the shareholders of the Company -1 32 -4 225
% of revenue 0.0% 1.1% 0.0% 1.1%
Adjusted EBITDA 464 461 3,004 3,224
% of revenue 13.4% 15.4% 13.4% 15.4%
Adjusted EPS[4] -- Basic 0.0366 0.0511 0.2367 0.3583
--
Diluted 0.0366 0.0511 0.2367 0.3583
Reported EPS(4) -- Basic -0.0003 0.0131 -0.0017 0.0946
--
Diluted -0.0003 0.0131 -0.0017 0.0946
Abridged Consolidated Balance Sheet
Sept 30 Sept 30 Sept 30 Sept 30
2021 2020 2021 2020
USD (m) USD (m) RMB (m) RMB (m)
Assets
Current assets:
Cash at bank and on hand 764 842 4,956 5,733
Bills and accounts receivable 1,553 1,420 10,071 9,668
Inventories 1,749 1,631 11,345 11,110
Other current assets, receivables
and prepaid expenses 266 323 1,723 2,200
Total current assets 4,332 4,216 28,095 28,712
Non-current assets:
Fixed assets, net 1,504 1,152 9,755 7,844
Rights of use assets 73 74 472 504
Intangible assets, net 1,498 1,441 9,713 9,815
Deferred tax assets 129 130 839 883
Other non-current assets 99 78 640 535
Total non-current assets 3,303 2,875 21,419 19,581
Total assets 7,635 7,091 49,514 48,293
Liabilities
Current liabilities:
Loans and credit from banks and
other lenders 446 487 2,893 3,314
Bills and accounts payable 822 739 5,331 5,032
Other current liabilities 809 782 5,247 5,326
Total current liabilities 2,077 2,008 13,471 13,672
Long-term liabilities:
Loans and credit from banks and
other lenders 556 319 3,609 2,169
Debentures 1,259 1,234 8,167 8,402
Deferred tax liabilities 52 57 335 387
Employee benefits 116 102 751 693
Other long-term liabilities 312 147 2,027 1,004
Total long-term liabilities 2,295 1,859 14,889 12,657
Total liabilities 4,373 3,866 28,359 26,329
Equity
Total equity 3,262 3,225 21,154 21,964
Total liabilities and equity 7,635 7,091 49,514 48,293
Abridged Consolidated Cash Flow Statement for the Third Quarter
Q3 2021 Q3 2020 Q3 2021 Q3 2020
USD (m) USD (m) RMB (m) RMB (m)
Cash flow from operating activities:
Cash flow from operating activities 107 23 691 157
Cash flow from operating activities 107 23 691 157
Investing activities:
Acquisitions of fixed and intangible
assets -96 -72 -624 -498
Proceeds from disposal of fixed and
intangible assets - - - -3
Acquisition of subsidiaries - -14 - -96
Other investing activities - 2 5 18
Cash flow used for investing
activities -96 -84 -619 -579
Financing activities:
Receipt of loans from banks and
other lenders 92 149 593 1,030
Repayment of loans from banks and
other lenders -50 -134 -326 -926
Interest payment and other -10 -7 -65 -50
Dividends to shareholders -6 -1 -37 -5
Other financing activities 11 -0 73 -0
Cash flow from (used for) financing
activities 37 7 237 49
Effects of exchange rate movement on
cash and cash equivalents - 6 17 -189
Net change in cash and cash
equivalents 47 -48 325 -562
Cash and cash equivalents at the
beginning of the period 714 884 4,615 6,256
Cash and cash equivalents at the end
of the period 762 836 4,940 5,694
Free Cash Flow 1 -68 6 -471
Abridged Consolidated Cash Flow Statement for the First Nine Months
9M 2021 9M 2020 9M 2021 9M 2020
USD (m) USD (m) RMB (m) RMB (m)
Cash flow from operating activities:
Cash flow from operating activities 338 196 2,182 1,392
Cash flow from operating activities 338 196 2,182 1,392
Investing activities:
Acquisitions of fixed and intangible
assets -279 -186 -1,803 -1,301
Proceeds from disposal of fixed and
intangible assets 3 3 20 18
Acquisition of subsidiaries -101 -14 -655 -96
Other investing activities -11 -3 -73 -15
Cash flow used for investing
activities -388 -200 -2,511 -1,394
Financing activities:
Receipt of loans from banks and
other lenders 675 550 4,370 3,852
Repayment of loans from banks and
other lenders -411 -240 -2,655 -1,672
Interest payment and other -70 -57 -453 -400
Dividends to shareholders -6 -2 -37 -11
Other financing activities 34 -34 222 -245
Cash flow from (used for) financing
activities 223 217 1,446 1,524
Effects of exchange rate movement on
cash and cash equivalents 1 4 -11 -148
Net change in cash and cash
equivalents 174 217 1,105 1,374
Cash and cash equivalents at the
beginning of the period 588 619 3,835 4,320
Cash and cash equivalents at the end
of the period 762 836 4,940 5,694
Free Cash Flow -115 -56 -745 -376
Notes to Abridged Consolidated Financial Statements
Note 1: Basis of preparation
Basis of presentation and accounting policies: The abridged consolidated financial statements for the quarters ended September 30, 2021 and 2020 incorporate the financial statements of ADAMA Ltd. and of all of its subsidiaries (the "Company"), including Adama Agricultural Solutions Ltd. ("Solutions") and its subsidiaries.
The Company has adopted the Accounting Standards for Business Enterprises (ASBE) issued by the Ministry of Finance (the "MoF") and the implementation guidance, interpretations and other relevant provisions issued or revised subsequently by the MoF (collectively referred to as "ASBE").
The abridged consolidated financial statements contained in this release are presented in both Chinese Renminbi (RMB), as the Company's shares are traded on the Shenzhen Stock Exchange, as well as in United States dollars ($) as this is the major currency in which the Company's business is conducted. For the purposes of this release, a customary convenience translation has been used for the translation from RMB to US dollars, with Income Statement and Cash Flow items being translated using the quarterly average exchange rate, and Balance Sheet items being translated using the exchange rate at the end of the period.
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimated.
Note 2: Abridged Financial Statements
For ease of use, the financial statements shown in this release have been abridged as follows:
Abridged Consolidated Income Statement:
-- "Gross profit" in this release is revenue less costs of goods sold, taxes
and surcharges, inventory impairment and other idleness charges (in
addition to those already included in costs of goods sold); part of the
idleness charges is removed in the Adjusted financial statements
-- "Other operating expenses" includes impairment losses (not including
inventory impairment); gain (loss) from disposal of assets and
non-operating income and expenses
-- "Operating expenses" in this release differ from those in the formally
reported financial statements in that in this release certain idleness
charges have been reclassified to impact gross profit, in line with the
approach taken by the Company with respect to idleness charges generally
-- "Financial expenses and investment income" includes net financing
expenses; gains from changes in fair value; and investment income
(including share of income of equity accounted investees)