Yangnong Chemical and ADAMA executing 3-year agreement on delegated management of repeated product sales

Date:11-21-2024

On November 7, 2024, Yangnong Chemical announced a Related Transaction Concerning a Sales Management Agreement with ADAMA.

According to the announcement, in order to properly deal with the issue of competition in repeated product sales, ADAMA intends to enter into a management agreement with Yangnong Chemical, whereby ADAMA delegates Yangnong Chemical the rights and responsibilities for management of the repeated product sales by ADAMA and Yangnong Chemical; Accordingly, Yangnong also delegates ADAMA the rights and responsibilities for management of the repeated product sales by ADAMA and Yangnong Chemical.

Syngenta Group Co., Ltd, is the controlling shareholder of Yangnong Chemical Co., Ltd, whilst ChemChina is the indirect controlling shareholder of Yangnong Chemical Co., Ltd.

The delegation of management under this agreement points to the sales of repeated crop protection formulation products made of same active ingredients in the Chinese market, as mutually agreed upon between Yangnong Chemical and ADAMA. In 2023, the sales value of the products which are delegated by ADAMA to Yangnong Chemical were approximately RMB47.57 million yuan while the sales value of the products which are delegated by Yangnong Chemical to ADAMA were approximately RMB42.4 million yuan.

It is agreed that Yangnong Chemical and ADAMA will each manage sales of a part of repeated formulations with same active ingredients as produced and sold by Yangnong Chemical and ADAMA in the Chinese market. The two parties will recheck the situation of repeated product sales on a semi-annual basis; and can serve an advance notice to terminate the management agreement.