ADAMALtd.2025WorkingReportoftheBoardofDirectors
In2025,theBoardofDirectors(theBOD)ofAdamaLtd.(hereinafterreferredtoasthe“Company”)hasstrictlyabidedbythe“CompanyLaw”,“ShenzhenStockExchangeStockListingRules”,and“Self-RegulatoryGuidelinesNo.1forCompaniesListedinShenzhenStockExchange-StandardizedOperationsofMainboardListedCompanies”andotherrelevantlawsandregulations,implementedtheregulatoryprovisionsofChinaSecuritiesRegulatoryCommission(CSRC)andtheShenzhenStockExchange(SZSE),earnestlyperformedthedutiesentrustedbytheArticlesofAssociationandtheRulesofProcedureoftheBoardofDirectors,andconscientiouslyexecutedtheresolutionspassedbytheshareholders'meetinginthespiritofbeingresponsibletoallshareholdersoftheCompany.Duringthereportingperiod,alldirectorsfulfilledtheirdutiesdiligentlyandgavefullplaytotheircoreroleincorporategovernance.Theworkin2025isnowreportedasfollows.I.2025BusinessReviewThrough2025,channelinventoryreturnedtopre-pandemiclevelsinmostcountries,followingcropprotectiondemandrecovery.Pricingpressuresremainhigh,drivenbyproductionover-capacityofactiveingredients(AI).Cropcommoditypricesremainstablylow,whilefarmerprofitabilityremainstightleadingtojust-in-timepurchasingpatterns.ADAMAcontinuedtoimplementitsFightForwardtransformationplanlaunchedatthebeginningof2024,promotingitsgoaltoimproveprofitandcashperformance.TheplansharpenedADAMA’sfocusonprioritycountriesandproducts,optimizeditsglobalassetsandenhancedcostcompetitiveness,andestablishedamoreagileandstreamlinedoperatingmodel.RevenuesforthefullyearwereRMB28.9billion,adeclineofapproximately2%comparedtothefullyearof2024,followingimplementationoftheCompany’sstrategicdecisionstooptimizeitsportfolioandgeographicalpresenceandreducesellingsomebasicchemicalproducts,aswellasundertheimpactsofextremeweatherconditionsinsomekeycountries.Despitelowersales,reportedgrossprofitsforthefullyearincreasedby13%andreportedgrossmarginimprovedby3percentage
points,mainlyreflectingthepositiveimpactsoflowercostsduetoimprovedoperationalefficiencyandlowercostsofinventorysold.Reportedoperatingexpensesdeclinedcomparedto2024underthepositiveimpactsoftheFightForwardplan.Reportednetlossforthefullyearwasreducedby64%comparedto2024.Inaddition,bothoperatingandfreecashflowimprovedsignificantly,attributedtobettercollectionandcontinuedinvestmentoptimization.FordetailedanalysisabouttheCompany’sperformancein2025,pleaserefertothe2025AnnualReportandappendixtobedisclosedonMarch28,2026,onwww.cninfo.com.cn.
II.WorkoftheBoardofDirectors(I)Build-upoftheBoardofDirectorsIn2025,inlinewiththelatestregulatorypoliciesoftheChinaSecuritiesRegulatoryCommission(CSRC)andtheShenzhenStockExchange,theCompanyamendeditsArticlesofAssociationandtheappendicesthereto.UndertheamendedArticles,theboardofdirectorsshallconsistofsevendirectors,includingoneemployeedirector.TheCompanywillnolongerhaveasupervisoryboardandinstead,theauditcommitteeshallexercisethesupervisorypowersandfunctionsofasupervisoryboardasstipulatedintheCompanyLaw.PursuanttotheArticlesofAssociation,theCompanyconvenedanemployees’representativesmeeting,atwhichMr.NiuLiminwaselectedastheemployeerepresentativedirectorofthetenthBoardofDirectors.Togetherwiththethreenon?independentdirectorsandthreeindependentdirectorspreviouslyelectedbytheshareholders’generalmeeting,heformstheseventh?memberofthetenthsessionoftheboardofdirectorsoftheCompany.(II)ConventionofBoardMeetingsIn2025,theCompanyheldatotalofeightboardmeetings,atwhich43resolutionswereconsideredandapprovedandnonewasrejected.Thedetailsofthemeetingsareasfollows:
| NumberofSessions | ConveningDate | DisclosureDate | MeetingResolutions |
| The10thMeetingofthe10thSessionoftheBoardofDirectors | March12,2025 | March14,2025 | Themeetingreviewedandapproved:1.Proposalonthe2024AnnualReportanditsAbstract2.Proposalonthe2024FinancialStatements3.ProposalonthePre-Planofthe2024DividendDistribution4.ProposalontheSelf-AssessmentReportonthe2024InternalControloftheCompany5.Proposalonthe2024WorkingReportoftheBoardofDirectors6.Proposalonthe2024RiskAppraisalReportofSinochemFinanceCo.,Ltd.7.ProposalontheRemunerationofSeniorExecutives8.ProposalontheChangeofAccountingFirmandtheEngagementwithanAuditFirmfortheAuditoftheFinancialStatementsandInternalControloftheCompanyfor20259.ProposalontheReportonPerformanceEvaluationofAuditFirmin2024andthePerformanceofSupervisionDutiesbytheAuditCommittee10.ProposalontheExpectedRelatedPartyTransactionsintheOrdinaryCourseofBusinessin202511.ProposalontheSpecialOpiniononSelf-examinationoftheIndependenceofIndependentDirectors12.ProposalonFormulatingtheValuationEnhancementPlanoftheCompany13.ProposalonRevisionstotheCompany’sManagementPolicyforCurrencyRiskHedging14.ProposalontheExpectedDerivativesTransactionsforHedging15.ProposalonCallingforthe2024AnnualGeneralMeetingThe2024WorkingReportsoftheIndependentDirectorswerealsopresentedandreviewedduringthemeeting. |
| The11thMeetingofthe10thSessionoftheBoardofDirectors | April28,2025 | April29,2025 | Themeetingreviewedandapproved:1.ProposalontheQ12025Report2.ProposalonADAMA’s2024SocialResponsibilityReport3.ProposalonProvidingGuaranteesinfavoroftheCompany’sSubsidiaries4.ProposalonBankLoans5.ProposalonAdjustingtheRemunerationofthePresidentandCEO6.ProposalontheAppointmentoftheHeadoftheInternalAuditingDepartmentoftheCompany |
| The12thMeetingofthe10thSessionoftheBoardofDirectors | May27,2025 | May28,2025 | Themeetingreviewedandapproved:1.ProposalonBondsBuybackPlanoftheCompany’sOverseasWholly-ownedSubsidiary |
| The13thMeetingofthe10thSessionoftheBoardofDirectors | June12,2025 | June13,2025 | Themeetingreviewedandapproved:1.ProposalontheRemunerationRelatedMattersofSeniorExecutives |
| The14thMeetingofthe10thSessionoftheBoardofDirectors | August25,2025 | August27,2025 | Themeetingreviewedandapproved:1.Proposalonthe2025Semi-AnnualReportanditsAbstract2.Proposalonthe2025Semi-annualRiskAppraisalReportofSinochemFinanceCo.,Ltd.3.ProposalontheAdjustmenttoPresidentandCEORemunerationTerms |
| The15thMeetingofthe10thSessionoftheBoardofDirectors | October28,2025 | October30,2025 | Themeetingreviewedandapproved:1.ProposalontheQ32025Report2.ProposaltoAmendtheArticlesofAssociationoftheCompanyanditsappendices3.ProposalonRevisionstoImplementationRulesoftheSpecialCommitteesoftheBoard4.ProposalonRevisionstotheInformationDisclosureManagementRulesofADAMALtd.5.ProposalonProvidingGuaranteesbyaWholly-ownedSubsidiarytoitsSubsidiary6.ProposalonSigningofSupplemental |
AgreementIIItotheEntrustedOperationandManagementAgreementonAnhuiPetro&Chemical
7.ProposalonCallingforthe2ndInterimShareholdersMeetingin2025
| The16thMeetingofthe10thSessionoftheBoardofDirectors | December1,2025 | December2,2025 | Themeetingreviewedandapproved:1.Proposalonthe2026STIChange |
| The17thMeetingofthe10thSessionoftheBoardofDirectors | December22,2025 | December23,2025 | Themeetingreviewedandapproved:1.Proposalonthe2026WorkPlan2.ProposalontheExpectedRelatedPartyTransactionsintheOrdinaryCourseofBusinessin20263.ProposalontheExpectedDerivativesTransactionsforHedging4.ProposalonFormulatingtheInformationDisclosureSuspensionandExemptionManagementPolicy5.ProposalonFormulatingtheManagementPolicyfortheDepartureofBoardMembersandSeniorExecutives6.ProposalonRevisionstotheInsiderRegistrationManagementRules7.ProposalonRevisionstotheRelated-partyTransactionsManagementRules8.ProposalontheInternalAuditManagementRules9.ProposalonCallingforthe1stInterimShareholdersMeetingin2026 |
(III)ConventionoftheGeneralMeetingsofShareholdersIn2025,theBOD,inaccordancewiththeresolutionsandauthorizationoftheshareholders’generalmeeting,dulyimplementedtheproposalsapprovedbytheshareholders’generalmeetingandcompletedallmattersrequiredtobehandledpursuanttosuchresolutions.In2025,theBODcalledfor3generalmeetingsofshareholderstoreview12proposals.Theproceduresofthegeneralmeetingofshareholdersallcompliedwith
theprescribedrequirements,andlawyerswereengagedtoensurethatallshareholders,especiallytheminorityshareholders,haveexercisedtheirrightstoknow,participateandvoteonmajormatters.Pleaseseethedetailsbelow.
| NumberofSessions | ConveningDate | ConsiderationofProposals |
| FirstExtraordinaryGeneralMeetingofShareholdersin2025 | January3,2025 | 1.ProposalonProvidingGuaranteesbyaWhollyownedSubsidiarytoitsSubsidiaries |
| 2024AnnualGeneralMeeting | April7,2025 | 1.Proposalonthe2024AnnualReportanditsAbstract2.Proposalonthe2024FinancialStatements3.ProposalonthePre-Planofthe2024DividendDistribution4.ProposalontheSelf-AssessmentReportonthe2024InternalControloftheCompany5.Proposalonthe2024WorkingReportoftheBoardofDirectors6.ProposalontheChangeofAccountingFirmandtheEngagementwithanAuditFirmfortheAuditoftheFinancialStatementsandInternalControloftheCompanyfor20257.ProposalontheExpectedRelatedPartyTransactionsintheOrdinaryCourseofBusinessin20258.Proposalonthe2024WorkingReportoftheBoardofSupervisors9.ProposalontheExpectedDerivativesTransactionsforHedging |
| SecondExtraordinaryGeneralMeetingofShareholdersin2025 | November11,2025 | 1.ProposaltoAmendtheArticlesofAssociationoftheCompanyanditsappendices2.ProposalonProvidingGuaranteesbyaWholly-ownedSubsidiarytoitsSubsidiary |
(IV)PerformanceofDutiesbySpecialCommitteesoftheBoardofDirectorsThreespecialcommitteesaresetupundertheBOD,namelytheAuditCommittee,theRemunerationandAppraisalCommitteeandtheNominationCommittee.In2025,thespecialcommitteesoftheBODperformedtheirdutiesinstrictaccordancewiththeArticlesofAssociationandtheimplementationrulesofeachspecialcommitteebasedontheprincipleofdiligenceandresponsibility,providedadvisoryopinionsforthe
decision-makingoftheBOD,andplayedapositiveroleinthestandardizedoperationandthescientificdecision-making.In2025,theAuditCommitteeheldfivemeetingstoreviewperiodicalstatements,theappointmentofauditinstitutions,internalcontrol,internalaudit,riskassessmentofthegroupfinancecorporation,profitdistribution,hedgingandothermatters.IteffectivelysupervisedtheCompany'sfinancialstatus,strictlycontrolledrisks,andsummittedalltheproposalstotheBODafterapproval.TheRemunerationandAppraisalCommitteeheldfivemeetingstoreviewtheperformanceevaluation,theremunerationandpoliciesofcompensationandincentivesoftheseniormanagementoftheCompany,toensurethatrelevantpoliciesareinlinethetransformationstagetheCompanyisat.TheNominationCommitteedidn’tholdanymeetingsin2025astherewasnochangetoboardmembersorseniormanagement.(V)PerformanceofBoardMembers,includingIndependentDirectorsAllboardmembershavefulfilledtheirdutiesconscientiously,exercisedtheirpowersinaccordancewiththelaw,andtakenaproactiveinterestintheCompany’soperationalandmanagementinformation,financialperformanceandsignificantmatters.TheyhaveengagedinthoroughdiscussionsonallproposalssubmittedtotheBoardforconsiderationbyexpressingtheirviewsfreelyandofferingsuggestionsonoperationanddevelopment,therebyensuringsounddecision-makingandpropergovernance.InaccordancewithrelevantprovisionsoftheCompanyLaw,theMeasuresfortheAdministrationofIndependentDirectorsofListedCompaniesandtherequirementsoftheArticlesofAssociationandtheIndependentDirectorPolicy,theindependentdirectorsoftheCompanyfaithfullyanddiligentlyperformedtheirduties,activelypaidattentiontotheoperatingandfinancialstatus,attendedrelevantmeetingsontime,andcarefullyconsideredvariousproposalsoftheboardofdirectorsandspecialcommittees.In2025,theindependentdirectorsheldfivespecialmeetingstoconsiderdividenddistribution,relatedpartytransactions,hedging,theriskassessmentreportofthegroupfinancecorporation,andbondbuybackbyasubsidiary,whichweresubmittedtotheBODforconsiderationaftertheapprovalofallindependentdirectors.Independentdirectorsvisitedtheoperationsitesandattendedmanagementmeetingstounderstandthebusinessprogressandindustrytrends.Theyexchangedideaswith
auditorsontheauditworkplansandotherimportantissues,andearnestlyperformedsupervisoryduties.Theyalsoparticipatedintheannualreportperformanceroadshowtounderstandinvestors’concernsanddemandsfortheCompany.In2025,themeetingparticipationofindependentdirectorsisasfollows:
| ParticipationofindependentdirectorsinBODmeetingsandshareholders'meetingsin2025 | |||
| NameofDirector | NumberofBoardmeetingstobeattended | Actualnumberofboardmeetingsattended | Attendanceatgeneralmeetings |
| GeMing | 8 | 8 | 3 |
| YangGuangfu | 8 | 8 | 3 |
| HuangJingsheng | 8 | 8 | 3 |
Pursuanttothe“RemunerationSchemeforNon-IndependentDirectors”approvedbytheCompany’sshareholders’meeting(AnnouncementoftheResolutionsoftheFirstExtraordinaryGeneralMeetingofShareholdersfor2018,No.2020-7),anynon-independentdirectorholdingmanagementpositionswithintheCompanyand/oranyofitssubsidiariesshallreceiveremunerationcommensuratewithhisorhermanagementpositionandshallnotseparatelycollectotherremunerationforthedirectorshipoftheboard.Andtherelevantperformanceappraisalshavebeencompleted.Pursuanttothe“ProposalontheRemunerationofIndependentDirectors”approvedbytheCompany’sshareholders’meeting(AnnouncementofResolutionsoftheFirstExtraordinaryGeneralMeetingofShareholdersfor2020,No.2018-11),independentdirectorsshallreceiveallowancesfromtheCompanyandshallnotbeentitledtoanysalary.(VI)InformationDisclosureandManagementofInsiderInformationIn2025,inaccordancewiththelatestregulatorypoliciesofCSRCandSZSE,theCompanyreviseditsAdministrativeMeasuresforInformationDisclosureandtheRegistrationandManagementPolicyofInsiderInformation,andformulatedtheAdministrativeMeasuresforPostponementandExemptionofInformationDisclosure.TheCompanystrictlyfulfilsitsinformationdisclosureobligationsinaccordancewiththerelevantinformationdisclosureprovisionsofCSRCandSZSE,aswellastherequirementsoftheCompany’sAdministrativeMeasuresforInformationDisclosure,andcontinuouslyenhancesthequalityofitsinformationdisclosure.In2025,itreleasedatotalof93periodicalstatementsandinterimreports,andmostannouncementsweredisclosedinChineseandEnglishtotruly,accuratelyand
completelydisclosemajoreventsandproductionandbusinessinformation.Moreover,theCompanystrictlyandeffectivelyimplementedtheRegistrationandManagementPolicyofInsiderInformation,registeredandreportedinsiderinformationaccordingtolaw,strengthenedinsiderinformationmanagement,standardizedinformationtransmissionprocess,strengthenedemployees'awarenessofconfidentialityandcompliance,andstrictlypreventedinsidertrading.(VII)InvestorRelationsManagementTheBODoftheCompanyattachesgreatimportancetoinvestorrelationsmanagement,payscloseattentiontoinvestors’opinionsandtheCompany’smarketvalue,andstrengthenscommunicationwiththecapitalmarketthroughmultipleplatformsandchannels.In2025,theBODconsideredandapprovedtheValuationEnhancementPlan,whichisbasedonimprovingthequalityoftheCompany’sbusiness,focusesontheimplementationoftheCompany’sFightForwardtransformationplan,andaimstoenhancemarketrecognitionoftheCompany’svaluebystrengtheninginvestorcommunicationandimprovinginformationdisclosure,amongothermeasures.In2025,theCompanyproactivelyheldfourpublicperformanceonlineroadshows,throughwhichitcommunicatedtheCompany’svalueinacomprehensiveandobjectivemanner,andwasgrantedtheBestPracticeAwardfor2024AnnualResultsOnlineRoadshowofListedCompaniesbytheChinaAssociationforPublicCompaniesduringthereportingperiod.Inaddition,theCompanymaintainedclosecommunicationwithinvestorsbyparticipatinginonlinegroupreceptioneventsandbrokers’strategymeetings,andbyreceivinginvestorvisitsandresearch.III.FocusoftheBODin2026In2026,theBODwillcontinuetoberesponsibletoallshareholders,withthegoalofbuildingahigh-qualitylistedcompany,faithfullyanddiligentlyperformitsduties,activelyplayitscoreroleinbusinessoperationsandcorporategovernance,supervisethemanagementtoeffectivelycarryoutthe2026WorkPlanandconsolidatetheresultsofthe“FightForward”transformationplan,promotevaluerealizationwithinnovationasthefundamentaldrivingforce,andcomprehensivelyimprovemanagementquality.WhileleadingthemanagementtocontinuouslyenhancethequalityoftheCompany’soperations,theBODwillplaceaparticularemphasison
shareholderreturns,continuouslyimprovingthestandardofinformationdisclosureandstrengtheninginvestorrelationsmanagement,soastopromoteareasonablereflectionoftheCompany’sinvestmentvalueinlightofitsfundamentals.Inaddition,theBODwillfurtherrefinevariouscorporategovernancesystemsinaccordancewiththelatestregulatoryandoperationalrequirements,enhancethelevelofinternalcontrolandmanagement,andensurethattheCompanyremainsincompliantoperation.
BoardofDirectorsofADAMALtd.
March26,2026