Hong Kong IPO disclosure precedents · 99 companies, 99 items
Goodwill arising from acquisitions allocated to cash-generating units, with annual impairment testing based on value-in-use or DCF models and disclosure of key assumptions such as revenue growth, margins, discount rates and sensitivity analysis, generally with no impairment recognized.
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.
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.
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.
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.
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.
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.
Our goodwill of RMB180.2 million as of December 31, 2023, 2024, 2025 and March 31, 2026 arose from our acquisition of a 100% equity interest in Guangxi Yuning in December 2020 and was allocated to the related cash-generating unit.
Financial Information · p. 183
Based on the results of the impairment assessments, no impairment loss on goodwill was recognized during the Track Record Period.
As of December 31, 2023, 2024, and 2025 and April 30, 2026, our goodwill amounted to RMB97.1 million, RMB114.2 million, and RMB114.2 million, and RMB114.2 million, respectively.
Financial Information · p. 212
The key assumptions used in the impairment assessment include long-term revenue growth rate of 0% for cash flows beyond the five-year forecast period and discount rates that reflect the specific risks relating to the relevant industry of the cash-generating unit and the macroeconomic environment of the relevant region.
Financial Information · p. 212
Our intangible assets increased from RMB985.7 million as of December 31, 2023 to RMB1.11 billion as of December 31, 2024, primarily due to an increase in software copyright as a result of the capitalization of proprietary products upon obtaining software copyrights, partially offset by a decrease in development costs.
We recorded goodwill of RMB13.8 million, RMB13.8 million, RMB13.8 million and RMB13.8 million as of December 31, 2023, 2024, 2025 and April 30, 2026, respectively.
Financial Information · p. 219
Accordingly, the headroom calculated based on the recoverable amounts deducting the carrying amount of the Med-Logistics CGU was RMB3.6 million, RMB4.9 million, RMB9.6 million and RMB9.6 million as of December 31, 2023, 2024, 2025 and April 30, 2026, respectively.
Financial Information · p. 220
Our management has undertaken a sensitivity analysis on the impairment of goodwill of Med-Logistics CGU.
In 2023, 2024, 2025 and the three months ended March 31, 2026, our provision for impairment losses amounted to RMB165.1 million, RMB142.4 million, RMB173.2 million and RMB111.6 million, respectively.
Financial Information · p. 177
We recorded goodwill impairment of RMB0.3 million in 2025.
Financial Information · p. 177
Having considered the sensitivity analyses and the magnitude of headroom at each testing date, the Reporting Accountants and we concluded that, for all CGUs, excepted for Shanghai Xianshi CGU, as of December 31, 2023, 2024 and 2025 and March 31, 2026 and Guangzhou Zhiyuan CGU as of December 31, 2025 and March 31, 2026, no reasonably possible change in key assumptions (including a 1 percentage point adverse change to revenue growth rates or discount rates) would cause the carrying amount of any CGU to exceed its recoverable amount.
Goodwill resulting from the business combinations has been allocated to Vermes Microdispensing GmbH (“Vermes”) as a single cash-generating unit (“CGU”) (“CGU Vermes”).
Financial Information · p. 222
The recoverable amounts of the CGU Vermes are estimated to exceed its carrying amounts by approximately RMB79.4 million, RMB110.9 million and RMB204.8 million as of December 31, 2023, 2024 and 2025 respectively.
Financial Information · p. 223
In 2023, 2024 and 2025, increase in pre-tax discount rate to 17%, 18% and 21% respectively would remove the headroom for CGU Vermes.
We test for impairment of our goodwill annually at the end of the reporting period.
Financial Information · p. 229
As of December 31, 2023, 2024 and 2025, the recoverable amounts of the CGU were determined from value-in-use calculations based on cash flow projections which were based on financial forecasts covering the expected life of 5 years of the operation.
Financial Information · p. 229
The headroom measured by the excess of the recoverable amount over the carrying amount of Wingtech Other Mainland Consumer Electronics Businesses CGU was RMB52 million as of December 31, 2025.
The carrying value of our goodwill increased by 63.4% from RMB161.2 million as of December 31, 2023 to RMB263.4 million as of December 31, 2024, primarily due to our acquisition of Shanghai CZT, Cuihe Pharmacy and Shanghai ZHT.
Financial Information · p. 262
During the Track Record Period, we did not record impairment loss on our goodwill.
Financial Information · p. 262
It recorded net loss of RMB19.9 million for the year ended December 31, 2025, primarily due to the impairment loss on long-term investments in TRT Baoding, as TRT Baoding did not commenced operations and incurred substantial depreciation and amortization expenses.
Our goodwill amounted to RMB983.1 million and RMB983.1 million as of December 31, 2024 and 2025, respectively.
Financial Information · p. 234
The pre-tax discount rate applied to our CGU’s cash flow projections was 16.79% and 16.75% as of December 31, 2024 and 2025, respectively, with expected revenue annual growth rates used to extrapolate its cash flows beyond the five-year period was 5% to 32%.
Financial Information · p. 234
There was sufficient headroom in respect of the reasonably possible changes in the key parameters, and we had not identified that as reasonably possible changes in the key parameters would cause the carrying amount of the group of CGUs to exceed the recoverable amount as of December 31, 2024 and 2025.
The carrying value of our goodwill increased from RMB781.7 million as of December 31, 2024 to RMB1,932.3 million as of December 31, 2025, mainly as a result of the acquisitions of Hairology Group and FORTUNE BIO.
Financial Information · p. 240
As of December 31, 2025, based on the value-in-use calculations, the recoverable amount of Leyou CGU exceeded its carrying amount by RMB119,740,000, the recoverable amount of Fortune CGU exceeded its carrying amount by RMB43,582,000, and the recoverable amount of Hairology CGU exceeded its carrying amount by RMB127,001,000.
Financial Information · p. 240
Our management engages independent external valuers to assess the recoverable amounts of goodwill as of the end of each of the Track Record Period.
Our goodwill slightly decreased from RMB80.9 million as of December 31, 2023 to RMB78.7 million as of December 31, 2024, mainly due to the recognition of an impairment loss on the RMB2.2 million goodwill.
Financial Information · p. 194
Our management has assessed that Suzhou Qingxinfang, Changzhou Ganrui and TeraDevices Inc. were material CGUs.
Financial Information · p. 195
As disclosed above, the management has considered and assessed reasonably possible changes for the key assumptions and has not identified any instances that would cause the carrying amounts of the CGUs to exceed their recoverable amounts as of December 31, 2023, 2024 and 2025, respectively.
We had goodwill of RMB50.8 million as of December 31, 2025, attributable to our acquisition of Xinhua Mobile.
Financial Information · p. 245
If the pre-tax discount rate increased or decreased by 2.0% from 15.8%, the recoverable amount of the Xinhua Mobile AI services cash-generating unit would decrease by RMB39.2 million or increase by RMB53.0 million, respectively.
Our goodwill remained relatively stable at RMB1,351.4 million as of December 31, 2023, RMB1,352.9 million as of December 31, 2024 and RMB1,350.7 million as of December 31, 2025.
Financial Information · p. 174
Our management performed the impairment assessment with the assistance of an independent professional valuer.
Financial Information · p. 174
The value-in-use calculations used cash flow projections based on financial budgets approved by management covering a five-year period.