1. StockCode:000553(200553)Stockabbreviation:ADAMAA(B)AnnouncementNo.2023-2ADAMALtd.2022FullYearPerformanceEstimationTheCompanyandallthedirectorsconfirmthattheinformationdisclosedhereinistrue,accurate,completeandcontainsnofalserecording,misleadingstatementormaterialomission.I.PerformanceEstimation1.Estimationperiod:JanuarytoDecember20222.Estimatednetprofit:increasecomparedwiththecorrespondingperiodlastyearItemCurrentreportingperiodJanuarytoDecember2022SameperiodlastyearJanuarytoDecember2021Netincomeattributabletotheshareholdersofthelistedcompany(RMBinmillions)418-625157PercentageincreaseYoY166.2%-298.1%Netincomeexcludingnon-recurringprofitsandlosses(RMBinmillions)305-51278PercentageincreaseYoY291.0%-556.4%Basicearningspershare(RMB)0.1792-0.26850.0676Note:The‘non-recurringprofitsand。
2. losses’referredtoaboveareasdefinedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingtheirSecuritiestothePublic-Non-RecurringProfitandLoss.II.Pre-auditoftheestimatedperformanceTheestimatedresultsofthisperiodarethepreliminaryestimationoftheCompanyandhavenotbeenauditednorreviewedbycertifiedaccountants.III.ExplanationsforPerformanceVariationSalesForthefullyearof2022,ADAMAisexpectingtoreportagrowthinsalesofapproximately20%inRMBterms(16%inUSDterms),comparedtothesameperiodlastyear.Theexpectedstronggrowthoverthefullyearwasprimarilydrivenbyasignificant,morethan10%increaseinprices,atrendwhichstartedinthethirdquarterof2021,complementedbyvolumegrowthandachieveddespitethenegativeimpactofexchangeratesandsupplychallenges.Thisgrowthisareflectionoftherobustdemandinthemar。
3. ketresultingfromtheelevatedglobalcroppricesduring2022.TheCompany'sperformancewasparticularlystronginBrazil,wheretheCompanycontinuestoworktostrengthenitspositionwithinthisgrowingmarket,whiletheCompany'ssalesinChinacontinuedtogrowstrongly,alsoduetoconsolidationduring2021ofanewlyacquiredsubsidiary.EBITDAInthefullyearof2022,theCompanyisexpectingtoreportanincreaseinEBITDAandinitsmarginincomparisonto2021.Thestrongtop-linegrowthmorethancompensatedfortheimpactsofhigherprocurement,productionandlogisticscosts,exchangeratesaswellashigheroperatingcosts,whichwereimpactedamongstotherfactorsbyhigherinflation.ItshouldbenotedthatcertainrelocationandupgradechargeshavesignificantlydeclinedsinceQ12022,astherelocationandupgradeofthemanufacturingJingzhousiteinChinahasbeencompletedandisnowatahighlevel。
4. ofoperation.NetIncomeInthefullyearof2022,theCompanyisexpectingtoreportanincreaseinNetIncomecomparedto2021,followingachievinghigherOperatingProfitanddespiteasignificantincreaseinfinancialexpensesinlightofthehighIsraeliCPI,higherhedgingcostsonexchangeratesandanincreaseininterestrates.Inthefourthquarterof2022,theCompanyisexpectedtorecordanon-recurring,non-cashprovisionforassetimpairmentinitssubsidiaries(pleaserefertoAnnouncementonAssetsImpairment(AnnouncementNo.2023-3)fordetails)andincomeduetorevaluationofputoptionsattributedtominoritystakesinoneofthesesubsidiaries.TheCompany’sreportedNetIncomein2022isexpectedtoreflectnetexpensesinrespectofcertaintransitory,non-operationalornon-cashitems,includingmainly:i.Non-cashamortizationchargesinrespectofTransferassetsreceivedfromSyngentarelat。
5. edtothe2017ChemChina-Syngentaacquisition;ii.Non-cashamortizationnetchargesrelatedtointangibleassetscreatedaspartofthePurchasePriceAllocation(PPA)onacquisitions,withnoimpactontheongoingperformanceofthecompaniesacquired;iii.Manufacturingfacilitiesrelocation&upgrade-relatedcosts:certainextraordinarychargesrelatedlargelytoatemporarydisruptionoftheproductionofcertainproducts,wereadjustedin2021.Thesechargeshavesignificantlydeclinedin2022,astherelocationandupgradeofthemanufacturingJingzhousiteinChinahasbeencompletedandisnowatahighlevelofoperation;iv.Incentiveplans:ADAMAgrantedcertainofitsemployees,along-termincentive(LTI)intheformof'phantom'awardslinkedtotheCompany’sshareprice.Assuch,theCompanyrecordsanexpense,orrecognizesincome,dependingonthefluctuationintheCompany’sshareprice,regardl。
6. essofawardexercises.ToneutralizetheimpactofsuchsharepricemovementsonthemeasurementoftheCompany’sperformanceandexpectedemployeecompensationandtoreflecttheexistingphantomawards,intheCompany’sadjustedfinancialperformance,theLTIispresentedonanequity-settledbasisinaccordancewiththevalueoftheexistingplanatthegrantdate.v.Non-cash,non-recurringprovisionforassetimpairmentandrevaluationofputoptionsattributedtominoritystakeinasubsidiary.Excludingtheimpactoftheabovementionedtransitory,non-operationalornon-cashitems,theCompanyisexpectingtodeliverthefollowing:AdjustednetincomeattributabletoshareholdersinthefullyearisexpectedtobebetweenRMB777-984million,comparedtoRMB895millioninthesameperiodlastyear.AdjustedbasicearningspershareareexpectedtobebetweenRMB0.3337-0.4229inthefullyear,comparedtolast。
7. year'searningspershareofRMB0.3843inthefullyear.IV.OtherRemarksTheestimatedresultsaboveareonlypreliminarycalculationsperformedbythefinanceteamoftheCompanybasedoninitialfinancialdataavailabletotheCompanyandhavenotbeenauditedorreviewedbytheCompany'sindependentauditors.Theseestimationsmaychange,interalia,asaresultofthefurtherprocessingandanalysisofthefinancialdatathattheCompanywillperformforthepreparationofitsfinancialstatementsforthefullyearandfourthquarterof2022.PleaserefertotheReportforthefullyear2022tobedulydisclosedbytheCompanyonMarch30th,2023forspecificandaccuratefinancialinformation.Investorsareremindedtoexercisecautionwhenmakinginvestmentdecisions.MediaforInformationDisclosureoftheCompany:ChinaSecuritiesJournal,SecuritiesTimesandCninfo().ByorderoftheBoardADAMALtd.January31,2。
8. 023。
