Stock Code: 000553(200553) Stock Abbreviation: ADAMA A (B) NO. 2025-9
ADAMA Ltd.
Announcement on the Proposed Change of Accounting Firm
The Company and all members of its board of directors hereby confirm that all
information disclosed herein is true, accurate and complete with no false or
misleading statement or material omission.
Special Reminder:
1. Name of the proposed accounting firm to be engaged: KPMG Huazhen Certified
Public Accountants LLP (hereinafter referred to as "KPMG Huazhen");
2. Name of the former accounting firm: Deloitte Touche Tohmatsu Certified Public
Accountants LLP (hereinafter referred to as "Deloitte Huayong");
3. Reason for the proposed change of accounting firm: Deloitte Huayong has been
providing audit services to the Company for 8 consecutive years. According to the
relevant provisions of the " Measures for Selecting Accounting Firms for State owned
Enterprises and Listed Companies" (Caikuai [2023] No. 4), taking into account the
actual situation of the Company and the demand for future audit services, it is proposed
to engage KPMG Huazhen as the audit firm for the Company in 2025;
4. This change of accounting firm complies with the provisions of the "Measures for
the Selection and Appointment of Accounting Firms by State owned Enterprises and
Listed Companies" (Caikuai [2023] No. 4) issued by the Ministry of Finance, the State
owned Assets Supervision and Administration Commission of the State Council, and
the China Securities Regulatory Commission;
On March 12, 2025, Adama Ltd. (hereinafter referred to as the "Company" or "the
Company") held the 10th meeting of the 10th Board of Directors and approved the
"Proposal on Change of Accounting Firm and Appointment of the Audit Firm for the
Audit of Financial Statements and Internal Control for the Year 2025". The Company
intends to appoint KPMG Huazhen as the audit firm for the year 2025. This proposal
still needs to be submitted for review and approval at the Company's 2024 annual
general meeting of shareholders. The specific details are hereby announced as follows:
I. Basic information of the proposed accounting firm to be engaged
1. Basic information
KPMG Huazhen was established on 18 August 1992 in Beijing. On 5 July 2012, it was
approved by the Ministry of Finance and other authorities to convert its business
property into a limited liability partnership. The business license was obtained on 10
July 2012 and the partnership business officially stated on 1 August 2012.
The headquarter office of KPMG Huazhen is located in Beijing, with registered address
at 8th floor, East Building 2, Oriental Plaza, No.1 East Chang'an Avenue, Dongcheng
District, Beijing.
The chief partner of KPMG Huazhen is Mr. Zou Jun, who is of Chinese nationalityand
holds the qualification of a Chinese Certified Public Accountant.
As of the end of 2024, KPMG Huazhen had 241 partners, and 1,309 CPAs among
whom more than 300 CPAs have signed audit report for securities services business.
The total audited revenue of KPMG Huazhen in 2023 exceeded RMB 4.1 billion, of
which revenue from the audit business exceeded RMB 3.9 billion (including revenue
from domestic statutory securities service exceeding RMB 900 million, revenue from
other securities services of approximately RMB 1 billion, with the total revenue from
securities service exceeding RMB 1.9 billion).
KPMG Huazhen provides audit services on the 2023 annual reports for 98 listed
companies, with a total audit service fee of RMB 538 million. The main industries of
the listed companies that KPMG Huazhen served are manufacturing, finance,
telecommunication, software and information technology, electricity, heat, gas and
water production and supply, transportation, warehousing, storage and postal,
wholesale and retail, mining, real estate, scientific research and technology services,
agriculture, forestry, animal husbandry, fisheries, leasing and business services, water
conservancy, environmental and public facility management, as well as
accommodation and catering. Among the listed companies KPMG Huazhen served for
the 2023 annual audit, there are 53 listed companies in the same industry as the
Company.
2. Investor Protection
The cumulative compensation limit of occupational insurance purchased by KPMG
Huazhen exceeds RMB 200 million, which is in compliance with relevant regulations.
In the past three years, KPMG Huazhen has undertaken civil liabilities in civil
litigations related to its professional behavior including in 2023, a bond related civil
litigation case was concluded, and the final judgment was that KPMG Huazhen bore
compensation liabilities at a rate of 2% -3% (approximately RMB 2.7 million), and the
case has been fully settled.
3. Integrity Record
As presented to the Company by the auditor, neither KPMG Huazhen nor any of its
employees, has been subject to any criminal penalty for their professional conduct, as
well as self-regulatory measur
