Our goodwill remained relatively stable at RMB1,351.4 million as of December 31, 2023, RMB1,352.9 million as of December 31, 2024 and RMB1,350.7 million as of December 31, 2025.
Financial Information · p. 174
Our management performed the impairment assessment with the assistance of an independent professional valuer.
Financial Information · p. 174
The value-in-use calculations used cash flow projections based on financial budgets approved by management covering a five-year period.
Our other intangible assets increased from RMB137.8 million as of December 31, 2024 to RMB200.5 million as of December 31, 2025, mainly due to increases in development costs in progress in connection with ^18^F-LNC1001 and ^18^F-LNC1016.
Financial Information · p. 266
We engaged an independent qualified professional valuer, Shanghai PG Advisory Co., Ltd. (“PG”), to estimate the recoverable amounts of the CGUs at the end of each year comprising the Track Record Period.
Financial Information · p. 266
The pre-tax discount rates used, ranging from 18.32% to 19.59%, respectively reflect specific risks related to ^18^F-LNC1001 and ^18^F-LNC1016.
Our impairment losses on goodwill amounted to RMB8.7 million, RMB13.6 million and RMB355.9 million in 2023, 2024 and 2025, respectively.
Financial Information · p. 205
Our impairment losses on goodwill increased significantly from RMB13.6 million in 2024 to RMB355.9 million in 2025, primarily because the operating performance of certain hospitals fell short of initial projections due to the impact of more stringent healthcare insurance payment policy adjustments and pharmaceutical and consumable price controls, which led to an impairment of the related goodwill arising from prior acquisitions of these hospitals.
Our intangible assets increased from RMB37.4 million as at 31 December 2023 to RMB62.7 million as at 31 December 2024 and further to RMB111.0 million as at 31 December 2025, mainly due to the additions of intangible assets relating to development costs incurred during the relevant years.
Financial Information · p. 223
The recoverable amount of the CGU has been determined based on a value-in-use calculation. The calculation uses cash flow projections based on the financial budgets approved by the management of our Group covering a five-year period.
Financial Information · p. 224
The discount rates used are pre-tax and reflect market assessments of the time value and the specific risks relating to the industry.
We recorded impairment losses on goodwill of RMB76.1 million in 2023, which represented an impairment in full of the goodwill arising from the acquisition of Gainsil, due to the business and financial performance of Gainsil.
Financial Information · p. 228
However, our goodwill was fully impaired during 2023, mainly because after pandemic, the slower economic recovery than expected led to a decrease in consumer purchasing power, which had negative impact to the end-user demand, leading to significant discrepancies between key assumptions and the actual.
Financial Information · p. 228
The recoverable amount of the CGU is determined based on value-in-use calculations.
As of December 31, 2023, 2024 and 2025, our goodwill amounted to RMB24.1 million, RMB24.5 million and RMB24.0 million, respectively.
Financial Information · p. 243
The key assumptions on which we have based our cash flow projections to undertake impairment testing of goodwill are (i) budgeted revenue — amounts of the budgeted sales are based on the historical data and our expectation of the future market; (ii) budgeted gross margins — the basis used to determine the value assigned to the budgeted gross margins is the average gross margins achieved in the year immediately before the budget year; and (iii) discount rate — the discount rate used is before tax and reflects specific risks relating to the relevant unit.
Financial Information · p. 243
Considering there was still sufficient headroom based on the assessment, we believe that a reasonably possible change in the above key parameters would not cause the carrying amount of the Zentel Japan cash-generating unit to exceed its recoverable amount as of December 31, 2023, 2024 and 2025.
Our property interests held for generating rental income under operating lease arrangement were measured using fair value model and were accounted for as investment properties during the Track Record Period.
Financial Information · p. 233
We had decrease in fair value of investment properties of HK$17.7 million, HK$16.6 million, HK$53.5 million, HK$47.2 million and HK$11.1 million in FY2023, FY2024, FY2025, 8MFY2025 and 8MFY2026, respectively.
Financial Information · p. 233
The fair value of our investment properties as at 31 March 2023, 2024 and 2025 and 30 November 2025 had been valued by the Property Valuer, primarily determined based on the (i) income capitalization approach, where the market rentals of all lettable units of the properties are assessed and discounted at the market yield expected by investors for the same types of properties; and (ii) direct comparison approach, which reflects recent transaction prices for similar properties adjusted for differences in the nature, location and condition of the properties under review.
We recorded net impairment losses on goodwill of RMB383.6 million, RMB187.7 million and RMB156.0 million for the years ended December 31, 2023, 2024 and 2025, respectively.
Financial Information · p. 229
Key assumptions used in the value-in-use calculations included average revenue growth rates within a five-year forecast period, terminal growth rates and pre-tax discount rates, which were determined with reference to past performance of the respective cash-generating units, management’s expectations for market development, industry forecasts and unit-specific risk factors.
Goodwill has been allocated to the cash-generating unit (‘‘CGU’’), namely eLum, and is tested for impairment annually.
Financial Information · p. 209
As of December 31, 2024 and 2025, the recoverable amount of the CGU exceeded its carrying amount by approximately RMB28.5 million and RMB34.1 million, respectively.
Financial Information · p. 210
Based on the above assessments and sensitivity analyses, the recoverable amounts remained in excess of the carrying amounts, and therefore no impairment was considered necessary.
The carrying amount of development expenditures included in our intangible assets amounted to RMB331.8 million, RMB393.1 million, and RMB414.4 million as of December 31, 2023, 2024 and 2025, respectively.
Financial Information · p. 208
The capitalization of development expenditures involves management judgement in assessing whether the technical and commercial feasibility criteria have been met.
Financial Information · p. 208
We engaged an independent valuer for annual impairment assessments over our development expenditures, based on the valuation reports of which our management perform annual impairment assessments on development expenditures.
Our impairment loss on goodwill amounted to RMB16.5 million, RMB6.8 million and RMB10.5 million for the years ended December 31, 2023, 2024 and 2025, respectively, representing 0.8%, 0.4% and 0.5% of our revenue for the respective periods.
Financial Information · p. 172
Our impairment loss on goodwill increased by 54.4% from RMB6.8 million in 2024 to RMB10.5 million in 2025, primarily resulted from an additional impairment for the goodwill of Jiaxing Najie in 2025 with reference to the goodwill impairment testing results.
Our goodwill decreased by 8.7% from RMB800.4 million as of December 31, 2024 to RMB731.1 million in 2025, primarily due to the recognition of goodwill impairment loss of RMB69.4 million of YeeHoO, for the same reasons discussed above.
Financial Information · p. 198
Sensitivity analysis indicates that the recoverable amount is sensitive to changes in key assumptions, and adverse changes, such as an increase in discount rates or a decrease in budgeted sales growth rates, would result in a reduction in recoverable amount and may lead to further impairment.
Financial Information · p. 199
The recoverable amount exceeded the carrying amount by approximately RMB532.2 million and RMB74.2 million as of December 31, 2024 and 2025, respectively, and no impairment was recognized during the Track Record Period.
our other expenses were RMB2.0 million, RMB0.1 million and RMB24.8 million for the years ended December 31, 2023, 2024 and 2025, respectively, due to a long-term asset impairment loss of RMB22.0 million recognized for our Shoulang Jiyuan facility, which showed signs of impairment due to uncertainties in gas supply from upstream suppliers as a result of the litigations with Jiyuan Junyi.
Business · p. 152
the recognition of a one-off impairment loss of approximately RMB22 million in the fourth quarter of 2025 due to the uncertainties in industrial off-gas supply from its supplier
We recorded impairment losses under property, plant and equipment of RMB42.1 million in 2024. We did not record any such impairment losses in 2023 and 2025.
Financial Information · p. 192
The impairment recognized in 2024 was related to the property, plant and equipment that could no longer be used for operations, primarily due to operational adjustments and optimization of certain facilities and equipment in connection with changes in business demand and the expansion of new business initiatives.
In 2024, we identified impairment indicators for vehicles of a certain brand due to declining market leasing and disposal prices for such vehicles.
Financial Information · p. 225
Based on the results of the impairment testing, we recognized an impairment loss of RMB51,865,000 for such vehicles in 2024, representing 78.90% of their carrying amounts.
Financial Information · p. 225
As of December 31, 2025, due to technological advancements, our management made a strategic decision to phase out the aforementioned vehicles and upgrade to more advanced vehicles for business development. We recognized an impairment loss in full of RMB16,938,000 in respect of these vehicles.
Our goodwill is recognized from our acquisition of Puxiang TCM Hospital. We recorded goodwill of RMB60.2 million, RMB60.2 million and RMB60.2 million as of December 31, 2023, 2024 and 2025, respectively.
Financial Information · p. 242
These calculations use cash flow projections based on financial budgets approved by management covering a five-year period.
Our intangible assets were RMB14.7 million, RMB22.2 million and RMB77.4 million as of December 31, 2023, 2024 and 2025, respectively.
Financial Information · p. 235
The management of the Company tests the deferred development costs which are not yet available for use for impairment at least annually, and whenever there is an indication that the deferred development costs may be impaired, by comparing their carrying amounts with their recoverable amounts.
Financial Information · p. 235
Our deferred development costs were RMB4.3 million, RMB9.4 million and nil as of December 31, 2023, 2024 and 2025, respectively.
We recorded goodwill of HKD1,292.9 million as of each of December 31, 2023, 2024 and 2025.
Financial Information · p. 177
The recoverable amount of the travel-document and related services CGU has been determined based on a value in use calculation using cash flow projections based on financial budgets covering through 2047 approved by our senior management.
Financial Information · p. 177
The discount rates applied to cash flow projections are 11.0%, 11.0% and 10.0% respectively during the Track Record Period.
During the Track Record Period, our other gains and losses, net mainly included (i) impairment losses recognized in respect of property, plant and equipment and investments in associates, (ii) (gain)/ loss on disposal of property, plant and equipment, (iii) changes in fair value of financial assets and financial liabilities at FVTPL, and (iv) modification of redemption liabilities.
Financial Information · p. 207
In 2023, we recorded significant impairments on long-term assets, as we found several impairment indications such as project underperformance.
Financial Information · p. 215
We recorded other losses of RMB26.3 million in 2024 and other gains of RMB19.8 million in 2025, primarily due to the gain on modification of redemption liabilities, which arose from the substantial modification gain in 2025 resulting from the further deferral of the redemption rights exercise date, and the decrease in the impairment losses recognized on property, plant and equipment (net), as we found several impairment indications such as project underperformance in 2024, which resulted in larger impairment losses compared with those in 2025.
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.