安道麦B：2024年第一季度报告（英文版）

ADAMALtd. First Quarter Report 2024 1 The Company and all members of its board of directors hereby confirm that all information disclosed herein is true, accurate and complete with no false or misleading statement or material omission. ADAMALTD. FIRSTQUARTERREPORT 2024 ADAMALtd. (hereinafter referred to as “the Company”) is a global leader in crop protection, providing solutions to farmers across the world to combat weeds, insects and disease. ADAMA has one of the widest and most diverse portfolios of active ingredients in the world, state-of-the art R&D, manufacturing and formulation facilities, together with a culture that empowers our people in markets around the world to listen to farmers and ideate from the field. This uniquely positions ADAMA to offer a vast array of distinctive mixtures, formulations and high-quality differentiated products, delivering solutions that meet local farmer and customer needs in over 100 countries globally. Please see important additional information and further details included in the Annex. April 2024Stock Code: 000553(200553) Stock Abbreviation: ADAMAA(B) Announcement No.2024-18 ADAMALtd. First Quarter Report 2024 2 Important Notice The Company’s Board of Directors, Board of Supervisors, directors, supervisors and senior managers confirm that the content of the Report is true, accurate and complete and contains no false statements, misleading presentations or material omissions, and assume joint and several legal liability arising therefrom. Steve Hawkins, the person leading the Company (President and Chief Executive Officer) as well as its legal representative, and Efrat Nagar, the person leading the accounting function and the accounting body (Chief Financial Officer), hereby assert and confirm the truthfulness, accuracy and completeness of the financial information contained in the Report. The First Quarter Report has not been audited. This Report has been prepared in both Chinese and English. Should there be any discrepancy between the two versions, the Chinese version shall prevail. ADAMALtd. First Quarter Report 2024 3 I. Main Financial Data 1. Main accounting and financial results Whether the Company performs any retroactive adjustments to, or restatements of, its accounting data of last year □ Yes √ No January - March 2024 January - March 2023 YoY +/- (%) Operating revenues (RMB’000) 7,508,8998,610,576 -12.79% Net profit attributable to shareholders of the Company (RMB’000) (227,605) 83,273 -373.32% Net profit attributable to shareholders of the Company excluding non-recurring profit and loss (RMB’000) (250,690) 44,893 -658.42% Net cash flow from operating activities (RMB’000) (735,162) (2,905,168) 74.69% Basic EPS (RMB/share) (0.098) 0.036 -372.22% Diluted EPS (RMB/share) NANANA Weighted average return on net assets -1.04% 0.36% -1.40% End of Reporting Period End of last year +/- (%) Total assets (RMB’000) 54,702,73755,405,803 -1.27% Net assets attributable to shareholders (RMB’000) 21,662,82121,924,475 -1.19% 2. Non-Recurring profit/loss √ Applicable □ Not applicable Unit: RMB’000 Item January-March 2024 Note Gains/losses on the disposal of non-current assets (including the write-off of asset impairment provisions accrued during the period) 1,159 - Government grants recognized through profit or loss (excluding government grants closely related to business of the Company and given at a fixed quota or amount in accordance with government’s uniform standard) 1,716 - Reversal of provision for receivables and contract assets, that are subject to specific provision 8,879 - Post vesting cash share based payment revaluation 11,206 Other non-operating income and expenses other than the above 5,017 - Other profit or loss that meets the definition of non-recurring profit or loss - - Less: Income tax effects 4,892 - Total 23,085 - Explanation of other profit or loss that meets the definition of non-recurring profit or loss □ Applicable √ Not applicable No such cases during the Reporting Period. ADAMALtd. First Quarter Report 2024 4 Explanation of why the Company classified an item as non-recurring profit/loss according to the definition in the First Explanatory Announcement on Information Disclosure for Companies Offering their Securities to the Public. Non-recurring Profit and Loss, and reclassified any non-recurring profit/loss item given as an example in the said explanatory announcement to recurrent profit/loss □ Applicable √ Not applicable No such cases during the Reporting Period. 3. Changes in main accounting statement items and financial indicators in the Reporting Period, as well as reasons for the changes √ Applicable □ Not applicable General Crop Protection Market Environment1 Key commodity crop prices continued to decline in the first months of 2024 and global supply continued to improve. Crop prices remain above average historical levels but the current price level has a negative impact on farmer income compared to previous years. Despite this, farmer demand is expected to remain stable under the current conditions. The channel inventory situation is easing up, but there still remains above average inventories in several geographies, including Brazil. In addition, the high interest rate environment, continue to drive a just-in-time purchasing approach by the channel. Active ingredient prices from China remained low during Q1 with some molecules even experiencing further price declines, on one hand reducing input costs but on the other creating pricing pressure on crop protection products and supporting a "wait and see" approach in the market. Update on the War Situation in Israel ADAMA is headquartered in Israel and has three manufacturing sites in the country. Following October 7th,2023, the Company continued the production in its global manufacturing sites and in Israel, with certain non-significant restrictions (which have been lifted in February 2024). This situation did not have a material impact on the Company's ability to support its markets or on ADAMA’s consolidated financial results. On the 14th of April, Israel was under an attack from Iran, with no consequences to the Company's ongoing activities. Update on Impact of Shipping Obstructions In January 2024 some major shipping lines announced that they will suspend shipping to Israel through Israeli ports and through the Suez Canal due to tensions in the Red Sea. This has led to longer transportation times, with shipping lines being diverted around Africa. As of the date of publication of this report, shipping time and costs have increased significantly, mainly in the Asia-Pacific Israel route in comparison to before January 2024. These cost increases impact only a small portion of the Company's overall shipping costs and ADAMA has been ordering relevant materials ahead of time to ensure timely supply. Currently, the Company does not anticipate this to have a significant impact on its financial results or on the ongoing supply of materials to its production facilities, although this situation might impact the company's ability to respond quickly to changing market demand. 1 Sources: CCPIA (China Crop Protection Industry Association), BAIINFO, FocusEconomics, Peer quarterly financial reports, internal sources. ADAMALtd. First Quarter Report 2024 5 Q12024 (000’RMB) Same period last year (000’RMB) +/-% Q12024 (000’USD) Same period last year (000’USD) +/-% Revenues 7,508,899 8,610,576 -12.79% 1,057,150 1,258,525 -16.00% Cost of goods sold 5,688,352 6,492,832 -12.39% 800,840 948,997 -15.61% Sales & Marketing expenses 1,080,738 1,065,293 1.45% 152,154 155,702 -2.28% General & Administrative expenses 280,258 266,369 5.21% 39,456 38,929 1.35% R&D expenses 111,852 134,902 -17.09% 15,747 19,717 -20.13% Financial Expenses 367,164 206,712 77.62% 51,705 30,222 71.08% Loss from Changes in Fair Value (148,935) (352,126) -57.70% (20,968) (51,467) -59.26% Total Net Financial Expenses 516,099 558,838 -7.65% 72,673 81,689 -11.04% Total profits (losses) (151,293) 71,111 -312.75% (21,310) 10,386 -305.19% Income tax expenses (income) 76,312 (12,162) 727.46% 10,744 (1,777) 704.61% Net profit (loss) attributable to shareholders of the Company (227,605) 83,273 -373.32% (32,054) 12,163 -363.54% EBITDA 855,7271,134,723 -24.59% 120,476165,852 -27.36% Note: Since the functional currency of main overseas subsidiaries is the USD, and the Company’s management review of the Company’s performance is based on the USD results, following explanations and analysis are based on USD-denominated numbers as listed above. In this table and all tables in this report numbers may not sum due to rounding. Analysis of Financial Highlights (1) Revenues Revenues in the first quarter declined by approximately 16% (-13% in RMB terms; -14% in CER terms) to $1,057 million, presenting a decrease of 10% in prices and a decrease of 5% in volumes. The lower sales reflect lower market prices and lower demand, attributed to the market dynamics of pricing pressure, high competition and a "wait and see" approach mainly in commoditized products as well as unfavorable weather conditions in some regions and the channel opting to hold lower levels of inventory and purchase closer to the season in light of higher interest rates. ADAMALtd. First Quarter Report 2024 6 Regional Sales Performance Europe, Africa & Middle East (EAME): Sales in EAME decreased in the first quarter of 2024 led by a contraction in the overall European crop protection market mainly from low demand following channel destocking, erratic spring season causing just-in-time purchasing patterns and lower famer demand in areas impacted by lower grain market prices. This market also experienced pricing pressure, mainly in commoditized products. North America: Consumer & Professional Solutions - Sales were lower as demand from the end-users in both the consumer and professional markets slowly recovered during the first quarter. Declining active ingredient prices from China supported "just-in-time" purchasing patterns. In the USAg market sales in the first quarter of 2024 were lower reflecting weak pricing, lower demand and strong competition. The overall pricing was lower in the first quarter of 2024 than in the first quarter of 2023, as market prices began to decline only during the second quarter of 2023. While channel inventory levels are steadily declining, demand is being impacted by sales being pushed closer to season application, while the channel is opting to hold lower inventory levels due to high interest rates. ADAMA's sales in Canada declined in the first quarter in light of lower prices, a "wait and see" approach in the market, high fungicide channel inventories, as well as strong competition particularly in commoditized products. Latin America: Brazil – the Company's sales in the first quarter following the overall challenging crop protection market due to unfavorable weather conditions, a "wait and see" approach" in the market and softer pricing impacted by strong competition, particularly in commoditized products. Despite this, the Company's differentiated products continued to be well received in the market. In the rest of LATAM sales in the first quarter reflected the overall challenging crop protection market due to unfavorable weather conditions in Northern LATAM and "wait and see" purchasing patterns combined with softer pricing in commoditized products. Despite this, the Company's differentiated products in key strategic crop segment continued to be well received in the market. Asia Pacific: In China, the branded formulations achieved business growth in constant exchange rates driven by bio-formulation new launches and well-prepared spring campaign while the Company also focused on improving the quality of the business with differentiated products despite that the market is still experiencing high channel inventories and pricing pressure especially in commodities. Market pricing in the non-ag business began normalizing from heights seen in recent years and the tech sales were mainly impacted by a "wait and see" approach in the market. In the Pacific region, sales in the first quarter were impacted by softer pricing following decline of active ingredients prices from China as well as overall high channel inventories. This was despite better weather conditions than anticipated in Australia. Sales in India were impacted by softer pricing, exceptionally dry and hot weather, high channel inventories as well as Q12024 $m Q12023 $m Change % USD Europe, Africa & Middle East (EAME) 368430 -14.5% North America 191211 -9.4% Latin America 191233 -18.1% Asia Pacific* 307384 -20.0% Of which China 154182 -15.5% Total 1,0571,259 -16.0% ADAMALtd. First Quarter Report 2024 7 "wait-and-see" purchasing behaviour in commoditized products. Sales in the wider APAC region continued to experience pricing pressure following intense competition from China, particularly in commoditized products, while dry weather and higher channel inventories impacted demand. (2) Cost of Goods and Gross Profit In the first quarter of 2024, the new inventory sold, priced at market levels, the management focus on the quality of business which led to an improvement in the sales mix of higher margin products and the lower transportation and logistic costs had a positive impact on the cost of goods and gross profit and this is despite the lower sales impacted by the decrease in prices and volumes and the negative impact of the exchange rates. (3) Operating Expenses Operating expenses include Sales and Marketing, General and Administration and R&D. The Company recorded certain non-operational, mostly non-cash, charges within its reported operating expenses amounting to RMB 136 million ($19.2 million) in Q12024 in comparison to RMB 65 million ($9.5 million) in Q12023, mainly as follows: (i) measures to improve efficiencies, (ii) non-cash amortization charges in respect of Transfer Assets received from Syngenta related to the 2017 ChemChina-Syngenta acquisition, (iii) charges related to the non-cash amortization of intangible assets created as part of the Purchase Price Allocation (PPA) on acquisitions, with no impact on the ongoing performance of the companies acquired,. For further details on these non-operational items, please see the appendix to this release Excluding the impact of the abovementioned non-operational charges, the operating expenses were lower in the first quarter of 2024, following undertaking tight OPEX management measures. (4) Financial Expenses “Financial Expenses” alone mainly reflect interest payments on corporate bonds and bank loans as well 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, net (before hedging) is RMB 367 million ($52 million) for Q12024, compared with Financial Expenses, net of RMB 207 million ($30 million) for the corresponding periods in 2023. 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” amounted to a net loss of RMB 149 million ($21 million) in Q12024, mainly due to hedging transactions, compared with a net loss of RMB 352 million ($51 million) in the corresponding period in 2023. 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 516 million ($73 million) in Q12023 compared with RMB 559 million ($82 million) in the corresponding period in 2023. The lower financial expenses in the quarter were mainly due to the net effect of lower Israeli CPI on the ILS-denominated, CPI-linked bonds as well as steps taken by the Company's management to optimize the Company's financing structure. The Company took advantage of the high interest rate environment to increase interest received from weekly bank deposits designated to support working capital, as well as improved financing terms and leveraged group funding possibilities by taking long-term loans in China at attractive rates, which minimized the ADAMALtd. First Quarter Report 2024 8 increase in bank interest expenses paid in the first quarter of 2024. (5) Income Tax Expenses Despite reaching losses before tax, the Company recorded tax expenses in the quarter mainly because the losses were primarily incurred by subsidiaries with relatively lower tax rates, while some of them did not create deferred tax assets on the losses. On the other hand, the subsidiaries that generated profit have a higher tax rate. In the first quarter of 2024 the Company recorded tax expenses due to the non-cash impact of the weakness of the BRL compared with tax income due to stronger BRL in the first quarter of 2023. Changes in main assets and liabilities Unit: 000 RMB Assets and liabilities End of Reporting Period End of last year +/- (%) Explanation Derivative financial assets 128,562850,137 -84.88% Realization and revaluation of derivatives Other receivables 1,635,4911,054,30255.13% Increase mainly due to securitization programs Derivative financial liabilities 325,092607,787 -46.51% Realization and revaluation of derivatives Taxes payable 561,490407,230 37.88% Seasonality increase mainly due to VAT II. Information regarding Shareholders 1. Total number of ordinary shareholders and preference shareholders who had resumed their voting right and shareholdings of top 10 shareholders at the period-end Unit: share Total number of ordinary shareholders at the end of the Reporting Period 41,099 (the number of ordinary A share shareholders is 28,482; the number of B share shareholders is 12,617) Total number of preference shareholders who had resumed their voting right at the end of the Reporting Period (if any) 0 Shareholdings of top 10 shareholders (not including Shares Lent for the Relending Financing) Name of shareholder Nature of shareholder Shareholding percentage Number of shares held Number of restricted shares held Pledged or frozen shares Status Status Syngenta Group Co., Ltd. State-owned legal person 78.47% 1,828,137,961 -- -- -- China Cinda Asset Management Co., Ltd. State-owned legal person 1.34% 31,115,916 -- -- -- Bosera Funds-China Merchants Bank- Bosera Funds Xincheng No.2 Collective Asset Management Plan Others 0.28% 6,500,000 -- -- -- Wu Feng Domestic Individual 0.28% 6,495,369 -- -- -- Bosera Funds-Postal Savings Bank- Bosera Funds Xincheng No.3 Collective Asset Management Plan Others 0.26% 6,000,000 -- -- -- ADAMALtd. First Quarter Report 2024 9 Zhu Shenglan Domestic Individual 0.25% 5,756,000 -- -- -- Agricultural Bank of China- CSI 500 Exchange Traded Open-end Index Securities Investment Fund Others 0.25% 5,720,984 -- -- -- Hong Kong Securities Clearing Company Ltd. (HKSCC) Overseas legal person 0.20% 4,756,753 -- -- -- China Universal Fund-Industrial Bank-China Universal-Strategic Enhancement No.3 Collective Asset Management Plan Others 0.19% 4,400,000 -- -- -- Qichun County State-owned Assets Supervision and Administration Bureau State-owned legal person 0.18% 4,169,266 -- -- -- Shareholdings of top 10 non-restricted shareholders Name of shareholder Number of non-restricted shares held at the period-end Types of Shares Type Number Syngenta Group Co., Ltd. 1,828,137,961 RMB ordinary share 1,828,137,961 China Cinda Asset Management Co., Ltd. 31,115,916 RMB ordinary share 31,115,916 Bosera Funds-China Merchants Bank- Bosera Funds Xincheng No.2 Collective Asset Management Plan 6,500,000 RMB ordinary share 6,500,000 Wu Feng 6,495,369 RMB ordinary share 6,495,369 Bosera Funds-Postal Savings Bank- Bosera Funds Xincheng No.3 Collective Asset Management Plan 6,000,000 RMB ordinary share 6,000,000 Zhu Shenglan 5,756,000 RMB ordinary share 5,756,000 Agricultural Bank of China- CSI 500 Exchange Traded Open-end Index Securities Investment Fund 5,720,984 RMB ordinary share 5,720,984 Hong Kong Securities Clearing Company Ltd. (HKSCC) 4,756,753 RMB ordinary share 4,756,753 China Universal Fund-Industrial Bank-China Universal-Strategic Enhancement No.3 Collective Asset Management Plan 4,400,000 RMB ordinary share 4,400,000 Qichun County State-owned Assets Supervision and Administration Bureau 4,169,266 RMB ordinary share 4,169,266 Explanation on associated relationship or/and persons Syngenta Group Co., Ltd. is not related party or acting-in-concert party as prescribed in the Administrative Methods for Acquisition of Listed Companies to other shareholders. It is unknown to the Company whether shareholders above are related parties or acting-in-concert parties as prescribed in the Administrative Methods for Acquisition of Listed Companies. Particular about shareholder participate in the securities Shareholder Wu Feng held 4,848,843 shares of the Company through a common securities account and 1,646,526 shares of the Company through a credit collateral securities trading account, altogether 6,495,369 shares. Shareholder Zhu Shenglan held 5,756,000 shares of the Company through a credit collateral securities trading ADAMALtd. First Quarter Report 2024 10 lending and borrowing business (if any) account. 2. Involvement of Shareholders holding more than 5% of shares, Top 10 Shareholders and Top 10 Non-restricted Shareholders in Lending of Shares in the Relending Financing of Funds and Securities √ Applicable □ Not applicable Shareholders holding more than 5% of shares, Top 10 Shareholders and Top 10 Non-restricted Shareholders in Lending of Shares in the Relending Financing of Funds and Securities Name of Shareholders Shareholding of Common Securities Account and Credit Collateral Securities Trading Account at the Beginning Period Shares Lent in Relending Financing of Funds and Securities and Not Yet Returned at the Beginning Period Shareholding of Common Securities Account and Credit Collateral Securities Trading Account at the Ending Period Shares Lent in Relending Financing of Funds and Securities and Not Yet Returned at the Ending Period Total Number Shareholding Proportion of the Total Equity Total Number Shareholding Proportion of the Total Equity Total Number Shareholding Proportion of the Total Equity Total Number Shareholding Proportion of the Total Equity Agricultural Bank of China- CSI 500 Exchange Traded Open-end Index Securities Investment Fund 2,476,4840.11% 702,0000.03% 5,720,9840.25% 515,3000.02% 3. Change from the Previous Reporting Period to the Top 10 Shareholders and Top 10 Non-restricted Shareholders due to the Lending/Returning of Shares in the Relending Financing of Funds and Securities □ Applicable √Not Applicable 4. Total number of preference shareholders and shareholdings of the top 10 of such at the period-end □ Applicable √ Not applicable III. Other Significant Events □ Applicable √ Not applicable ADAMALtd. First Quarter Report 2024 11 IV. Financial Statements i. Financial statements 1. Consolidated balance sheet Prepared by ADAMALtd. 31 March 2024 Unit: RMB’000 Item March 31, 2024 December 31, 2023 Item March 31, 2024 December 31, 2023 Current assets: Current liabilities: Cash at bank and on hand 3,710,053 4,881,328 Short-term loans 5,299,947 5,733,522 Financial assets held for trading 1,873 1,912 Derivative financial liabilities 325,092 607,787 Derivative financial assets 128,562 850,137 Bills payable 516,770 613,507 Bills receivable 63,500 86,303 Accounts payable 4,833,578 4,649,733 Accounts receivable 9,088,939 8,146,677 Contract liabilities 1,314,153 1,514,365 Receivables financing 117,203 123,050 Employee benefits payable 857,844 847,039 Prepayments 309,572 305,883 Taxes payable 561,490 407,230 Other receivables 1,635,491 1,054,302 Other payables 1,521,335 1,469,319 Inventories 12,823,850 13,088,757 Non-current liabilities due within one year 2,068,629 2,297,888 Other current assets 1,076,415 1,083,714 Other current liabilities 731,913 753,827 Total current assets 28,955,458 29,622,063 Total current liabilities 18,030,751 18,894,217 Non-current assets: Non-current liabilities: Long-term receivables 63,039 68,752 Long-term loans 3,374,215 2,885,939 Long-term equity investments 32,133 31,474 Debentures payable 6,848,469 6,919,423 Other equity investments 132,245 132,018 Lease liabilities 473,192 495,459 Investment properties 21,736 22,145 Long-term accounts payable 96,471 97,840 Fixed assets 9,850,569 10,040,113 Long-term employee benefits payables 686,613 671,530 Construction in progress 2,682,814 2,507,328 Provisions 298,188 299,251 Right-of-use assets 606,940 625,235 Deferred tax liabilities 293,727 297,103 Intangible assets 5,256,827 5,318,281 Other non-current liabilities 2,938,290 2,920,566 Goodwill 5,009,990 5,001,538 Total non-current liabilities 15,009,165 14,587,111 Deferred tax assets 1,585,389 1,601,641 Total liabilities 33,039,916 33,481,328 Other non-current assets 505,597435,215 Shareholders’ equity: Total non-current assets 25,747,279 25,783,740 Share capital 2,329,812 2,329,812 Total assets 54,702,737 55,405,803 Capital reserves 12,950,464 12,950,464 Other comprehensive income 1,647,909 1,675,896 Special reserves 10,533 16,595 Surplus reserves 273,617 273,617 Retained earnings 4,450,486 4,678,091 Total equity attributed to the shareholders of the company 21,662,821 21,924,475 Non-controlling interests - - Total equity 21,662,821 21,924,475 Total liabilities and equity 54,702,737 55,405,803 Steve Hawkins Legal representative Efrat Nagar Chief of the accounting work Efrat Nagar Chief of the accounting organ ADAMALtd. First Quarter Report 2024 12 2. Consolidated income statement Unit: RMB’000 Item January-March,2024 January-March,2023 1. Total operating Income 7,508,899 8,610,576 Less: Cost of sales 5,688,352 6,492,832 Taxes and surcharges 24,598 25,849 Selling and Distribution expenses 1,080,738 1,065,293 General and Administrative expenses 280,258 266,369 Research and Development expenses 111,852 134,902 Financial expenses 367,164 206,712 Including: Interest expense 297,099 267,287 Interest income 64,943 43,225 Add: Investment income, net 4,283 3,537 Including: Income from investment in associates and joint ventures 4,283 3,537 Loss from changes in fair value (148,935) (352,126) Credit impairment reversal (losses) (3,461) 8,639 Asset Impairment reversal (losses) 11,408 (41,939) Gain from disposal of assets 1,160 21,825 2. Operating profit (loss) (179,608) 58,555 Add: Non-operating income 33,200 20,237 Less: Non-operating expense 4,885 7,681 3. Total profit (loss) (151,293) 71,111 Less: income tax expense (income) 76,312 (12,162) 4. Net profit (loss) (227,605) 83,273 4.1 Classified by nature of operations 4.1.1 Continuing operations (227,605) 83,273 4.2 Classified by ownership 4.2.1 Shareholders of the Company (227,605) 83,273 4.2.2 Non-controlling interests - 5. Other comprehensive income net of tax (27,987) (210,116) Other comprehensive income net of tax attributable to shareholders of the Company (27,987) (210,116) 5.1 Items that will not be reclassified into profit/loss (3,377) 7,936 5.1.1 Re-measurement of defined benefit plan liability (3,377) 7,936 5.2 Items that were or will be reclassified to profit or loss (24,610) (218,052) 5.2.1 Effective portion of gains or loss of cash flow hedge 13,485 (9,973) 5.2.2 Translation differences of foreign financial statements (38,095) (208,079) Other comprehensive income net of tax attributable to Non-controlling interests - - 6. Total comprehensive income for the period (255,592) (126,843) Total comprehensive income attributable to shareholders of the Company (255,592) (126,843) Total comprehensive income attributable to Non-controlling interests - - 7. Earnings (loss) per share 7.1 Basic earnings (loss) per share (RMB/ share) (0.098) 0.036 7.2 Diluted earnings (loss) per share (RMB/ share) N/AN/A Steve Hawkins Legal representative Efrat Nagar Chief of the accounting work Efrat Nagar Chief of the accounting organ ADAMALtd. First Quarter Report 2024 13 3. Consolidated cash flow statement Unit: RMB’000 Item January-March,2024 January-March,2023 1. Cash flows from operating activities: Cash received from sale of goods and rendering of services 5,034,379 6,839,010 Refund of taxes and surcharges 47,216 42,714 Cash received relating to other operating activities 208,380 109,137 Sub-total of cash inflows from operating activities 5,289,975 6,990,861 Cash paid for goods and services 4,151,625 7,879,994 Cash paid to and on behalf of employees 1,020,4301,038,318 Payments of taxes and surcharges 111,233170,562 Cash paid relating to other operating activities 741,849807,155 Sub-total of cash outflows from operating activities 6,025,1379,896,029 Net cash flows from operating activities (735,162) (2,905,168) 2. Cash flows from investing activities: Cash receipts from investment income - 1,710 Cash received from disposal of investments 134,17546,894 Net cash received from disposal of fixed assets, intangible assets and other long-term assets 3,703 26,060 Cash received for other investing activities - 14,477 Sub-total of cash inflows from investing activities 137,878 89,141 Cash paid to acquire fixed assets, intangible assets and other long-term assets 468,399 580,045 Net cash paid to acquire subsidiaries or other business units - 148,460 Cash paid for other investing activities 142,429 - Sub-total of cash outflows from investing activities 610,828728,505 Net cash flows from investing activities (472,950) (639,364) 3. Cash flows from financing activities: Cash received from borrowings 863,0753,594,576 Cash received relating to other financing activities 765,459 18,569 Sub-total of cash inflows from financing activities 1,628,534 3,613,145 Cash repayment of borrowings 1,382,652199,851 Cash payment for dividends, profit distributions or interest 167,805179,425 Including: dividends paid to non-controlling interest - 13,684 Cash paid relating to other financing activities 61,284383,092 Sub-total of cash outflows from financing activities 1,611,741762,368 Net cash flows from financing activities 16,793 2,850,777 4. Effect of foreign exchange rate changes on cash and cash equivalents 12,915 (52,929) 5. Net decrease in cash and cash equivalents (1,178,404) (746,684) Add: Cash and cash equivalents at the beginning of the period 4,857,358 4,225,253 6. Cash and cash equivalents at the end of the period 3,678,954 3,478,569 ADAMALtd. First Quarter Report 2024 14 ii. Auditor’s report Is this Report audited □ Yes √ No This Report is unaudited. ADAMALtd. Board of Directors April 26,2024 I. Main Financial Data