ADAMA LTD.
Special Report on the Deposit and Actual Usage of the Raised Funds
in the First Half of 2020
The Company and all members of the Company’s Board of Directors confirm that all information
disclosed herein is true, accurate and complete, with no false or misleading statement or material
omission.
This Special Report on the Deposit and Actual Usage of the Raised Funds in the First Half of
2020was prepared in accordance with the 'Regulatory Guidelines for Listed Companies No.2-
Regulatory Requirements for the Management and Use of Funds Raised by Listed Companies' of
China Securities Regulatory Commission (CSRC Notice [2012] No.44) and the 'Guidelines for the
Standard Operation of the Companies Listed in Shenzhen Stock Exchange' (2020 Amendment)
issued by the Shenzhen Stock Exchange. Below is an explanation regarding the deposit and actual
use of the raised funds in the first half of 2020 (the “Reporting Period”).
1. General information about the raised funds
(1) Amount and date of receiving the raised funds
After receiving the approval of China Securities Regulatory Commission for the issuance of
shares to China National Agrochemical Co., Ltd. acquire assets and raise supporting funds
(CSRC Permits [2017] No.1096), the Company issued 104,697,982 ordinary A shares in
December 2017, at the price of RMB14.90 per share, raising a total amount of RMB
1,559,999,931.80. After deducting the underwriting fees of RMB 28,079,998.78, the net amount
actually received was RMB 1,531,919,933.02. The net amount was received on 27 December
2017 and was verified by Deloitte Touche Tohmatsu Certified Public Accountant LLP which
issued a capital verification report (De Shi Bao (Yan) Zi (17) No.00540).
(2) The used amount of the raised funds in the Reporting Period
The Company did not use any of the raised funds in the Reporting Period. As at 30 June 2020, the
Company has utilized a cumulative amount of RMB 717,372,647.40 of the raised funds, and the
balance that hasn’t been used was RMB 890,331,269.54, including RMB 44,613,354.54 of net
interest income (after deduction of bank charges) .
2. Deposit and management of the raised funds
In order to standardize the management and use of the raised funds and protect the rights of
investors, the Company made a Management and Utilization Policy for the Raised Funds in
accordance with the laws and regulations and regulatory documents, such as the Management
Measures for Initial Public Offering of Shares and Listing, the Notice on Further Standardization
of the Use of Raised Funds for Listing Companies and the Listing Rules of Shenzhen Stock
Exchange etc. The management policy, which was approved at the 25th Meeting of the Seventh
Board of Directors, provides detailed regulations on the deposit, use, change of designated
projects and the management and supervision of the raised funds.
The Company signed the Trilateral Supervision Agreement on the Special Account of Raised
Funds with Sanwan sub-branch Jingzhou Branch China Construction Bank Co. Ltd. and Guotai
Junan Securities Co., Ltd. on 22 January, 2018, and the four party Supervision Agreement on the
Special Account of Raised Funds with Guotai Junan Securities Co., Ltd. , Shanghai branch of
HSBC Bank (China) Company Limited, ADAMA AGAN LTD and ADAMA MAKHTESHIM
LTD on 25 June, 2018. All the parties were in strict compliance with the agreements mentioned
above during the Reporting Period.
As at 30 June 2020, the special accounts of the raised funds are as follows:
Bank Account number Balance (RMB)
Sanwan sub-branch Jingzhou Branch China Construction 42050162610109000999 890,331,269.54
Bank Co. Ltd.
Shanghai branch of HSBC Bank(China) Company Limited 715-039582-001 -
Shanghai branch of HSBC Bank(China) Company Limited 715-039574-001 -
3. Actual use of the raised funds in the Reporting Period
During the Reporting Period, the Company did not use any of the raised funds. For detailed
information, please refer to Appendix 1 - Comparison Table for the Use of Raised Funds.
4. Changes and termination of certain designated projects for the use of raised funds for
On April 10, 2019, the Annual Shareholders Meeting approved a proposal on the change of certain
designated projects included in the Project of Share Issuance for Assets Purchase and Supporting
Finance. The Company will no longer use the raised funds on the project of the construction of
Huai’an pesticide formulation center (RMB 249.80 million) and the project of fixed-assets investment-
product A 600t/a (RMB 150.28 million). Instead, the Company will use the above amount (aggregated
amount of RMB 400.08million) to pay the consideration of the equity transfer of Jiangsu Anpon
Electrochemical Co., Ltd. The Company completed the payment process on August 28, 2019.
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