Intangible Assets

12 Months Ended

Dec. 31, 2024

Disclosure of detailed information about intangible assets [abstract]

25.	Intangible assets


	Trademarks and licenses			Computer software and others			Total
	RMB’000			RMB’000			RMB’000
As of January 1, 2022
Cost		1,815,576			258,189			2,073,765
Accumulated amortization		(5,000	)		(141,202	)		(146,202	)
Impairment		(963,948	)		(64,209	)		(1,028,157	)

Net book amount		846,628			52,778			899,406

Year ended December 31, 2022
Opening net book amount		846,628			52,778			899,406
Additions		—			2,134			2,134
Disposals/Write off		(426,000	)		(756	)		(426,756	)
Impairment		426,000			(403	)		425,597
Amortization charge		—			(15,325	)		(15,325	)

Closing net book amount		846,628			38,428			885,056

As of December 31, 2022
Cost		1,389,576			253,145			1,642,721
Accumulated amortization		(5,000	)		(150,105	)		(155,105	)
Impairment		(537,948	)		(64,612	)		(602,560	)

Net book amount		846,628			38,428			885,056


	Trademarks and licenses			Computer software and others			Total
	RMB’000			RMB’000			RMB’000
As of January 1, 2023
Cost		1,389,576			253,145			1,642,721
Accumulated amortization		(5,000	)		(150,105	)		(155,105	)
Impairment		(537,948	)		(64,612	)		(602,560	)

Net book amount		846,628			38,428			885,056

Year ended December 31, 2023
Opening net book amount		846,628			38,428			885,056
Additions		—			1,503			1,503
Disposals/Write off		(537,948	)		(618	)		(538,566	)
Impairment		537,948			—			537,948
Amortization charge		—			(11,022	)		(11,022	)

Closing net book amount		846,628			28,291			874,919

As of December 31, 2023
Cost		846,628			252,527			1,099,155
Accumulated amortization		—			(159,624	)		(159,624	)
Impairment		—			(64,612	)		(64,612	)

Net book amount		846,628			28,291			874,919


	Trademarks and licenses		Computer software and others			Total
	RMB’000		RMB’000			RMB’000
As of January 1, 2024
Cost		846,628		252,527			1,099,155
Accumulated amortization		—		(159,624	)		(159,624	)
Impairment		—		(64,612	)		(64,612	)

Net book amount		846,628		28,291			874,919

Year ended December 31, 2024
Opening net book amount		846,628		28,291			874,919
Acquisition of subsidiaries		18,379		126,154			144,533
Additions		28,306		22,515			50,821
Disposals		—		(74,430	)		(74,430	)
Amortization charge		—		(39,766	)		(39,766	)

Closing net book amount		893,313		62,764			956,077

As of December 31, 2024
Cost		893,313		346,523			1,239,836
Accumulated amortization		—		(219,593	)		(219,593	)
Impairment		—		(64,166	)		(64,166	)

Net book amount		893,313		62,764			956,077

(a)	Impairment tests for intangible assets

The trademarks and licenses were intangible assets acquired in business combinations as part of the reorganization of the Group. Most of the trademarks and licenses acquired were determined to have indefinite useful life as there is no foreseeable limit to the period over which these assets are expected to generate net cash inflows for the Group.

For the purposes of impairment assessment, the recoverable amount of the trademarks and licenses with indefinite life was determined based on the higher of the fair value less cost of disposal and

value-in-use

calculations. Given there is no active market for the Group’s trademarks and licenses with indefinite life, management did the

value-in-use

calculations to determine the recoverable amounts based on discounted cash flows projections.

Based on management’s assessment on the recoverable amounts of the intangible assets, no impairment loss was recognized for the years ended December 31, 2022, 2023 and 2024. However, subsequent impairment tests may be based on different assumptions and future cash flow projections, which may result in impairment losses for these assets in the foreseeable future.

The trademarks and licenses of the Group are primarily relating to trademark rights of Puhui of RMB800.7

million. As the contractual tenor of its loan products is generally 36 months, the cash flow forecast period of Puhui was eight years based on a financial budget covering a five-year period approved by management. The key assumption used for

value-in-use

calculations of trademark rights of Puhui is as follows:

December 31,
2022

December 31,
2023

December 31,
2024

(Restated )

Revenue growth rates

-16.9% - 2.3%

-25.1% - 5.6%

-1.1% - 16.1%

Management has determined the values assigned to the above key assumption as follows:


Assumption		Approach used to determine values
Revenue growth rates		Based on recent policy and industry factors, past performances and management’s expectations of business development.

The excess of the recoverable amount of Puhui’s trademark over its carrying amount:

December 31,
2022

December 31,
2023

December 31,
2024

RMB’000

(Restated )

Excess of the recoverable amount of trademark rights of Puhui over its carrying amount

2,428,544

965,287

1,201,371

As of December 31, 2022, 2023 and 2024, the

pre-tax

discount rates applied to the cash flow projections were 21%, 20% and 20%, respectively. As of December 31, 2022, 2023 and 2024, the long-term growth rate used to extrapolate cash flow projections beyond the budget period were 2%, 2% and 2%, respectively.

While it is impracticable for the Group to estimate the impact on future periods, the following table sets forth the impact of management judgement of reasonable possible scenarios in the above key assumption, with all other variables held constant, on Puhui’s trademark rights impairment testing at the dates indicated. As shown below, the possible changes of the key parameter would not cause the carrying amount of trademark rights of Puhui to exceed its recoverable amount at the dates indicated.

Unfavourable Change

Favourable Change

As of December 31, 2022

Change in
assumption

Change in
the excess
of the
recoverable
amount of
trademark
rights of
Puhui over
its carrying
amount

Excess of
the
recoverable
amount of
trademark
rights of
Puhui over
its carrying
amount

Change in
assumption

Change in
the excess
of the
recoverable
amount of
trademark
rights of
Puhui over
its carrying
amount

Excess of
the
recoverable
amount of
trademark
rights of
Puhui over
its carrying
amount

RMB’000

(Restated)

Revenue growth rates (Gross Annual Growth Rate, “GAGR”)

-230BP

(296,243

)

2,132,301

+230BP

322,027

2,750,571

Unfavourable Change

Favourable Change

As of December 31, 2023

Change in
assumption

Change in
the excess
of the
recoverable
amount of
trademark
rights of
Puhui over
its carrying
amount

Excess of
the
recoverable
amount of
trademark
rights of
Puhui over
its carrying
amount

Change in
assumption

Change in
the excess
of the
recoverable
amount of
trademark
rights of
Puhui over
its carrying
amount

Excess of
the
recoverable
amount of
trademark
rights of
Puhui over
its carrying
amount

RMB’000

(Restated)

(Restated )

Revenue growth rates (GAGR)

-230BP

(167,050

)

798,237

+230BP

181,816

1,147,103

Unfavorable Change

Favorable Change

As of December 31, 2024

Change in
assumption

Change in
the excess
of the
recoverable
amount of
trademark
rights of
Puhui over
its carrying
amount

Excess of
the
recoverable
amount of
trademark
rights of
Puhui over
its carrying
amount

Change in
assumption

Change in
the excess
of the
recoverable
amount of
trademark
rights of
Puhui over
its carrying
amount

Excess of
the
recoverable
amount of
trademark
rights of
Puhui over
its carrying
amount

RMB’000

Revenue growth rates (GAGR)

-230BP

(171,901

)

1,029,470

+230BP

185,781

1,387,152