安道麦B:关于计提资产减值准备的公告(英文版)

Stock Code: 000553(200553) Stock abbreviation: ADAMA A (B) Announcement No. 2026-42
ADAMA Ltd.

Asset Impairment Announcement

The Company and all members of its Board of Directors confirm that all the
information disclosed herein is true, accurate, and complete with no false or
misleading statement or material omission.

In accordance with the Accounting Standards for Business Enterprises, ADAMA Ltd.
(hereinafter referred to as the “Company”), recorded a total of RMB 381 million ($56
million) for the first nine months of 2026 in provisions for asset and credit loss
impairments. These provisions are mainly related to one-time impairments of some fixed
assets, impairment of inventories and credit loss impairment of accounts receivables
made during the ordinary course of the Company’s business, as provided herein.

Overview and Financial Impact of Provision for the Asset Impairments

During the first nine months of 2026, the Company recorded provisions for asset and
credit loss impairments based on "Accounting Standards for Business Enterprises" and
the Company’s own applicable accounting policies.

These provisions, charged to the total profits of the Company during the first nine
months of 2026, amounted to RMB 381 million ($56 million). The assets and credit loss
impairments provided in the first half of the year were RMB 180 million ($26 million).

Further details of the impairments provided in the first nine months period are as follows:
Unit: ‘000 RMB

Item Amount

Fixed assets 227,745

Inventories 115,816

Credit losses 35,772

Construction in progress 1,716

Total Asset impairments 381,049

Basis and Explanation for Impairment of Fixed Assets

The Company assess at each balance sheet date whether there are any indications that
the fixed assets may be impaired. If there is any indication that such assets may be
impaired, recoverable amounts are estimated for such assets (recoverable amount is
the higher between the assets’ fair value less costs to sell and the present value of the
future cash flow estimated to be derived from the asset). If the recoverable amount is

below the assets’ net cost recorded in the balance sheet, a provision for impairment is
made.

The Company provided for fixed assets impairment of RMB 154 million ($23 million) in
the third quarter, reaching a total of RMB 228 million ($33 million) for the first nine
months period. The Company provided impairments to fixed assets with lower
operational efficiency due to the Company’s strategic direction to enhance operational
efficiency and focus on high-performing facilities. The impairments were made based on
the evaluation of the assets’ recoverable amount.

Basis and Explanation for Impairment of Inventories

Inventories are measured at the lower of cost and net realizable value. If the net
realizable value is below the cost of inventories, a provision for decline in value of
inventories is made. Net realizable value is the estimated selling price in the ordinary
course of business less the estimated costs of completion, the estimated costs
necessary to make the sale and relevant taxes.

Inventory impairments provided amounted to RMB 40 million ($6 million) in the third
quarter and amounted to RMB 116 million ($17 million) in the first nine months of 2026.
The reasons of the inventory impairments were mainly due to inventory management
aspects during the ordinary course of the Company’s business.

Basis and Explanation for Credit Impairment Losses

The Company recognizes an impairment provision which reflects its assessment
regarding the credit risk of accounts and other receivables on a lifetime expected credit
loss basis. The examination for expected credit losses is performed using a model
including aging analysis and historical loss experience, and is adjusted taking into
account observable factors reflecting current and expected future economic conditions.
If there is objective evidence of a recovery in the value of receivables which can be
related objectively to an event occurring after the impairment was recognized, the
previously recognized impairment loss is reversed.

The credit impairment losses recorded in the first nine months were RMB 36 million ($5
million), with RMB 8 million ($1 million) recorded in the third quarter. The credit losses
were mainly provided during the course of ordinary management of accounts receivable
based on the evaluation of the current and future financial position of customers across
different regional markets.

Basis and Explanation for Impairment of Constr

uction in Progress

The Company assess at each balance sheet date whether there are any indications that
the construction in progress may be impaired. If there is any indication that such assets
may be impaired, recoverable amounts are estimated for such assets (recoverable
amount is the higher between the assets’ fair value less costs to sell and the present
value of the future cash flow estimated to be derived from the asset). If the recoverable

amount is below the assets’ net cost recorded in the balance sheet, a provision for
impairment is made.

During the first nine months of 2026, the Company made impairments of RMB 1.7
million ($0.25 million) on construction in progress, which is immaterial to the overall
financial statements.

Explanation on the Reasonableness of Asset Impairments

The aforementioned provisions were mainly due to impairments of some fixed assets,
inventories and credit loss impairments of accounts receivables made during the
ordinary course of the Company’s business.

Based on the current status of the assets, these impairments serve to correctly present
the balance sheet of the Company, truly and fairly reflects the company's financial
situation, asset value and operating results, while meeting requirements of accounting
standards and related policies.
Other Explanations

The provisions for asset impairments were the result of the calculation of the finance
department of the Company. Investors are kindly reminded to pay attention to
investment risks.

Approval Process for the Provision of Asset Impairments

According to the Company’s internal approval procedures, the above-mentioned major
impairment of fixed assets was approved by the Company’s global senior management,
with the calculation of the recoverable amount of the assets performed by the finance
team of the related subsidiaries and review done by the global finance team.

Other impairments were identified, calculated and approved locally by respective
subsidiaries and reviewed by the relevant global teams.

It’s hereby announced.

Board of Directors
ADAMA LTD.
October 30, 2026