2026 is RMB 949.70 million, which does not exceed the expected amount.
Reasons for large difference between transaction price The Company’s related transactions with related party shall be carried out in accordance with the principle of voluntary, equality and mutual benefit,
and market reference price (if applicable) fair, and will not harm the interests of the Company.
ADAMA Ltd. Semi-Annual Report 2026
□ Applicable √ Not applicable
The Company was not involved in any related-party transactions arising from asset/equity acquisition or
sale during the Reporting Period.
□ Applicable √ Not applicable
The Company was not involved in any related-party transaction with joint investments during the
Reporting Period.
√ 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.
√ 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., 150,000 0.25%-3.7% 91,288 14,192 28,658 76,822
of Sinochem
Ltd
Holdings
ADAMA Ltd. Semi-Annual Report 2026
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., 200,000 2.11% 20,964 11,285 7,285 24,964
of Sinochem
Ltd
Holdings
□ Applicable √ Not applicable
The Company does not hold any equity interest in any finance company.
√Applicable □Not applicable
The 18th Meeting of the 10th Session of the Board of Directors and the 2025 Annual General Meeting
approved the Proposal on Consolidation of Credit Facilities from the Related Party.
The website to disclose the interim announcements on significant related-party transactions:
Name of the interim Disclosure date of the interim Website to disclose the interim
announcement announcement announcement
Announcement on Consolidation of
Credit Facilities from the Related March 28, 2026 Juchao website www.cninfo.com.cn
Party (Announcement No. 2026-10)
XII. Particulars regarding material contracts and execution thereof
(1) Trusteeship
√Applicable □Not applicable
Explanation on Trusteeship
On December 31, 2021, the Company entered into an Entrusted Operation and Management Agreement
with CNAC. Pursuant to this Agreement, during the 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), Announcement on the Resolution of the 29th Meeting of the 9th Board of Directors
ADAMA Ltd. Semi-Annual Report 2026
(Announcement No. 2023-46), and the Announcement on the Resolution of the 8th Meeting of the 10th
Board of Directors (Announcement No. 2024-59) and the Announcement on the Progress of Related
Party Transaction (Announcement No. 2025-37).
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
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.
ADAMA Ltd. Semi-Annual Report 2026
(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)
Planned Actual Actual Counter Guarantee for
Guaranteed Disclosure date of Type of Collateral（if Period of expired
guarantee occurrence guarantee Guarantee（if a related
party the announcement guarantee any） guarantee or not
amount date amount any） party or not
-- -- -- -- -- -- -- -- -- -- --
Total guarantee line approved in favor of third Total amount of the occurred guarantee in favor of
parties (excluding subsidiaries) during the 0 third parties (excluding subsidiaries) during the 0
reporting period (A1) reporting period (A2)
Aggregated guarantee line in favor of third parties Total guarantee balance in favor of third parties
(excluding subsidiaries) that has been approved 5,000 (excluding subsidiaries) by the end of the reporting 0
by the end of the reporting period (A3) period (A4)
Guarantees provided by the Company in favor of its subsidiaries
Planned Actual Actual Counter Guarantee for
Guaranteed Disclosure date of Type of Collateral（if Period of expired
guarantee occurrence guarantee Guarantee（if a related
party the announcement guarantee any） guarantee or not
amount date amount any） party or not
Three years
Joint and
February 28, after the
liability
matures
December 22, 2020
ADAMA Anpon Three years
April 29, 2021 125,800 Joint and
(Jiangsu) Ltd. February 28, after the
October28,2021 360 several / / Yes No
liability
matures
Joint and Three years
April 28, 2022 928 / / No No
several after the
ADAMA Ltd. Semi-Annual Report 2026
liability project loan
matures
Three years
Joint and
after the
April 28, 2022 240 several / / Yes No
project loan
liability
matures
Three years
Joint and
after the
May 20, 2022 497 several / / No No
project loan
liability
matures
Three years
Joint and
after the
May 20, 2022 129 several / / Yes No
project loan
liability
matures
Three years
Joint and
after the
June 26, 2022 1,557 several / / No No
project loan
liability
matures
Three years
Joint and
after the
June 26, 2022 403 several / / Yes No
project loan
liability
matures
Three years
Joint and
after the
August 11, 2022 700 several / / No No
project loan
liability
matures
March 31, 2022 104,100
Three years
Joint and
after the
August 31, 2022 1,000 several / / No No
project loan
liability
matures
ADAMA Ltd. Semi-Annual Report 2026
Three years
Joint and
October 28, after the
liability
matures
Three years
Joint and
October 31, after the
liability
matures
Three years
Joint and
October 31, after the
liability
matures
Three years
Joint and
November 23, after the
liability
matures
Three years
Joint and
November 30, after the
liability
matures
Three years
Joint and
November 30, after the
liability
matures
Three years
Joint and
January 12, after the
liability
matures
January 16, Joint and Three years
ADAMA Ltd. Semi-Annual Report 2026
liability project loan
matures
Three years
Joint and
after the
April 4, 2023 1,200 several / / No No
project loan
liability
matures
Three years
Joint and
after the
April 26, 2023 150 several / / No No
project loan
liability
matures
Three years
Joint and
October 17, after the
liability
matures
Three years
Joint and
October 17, after the
liability
matures
Three years
Joint and
October 17, after the
liability
matures
Three years
Joint and
January 30, after the
liability
matures
Three years
Joint and
February 7, after the
liability
matures
ADAMA Ltd. Semi-Annual Report 2026
Joint and Three years
April 10, 2024 5,000 several / / after the loan No No
liability matures
March 27, 2024 36,000
Joint and Three years
March 25, 2025 2,900 several / / after the loan No No
liability matures
Joint and Three years
July 25, 2025 877 several / / after the loan Yes No
liability matures
Joint and Three years
August 15, 2025 447 several / / after the loan Yes No
liability matures
Joint and Three years
September 12,
liability matures
Joint and Three years
September 12,
liability matures
April 29, 2025 16,000
Joint and Three years
September 5,
liability matures
Joint and Three years
December 24,
liability matures
Joint and Three years
December 26,
liability matures
Joint and Three years
December 26,
liability matures
ADAMA Ltd. Semi-Annual Report 2026
Joint and Three years
January 27,
liability matures
Joint and Three years
February 10,
liability matures
Joint and Three years
March 16, 2026 1,170 several / / after the loan No No
liability matures
Joint and Three years
March 15, 2026 1,969 several / / after the loan No No
liability matures
Joint and Three years
June 29, 2026 951 several / / after the loan No No
liability matures
Joint and Three years
January 1,
liability matures
Joint and Three years
May 20, 2026 2,000 several / / after the loan No No
liability matures
Joint and Three years
January 28,
liability matures
Joint and Three years
April 10, 2026 600 several / / after the loan No No
liability matures
Total guarantee line approved in
Total amount of the occurred guarantee in favor of the subsidiaries
favor of the subsidiaries during the 0 11,401
during the reporting period (B2)
reporting period (B1)
ADAMA Ltd. Semi-Annual Report 2026
Aggregated guarantee line that has
been approved in favor of the Total guarantee balance in favor of the subsidiaries by the end of the
subsidiaries by the end of the reporting period (B4)
reporting period (B3)
Guarantees provided by subsidiaries in favor of subsidiaries (USD ’0000)
Planned Actual Actual Counter Guarantee for
Guaranteed Disclosure date of Type of Collateral（if Period of expired
guarantee occurrence guarantee Guarantee（if a related
party the announcement guarantee any） guarantee or not
amount date amount any） party or not
Related
guarantees
existed before
the company joint and
Valid until
ADAMA Brazil Not applicable 10,243 was 0 several / / No No
cancelled
consolidated liability
into the financial
statements of
the Company.
joint and
December
ADAMA Brazil December 19, 2024 10,000 January 4, 2025 1,300 several / / No No
liability
joint and
December
ADAMA Brazil December 19, 2024 2,000 January 4, 2025 0 several / / No No
liability
Related
guarantees
existed before joint and
Adama India Valid until
Not applicable 8,673 the company 476 several / / No No
Private Ltd. cancelled
was liability
consolidated
into the financial
ADAMA Ltd. Semi-Annual Report 2026
statements of
the Company.
Related
guarantees
existed before
ADAMA Turkey
the company joint and
Tar?m Sanayi ve Valid until
Not applicable 7,150 was 0 several / / No No
Ticaret Limited cancelled
consolidated liability
?irketi
into the financial
statements of
the Company.
Related
guarantees
existed before
the company joint and
Adama Valid until
Not applicable unlimited was 19,155 several / / No No
Makhteshim cancelled
consolidated liability
into the financial
statements of
the Company.
joint and
Adama Valid until
April 25, 2023 7,875 May 3, 2023 0 several / / No No
Makhteshim cancelled
liability
Related
guarantees
existed before joint and
Valid until
Adama Agan Not applicable unlimited the company 7,605 several / / No No
cancelled
was liability
consolidated
into the financial
ADAMA Ltd. Semi-Annual Report 2026
statements of
the Company.
ADAMA
joint and
Agricultural January 22, Valid until
January 22, 2022 452 59 several / / No No
Solutions UK 2022 cancelled
liability
Ltd.
ADAMA
CELSIUS BV,
Curacao joint and
November 24, Valid until
branch, & November 25, 2022 4,500 0 several / / No No
ADAMA liability
Fahrenheit BV,
Curacao Branch
ADAMA
CELSIUS BV,
Curacao joint and
January 22, Valid until
branch, & January 22, 2022 7,000 6,083 several / / No No
ADAMA liability
Fahrenheit BV,
Curacao Branch
Related
guarantees
existed before
the company joint and
ADAMA Ukraine Valid until
Not applicable 1,500 was 0 several / / No No
LLC cancelled
consolidated liability
into the financial
statements of
the Company.
ADAMA Ltd. Semi-Annual Report 2026
joint and
ADAMA Ukraine October 10, 2023 October 28, Valid until
LLC October 30, 2025 2023 cancelled
liability
joint and
ADAMA Ukraine February 3, Valid until
December 19, 2024 800 0 several / / No No
LLC 2025 cancelled
liability
joint and
ADAMA Ukraine December 11, Valid until
October 30, 2025 1,612 845 several / / No No
LLC 2025 cancelled
liability
Related
guarantees
existed before
Makhteshim the company joint and
Valid until
Agan of North Not applicable 4,000 was 0 several / / No No
cancelled
America Inc. consolidated liability
into the financial
statements of
the Company.
Six months
Makhteshim joint and after the
September 26,
Agan of North September 28, 2024 4,543 4,543 several / / termination of No No
America Inc. liability the principal
agreement
joint and
Adama Australia December 23, Valid until
December 19, 2024 426 247 several / / No No
Pty Ltd. 2024 cancelled
liability
Total guarantee line approved in
Total amount of the guarantee in favor of the 41,038（approximately RMB 2,795.06
favor of the subsidiaries during the 0
subsidiaries occurred during the reporting period (C2) million）
reporting period (C1)
Aggregated guarantee line that has 72,203 (approximately RMB Total guarantee balance in favor of the subsidiaries by 41,038（approximately RMB 2,795.06
ADAMA Ltd. Semi-Annual Report 2026
been approved in favor of the 4,917.67 million) (the guarantee the end of the reporting period (C4) million）
subsidiaries by the end of the amount for Adama Makhteshim
reporting period (C3) and Adama Agan is unlimited)
Total guarantee amount provided by the Company (total of the above-mentioned three kinds of guarantees)
Total guarantee line approved
Total actual occurred amount of guarantee during the
during the reporting period 0 290,907
reporting period (A2+B2+C2)
(A1+B1+C1)
Total guarantee line that has been
approved at the end of the Total actual guarantee balance at the end of the
reporting period reporting period (A4+B4+C4)
(A3+B3+C3)
Proportion of total guarantee amount (A4+B4+C4) to the net
assets of the Company
Of which:
The balance of the guarantee provided in favor of the controlling
shareholder and related party
Amount of debt guarantee provided for the guaranteed party
USD 360.19 million
whose asset-liability ratio is not less than 70% directly or
(approximately RMB 2,453.22 million)
indirectly (E)
The amount of the guarantee that exceeds 50% of the net assets 0
USD 360.19 million
Total amount of the above three guarantees (D+E+F)
(approximately RMB 2,453.22 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) --
ADAMA Ltd. Semi-Annual Report 2026
□ Applicable √ Not applicable
No such cases in the Reporting Period.
□ Applicable √ Not applicable
None during the Reporting Period.
XIII. Information regarding communication with investors during the Reporting
Period
√ Applicable □ Not applicable
Type Name of
Reception
Date Place of the About Index
Mode
Visitors Visitors
Introduction on Q4 Record of the
performance as well as between the
The live
the Fight Forward plan Company and the
Live webcast
March of the Company. The Investors (No.
Online webcast was
Platform at online accessible
Platform for all
published on the Company on
investors.
website of the March 31st, 2026,
Company (IR page on at
www.adama.com). www.cninfo.com.cn
Record of the
Introduction on Q1 Communications
The live 2026 performance. between the
Live webcast The corresponding Company and the
May
Online webcast was presentation was Investors (No.
Platform at online accessible published on the 2026-02) was
Platform for all website of the published by the
investors. Company (IR page on Company on May
www.adama.com). 7th, 2026, at
www.cninfo.com.cn
XIV. Other Significant Events
□ Applicable√ Not applicable
ADAMA Ltd. Semi-Annual Report 2026
XV. Significant Events of Subsidiaries
□ Applicable √ Not applicable
ADAMA Ltd. Semi-Annual Report 2026
Section VI - Share Changes and Shareholders
I. 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%
Among which, Shares Held by Domestic
Legal Person
Shares Held by Domestic Natural
Person
II. Shares not Subject to Trading
Moratorium
III. Total Shares 2,329,811,766 100.00% -- -- -- -- -- 2,329,811,766 100.00%
ADAMA Ltd. Semi-Annual Report 2026
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
□Applicable √Not applicable
II. Issuance and Listing of Securities
□ Applicable √ Not applicable
ADAMA Ltd. Semi-Annual Report 2026
III. Total Number of Shareholders and Their Shareholdings
Unit: share
Total Number of Preferred
Total Number of Common 38,049 (the number of ordinary A share
Stockholders with Vote Right
Shareholders as of the End of shareholders is 26,995; the number of B 0
Restored (if any) as of the End of the
the Reporting Period share shareholders is 11,054)
Reporting Period
Shareholding of Top 10 Shareholders or Those Holding More than 5% Shares
(Excluding the Shares Lending through Refinancing)
Number Pledged, Marked
Holdin Number of Change of of Shares Number of or Frozen Shares
g Shareholding Shares Held Shares Held
Nature of
Number of Shareholder Percen at the End of during the Subject to Not Subject Status
Shareholder
tage the Reporting Reporting Trading to Trading of Amount
(%) Period Period Moratoriu Moratorium Shares
m
State-owned
Syngenta Group Co., Ltd. 78.47% 1,828,137,961 0 0 1,828,137,961 -- 0
Legal Person
China State-owned Enterprises
State-owned
Structural Adjustment Fund Co., 1.44% 33,557,046 0 0 33,557,046 -- 0
Legal Person
Ltd.
Hong Kong Securities Clearing Overseas
Company Ltd. (HKSCC) Legal Person
Domestic
Zhu Shenglan Natural 0.33% 7,600,000 240,000 0 7,600,000 -- 0
Person
Domestic
Wu Feng Natural 0.31% 7,266,212 -544,700 0 7,266,212 -- 0
Person
Qichun County State-owned State-owned
Assets Center Legal Person
Domestic
Share
Liu Minqin Natural 0.17% 4,042,546 86,300 0 4,042,546 456,553
Freeze
Person
CHINA INTERNATIONAL
Overseas
CAPITAL CORPORATION 0.13% 2,966,041 0 0 2,966,041 -- 0
Legal Person
HONG KONG SECURITIES LTD
GUOTAI JUNAN SECURITIES Overseas
(HONG KONG) LIMITED Legal Person
Domestic
Fu Kelv Natural 0.12% 2,687,692 293,790 0 2,687,692 - 0
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 Companies.
Relationship or/and Persons
It is unknown whether the other shareholders are related parties or acting-in-concert parties as
ADAMA Ltd. Semi-Annual Report 2026
prescribed in the Administrative Methods for Acquisition of Listed Companies.
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
Not applicable
Accounts among the Top 10
Shareholders (if any)
Details of Shares Held by Top 10 Shareholders Not Subject to Trading Moratorium (Excluding Shares Lending through
Refinancing and Restricted Shares of Executives)
Number of Shares Held Type of Shares
Not Subject to Trading
Number of Shareholders
Moratorium at the End of Type of Shares Amount
the Period
Syngenta Group Co., Ltd. 1,828,137,961 RMB Ordinary Share 1,828,137,961
China State-owned Enterprises Structural Adjustment
Fund Co., Ltd.
Hong Kong Securities Clearing Company Ltd. (HKSCC) 8,526,188 RMB Ordinary Share 8,526,188
Zhu Shenglan 7,600,000 RMB Ordinary Share 7,600,000
Wu Feng 7,266,212 RMB Ordinary Share 7,266,212
Qichun County State-owned Assets Center 4,169,266 RMB Ordinary Share 4,169,266
Liu Minqin 4,042,546 RMB Ordinary Share 4,042,546
CHINA INTERNATIONAL CAPITAL CORPORATION Domestically Listed Share
HONG KONG SECURITIES LTD in Foreign Currencies
Domestically Listed Share
GUOTAI JUNAN SECURITIES (HONG KONG) LIMITED 2,953,397 2,953,397
in Foreign Currencies
Fu Kelv 2,687,692 RMB Ordinary Share 2,687,692
Explanation on associated relationship among the Syngenta Group Co., Ltd. is neither a related party to any other shareholders
top 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 parties
subject to trading moratorium and top ten as prescribed in the Administrative Methods for Acquisition of Listed
shareholders, or explanation on acting-in-concert Companies.
Shareholder Wu Feng held 4,329,686 shares of the Company through a
common securities account and 2,936,526 shares of the Company through a
credit collateral securities trading account, altogether 7,266,212 shares.
Particular about the top ten common shareholder
Shareholder Liu Minqin held 613,846 shares of the Company through a
participating in the securities lending and borrowing
common securities account and 3,428,700 shares of the Company through a
business (if any)
credit collateral securities trading account, altogether 4,042,546 shares.
Shareholder Fu Kelv held 2,687,692 shares of the Company through a credit
collateral securities trading account.
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
ADAMA Ltd. Semi-Annual Report 2026
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 and Senior Management
□ Applicable √ Not applicable
No such cases in the Reporting Period. For details, see Annual Report 2025.
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.
ADAMA Ltd. Semi-Annual Report 2026
Section VII - Bonds
□ Applicable √ Not applicable
ADAMA Ltd. Semi-Annual Report 2026
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.
ADAMA Ltd. Semi-Annual Report 2026
(Expressed in RMB '000)
Consolidated Balance Sheet
June 30 December 31
Notes 2026 2025
Current assets
Cash at bank and on hand V.1 2,906,052 3,450,300
Financial assets held for trading V.2 2,711 1,223
Derivative financial assets V.3 228,492 449,379
Bills receivable V.4 256,325 358,489
Accounts receivable V.5 7,781,302 7,124,736
Receivables financing V.6 78,314 30,767
Prepayments V.7 309,064 368,012
Other receivables V.8 776,266 1,076,164
Inventories V.9 11,280,787 11,607,842
Other current assets V.10 965,692 1,094,273
Total current assets 24,585,005 25,561,185
Non-current assets
Long-term receivables V.11 203,183 118,203
Long-term equity investments V.12 42,820 39,312
Other equity investments V.13 127,475 129,796
Investment properties 18,053 18,869
Fixed assets V.14 9,635,349 10,073,551
Construction in progress V.15 713,670 897,175
Right-of-use assets V.16 562,738 661,443
Intangible assets V.17 3,981,086 4,302,343
Goodwill V.18 4,814,486 4,964,450
Deferred tax assets V.19 1,526,168 1,294,176
Other non-current assets V.20 439,056 403,459
Total non-current assets 22,064,084 22,902,777
Total assets 46,649,089 48,463,962
ADAMA Ltd. Semi-Annual Report 2026
(Expressed in RMB '000)
Consolidated Balance Sheet (continued)
June 30 December 31
Notes 2026 2025
Current liabilities
Short-term loans V.21 5,763,384 6,673,792
Derivative financial liabilities V.22 249,837 189,581
Bills payable V.23 605,314 622,660
Accounts payable V.24 5,048,131 5,461,749
Contract liabilities V.25 1,515,640 1,789,490
Employee benefits payable V.26 734,607 936,724
Taxes payable V.27 571,720 539,168
Other payables V.28 1,523,019 1,418,093
Non-current liabilities due within one year V.29 3,794,710 3,825,203
Other current liabilities V.30 898,096 929,259
Total current liabilities 20,704,458 22,385,719
Non-current liabilities
Long-term loans V.31 1,152,479 1,507,514
Debentures payable V.32 5,138,114 4,894,076
Lease liabilities V.33 652,730 751,226
Long-term payables 153,307 164,735
Long-term employee benefits payable V.34 559,208 536,895
Provisions V.35 421,488 424,347
Deferred tax liabilities V.19 231,286 224,024
Other non-current liabilities V.36 - -
Total non-current liabilities 8,308,612 8,502,817
Total liabilities 29,013,070 30,888,536
Shareholders' equity
Share capital V.37 2,329,812 2,329,812
Capital reserve V.38 12,867,123 12,867,123
Other comprehensive income V.39 1,218,425 1,570,748
Special reserves 8,705 6,156
Surplus reserve V.40 298,610 298,610
Retained earnings V.41 913,344 502,977
Total equity attributed to the shareholders 17,636,019 17,575,426
of the company
Non-controlling interests - -
Total Equity 17,636,019 17,575,426
Total liabilities and equity 46,649,089 48,463,962
Gael Hili Efrat Nagar
Legal representative Chief Financial Officer
These financial statements were approved by the Board of Directors of the Company on August 17, 2026.
The notes form part of these financial statements.
ADAMA Ltd. Semi-Annual Report 2026
(Expressed in RMB '000)
Company's Balance Sheet
June 30 December 31
Notes 2026 2025
Current assets
Cash at bank and on hand XV.1 152,578 64,964
Bills receivable 74,268 112,369
Accounts receivable XV.2 2,005,930 1,636,608
Receivables financing XV.3 26,915 10,490
Prepayments 24,350 92,227
Other receivables XV.4 23,722 26,434
Inventories 169,629 210,072
Other current assets 53,046 14,923
Total current assets 2,530,438 2,168,087
Non-current assets
Long-term equity investments XV.5 17,430,716 17,430,716
Other equity investments 54,299 54,299
Investment properties 1,248 1,522
Fixed assets 1,181,097 1,252,804
Construction in progress 25,474 10,184
Right-of-use assets 790 1,354
Intangible assets 221,238 227,391
Deferred tax assets 34,870 46,359
Other non-current assets 242,671 230,156
Total non-current assets 19,192,403 19,254,785
Total assets 21,722,841 21,422,872
Current liabilities
Short-term loans 626,532 418,692
Bills payables 213,636 155,220
Accounts payables 258,330 280,455
Contract liabilities 10,458 21,420
Employee benefits payable 5,678 9,800
Taxes payable 2,677 3,171
Other payables 770,039 778,254
Non-current liabilities due within one year 19,631 13,930
Other current liabilities 116,585 116,585
Total current liabilities 2,023,566 1,797,527
Non-current liabilities
Long-term loans 631,000 642,000
Lease liabilities 162 443
Long-term employee benefits payable 61,320 63,175
Provisions 24,615 24,871
Total non-current liabilities 717,097 730,489
Total liabilities 2,740,663 2,528,016
Shareholders’ equity
Share capital V.37 2,329,812 2,329,812
Capital reserve 15,523,881 15,523,881
Other comprehensive income 24,916 24,916
Special reserves 9,396 6,847
Surplus reserve V.40 298,610 298,610
Retained earnings 795,563 710,790
Total shareholders’ equity 18,982,178 18,894,856
Total liabilities and shareholders’ equity 21,722,841 21,422,872
ADAMA Ltd. Semi-Annual Report 2026
(Expressed in RMB '000)
Consolidated Income Statement
Six months ended June 30
Notes 2026 2025
I. Operating income V.42 14,476,540 15,024,200
Less: Cost of sales V.42 10,523,330 11,030,173
Taxes and surcharges V.43 46,920 57,128
Selling and Distribution expenses V.44 2,038,063 1,975,668
General and administrative expenses V.45 602,039 734,867
Research and 211,350 216,793
Development expenses V.46
Financial expenses V.47 1,023,706 1,024,340
Including: Interest expense 462,779 527,096
Interest income 76,612 101,281
Add: Investment income, net V.48 6,593 5,261
Including: Income from investment
in associates and joint ventures 6,593 5,261
Gain (loss) from changes in fair value V.49 213,451 (6,493)
Credit impairment losses V.50 (28,205) (93,679)
Asset impairment losses V.51 (152,029) (27,617)
Gain from disposal of assets V.52 306,349 5,054
II. Operating income (loss) 377,291 (132,243)
Add: Non-operating income 94,399 19,219
Less: Non-operating expenses 79,305 12,555
III. Total income (loss) 392,385 (125,579)
Less: Income tax expenses (income) V.53 (40,182) (45,227)
IV. Net income (loss) 432,567 (80,352)
(1). Classified by nature of operations
(1.1). Continuing operations 432,567 (80,352)
(2). Classified by ownership
(2.1). Shareholders of the Company 432,567 (80,352)
(2.2). Non-controlling interests - -
V. Other comprehensive income (loss), net of tax V. 39 (352,323) 71,116
Other comprehensive income (loss) (net of tax)
attributable to shareholders of the Company (352,323) 71,116
(1) Items that will not be reclassified to profit or loss: (2,167) 979
(1.1) Re-measurement of defined benefit plan liability (2,167) 979
(1.2) Fair Value changes in other equity investment - -
(2) Items that were or will be reclassified to profit or loss (350,156) 70,137
(2.1) Effective portion of gains or loss of cash flow 45,686 (48,355)
hedge
(2.2) Translation differences of foreign financial (395,842) 118,492
statements
VI. Total comprehensive income (loss) for the period attributable to 80,244 (9,236)
Shareholders of the Company
Total comprehensive (loss) for the period 80,244 (9,236)
attributable to shareholders of the Company
Total comprehensive income for the period - -
attributable to Non-controlling interests
VII. Earnings per share XIV.3
(1) Basic earnings (loss) per share (Yuan/share) 0.19 (0.03)
(2) Diluted earnings per share (Yuan/share) N/A N/A
ADAMA Ltd. Semi-Annual Report 2026
(Expressed in RMB '000)
Company's Income Statement
Six months ended June 30
Notes 2026 2025
I. Operating income XV.6 1,179,597 1,094,572
Less: Operating costs XV.6 963,743 879,975
Taxes and surcharges 4,595 7,663
Selling and Distribution expenses 5,009 2,185
General and administrative expenses 60,247 105,840
Research and Development expenses 10,956 664
Financial expenses 58,952 13,170
Including: Interest expense 13,058 14,052
Interest income 1,939 1,019
Add: Investment income, net 20,301 32,445
Gain from changes in fair value (“-” means loss) - 30,714
Credit impairment losses (90) (1,084)
Asset Impairment losses (2,099) (3,362)
Gain from disposal of assets - 3,607
II. Operating Profit 94,207 147,395
Add: Non-operating income 2,083 4,225
Less: Non-operating expenses 28 20
III. Total profit 96,262 151,600
Less: Income tax expense 11,489 21,449
IV. Net profit 84,773 130,151
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 for the period 84,773 130,151
ADAMA Ltd. Semi-Annual Report 2026
(Expressed in RMB '000)
Consolidated Cash Flow Statement
Six months ended June 30
Notes 2026 2025
I. Cash flows from operating activities:
Cash received from sale of goods and rendering of services 13,018,653 14,968,968
Refund of taxes and surcharges 69,659 90,510
Cash received relating to other operating activities V.56(1) 234,064 75,142
Sub-total of cash inflows from operating activities 13,322,376 15,134,620
Cash paid for goods and services 8,920,011 9,451,146
Cash paid to and on behalf of employees 2,212,852 1,999,080
Payments of taxes and surcharges 270,755 289,600
Cash paid relating to other operating activities V.56(2) 1,248,849 1,656,216
Sub-total of cash outflows from operating activities 12,652,467 13,396,042
Net cash flows provided by operating activities V.57(1)a 669,909 1,738,578
II. Cash flows from investing activities:
Cash received from disposal of investments 150,917 41,370
Cash received from returns of investments 2,325 -
Net cash received from disposal of fixed assets, intangible
assets and other long-term assets 464,112 17,493
Sub-total of cash inflows from investing activities 617,354 58,863
Cash paid to acquire fixed assets, intangible assets and
other long-term assets 479,402 589,861
Net cash paid to acquire subsidiaries or other business units - 56,272
Cash paid relating to other investing activities V.56(3) 631 47,825
Sub-total of cash outflows from investing activities 480,033 693,958
Net cash flows provided by (used in) investing activities 137,321 (635,095)
III. Cash flows from financing activities:
Cash received from borrowings 959,512 1,625,222
Cash received from other financing activities V.56(4) 778,828 1,082,504
Sub-total of cash inflows from financing activities 1,738,340 2,707,726
Cash repayments of borrowings 2,311,558 3,107,377
Cash payment for dividends, profit distributions and interest 475,346 527,153
Including: Dividends paid to non-controlling interest 22,200 74,170
Cash paid relating to other financing activities V.56(5) 202,602 440,257
Sub-total of cash outflows from financing activities 2,989,506 4,074,787
Net cash flow used in financing activities (1,251,166) (1,367,061)
IV. Effects of foreign exchange rate changes on cash and cash
equivalent
equivalent (90,358) (4,700)
V. Net decrease in cash and cash equivalents V.57(1)b (534,294) (268,278)
Add: Cash and cash equivalents at the beginning of the year 3,353,326 3,583,963
I. VI. Cash and cash equivalents at the end of the period V.57(2) 2,819,032 3,315,685
ADAMA Ltd. Semi-Annual Report 2026
(Expressed in RMB '000)
Company's Cash Flow Statement
Six months ended June 30
Notes 2026 2025
I. Cash flows from operating activities:
Cash received from sale of goods and rendering of services 481,456 650,459
Refund of taxes and surcharges 9,757 32,238
Cash received relating to other operating activities XV.7(1) 5,034 15,324
Sub-total of cash inflows from operating activities 496,247 698,021
Cash paid for goods and services 236,511 413,963
Cash paid to and on behalf of employees 61,073 64,712
Payments of taxes and surcharges 11,480 9,317
Cash paid relating to other operating activities XV.7(2) 112,893 23,927
Sub-total of cash outflows from operating activities 421,957 511,919
Net cash flows provided by operating activities XV.8 74,290 186,102
II. Cash flows from investing activities:
Cash received from returns of investments 22,626 32,445
Net cash received from disposal of fixed assets, intangible assets and other
long-term assets - 11,210
Cash received relating to other investing activities XV.7.(3) 757 803
Sub-total of cash inflows from investing activities 23,383 44,458
Cash paid to acquire fixed assets, intangible assets and
other long-term assets 21,109 9,369
Cash paid for other investing activities XV.7.(4) 20,000 -
Sub-total of cash outflows from investing activities 41,109 9,369
Net cash flows provided by (used in) investing activities (17,726) 35,089
III. Cash flows from financing activities:
Cash received from borrowings 201,000 300,000
Cash received relating to other financing activities XV.7.(5) 4,500 1,858
Sub-total of cash inflows from financing activities 205,500 301,858
Cash repayments of borrowings 155,000 473,046
Cash payment for dividends, profit distributions or interest 13,073 14,395
Cash paid relating to other financing activities XV.7.(6) 12,172 14,246
Sub-total of cash outflows from financing activities 180,245 501,687
Net cash flow provided (used in) financing activities 25,255 (199,829)
IV. Effects of foreign exchange rate changes on cash and cash equivalents (1,877) 4,965
V. Net increase in cash and cash equivalents 79,942 26,327
Add: Cash and cash equivalents at the beginning of the year XV.8(2) 58,950 39,173
VI. Cash and cash equivalents at the end of the period XV.8(2) 138,892 65,500
ADAMA Ltd. Semi-Annual Report 2026
(Expressed in RMB '000)
Consolidated Statement of Changes in Shareholders’ Equity
For the Six months ended June 30, 2026
Other
Share Capital comprehensive Special Surplus Retained Non-controlling
capital reserve income reserves reserve earnings Total interests Total equity
I. Balance at December 31, 2025 2,329,812 12,867,123 1,570,748 6,156 298,610 502,977 17,575,426 - 17,575,426
II. Changes in equity for the period - - (352,323) 2,549 - 410,367 60,593 - 60,593
interest
III. Balance at June 30, 2026 2,329,812 12,867,123 1,218,425 8,705 298,610 913,344 17,636,019 - 17,636,019
ADAMA Ltd. Semi-Annual Report 2026
(Expressed in RMB '000)
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 2,329,812 12,950,464 1,721,028 10,798 298,610 1,680,382 18,991,094 - 18,991,094
II. Changes in equity for the period - - 71,116 (2,644) - (154,522) (86,050) - (86,050)
interest
III. Balance at June 30, 2025 2,329,812 12,950,464 1,792,144 8,154 298,610 1,525,860 18,905,044 - 18,905,044
ADAMA Ltd. Semi-Annual Report 2026
(Expressed in RMB '000)
Company's Statement of Changes in Shareholders’ Equity
For the Six months ended June 30, 2026
Other
Share Capital comprehensive Special Surplus Retained
capital reserve income reserves reserve earnings Total
I. Balance at December 31, 2025 2,329,812 15,523,881 24,916 6,847 298,610 710,790 18,894,856
II. Changes in equity for the period - - - 2,549 - 84,773 87,322
Ⅲ. Balance at June 30, 2026 2,329,812 15,523,881 24,916 9,396 298,610 795,563 18,982,178
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 2,329,812 15,523,881 23,894 11,489 298,610 779,972 18,967,658
II. Changes in equity for the period - - - (2,644) - 130,151 127,507
Ⅲ. Balance at June 30, 2025 2,329,812 15,523,881 23,894 8,845 298,610 910,123 19,095,165
ADAMA 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
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 17, 2026.
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
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 Regulatory
Commission (hereinafter "CSRC”) in 2023).
The Group has adopted the accrual basis of accounting.
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
II BASIS OF PREPARATION - (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.
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 30, 2026 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
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 June 30, 2026 and the Company's
consolidated operating results, changes in shareholders' equity and cash flows for the six months then ended.
The Group has adopted the calendar year as its accounting year, i.e. from 1 January to 31 December.
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.
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
Item Benchmark for Material Item
Individual construction in progress project with a budget higher than RMB
Material construction in progress projects
Material receivables assessed individually for
Individual impairment higher than RMB 150 million
impairment
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (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.
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.
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.
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (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.
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 present
separately 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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
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.
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”).
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.
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
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.
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.
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
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.
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
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;
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
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.
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.
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
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.
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).
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.
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
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%-2.81%.
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.
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.
The Group determines expected credit losses for other receivables on an individual basis.
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
The actual cost of inventories upon delivery is calculated using the weighted average method.
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.
Long-term equity investments include investments in subsidiaries, joint ventures and associates.
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
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.
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (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.
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).
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.
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
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.
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
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).
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).
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
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).
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
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.
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.
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
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.
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.
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
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.
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.
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.
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
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 Groups’s normal course of business are
included in non-operating gains.
The income tax expenses include current income tax and deferred 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.
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (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.
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
Lease is a contract, that conveys the right to use an asset for a period of time in exchange for consideration.
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.
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.
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.
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
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.
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (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.
Details of the securitization of asset agreements and accounting policy are set out in Note V.5 - Account
receivables.
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
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.
There are no significant changes in accounting policies in the reporting period.
There are no significant changes in accounting estimates in the reporting period.
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:
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
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.
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.
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
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.
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.
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
III SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - (cont’d)
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
IV. Taxation
The income tax rate in China is 25% (2025: 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 2026
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 2026 and 2025 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 Jiangsu
Provincial 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 2026 and 2025
is 15%.
(2) 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 in 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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
IV. Taxation - (cont’d)
(3) Amendment to the Law for the Encouragement of Capital Investments, 1959 - (cont’d)
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements
June 30 December 31
Cash on hand 1,091 1,107
Deposits in banks 2,817,941 3,352,219
Other cash and bank balances 87,020 96,974
Including cash and bank balances placed outside China 1,905,710 2,279,489
As at June 30, 2026 restricted cash and bank balances was 87,020 thousand RMB (as at December 31, 2025
June 30 December 31
Bank deposits 2,711 1,223
June 30 December 31
Economic hedge 164,551 401,091
Accounting hedge derivatives 63,941 48,288
June 30 December 31
Post-dated checks receivable 256,325 358,489
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements – (cont'd)
a. By category
June 30, 2026
Provision for expected
Book value credit losses
Percentage Carrying
Amount (%) Amount Percentage (%) amount
Account receivables assessed 676,529 8 353,127 52 323,402
individually for impairment
Account receivables assessed 7,573,420 92 115,520 2 7,457,900
collectively for impairment
December 31, 2025
Provision for expected
Book value credit losses
Carrying
Amount Percentage (%) Amount Percentage (%) amount
Account receivables assessed 617,676 8 350,083 57 267,593
individually for impairment
Account receivables assessed 6,968,418 92 111,275 2 6,857,143
collectively for impairment
b. Aging analysis
June 30, 2026
Within 1 year (inclusive) 7,684,583
Over 1 year but within 2 years 307,110
Over 2 years but within 3 years 51,960
Over 3 years but within 4 years 19,636
Over 4 years but within 5 years 25,446
Over 5 years 161,214
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements – (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, 2026
Provision for expected
Book value credit loss Percentage (%)
Credit group A 1,340,303 5,097 0.4
Credit group B 481,517 7,434 1.5
Credit group C 367,692 10,329 2.8
Credit group D 66,135 250 0.4
Geographical location B:
Account receivables in geographical location B are grouped based on aging analysis:
June 30, 2026
Provision for expected
Book value credit loss Percentage (%)
Accounts receivable that are not overdue 529,483 7,486 1.4
Debts overdue less than 90 days 39,072 1,141 2.9
Debts overdue less than 180 days but 18,372 1,862 10.1
more than 90 days.
Debts overdue less than 360 days but 15,055 3,909 26.0
more than 180 days.
Debts overdue above 360 days 14,580 11,210 76.9
Legal Debtors 54,638 54,638 100.0
Other geographical locations:
June 30, 2026
Provision for expected
Book value credit loss Percentage (%)
Other account receivables assessed 4,646,573 12,164 0.3
collectively for impairment
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements – (cont'd)
c. Addition, written-back and written-off of provision for expected credit losses during the period
Lifetime
expected credit Lifetime expected
loss (credit losses credit loss (credit
has not occurred) losses has occurred) Total
January 1, 2026 42,428 418,930 461,358
Addition (write back) during the period, net (641) 29,081 28,440
Write-off during the period - (7,435) (7,435)
Classification between long term and short - (16,808) (16,808)
term, net
Exchange rate effect (1,149) 4,241 3,092
Balance as of June 30, 2026 40,638 428,009 468,647
d. Five largest accounts receivable at June 30, 2026:
Allowance of expected
Proportion of Accounts credit losses (credit losses
Name Closing balance receivable (%) has occurred)
Customer 1 238,106 3 -
Customer 2 96,081 1 (89,727)
Customer 3 88,426 1 -
Customer 4 69,968 1 -
Customer 5 66,481 1 -
Total 559,062 7 (89,727)
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
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements – (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-2026 2,384 million RMB ), during the months of
February through July – 400m$ (as of June-2026 2,724 million RMB ), during the months of August through
September – 300m$ (as of June-2026 2,043 million RMB), during the months of October through November-
of June-2026 - 341 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 2026, 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 “other
receivables” line item.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements – (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:
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, 2026 is BRL 350 million (460 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.
In the agreement 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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements – (cont'd)
f. Derecognition of accounts receivable due to transfer of financial assets - (cont'd)
June 30 December 31
Accounts receivables derecognized 3,812,231 3,275,491
Continuing involvement 168,951 148,167
Subordinated note in respect of trade receivables 521,388 777,505
Liability in respect of trade receivables 58,376 29,191
Six months ended June 30
Loss in respect of sale of trade receivables 87,785 87,344
June 30 December 31
Bank acceptance draft 78,314 30,767
As at June 30, 2026, bank acceptance endorsed but not yet due amounts to 297,560 thousands RMB.
(1) The aging analysis of prepayments is as follows:
June 30 December 31
Amount Percentage (%) Amount Percentage (%)
Within 1 year (inclusive) 289,497 94 358,321 98
Over 1 year but within 2 years (inclusive) 18,451 6 8,726 2
Over 2 years but within 3 years (inclusive) 753 - 774 -
Over 3 years 363 - 191 -
(2) Total of five largest prepayments by debtor at the end of the period:
Percentage of prepayments
Amount (%)
June 30, 2026 75,240 24
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements – (cont'd)
(1) Other receivables by nature
June 30 December 31
Dividend receivable 4,340 2,325
Others 771,926 1,073,839
a. Others breakdown by categories
June 30 December 31
Subordinated note in respect of trade receivables 521,388 777,505
Trade receivables as part of securitization transactions
not yet eliminated 168,951 148,167
Other 94,010 162,387
Sub total 784,349 1,088,059
Provision for expected credit losses - other receivables (12,423) (14,220)
b. Other receivables by aging
June 30
Within 1 year (inclusive) 764,254
Over 1 year but within 2 years 4,488
Over 2 years but within 3 years 1,498
Over 3 years but within 4 years 48
Over 4 years but within 5 years 6,151
Over 5 years 7,910
(2) Additions, recovery or reversal and written-off of provision for expected credit losses during the
period:
Six months ended
June 30, 2026
Balance as of January 1 2026, 14,220
Addition (written back) during the period (235)
Write-off during the period (1,508)
Exchange rate effect (54)
Balance as of June 30, 2026 12,423
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements – (cont'd)
(3) Five largest other receivables at June 30, 2026:
Allowance of
Proportion of other expected credit
Name Closing balance receivables (%) losses
Party 1 521,388 66 -
Party 2 17,885 2 -
Party 3 5,572 1 5,572
Party 4 1,595 - 1,595
Party 5 1,280 - 1,280
Total 547,720 70 8,447
(1) Inventories by category:
June 30, 2026
Provision for
Book value impairment Carrying amount
Raw materials 3,126,338 25,769 3,100,569
Work in progress 1,334,872 851 1,334,021
Finished goods 6,627,347 277,792 6,349,555
Others 513,244 16,602 496,642
December 31, 2025
Provision for
Book value impairment Carrying amount
Raw materials 2,903,909 32,098 2,871,811
Work in progress 1,806,286 820 1,805,466
Finished goods 6,729,824 277,285 6,452,539
Others 495,793 17,767 478,026
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements – (cont'd)
(2) Provision for impairment of inventories:
For the Six months ended June 30, 2026
January 1, Reversal or
Raw material 32,098 5,975 (11,177) (1,127) 25,769
Work in progress 820 341 (310) - 851
Finished goods 277,285 100,458 (92,767) (7,184) 277,792
Others 17,767 2,920 (3,865) (220) 16,602
June 30 December 31
Deductible VAT 570,110 528,604
Current tax assets 308,233 311,227
Short term investments - 155,154
Others 87,349 99,288
June 30 December 31
Long term account receivables from sale of goods 281,583 180,324
Provision for expected credit losses (78,400) (62,121)
Provision for
long term
receivables
Balance as of January 1, 2026 62,121
Classification between long term and short term, net 16,808
Addition (write back) during the period, net -
Exchange rate effect (529)
Balance as of June 30, 2026 78,400
V. Notes to the consolidated financial statements – (cont'd)
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
(1) Long-term equity investments by category:
June 30 December 31
Joint venture 1,956 2,129
Associate 40,864 37,183
(2) Movements of long-term equity investments for the period are as follows:
Other Declared
January 1, Investment Comprehensive distribution of Balance at the
Joint
venture
Investee A 2,129 )110( (63) - 1,956
Sub-total 2,129 )110( (63) - 1,956
Associate
Investee B 37,183 6,703 1,134 (4,156) 40,864
Sub-total 37,183 6,703 1,134 (4,156) 40,864
Sub-total 39,312 6,593 1,071 (4,156) 42,820
December 31, Dividend recognized
June 30, 2026 2025 during 2026
Investment A 54,299 54,299 -
Investment B 73,176 75,497 -
Other equity investments are non-core businesses that are intended to be held in the foreseeable future.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements – (cont'd)
Land & Machinery & Office & other
Buildings equipment Motor vehicles equipment Total
Cost
Balance as at January 1, 2026 4,692,472 19,736,914 172,406 487,236 25,089,028
Purchases 13,181 37,195 19,933 14,354 84,663
Transfer from construction in progress 13,717 354,388 - 553 368,658
Disposals (180,005) (543,528) (22,666) (3,601) (749,800)
Currency translation adjustment (72,705) (470,143) (3,626) (14,863) (561,337)
Balance as at June 30, 2026 4,466,660 19,114,826 166,047 483,679 24,231,212
Accumulated depreciation
Balance as at January 1, 2026 (2,019,460) (11,380,299) (78,043) (383,424) (13,861,226)
Charge for the period (69,463) (417,366) (13,087) (18,605) (518,521)
Disposals 108,227 483,505 15,934 3,305 610,971
Currency translation adjustment 40,612 275,804 1,128 13,292 330,836
Balance as at June 30, 2026 (1,940,084) (11,038,356) (74,068) (385,432) (13,437,940)
Provision for impairment
Balance as at January 1, 2026 (380,580) (772,042) (681) (948) (1,154,251)
Charge for the period - (74,229) - - (74,229)
Transfer from construction in progress - (298) - - (298)
Disposals 20,353 31,789 75 18 52,235
Currency translation adjustment 7,090 11,524 - 6 18,620
Balance as at June 30, 2026 (353,137) (803,256) (606) (924) (1,157,923)
Carrying amounts
As at June 30, 2026 2,173,439 7,273,214 91,373 97,323 9,635,349
As at January 1, 2026 2,292,432 7,584,573 93,682 102,864 10,073,551
The lands reported as fixed assets are owned by the group subsidiaries and are located outside of China.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
(1) Construction in progress
June 30 December 31
Provision for Provision for
Book value impairment Carrying amount Book value impairment Carrying amount
(2) Details and Movements of major construction projects in progress during period ended June 30, 2026
Actual
Including: Currency Transfer cost to Project
January Interest translation to fixed June 30, budget progress
Budget 1, 2026 Additions capitalized differences assets Impairment 2026 (%) (%) Source of funds
Project A 874,889 66,308 3,196 - - (2,032) - 67,472 94% 94% Bank loan and internal finance
Project B 912,661 162,376 7,034 - (5,121) - - 164,289 86% 86% Bank loan and internal finance
* As of June 30, 2026 Project A include impairment of RMB 17 million.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
Land & Machinery & Office & other
Buildings equipment Motor vehicles equipment Total
Cost
Balance as at January 1, 2026 852,943 41,927 282,628 4,224 1,181,722
Additions 16,154 733 55,634 (13) 72,508
Decrease (76,984) (3,845) (51,596) (739) (133,164)
Currency translation adjustment (13,094) (1,273) (9,271) (154) (23,792)
Balance as at June 30, 2026 779,019 37,542 277,395 3,318 1,097,274
Accumulated depreciation
Balance as at January 1, 2026 (356,593) (23,003) (137,632) (3,051) (520,279)
Charge for the period (44,226) (1,366) (41,194) (442) (87,228)
Decrease 5,928 3,845 47,004 2,012 58,789
Currency translation adjustment 8,757 693 4,648 84 14,182
Balance as at June 30, 2026 (386,134) (19,831) (127,174) (1,397) (534,536)
Provision for impairment
Balance as at January 1, 2026 - - - - -
Balance as at June 30, 2026 - - - - -
Carrying amounts
As at June 30, 2026 392,885 17,711 150,221 1,921 562,738
As at January 1, 2026 496,350 18,924 144,996 1,173 661,443
ADAMA LTD.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
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, 2026 13,291,894 4,183,197 1,568,175 783,128 638,122 506,245 605,009 21,575,770
Purchases 121,513 - 57,790 - - - 6,928 186,231
Disposals (452,428) - (6,308) (9,748) - - (8,996) (477,480)
Currency translation adjustment (404,322) (129,684) (43,928) (24,377) (16,573) (1,212) (12,679) (632,775)
Balance as at June 30, 2026 12,556,657 4,053,513 1,575,729 749,003 621,549 505,033 590,262 20,651,746
Accumulated amortization
Balance as at January 1, 2026 (11,006,559) (3,571,987) (992,254) (550,475) (446,031) (130,437) (234,807) (16,932,550)
Charge for the period (241,116) (53,168) (57,910) (9,875) (20,608) (4,968) (10,631) (398,276)
Disposals 451,762 - 6,281 9,748 - - 8,996 476,787
Currency translation adjustment 341,594 111,392 27,711 17,272 12,806 (248) 5,200 515,727
Balance as at June 30, 2026 (10,454,319) (3,513,763) (1,016,172) (533,330) (453,833) (135,653) (231,242) (16,338,312)
Provision for impairment
Balance as at January 1, 2026 (170,389) (159,597) (9,273) - - - (1,618) (340,877)
Charge for the period - - - - - - - -
Disposals 348 - - - - - - 348
Currency translation adjustment 2,964 4,948 269 - - - - 8,181
Balance as at June 30, 2026 (167,077) (154,649) (9,004) - - - (1,618) (332,348)
Carrying amount
As at June 30, 2026 1,935,261 385,101 550,553 215,673 167,716 369,380 357,402 3,981,086
As at January 1, 2026 2,114,946 451,613 566,648 232,653 192,091 375,808 368,584 4,302,343
(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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
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. As of June 30, 2026 no indicators of impairment existed. The 2025
DCF model was based on:
• The actual results of 2025, 2026 workplan and the forecast results for the next 4 years. The key
assumptions contains projected revenue growth rate and gross margin.
• The discount rate (8.6% WACC) 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, 2025 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
Book value 4,964,450 - (149,964) 4,814,486
Impairment provision - - - -
Carrying amount 4,964,450 - (149,964) 4,814,486
(1) Deferred tax assets without taking into consideration of the offsetting of balances within the same
tax jurisdiction
June 30 December 31
Deductible Deductible
temporary Deferred tax temporary Deferred tax
differences assets differences assets
Deferred tax assets
Deferred tax assets in respect of carry
forward losses 2,727,787 503,850 3,217,169 484,298
Deferred tax assets in respect of
inventories 2,760,879 750,488 2,199,271 585,021
Deferred tax assets in respect of
employee benefits 900,396 135,489 874,432 142,094
Other deferred tax asset 2,601,400 634,354 2,508,133 644,334
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
(2) Deferred tax liabilities without taking into consideration of the offsetting of balances within the
same tax jurisdiction
June 30 December 31
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 3,937,397 729,299 4,258,988 785,595
(3) Deferred tax assets and deferred tax liabilities presented on a net basis after offsetting
June 30 December 31
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 498,013 1,526,168 561,571 1,294,176
Deferred tax liabilities 498,013 231,286 561,571 224,024
(4) Details of unrecognized deferred tax assets
June 30 December 31
Deductible temporary differences 756,471 830,630
Deductible losses carry forward 4,857,241 5,547,431
(5) Expiration of deductible tax losses carry forward for unrecognized deferred tax assets
June 30 December 31
After 2030 4,203,312 4,839,207
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (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.
June 30 December 31
Judicial deposits 171,328 152,033
Advances in respect of non-current assets 34,418 38,745
Assets related to securitization 29,171 27,799
Others 204,139 184,882
Short-term loans by category:
June 30 December 31
Unsecured loans 5,763,384 6,673,792
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements – (cont'd)
June 30 December 31
Economic hedge 246,105 152,525
Accounting hedge derivatives 3,732 37,056
June 30 December 31
Post-dated checks payables 127,309 221,808
Note payables draft 478,005 400,852
As at June 30, 2026, none of the bills payable are overdue.
June 30 December 31
Within 1 year (including 1 year) 4,974,877 5,379,999
Over 3 years 30,950 34,349
There are no significant accounts payables aging over one year.
As at June 30, 2026, the amount of the accounts payable included under the supplier financing
arrangements was 892,228 thousand RMB (as at December 31,2025: 1,040,262). 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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (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.
June 30 December 31
Discount for customers 1,394,296 813,747
Advances from customers 121,344 975,743
June 30 December 31
Short-term employee benefits 446,626 643,371
Post-employment benefits 25,038 46,389
Share based payment (See note XIII) - 110
Other benefits within one year 215,342 197,286
Current maturities 47,601 49,568
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
June 30 December 31
Corporate income tax 348,041 322,939
VAT 196,985 187,569
Others 26,694 28,660
June 30 December 31
Dividends payables 750 750
Other payables 1,522,269 1,417,343
(1) Other payables
June 30 December 31
Accrued expenses 789,954 762,284
Hold-back payment due to acquistions 100,000 100,000
Liability in respect of securitization transactions 58,376 29,191
Payables in respect of intangible assets 18,097 43,944
Financial institutions 9,753 886
Others 546,089 481,038
Non-current liabilities due within one year by category are as follows:
June 30 December 31
Long term loans from related party due within one year 2,350,850 2,359,991
Long-term loans due within one year 760,991 819,790
Debentures payable due within one year 513,807 489,394
Lease liabilities due within one year 169,062 156,028
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
June 30 December 31
Put options to holders of non-controlling interests 549,492 544,725
Provision in respect of returns 311,873 344,273
Provision in respect of claims 36,343 39,846
Others 388 415
Long-term loans by category
June 30 December 31
Long term loans
Unsecured loans 1,913,470 2.25%-6.45% 2,327,304 1.65%-6.45%
Less:
Long term loans from banks due within 1 year )760,991( (819,790)
Long term loans, net 1,152,479 1,507,514
* 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.
June 30 December 31
Debentures Series B 5,651,921 5,383,470
Current maturities (513,807) (489,394)
June 30
First year (current maturities) 513,807
Second year 513,807
Third year 513,807
Fourth year 513,807
Fifth year and thereafter 3,636,693
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
Movements of debentures payable:
For the Six months ended June 30, 2026:
Original Original 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 2026 or premium rate effect period adjustment 2026
Debentures November
Series B 2,673,640 1,650,000 4.12.2006 2020-2036 3,043,742 2,237,456 48 186,753 - (74,852) 2,349,405
Debentures November
Series B 843,846 513,527 16.1.2012 2020-2036 842,579 692,337 4,129 58,056 - (23,195) 731,327
Debentures November
Series B 995,516 600,000 7.1.2013 2020-2036 1,120,339 848,376 1,778 70,908 - (28,392) 892,670
Debentures November
Series B 832,778 533,330 1.2.2015 2020-2036 1,047,439 786,741 (1,096) 65,766 - (26,305) 825,106
Debentures November
Series B 418,172 266,665 1-6.2015 2020-2036 556,941 421,173 (2,868) 35,152 - (14,038) 439,419
Debentures November
Series B 497,989 246,499 5.5.2020 2020-2036 692,893 397,387 (3,412) 33,251 - (13,232) 413,994
Series B debentures, in amount of NIS 3,810 million par value (2,958 million par value, net of self-purchased), linked to the CPI and bear interest at the base annual rate of
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
million). The loss in respect of the debentures buyback was USD 9 million (RMB 68 million), and included in the financial expenses.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
June 30 December 31
Lease liabilities 821,792 1.9%-14.1% 907,254 1.0%-14.1%
Less: Lease liabilities due within one year (169,062) (156,028)
Long term lease liabilities, net 652,730 751,226
Post-employment benefit plans – defined benefit plan and early retirement
June 30 December 31
Total present value of obligation 497,317 490,562
Less: fair value of plan's assets (64,649) (63,751)
Net liability related to Post-employment benefits 432,668 426,811
Termination benefits 71,004 67,828
Total recognized liability for defined benefit plan, net (1) 503,672 494,639
Other long-term employee benefits 103,137 91,824
Total long-term employee benefits, net 606,809 586,463
Including: Long-term employee benefits payable due within one year 47,601 49,568
(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
Balance as at January 1, 558,390 531,452 63,751 54,186 494,639 477,266
Expense/income recognized
in profit and loss:
Current service cost 7,423 8,400 - - 7,423 8,400
Past service cost 1,855 (309) 579 - 1,276 (309)
Interest costs 10,251 10,360 1,400 1,315 8,851 9,045
Losses on curtailments and settlements 13,260 3,374 - - 13,260 3,374
Changes in exchange rates 28,029 32,895 4,268 4,260 23,761 28,635
Actuarial gain (losses) due to early retirement (301) 1,033 - - (301) 1,033
Included in other comprehensive income:
Actuarial gain (losses) as a result of changes in
actuarial assumptions 2,787 (1,555) 1,317 (302) 1,470 (1,252)
Foreign currency translation differences in respect of
foreign operations (20,274) (2,324) (2,142) (285) (18,132) (2,040)
Additional movements:
Benefits paid (33,099) (34,220) (5,227) (3,161) (27,872) (31,059)
Contributions paid by the Group - - 703 690 (703) (690)
Balance as at June 30, 568,321 549,106 64,649 56,703 503,672 492,403
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (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
Discount rate (%)* 1.8%-2.7% 1.8%-3.3%
* 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, 2026
Increase of 1% Decrease of 1%
Change in defined benefit obligation (36,231) 47,336
June 30 December 31
Liabilities in respect of contingencies* 231,874 210,045
Provision in respect of site restoration 188,592 211,997
Other 1,022 2,305
* Liabilities in respect of contingencies includes obligations of pending litigations, where an outflow of
resources had been reliably estimated.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
June 30 December 31
Long term loans from related party 2,350,850 2,359,991
Current maturities (2,350,850) (2,359,991)
- -
Balance at Issuance of new Balance at
January 1, 2026 shares Buyback of shares June 30, 2026
Share capital 2,329,812 - - 2,329,812
Balance at Additions during Reductions during Balance at
January 1, 2026 the period the period June 30, 2026
Share premiums 12,606,562 - - 12,606,562
Other capital reserve 260,561 - - 260,561
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
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
Items that will not be
reclassified to profit or loss 114,141 (1,470) - 697 (2,167) 111,974
Re-measurement of changes
in liabilities under defined
benefit plans 85,466 (1,470) - 697 (2,167) 83,299
Changes in fair value of
other equity investment 28,675 - - - - 28,675
Items that may be
reclassified to profit or loss 1,456,607 (305,939) 40,827 3,390 (350,156) 1,106,451
Effective portion of gain or
loss of cash flow hedge 8,880 89,903 40,827 3,390 45,686 54,566
Translation difference of
foreign financial statements 1,447,727 (395,842) - - (395,842) 1,051,885
Additions Reductions
Balance at during the during the Balance at
January 1, 2026 period period June 30, 2026
Statutory surplus reserve 294,796 - - 294,796
Discretional surplus reserve 3,814 - - 3,814
Retained earnings as at January 1 502,977 1,680,382
Net income (loss) for the period attributable to shareholders of the
Company 432,567 (80,352)
Dividends to non-controlling Interest (22,200) (74,170)
Retained earnings as at June 30 913,344 1,525,860
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
Six months ended June 30 Six months ended June 30
Income Cost of sales Income Cost of sales
Principal activities 14,442,307 10,511,602 14,991,514 11,019,714
Other businesses 34,233 11,728 32,686 10,459
Six months ended June 30
Tax on turnover 11,648 10,953
Others 35,272 46,175
Six months ended June 30
Salaries and related expense 962,780 912,703
Depreciation and amortization 410,537 465,967
Advertising and sales promotion 165,134 132,972
Warehouse expenses 103,994 85,581
Travel expenses 69,539 67,740
Registration 67,653 70,147
Professional services 57,746 51,287
Insurance 45,360 39,707
Others 155,320 149,564
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
Six months ended June 30
Salaries and related expenses 311,785 238,606
IT systems 75,682 76,570
Professional services 67,609 225,996
Depreciation and amortization 64,956 71,596
Cost contribution arrangement 22,226 36,281
Office rent, maintenance and expenses 18,710 17,901
Other 41,071 67,917
Six months ended June 30
Salaries and related expenses 119,301 110,779
Depreciation and amortization 33,275 32,164
Materials 16,100 19,589
Office rent, maintenance and expenses 8,351 8,101
Field trial 7,834 13,186
Professional services 7,076 8,839
Other 19,413 24,135
Six months ended June 30
Interest expenses on debentures and loans and other charges 454,511 522,664
Exchange rate differences, net 421,845 230,008
CPI expenses in respect of debentures 65,049 117,480
Interest income from customers, banks and others (76,612) (101,281)
Loss in respect of sale of trade receivables 87,785 87,344
Revaluation of put option, net 10,677 43,890
Interest expense on lease liabilities 28,689 24,084
Interest expense in respect of post-employment benefits and early
retirement, net 10,417 8,992
Others 21,345 91,159
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
Six months ended June 30
Income from long-term equity investments accounted for using
the equity method 6,593 5,261
Six months ended June 30
Gain (loss) from changes in fair value of derivative financial
Instruments 213,451 (36,189)
Others - 29,696
Six months ended June 30
Bills receivable and accounts receivable (28,440) (93,532)
Other receivables 235 (147)
(28,205) (93,679)
Six months ended June 30
Fixed assets (74,229) -
Inventories (76,256) (26,081)
Construction in progress (1,544) (101)
Intangible asset - (1,435)
(152,029) (27,617)
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
Six months ended June 30 Included in
non-recurring
Gain from disposal of fixed assets 304,273 5,160 304,273
Gain (loss) from disposal of intangible assets 2,076 (106) 2,076
Six months ended June 30
Current year 231,081 192,126
Deferred tax expenses (income) (268,411) (245,081)
Adjustments for previous years, net (2,852) 7,728
(40,182) (45,227)
(1) Reconciliation between income tax expense and accounting profit is as follows:
Six months ended June 30
Loss before taxes 392,385 (125,579)
Statutory tax in china 25% 25%
Tax calculated according to statutory tax in china 98,096 (31,395)
Tax benefits from Approved Enterprises (17,203) (19,282)
Difference between measurement basis of income for financial
statement and for tax purposes (18,164) (82,453)
Taxable income (loss) and temporary differences at other tax rate (142,908) (197,928)
Taxes in respect of prior years (2,852) 7,728
Utilization of tax losses prior years for which deferred taxes were
not created (103,537) (14,177)
Temporary differences and losses in the report year for which
deferred taxes were not created 130,936 180,931
Non-deductible expenses, non-taxable income and other difference,
net 49,617 48,007
Neutralization of tax calculated in respect of the Company’s share
in results of equity accounted investees (2,392) (1,744)
Effect of change in tax rate in respect of deferred taxes (32,028) 12,056
Creation and reversal of deferred taxes for tax losses and temporary
differences from previous years, net 253 53,030
Income tax expenses (incomes) (40,182) )45,227(
Details of the Other comprehensive income are set out in Note V.39
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
Amount recognized in the profit
and loss statements during the Six
months ended June 30
Category Presentation accounts 2026 2025
Government grants related to income Non-Operating income 3,940 5,111
Government grants related to assets Fixed assets, Intangible assets 5,352 5,334
(1) Cash received relating to other operating activities
Six months ended June 30
Financial institutions 70,735 -
Interest income 24,555 39,574
Government subsidies 2,970 12,854
Others 135,804 22,714
(2) Cash paid relating to other operating activities
Six months ended June 30
Derivatives transactions 100,589 402,853
Professional services 186,982 256,694
Advertising and sales promotion 173,576 141,629
IT and Communication 132,238 106,662
Commissions and Warehouse 108,548 99,741
Registration and Field trials 81,734 76,972
Financial institutions 20,214 71,112
Travel 52,967 45,237
Insurance 35,064 35,887
Other 356,937 419,429
(3) Cash paid relating to other investing activities
Six months ended June 30
Increase in short and long term investments 631 47,825
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
(4) Cash received from other financing activities
Six months ended June 30
Proceeds in respect of hedging transactions on debentures 683,858 246,992
Deposit for issuing bills payables 94,970 46,148
Borrowing from related party * - 789,364
* 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
Repayment of lease liability 117,586 93,276
Deposit for issuing bills payable 85,016 181,047
Payment in respect of hedging transactions on debentures - 165,934
(1) Supplementary information on Cash Flow Statement
a. Reconciliation of net profit to cash flows from operating activities:
Six months ended June 30
Net income (loss) 432,567 (80,352)
Add: Impairment provisions for assets 152,029 27,617
Credit impairment losses 28,205 93,679
Depreciation of fixed assets and investment property 519,339 520,896
Depreciation of right-of-use asset 87,228 94,218
Amortization of intangible asset 398,276 447,594
Gains on disposal of fixed assets, intangible assets, and other long-
term assets, net (306,349) (5,054)
Losses (gain) from changes in fair value (213,451) 6,493
Financial expenses 1,040,649 1,214,335
Investment income, net (6,593) (5,261)
Increase in deferred tax assets, net (280,584) (226,093)
Increase (decrease) in deferred tax liabilities, net 12,173 (18,988)
Increase in inventories, net (32,067) (365,063)
Increase in operating receivables, net (2,375,183) (1,431,729)
Increase in operating payables, net 1,213,670 1,466,286
Net cash flow provided by operating activities 669,909 1,738,578
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
(1) Supplementary information on Cash Flow Statement - - (cont'd)
b. Net Decrease in cash and cash equivalents
Six months ended June 30
Closing balance of cash and cash equivalents 2,819,032 3,315,685
Less: Opening balance of cash and cash equivalents 3,353,326 3,583,963
Decrease in cash and cash equivalents (534,294) (268,278)
(2) Details of cash and cash equivalents
June 30 December 31
Cash on hand 1,091 1,107
Bank deposits available on demand without restrictions 2,817,941 3,352,219
June 30
Cash 87,020 Pledged
Other non-current assets 171,328 Guarantees
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
(1) Foreign currencies denominated items - (cont'd)
As at June 30, 2026
RMB at the
Exchange end of the
Foreign currency at the end of the period rate period
Cash and bank balances
EUR 41,519 7.76 322,312
USD 20,261 6.81 137,999
BRL 90,379 1.32 118,939
ILS 51,444 2.29 117,653
ZAR 117,935 0.42 48,943
RUB 388,144 0.09 34,157
GBP 3,693 9.01 33,271
Other 193,170
Total 1,006,444
Bills and Accounts receivable
BRL 783,036 1.316 1,030,476
EUR 49,157 7.763 381,606
RON 214,723 1.48 317,790
HUF 8,977,385 0.022 197,502
ILS 69,910 2.287 159,884
CAD 19,754 4.784 94,501
CZK 294,910 0.320 94,358
GBP 10,464 9.009 94,270
Other 369,255
Total 2,739,642
Other receivables
EUR 73,131 7.763 567,716
CAD 20,660 4.784 98,836
PLN 34,753 1.806 62,764
BRL 26,121 1.316 34,375
Other 64,197
Total 827,888
Other current assets
ILS 70,584 2.287 161,425
EUR 11,642 7.763 90,374
BRL 61,417 1.316 80,825
UAH 238,830 0.152 36,302
CAD 2,679 4.784 12,818
Other 40,334
Total 422,078
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
(2) Foreign currencies denominated items - (cont'd)
As at June 30, 2026
RMB at the
Exchange end of the
Foreign currency at the end of the period rate period
Other current assets
Long-term receivables
BRL 154,394 1.316 203,183
Total 203,183
Long-term investments, loans
and other
BRL 228,647 1.316 300,899
Other 7,396
Total 308,295
Short-term loans
UAH 703,345 0.152 106,909
ARS 679,728 0.005 3,399
Total 110,308
Bills and Accounts payable
ILS 344,244 2.287 787,286
EUR 51,079 7.763 396,524
BRL 146,476 1.316 192,762
USD 7,570 6.811 51,557
Other 62,888
Total 1,491,017
Other payables
ILS 94,432 2.287 215,966
BRL 120,102 1.316 158,054
UAH 173,768 0.152 26,413
ILS CPI 10,793 2.287 24,683
ZAR 31,281 0.415 12,982
CNH 11,880 1.005 11,940
Other 35,976
Total 486,014
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (cont'd)
(3) Foreign currencies denominated items - (cont'd)
As at June 30, 2026
Foreign currency
at the end of the RMB at the end of
period Exchange rate the period
Contract liabilities
EUR 57,223 7.763 444,221
CAD 56,142 4.784 268,581
BRL 46,616 1.316 61,346
THB 98,675 0.205 20,228
TRY 72,821 0.146 10,632
Other 67,346
Total 872,354
Non-current liabilities due within one year
CNH 2,000,000 1.005 2,010,305
ILS CPI 257,974 2.287 589,986
EUR 1,650 7.763 12,811
Other 27,966
Total 2,641,068
Other current liabilities
EUR 6,950 7.763 53,956
RON 17,253 1.48 25,534
Other 82
Total 79,572
Debentures payable
ILS CPI 2,246,662 2.287 5,138,114
Total 5,138,114
Provision and Long-term payables
BRL 165,169 1.316 217,363
ILS 56,575 2.287 129,387
Total 346,750
Lease liabilities
ILS CPI 33,200 2.287 75,928
EUR 4,940 7.763 38,352
ILS 11,529 2.287 26,366
Other 33,292
Total 173,938
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
V. Notes to the consolidated financial statements - (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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
VII. Interest in Other Entities
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; 100% 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
June 30 December 31
Joint venture 1,956 2,129
Associate 40,864 37,183
December 31, 2025
June 30, 2026 and six and six months ended
months then ended June 30, 2025
Joint venture:
Total carrying amount 1,956 2,129
The Group's share of the following items:
Net profit (110) 137
Other comprehensive income (63) (9)
Total comprehensive income (173) 128
Associate:
Total carrying amount 40,864 37,183
The Group's share of the following items:
Net profit 6,703 5,124
Other comprehensive income 1,134 3,802
Total comprehensive income 7,837 8,926
ADAMA 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 September 2025, 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.
ADAMA 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 location,
industry, aging of receivables, maturity, and existence of past financial difficulties. Customers defined as “high
risk” 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, 2026
Past due by less than 90 days 631,086
Past due by more than 90 days 533,389
ADAMA 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 7,431,703 thousand relate to
category of "Lifetime expected credit losses (credit losses has not occurred)" and amounted to RMB 818,246
thousand related to category of "Lifetime expected credit losses (credit losses occurred)". The Group has a
provision for other receivables amounted to RMB 12,423 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.
ADAMA 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, 2026
Third- Fifth year Contractual Carrying
First year Second year Fourth year and above Cash flow amount
Non-derivative financial
liabilities
Short-term loans 5,774,429 - - - 5,774,429 5,763,384
Accounts payables 5,048,131 - - - 5,048,131 5,048,131
Bills payables 605,314 - - - 605,314 605,314
Other payables 1,523,019 - - - 1,523,019 1,523,019
Other current liabilities 549,492 - - - 549,492 549,492
Debentures payable 786,026 783,608 1,485,927 4,347,152 7,402,713 5,651,921
Long-term loans 806,005 588,729 607,307 - 2,002,041 1,913,470
Long-term payables 8,118 21,372 38,281 137,581 205,352 153,307
Lease Liabilities 226,496 188,066 193,334 869,046 1,476,942 821,792
Other non-current liabilities 2,361,330 - - - 2,361,330 2,350,850
Derivative financial liabilities
Foreign currency derivatives 237,588 - - - 237,588 237,588
CPI/shekel forward transactions 12,249 - - - 12,249 12,249
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 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.
ADAMA 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 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, 2026
Total assets Total liabilities
In US Dollar 3,069,647 1,842,486
In Euro 1,466,936 752,152
In Brazilian real 1,768,697 412,162
CPI-linked NIS - 5,799,298
In New Israeli Shekel 439,237 1,059,033
Denominated in or linked to other foreign currency 2,813,192 3,371,619
(B) The exposure to CPI and foreign currency risk in respect of derivatives is as follows:
June 30, 2026
Currency/ Currency/ Average USD RMB
linkage linkage expiration thousands thousands
receivable payable date Par value Par value Fair value
Forward foreign currency USD EUR 24/10/2026 209,984 1,430,181 13,925
Contracts and call options USD PLN 22/09/2026 8,043 54,777 (1,180)
USD BRL 05/08/2026 173,675 1,182,885 3,374
USD GBP 28/07/2026 21,047 143,351 3,288
USD ZAR 04/09/2026 32,145 218,936 (913)
ILS USD 15/08/2026 1,081,236 7,364,188 (33,470)
USD OTHER 1,034,366 7,044,962 5,341
CPI forward contracts CPI ILS 07/28/2026 537,280 3,659,360 (11,710)
ADAMA 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, 2025
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, 2026
Decrease of 5% Increase of 5%
Equity Profit (loss) Equity Profit (loss)
New Israeli shekel 57,222 26,256 (15,586) 6,848
British pound 469 469 (469) (469)
Euro (6,988) 23,407 23,320 (23,407)
Brazilian real 10,040 10,040 (15,501) (15,501)
Polish zloty 5,040 5,040 (4,774) (4,774)
South African Rand (1,073) (1,073) 523 523
Chinese Yuan Renminbi 217,880 217,880 (196,112) (196,112)
CPI-linked NIS 130,795 130,795 (130,795) (130,795)
(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.
ADAMA 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, 2026
Fixed-rate instruments – unlinked to the CPI
Financial assets
Other non-current assets 6,634
Financial liabilities
Long-term loans (1) 1,813,470
Long-term payables 20,835
Other non-current liabilities (1) 340,545
(2,168,216)
Fixed-rate instruments – linked to the CPI
Financial liabilities
Debentures payable (1) 5,651,921
Variable-rate instruments
Financial assets
Cash at banks 491,863
Financial assets at fair value through profit or loss 2,711
Financial liabilities
Short-term loans and credit from banks 5,763,384
Long-term loans (1) 100,000
Long-term payables 119,596
Other non-current liabilities (1) 2,010,305
(7,498,711)
(1) Including current maturities.
ADAMA 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.
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, 2026
Carrying amount Fair value
Financial assets
Other non-current assets (a – Level 2) 30,520 23,987
Financial liabilities
Long-term loans and others (b – Level 2) 5,240,319 5,211,018
Debentures (c – Level 1) 5,651,921 6,248,795
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).
?
The interest rates used to discount the estimate of anticipated cash flows are:
June 30, 2026
%
U.S. dollar interest 5.83 - 7.24
Chinese Yuan Renminbi 1.26 - 2.50
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
IX. Fair Value - (cont’d)
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
Forward contracts and options used for hedging the cash flow (Level 2) 60,209
Forward contracts and options used for economic hedging (Level 2) (81,554)
Other equity investment (Level 2) 127,475
Receivables financing (Level 2) 78,314
Other non-current assets (Level 2) 29,171
Other (Level 2) 2,711
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
X. Related parties and related party transactions
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 11,182,127 78.47% 78.47%
The Company’s ultimate controlling shareholder is Sinochem Holdings .
For information about the subsidiaries of the Company, refer to Note VII.1.
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
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
X. Related parties and related party transactions - (cont’d)
Name of other related parties Related party relationship
Agro Jangada Ltda Common control
Anhui Chemical Research Institute Common control
Anhui Kelihua Chemistry Co., Ltd. Common control
Beijing Guangyuan Yinong Chemical Co., LTD Common control
Bluestar (Beijing) Chemical Machinery Co. Ltd. Common control
Bluestar Engineering Co. Ltd. Common control
Dipagro LTDA Common control
Elkem Silicones Brasil Ltd. Common control
Sinochem Hebei Fuding Chemical Technology Co., Ltd. Common control
Huaxia Hanhua Chemical Equipment Co., Ltd. Common control
Jiangsu Huaihe Chemical Co., Ltd. Common control
Jiangsu Ruiheng New Material Technology CO., LTD. Common control
Jiangsu Youjia Plant Protection Co., Ltd. Common control
Jiangsu Youshi Chemical Co., Ltd. Common control
YANGNONG SINGAPORE PTE. 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
Shandong Dacheng Agrochemical Company Limited Common control
Shenyang Sciencreat Chemicals Co. Ltd. Common control
Shenyang Chemical Research Institute 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 International Crop Care (Overseas) Pte.Ltd. Common control
Sinochem Agro Co. Ltd. Common control
Sinochem Digital Intelligence Technology Co ., Ltd . Common control
Sinochem Fertilizer Company Limited and its branches Common control
Sinochem Finance Co. Ltd Common control
Sinochem Hebei Co. Ltd. Common control
Sinochem Modern Agriculture (Liaoning) Co. LTD Common control
Sinochem Modern Agriculture (Anhui) Co. LTD Common control
Sinochem Petrochemical Sales Co. Ltd. Common control
Sinochem India Company Private Limited Common control
Syngenta (Shanghai) Crop Protection Technology Company Limit Common control
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
X. Related parties and related party transactions - (cont’d)
Name of other related parties Related party relationship
Syngenta Nantong Crop Protection Co.,Ltd. Common control
Syngenta Agro (Argentina) S.A. Common control
Syngenta Agro GmbH Common control
Syngenta Agro SA de CV Common control
Syngenta Australia Pty Ltd Common control
Syngenta Canada Inc Common control
Syngenta Crop Protection A/S Common control
Syngenta Crop Protection AG Common control
Syngenta Crop Protection BV Common control
Syngenta Crop Protection Lda Common control
Syngenta Crop Protection LLC Common control
Syngenta Crop Protection Ltd. Common control
Syngenta Crop Protection NV Common control
Syngenta Czech s.r.o. Common control
Syngenta Espa?a S.A. Common control
Syngenta France SAS Common control
Syngenta Group Co. Ltd Common control
Syngenta Hellas AEBE Common control
Syngenta Italia SpA Common control
Syngenta Nantong Crop Protection Co Ltd Common control
Syngenta Protecao de Cultivos Ltda Common control
Syngenta SA. Common control
Taicang Zhonglan Environmental Protection Technology Common control
Service Co., Ltd.
China Bluestar Chengrand Research Institute Chemical Common control
Industry
Zhonglan Lianhai Design & Research Institute Co. Ltd. Common control
Jiangsu Huifeng Agrochemical 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
Huifeng Biology (Shanghai) Co., Ltd Minority shareholder and its subsidiary
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
X. Related parties and related party transactions - (cont’d)
(1) Transactions with related parties
Six months ended
June 30
Type of purchase Related Party Relationship 2026 2025
Summary of purchase of goods/services:
Purchase of goods/services received Common control under
Sinochem Holdings 539,227 651,803
Minority shareholder and 510 14,228
its subsidiary
Purchase of fixed assets and other assets Common control under 15,042 49
Sinochem Holdings
Lease expenses Minority shareholder and 924 924
its subsidiary
Summary of Sales of goods:
Sale of goods/ Service rendered Common control under 396,910 554,642
Sinochem Holdings
Joint venture 35,747 49,323
Minority shareholder and
its subsidiary 5,391 8,948
Lease income Minority shareholder and 544 544
its subsidiary
(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 263,000 21/04/2021 20/04/2028 Y
As at 30 June 2026, all guarantees provided by the parent company of the Group to the Group have been
fully discharged. No guarantee fees were incurred for the six months ended 30 June 2026 (six months ended
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
X. Related parties and related party transactions - (cont’d)
(3) Remuneration of key management personnel and directors
Periods ended June 30
Remuneration of key management personnel and directors 28,856 16,533
(4) Receivables from and payables to related parties (including loans)
Receivable Items
June 30 December 31
Expected Expected
Related Party Book credit Book credit
Items Relationship Balance losses Balance losses
Trade receivables Common control under 248,189 - 214,960 -
Sinochem Holdings
Joint venture 17,286 - 15,063 -
Minority shareholder and 3,735 - 5,201 -
its subsidiary
Prepayments Common control under 2,263 - 1,629 -
Sinochem Holdings
Payable Items
June 30 December 31
Items Related Party Relationship 2026 2025
Trade payables Common control under Sinochem 296,190 328,410
Holdings
Minority shareholder and its subsidiary 320 63
Other payables Common control under Sinochem 53,643 66,612
Holdings
Minority shareholder and its subsidiary 517 517
Contractual liability Common control under Sinochem 12,079 22,912
Holdings
Short-term loans * Common control under Sinochem 3,337,340 3,444,112
Holdings
Other non-current Common control under Sinochem 2,350,850 2,359,991
liabilities (including Holdings
current maturities). *
* Include liabilities are loans from a related party, the interest expenses for the Six months ended June 30,
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
X. Related parties and related party transactions - (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 USD 100 million on market terms with
Syngenta Group, or any of its subsidiaries, including a long-term loan for 5 years of USD 50 million. As of
June 30, 2026, the balance of this loan amounted to approximately RMB 341 million.
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 2,000 million with Syngenta Group,
or any of its subsidiaries. As of June 30, 2026, a total of RMB 2,000 million was utilized.
On March 26, 2026, the Board of Directors approved (following the pre-approval of the Company’s
independent directors dated March 24, 2026) the Proposal on Consolidation of Credit Facilities from the
Related Party, to consolidate the existing short-term annual revolving credit facilities of USD 350 million
and USD 400 million originally provided by Syngenta Group subsidiaries to the Group’s subsidiaries into a
single short-term annual revolving credit facility with an aggregate amount of USD 750 million. As of June
to approximately RMB 3,337 million).
(5) Other related party transactions
The closing balance of bank deposit in Sinochem Finance Corporation was 768,225 thousand RMB
(31.12.25: 912,869) Interest income of bank deposit for the current period was 8,391 thousand RMB (amount
for six months ended June , 2025 was 3,197 thousand RMB).
The closing balance of a loan received from Sinochem Finance Corporation was 249,641 thousand RMB
(31.12.25: 209,641) Interest expenses in the current period was 2,852 thousand RMB (amount for six
months ended June , 2025 was 398 thousand RMB).
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XI. Commitments and contingencies
June 30 December 31
Investment in Fixed assets
On April 30, 2026, 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
from July 1, 2024, to June 30, 2025.
Based on the Shareholders meeting approval and authorization, the Company's management renewed and
extended the Directors and Officers liability insurance policy, such that the current insurance period ends on
April 30, 2027.
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. On November 9, 2025,
an appeal was submitted to the Supreme Court.
According to the Solutions' external counsels, given the preliminary stages of the appeal, it is too early to assess
the chances of the appeal, and the Motion, to be accepted.
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XI. Commitments and contingencies - (cont’d)
Claims against subsidiaries (cont’d)
Therefore, and based on the opinion of Solutions’ external counsels, as of the date of the financial statements it
is the Company's estimation that this proceeding is not expected to have any non-negligible effect on the
Company’s financial results.
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, the subsidiary filed lawsuits
seeking declarations that the said patents are invalid and not infringed. These proceedings remain pending. In
May 2023, the same competitor filed an additional lawsuit alleging infringement of the same two patents by a
different product and sought a preliminary injunction. The injunction was rejected at first instance, upheld on
appeal, and finally dismissed by the superior court - a decision that is now final and unappealable. 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.
XII. Events subsequent to the balance sheet date
The Company is not aware of any events subsequent to the balance sheet date.
XIII. Share-based Payments
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 28,258,248 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 90,130 Alternative Phantom Warrants were granted.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XIII. Share-based Payments - (cont’d)
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.
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 3,689,544
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 (1,255,300)
Total number of Phantom warrants at the end of the period 2,434,244
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 0.25 year
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) 68,836
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) -
Expenses (income) arising from cash-settled share-based payments in
current period related to the alternative plan (in thousands RMB) (102)
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XIV. Other significant items
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.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XIV. Other significant items - (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
Operating income from external
customers 13,497,197 13,656,589 979,343 1,367,611 - - 14,476,540 15,024,200
Inter-segment operating income - - 655 962 (655) (962) - -
Interest in the profit or loss of
associates and joint ventures - - 6,593 5,261 - - 6,593 5,261
Segment's results 1,117,325 776,250 85,315 129,004 - - 1,202,640 905,254
Financial expenses 1,023,706 1,024,340
Gain (loss) from changes in fair
value 213,451 (6,493)
Income (loss) before tax 392,385 (125,579)
Income tax expenses (40,182) (45,227)
Net (income) Loss 432,567 (80,352)
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
Total assets 37,997,140 39,011,654 2,043,258 2,092,328 6,608,691 7,359,980 46,649,089 48,463,962
Total liabilities 7,360,638 7,904,219 208,693 240,167 21,443,739 22,744,150 29,013,070 30,888,536
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XIV. Other significant items - (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
Europe, Africa and Middle Eas 5,041,810 4,811,339
North America 3,570,492 3,554,544
Latin America 2,431,950 2,609,695
Asia Pacific 3,432,288 4,048,622
Specified non-current assets
June 30 December 31
Europe, Africa and Middle East 12,548,065 13,319,926
North America 1,201,899 1,232,186
Latin America 1,760,934 1,905,677
Asia Pacific 4,372,305 4,606,298
No single customer's proportion of the total amount of sales is over 10%.
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XIV. Other significant items - (cont'd)
Amount for the Amount for the
current period prior period
Net loss from continuing operations attributable to ordinary
shareholders 432,567 (80,352)
Amount for the Amount for the
Shares current period prior period
Number of ordinary shares outstanding at the beginning of the
year 2,329,811,766 2,329,811,766
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 2,329,811,766 2,329,811,766
Amount for Amount for
the current the prior
period period
Calculated based on net profit (loss) attributable to ordinary
shareholders
Basic losses per share 0.19 (0.03)
Diluted losses per share N/A N/A
Calculated based on net profit (loss) from continuing operations
attributable to ordinary shareholders:
Basic losses per share 0.19 (0.03)
Diluted losses per share N/A N/A
Calculated based on net profit (loss) from discontinued operations
attributable to ordinary shareholders:
Basic losses per share N/A N/A
Diluted losses per share N/A N/A
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XV. Notes to major items in the Company's financial statements
June 30 December 31
Deposits in banks 138,892 58,950
Other cash and bank balances 13,686 6,014
As at June 30, 2026, restricted cash and bank balances was 13,686 thousand RMB (as at December 31, 2025:
a. By category
June 30, 2026
Provision for expected
Book value credit losses
Carrying
Amount Percentage (%) Amount Percentage (%) amount
Account receivables assessed
individually for impairment 13,893 1 13,893 100 -
Account receivables assessed
collectively for impairment 2,006,832 99 902 - 2,005,930
December 31, 2025
Provision for expected credit
Book value losses
Carrying
Amount Percentage (%) Amount Percentage (%) amount
Account receivables assessed
individually for impairment 13,893 1 13,893 100 -
Account receivables assessed
collectively for impairment 1,637,510 99 902 - 1,636,608
b. Aging analysis
June 30, 2026
Within 1 year (inclusive) 1,254,429
Over 1 year but within 2 years 733,188
Over 2 years but within 3 years 19,215
Over 3 years but within 4 years -
Over 4 years but within 5 years -
Over 5 years 13,893
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XV. Notes to major items in the Company's financial statements - (cont'd)
c. Addition, written-back and written-off of provision for expected credit losses during the period
Six months ended June 30, 2026
Balance as of January 1 14,795
Addition during the period, net -
Balance as of June 30.2026 14,795
d. Five largest accounts receivable at June 30, 2026:
Proportion of Allowance of
Accounts expected
Name Closing balance receivable (%) credit losses
Party 1* 1,877,059 93 -
Party 2 66,481 3 -
Party 3 19,965 1 902
Party 4 8,140 0.5 -
Party 5 8,000 0.5 -
* Include intergroup balance with ADAMA Solutions.
June 30 December 31
Bank acceptance draft 26,915 10,490
As at June 30, 2026, bank acceptance endorsed but not yet due amounts to 221,975 thousand RMB.
June 30 December 31
Dividends receivable - 2,325
Other receivables 23,722 24,109
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XV. Notes to major items in the Company's financial statements - (cont'd)
(1) Other receivables
a. Other receivables by categories
June 30 December 31
Other 29,188 29,485
Provision for expected credit losses (5,466) (5,376)
b. Other receivables by aging
June 30, 2026
Within 1 year (inclusive) 90
Over 1 year but within 2 years 12,111
Over 2 years but within 3 years -
Over 3 years but within 4 years 113
Over 4 years but within 5 years 91
Over 5 years 16,783
c. Additions, recovery or reversal and written-off of provision for expected credit losses during the
period:
Six months ended June 30, 2026
Balance as of January 1, 2026 5,376
Addition during the period 90
Balance as of June 30, 2026 5,466
d. Five largest other receivables at June 30 2026:
Proportion of other
Name Closing balance receivables (%) Credit loss provision
Party 1* 23,722 81 -
Party 2 3,125 11 3,125
Party 3 548 2 548
Party 4 237 1 237
Party 5 221 1 221
* Include intergroup balance with Anpon
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XV. Notes to major items in the Company's financial statements - (cont'd)
June 30, 2026 December 31, 2025
Impairment Impairment
Amount balance loss Book value Amount balance loss Book value
Invest in
subsidiaries 17,511,352 80,636 17,430,716 17,511,352 80,636 17,430,716
Investments in subsidiaries
Provision of Balance of
Opening impairment Closing Impairment
Invested unit balance Increase Decrease loss balance loss
ADAMA Agricultural Solutions Ltd. 15,890,213 - - - 15,890,213 -
Adama Anpon (Jiangsu) Ltd. 450,449 - - - 450,449 -
ADAMA Hiufeng (Jiangsu) Co. Ltd. 789,116 - - - 789,116 (59,024)
Hubei Sanonda Foreign Trade Co. 11,993 - - - 11,993 -
Ltd.
Adama Huifeng (shanghai) 288,945 - - - 288,945 (21,612)
Agricultural Technology Co., Ltd
Six months ended June 30, 2026 Six months ended June 30, 2025
Operating Operating
Revenue costs Revenue costs
Main operations 1,150,645 953,163 1,068,970 870,381
Other operations 28,952 10,580 25,602 9,594
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XV. Notes to major items in the Company's financial statements - (cont'd)
(1) Other cash received relevant to operating activities
Six months ended Six months ended
June 30, 2026 June 30, 2025
Interest income 1,181 216
Government subsidies 2,064 4,201
Other 1,789 10,907
(2) Other cash paid relevant to operating activities
Six months ended Six months ended
June 30, 2026 June 30, 2025
Professional services 103,854 11,037
Other 9,039 12,890
(3) Other cash received relevant to investing activities
Six months ended Six months ended
June 30,2026 June 30,2025
Other 757 803
(4) Other cash paid relevant to investing activities
Six months ended Six months ended
June 30,2026 June 30, 2025
Loans 20,000 -
(5) Other cash received relevant to financing activities
Six months ended Six months ended
June 30, 2026 June 30, 2025
Deposit for issuing bills payables 4,500 1,858
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XV. Notes to major items in the Company's financial statements - (cont'd)
)6( Other cash paid relevant to financing activities
Six months ended Six months ended
June 30, 2026 June 30, 2025
Deposit for issuing bills payables 12,172 14,246
XV. Notes to major items in the Company's financial statements - (cont'd)
(1) Reconciliation of net profit to net cash flows generated from operating activities:
Six months ended June 30
Net profit 84,773 130,151
Add: Asset Impairment losses 2,099 3,362
Credit impairment losses 90 1,084
Depreciation of fixed assets and investment property 87,847 98,116
Depreciation of-right-of use assets 565 395
Amortization of intangible assets 6,153 6,067
Gain (losses) on disposal of fixed assets, intangible assets and other 28 (3,587)
long-term assets
Gains from changes in fair value - (30,714)
Financial expenses 60,000 13,298
Investment income (20,301) (32,445)
Decrease in deferred income tax assets 11,489 21,449
Decrease in inventory 39,881 43,633
Increase in accounts receivable from operating activities (317,594) (212,970)
Increase in payables from operating activities 119,260 148,263
Net cash flows generated from operating activities 74,290 186,102
(2) Net increase in cash and cash equivalents
Six months ended June 30
Closing balance of cash 138,892 65,500
Less: Opening balance of cash 58,950 39,173
Net increase in cash and cash equivalents 79,942 26,327
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XV. Notes to major items in the Company's financial statements - (cont'd)
(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 11,182,127 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
Summary of Purchase of goods/services Related Party Relationship
received:
Purchase of goods/services received Common control
under Sinochem
Holdings 19,205 37,764
Subsidiary 50,175 45,789
Purchase of fixed assets and other assets Common control
under Sinochem 15,042 -
Holdings
Subsidiary 1,327 -
Summary of Sales of goods:
Sale of goods Common control under
Sinochem Holdings 177 347
Subsidiary 721,560 645,933
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XV. Notes to major items in the Company's financial statements - (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 23,951 01.01.2026 31.12.2026 N
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XV. Notes to major items in the Company's financial statements - (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 263,000 21.04.2021 20/04/2028 Y
Parent company 67,971 01.06.2021 31/05/2028 Y
As at 30 June 2026, all guarantees provided by the parent company of the Group to the Group have
been fully discharged. No guarantee fees were incurred for the six months ended 30 June 2026 (six
months ended 30 June 2025: guarantee fees paid by the Group to its parent company amounted to
RMB 197 thousand).
c. Intercompany borrowings/lending
Borrowing/
Related Lending Commencement Termination Balance at
party amount date date year end Interest rate
Lending
Subsidiary 50,000 2025.12 2028.11 50,000 2.4%
Subsidiary 20,000 2026.2 2028.11 20,000 2.4%
ADAMA Ltd.
(Expressed in RMB '000)
Notes to the Financial Statements
XV. Notes to major items in the Company's financial statements - (cont'd)
(3) Transactions with related parties - (cont'd)
d. Receivables from and payables to related parties (including loans)
Receivable Items
June 30 December 31
Expected Expected
Related Party Book credit Book credit
Items Relationship Balance losses Balance losses
Trade receivables Subsidiary 1,882,791 - 1,563,401 -
Other non-current
assets Subsidiary 70,000 - 50,000 -
Other receivables Subsidiary 23,722 - 24,109 -
Prepayments Subsidiary 1,500 - - -
Prepayments Common control under
Sinochem Holding 2,146 - 83 -
Payable Items
June 30 December 31
Items Related Party Relationship 2026 2025
Trade payables Common control under Sinochem
Holdings 195 4,665
Other payables Subsidiary 546,251 587,644
Common control under Sinochem
Holdings 471 471
d. Other related party transactions
As at June 30,2026 , the closing balance of bank deposit in SinoChem Finance Corporation was
was 1,204 thousand RMB (amount for six months ended June , 2025 was 157 thousand RMB).
ADAMA Ltd. Semi-Annual Report 2026
Supplementary information
(Expressed in RMB '000)
Six months ended
June 30, 2026
Disposal of non-current assets 306,349
Government grants recognized through profit or loss 3,940
Custodian fees earned from entrusted operation 1,746
Recovery or reversal of expected credit losses which is assessed individually during
the years 27,827
Other profit or loss that meets the definition of non-recurring profit or loss 17,102
Other non-operating income or expenses other than the above 5,533
Tax effect (10,567)
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 2.46% 0.19 N/A
Net loss after deduction of extraordinary
gains/losses attributable to ordinary
shareholders of the Company 0.46% 0.03 N/A
ADAMA Ltd.
Legal Representative：Ga?l Hili
August 17, 2026
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