During the Track Record Period, we recognized impairment loss on intangible assets and goodwill of RMB72.1 million, RMB56.6 million, RMB90.9 million, nil and RMB85 thousand in 2023, 2024, 2025 and for the three months ended March 31, 2025 and 2026, respectively, primarily because certain historical acquisitions would not generate the benefits as originally expected after evaluation of the business performance.
Financial Information · 第 264 页
In particular, our goodwill decreased from RMB111.1 million as of December 31, 2023 to RMB54.5 million as of December 31, 2024 and further to nil as of December 31, 2025 and March 31, 2026 primarily attributable to impairment provisions made in accordance with valuation performed by independent third parties based on the fair value of the businesses acquired.
Financial Information · 第 276 页
Impairment review on the goodwill has been conducted by the management at each of the reporting year end.
The carrying value of our goodwill remained relatively stable at RMB348.5 million, RMB348.5 million and RMB335.6 million as of December 31, 2023, 2024 and 2025, respectively.
Financial Information · 第 226 页
The carrying amount of the Drugs CGU, which belongs to the Drugs segment, was impaired by RMB12,880,000 and RMB19,900,000 during the year ended December 31, 2025 and six months ended June 30, 2026, respectively.
Financial Information · 第 226 页
The impairment was attributable to the increasing competitive business landscape for Chinese finished medicines in Chinese Mainland.
As of December 31, 2023, due to further decrease in revenue of this CGU in 2023, an additional impairment provision of RMB49.6 million was recognized.
Financial Information · 第 243 页
Prior to the Track Record Period, an impairment of goodwill of RMB26.6 million was recognized, due to the adjustment in the commercialization of PTH products.
Financial Information · 第 243 页
The recoverable amount of this CGU has been determined based on a value in use calculation using cash flow projections based on financial budgets covering a five-year period approved by our management.
We recorded goodwill of RMB413.6 million, RMB413.6 million, RMB413.6 million and RMB383.7 million as of December 31, 2023, 2024 and 2025 and June 30, 2026, respectively, mainly in relation to our acquisition of Anew Pharmaceuticals.
Financial Information · 第 233 页
The decrease was mainly due to our impairment loss of RMB29.9 million as of June 30, 2026 in relation with the latest business and development progress of EYP-1901.
Financial Information · 第 233 页
For the six months ended June 30, 2026, the recoverable amount of the CGU is determined by our Directors with reference to the valuation report issued by an independent professional valuer based on fair value less cost of disposal, which is higher than its value-in-use.
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 · 第 247 页
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 · 第 247 页
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.
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 · 第 251 页
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 · 第 253 页
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 · 第 202 页
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 · 第 203 页
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 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 · 第 232 页
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.
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 · 第 184 页
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 · 第 194 页
These impairment losses were resulted from certain one-off events which are non-recurring in nature.
Goodwill acquired through business combinations is allocated to the following cash-generating units for impairment testing:
Financial Information · 第 241 页
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.
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 · 第 227 页
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 · 第 241 页
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.
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 · 第 252 页
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 · 第 252 页
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 · 第 203 页
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 · 第 211 页
Impairment testing involves estimating the value in use of the CGUs to which goodwill has been allocated.
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 · 第 162 页
We recorded impairment loss on non-current assets of RMB128.9 million, nil and nil in 2023, 2024 and 2025, respectively.
Financial Information · 第 239 页
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.
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 · 第 237 页
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 · 第 246 页
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 impairment losses on goodwill amounted to RMB8.7 million, RMB13.6 million and RMB355.9 million in 2023, 2024 and 2025, respectively.
Financial Information · 第 205 页
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.
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 · 第 228 页
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 · 第 228 页
The recoverable amount of the CGU is determined based on value-in-use calculations.
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 · 第 229 页
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.
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 · 第 172 页
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 · 第 198 页
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 · 第 199 页
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.