ADAMA(SZ:000553)2022-12-04 09:44Group 1: Company Performance and Production - The company resumed normal production at the Jingzhou base in Q2 2020 after a temporary halt due to the pandemic, with the new plant expected to be operational by early 2021 [1] - The company anticipates that the new plant in Jiangsu will be completed within two years, although there may be slight supply impacts during the transition [1] - The company expects that the economic benefits from the new plant will not be significant until new active ingredients are introduced, with a focus on maintaining production levels from existing products [3] Group 2: Market Performance - Sales in Latin America saw a 30% year-on-year increase in local currency, driven by strong performance in Brazil, Argentina, and other countries [3] - The company believes the growth trend in Latin America is sustainable, supported by both increased sales volume and higher prices [3] - The gross margin remained stable at around 30%, with a net margin of approximately 5% [3] Group 3: Financial Management - The company actively controls operating expenses, which has helped reduce the difference between gross profit and EBITDA [3] - Financial expenses are influenced by debt levels and external factors such as interest rates, with significant fluctuations possible [3] - The company maintains a long-term tax rate around 20%, but currency fluctuations can impact tax expenses significantly [3] Group 4: Strategic Acquisitions and Currency Hedging - The acquisition of Huifeng's agricultural assets is progressing, contingent on Huifeng meeting certain operational conditions [4] - The company employs a 100% hedging strategy for currency exposure related to monetary assets and liabilities, using various financial instruments [5] - The company also conducts hedging for anticipated sales, particularly in regions with strong currencies, although the costs can be high [5]