Note：TheAccountant'sReportwillbeissuedinChinese.ThisAccountant'sReportisEnglishtranslationspreparedfortheCompany'smanagementreviewpurposeonlyandcannotbeprovidedtothirdpartiesforotherpurpose.IfthereisanyconflictbetweentheChineseandEnglishversion,theChineseversionshallprevail.

                                ADAMALtd.

                                ExplanationoftheDifferencebetween

                                ActualNetProfitandCommittedNetProfitof

                                ADAMAAgriculturalSolutionsLtd.

                                Accountant'sReport

                                FortheyearendedDecember31,2018


                              Accountant'sReport

                                                DeShiBao(He)Zi(19)No.E00044
                                                                (Page1of2pages)
ToShareholdersofADAMALtd.:
WehaveattestedtheaccompanyingExplanationoftheDifferencebetweenActualNetProfitandCommittedNetProfitofADAMAAgriculturalSolutionsLtd.("Solutions")fortheYear2018(hereinafterreferredtoas"ExplanationoftheDifferencebetweenActualNetProfitandCommittedNetProfit")preparedbythemanagementofADAMA(Formername:HubeiSanondaCo.,Ltd.hereinafterreferredtoas"ADAMA").
1.Boardofdirectors’responsibilitiesfortheExplanationoftheDifferencebetweenActualNetProfitandCommittedNetProfit
TheboardofdirectorsofADAMAisresponsibleforthepreparationoftheExplanationoftheDifferencebetweenActualNetProfitandCommittedNetProfitinaccordancewithrelevantregulationsofManagementMeasuresforSignificantAssetRestructuringofListedCompanies(CSRCLingNo.127)(hereinafterreferredtoas"ManagementMeasures")revisedandpublishedbyCSRCandthePerformanceCompensationAgreement,SupplementaryAgreementofPerformanceCompensationAgreementandSupplementaryAgreement(II)ofPerformanceCompensationAgreement(hereinafterreferredtoas"CompensationAgreement")signedbetweenADAMAandChinaNationalAgrochemicalCo.,Ltd.andensuringitsauthenticity,validityandcompleteness.
2.Auditor’sresponsibilities
OurresponsibilityistoissueanattestationopinionfortheExplanationoftheDifferencebetweenActualNetProfitandCommittedNetProfitonthebasisofourspecialprocedures.WeconductedourcertainproceduresinaccordancewithChinaStandardonOtherAssuranceEngagementsNo.3101-AssuranceEngagementsOtherThanAuditsorReviewsofHistoricalFinancialInformation,whichrequiresustocomplywiththecodeofprofessionalethicsanddesignandimplementthespecialprocedurestoobtainreasonableassuranceaboutwhethertheExplanationoftheDifferencebetweenActualNetProfitandCommittedNetProfitarefreefrommaterialmisstatement.
Duringtheattestation,weperformedtheproceduresthatwedeemnecessarytoobtaintheevidenceontheamountsanddisclosuresintheExplanationoftheDifferencebetweenActualNetProfitandCommittedNetProfit.Webelievethatourproceduresprovideareasonablebasisforouropinion.


                          Accountant'sReport-(Cont'd)

                                                DeShiBao(He)Zi(19)No.E00044
                                                                (Page2of2pages)
3.AttestationOpinion
WebelievethattheExplanationoftheDifferencebetweenActualNetProfitandCommittedNetProfitisprepared,inallmaterialrespects,inaccordancewithrelevantregulationsofManagementMeasuresandCompensationAgreement,andpresents,inallmaterialrespects,thedifferencebetweenActualNetProfitandCommittedNetProfitofSolutionsbasedonthepreparationbasis.
4.Scopeofthereport
ThisreportcanbeonlyusedbyADAMAtodisclosethedifferencebetweenActualNetProfitandCommittedNetProfitofSolutionsintheannualreportof2018inaccordancewithManagementMeasuresandCompensationAgreement,andcannotbeusedforotherpurposes.

DeloitteToucheTohmatsuCPALLP        ChineseCertifiedPublicAccountant:XuYusun

    Shanghai,China

                                      ChineseCertifiedPublicAccountant:MaRenjie

                                              19          March          2019

        ExplanationoftheDifferencebetweenActualNetProfitandCommittedNetProfitof

                    ADAMAAgriculturalSolutionsLtd.fortheYear2018

  InaccordancewithrelevantregulationsofManagementMeasuresforSignificantAssetRestructuring
  ofListedCompanies(CSRCLingNo.127)revisedbyCSRCandthePerformanceCompensation
  Agreement,SupplementaryAgreementofPerformanceCompensationAgreementandSupplementary
  Agreement(II)ofPerformanceCompensationAgreement(hereinafterreferredtoas"Compensation
  Agreement")signedbetweenADAMALtd.(Formername:HubeiSanondaCo.,Ltd.,hereinafter
  referredtoas“ADAMA”)andChinaNationalAgrochemicalCo.,Ltd.(Formername:China
  NationalAgrochemicalCorporation,hereinafterreferredtoas  “ChinaAgrochemical”),
  ADAMApreparedtheExplanationoftheDifferencebetweenActualNetProfitandCommittedNet
  ProfitofADAMAAgriculturalSolutionsLtd.fortheyear2018(hereinafterreferredtoas
  "ExplanationoftheDifferencebetweenActualNetProfitandCommittedNetProfit").

  1.Generalinformationaboutsignificantassetrestructuring

    AccordingtotheresolutionsoftheFifteenthMeetingoftheSeventhBoardofDirectors,the
    SeventeenthMeetingoftheSeventhBoardofDirectors,theEighteenthMeetingoftheSeventh
    BoardofDirectors,theFirstProvisionalMeetingin2017andresolutionoftheSeventhProvisional
    MeetingoftheSeventhBoardofDirectorsin2017andafterapprovalofChinaSecurities
    RegulatoryCommissiononagreeingHubeiSanondaCo.,Ltd.toissuesharestoChinaNational
    AgrochemicalCo.,Ltd.toacquireassetsandraisesupportingfunds(CSRCPermits[2017]
    No.1096),ADAMAissued1,810,883,039sharesofA-sharewithRMB1persharetoChina
    Agrochemical,increasingtheregisteredcapitalbyRMB1,810,883,039.00,whichbecame
    RMB2,404,806,259.00afterthechange.ThedetailSAReasbelow:

    ?  ChinaAgrochemicalpaidRMB1,810,883,039.00ofnewregisteredcapitalandpaid-incapital
        (sharecapital)withits100%equityinADAMAAgriculturalSolutionsLtd.("Solutions")in
        theformofequitycontribution.TheassessedvalueofChinaAgrochemical’s100%equityin
        SolutionsisUSD2,825,733,200,equivalenttoRMB18,738,002,200(calculatedatthecentral
        parityrateofinterbankforeignexchangemarketonthebasedateofevaluationof30June2016,
        i.e.USD1=RMB6.6312).

    ?  AccordingtotheAgreementofShareIssuanceandAssetPurchasingbetweenHubeiSanonda
        andChinaAgrochemicalanditsSupplementaryAgreement,theoriginalissuancepriceofthe
        sharesisRMB10.22pershare,notlowerthan90%oftheaveragepriceofthesharesonthe20
        tradingdayspriortotheresolutiondateoftheFifteenthMeetingoftheSeventhBoardof
        DirectorsofADAMA.On18April2016,ADAMAheldtheannualgeneralmeetingof
        shareholdersfor2015,andapprovedthePre-arrangedPlanningofProfitDistributionforthe
        Yearf2015.Onthebasisofthetotalamountofthesharecapitalasat31December2015,all
        shareholdersweredistributedRMB0.25ofcashbonus(includingtax)forevery10shares.The
        executionofthisprofitdistributionplanninghasbeencompletedon17June2016.According
        toDetailedRulesfortheImplementationofthePrivateIssuanceofSharesforListed
        CompaniesofCSRCandtheresolutionoftheFifteenthMeetingoftheSeventhBoardof
        DirectorsofADAMA,ADAMAshouldadjustthepriceofthesharesissuedforthecurrent
        transactioniftherearedividendmattersduringthepricingbenchmarkdateandissuancedateof
        theshares,therefore,thepriceofthesharesissuedforthecurrenttransactionisadjustedfrom
        RMB10.22persharetoRMB10.20pershare.Accordingly,theabove-mentioned100%of
        equityinSolutionsispurchasedbyADAMAbyissuing1,810,883,039sharesofRMBA-shareto
        ChinaAgrochemical.


  1.Generalinformationaboutsignificantassetrestructuring-(cont'd)

    Asat4July2017,the100%ofequityinSolutionsoriginallyheldbyChinaAgrochemicalhas
    beentransferredtoADAMAandtherelevantregistrationprocedureofequitychangeshasbeen
    completed.Theaccumulatedregisteredcapitalandpaid-incapital(sharecapital)ofADAMAasat
    6July2017isRMB2,404,806,259.00.

    AccordingtotheresolutionsoftheFifteenthMeetingoftheSeventhBoardofDirectorsandthe
    FirstProvisionalMeetingin2017,ADAMArepurchased62,950,659sharesofequityfromthe
    shareholderADAMACELSIUSB.V.attheconsiderationofHKD7.7pershare,withatotal
    considerationofRMB411,818,175.13(calculatedatthecentralparityrateofinterbankforeign
    exchangemarketonthebasedateofevaluationof24October2017,i.e.HKD1=RMB0.8496)
    andcancelledtherepurchasedsharesaccordingly.ItappliedforreductionofRMB62,950,659.00
    inregisteredcapital,whichbecameRMB2,341,855,600.00afterthechange.

    AccordingtotheresolutionsoftheFifteenthMeetingoftheSeventhBoardofDirectors,the
    SeventeenthMeetingoftheSeventhBoardofDirectors,theEighteenthMeetingoftheSeventh
    BoardofDirectors,theFirstProvisionalMeetingin2017andresolutionoftheSeventhProvisional
    MeetingoftheSeventhBoardofDirectorsin2017andafterapprovalofChinaSecurities
    RegulatoryCommissiononagreeingADAMALtd.toissuesharestoChinaNationalAgrochemical
    Co.,Ltd.toacquireassetsandraisesupportingfunds(CSRCPermits[2017]No.1096),ADAMA
    issued104,697,982sharesofA-sharewithRMB1persharetospecificinvestorstoraise
    supportingassets.Thus,itappliedforincreaseofRMB104,697,982.00inregisteredcapital,which
    becameRMB2,446,553,582.00afterthechange.

  2.RelevantregulationsonCommittedNetProfit

    AccordingtothePerformanceCompensationAgreement,SupplementaryAgreementof
    PerformanceCompensationAgreementandSupplementaryAgreement(II)ofPerformance
    CompensationAgreement(hereinafterreferredtoas“CompensationAgreement”)signedbetween
    ADAMAandChinaAgrochemical,itisagreedthattheprofitcompensationperiodincludesthe
    yearsof2017,2018and2019.Ifthecurrenttransactionfailstobeexecutedcompletelyin2017,
    theprofitcompensationperiodofChinaAgrochemicalshallbeadjustedaccordinglyand
    supplementaryagreementshallbesignedbetweenthetwopartiesinaccordancewithrelevant
    regulationsofCSRC.ChinaAgrochemicalpromisedthatSolutions'yearlyrealizednetprofit(the
    “ActualNetProfit”)attributabletoADAMAafterdeductingnon-recurringprofitorlossshouldnot
    belowerthanthenetprofitcommittedintherelevantagreement(the“CommittedNetProfit").The
    followingimpactandadjustmentsneedtobeconsideredforthedeterminationofthedifference
    betweentheActualNetProfitandCommittedNetProfit:

    ?  WhenthemanagementofSolutionsforecastedthefuturecashflow,theimpactoftheraised
        supportingfundswasnotconsidered.Inordertoavoidthepotentialthickeningimpactthatthe
        investmentofraisedsupportingfundsinSolutionsshallhaveonitsperformance,the
        CommittedNetProfitofSolutionsduringtheprofitcompensationperiodshallbeincreased
        afterdeductingincometaxfromthesavedinterestsonborrowingsduetotheinvestmentofthe
        raisedsupportingfundsinaccordancewithrelevantagreement.Theborrowingrateisreferred
        inthecalculationoftheinterestsonborrowingsofthesameperiod.


  2.RelevantregulationsonCommittedNetProfit�C(cont’d)

    ?  AccordingtotheAssetAppraisalReportissuedbyChinaUnitedAssetsAppraisalGroupCo.,
        Ltd.on31October2016withthenumberofZhongLianPingBaoZi[2016]No.1728
        (hereinafterreferredtoas“AppraisalReport”),theassessmentfailedtoconsiderthe
        revaluationgain/lossofputoptionandinterestexpensesofdefinedbenefitobligationetc.,
        therefore,theafter-taxeffectoftherevaluationgain/lossofputoptionandinterestexpensesof
        definedbenefitobligationshallbeeliminatedfortheActualNetProfitofSolutionstokeep
        consistentwiththeAppraisalReport.

    Duringtheprofitcompensationperiod,iftheActualNetProfitofSolutionsislowerthanthe
    CommittedNetProfit,ChinaAgrochemicalshallcompensateforADAMAbasedonitssharesin
    ADAMAafterthedisclosureofannualreportafterthecompletionofthesignificantasset
    restructuringinaccordancewiththeCompensationAgreementexceptforthereasonsthatcannot
    beacquiredbefore-handandcannotbecontrolledafterwards,andtheinsufficientpartshouldbe
    compensatedincash.ChinaAgrochemicalpromisedthefollowingCommittedNetProfitfor
    Solutionsduringtheprofitcompensationperiod.

                                                                          USD:0000’
          Item              2017                2018                2019

        Solutions                14,767.50            17,332.19            22,241.68
    BoththeCommittedNetProfitandActualNetProfitarevaluatedinUSDforbetterunderstanding.

    3.DifferencebetweenActualNetProfitfortheyearof2018andAccumulatedNetProfitof
    Solutionsfromthe1January2017to31December2018andCommittedNetProfitfortheyearof
    2018andAccumulatedNetProfitofSolutionsfromthe1January2017to31December2018

                                                                          USD:0000’
                                                                  From1January

                      Solutions                        2018            2017to

                                                                  12December2018

    ActualNetProfit                                    37,748.54        61,309.50
    Adjustments(Aftertaxation):

          Non-recurringprofitorloss(Note1)              (24,289.42)        (25,024.10)
          Revaluationgain/lossofputoption                    110.61            224.73
          Interestexpensesofdefinedbenefitobligation          183.45            401.00
    ActualNetProfitafteradjustments                      13,753.18        36,911.13
    CommittedNetProfit                                  17,332.19        32,099.69
    Adjustment:Impactof                                        -                -
      raisedsupportingfunds(Note2)

    CommittedNetProfitafteradjustment                    17,332.19        32,099.69
    Difference                                          (3,579.01)          4,811.44
    CompletionrateofCommittedNetProfit                      79%            115%
    Note1:Theabovestatementofnon-recurringprofitorlossisconsistentwithrelevantregulationof
          StandardQuestions&AnswersforInformationDisclosureoftheCompaniesthatIssue
          SecuritiesPubliclyNo.1-Non-recurringprofitorloss(CSRCNotice(2008)No.43).

    Note2:Solutiondidnotwithdrawfromthespecialaccountsforraisedsupportingfundsduringthe
          currentyear.Thus,therewasnoimpactofraisedsupportingfunds.

    ThisExplanationofDifferencehasbeenapprovedinthe12thMeetingoftheEighthBoardof
    DirectorsofADAMALtd.onMarch19,2019.

  LegalRepresentative:        Chiefofaccountingwork      Chiefofaccountingorgan

                                                                        ADAMALtd.
                                                                        March19,2019