During the Track Record Period, we recognized impairment loss on intangible assets and goodwill of RMB72.1 million, RMB56.6 million, RMB90.9 million, nil and RMB85 thousand in 2023, 2024, 2025 and for the three months ended March 31, 2025 and 2026, respectively, primarily because certain historical acquisitions would not generate the benefits as originally expected after evaluation of the business performance.
Financial Information · p. 264
In particular, our goodwill decreased from RMB111.1 million as of December 31, 2023 to RMB54.5 million as of December 31, 2024 and further to nil as of December 31, 2025 and March 31, 2026 primarily attributable to impairment provisions made in accordance with valuation performed by independent third parties based on the fair value of the businesses acquired.
Financial Information · p. 276
Impairment review on the goodwill has been conducted by the management at each of the reporting year end.
During the Track Record Period, we recognized impairment loss on property, plant and equipment of RMB3.6 million, RMB22.0 million, RMB35.1 million, RMB9.8 million and RMB0.7 million in 2023, 2024, 2025 and for the three months ended March 31, 2025 and 2026, respectively, primarily because a number of machines and equipment within certain business units had become obsolete and ceased to be operational.
Financial Information · p. 264
At each year end, we assessed the recoverable amounts of those assets were nil and as a result the carrying amount of the machines was written down to their recoverable amount.
The carrying value of our goodwill were nil, RMB6.2 million, RMB6.2 million and RMB6.2 million as of December 31, 2023, 2024 and 2025 and June 30, 2026, respectively.
Financial Information · p. 229
Goodwill is stated at cost less accumulated impairment losses.
Financial Information · p. 229
The carrying value of our other intangible assets increased from RMB10.1 million as of December 31, 2023 to RMB177.8 million as of December 31, 2024, primarily due to an increase of RMB175.3 million in customer relationship, as a result of the Acquisition.
Our goodwill remained constant at approximately RMB437.4 million as at the end of each financial year/period during the Track Record Period in accordance with the results of our impairment testing of goodwill, as detailed in the paragraphs below.
Financial Information · p. 236
As at 31 December 2023, 31 December 2024, 31 December 2025 and 30 June 2026, based on the value-in-use calculations applying the above key parameters, the recoverable amount of the semiconductor photoresist CGU exceeded its carrying amount by approximately RMB34.1 million, RMB64.3 million, RMB415.2 million and RMB308.0 million, respectively, and the recoverable amount of the display panel photoresist CGU exceeded its carrying amount by RMB378.7 million, RMB409.4 million, RMB522.8 million and RMB493.3 million, respectively.
Financial Information · p. 237
Based on the headroom computed as presented in the table above, our management believes that any reasonably possible change in any of the key parameters would not cause the respective carrying amount of each CGU to exceed its recoverable amount and thereby result in an impairment provision of goodwill.
The carrying value of our goodwill remained relatively stable at RMB348.5 million, RMB348.5 million and RMB335.6 million as of December 31, 2023, 2024 and 2025, respectively.
Financial Information · p. 226
The carrying amount of the Drugs CGU, which belongs to the Drugs segment, was impaired by RMB12,880,000 and RMB19,900,000 during the year ended December 31, 2025 and six months ended June 30, 2026, respectively.
Financial Information · p. 226
The impairment was attributable to the increasing competitive business landscape for Chinese finished medicines in Chinese Mainland.
As of December 31, 2024, 2025 and June 30, 2026, the carrying amount of certain production machinery was reduced to the recoverable amount of RMB1.1 million, RMB0.6 million and RMB0.3 million through recognition of impairment of RMB7.5 million, RMB4.2 million and RMB2.6 million, respectively, mainly because some of our telecom transceiver production lines became obsolete in light of declines in market demand.
Goodwill arising from the acquisition has been allocated to these CGUs based on their respective business types.
Financial Information · p. 240
The transaction also resulted in the recognition of goodwill amounting to RMB146 million.
Business · p. 161
As of December 31, 2024 and 2025, the headroom calculated based on the recoverable amounts deducting the carrying amount of the Renhe Environment Technology CGU was RMB391.8 million and RMB573.8 million.
Our intangible assets saw a significant increase from RMB21.9 million as of December 31, 2023, to RMB52.8 million as of December 31, 2024, and then increased to RMB88.4 million in 2025, and further increased to RMB92.8 million as of March 31, 2026, primarily due to the capitalization of expenses in relation to our research and development activities in the respective periods.
Financial Information · p. 237
We identified indicators of impairment for non-current assets including property and equipment, right-of-use assets and intangible assets including development costs as the continuing losses position as of December 31, 2023, 2024 and 2025 and March 31, 2026.
Financial Information · p. 238
Based on the results of impairment assessment, there are no impairment losses recognized during the Track Record Period.
We recognized goodwill of RMB177.0 million as of December 31, 2025, representing the excess of the acquisition cost, including cash consideration and trade receivables, over the fair value of the identifiable net assets acquired.
Financial Information · p. 244
Based on the impairment assessment, the recoverable amount of the Champion Holdings CGU exceeded its carrying amount, including goodwill, by RMB46.1 million and RMB51.5 million as of December 31, 2025 and April 30, 2026, respectively.
Financial Information · p. 245
For the goodwill impairment test performed as of December 31, 2025, if the operating profit margin had been 8.70% lower, or the pre-tax discount rate had been 12.77% higher, or the annual revenue growth rate had been 0.50% lower, the carrying amount of the CGU would exceed its recoverable amount.
Our goodwill increased significantly from nil as of December 31, 2023 to RMB31.5 million as of December 31, 2024, further increased to RMB67.8 million as of December 31, 2025 and June 30, 2026, primarily due to business acquisitions completed during the year.
Financial Information · p. 183
Our intangible assets significantly increased from RMB6.4 million as of December 31, 2023 to RMB19.3 million as of December 31, 2024, primarily due to an increase in customer relationships, driven by the acquisition of XMSAIL and Shenzhen GoingGreen.
Financial Information · p. 183
Goodwill acquired through business combinations is allocated to six cash generating units (CGU) for impairment testing, including SZXM, ABITIO, SZ GoingGreen, Shuyou, AXIS and Newbest.
As of December 31, 2023, due to further decrease in revenue of this CGU in 2023, an additional impairment provision of RMB49.6 million was recognized.
Financial Information · p. 243
Prior to the Track Record Period, an impairment of goodwill of RMB26.6 million was recognized, due to the adjustment in the commercialization of PTH products.
Financial Information · p. 243
The recoverable amount of this CGU has been determined based on a value in use calculation using cash flow projections based on financial budgets covering a five-year period approved by our management.
With respect to deferred development costs, in 2024 and 2025, according to the impairment test, we recognized impairment loss of RMB137.1 million and RMB151.1 million, respectively, due to unsatisfactory clinical trial results.
Financial Information · p. 244
As of December 31, 2023, 2024, and 2025, and June 30, 2026, the headroom for deferred development costs in total was RMB673.5 million, RMB536.5 million, RMB824.3 million, and RMB1,217.8 million.
Financial Information · p. 244
In the opinion of our Directors, no reasonably possible changes in any of the key assumptions would cause the recoverable amounts of non-patent technologies and deferred development costs to be materially lower than the carrying amounts.
As of December 31, 2023, 2024, 2025 and April 30, 2026, our goodwill amounted to RMB868.7 million, RMB794.0 million, RMB820.2 million and RMB845.6 million, respectively.
Financial Information · p. 256
We determine whether goodwill is impaired at least on an annual basis. This requires an estimation of the value in use of the CGUs to which the goodwill is allocated.
Our intangible assets primarily consisted of (i) goodwill, and (ii) software.
Financial Information · p. 238
Impairment review on the goodwill of our Group have been conducted by the management as of December 31, 2023, 2024, 2025 and May 31, 2026, according to IAS 36 Impairment of assets.
Financial Information · p. 239
Based on the results of impairment test, for the CGUs that were not impaired during the years ended December 31, 2023, 2024 and 2025, and May 31, 2026, these recoverable amount of the CGUs is significantly above the carrying amount of our Group.
We recorded goodwill of RMB413.6 million, RMB413.6 million, RMB413.6 million and RMB383.7 million as of December 31, 2023, 2024 and 2025 and June 30, 2026, respectively, mainly in relation to our acquisition of Anew Pharmaceuticals.
Financial Information · p. 233
The decrease was mainly due to our impairment loss of RMB29.9 million as of June 30, 2026 in relation with the latest business and development progress of EYP-1901.
Financial Information · p. 233
For the six months ended June 30, 2026, the recoverable amount of the CGU is determined by our Directors with reference to the valuation report issued by an independent professional valuer based on fair value less cost of disposal, which is higher than its value-in-use.
Our intangible assets remained relatively stable at RMB2,676.7 million as of December 31, 2025 and RMB2,721.4 million as of June 30, 2026.
Financial Information · p. 231
Development costs are tested for impairment annually by comparing their carrying amount with their recoverable amounts to which the intangible asset is related.
Financial Information · p. 232
Based on the result of assessment, there was no impairment loss on the development cost during the Track Record Period.
Our goodwill amounted to RMB905.5 million, RMB905.5 million, RMB928.2 million and RMB927.8 million as of December 31, 2023, 2024 and 2025 and March 31, 2026, respectively.
Financial Information · p. 232
a decrease in the growth rate by 19.1%, 27.1%, 24.3% and 23.7% would cause the carrying amount of the cash-generating unit to exceed its recoverable amount as of December 31, 2023, 2024 and 2025 and March 31, 2026, respectively
Financial Information · p. 233
Based on the impairment assessments performed for each period during the Track Record Period, the recoverable amounts of the above-mentioned brands exceeded their respective carrying amounts, and no impairment losses were recognized.
Our intangible assets primarily include intellectual property and software use rights.
Financial Information · p. 254
For the purpose of impairment testing, our management, with the assistance of independent professional valuer, identified our Group as a single CGU.
Financial Information · p. 243
Based on the results of the assessments, as the recoverable amount of the CGU is higher than the net carrying amount, no impairment loss on property, plant and equipment or intangible assets was recognized during the Track Record Period.
We had goodwill of RMB51.1 million as at 31 December 2025 from the acquisition of Wuxi Chulei.
Financial Information · p. 221
The calculation uses cash flow projection based on financial forecast approved by management covering a 5-year period and pre-tax discount rate of 11.6%.
Financial Information · p. 221
Our intangible assets increased from RMB3.0 million as at 31 December 2023 to RMB35.3 million as at 31 December 2024, primarily due to the additions of data assets of RMB39.0 million because we began capitalising certain expenditure on commercial data resources as our data assets, which consists of the staff cost for generating data assets for generating our future revenue and it was complied with International Accounting Standards 38, Intangible Assets.
We recorded goodwill of nil, nil, RMB149.7 million and RMB149.7 million in 2023, 2024, 2025 and June 30, 2026, respectively.
Financial Information · p. 222
Management performed an impairment assessment on the goodwill as of December 31, 2025 and June 30, 2026.
Financial Information · p. 222
Based on management’s assessment on the recoverable amount of the CGU, no impairment provision was considered necessary as of December 31, 2025 and June 30, 2026.