ADAMA(SZ:200553)2023-10-30 16:00Financial Performance - The company's revenue for Q3 2023 was CNY 7,406,903, a decrease of 20.20% compared to the same period last year[7]. - The net profit attributable to shareholders for Q3 2023 was a loss of CNY 800,317, representing a decline of 2,320.27% year-over-year[7]. - The company experienced a 12.17% decrease in revenue for the first nine months of 2023 compared to the same period last year, totaling CNY 24,660,104[13]. - The company's Q3 2023 revenue was 1,032.6 million USD, a decrease of approximately 24% year-over-year, with a 12% drop in volume and a 13% decline in pricing[16]. - For the first nine months of 2023, revenue totaled 3,524 million USD, down about 17% year-over-year, with a 10% decrease in volume and a 5% decline in pricing[16]. - The company's total revenue for Q3 2023 was 24,660,104 thousand, a decrease of 12.5% compared to 28,077,814 thousand in Q3 2022[38]. - Operating profit for Q3 2023 was a loss of 1,133,933 thousand, compared to a profit of 886,135 thousand in Q3 2022[38]. - Net profit for Q3 2023 was a loss of 1,042,473 thousand, while the net profit for Q3 2022 was 768,144 thousand[38]. Cash Flow and Financial Position - The net cash flow from operating activities for Q3 2023 increased by 377.54% to CNY 590,706[7]. - Cash flow from operating activities generated a net cash inflow of 525,830 thousand in Q3 2023, compared to a net outflow of 1,558,700 thousand in Q3 2022[40]. - The company reported a total cash and cash equivalents balance of 5,280,788 thousand at the end of Q3 2023, an increase from 3,642,837 thousand at the end of Q3 2022[41]. - As of the end of the reporting period, cash and cash equivalents increased by 23.39% to RMB 5,294,442 thousand, driven by increased financing and reduced procurement[30]. - The company achieved a cash flow from financing activities net inflow of 2,036,155 thousand in Q3 2023, compared to 1,107,305 thousand in Q3 2022[41]. Assets and Liabilities - The total assets at the end of Q3 2023 were CNY 58,239,864, reflecting a slight increase of 0.45% from the end of the previous year[7]. - The total liabilities of the company as of September 30, 2023, were 35,597,629 thousand, compared to 34,855,834 thousand as of December 31, 2022[36]. - The company's total assets increased to 58,239,864 thousand as of September 30, 2023, from 57,980,489 thousand as of December 31, 2022[36]. - Short-term borrowings surged by 94.83% to RMB 6,513,139 thousand, primarily due to operational needs[30]. - Other non-current liabilities increased by 90.24% to RMB 2,389,178 thousand, mainly due to borrowings from related parties[30]. Research and Development - Research and development expenses for the first nine months of 2023 were CNY 372,361, down 10.46% from the previous year[13]. - The company's R&D investment in Q3 2023 was 109.98 million RMB (15.34 million USD), down 22.06% year-over-year[18]. - Research and development expenses for Q3 2023 were 372,361 thousand, down from 415,855 thousand in Q3 2022, reflecting a decrease of 10.4%[38]. Market Performance - The company reported a significant decline in sales in Brazil, the largest agricultural market, with a notable decrease in market size when calculated in USD[11]. - Sales in the North American market decreased by 23.9% year-over-year in Q3 2023, reflecting high inventory levels and inflationary pressures[17]. - In the Latin American market, sales dropped by 36.1% year-over-year in Q3 2023, primarily due to a shrinking market and pricing pressures[17]. - The Asia-Pacific region, including China, experienced a sales decline of 17.0% year-over-year in Q3 2023, impacted by oversupply and pricing pressures[20]. Financial Expenses - The company reported a total financial expense net of CNY 1,755,467 for the first nine months of 2023, an increase of 17.27% year-over-year[13]. - The company incurred financial expenses of 686,670 thousand in Q3 2023, significantly higher than 132,048 thousand in Q3 2022[38]. - The net financial expenses increased year-on-year primarily due to higher interest payments on bank loans and increased short-term borrowings, offset by lower bond interest and a decrease in CPI[25]. Impairment and Tax - For the first nine months of 2023, the company recognized credit and asset impairment losses totaling RMB 275 million (approximately USD 39 million), mainly due to inventory impairment from declining market prices and accounts receivable credit losses[26]. - The company reported a tax benefit for the first nine months due to pre-tax losses, with the third quarter reflecting tax expenses primarily from subsidiaries with lower tax rates and the impact of a weak Brazilian real on non-cash tax asset values[27]. Corporate Governance - The company had a total of 41,822 common shareholders at the end of the reporting period, with the largest shareholder, Syngenta Group, holding 78.47% of shares[32]. - The top ten shareholders collectively hold significant stakes, with the largest being Syngenta Group at 1,828,137,961 shares[33]. Other Information - The company anticipates that the current geopolitical situation in Israel will not significantly impact its supply capabilities or consolidated financial performance[12]. - The company implemented multiple cost management measures, resulting in a decrease in operating expenses in Q3 2023 compared to the previous year[22]. - The third quarter report of ADM Company for 2023 has not been audited[43]. - The company has implemented new accounting standards starting from 2023[43].