Hong Kong IPO disclosure precedents · 44 companies, 44 items
Actual impairment losses recognized against goodwill of specific cash-generating units due to underperforming acquisitions, declining revenue, unfavorable clinical or business developments, including partial write-downs, full impairment or goodwill reduced to zero.
Goodwill is not subject to amortization and is tested for impairment annually, or more frequently if events or changes in circumstances indicate that they might be impaired.
Financial Information · p. 186
The goodwill represented to the CGU attributed from Suzhou RF is RMB126.1 million, RMB89.3 million and RMB20.1 million as of December 31, 2023, 2024 and 2025, respectively.
Financial Information · p. 213
The following table sets out the key assumptions for these CGUs that have goodwill allocated to them, where the group used five-year period as the projection period for the cash flow forecast.
Our goodwill slightly decreased to RMB2,094.6 million as of December 31, 2025, primarily because we recognized goodwill impairment of approximately RMB57.9 million relating to certain acquired businesses, the goodwill of which was relatively small in scale and the related impairment was not material to our consolidated financial statements.
Financial Information · p. 191
Impairment testing involves estimating the value in use of the cash-generating units (“CGU”) to which goodwill has been allocated.
Driven by the rapid development of our proprietary brands such as LYCOCELLE and FineNutri, we made a strategic adjustment in 2024.
Financial Information · p. 192
As of December 31, 2024, according to our management’s estimation of the recoverable amount of OASIS BEAUTY CGU, which was calculated based on its value-in-use, an impairment of RMB9.2 million was recognized, resulting in a reduction in the carrying amount of goodwill of OASIS BEAUTY CGU to zero.
Financial Information · p. 192
If the expected pre-tax discount rate had been 5% higher than management estimates as of December 31, 2023, the recoverable amount calculated would be lower than the carrying amount by approximately RMB0.5 million.
As of December 31, 2023, 2024 and 2025, our goodwill balances were RMB242.8 million, RMB202.1 million and RMB137.9 million, respectively. These decreases were due to impairments resulting from the general downturn in the real estate industry.
Financial Information · p. 252
Our other intangible assets further increased to RMB6,254.9 million as of December 31, 2025, mainly attributable to the consolidation of Afari Intelligent Drive.
As of December 31, 2025, the recoverable amount of Hangzhou Meijian CGU (including goodwill and intangible assets) is RMB7,464,000 lower than its carrying amount as the business of Hangzhou Meijian CGU will be gradually phased out due to the business decision made by the Directors of our Company in second half of 2025.
Financial Information · p. 250
The forecast revenue used in the value-in-use calculations as of December 31, 2025 was based on the revenue generated from the remaining contract term of existing subscription orders of Meijian 2D business, assuming no renewals or new orders would be obtained in the forecast period.
Financial Information · p. 250
Reasonably possible changes in key assumptions would not lead to impairment as of December 31, 2023 and 2024.
The carrying amount of the Fion unit which belonged to the Handbags segment was impaired by RMB39.4 million, RMB176.8 million and RMB171.2 million during the years ended 31 December 2023, 2024 and 2025, respectively.
Financial Information · p. 239
The recoverable amounts of the cash-generating units have been determined based on a value in use calculation using cash flow projections based on financial budgets approved by senior management covering a five-year period for all units.
Our goodwill decreased from RMB6.3 million as of December 31, 2023 to RMB0.7 million as of December 31, 2024.
Financial Information · p. 237
The impairment was attributable to the decrease in customers’ demands and selling prices of the technological iteration of precision instrument equipment of Suzhou Yoke.
Financial Information · p. 237
If the compounded revenue growth rates decreased from 3.8% to 3.6% or the pre-tax discount rate increased from 10.7% to 13.6%, the Suzhou Yoke’s cash-generating’s recoverable amount would be equal to its carrying value as of December 31, 2025.
Our net other gains decreased by 86.2% from RMB69.7 million in 2024 to RMB9.6 million in 2025, primarily attributable to (i) an increase of RMB30.6 million in impairment losses on goodwill in relation to Zhejiang Towin Automotive Parts Co., Ltd. (浙江拓為汽車部件有限公司) and Suining Tuopu Automotive Chassis System Co., Ltd. (遂寧拓普汽車底盤系統有限公司) and (ii) a decrease of RMB21.9 million in gains on bargain purchase due to the one-off gains from acquisition of equity interest in Ningbo Borgers in 2024.
Financial Information · p. 197
We test a CGU to which goodwill has been allocated for impairment annually, and whenever there is an indication that the unit may be impaired.
Financial Information · p. 186
Impairment losses on goodwill | (6,059) | (1,080) | (31,702)
Our goodwill decreased from RMB214.7 million as of December 31, 2023 to RMB200.4 million as of December 31, 2024, primarily due to management recognized an impairment loss of RMB14.3 million based on their estimation of the recoverable amount of Chenzhou Zhonggui Technology Co., Ltd.
Financial Information · p. 249
We test annually whether goodwill has suffered any impairment in accordance with the accounting policy stated in note 3.23 to the Accountants’ Report set out in Appendix I to this document.
We recorded impairment losses on goodwill of RMB344.9 million in 2024, which was primarily attributable to the underperformance of certain subsidiaries driven by reduced demand from specific downstream sectors, including heavy industry.
Financial Information · p. 307
Accordingly, an impairment loss fully allocated to CGU of RMB203.6 million was recognized in profit or loss for the year ended December 31, 2024.
Financial Information · p. 355
The recoverable amounts of the respective CGUs are determined based on value-in-use calculation. We engaged independent professional valuers to assist with the calculations.
Our goodwill arose from our acquisition of Shenzhen Orbit and CYG ELECTRONICS. The cost of our goodwill remained unchanged at RMB694.8 million as of December 31, 2022, 2023, 2024 and September 30, 2025.
Financial Information · p. 249
These decreases were primarily due to the recognition of impairment losses of RMB28.7 million for 2023 and RMB36.5 million for 2024. We incurred such impairment losses because the recoverable amount based on the value-in-use of the cash-generating unit of Shenzhen Orbit was lower than its carrying amount.
Financial Information · p. 250
The recoverable amounts of the CGUs are determined based on value-in-use calculations based on cash flow forecasts derived from the estimated future cash flows covering a 5-year period and with the beyond budgeted period using zero growth rate approved by the directors of the Company.
The carrying amounts of goodwill as of December 31, 2022, 2023 and 2024 and October 31, 2025 were RMB12,924,000, RMB153,963,000, RMB74,323,000 and RMB12,924,000, respectively.
Financial Information · p. 333
And due to the intense market competition during the second half of 2025, the business growth of
Financial Information · p. 335
Accordingly, the Group recognised an impairment provision of approximately RMB79,640,000 for the year ended December 31, 2024 and RMB61,399,000 for the ten months ended October 31, 2025 against the carrying amount of goodwill relating to Rayleign CGU.
In FY2024 and 10MFY2025, we recognized impairment losses of RMB6.5 million and RMB1.7 million, respectively in profit or loss, to write down the carrying amount of goodwill in relation to Dongbao Bio-Tech CGU to its recoverable amount.
Financial Information · p. 316
An impairment loss of RMB11.1 million and RMB19.8 million was recognised in FY2024 and 10MFY2025, respectively, due to the unfavorable market conditions of health industry, and that the performance of cash-generating units did not meet our expectations.
Financial Information · p. 319
However, considering that the cash-generating units are operating normally, with positive gross profit margins and net profit margins, we plan to continue the operation of the related businesses and continue to conduct transactions with relevant customers.
We recorded an impairment loss on goodwill of RMB241.5 million in 2022 and RMB373.4 million in 2023, because Silead would not meet the original expected business results attributable to the delay in the commercial production of certain customers’ products based on assessments.
Financial Information · p. 262
Our management considered that attributable to the delay in the commercial production of certain customers’ products which resulted in the SiLead CGU not meeting the original expected business results, and based on the above assessments, concluded that impairment losses of RMB241,491,000 and RMB373,372,000 were required at December 31, 2022 and 2023, respectively, and such losses were recognised in the consolidated statements of profit or loss for the years ended December 31, 2022 and 2023, respectively.
Financial Information · p. 289
We perform annual impairment tests on goodwill at the end of the reporting year.
Our goodwill decreased from RMB3.9 billion as of December 31, 2023 to RMB3.6 billion as of December 31, 2024, primarily due to the impairment losses of RMB237.5 million we recorded for our display solutions as the recovery of the display ICs market fell short of our expectation.
Financial Information · p. 332
Impairment reviews on the goodwill has been conducted by us as of December 31, 2022, 2023 and 2024 according to IAS 36 “impairment of assets”.
Financial Information · p. 333
In addition, as of December 31, 2024, an impairment loss of RMB237.5 million was recognized, as the carrying amount exceeded its recoverable amount.
Our goodwill remained stable at RMB417.8 million as of December 31, 2022, 2023 and 2024 and June 30, 2025.
Financial Information · p. 339
Our Directors determined impairment of goodwill directly related to ICMALL amounting to RMB254.3 million in 2022.
Financial Information · p. 340
Based on the goodwill impairment test, the headroom for the cash-generating unit amounted to RMB27,731 million, RMB38,007 million and RMB38,330 million, which are significantly higher than its respective carrying amount as of December 31, 2022, 2023 and 2024.
The goodwill of RMB9.9 million represents the excess of the acquisition consideration transferred and amount of controlling interests in Zhuhai Furun Technology Co., Ltd. (“Zhuhai Furun”), a provider of e-commerce ERP solutions over the fair value of the net identifiable assets acquired as at the acquisition date in July 2021 and was allocated on Zhuhai Furun.
Financial Information · p. 311
We have engaged an independent external appraiser to assist management to perform the goodwill impairment assessments.
Financial Information · p. 312
As of December 31, 2022, the recoverable amount of Zhuhai Furun is estimated to be lower than the carrying amount of the CGU.
The decrease in goodwill from RMB210.4 million as of December 31, 2023 to RMB112.9 million as of December 31, 2024 was primarily due to impairment losses of goodwill.
Financial Information · p. 298
Accordingly, goodwill allocated to the Honghe Hongbin CGU of RMB97.5 million was fully impaired and the relevant impairment loss was recognized in "provision for impairment losses" for the year ended December 31, 2024.
Financial Information · p. 299
Our Directors are of the view that, except for the Honghe Hongbin CGU, a reasonably possible change in a key parameter will not cause the carrying amount of the relevant CGUs to exceed the respective recoverable amounts as of December 31, 2022, 2023 and 2024, respectively.
In 2024, we had impairment of goodwill of US$2.9 million because (i) an impairment of goodwill of US$0.8 million of Jianian as a result of the revenue generated from Jianian for the year was lower than the previous projection due to various factors, including but not limited to, intense market competition and changes in key marketing personnel, and (ii) an impairment of goodwill of US$2.1 million of Prime Heart because of our decision not to renew Prime Heart’s existing premise lease and cease the operations of Prime Heart by the end of June 2025 due to the absence of alternative space at a reasonable pricing and staff resources to continue delivering the full range of services.
Financial Information · p. 519
As a result, our management determined the recoverable amount of the Jianian’s CGU based on value-in-use calculations to be US$383,729, which is lower than its carrying amount and an impairment loss on goodwill of US$819,759 was recognized.
Financial Information · p. 546
Considering there was still sufficient headroom based on the assessment, our management believed that a reasonably possible change in any of the key assumptions on which our management have based the determination of the recoverable amount of each CGU would not cause its carrying amount to exceed its recoverable amount.