StockCode:000553(200553)StockAbbreviation:ADAMAA(B)AnnouncementNo.2019-27
ADAMALtd.
Q12019PerformanceEstimation
TheCompanyandallthedirectorsconfirmthattheinformationdisclosedistrue,accurate,completeandwithnofalserecording,misleadingstatementormaterialomission.
I.PerformanceEstimation
1.Estimationperiod:January1,2019–March31,2019
2.Estimatedperformance:lowercomparedwiththecorrespondingperiodlastyear
Item Currentreportingperiod Sameperiodlastyear
JanuarytoMarch2019 JanuarytoMarch2018
aspreviouslyreported
Netincomeattributabletothe 338–391
shareholdersofthelisted 2,032
company PercentagedecreaseYoY
(RMBinmillions) 80.7%–83.4%
Basicearningspershare 0.1381–0.1602 0.8306
(RMB)
II.Pre-auditoftheestimatedperformance
TheestimatedresultsofthisperiodarethepreliminaryestimationoftheCompanyandhavenotbeenauditednorreviewedbycertifiedaccountants.
III.ExplanationsforPerformanceVariation
TheCompanyisexpectingtodeliveranotherfirstquarterofmorethan$1billioninsales,almostmatchinglastyear’sbest-ever,overcomingthedisruptionattheJingzhouoldsitewhichisalreadygraduallyresumingoperation,harshwinterinNorthAmericaandcontinuedsupplyconstraintsglobally,aswellastheimpactofsoftercurrencies.Onaconstantcurrencybasis,theCompany’ssalesinthefirstquarterareexpectedtobeabovethoseoflastyear,drivenbypriceincreases.
StrongcontributionofLatinAmerica,India,MiddleEastandAfrica,aswellasChinaandnewjoinersBonideProducts,Inc.andJiangsuAnponElectrochemicalCo.,Ltd.,offsetweather-andsupply-relateddelaysinNorthAmerica,EuropeandAsia-Pacific.
Inaddition,theCompanydeliveredmarkedpriceincreasesacrossallregions.
TheJingzhouoldsiteisgraduallyresumingoperation,followingitsconnectionviapipelinetothestate-of-the-artwastewatertreatmentfacilityinstalledatthenewandalreadyoperationalsite.As
aconsequenceofthedisruption,theCompanylackedsufficientproducttofulfilldemand,andincurredapproximatelyRMB70millionofadditionalidlenesscost.
Adjustednetincomeforthequarter,aswellasotherprofitmetrics,areexpectedtobeinlinewithQ12018’srobustlevels,whichlaidthefoundationforaverystrongyear.
ThesignificantlyhigherreportednetincomeinQ12018isduetotherecognitionofanapproximatelyRMB1,573millionone-timenetincomefromthedivestitureofseveralproductsinEuropeinconnectionwiththeapprovalbytheEUCommissionoftheacquisitionofSyngentabyChemChinalastyear,andotherrelatedimpacts.Theproceedsofthisdivestiture,netoftaxesandtransactionexpenses,werepaidtoSyngentainreturnforthetransferofaportfolioofproductsinEuropeofsimilarnatureandeconomicvalue.Excludingtheimpactoftheproducts’divestitureandtransferonthenetincomeofQ12018(capitalgainnetoftaxes)andQ12019(amortizationofwritten-upassets),resultsinnetincomeinQ12018whichislowerbyRMB1,573millionandQ12019whichishigherbyRMB54million.
Excludingtheimpactoftheproducts’divestitureandtransfer,aswellastheimpactofcertainone-time/non-cashitems,includingmainlythelegacyamortizationofthe2011PPAfortheacquisitionofAdamaAgriculturalSolutionsLtd.byChemChina,andreflectingthelong-termincentiveplanonanequity-settledbasis,theadjustednetincomeisexpectedtobebetweenRMB509million–RMB563million,comparedtolastyear'sadjustednetincomeof533million.IV.OtherRemarks
TheestimatedresultsaboveareonlypreliminarycalculationsperformedbythefinanceteamoftheCompanybasedonpreliminaryfinancialdataavailabletotheCompanyandhavenotbeenauditedorreviewedbytheCompany'sindependentauditors.Theseestimationsmaychange,interalia,asaresultoftheprocessingandanalysisofthefinancialdatathattheCompanywillperformforthepreparationofitsQ12019financialstatements.PleaserefertotheQ12019ReporttobedulydisclosedbytheCompanyonApril29,2019forspecificandaccuratefinancialinformation.
MediaforInformationDisclosureoftheCompany:ChinaSecuritiesJournal,SecuritiesTimes,TaKungPao,andCninfo(www.cninfo.com.cn).Investorsareremindedtoexercisecautionwhenmakinginvestmentdecisions.
ByorderoftheBoard
ADAMALtd.
April15th,2019
