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.
(iii) impairment loss recognized on property, plant and equipment, which was in relation to the termination of an artificial ice rink project which was undertaken by our Group in Zhongshan, Guangdong Province, the PRC;
Financial Information · p. 227
The decrease of RMB1.2 million, or 38.4%, was primarily due to a decrease of RMB3.2 million in impairment loss recognized on property, plant and equipment, as we recognized the impairment loss resulting from the termination of an artificial ice rink project in 2023, as partially offset by an increase of RMB2.0 million in donations to a charity.
We recognized impairment loss on goodwill of RMB57.1 million in 2023 in relation to our acquisition of equity interests in Yilianwang and Mukang.
Financial Information · p. 227
We carry out our impairment test on goodwill assisted by an external valuer, to determine the recoverable amount of CGU on goodwill as of December 31, 2023, 2024 and 2025.
Financial Information · p. 241
Based on the management’s assessment result, we recognised an impairment loss of goodwill of RMB57.1 million, nil and nil for the years ended December 31, 2023, 2024 and 2025, respectively.
In view of such prolonged period of overall losses, there are indications of impairment.
Financial Information · p. 225
We performed impairment tests at each period-end on non-current assets (primarily including property, plant and equipment, right-of-use assets and intangible assets) that show indications of impairment and estimate the recoverable amount of the non-current asset.
Financial Information · p. 226
Based on the impairment test results, the carrying amount of the CGU with impairment indications did not exceed its recoverable amount based on value in use, and accordingly no impairment was recognised.
As a result, we recognized a full impairment of this affected trademark and recorded corresponding losses.
Financial Information · p. 236
As we operated at a loss during the Track Record Period, we performed impairment test at the end of each year of the Track Record Period for the cash-generating unit, whose non-current assets consist of leasehold properties, office equipment, and other intangible assets.
Financial Information · p. 236
Therefore, no impairment loss was recognized during the years ended December 31, 2023, 2024 and 2025.
In late September of 2025, we entered into a letter of intent for the proposed sale of 190 earlier-generation mining vehicles that were originally deployed for pilot testing, demonstration purposes and early-stage operational validation.
Financial Information · p. 219
Our net other losses significantly increased by RMB25.9 million from RMB7.4 million in 2023 to RMB33.3 million in 2024, primarily attributable to the increase in impairment loss recognized on property, plant and equipment as a result of our assessment of the lower value of our earlier-generation autonomous mining trucks and related equipment due to the ongoing advancement of our technologies.
Financial Information · p. 225
the increase in net loss from 2024 to 2025 was also affected by an impairment loss recognized on assets classified as held for sale of RMB118.4 million, instead of any fundamental weakening of our underlying business performance.
Our goodwill is mainly attributed to significant synergies we expect to arise after our acquisition of 55.0% equity interests in Shanxi Changjie in April 2019 and 58.17% equity interests in Hengsheng Changyun upon the acquisition's completion in August 2021.
Financial Information · p. 252
Our goodwill decreased by 60.6% from RMB38.3 million as of December 31, 2024 to RMB15.1 million as of December 31, 2025, mainly due to the recognition of an impairment loss of RMB23.2 million on the goodwill attributable to Hengsheng Changyun.
Financial Information · p. 252
As of April 30, 2026, the Directors considered that there was no significant change to the operations of Hengsheng Changyun and Shanxi Changjie, and as a result, no impairment as of April 30, 2026 was considered necessary.
In 2023, 2024 and 2025, our impairment losses on goodwill were RMB25.0 million, RMB11.6 million and RMB24.4 million, respectively.
Financial Information · p. 203
Our goodwill decreased from RMB73.5 million as of December 31, 2023 to RMB61.8 million as of December 31, 2024, and further decreased to RMB37.5 million as of December 31, 2025, primarily due to impairment losses recognized in respect of goodwill allocated to certain CGUs.
Financial Information · p. 211
Impairment testing involves estimating the value in use of the CGUs to which goodwill has been allocated.
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.
As a result, we recorded a one-off goodwill impairment of approximately RMB128.9 million in 2023, which we consider to be an exceptional and non-recurring item.
Business · p. 162
We recorded impairment loss on non-current assets of RMB128.9 million, nil and nil in 2023, 2024 and 2025, respectively.
Financial Information · p. 239
As Medo has been reduced to its recoverable amount of RMB95,000,000, any adverse change in the assumptions used in the calculation of recoverable amount would result in further impairment losses.
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.
Specifically, regarding the two distribution and promotion rights — Kapruvia and Ravicti — which generated zero revenue during the period, where our management considered it an impairment indication, the assessments are detailed below.
Financial Information · p. 225
The assessment concluded that the recoverable amount of the CGUs, calculated based on discounted future cash flows, exceeds their carrying amounts. Key assumptions in the valuation model included forecast revenue growth reflecting new product ramp-up, a discount rate of 19%, and a terminal growth rate of 2%.
Financial Information · p. 225
As of December 31, 2025, our goodwill arose from our acquisition of Dr. Dünner AG in 2023.
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.
In 2020, our Company acquired the Lovol trademark series for RMB530.2 million, with an indefinite useful life. Such intangible assets are not amortised. Our Company performs an annual impairment test on this asset.
Financial Information · p. 232
As of December 31, 2023, 2024 and 2025, the discount rates used are 15.70%, 17.86% and 18.13%.
Financial Information · p. 232
Considering that there was sufficient headroom based on the assessment, our Directors are of the view that, for the trademark rights, a reasonably possible change in the key assumptions of the cash flow projections would not cause its carrying amount exceed its recoverable amount.
We conducted impairment tests on our insurance brokerage license as of December 31, 2023, 2024 and 2025.
Financial Information · p. 298
The headroom calculated based on the recoverable amount deducting the carrying amount allocated for the CGU as of December 31, 2023, 2024 and 2025 are RMB408.2 million, RMB768.7 million and RMB496.6 million, respectively.
Financial Information · p. 299
Our Directors determined no impairment on our brokerage license was required as of December 31, 2023, 2024 and 2025 with reference to the recoverable amount.
In 2023, 2024 and 2025, our provision for impairment losses on non-current assets was RMB300.3 million, RMB177.6 million and RMB198.2 million, respectively.
Financial Information · p. 237
During the Track Record Period, we recognized certain impairment losses primarily driven by updated market forecasts and situations where the performance of certain business lines fell short of our initial expectations:
Financial Information · p. 246
At each reporting date during the Track Record Period, we perform impairment testing on goodwill. The recoverable amounts of the respective CGUs are determined based on value-in-use (“VIU”) calculations.
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.
Our impairment losses of property, plant and equipment represented impairment losses incurred for restaurants with unfavorable future prospects. In 2023, 2024 and 2025, our impairment losses of property, plant and equipment were RMB9.2 million, RMB3.5 million and RMB0.8 million, respectively, accounting for 0.4%, 0.2% and 0.0% of our total revenue in the same years, respectively.
Financial Information · p. 214
Our impairment losses of property, plant and equipment decreased from RMB3.5 million in 2024 to RMB0.8 million in 2025, primarily because we only identified a limited number of restaurants with unfavorable future prospects in 2025 based on our assessment.
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.