Agroton Public Limited

Interim / Quarterly Report • Aug 28, 2020

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

For the six monts ended 30 June 2020

C O N T E N T S

Officers and Professional Advisors	1
Declaration of the Members of the Board of Directors and the Company official responsible for the preparation of the condensed consolidated interim financial statements	2
Condensed consolidated statement of profit or loss and other comprehensive income	3
Condensed consolidated statement of financial position	4
Condensed consolidated statement of changes in equity	6
Condensed consolidated statement of cash flows	7
Notes to the condensed consolidated interim financial statements	8 - 28

1

AGROTON PUBLIC LIMITED

OFFICERS AND PROFESSIONAL ADVISORS

Board of Directors	Iurii Zhuravlov - Chief Executive Officer
	Tamara Lapta - Deputy Chief Executive Officer
	Larysa Orlova - Chief Financial Officer
	Borys Supikhanov - Non-Executive Director
	Volodymyr Kudryavtsev - Non-Executive Director
Audit Committee	Borys Supikhanov (Head of the Committee)
	Volodymyr Kudryavtsev
Remuneration Committee	Borys Supikhanov (Head of the Committee)
	Volodymyr Kudryavtsev
Secretary	Inter Jura Cy (Services) Limited
Legal Advisors	K. Chrysostomides & Co LLC
Registered office	1 Lampousas Street 1095 Nicosia Cyprus

DECLARATION OF THE MEMBERS OF THE BOARD OF DIRECTORS AND THE COMPANY OFFICIAL RESPONSIBLE FOR THE PREPARATION OF THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

In accordance with article 9(3)(c) and (7) of the Transparency Requirements (Securities Listed for Trading on a Regulated Market) Law of 2007 (the "Law"), as amended from time to time, we, the Members of the Board of Directors and the Company official responsible for the preparation of the condensed consolidated interim financial statements of Agroton Public Limited (the "Company") for the six months ended 30 June 2020, confirm that to the best of our knowledge:

the condensed consolidated interim financial statements presented on pages 3 to 29:

• i) have been prepared in accordance with the International Accounting Standard (IAS) 34 "Interim Financial Reporting" and the provisions of article (9), section (4) of the Law, and
• ii) give a true and fair view of the assets and liabilities, the financial position and the profits or losses of Agroton Public Limited and of the entities included in the condensed consolidated interim financial statements, as a whole.

Members of the Board of Directors:

Iurii Zhuravlov	signed
Tamara Lapta	signed
Larysa Orlova	signed
Borys Supikhanov	signed
Volodymyr Kudryavtsev	signed

Company official responsible for the preparation of the condensed consolidated interim financial statements of the Company for the six months ended 30 June 2020:

Larysa Orlova	signed

Nicosia, 27 August 2020

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 30 June 2020

(in USD thousand, unless otherwise stated)

	Note	30 June 2020	30 June 2019
Continuing operations
Revenue	4	13 849	17 849
Cost of sales	5	(12 576)	(19 653)
Net change in fair value less cost to sell of biological assets and
agricultural produce		7 072	5 697
Gross profit		8 345	3 893
Other operating income	6	91	78
Administrative expenses	7	(1 226)	(2 334)
Distribution expenses	8	(22)	(451)
Other operating expenses	9	(1 327)	(988)
Operating profit		5 861	198
Impairment losses on loans, trade and other receivable		(6)	(86)
Fair value losses on financial assets at fair value through profit or loss		590	-
		6 445	112
Finance income	10	87	4 594
Finance costs	10	(10 103)	(1 429)
Net finance (costs)/income		(10 016)	3 165
Profit before taxation		(3 571)	3 277
Taxation		(23)	-
Profit for the period		(3 594)	3 277
Other comprehensive income
Items that are or may be reclassified subsequently to profit or loss
Effect of translation into presentation currency		2 817	(368)
Total comprehensive income/(expense)		(777)	2 909
Profit attributable to:
Owners of the Company Non-controlling interests		(3 602) 8	3 279 (2)
		(3 594)	3 277
Total comprehensive income attributable to:
Owners of the Company		(768)	2 904
Non-controlling interests		(9)	5
		(777)	2 909
Profit per share
Basic and fully diluted profit per share (USD)		(0,04)	0,13
Profit per share – continuing operations
Basic and fully diluted profit per share (USD)		(0,04)	0,13

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2020

(in USD thousand, unless otherwise stated)

	Note	30 June 2020	31 December 2019
Assets
Property, plant and equipment	11	18 368	20 884
Right-of-use assets	12	14 373	18 819
Intangible assets		33	38
Biological assets	13	1 019	1 141
Total non-current assets		33 793	40 882
Inventories	16	4 876	20 180
Biological assets	13	33 413	9 107
Investments designated at fair value through profit or loss	14	9 339	9 264
Trade and other receivables	17	1 889	4 508
Loans receivable	15	18 549	18 549
Assets held for sale		18	20
Cash and cash equivalents	18	10 241	11 938
Total current assets		78 325	73 566
Total assets		112 118	114 448
Equity
Share capital		661	661
Share premium		88 532	88 532
Retained earnings		(11 855)	(8 253)
Foreign currency translation reserve		8 429	5 595
Total equity attributable to owners of the Company		85 767	86 535
Non-controlling interests		265	274
Total equity		86 032	86 809
Liabilities
Lease liabilities	20	14 365	15 389
Total non-current liabilities		14 365	15 389
Lease liabilities		4 582	4 895
Loans and borrowings	20	127	127
Trade and other payables	21	6 516	6 754
Income tax liability		486	463
Liabilities held for sale		10	11
Total current liabilities		11 721	12 250
Total liabilities		26 086	27 639
Total equity and liabilities		112 118	114 448

On 27 August 2020 the Board of Directors of Agroton Public Limited approved and authorised these condensed consolidated interim financial statements for issue.

signed signed

Tamara Lapta Larysa Orlova Deputy Chief Executive Officer Chief Financial Officer

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2020

(in USD thousand, unless otherwise stated)

	Attributable to owners of the Company
	Share capital	Share premium	Retained earnings	Foreign currency translation reserve	Total	Non controlling interests	Total equity
Balance at 1 January 2019 Adjustments on initial application of IFRS 16 Adjusted balance at 1 January 2019	661 - 661	88 532 - 88 532	(9 783) (3 653) (13 436)	8 418 - 8 418	87 828 (3 653) 84 175	250 - 250	88 078 (3 653) 84 425
Total comprehensive income Profit for the period Other comprehensive income/(expense)	- -	- -	3 279 -	- (375)	3 279 (375)	(2) 7	3 277 (368)
Total comprehensive income for the period	-	-	3 279	(375)	2 904	5	2 909
Balance at 30 June 2019	661	88 532	(10 157)	8 043	87 079	255	87 334
Balance at 1 January 2020	661	88 532	(8 253)	5 595	86 535	274	86 809
Total comprehensive income
Profit for the period Total comprehensive income for the period	- -	- -	(3 602) -	- 2 834	(3 602) 2 834	8 (17)	(3 594) 2 817
Total comprehensive income for the period	-	-	(3 602)	2 834	(768)	(9)	(777)
Balance at 30 June 2020	661	88 532	(11 855)	8 429	85 767	265	86 032

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (cont.)

For the six months ended 30 June 2020

(in USD thousand, unless otherwise stated)

• In accordance with the Cyprus Companies Law, Cap. 113, Section 55 (2) the share premium reserve can only be used by the Company in (a) paying up unissued shares of the Company to be issued to members of the Company as fully paid bonus shares; (b) writing off the expenses of, or the commission paid or discount allowed on, any issue of shares or debentures of the Company; and (c) providing for the premium payable on redemption of any redeemable preference shares or of any debentures of the Company.
• Companies which do not distribute 70% of their profits after tax, as defined by the Special Contribution for the Defence of the Republic Law, during the two years after the end of the year of assessment to which the profits refer, will be deemed to have distributed this amount as dividend. Special contribution for defence at 17% will be payable on such deemed dividend to the extent that the owners (individuals and companies) at the end of the period of two years from the end of the year of assessment to which the profits refer are Cyprus tax residents. The amount of this deemed dividend distribution is reduced by any actual dividend paid out of the profits of the relevant year at any time. This special contribution for defence is paid by the Company for the account of the owners.

The above requirement of the Law is not applied in the case of the Company due to the fact that its owners are not residents in Cyprus for tax purposes.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the six months ended 30 June 2020

(in USD thousand, unless otherwise stated)

	Note	30 June 2020	30 June 2019
Cash flows from operating activities:
Profit/(Loss) for the period		(3 594)	3 277
Adjustments for:
Depreciation		1 209	2 443
Fair value gain on financial assets at fair value through profit
or loss		(590)	-
Impairment of inventories	9	1 288	944
(Gain)/Loss from changes in fair value less cost to sell of
biological assets and agriculture produce		(7 072)	(5 697)
Net impairment of trade and other receivables	9	6	86
Interest income	10	(87)	(1 031)
Income from reversal of impairment of PPE	10	-	(20)
Interest expense	10	1 733	1 429
Loss on disposal of property, plant and equipment	9	-	12
Loss/(income) on disposal of current assets		8	5
Foreign exchange gain	10	8 370	(3 563)
Income tax expense		23	-
Cash flow from operations before working capital changes		1 294	(2 115)
Decrease in inventories		14 674	14 818
Increase in biological assets		(16 600)	(12 847)
Decrease in trade and other receivables		2 194	2 508
Increase in trade and other payables		555	3 707
Income tax paid		-	-
Net cash from operating activities		2 117	6 071
Cash flow from investing activities
Acquisition of property, plant and equipment		(1 041)	(2 222)
Acquisition of financial instruments at FVTPL		-	(8 895)
Proceeds from sale of financial instruments at FVTPL		500	-
Net cash used in investing activities		(541)	(11 117)
Repayment of loans and borrowings		-	(7 730)
Interest on Notes paid		-	(47)
Repayment of principal portion of lease liabilities		-	-
Repayment of interest portion of lease liabilities		(449)	(1 031)
Net cash used in financing activities		(449)	(8 808)
Net decrease in cash and cash equivalents		1 127	(13 854)
Cash and cash equivalents at the beginning of the period		11 938	24 881
Effect from translation into presentation currency		(2 824)	(2 829)
Cash and cash equivalents at the end of the period	18	10 241	8 198

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2020

(in USD thousand, unless otherwise stated)

1. GENERAL INFORMATION

Country of incorporation

Agroton Public Limited (the "Company") was incorporated in Cyprus on 21 September 2009 as a public company with limited liability under the Cyprus Companies Law, Cap. 113. The Company was listed at the main market of Warsaw Stock Exchange on 8 November 2010.

The Company's registered office is at 1 Lampousas Street, 1095 Nicosia, Cyprus.

Principal activities

The principal activities of the Group are grain and oil crops growing, agricultural products storage and sale, cattle breeding (milk cattle-breeding, poultry farming) and milk processing. The poultry farming business has been temporarily abandoned due to the military clashes and armed conflict in Eastern Ukraine.

The Group's subsidiaries, country of incorporation, and effective ownership percentages are disclosed below:

Company name	Country of incorporation	Ownership Interest 30.06.2019	Ownership Interest 31.12.2018
Living LLC	Ukraine	99,99 %	99,99 %
PE Agricultural Production Firm Agro	Ukraine	99,99 %	99,99 %
Agroton PJSC	Ukraine	99,99 %	99,99 %
LLC Belokurakinskiy Elevator	Ukraine	99,99 %	99,99 %
Agro Meta LLC (i)	Ukraine	99,99 %	99,99 %
Rosinka-Star LLC	Ukraine	99,99 %	99,99 %
Etalon-Agro LLC (i)	Ukraine	99,99 %	99,99 %
ALLC Noviy Shlyah	Ukraine	99,99 %	99,99 %
ALLC Shiykivske	Ukraine	94,59 %	94,59 %
Agro-Chornukhinski Kurchata LLC	Ukraine	99,89 %	99,89 %
Agro-Svinprom LLC (ii)	Ukraine	99,89 %	99,89 %
Agroton BVI Limited	British Virgin Islands	100,00 %	100,00 %
Gefest LLC (i)	Ukraine	100,00 %	100,00 %
LLC Lugastan	Ukraine	99,99 %	99,99 %
LLC Siverskiy Elevator	Ukraine	100,00 %	100,00 %

(i) Agro Meta LLC, Etalon-Agro LLC, and Gefest LLC are in the process of liquidation.

(ii) In July 2011 the management of Living LLC resolved to dispose subsidiary of the Group namely Agro-Svinprom LLC engaged in the pig-breeding.

The parent company of the Group is Agroton Public Limited with an issued share capital of 21 670 000 ordinary shares with nominal value € 0,021 per share.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2020

(in USD thousand, unless otherwise stated)

1. GENERAL INFORMATION (cont.)

The shares at 30 June 2020 and as at the date of issue of these condensed consolidated interim financial statements were distributed as follows:

		30 June 2020	27 August 2020
Shareholder	Number of Shares	Ownership interest, %	Number of Shares	Ownership interest, %
Mr. Iurii Zhuravlov	16 851 979	77,77 %	16 851 979	77,77 %
Others	4 818 021	22,23 %	4 818 021	22,23 %
	21 670 000	100,00 %	21 670 000	100,00 %

2. BASIS OF PREPARATION

The condensed consolidated interim financial statements of the Company as at and for the six months ended 30 June 2020 comprise the financial statements of the Company and its subsidiaries (together with the Company, the ''Group'').

2.1 Statement of compliance

These condensed consolidated interim financial statements for the six months ended 30 June 2020 have been prepared in accordance with International Accounting Standard (IAS) 34 ''Interim Financial Reporting'' and were not audited by the external independent auditors of the Group. These condensed consolidated interim financial statements do not include all the information required for a complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual consolidated financial statements as at and for the year ended 31 December 2019.

2.2 Basis of measurement

These condensed consolidated interim financial statements have been prepared under the historical cost convention except for the following:

• Biological assets and agricultural produce, which are stated at fair value less costs to sell (agricultural produce is measured at fair value at the point of harvest)
• Debt securities which are stated at amortised cost
• Investments designated at fair value through profit or loss.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2020

(in USD thousand, unless otherwise stated)

2 . BASIS OF PREPARATION (cont.)

2.3 Functional and presentation currency

The functional currencies of the companies of the Group are the Ukrainian Hryvnia (UAH) and United States Dollar (USD). The currency of Cyprus is Euro, but the principal exposure of the parent undertaking is in US dollars, therefore the functional currency of the Company is considered to be USD. Transactions in currencies other than the functional currency of the Group's companies are treated as transactions in foreign currencies. The Group's management decided to use US dollar (USD) as the presentation currency for financial and management reporting purposes. Exchange differences arising are classified as equity and transferred to the translation reserve.

The exchange rates used in preparation of these condensed consolidated interim financial statements, are as follows:

Currency	30 June 2020	Average for the	31 December	Average for the	31 December
		six months	2019	six months	2018
		ended 30 June		ended 30 June
		2020		2019
US dollar - UAH	26,6922	25,9834	23,6862	26,1664	27,6883

2.4 Going concern basis

These condensed consolidated interim financial statements have been prepared under the going concern basis, which assumes the realisation of assets and settlement of liabilities in the course of ordinary economic activity. Renewals of the Group's assets, and the future activities of the Group, are significantly influenced by the current and future economic environment in Ukraine. The Board of Directors and Management are closely monitoring the events in the current operating environment of the Group as described in note 25 to the condensed consolidated interim financial statements and has assessed the current situation and there is no indication of adverse effects while at the same time are taking all the steps to secure Group's short and long term viability. To this effect, they consider that the Group is able to continue its operations as a going concern.

2.5 Standards and interpretations

Adoption of new and revised International Financial Reporting Standards and Interpretations

As from 1 January 2020, the Group adopted all changes to International Financial Reporting Standards (IFRSs) as adopted by EU which are relevant to its operations. This adoption did not have a material effect on the condensed consolidated financial statements of the Group.

A number of new standards and amendments to standards are effective for annual periods beginning after 1 January 2020 and earlier application is permitted; however, the Group has not early adopted them in preparing these condensed consolidated interim financial statements. Their adoption in the next reporting periods is not expected to have a material impact on the Group.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2020

(in USD thousand, unless otherwise stated)

3. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies applied in these condensed consolidated interim financial statements are the same as those applied in the Group's annual consolidated financial statements as at and for the year ended 31 December 2019.

4. REVENUE

	30 June 2020	30 June 2019
Sales of goods	13 496	17 574
Rendering of services	353	275
Total	13 849	17 849

Revenue generated from sale of goods was as follows:

	30 June 2020	30 June 2019
Livestock and related revenue	1 213	1 935
Winter wheat	32	2 558
Sunflower	12 139	5 836
Corn in grain	60	94
Vegetable oil and protein meals	-	6 795
Other agricultural crops	52	356
Total	13 496	17 574

Sales volume for main agricultural products in tonnes was as follows:

	30 June 2020 tonnes	30 June 2019 tonnes
Winter wheat	225	13 799
Sunflower	37 461	18 908
Corn in grain	572	652
Vegetable oil and protein meals	-	16 585
Total	38 258	49 944

Sales volume for milk yield for the six months ended 30 June 2020 was 3 097 tonnes (30 June 2019: 5 146 tonnes).

Revenue generated from rendering of services relates to storage and handling services provided to third parties.

Livestock and related revenue includes revenue from poultry and other livestock related products.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2020

(in USD thousand, unless otherwise stated)

5. COST OF SALES

	30 June 2020	30 June 2019
Livestock and related operations	1 216	1 878
Plant breeding and related operations	11 079	11 609
Vegetable oil and protein meals	-	5 946
Other activities	281	220
Total	12 576	19 653

6. OTHER OPERATING INCOME

	30 June 2020	30 June 2019
Government grants	21	13
Reversal of provision for bad debts	12	-
Income from reversal of impairment of PPE	-	20
Other income	58	45
Total	91	78

7. ADMINISTRATIVE EXPENSES

Note	30 June 2020	30 June 2019
Personnel expenses	867	1 859
Amortisation of intangible assets	5	-
Depreciation charge	23	25
Transportation expenses	51	88
Materials	3	4
Insurance	1	1
Professional fees	115	180
Communication services	30	30
Other expenses	131	147
Total	1 226	2 334

8. DISTRIBUTION EXPENSES

	Note	30 June 2020	30 June 2019
Transportation expenses		22	444
Other expenses		-	7
Total		22	451

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2020

(in USD thousand, unless otherwise stated)

9. OTHER OPERATING EXPENSES

	30 June 2020	30 June 2019
Depreciation charge	8	6
Loss on disposal of property, plant and equipment		12
Loss on disposal of land lease rights	-	5
Impairment of inventories	1 288	944
Fines and penalties	1	-
Other expenses	30	21
Total	1 327	988

10. NET FINANCE COSTS

	30 June 2020	30 June 2019
Interest income	87	1 031
Profit on foreign exchange differences	-	3 563
Finance income	87	4 594
Finance costs on lease liabilities	(1 733)	(1 406)
Interest on non-bank loans	-	(6)
Interest on notes		(17)
Loss on foreign exchange differences	(8 370)
Finance costs	(10 103)	(1 429)
Net finance (costs)/income	(10 016)	3 165

11. PROPERTY, PLANT AND EQUIPMENT

During the six months ended 30 June 2020, the Group acquired items of property, plant and equipment with a cost of USD 1 041 thousand (the six months ended 30 June 2019: USD 2 222 thousand).

12 RIGHT-OF-USE ASSETS

The Group's right-of-use assets represent leases of plough-land from individuals. The total size of leased plough-land at 30 June 2020 is 94 thousand hectares (31 December 2019: 94 thousand hectares).

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2020

(in USD thousand, unless otherwise stated)

13. BIOLOGICAL ASSETS

Biological assets were presented as follows:

	30 June 2020	31 December 2019
Crops under cultivation Animals in growing and fattening	32 789 624	8 376 731
Total current biological assets	33 413	9 107
Cattle	1 019	1 141
Total non-current biological assets	1 019	1 141
Total	34 432	10 248

13.1 Crops under cultivation

At 30 June 2020 and 31 December 2019 the crops under cultivation were presented as follows:

	30 June 2020		31 December 2019
	Thousands of hectares	Carrying values	Thousands of hectares	Carrying values
Winter wheat plantings	37	14 997	38	8 232
Corn plantings	1	226	-	-
Sunflower plantings	38	17 258	-	-
Winter rape plantings	1	187	1	137
Other plantings	1	121	-	-
Total	78	32 789	39	8 376

The main crops harvested and the fair value at the time of harvesting was as follows:

		30 June 2020		30 June 2019
	Volume, tonnes	Amount, USD thousand	Volume, tonnes	Amount, USD thousand
Winter wheat	445	86	19 346	5 156
Other sowing	6 112	159	8 222	451
Total	6 557	245	27 568	5 607

Other sowing mainly includes grass plants for production of animal feed.

Expenses capitalised in biological assets mainly include fertilisers, fuel, seeds and labour.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2020

(in USD thousand, unless otherwise stated)

13. BIOLOGICAL ASSETS (cont.)

13.2 Non-current biological assets and animals in growing and fattening

Non-current biological assets:

		30 June 2020		31 December 2019
	Number, heads	Fair value	Number, heads	Fair value
Cattle	1 062	1 019	1 072	1 141
Total		1 019		1 141

Animals in growing and fattening:

		30 June 2020		31 December 2019
	Number, heads	Fair value	Number, heads	Fair value
Cattle	1 240	622	1 273	731
Horses	2	2	-	-
Total		624		731

Expenses capitalised in biological assets of animals include mixed folder, electricity, labour, depreciation and other.

14. INVESTMENTS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS

	30 June 2020	31 December 2019
US Treasury notes	9 198	9 157
Bank of Cyprus Holdings Plc	141	107
Total	9 339	9 264

15. LOANS RECEIVABLE

	31 December 2019
18 549	18 549
5 767	5 767
(5 767)	(5 767)
18 549	18 549
22	Note 30 June 2020

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2020

(in USD thousand, unless otherwise stated)

15. LOANS RECEIVABLE (cont.)

• On 29 June 2012, the Company has entered into a loan agreement with Stimi Agri Limited amounting to USD 2 million. The loan bears interest of 20% per annum and expired on 29 June 2013. On 28 June 2013 the two parties agreed to postpone the repayment date to 31 December 2014. During 2014 the two parties agreed to further postpone the repayment date to 31 December 2015. During 2015 the two parties agreed to further postpone the repayment date to 31 December 2016. During 2016 the two parties agreed to further postpone the repayment date to 31 December 2017. During 2017 the two parties agreed to further postpone the repayment date to 31 December 2018. The above loan is unsecured.
• On 29 June 2012, the Company has entered into a loan agreement with Stiomi Agri Limited amounting to USD 2 million. The loan bears interest at a rate of 10% per annum and expired on 29 December 2013. On 28 June 2013 the two parties agreed to postpone the repayment dates to 31 December 2014. During 2014 the two parties agreed to further postpone the repayment to 31 December 2015. During 2015 the two parties agreed to further postpone the repayment date to 31 December 2016. During 2016 the two parties agreed to further postpone the repayment date to 31 December 2017. During 2017 the two parties agreed to further postpone the repayment date to 31 December 2018. The above loan is unsecured.
• On 4 March 2013, the Company has entered into a loan agreement with Agriland Trading Limited amounting to USD 10 million. The loan bears interest at a rate of 20% and expired on 4 March 2014. During 2014 the two parties agreed to further postpone the repayment to 31 December 2015. During 2015 the two parties agreed to further postpone the repayment date to 31 December 2016. During 2016 the two parties agreed to further postpone the repayment date to 31 December 2017. During 2017 the two parties agreed to further postpone the repayment date to 31 December 2018. The above loan is unsecured.
• On 1 October 2013, the Company has entered into a loan agreement with Hoyt Network Limited amounting to USD 10 million. The loan bears interest at a rate of 10% and expired on 1 October 2014. During 2014 the two parties agreed to further postpone the repayment to 1 October 2015. During 2015 the two parties agreed to further postpone the repayment date to 31 December 2016. During 2016 the two parties agreed to further postpone the repayment date to 31 December 2017. During 2017 the two parties agreed to further postpone the repayment date to 31 December 2018. The above loan is unsecured.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2020

(in USD thousand, unless otherwise stated)

16. INVENTORIES

	30 June 2020	31 December 2019
Raw materials	1 426	1 387
Work-in-progress	1 609	4 153
Agricultural produce	531	13 689
Finished goods	1	-
Other	1 309	951
Total	4 876	20 180

Agricultural produce

The main agricultural produce was as follows:

	30 June 2020	31 December 2019
Winter wheat	168	125
Sunflower	-	12 792
Corn	8	36
Other agricultural crops	355	736
Total	531	13 689

The main agricultural produce volume in tonnes was as follows:

	30 June 2020	31 December 2019
Winter wheat	1 040	783
Sunflower	2	40 869
Corn	74	307
Total	1 116	41 959

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2020

(in USD thousand, unless otherwise stated)

17. TRADE AND OTHER RECEIVABLES

	Note	30 June 2020	31 December 2019
Trade receivables		257	2 877
Provision for impairment of receivables		-	-
Trade receivables, net Prepayments to suppliers		257 840	2 877 891
Other receivables		33 602	33 695
Provision for impairment of prepayments and other receivables		(33 186)	(33 206)
VAT recoverable		376	251
Total		1 889	4 508

On 29 June 2012, the Company entered into a preliminary agreement with Stiomi Agri Limited ('Seller') for the acquisition of 100% of the issued share capital of Private Enterprise 'Peredilske'. The parties agreed that the price for transfer of the company's shares amounting to USD 23 080 000.

On 26 December 2012, the Company entered into a preliminary agreement with Stiomi Agri Limited ('Seller') for the acquisition of 100% of the issued share capital of Limited Liability Company 'Skhid Potencial-Resurs'. The parties agreed that the price for transfer of the company's shares shall amount to USD 10 000 000.

On 3 September 2013 both agreements for the acquisition of PE "Peredilske" and of LLC "Skhid-Potencial-Resurs" have been cancelled. The parties agreed that the whole amount paid should be returned to the Company within twelve months of the signing of the cancellation agreements, either in cash and/or an equivalent market value's worth of agricultural goods.

Due to political and economic developments and military conflict in Eastern Ukraine, Stiomi Agri Limited is currently unable to repay this amount to the Group. It is highly probable that this amount will never be recovered, therefore an impairment loss for USD 33 080 thousand was recognised in 2014.

18. CASH AND CASH EQUIVALENTS

	30 June 2020	31 December 2019
Cash at bank - USD	9 428	11 112
Cash at bank - UAH	811	824
Cash at bank - Euro	1	1
Cash in hand	1	1
Total	10 241	11 938

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2020

(in USD thousand, unless otherwise stated)

19. LEASE LIABILITIES

	30 June 2020	31 December 2019
Non-current liabilities
Lease liabilities	14 365	15 389
	14 365	15 389
Current liabilities
Lease liabilities	4 582	4 895
	4 582	4 895
Total lease liabilities	18 947	20 284

Lease liabilities represent Group's obiligations recognised in respect of the Group's right-of-use assets in respect of operating leases of plough-land from individuals.

20. LOANS AND BORROWINGS

	30 June 2020	31 December 2019
Current liabilities
Loan from owner	127	127
Total loans and borrowings	127	127

21. TRADE AND OTHER PAYABLES

	30 June 2020	31 December 2019
Trade payables	490	78
Payroll and related expenses accrued	4 030	6 186
Advances received	1 874	-
Liabilities for other taxes and mandatory payments	66	135
VAT payable	10	287
Accrued expenses	17	36
Other provisions	8	13
Other liabilities	21	19
Total	6 516	6 754

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2020

(in USD thousand, unless otherwise stated)

22. RELATED PARTY BALANCES AND TRANSACTIONS

As at 30 June 2020 and the date of this report, the Company is controlled by Mr. Iurii Zhuravlov, who holds directly 77,77% of the Company's share capital. The remaining 22,23% of the shares is widely held.

For the purposes of these condensed consolidated interim financial statements, parties are considered to be related if one party has the ability to control the other party, is under common control, or can exercise significant influence over the other party in making financial or operational decisions. In considering each possible related party relationship, attention is directed to the substance of the relationship, not merely the legal form.

According to these criteria the related parties of the Group are divided into the following categories:

• a. Companies in which Group's companies have an equity interest;
• b. Companies in which key management personnel has an equity interest;
• c. Key management personnel;
• d. Companies and individuals significantly influencing the Group and having an interest in equity of Group's companies.

Salary costs of key management personnel for the six months ended 30 June 2020 and 30 June 2019 were as follows:

	30 June 2020	30 June 2019
Wages and salaries Contributions to social funds	775 6	1 205 10
Total	781	1 215

Key management personnel include Directors (Executive and Non-Executive), the Chief Financial Officer, the Chief Agronomist, the Head of the Food Production Division and the Head of the Livestock Division.

	30 June 2020	30 June 2019
Number of key management personnel, persons	11	11

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2020

(in USD thousand, unless otherwise stated)

22. RELATED PARTY BALANCES AND TRANSACTIONS (cont.)

Outstanding balances with related parties:

Loans receivable	30 June 2020	31 December 2019
d. Companies and individuals significantly influencing the Group and having an interest in equity of Group's companies
Mr Iurii Zhuravlov - Chief Executive Officer	18 549	18 549
Total	18 549	18 549
Loans payable
d. Companies and individuals significantly influencing the Group and having an interest in equity of Group's companies
Mr Iurii Zhuravlov - Chief Executive Officer	127	127
Total	127	127
The Group's transactions with related parties: Finance income	30 June 2020	30 June 2019
d. Companies and individuals significantly influencing the Group and having an interest in equity of Group's companies
Mr Iurii Zhuravlov - Chief Executive Officer	-	736
Total	-	736
Expenses
c. Key management personnel	781	1 215
Total	781	1 215

23. OPERATING SEGMENTS

A reportable segment is a separable component of a business entity that produces goods or provides services to individuals (or groups of related products or services) in a particular economic environment that is subject to risks and generates revenues other than risks and income of those components that are peculiar to other reportable segments.

Reportable segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. All reportable segments' results are reviewed regularly by the Group's CEO to make decisions about resources to be allocated to the segment and to assess its performance, and for which discrete financial information is available.

The operating businesses are organised and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2020

(in USD thousand, unless otherwise stated)

23. OPERATING SEGMENTS (cont.)

For the six months ended 30 June 2020 the Group identified the following reportable segments, which include products and services, that differ by levels of risk and conditions of generation of income:

• Plant breeding
• Livestock
• Vegetable oil and protein meal
• Other
• (i) Plant breeding segment raises and sells agricultural products and renders accompanying services. The main types of agricultural produce which are sold in this reportable segment are wheat, rye, barley, sunflowers, rape and sunflower oil. The main services which are sold in this reportable segment are ploughing, handling and grain storage services.
• (ii) Livestock segment raises and sells biological assets and agricultural products of cattle breeding. The main biological assets and agricultural products which are sold in this reportable segment are poultry, cattle, pigs and milk.
• (iii) Vegetable oil and protein meal is a new segment the Group started disclosing in 2017. It represents the processing of own sunflower seeds into sunflower oil and protein meal using outsourced production facilities.

No operating segments have been aggregated to form the above reportable operating segments.

Transfer prices between operating segments are on an arm's length basis in a manner similar to transactions with third parties.

Management monitors the operating results of each of the unit separately for the purpose of making decisions about resources allocation and evaluation of operating results.

Segment performance is evaluated based on operating profit or loss and is measured consistently with operating profit or loss in the condensed consolidated interim financial statements. Group financing (including finance expense and finance income) and income taxes, are managed on a group basis and are not allocated to operating segments.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2020

(in USD thousand, unless otherwise stated)

23. OPERATING SEGMENTS (cont.)

Information by reportable segment is presented as follows:

For the six months ended 30 June 2020	Livestock	Plant breeding	Vegetable oil and protein meal	Other	Group level	Total
Total revenue	1 679	19 171	-	8 078	-	28 928
Inter-segment sales	(466)	(6 888)	-	(7 725)	-	(15 079)
External revenues	1 213	12 283	-	353	-	13 849
Net change in fair value less cost to sell of
biological assets and agricultural produce	(309)	7 381	-	-	-	7 072
Expenses (excluding depreciation and amortisation	(2 136)	(20 660)	-	(482)	-	(23 278)
Profit for the period (excluding depreciation
and amortisation)	(1 232)	(996)	-	(129)	-	(2 357)
Depreciation and amortisation	(124)	(987)	-	(103)	-	(1 214)
(Loss)/profit before taxation from continuing
operations	(1 356)	(1 983)	-	(232)	-	(3 571)
Reportable segment assets	4 091	74 727	-	5 413	27 887	112 118
Reportable segment liabilities	572	24 734	-	167	613	26 086

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2020

(in USD thousand, unless otherwise stated)

23. OPERATING SEGMENTS (cont.)

For the six months ended 30 June 2019	Livestock	Plant breeding	Vegetable oil and protein meal	Other	Group level	Total
Total revenue	2 134	8 772	6 795	436	-	18 137
Inter-segment sales	(199)	(39)	-	(50)	-	(288)
External revenues	1 935	8 733	6 795	386	-	17 849
Net change in fair value less cost to sell of	241	5 456	-	-	-	5 697
biological assets and agricultural produce
Expenses (excluding depreciation and
amortisation)	(1 891)	(10 149)	(5 622)	(164)	-	(17 826)
Profit for the period (excluding depreciation and amortisation)	285	4 040	1 173	222	-	5 720
Depreciation and amortisation	(95)	(1 947)	(324)	(77)	-	(2 443)
Profit before taxation from continuing operations	190	2 093	849	145	-	3 277

Information by reportable segments for the year ended 31 December 2019 is presented as follows:

Reportable segment assets	7 155	76 342	962	256	26 232	110 947
Reportable segment liabilities	1 032	22 223	-	206	152	23 613

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2020

(in USD thousand, unless otherwise stated)

24. SEASONALITY OF OPERATIONS

The Group's operations are subject to seasonal fluctuations as a result of weather conditions. In particular, the cultivation of crops is adversely affected by winter weather conditions, which occur primarily from January to March. The first half of the year typically results in lower revenues and results for cultivations.

As a result of the annual cycle of crops producing and the Group's attempts to take an advantage of seasonal price changes by managing inventory in its storage facilities, the Group's Plant breeding segment is subject to seasonal fluctuations. Profits of this segment tend to be higher in the first half of a year.

25. OPERATING ENVIROMENT

Cyprus economic environment

The Cyprus economy has been adversely affected during the last few years by the economic crisis. The negative effects have to some extent been resolved, following the negotiations and the relevant agreements reached with the European Commission, the European Central Bank and the International Monetary Fund (IMF) for financial assistance which was dependent on the formulation and the successful implementation of an Economic Adjustment Program. The agreements also resulted in the restructuring of the two largest (systemic) banks in Cyprus through a "bail in".

The Cyprus Government has successfully completed earlier than anticipated the Economic Adjustments Program and exited the IMF program on 7 March 2016, after having recovered in the international markets and having only used €7,25 billion of the total €10 billion earmarked in the financial bailout. Under the new Euro area rules, Cyprus will continue to be under surveillance by its lenders with biannual post-program visits until it repays 75% of the economic assistance received.

Although there are signs of improvement, especially in the macroeconomic environment of the country's economy including growth in GDP and reducing unemployment rates, significant challenges remain that could affect the estimates of the Company's cash flows and its assessment of impairment of financial and non-financial assets.

Ukrainian economic and political environment

The Group conducts its operations mainly in Ukraine. Ukraine's political and economic situation has deteriorated significantly since 2014. Following political and social unrest in early 2014, in March 2014, various events in Crimea led to the accession of the Republic of Crimea to the Russian Federation, which was not recognised by Ukraine and many other countries. This event resulted in a significant deterioration of the relationship between Ukraine and the Russian Federation. Following the instability in Crimea, regional tensions have spread to the Eastern regions of Ukraine, primarily Donetsk and Lugansk regions. In May 2014, protests in those regions escalated into military clashes and armed conflict between supporters of the self-declared republics of the Donetsk and Lugansk regions and the Ukrainian forces, which continued throughout the date of these financial statements. As a result of this conflict, part of the Donetsk and Lugansk regions remains under control of the self-proclaimed republics, and Ukrainian authorities are not currently able to fully enforce Ukrainian laws on this territory.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2020

(in USD thousand, unless otherwise stated)

25. OPERATING ENVIROMENT (cont.)

Ukrainian economic and political environment (cont.)

During 2015 and 2016 the anti-crisis measures undertaken by the Ukrainian government and NBU as well as financing through the extended fund facilities (EFF) agreed with International Monetary Fund (IMF) enabled the country to achieve a certain level of economic and political stability and provided the basis for economic recovery on the territory controlled by Ukraine. In 2016 and 2017 Ukraine's GDP grew by 2.3% and 2.1% respectively. This allowed NBU to ease some foreign exchange restrictions imposed since 2014, including a decrease in the share of the mandatory foreign currency conversion to 65% and permission of dividends remittance. However, certain other restrictions were prolonged.

Signs of economic recovery demonstrated in prior year continued in 2018, with inflation reducing to 9.8% from 13.7% in 2017 and GDP showing a gradual growth of 3.4% (2017: 2.5%), level of deposits in the banking sector growing, losses of the corporate and banking sectors decreasing. During 2019 the Ukrainian economy continued its growth with GDP increasing by 3.2% , inflation being 4.1% and Ukrainian Hryvnia appreciating against US Dollar by 14.5% on annual average basis. In view of these developments and in order to support international investments and trade, NBU withdrew all its requiements on mandatory sale of foreign currency proceeds and removed all its restrictions on remittance of dividends.

During 2018 the Ukrainian economy proceeded with recovery from the economic and political crisis of previous years and demonstrated a sound GDP growth of 3.4% (2017: 2.5%), decline in annual inflation of 9.8% (2017: 13.7%), and relatively stable foreign exchange rate of Ukrainian national currency.

On 11 March 2020, the World Health Organisation declared the Coronavirus COVID-19 outbreak to be a pandemic in recognition of its rapid spread across the globe. Many governments are taking increasingly stringent steps to help contain, and in many jurisdictions, now delay, the spread of the virus, including: requiring self-isolation/ quarantine by those potentially affected, implementing social distancing measures, and controlling or closing borders and "locking-down" cities/regions or even entire countries. These measures have slowed down both the broader Cyprus and world economies and the operations of the Group. As at the date of release of the consolidated financial statements the Group continues its operating activities without major disruptions: sowing compaign has been performed as planned, new volumes of agroproduce have been contracted with customers, the harvesting has commenced and is ongoing as expected. Therefore, unless the situation changes, the Group does not plan any significant adjustments to its annual budgeted numbers for the year ended 31 December 2020.

The final resolution and the effects of the political and economic crisis are difficult to predict but may have further severe effects on the Ukrainian economy.

Whilst management believes it is taking appropriate measures to support the sustainability of the Group's business in the current circumstances, a continuation of the current unstable business environment could negatively affect the Group's results and financial position in a manner not currently determinable. These consolidated financial statements reflect management's current assessment of the impact of the Ukrainian business environment on the operations and the financial position of the Group. The future business environment may differ from management's assessment.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2020

(in USD thousand, unless otherwise stated)

25. OPERATING ENVIROMENT (cont.)

Going concern basis following the economic and political environment

The dangers which may arise from unexpected external factors such as competition, and the further deterioration of the market conditions cannot be ignored. All these factors were analysed above. Having regard to the fact that the Company has fully settled its obligations on the Notes without incurring any additional liabilities, the Board of Directors believes that the Group will remain a going concern and that no indications of any kind of threat of liquidation exists in the foreseeable future.

The condensed consolidated interim financial statements do not include any adjustments that would be necessary in case the Group was not able to continue operating as a going concern.

26. CONTINGENT AND CONTRACTUAL LIABILITIES

Economic environment

The exposure of the Group to the economic environment and possible impact is disclosed in note 25 to the condensed consolidated interim financial statements.

Taxation

As a result of unstable economic enviroment in Ukraine, tax authorities in Ukraine pay more and more attention to the business cycles. In connection with this, tax laws in Ukraine are subject to frequent changes. Furthermore, there are cases of their inconsistent application, interpretation and execution. Noncompliance with laws and regulations may lead to severe fines and penalties.

The Company operates in the Cypriot tax jurisdiction and its subsidiaries in tax jurisdiction of the respective countries of incorporation. The Group's management must interpret and apply existing legislation to transactions with third parties and its own activities. Significant judgment is required in determining the provision for direct and indirect taxes. There are transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.The Group's uncertain tax positions are reassessed by management at every reporting period end. Liabilities are recorded for income tax positions that are determined by management as more likely than not to result in additional taxes being levied if the positions were to be challenged by the tax authorities.

The assessment is based on the interpretation of tax laws that have been enacted or substantively enacted by the reporting period and any known court or other rulings on such issues. Liabilities for penalties, interest and taxes other than on income are recognised based on management's best estimate of the expenditure required to settle the obligations at the reporting period.

The Group considers that it operates in compliance with tax laws of Ukraine, although, a lot of new laws about taxes and transactions in foreign currency have been adopted recently, and their interpretation is rather ambiguous.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2020

(in USD thousand, unless otherwise stated)

26. CONTINGENT AND CONTRACTUAL LIABILITIES (cont.)

Legal matters

In the course of its economic activities, the Group is involved in legal proceedings with third parties. In most cases, the Group is the initiator of such proceedings with the purpose of preventing or mitigating of economic losses.

The Group's management considers that as at the reporting period end, active legal proceedings on such matters will not have any significant influence on its financial position.

Pension and other liabilities

Most employees of the Group receive pension benefits from the Pension Fund, a Ukrainian Government organisation in accordance with the applicable laws and regulations of Ukraine. The Group is obliged to deduct and contribute a certain percentage of salaries to the Pension Fund to finance the benefits. The only obligation of the Group with respect to this pension plan is to make the specified contributions from salaries.

At 30 June 2020 and 31 December 2019 the Group's entities had no liabilities for any supplementary pensions, health care, insurance benefits or retirement indemnities to its current or former employees.

27. EVENTS AFTER THE REPORTING PERIOD

Events referred to in note 25 to the condensed consolidated interim financial statements will continue to influence the Group's operations in 2020. While management believes it is taking all necessary measures to maintain the sustainability of the business in the current circumstances, a further deterioration of economic and political conditions in Ukraine could adversly affect the Group's results and financial position, so that it is currently impossible to predict.

On 27 August 2020 the Board of Directors of Agroton Public Limited approved and authorised these condensed consolidated interim financial statements for issue.

UNAUDITED FINANCIAL STATEMENTS For the period from 1 January 2020 to 30 June 2020

UNAUDITED FINANCIAL STATEMENTS For the period from 1 January 2020 to 30 June 2020

CONTENTS PAGE

Board of Directors and other officers	1
Unaudited statement of profit or loss and other comprehensive income	2
Unaudited statement of financial position	3
Unaudited statement of changes in equity	4
Unaudited statement of cash flows	5
Notes to the financial statements	6 - 17

BOARD OF DIRECTORS AND OTHER OFFICERS

Board of Directors:	Iurii Zhuravlov (Chief Executive Officer)
	Tamara Lapta (Deputy Chief Executive Officer)
	Larysa Orlova (Chief Financial Officer)
	Borys Supikhanov (Non-Executive Director)
	Volodymyr Kudryavtsev (Non-Executive Director)
Company Secretary:	Inter Jura Cy (Services) Limited
Independent Auditors:	KPMG Limited
Legal Advisers:	K. Chrysostomides & Co LLC
Registered office:	1 Lampousas Street 1095 Nicosia Cyprus
Registration number:	ΗΕ255059

UNAUDITED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the period from 1 January 2020 to 30 June 2020

	Note	2020 US\$	2019 US\$
Loan interest income Net fair value gains on financial assets at fair value through profit or loss Coupon Interest Interest expense	15	1.566.465 590.272 86.544 (1.539.593)	3.308.020 301.452 125.058 (3.113.095)
Gross profit		703.688	621.435
Administration expenses Net impairment profit/(loss) on financial and contract assets	8	(44.414) -	(111.540) (790.000)
Operating profit/(loss)	9	659.274	(280.105)
Finance income Finance costs Net finance costs Profit/(loss) before tax	10	(279) (10.780) (11.059) 648.215	154 (20.947) (20.793) (300.898)
Tax	11	-	(164.151)
Net profit/(loss) for the period/year		648.215	(465.049)
Other comprehensive income		-	-
Total comprehensive income for the period/year		648.215	(465.049)

UNAUDITED STATEMENT OF FINANCIAL POSITION

30 June 2020

	Note	2020 US\$	2019 US\$
Assets
Non-current assets
Investments in subsidiaries	12	4.818	4.818
Loans receivable	13	67.257.130	62.690.664
		67.261.948	62.695.482
Current assets
Receivables	14	153.980	152.782
Loans receivable	13	944.760	1.084.760
Financial assets at fair value through profit or loss	15	9.338.084	9.263.435
Cash and cash equivalents	16	8.430.127	10.769.744
		18.866.951	21.270.721
Total assets		86.128.899	83.966.203
EQUITY AND LIABILITIES
Equity
Share capital	17	661.128	661.128
Share premium	17	88.531.664	88.531.664
Accumulated losses		(80.349.610)	(80.997.825)
Total equity		8.843.182	8.194.967
Non-current liabilities
Borrowings	18	-	75.241.008
		-	75.241.008
Current liabilities Trade and other payables	19	17.357	42.470
Borrowings	18	76.780.601	-
Current tax liabilities	20	487.759	487.758
		77.285.717	530.228
Total liabilities		77.285.717	75.771.236
Total equity and liabilities		86.128.899	83.966.203

On ................... 2020 the Board of Directors of AGROTON PUBLIC LIMITED authorised these financial statements for issue.

signed signed Director Director

.................................... ....................................

UNAUDITED STATEMENT OF CHANGES IN EQUITY For the period from 1 January 2020 to 30 June 2020

	Share capital US\$	Share premium US\$	Accumula ted losses US\$	Total US\$
Balance at 1 January 2019	661.128		88.531.664 (80.532.776)	8.660.016
Comprehensive expense Net loss for the year	-	-	(465.049)	(465.049)
Balance at 31 December 2019/ 1 January 2020	661.128		88.531.664 (80.997.825)	8.194.967
Comprehensive income Net profit for the period	-	-	648.215	648.215
Balance at 30 June 2020	661.128		88.531.664 (80.349.610)	8.843.182

In accordance with the Cyprus Companies Law, Cap. 113, Section 55 (2) the share premium reserve can only be used by the Company in (a) paying up unissued shares of the Company to be issued to members of the Company as fully paid bonus shares; (b) writing off the expenses of, or the commission paid or discount allowed on, any issue of shares or debentures of the Company; and (c) providing for the premium payable on redemption of any redeemable preference shares or of any debentures of the Company.

Companies which do not distribute 70% of their profits after tax, as defined by the Special Contribution for the Defence of the Republic Law, during the two years after the end of the year of assessment to which the profits refer, will be deemed to have distributed this amount as dividend. Special contribution for defence at 17% will be payable on such deemed dividend to the extent that the ultimate owners at the end of the period of two years from the end of the year of assessment to which the profits refer are both Cyprus tax resident and Cyprus domiciled. The amount of this deemed dividend distribution is reduced by any actual dividend paid out of the profits of the relevant year at any time. This special contribution for defence is paid by the company for the account of the owners.

UNAUDITED STATEMENT OF CASH FLOWS

For the period from 1 January 2020 to 30 June 2020

		2020	2019
	Note	US\$	US\$
CASH FLOWS FROM OPERATING ACTIVITIES
Profit/(loss) before tax		648.215	(300.898)
Adjustments for: Exchange difference arising on the translation of non-current assets in
foreign currencies		492.890	-
Unrealised exchange loss/(profit)		248	(154)
Fair value gains on financial assets at fair value through profit or loss		(590.272)	(301.452)
Impairment charge - loans to related parties	21	-	790.000
Interest income		(1.566.465)	(3.308.020)
Interest expense	10	1.539.593	3.096.105
Coupon Interst		(86.543)	(125.058)
		437.666	(149.477)
Changes in working capital:
Increase in receivables		(1.199)	(4.824)
Increase in financial assets at fair value through profit or loss		(492.890)	-
Decrease in trade and other payables		(25.354)	(4.396)
Cash used in operations		(81.777)	(158.697)
Interest received		140.000	465.919
Net cash generated from operating activities		58.223	307.222
CASH FLOWS FROM INVESTING ACTIVITIES
Loans granted		(3.000.000)	-
Loans repayments received		-	2.431.366
Payment for purchase of financial assets at fair value through profit or loss		- 500.000	(8.827.808)
Proceeds from sale/redemption of available-for-sale financial assets Coupon Interest received		102.167	- 132.256
Net cash used in investing activities		(2.397.833)	(6.264.186)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of borrowings		-	(7.759.510)
Net cash used in financing activities		-	(7.759.510)
Net decrease in cash and cash equivalents		(2.339.610)	(13.716.474)
Cash and cash equivalents at beginning of the period/year		10.769.744	24.486.187
Effect of exchange rate fluctuations on cash held		(7)	31
Cash and cash equivalents at end of the period/year	16	8.430.127	10.769.744

NOTES TO THE FINANCIAL STATEMENTS For the period from 1 January 2020 to 30 June 2020

1. Incorporation and principal activities

Country of incorporation

Agroton Public Limited (the ''Company'') was incorporated in Cyprus on 21 September 2009 as a private limited liability company under the provisions of the Cyprus Companies Law, Cap. 113. The Company was listed at the main market of Warsaw Stock Exchange on 8 November 2010. Its registered office is at 1 Lampousas Street, 1095 Nicosia, Cyprus.

The principal activities of the Company, which are unchanged from last year, are those of an investment holding company and the provision of financing to related parties. The Company is the holding company of a group of companies of agriculture producers in Ukraine. The principal activities of the Group which remained the same as in the previous year, are grain and oil crops growing, agricultural products storage and sale, cattle breeding (milk cattlebreeding, poultry farming) and milk processing. The poultry farming business has been temporarily abandoned due to the military clashes and armed conflict in Eastern Ukraine.

2. Basis of preparation

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union (EU) and the requirements of the Cyprus Companies Law, Cap. 113. The financial statements have been prepared under the historical cost convention as modified by the revaluation of, and financial assets and financial liabilities at fair value through profit or loss.

The Company has prepared these parent's separate financial statements for compliance with the requirements of the Cyprus Income Tax Law.

The Company has also prepared consolidated financial statements in accordance with IFRSs for the Company and its subsidiaries (together with the Company, the ''Group''). The consolidated financial statements can be obtained from the Company's registered office.

3. Adoption of new or revised standards and interpretations

As from 1 January 2020, the Company adopted all the following IFRSs and International Accounting Standards (IAS), which are relevant to its operations. The adoption of these Standards did not have a material effect on the financial statements.

4. Significant accounting policies

The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented in these financial statements unless otherwise stated.

Subsidiary companies

Subsidiaries are entities controlled by the Company. Control exists where the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.

Investments in subsidiary companies are stated at cost less provision for impairment in value, which is recognised as an expense in the period in which the impairment is identified.

Finance expenses

Interest expense and other borrowing costs are charged to profit or loss as incurred.

NOTES TO THE FINANCIAL STATEMENTS For the period from 1 January 2020 to 30 June 2020

4. Significant accounting policies (continued)

Foreign currency translation

(1) Functional and presentation currency

Items included in the Company's financial statements are measured using the currency of the primary economic environment in which the entity operates ('the functional currency'). The financial statements are presented in United States Dollars (US\$), which is the Company's functional and presentation currency.

(2) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss. Translation differences on non-monetary items such as equities held at fair value through profit or loss are reported as part of the fair value gain or loss.

Tax

Tax liabilities and assets for the current and prior periods are measured at the amount expected to be paid to or recovered from the taxation authorities, using the tax rates and laws that have been enacted, or substantively enacted, by the reporting date. Current tax includes any adjustments to tax payable in respect of previous periods.

Financial liabilities - measurement categories

Financial liabilities are initially recognised at fair value and classified as subsequently measured at amortised cost, except for (i) financial liabilities at FVTPL: this classification is applied to derivatives, financial liabilities held for trading (e.g. short positions in securities), contingent consideration recognised by an acquirer in a business combination and other financial liabilities designated as such at initial recognition and (ii) financial guarantee contracts and loan commitments.

Share capital

Ordinary shares are classified as equity. The difference between the fair value of the consideration received by the Company and the nominal value of the share capital being issued is taken to the share premium account.

5. New accounting pronouncements

At the date of approval of these financial statements, standards and interpretations were issued by the International Accounting Standards Board which were not yet effective. Some of them were adopted by the European Union and others not yet. The Board of Directors expects that the adoption of these accounting standards in future periods will not have a material effect on the financial statements of the Company.

The Board of Directors expects that the adoption of these standards or interpretations in future periods will not have a material effect on the financial statements of the Company.

6. Financial risk management

Financial risk factors

The Company is exposed to credit risk, liquidity riskmarket risk, and currency risk arising from the financial instruments it holds. The risk management policies employed by the Company to manage these risks are discussed below:

6.1 Credit risk

Credit risk arises when failure by counter parties to discharge their obligations could reduce the amount of future cash inflows form financial assets on hand at the reporting date.

NOTES TO THE FINANCIAL STATEMENTS For the period from 1 January 2020 to 30 June 2020

6. Financial risk management (continued)

6.1 Credit risk (continued)

(i) Impairment of financial assets

The Company has the following types of financial assets that are subject to the expected credit loss model:

cash and cash equivalents

The table below shows an analysis of the Company's bank deposit by the credit rating of the bank in which they are held:

		2020	2019
Bank group based on credit ratings by Moody's	No of banks	US\$	US\$
A- to A+	2	8.427.805	10.767.737
Lower than A-	1	2.322	2.007
		8.430.127	10.769.744

6.2 Liquidity risk

Liquidity risk is the risk that arises when the maturity of assets and liabilities does not match. An unmatched position potentially enhances profitability, but can also increase the risk of losses. The Company has procedures with the object of minimising such losses such as maintaining sufficient cash and other highly liquid current assets and by having available an adequate amount of committed credit facilities.

The following tables detail the Company's remaining contractual maturity for its financial liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The table includes both interest and principal cash flows.

30 June 2020	Carrying amounts	Contractual cash flows	3 months or less	3-12 months	1-5 years	More than 5 years
Trade and other payables	US\$ 17.360	US\$ 17.360	US\$ -	US\$ 17.360	US\$ -	US\$ -
Loans from subsidiaries	76.780.601	78.345.572	-	78.345.572	-	-
	76.797.961	78.362.932	-	78.362.932	-	-
31 December 2019			Carrying	Contractual
			amounts	cash flows	3-12 months	1-5 years
Trade and other payables			US\$ 1.805	US\$ 1.805	US\$ 1.805	US\$ -
Loans from subsidiaries			75.241.008	78.354.078	-	78.354.078
			75.242.813	78.355.883	1.805	78.354.078

6.3 Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company's income or the value of its holdings of financial instruments.

The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

6.3.1 Interest rate risk

Interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in market interest rates. Borrowings issued at variable rates expose the Company to cash flow interest rate risk. Borrowings issued at fixed rates expose the Company to fair value interest rate risk. Company's management monitors the interest rate fluctuations on a continuous basis and acts accordingly.

NOTES TO THE FINANCIAL STATEMENTS

For the period from 1 January 2020 to 30 June 2020

6. Financial risk management (continued)

6.3. Market risk (continued)

6.3.1 Interest rate risk (continued)

At the reporting date the interest rate profile of interest- bearing financial instruments was:

	2020 US\$	2019 US\$
Fixed rate instruments
Financial assets	49.768.635	64.565.424
Financial liabilities	(51.601.754)	(75.241.008)
	(1.833.119)	(10.675.584)

6.3.2 Currency risk

Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. Currency risk arises when future commercial transactions and recognised assets and liabilities are denominated in a currency that is not the Company's measurement currency. The Company is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the Euro. The Company's Management monitors the exchange rate fluctuations on a continuous basis and acts accordingly.

7. Critical accounting estimates and judgments

The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates and requires Management to exercise its judgment in the process of applying the Company's accounting policies. It also requires the use of assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on Management's best knowledge of current events and actions, actual results may ultimately differ from those estimates.

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Going concern basis

The Directors judge that it is appropriate to prepare the financial statements on the going concern basis.

Income taxes

Significant judgment is required in determining the provision for income taxes. There are transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Company recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.

NOTES TO THE FINANCIAL STATEMENTS For the period from 1 January 2020 to 30 June 2020

7. Critical accounting estimates and judgments (continued)

Critical judgements in applying the Company's accounting policies

Fair value of financial assets

The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. The Company uses its judgment to select a variety of methods and make assumptions that are mainly based on market conditions existing at each reporting date. The fair value of the financial assets at fair value through other comprehensive income has been estimated based on the fair value of these individual assets.

Impairment of investments in subsidiaries

The Company periodically evaluates the recoverability of investments in subsidiaries whenever indicators of impairment are present. Indicators of impairment include such items as declines in revenues, earnings or cash flows or material adverse changes in the economic or political stability of a particular country, which may indicate that the carrying amount of an asset is not recoverable. If facts and circumstances indicate that investment in subsidiaries may be impaired, the estimated future discounted cash flows associated with these subsidiaries would be compared to their carrying amounts to determine if a write-down to fair value is necessary.

Impairment of loans receivable

The Company periodically evaluates the recoverability of loans receivable whenever indicators of impairment are present. Indicators of impairment include such items as declines in revenues, earnings or cash flows or material adverse changes in the economic or political stability of a particular country in which the borrower operates, which may indicate that the carrying amount of the loan is not recoverable. If facts and circumstances indicate that loans receivable may be impaired, the estimated future discounted cash flows associated with these loans would be compared to their carrying amounts to determine if a write-down to fair value is necessary.

Impairment of financial assets

The loss allowances for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Company's past history, existing market conditions as well as forward looking estimates at the end of each reporting period. Details of the key assumptions and inputs used are disclosed in note 6, Credit risk section.

NOTES TO THE FINANCIAL STATEMENTS For the period from 1 January 2020 to 30 June 2020

8. Administration expenses

	2020	2019
	US\$	US\$
Municipality taxes	215	-
Annual levy	396	394
Subscriptions and contributions	-	3.333
Auditors' remuneration for the statutory audit of annual accounts	-	40.571
Accounting fees	3.184	12.143
Legal fees	-	1.013
Legal and professional	340	337
Secretarial fees	1.019	1.012
Registered office fees	1.019	1.012
Fines	-	2.187
Irrecoverable VAT	4.414	6.044
Professional fees	12.493	16.243
Custodian fees	21.334	27.251
	44.414	111.540
9. Operating profit/(loss)
	2020	2019
	US\$	US\$
Operating profit/(loss) is stated after the following items:	-
Auditors' remuneration for the statutory audit of annual accounts		40.571
10. Finance income/(costs)
	2020	2019
	US\$	US\$
Exchange profit	(279)	154
Finance income	(279)	154
Net foreign exchange losses	(310)	(1.481)
Sundry finance expenses	(10.470)	(19.466)
Finance costs	(10.780)	(20.947)
Net finance costs	(11.059)	(20.793)
11. Tax
	2020	2019
	US\$	US\$
Corporation tax	-	164.151
Charge for the period/year	-	164.151

The corporation tax rate is 12,5%.

Under certain conditions interest income may be subject to defence contribution at the rate of 30%. In such cases this interest will be exempt from corporation tax. In certain cases, dividends received from abroad may be subject to defence contribution at the rate of 17%.

NOTES TO THE FINANCIAL STATEMENTS

For the period from 1 January 2020 to 30 June 2020

12. Investments in subsidiaries

Balance at 1 January					2020 US\$ 4.818	2019 US\$ 4.818
	Balance at 30 June/31 December				4.818	4.818
	The details of the subsidiaries are as follows:
Name	Country of incorporation	Principal activities	2020 Holding %	2019 Holding %	2020 US\$	2019 US\$
"Living" LLC	Ukraine	Agricultural activities	99.99	99.99	4.718	4.718
Agroton (BVI) Limited	British Virgin Islands	Trading in Agriculture products	100	100	100	100
LLC "Gefest"	Ukraine	Owner of land lease rights		100	-	-
LLC "Lugastan" Ukraine		Owner of land lease rights	99.99	99.99	-	-
					4.818	4.818

The Company periodically evaluates the recoverability of investments in subsidiaries whenever indicators of impairment are present. Indicators of impairment include such items as declines in revenues, earnings or cash flows or material adverse changes in the economic or political stability of a particular country, which may indicate that the carrying amount of an asset is not recoverable. If facts and circumstances indicate that investment in subsidiaries may be impaired, the estimated future discounted cash flows associated with these subsidiaries would be compared to their carrying amounts to determine if a write-down to fair value is necessary.

The ownership of land lease rights previously held by subsidiary companies LLC Gefest and LLC Lugastan have been transferred to Agroton PJSC and PE Agricultural Production Firm Agro. Subsidiary company LLC Gefest was liquidated on July 25, 2019. LLC Lugastan is under liquidation procedures.

13. Loans receivable

Balance at 1 January New loans granted Repayments Interest charged Expected credit loss	2020 US\$ 63.775.424 3.000.000 (140.000) 1.566.466 -	2019 US\$ 64.154.688 - (2.897.284) 3.308.020 (790.000)
Balance at 30 June/31 December	68.201.890	63.775.424
Loans to own subsidiaries (Note 21.1) Loss allowance on loans receivable	2020 US\$ 68.991.890 (790.000)	2019 US\$ 64.565.424 (790.000)
Less current portion Non-current portion	68.201.890 (944.760) 67.257.130	63.775.424 (1.084.760) 62.690.664

NOTES TO THE FINANCIAL STATEMENTS For the period from 1 January 2020 to 30 June 2020

13. Loans receivable (continued)

The loans are repayable as follows:

	2020	2019
	US\$	US\$
Within one year	944.760	1.084.760
Between one and five years	67.257.130	62.690.664
	68.201.890	63.775.424

The exposure of the Company to credit risk in relation to loans receivable is reported in note 6 of the financial statements.

14. Receivables

	2020	2019
	US\$	US\$
Other receivables	-	160
Refundable VAT	153.980	152.622
	153.980	152.782

The fair values of receivables due within one year approximate to their carrying amounts as presented above.

The exposure of the Company to credit risk and impairment losses in relation to receivables is reported in note 6 of the financial statements.

15. Financial assets at fair value through profit or loss

	2020 US\$	2019 US\$
Listed securities Bank of Cyprus Holdings Plc	107.247	107.247
US Treasury notes Other short term notes	9.230.837 -	8.647.550 508.638
	9.338.084	9.263.435
	9.338.084	9.263.435
	2020 US\$	2019 US\$
Balance at 1 January Additions	9.263.435 -	141.373 8.820.610
Changes in coupon rate Change in fair value	(15.623) 590.272	- 301.452
Redemption Balance at 30 June/31 December	(500.000) 9.338.084	- 9.263.435

Bank of Cyprus Shares:

Bank of Cyprus shares, designated at fair value through profit or loss represented equity securities of Bank of Cyprus converted into shares after the decree issued by Central Bank of Cyprus on 29 March 2013. Based on that decree and the measurements for recapitalization of Bank of Cyprus, 47,5% of the uninsured deposits of the affected deposits have been converted into Bank of Cyprus shares.

NOTES TO THE FINANCIAL STATEMENTS For the period from 1 January 2020 to 30 June 2020

15. Financial assets at fair value through profit or loss (continued)

The Company held 1.591.105 shares with fair value €0,140 cents. In January 2017, the shares in Bank of Cyprus Public Company Limited were exchanged with new shares of Bank of Cyprus Holdings Plc listed in both London Stock Exchange and in Cyprus Stock Exchange with nominal value of €0,10 cents each. As at 31 December 2019 the Company held 79.556 shares in Bank of Cyprus Holdings Plc with fair value €1,20 (2018: €1,55) each.

UBS Switzerland AG and Bank Vontobel AG:

In 2019 the Company acquired US Treasury bonds and other short-term investment held in both UBS Switzerland AG and Bank Vontobel AG for a total consideration of US\$8.827.808. All instruments are publicly traded, recognizing a fair value gain of US\$590.272 as presented on the Statement of Profit or loss.

The exposure of the Company to market risk in relation to financial assets is reported in note 6 of the financial statements.

16. Cash and cash equivalents

For the purposes of the statement of cash flows, the cash and cash equivalents include the following:

	2020	2019
	US\$	US\$
Cash at bank	8.430.127	10.769.744
	8.430.127	10.769.744

The exposure of the Company to credit risk and impairment losses in relation to cash and cash equivalents is reported in note 6 of the financial statements.

17. Share capital and share premium

	2020 Number of	2020	2019 Number of	2019
	shares	US\$	shares	US\$
Authorised Ordinary shares of €0,021 each	47.619.048	1.321.500	47.619.048	1.321.500
Issued and fully paid	Number of shares	Share capital US\$	Share premium US\$	Total US\$
Balance at 1 January 2019	21.670.000	661.128	88.531.664	89.192.792
Balance at 31 December 2019	21.670.000	661.128	88.531.664	89.192.792
Balance at 31 December 2019/ 1 January 2020	21.670.000	661.128	88.531.664	89.192.792
Balance at 30 June 2020	21.670.000	661.128	88.531.664	89.192.792

Authorised share capital

On 31 December 2016 the authorised share capital of the Company amounted to 47.619.048 ordinary shares of nominal value €0,021 each.

NOTES TO THE FINANCIAL STATEMENTS For the period from 1 January 2020 to 30 June 2020

17. Share capital and share premium (continued)

Issued share capital

Upon incorporation on 21 September 2009 the Company issued to the subscribers of its Memorandum of Association 12.000.000 ordinary shares of value €0,021 each, amounting to €252.000 (US\$ equivalent of US\$ 370.591).

On 4 November 2009, the Company issued 4.000.000 additional ordinary shares of nominal value €0,021 each amounting to €84.000 (US\$ equivalent of US\$ 123.715), at a premium of €6,93 per share, amounting to a total share premium of €27.720.000 (US\$ equivalent of US\$38.791.285).

Global depository Receipts "GDRs" were issued against the 4.000.000 new shares by "The Bank of New York Mellon" for US\$9,72875 per each new share. The total consideration of the share capital issued was US \$38.915,000 out of which US\$123.715 is the total nominal value credited to the share capital account and US\$ 38.791.285 is the share premium reserve. Share issue expenses of US\$317.154 were deducted from the share premium reserve.

The members of the Company held an Extraordinary General Meeting on 25 June 2010 where they authorised and approved the increase of the issued share capital of the Company from 16.000.000 ordinary shares of €0,021 each amounting to €336.000 (US\$ equivalent of US\$ 494.306) to 21.670.000 ordinary shares of nominal value €0,021, by the creation of 5.670.000 ordinary shares of a nominal value of €0,021 each, ranking pari pasu with the existing shares of the Company.

On 29 October 2010 the Company proceeded and issued the 5.670.000 ordinary shares of nominal value €0,021each, amounting to €119.070 (equivalent to US\$ 166.822) at a premium of €6,7595 per share amounting to a total share premium of €38.326.365 (equivalent to US\$54.222.634). The issue price of the shares in the Company's public offering was set at PLN 27 per share. The Company raised a total gross proceeds of PLN153.090.000 (equivalent to US\$54.389.456) from the public offering. Share issue expenses of US\$4.165.101 were deducted from the share premium reserve.

Listing of the Company to the Warsaw Stock Exchange

During the year 2010, the Board of Directors of the Company resolved to proceed with the initial public offering of 5.670.000 new ordinary shares of the Company and the application for the admission of the entire issued share capital of of the Company, including the Offer Shares to trading on the regulated market of the Warsaw Stock Exchange.

18. Borrowings

Balance at 30 June/31 December 76.780.601 75.241.008 2020 2019 US\$ US\$ Current borrowings 76.780.601 Loans from subsidiaries (Note 21.2) - Non-current borrowings - Loans from subsidiaries (Note 21.2) 75.241.008 Total 76.780.601 75.241.008	Balance at 1 January Repayments Interest payable	2020 US\$ 75.241.008 - 1.539.593	2019 US\$ 79.904.412 (7.759.510) 3.096.106

NOTES TO THE FINANCIAL STATEMENTS For the period from 1 January 2020 to 30 June 2020

18. Borrowings (continued)

Maturity of borrowings:

	2020	2019
	US\$	US\$
Within one year	76.780.601	-
Between one and five years	-	75.241.008
	76.780.601	75.241.008

The exposure of the Company to liquidity risk in relation to loans and borrowings is reported in note 2 to the financial statements.

19. Trade and other payables

	2020	2019
	US\$	US\$
Accruals	17.357	40.665
Other creditors	-	1.805
	17.357	42.470

The exposure of the Company to liquidity risk in relation to financial instruments is reported in note 22.2 to the financial statements.

20. Current tax liabilities

	2020	2019
	US\$	US\$
Corporation tax	375.548	375.547
Special contribution for defence	112.211	112.211
	487.759	487.758

The above amounts are payable within one year.

21. Related party transactions

The Company is controlled by Mr. Iurii Zhuravlov, who holds directly 74,01% of the Company's share capital. The remaining 25,99% of the shares is widely held.

NOTES TO THE FINANCIAL STATEMENTS

For the period from 1 January 2020 to 30 June 2020

21. Related party transactions (continued)

The transactions and balances with related parties are as follows:

21.1 Loans to own subsidiaries (Note 13)

	2019
US\$	US\$
68.201.890	64.565.424
68.201.890	64.565.424
	2020

During 2010, the Company has entered into several loan agreements with subsidiary company PE Agricultural Production Firm Agro for a total amount of US\$20.000.000. The loans bear interest at a rate of 10% per annum and expired in 31 July 2014. During 2014 the two parties agreed to postpone the repayment date.

Additionally, during the same period (2010), the Company has entered into several loan agreements with subsidiary company PE Agricultural Production Firm Agro for a total amount of US\$65.000.000. The loans bear interest at rates of 2,5% , 5% and 8% per annum. During 2019 year, the Company has re-negotiated maturity of the loan to 31 December 2021.

On 19 June 2019, the Company entered into an additional loan agreement with PE Agricultural Production Firm Agro, were the Company makes available a loan facility of up to US\$5.000.000. The loan carries interest at the rate of 2.5% and is due for repayment no later than 31 December 2024. As of the date of these financial statements a total of US\$3.000.000 has been disbursed.

21.2 Loans from own subsidiaries (Note 18)

	2020	2019
	US\$	US\$
Agroton BVI Limited	76.780.601	75.241.008
	76.780.601	75.241.008

On 25 July 2011 the Company has entered into a loan agreement with its subsidiary company Agroton BVI Limited amounting to US\$10.000.000. During 2012 the amount of the loan was extended to US\$60.000.000. The loan was originally provided interest free. From 1 January 2013 onwards the loan bears interest at a rate of 6% per annum and with expiry date on 1 January 2020. On 28 December 2019, the maturity of loan was extended to 1 January 2021.

22. Contingent liabilities

The Company had no contingent liabilities as at 30 June 2020.

23. Events after the reporting period

Late in 2019 news first emerged from China about the COVID 19 (Coronavirus). The situation at year end, was that a limited number of cases of an unknown virus had been reported to the World Health Organisation. In the first few months of 2020 the virus had spread globally and its negative impact has gained momentum. This is still an evolving situation at the time of issuing these financial statements. The specific effects cannot be assessed at its early stages, but actions will be taken when appropriate to ensure operations and performance are not disturbed.

Other than the above there were no material events after the reporting period, which have a bearing on the understanding of the financial statements.