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.
For the years ended December 31, 2022 and 2023 and for the six months ended June 30, 2024, we recognized provision for impairment loss of goodwill of RMB28.9 million, RMB72.8 million and RMB25.2 million, respectively, as the respective recoverable amounts of certain subsidiaries acquired during the Track Record Period were estimated to be lower than their respective carrying amounts.
Financial Information · p. 433
The recoverable amounts of the CGUs are determined based on value-in-use calculations based on cash flow forecasts derived from the most recent financial budgets and estimated future cash flows covering a 5-year period and with the beyond budgeted period using zero growth rate approved by our Directors.
Financial Information · p. 434
Our Directors believe that any reasonably possible changes in the key assumptions on which recoverable amount is based would not caused the carrying amount of CGU to exceed its recoverable amount.
Our net book value of goodwill decreased from RMB77.6 million as of December 31, 2021 to RMB55.2 million as of December 31, 2022, and further decreased to RMB46.8 million as of December 31, 2023 as we incurred impairment losses.
Financial Information · p. 404
Affected by the macroeconomic condition, the estimated recoverable amount of the CGU of Taimei Xinghuan was below its carrying amount and therefore provision for impairment of RMB54.1 million and RMB9.3 million was recorded for the years ended December 31, 2021 and 2022, respectively.
Financial Information · p. 405
Affected by the macroeconomic condition, the estimated recoverable amount of the CGU of Beijing Nuoming were below its carrying amount and therefore provision for impairment of RMB13.1 million was recorded for the year ended December 31, 2022.
Based on the result of impairment testing for such businesses, impairment provision of goodwill of RMB147.6 million and RMB10.8 million was recognized for the freshly brewed beverage vending machine business and karaoke booth service business, respectively, in 2020.
Financial Information · p. 471
We have engaged an independent external valuer for performing the goodwill impairment assessments as of December 31, 2019, 2020, 2021, 2022 and June 30, 2023.
Financial Information · p. 402
During the year ended December 31, 2020, goodwill impairment arose in the Group’s karaoke booth service business because people were afraid to sing in a confined space after the outbreak of COVID-19.
Our intangible assets decreased from US$1,129.2 million as of December 31, 2021 to US$963.6 million as of December 31, 2022, primarily due to (i) an one-off impairment of goodwill in 2022, and (ii) fluctuations in foreign currency exchange rates.
Financial Information · p. 382
For the groups of CGUs in China, according to management’s impairment test performed with the assistance of an independent valuer, the carrying amount exceeded relevant recoverable amount. As a result, impairment charges of goodwill amounting to approximately US$117,502,000 were recognised.
Financial Information · p. 385
As of June 30, 2023, it is unlikely that any reasonable possible changes in key assumptions would lead to impairment for our goodwill.