Abstract of 2019 Semi-Annual Report Stock Code: 000553(200553) Stock Abbreviations: ADAMA A(B) Announcement No.2019-47 Abstract of the 2019 Semi-Annual Report of ADAMA Ltd. I. Important Reminder
This Semi-Annual Report Abstract is from the full text of the Semi-Annual Report. Investors are advised to read the full text of the Semi-Annual Report published on the media designated by China Securities Regulatory Commission for having a round understand of theCompany’s performance, financial status and future development plan.
All the directors attended the Board of Directors meeting to review the Semi-Annual Report. No disagreement was raised by the directors, supervisors, and senior managements.
Non-standard auditor report
□ Applicable√ Not applicable
Plan approved by the Board of Directors for dividend distribution of ordinary shares or increasing the capital by the transfer of capital reserves.
□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.
Plan approved by the Board of Directors for dividend distribution of preferred shares
□ Applicable√ Not applicable
II. Basic information about the Company
1. Company profile
|||||
|-|-|-|-|
|Stock name|ADAMA A(B)|Stock code|000553(200553)|
|Stock exchange|Shenzhen Stock Exchange|||
|Contact Person|Board Secretary|Securities Affairs Representative|Investor Relations Manager|
|Name|Li Zhongxi|Liang Jiqin|Wang Zhujun|
|Address|6/F, No.7 Office Building, No.10 Courtyard, Chaoyang Park South Road, Chaoyang District, Beijing|||
|Tel.|010-56718110|010-56718110|010-56718110|
|E-mail|irchina@adama.com|irchina@adama.com|irchina@adama.com|

2. Major accounting data and financial index
Whether the Company performed any retroactive adjustments to or restatement of its accounting data
√Yes□No
Reason for retrospective adjustment or restatement: Business combination under common control.
|||||
|-|-|-|-|
||Same period of last year||+/- (%)|
|Reporting Period||||
||Before adjustment|After adjustment|After adjustment|

Abstract of 2019 Semi-Annual Report
||||||
|-|-|-|-|-|
|Operating revenues (RMB’000)|13,616,032|13,026,258|13,639,073|-0.17%|
|Net profit attributable to shareholders of|588,638|2,362,781|||
||||2,389,167|-75.36%|
|the Company (RMB’000)|||||
|Net profit attributable to shareholders of|||||
|the Company excluding non-recurring|430,270|790,296|790,296|-45.56%|
|profit and loss (RMB’000)|||||
|Net cash flow from operating activities|(304,950)|779,518|||
||||839,803|-136.31%|
|(RMB’000)|||||
|Basic EPS (RMB/share)|0.2406|0.9658|0.9765|-75.36%|
|Diluted EPS (RMB/share)|N/A|N/A|N/A|N/A|
|Weighted average return on net assets|2.59%|11.65%|11.53%|-8.94%|
|||End of last year||+/- (%)|
||End of Reporting||||
||Period|Before adjustment|After adjustment|After adjustment|
|Total assets (RMB’000)|45,810,089|41,577,798|44,135,063|3.80%|
|Net assets attributable to shareholders|22,479,404|21,543,425|||
||||22,744,862|-1.17%|
|of the Company (RMB’000)|||||

3. Shares and shareholders
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||51,819 (the number of ordinary A share|||||||0|
|Total number of common||||||Total number of preferred shareholders that||||
|||shareholders is 35,774;||||||||
|shareholders at the end of the||||||had resumed their voting right at the end of||||
|||the number of B share shareholders is||||||||
|Reporting Period||||||the Reporting Period (if any)||||
|||16,045)||||||||
|Shareholding of common shareholders holding more than 5% shares or the top 10 shareholders||||||||||
||||Holding||Number of||Pledged or frozen shares|||
||Nature of|||Number of||||||
|Name of shareholder|shareholder||percentage|shares held|restricted||Status|Number||
||||(%)||shares held|||||
|China National AgrochemicalCo., Ltd.|State-ownedlegal person||74.02%|1,810,883,039|1,810,883,039|||||
||||||||-|-||
|Jingzhou Sanonda HoldingCo., Ltd.|State-ownedlegal person||4.89%|119,687,202|-|||||
||||||||-|-||
|China Cinda AssetManagement Co., Ltd.|State-ownedlegal person||1.37%|33,557,046|-|||||
||||||||-|-||
|China Structural ReformFund Co., Ltd.|State-ownedlegal person||1.37%|33,557,046|-|||||
||||||||-|-||
|Portfolio No.503 of NationalSocial Security Fund|Others||0.53%|12,999,893|-|||||
||||||||-|-||
|CCB Principal-ICBC-AvicTrust, Trust Plan of PooledFunds of CCB PrincipalPrivate PlacementInvestment, Tianqi (2016)No. 293 of Avic Trust|Others||0.53%|12,885,906|-|||||
||||||||-|-||
|Industrial Bank Co., Ltd,Mixed Securities InvestmentFund, Aegon-Industrial TrendInvestment (LOF)|Others||0.33%|8,053,736|-|||||
||||||||-|-||
|Jiang Yun|Domesticindividual||0.27%|6,500,000|-|||||
||||||||-|-||
|Caitong Fund FuchunChuangyi Private PlacementNo.3 Asset Management Plan|Others||0.19%|4,697,986|-|||||
||||||||-|-||
|GUOTAI JUNAN|Foreign||0.19%|4,697,389|0||-|-||

Abstract of 2019 Semi-Annual Report
||||
|-|-|-|
|SECURITIES(HONGKONG)LIMITED|legal person||
|||Jingzhou Sanonda Holdings Co., Ltd. and CNAC are related parties, and are|
|||acting-in-concert parties as prescribed in the Administrative Methods for Acquisition of|
|Explanation on associated relationship|||
|||Listed Companies. Sanonda Holding is a controlled subsidiary of CNAC. It is unknown|
|or/and persons|||
|||whether the other shareholders are related parties or acting-in-concert parties as|
|||prescribed in the Administrative Methods for Acquisition of Listed Companies.|
|Particular about shareholder participate in|||
|the securities lending and borrowing||-|
|business (if any)|||

4. 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.
5. Corporate Bonds
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and not yet due or due but failed to pay as of the date of the approval of this Semi-Annual Report by the Board of Directors.
No.
III. Performance Discussion and Analysis
1. Business Operation summary in the reporting period
Whether the company needs to comply with the disclosure requirements of certain industry
No
Significant precipitation in North America in the first quarter followed by unprecedented flooding in the second quarter, alongside extreme dry weather in Europe, India and parts of Asia-Pacific, delayed and reduced application of crop protection products in these regions. Latin America benefited from relatively strong demand in the southern hemisphere off-season.India’s monsoon season started late in the second quarter, delaying the sowing of several summer-planted crops.
Crop prices have generally remained subdued in the first half of 2019, with the exception of corn, which continues to challenge farmer income in most regions, resulting in continued sluggish demand for crop protection products. The sustained supply-constrained environment, mostly owing to increased environmental focus in China, has seen continued industry-wide shortages in certain raw materials and intermediates, and resulted in procurement costs remaining elevated compared to the first half of last year. The Company continues to raise its prices in all regions and contain its manufacturing and other operating costs to mitigate this impact.
For ADAMA, the extended cold and wet conditions in North America, alongside dry weather in Europe, India and parts of Asia-Pacific, delayed and reduced application of crop protection products, while continued tight supply conditions prevented the Company from taking advantage of demand for certain products.
Strong growth in Latin America, led by Brazil, as well as resilient performance in APAC, notably Australia,
alongside the contribution of joiners Bonide and Anpon, partially offset these weather- and supply-related delays.
In China, continued strong demand for theCompany’s differentiated, formulated and branded products is
supporting the shift towards sales through its own channels and away from sales of unformulated, technical active
Abstract of 2019 Semi-Annual Report ingredients to intermediaries.
The Company continues to drive growth with new launches of differentiated product throughout all regions. The continued supportive pricing environment allowed for the raising of prices by an average of3% across all regions, passing on some of the impact of the constrained supply and higher procurement costs, while mitigating the impact of generally softer currencies. In addition, the Company continues to contain its manufacturing and other operating costs, while recording idleness costs at Jingzhou old site.
Looking toward the second half of the year, the Company expects robust growth, as the southern hemisphere regions, which are performing strongly, move into their peak season, as the Monsoon season progresses in India, and as supply constraints start alleviating.
Increasing collaboration activities
The Company continues to advance collaboration opportunities with other ChemChina group entities, as well as other entities of the Sinochem group, to make the most of its positioning.
Jingzhou Old Site
Following resumption of operations at the Jingzhou old site in late March, the Company is advancing the gradual ramp-up of production. The new state-of-the-art wastewater treatment facility is operational, and the upgraded biological-decomposition systems are being acclimated to the improved wastewater quality. As this progresses, the Company is still experiencing constrained supply in key products manufactured at the site, especially impacting the Americas, Asia-Pacific, China and India, Middle-East and Africa, constraining sales and gross profit by approximately$100 million and$35 million, respectively, in the half-year, and recorded approximately$20 million in related idleness costs during the period, bringing the impact from the disruption on EBITDA to approximately$50 million and on Net Income to approximately$40 million. In recent weeks, the Ecological Protection Supervision Team of the central government commenced on-site inspections at manyChemChina’s group companies, including theCompany’s sites in China, as part of its strengthening ongoing environmental and safety focus. ADAMA is working in full cooperation, in the context of its 3-year relocation and upgrade process which is due to conclude next year, to identify and rectify any safety or environmental matter.
Notwithstanding that the old site only produces a small number of products for the group, and the fact that ADAMA has significant production and procurement capabilities elsewhere in China and worldwide ,the suspension has had a negative impact on theCompany’s performance as described above.
Regarding the explanations on the changes of the financial data, please refer to the “II Analysis of Main Business” of Section IV of the Semi-Annual Report.
2. Matters regarding the financial report
(1) Explanation of the changes of the accounting policy, the accounting estimates and the accounting methods compared to the last financial report
√ Applicable□Not applicable
In preparation of the 2018 Annual Report, the group began to adopt the Notice on Revising the Format of 2018 Financial Statements for General Enterprise promulgated by Ministry of Finance on June 15th, 2018 (Caikuai[2018] No.15).
The Company began to adopt the revised Accounting Standards for Business Enterprises No. 21 - Leases (CaiKuai[2018] No. 35) (“Revised ASBE21”) promulgated on December 7, 2018 by the Ministry of Finance, as of January 1, 2019.
For details, please refer to the Announcements on the Change of Accounting Policy published by the Company on March 21, 2019 and April 30, 2019.
(2) Explain retrospective restatement due to correction of significant accounting errors in the reporting period□ Applicable√ Not applicable
Abstract of 2019 Semi-Annual Report No such cases in the reporting period.
(3) Explain change of the consolidation scope as compared with the financial reporting of last year
√Applicable□Not applicable
During the reporting period, the Company acquired Bonide Products Inc. and Jiangsu Anpon Electrochemical Co., Ltd. which entailed the change of the consolidation scope. For details, please refer to item VI “Change of the Consolidation Scope” of the notes of the financial report.