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.
Goodwill acquired through business combination is allocated to Shenzhen EDA which was regarded as a cash-generating unit (the “Shenzhen EDA CGU”).
Financial Information · p. 386
During the Track Record Period, our Group has engaged PG Advisory, an independent third party valuer, to perform valuations for the purpose of assessing the recoverable amounts of Shenzhen EDA CGU for FY2021.
Financial Information · p. 386
The terminal growth rate was estimated to be 3% as of December 31, 2021 and 2022 and 2.3% as of December 31, 2023 which has taken into consideration the prevailing industry practice.
We recognized the goodwill from the acquisition of our online education business in 2020.
Financial Information · p. 472
The recoverable amount of the CGU is determined based on fair value less cost of disposal. Fair value is the price that would be received to sell the CGU in an orderly transaction between market participants at the measurement date. The pre-tax discount rate was 21% as of December 31, 2021.
Financial Information · p. 473
The decrease from RMB130.7 million in 2021 to nil in 2022 was due to our disposal of online education business. It remained nil as of December 31, 2023.
Based on the results of the impairment assessments, no impairment loss on the goodwill relating to Lianlian Yintong was recognized during the Track Record Period.
Financial Information · p. 392
A reasonably possible change in key parameters would not cause the carrying amount of the cash generating units (CGU) to exceed its recoverable amount.
The recoverable amounts of our relevant CGUs, namely, Daxing Migao and Baoqing Migao, have been determined based on value in use calculations. These calculations use cash flow projections based on financial budgets approved by our management covering a 5-year period, and pre-tax discount rate of 18%.
Financial Information · p. 367
Based on the sensitivity test performed, no material impairment issue was noted. The headroom of Baoqing Migao CGU as at 31 March 2023 and 30 November 2023 is not less than 22%.
The recoverable amount of each cash generating unit ("CGU") has been assessed by an independent valuer, Asia-Pacific Consulting and Appraisal Limited, and determined based on value-in-use ("VIU") calculation.
Financial Information · p. 298
Based on the result of the assessment, we determined that the recoverable amounts of all CGU are higher than the corresponding carrying amounts as of December 31, 2020, 2021, 2022 and June 30, 2023.
Financial Information · p. 299
The headroom of each CGU that was subject to impairment assessment at the end of each reporting period is not less than 9.5% of the respective carrying amount during the Track Record Period.
Based on the results of the impairment assessments, no impairment loss on the goodwill was recognized as at December 31, 2022 and June 30, 2023.
Financial Information · p. 497
The headroom was less than 10% of the carrying amount of Shanghai UBJ and Jiangsu Tianhui respectively due to the fact that it has not been one year since they were acquired and the recoverable amount of Shanghai UBJ and Jiangsu Tianhui were close to the fair value acquired at the acquisition date.
Financial Information · p. 498
Had the estimated revenue growth rates during the forecast period been 100 basis points lower, the recoverable amount of Shanghai UBJ would decrease by RMB5.0 million and RMB3.2 million as of December 31, 2022 and June 30, 2023, respectively, and the recoverable amount of Jiangsu Tianhui would decrease by RMB2.0 million and RMB2.1 million as of December 31, 2022 and June 30, 2023, respectively.
We recorded a goodwill of approximately RMB144.7 million, RMB144.7 million, RMB144.7 million, RMB144.7 million and RMB144.7 million as at 31 December 2020, 2021 and 2022, 30 June 2022 and 30 June 2023, respectively.
Financial Information · p. 403
Goodwill resulting from the business combinations has been allocated to Shenzhen Global Link as a single cash-generating unit.
Financial Information · p. 403
The recoverable amounts of the CGU Shenzhen Global Link are estimated to exceed its carrying amounts by approximately RMB70,618,000, RMB48,592,000, RMB61,955,000, and RMB76,408,000 at 31 December 2020, 2021, 2022 and 30 June 2023, respectively.
As of December 31, 2020, 2021 and 2022 and May 31, 2023, we recorded goodwill of nil, RMB75.2 million, RMB75.2 million and RMB75.2 million, respectively.
Financial Information · p. 290
The headroom calculated based on the recoverable amounts deducting the carrying amount of the CGU – Changchun Jinyanhui as of December 31, 2021 and 2022 and May 31, 2023 was RMB1.1 million, RMB3.9 million and RMB4.8 million, respectively.
Financial Information · p. 292
No impairment loss of goodwill was recognized in 2021, 2022 and the five months ended May 31, 2023.
Our goodwill arose from the acquisition of Guangdong Wizagricultural Science & Technology Co., Ltd. The cost and carrying amount of our goodwill was RMB14.7 million as at each of the dates of 31 December 2020, 2021 and 2022 and 31 May 2023.
Financial Information · p. 385
As at 31 December 2020, 2021 and 2022 and 31 May 2023, these calculations used cash flow projections based on financial budgets approved by management covering a five-year period and cash flows beyond the five-year period are extrapolated using an estimated weighted average growth rate of 0%.
Financial Information · p. 385
As a result of the above impairment tests, the directors of the Company are of the view that a reasonably possible change in a key assumption on which management has based its determination of the CGU’s recoverable amount would not cause the CGU’s carrying amount to exceed its recoverable amount as at 31 December 2020, 2021 and 2022 and 31 May 2023.
Our goodwill of RMB15.0 million primarily resulted from the acquisition of 51% equity of Shanxi Ningyang Energy Co., Ltd. ("Shanxi Ningyang") from two independent third parties on April 3, 2018.
Financial Information · p. 525
The terminal growth rate of the cash flow forecast adopted in the following years is 0% for prudence sake.
Financial Information · p. 525
Based on the results of the impairment testing of goodwill, in the opinion of our management of the Group, no impairment provision is considered necessary for our Group's goodwill as of December 31, 2020, 2021 and 2022 and June 30, 2023.
The recoverable amount of the Payload & Linker Unit has been determined based on a value in use calculation, which uses cash flow projections based on financial budgets approved by our management covering a five-year period.
Financial Information · p. 332
As of June 30, 2023, the management was not aware of any significant adverse changes on the Payload & Linker Unit, which indicates that the carrying amount of the Payload & Linker Unit exceeds the recoverable amount.
Financial Information · p. 333
Our management believes that any reasonably possible change in any of these assumptions would not result in impairment.
We recognized goodwill of nil, nil, RMB138.0 million and RMB138.0 million as of December 31, 2020, 2021 and 2022 and April 30, 2023, respectively.
Financial Information · p. 312
The VIU is determined by applying discounted cash flow model on pre-tax cash flow projections based on a five-year financial budget approved by the management.
Financial Information · p. 312
In the opinion of our Directors, any reasonably possible change in the key assumptions on which the recoverable amount is based would not cause the carrying amount of the Luyi Chengming’s CGU to exceed its recoverable amount.
Our goodwill decreased significantly from RMB297.9 million as of December 31, 2020 to RMB14.4 million as of December 31, 2021, primarily due to the deconsolidation of Mengtian Dairy in 2021.
Financial Information · p. 425
That calculation uses cash flow projections based on the financial budgets approved by Mengtian Dairy's management covering a 5-year period, and pre-tax discount rate of 14.18% as of December 31, 2020.
Financial Information · p. 426
As of December 31, 2020 and 2021, our management determined that there was no impairment for the Yoplait China cash-generating unit, and the recoverable amount exceeds the carrying amount by RMB91.8 million and RMB39.5 million, respectively.
We did not record goodwill in 2020 and recorded a goodwill of RMB42.5 million as of December 31, 2021, due to the acquisitions of (i) a 100% interest in Guangzhou Chichi in September 2021; (ii) a 51% interest in Hainan Zhangwan in March 2021; and (iii) a 51% interest in Guangzhou Bajiuyou in June 2021.
Financial Information · p. 446
The recoverable amounts of the cash-generating unit 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 management.
The goodwill balance mainly arose from the acquisitions of Guangzhou Jianxin on March 31, 2021, Ideal Technology on June 30, 2021 and EpicHust on June 30, 2022, amounting to RMB94.1 million, RMB165.6 million and RMB76.1 million, respectively.
Financial Information · p. 313
The estimated recoverable amount of the CGU of Guangzhou Jianxin exceeded its carrying amount by approximately RMB34,180,000, RMB89,429,000 and RMB126,465,000 as of December 31, 2021 and 2022 and March 31, 2023, respectively, and management therefore concluded such goodwill was not impaired.
Financial Information · p. 314
The estimated recoverable amount of the CGU of EpicHust exceeded its carrying amount by approximately RMB3,980,000 and RMB7,670,000 as at December 31, 2022 and March 31, 2023, respectively, and management therefore concluded such goodwill was not impaired.
On 31 December 2020, our subsidiary, Shanghai Yangman Consulting Co., Ltd. acquired 64.61% equity interests in Xi'an Jushuohua Automobile Technology Co. Ltd. ("Xi'an Jushuohua") from a third party.
Financial Information · p. 385
The recoverable amounts of the CGU have been determined based on a value in use calculation using cash flow projections from financial budgets approved by senior management covering a 5-year period.
Financial Information · p. 385
We perform the sensitivity analysis based on the assumption that revenue amount or terminal value or the discount rate has been changed.
The carrying amount of goodwill allocated to Shanghai Sijin cash-generating unit remained stable at RMB8.6 million as of December 31, 2020, 2021 and 2022 and April 30, 2023.
Financial Information · p. 391
Our management believes that any reasonably possible change in the key assumptions of the value-in-use calculation would not cause the carrying amount to exceed recoverable amount of the Shanghai Sijin cash-generating unit.
Financial Information · p. 391
Our Directors were of the opinion that there was no impairment provision as of April 30, 2023.
Goodwill of RMB14,348,000 and RMB11,343,000 was generated from the acquisition of Shangrao Adicon and Jiangxi Jince on February 28, 2021 and goodwill of RMB54,111,000 was generated from the acquisition of Henan Adicon on May 31, 2022.
Financial Information · p. 270
Based on the result of impairment assessment, there was no impairment as of December 31, 2022.
Financial Information · p. 271
Our management has performed sensitivity test by decreasing 1% of expected revenue, decreasing 1% of terminal growth rate or increasing 1% of pre-tax discount rate, with all other assumptions held constant.
Our intangible assets amounted to RMB1.3 billion, RMB1.3 billion and RMB1.2 billion as of December 31, 2020, 2021 and 2022.
Summary · p. 15
When the foregoing key assumptions are applied in the impairment testing, as of December 31, 2020, 2021 and 2022, the headroom, which is the excess of the recoverable amount of a CGU over the carrying amount of that CGU, of our Group’s CGUs containing goodwill for the periods presented are RMB1,603.9 million, RMB3,385.9 million and RMB4,033.9 million, respectively.
Financial Information · p. 367
Based on the results of the impairment assessment, our Directors concluded that no impairment on goodwill has to be recognized as of the respective balance sheet dates.