2024-03-26-深交所-安道麦B_2023年年度报告（英文版）_281页_3mb

ADAMA Ltd. 2023 Annual Report Summary

Core Content Overview

ADAMA Ltd. is a global leader in the crop protection industry, offering solutions to farmers worldwide against weeds, insects, and diseases. The company has a broad and diverse portfolio of active ingredients, advanced R&D, manufacturing, and formulation facilities, and a culture that empowers local teams to address specific market needs. It operates in over 100 countries through approximately 60 subsidiaries and provides differentiated products tailored to local conditions.

Key Information

• Company Name: ADAMA Ltd. (安道麦股份有限公司)
• Stock Code: 000553, 200553
• Stock Exchange: Shenzhen Stock Exchange
• Registered Address: No. 93, East Beijing Road, Jingzhou, Hubei
• Zip Code: 434001
• Website: www.adama.com
• Email: irchina@adama.com
• Legal Representative: Steve Hawkins
• Auditors: Deloitte Touche Tohmatsu Certified Public Accountants LLP
• Signing Auditors: Ji Yuting and Zhao Jingyuan

Financial Highlights

• No dividend distribution or capital reserve transfer was planned for the 2023 reporting period.
• The company made retrospective adjustments to its financial data in accordance with updated regulations on non-recurring profit and loss, with no significant impact on comparable accounting periods.
• Net profit attributable to shareholders for 2023 was -RMB 1,605,887,000, a -363.52% decrease compared to 2022.
• Net profit excluding non-recurring items was -RMB 1,851,491,000, a -469.1% drop from 2022.
• Operating revenue for 2023 was RMB 32,779,456,000, a -12.31% decline from 2022.
• Net cash flows from operating activities increased by 178.28% to RMB 2,617,877,000 in 2023.
• Basic EPS was -RMB 0.6893, a -363.49% decrease from 2022.
• Total assets decreased by 4.44% to RMB 55,405,803,000.
• Net assets attributable to shareholders dropped by 5.19% to RMB 21,924,475,000.

Main Financial Results by Quarter (RMB'000)

Main Business and Operations

• The company's main business includes the development, manufacturing, and commercialization of crop protection products, primarily herbicides, fungicides, and insecticides.
• Procurement model: Multiple channels for major raw materials, with the following proportions of total purchases:
  • AI Tech: 30.8%
  • Raw Materials: 24.6%
  • Co-Formulants: 5.9%
  • Formulated Products: 22.1%
  • Packaging: 6.7%
  • Other: 9.8%
• Raw material prices declined throughout 2023, particularly for active ingredients, due to lower global energy prices and improved supply conditions.
• Capacity Utilization for main products in 2023:
  • Herbicides: 46%
  • Fungicides: 29%
  • Insecticides: 67%
• Capacity Under Construction: None for the main products in 2023.
• Global Formulation Capacity: Approximately 590,000 tons.

Major Production Sites

• Neot Hovav, Israel: Insecticides, fungicides active ingredients, formulations, R&D center, and non-agro activities.
• Ashdod, Israel: Herbicides active ingredients, formulations, and non-agro activities.
• Anpon, China: Insecticides, herbicides active ingredients, formulations, flame retardants, and non-agro activities.
• Sanonda, China: Insecticides active ingredients and formulations.
• ADAMA Huifeng, China: Herbicides and fungicides active ingredients, formulations, and packaging.
• Taquari, Brazil: Active ingredients and formulations for insecticides, fungicides, and herbicides.

Shareholding Structure

• Controlling Shareholder: Syngenta Group (since June 2020).
• Syngenta Group is a subsidiary of CNAC, which is under Sinochem Holdings, ultimately controlled by SASAC.
• No change in controlling shareholder during the reporting period.

Corporate Governance and Regulatory Compliance

• All directors attended the board meeting for the review of the report.
• The report is subject to Chinese and international accounting standards, with no material differences in accounting data during the reporting period.
• The company received EIA approval for the "Recycling Solvent Purification Project" for its insecticide series products.
• No abnormal production suspension occurred during the reporting period.
• The company holds various certifications and permits, including:
  • Pesticide Production Permit
  • Safety Production Permit
  • Business License for Hazardous Chemicals
  • Registration Certificate of Hazardous Chemicals
  • Pollutant Emission Permit
  • Water Extraction Permit
  • Port Operation Permit
  • Port Shoreline Use Permit

Risk Factors

• Exchange rate fluctuations (including Israel CPI and NIS).
• Interest rate changes.
• Fluctuations in raw material and active ingredient prices.
• Sales fluctuations.
• Global economic conditions and weather volatility.
• Regulatory changes and government policies.
• High channel inventory and low demand in 2023 due to high interest rates and low active ingredient prices in China.

Outlook

• The company continues to focus on innovation, R&D, and local market adaptation.
• It aims to maintain its competitive edge through differentiated products and efficient delivery technologies.
• The global agricultural market remains a key driver, with stable demand for crop protection products despite price pressures.