Given the losses incurred in 2024 and 2025, the CGU of Huzhou Kunlun Yienke Battery Materials Co., Ltd., had the indicator of impairment.
Financial Information · p. 236
Given the delayed construction in 2025, the CGU of Changxing Kunlun New Materials Co., Ltd., had the indicator of impairment.
Financial Information · p. 236
The CGU recoverable amount has been determined based on a value in use calculation using cash flow projections based on financial budgets covering the remaining useful life of non-financial assets approved by the management.
In 2023, we recognised an impairment loss of RMB3.19 million to write down the carrying amount of our right-of-use asset in respect of the leasehold land to its recoverable amount.
Financial Information · p. 221
With respect to our other non-financial assets, our Directors considered that our operating losses were within expectations during our rapid growth stage and concluded that no impairment indicators existed.
As of December 31, 2023, 2024 and 2025 and June 30, 2026, the carrying amount of our goodwill was RMB730.1 million, RMB500.4 million, RMB500.4 million and RMB500.4 million, respectively.
Financial Information · p. 247
The decrease in 2024 was primarily due to goodwill impairment recognized based on impairment testing results, comprising (i) impairment of RMB55.0 million and RMB50.1 million for Banner Dairy and Banner Animal Husbandry, respectively, tested as of June 30, 2024 due to their underperformance against expectations; and (ii) impairment of RMB23.1 million and RMB101.4 million for Sikeqi and its subsidiaries and LESSON Dairy and its subsidiaries, respectively, recognized in the annual impairment tests as of December 31, 2024 due to their underperformance against expectations.
Financial Information · p. 247
The recoverable amount of each asset group is determined based on the present value of its estimated future cash flows, with a forecast period of five years.
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.
Our impairment losses on non-financial assets were nil, RMB29.2 million and RMB86.8 million in 2023, 2024 and 2025, respectively, and nil in each of the three months ended March 31, 2025 and 2026.
Financial Information · p. 170
Our impairment losses on non-financial assets increased by 196.9% from RMB29.2 million in 2024 to RMB86.8 million in 2025, primarily due to impairment losses on property, plant and equipment of RMB80.6 million and impairment losses of RMB6.3 million recognized on right-of-use assets in 2025.
Such change was primarily due to the increase in impairment loss on property, plant and equipment from RMB8.6 million in 2023 to RMB351.0 million in 2024.
Financial Information · p. 226
Our impairment loss on property, plant and equipment in 2024 was mainly related to the impairment of a production line for certain smartphone camera modules which we anticipated limited future demand, while that in 2025 was mainly related to certain production equipment;
Financial Information · p. 226
We recorded other loss of RMB42.3 million in 2024 and other income of RMB163.5 million in 2025.
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.
For the purposes of impairment review, the recoverable amounts of CGU or group of CGUs are determined based on value in use (“VIU”) calculations by using the discounted cash flow method.
Financial Information · p. 251
This impairment arose as a result of significant declines in product prices and profit margins during 2023, driven by overall weak market demand and intensified supply competition.
Financial Information · p. 253
The Management of the Group has assessed that any reasonably possible changes in any of the key assumptions would not result in an impairment provision of goodwill of Suzhou InnoLight Group and Chengdu Tsuhan in 2024 and 2025.
Our goodwill decreased from RMB85.2 million as of December 31, 2023 to RMB70.5 million as of December 31, 2024, and further to RMB49.0 million as of December 31, 2025 primarily attributable to the impairment as a result of the underperformance of our subsidiary, Dongguan AFMING.
Financial Information · p. 202
Based on the results of the assessment, impairment loss amounted to RMB18,298,000 was recognized on the relevant goodwill of this CGU during the year ended December 31, 2023, which arose from this CGU’s underperformed results.
Financial Information · p. 203
If the revenue growth rate for each year during the forecast period used in value-in-use calculation had been decreased by 1%, the estimated recoverable amount would have been reduced and a further impairment of goodwill of approximately RMB6.0 million would be recognized.
Our impairment losses on property, plant and equipment significantly increased from RMB12.8 million in 2024 to RMB64.0 million in 2025, primarily because certain assets relating to our self-owned battery-swapping stations had lower expected recoverable amounts as a result of our strategic optimization of the deployment of such stations.
Financial Information · p. 202
In view of the unfavorable future prospects of battery-swapping business in certain cities, our Group’s management estimated the recoverable amount of each such CGU based on fair value less cost of disposal or the value-in-use calculations, which is higher, with the assistance of Jones Lang LaSalle Corporate Appraisal and Advisory Limited.
Intangible assets increased by 74.4% from HK$313.1 million as of March 31, 2025 to HK$546.0 million as of March 31, 2026, primarily due to the acquisitions of Tin Hee Tong, Kenford Medical, King Pui and Siulun Medheart, leading to increased balances of goodwill and trademarks.
Financial Information · p. 233
We estimate the recoverable amount of these intangible assets annually in accordance with HKFRS Accounting Standards to determine whether or not there is any indication of impairment.
Our goodwill decreased from RMB1,674.7 million as of December 31, 2023 to RMB1,518.8 million as of December 31, 2024, and further decreased to RMB1,495.9 million as of December 31, 2025, primarily due to the impairment provision in relation to our acquired subsidiaries.
Financial Information · p. 232
Except for the CGU of Yonyou Government Affairs and its subsidiaries in 2024, and the CGU of Beijing Dianju Information Technology Co., Ltd. in 2025, no reasonably possible change in key assumptions would cause the carrying amount of any other CGU to exceed its recoverable amount.
Our other intangible assets increased from RMB3,617.9 million as of December 31, 2023 to RMB4,064.3 million as of December 31, 2024, primarily due to the increase in self-developed software copyrights resulting from our R&D initiatives.
Financial Information · p. 233
Management also performed sensitivity analyses by reducing the expected gross margin by 1% or increasing the pre-tax discount rate by 2%, while holding other assumptions constant.
We recorded impairment losses on goodwill, intangible assets and assets held-for-sale of RMB0.2 million and RMB40.0 million in 2023 and 2024, respectively. In 2025 and the three months ended March 31, 2025 and 2026, no impairment was recognized on goodwill, intangible assets or assets held-for-sale.
Financial Information · p. 184
Our goodwill decreased substantially from RMB28.2 million as of December 31, 2023 to RMB1.3 million as of December 31, 2024, primarily due to the recognition of an impairment loss on goodwill of RMB27.0 million.
Financial Information · p. 194
These impairment losses were resulted from certain one-off events which are non-recurring in nature.
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 acquired through business combinations is allocated to the following cash-generating units for impairment testing:
Financial Information · p. 241
Our other intangible assets decreased by 19.4% from RMB462.2 million as of December 31, 2023 to RMB372.5 million as of December 31, 2024, primarily due to impairment losses and amortization recognized on our patent assets.
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.
The headroom measured by the excess of the recoverable amount over the carrying amounts of the CGU of Yellow River Delta Thermal as of December 31, 2023, 2024 and 2025 are RMB985.9 million, RMB191.8 million and RMB524.3 million, respectively.
Financial Information · p. 218
The headroom measured by the excess of the recoverable amount over the carrying amounts of the CGU of Binhua New Materials as of December 31, 2023, 2024 and 2025 are RMB394.7 million, RMB20.7 million and RMB76.6 million, respectively.
Financial Information · p. 219
Our Directors are of the opinion that, except for the CGU of the Binhua New Materials, a reasonably possible change in a key parameter will not cause the carrying amount of the relevant CGU to exceed the respective recoverable amounts as of December 31, 2023, 2024 and 2025.
The carrying amount of our intangible assets increased continuously during the Track Record Period, from RMB192.3 million as of December 31, 2023, to RMB288.9 million as of December 31, 2024, and to RMB355.4 million as of December 31, 2025.
Financial Information · p. 251
This increase was primarily attributable to the continuous capitalization of development costs related to the clinical trials of our rFSAV candidate, reflecting the progress of patient enrollment and clinical trial activities.
Financial Information · p. 251
This accounting policy can lead to volatility in our reported net income, as the timing of capitalization versus expensing can vary significantly from period to period based on the specific stage and progress of our development projects.