v3.26.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements
26.
FAIR VALUE MEASUREMENTS
ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:
 
Level 1
 
–
 
Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2
 
–
 
Include observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.
Level 3
 
–
 
Unobservable inputs which are supported by little or no market activity.
ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.
Assets and Liabilities Measured or Disclosed at Fair Value on a recurring basis
The Group measures certain financial instruments at fair value on a recurring basis, including available-for-sale debt investments, trading debt investments, certain derivative instruments, equity investments at fair value with readily determinable fair value, equity investments without readily determinable fair value using NAV practical expedient, investments accounted for at fair value, certain financial liability, and the 2032 Exchangeable Bonds. These fair value measurements are performed in accordance with ASC 820.
The fair values of the Group’s time deposits as disclosed are determined based on the prevailing interest rates in the markets.
The fair values of the Group’s held-to-maturity debt investments as disclosed are determined based on the discounted cash flow model using the discount curve of market interest rates.
The fair values of the Group’s short-term available-for-sale debt investments are determined using observable inputs, including quoted market interest rates for similar instruments and other market-corroborated data.
The fair values of the Group’s short-term trading debt investments are measured using quoted market prices in active markets.
The fair values of the Group’s derivative instruments of interest rate swaps are based on broker quotes.
The fair values of the Group’s equity investments in equity securities of publicly listed companies are measured using quoted market prices.
Investments accounted for at fair value are equity investments in listed and unlisted companies held by consolidated investment companies. Investments in unlisted companies and long-term available-for-sale debt investments do not have readily determinable market value and are categorized as Level 3 in the fair value hierarchy. For these investments, the Group uses a market approach based on the Group’s best estimate, utilizing inputs such as the pricing of recent rounds of financing of the investees, liquidity factors and multiples of a selection of comparable companies.
The fair values of financial liability are estimated based on the quoted market price of the underlying instrument.
The fair values of the Group’s notes payable are extracted directly from their quoted market prices.
The fair values of the convertible senior notes are classified as Level 2 or Level 3 in the fair value hierarchy. The Group carries the convertible senior notes at face value less unamortized debt discount and issuance costs on its consolidated balance sheets and presents the fair value for disclosure purposes only. For further information on the convertible senior notes, see Note 15.
 
 
Assets and liabilities measured on a recurring basis or disclosed at fair value are summarized below:
 
 
 
 
 
 
Fair value measurement or disclosure

at December 31, 2024 using
 
 
 
Total fair value at
December 31, 2024
 
 
Quoted prices in
active markets for
identical assets

(Level 1)
 
 
Significant other
observable
inputs

(Level 2)
 
 
Significant
unobservable
inputs

(Level 3)
 
 
RMB
 
 
RMB
 
 
RMB
 
 
RMB
 
 
(In millions)
 
Fair value disclosure
(i)
 
 
 
 
Cash equivalents:
 
 
 
 
Time deposits
     4,538         4,538    
Short-term investments:
        
Held-to-maturity
debt investments
     96,912         96,912    
Long-term investments:
        
Long-term time deposits and
held-to-maturity
investments
     99,069         99,069    
Notes payable, current portion
     7,982         7,982    
Convertible senior notes, current portion
     225         17       208  
Notes payable,
non-current
portion
     26,276         26,276    
Convertible senior notes,
non-current
portion
     7,697         3,932       3,765  
Fair value measurements on a recurring basis
        
Short-term investments:
        
Available-for-sale
debt investments
     5,954         5,954    
Trading debt investments
     15       15      
Other current assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative instruments
     7               7    
 
 
 
Long-term investments:
        
Equity investments at fair value with readily determinable fair value
     8,586       8,586      
Equity investments without readily determinable fair value using NAV practical expedient
(ii)
     727        
Investments accounted for at fair value
     4,381       34         4,347  
Available-for-sale
debt investments
     6,360         850       5,510  
Other
non-current
assets:
        
Derivative instruments
     607         607    
 
 
 
    
 
 
    
 
 
    
 
 
  
Total assets measured at fair value
  
 
26,637
 
  
 
8,635
 
  
 
7,418
 
  
 
9,857
 
 
 
 
    
 
 
    
 
 
    
 
 
  
Amounts due to related parties, current:
        
Financial liability
     389         389    
 
 
 
      
 
 
    
Total liabilities measured at fair value
  
 
389
 
    
 
389
 
  
 
 
 
      
 
 
    
 
 
 
 
 
 
 
 
 
 
Fair value measurement or disclosure

at December 31, 2025 using
 
 
 
Total fair value at
December 31, 2025
 
 
Quoted prices in
active markets for
identical assets

(Level 1)
 
 
Significant other
observable
inputs

(Level 2)
 
 
Significant
unobservable
inputs

(Level 3)
 
 
RMB
 
 
US
$
 
 
RMB
 
 
RMB
 
 
RMB
 
 
(In millions)
 
 
 
 
Fair value disclosure
(i)
 
 
 
 
 
Cash equivalents:
 
 
 
 
 
Time deposits
     5,286       756         5,286    
Short-term investments:
          
Held-to-maturity
debt investments
     59,570       8,518         59,570    
Long-term investments:
          
Long-term time deposits and
held-to-maturity
investments
     125,048       17,882         125,048    
Notes payable, current portion
     4,517       646         4,517    
Convertible senior notes, current portion
     1,458       208         1,458          
Notes payable,
non-current
portion:
                            
Notes payable other than 2032 Exchangeable Bonds
    36,175       5,173         36,175    
Convertible senior notes,
non-current
portion
     6,313       903         2,398       3,915  
Fair value measurements on a recurring basis
          
Short-term investments:
          
Available-for-sale
debt investments
     27,050       3,868         27,050    
Trading debt investments
     4,081       584       4,081      
Other current assets:
          
Derivative instruments
     180       26             180  
Long-term investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity investments at fair value with readily determinable fair value
 
 
 10,774
 
 
 
 1,541
 
 
 
 10,774
 
 
 
 
 
 
 
 
 
Equity investments without readily determinable fair value using NAV practical expedient (ii)
     618       88        
Investments accounted for at fair value
     4,593       657       19         4,574  
Available-for-sale debt investments
     3,220       460         336       2,885  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total assets measured at fair value
  
 
50,516
 
  
 
7,224
 
  
 
14,874
 
  
 
27,566
 
  
 
7,459
 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Amounts due to related parties, current:
          
Financial liability
     374       53         374    
Accounts payable and accrued liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative instruments
     34       5               34    
 
 
 
Notes payable, non-current portion:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2032 Exchangeable Bonds
     14,271       2,041               14,271    
 
 
 
 
 
 
    
 
 
      
 
 
    
Total liabilities measured at fair value
  
 
14,679
 
 
 
2,099
 
 
 
 
14,679
 
 
 
 
 
    
 
 
      
 
 
    
 
(i)
Fair value disclosure shows financial instruments which are not measured at fair value in the consolidated balance sheets, but for which the fair value is estimated for disclosure purposes.
(ii)
Investments are measured at fair value using NAV as a practical expedient. These investments have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet.
 
 
Reconciliations of assets categorized within Level 3 under the fair value hierarchy are as follow:
Investments accounted for at fair value:
 
 
  
Amounts
 
 
  
RMB
 
 
  
(In millions)
 
Balance at December 31, 2023
   
 
4,775
 
Additions
      159  
Disposals
      (248 ) 
Net unrealized fair value decrease recognized in earnings
      (376 ) 
Foreign currency translation adjustments
      37  
  
 
 
  
Balance at December 31, 2024
   
 
4,347
 
  
 
 
  
Additions
      398  
Disposals
      (171 )
Net unrealized fair value increase recognized in earnings
      49  
Foreign currency translation adjustments
      (49 )
  
 
 
  
Balance at December 31, 2025
   
 
4,574
 
  
 
 
  
Balance at December 31, 2025, in US$
   
 
654
 
  
 
 
  
Available-for-sale
debt investments:
 
 
  
Amounts
 
 
  
RMB
 
 
  
(In millions)
 
Balance at December 31, 2023
   
 
3,259
 
Disposals
      (85 ) 
Conversion
      2,061  
Net unrealized fair value change recognized in other comprehensive income (loss)
      174  
Accrued interest
      74  
Foreign currency translation adjustments
      27  
  
 
 
  
Balance at December 31, 2024
   
 
5,510
 
  
 
 
  
Additions
      107  
Disposals
      (1,051 )
Conversion
      (1,610 )
Net unrealized fair value change

     (114 )
Accrued interest
      70  
Foreign currency translation adjustments
      (27 )
  
 
 
  
Balance at December 31, 2025
   
 
2,885
 
  
 
 
  
Balance at December 31, 2025, in US$
   
 
413
 
  
 
 
  
 
 
Assets measured at fair value on a
non-recurring
basis
The Group measures certain
non-financial
assets on a nonrecurring basis.
For equity investments without readily determinable fair value using the measurement alternative, when there are observable price changes in orderly transactions for identical or similar investments of the same issuer, the investments are re-measured to fair value (Note 2). The non-recurring fair value measurements adjusting the carrying amount of the investment require management to estimate a price adjustment for the different rights and obligations between a similar instrument of the same issuer with an observable price change in an orderly transaction and the investment held by the Group. These non-recurring fair value measurements were measured as of the observable transaction dates. The valuation methodologies require management to consider the observable transaction price at the transaction date and other unobservable inputs (level 3) such as expected volatility and probability of exit events as it relates to liquidation and redemption preferences.
When there is impairment of equity investments without readily determinable fair value using the measurement alternative and equity method investments, the
non-recurring
fair value measurements are measured at the date of impairment. The fair values of the Group’s equity method investments in publicly listed companies are measured using quoted market prices. Estimating the fair value of investees without observable market prices is highly judgmental due to the subjectivity of the unobservable inputs (level 3) used in the valuation methodologies. The Group uses valuation methodologies, primarily the market approach, which requires management to use unobservable inputs (level 3) such as selection of comparable companies and multiples, expected volatility, discount for lack of marketability and probability of exit events as it relates to liquidation and redemption preferences, when applicable. These unobservable inputs and resulting fair value estimates may be affected by unexpected changes in future market or economic conditions.
Other
non-financial
assets, including long-lived assets, licensed copyrights and produced content, would be measured at fair value whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable.
The following table summarizes the Group’s non-financial assets held as of December 31, 2024 and 2025 for which a
non-recurring
fair value measurement was recorded during the years ended December 31, 2024 and 2025:
 
 
  
Total fair value
 
  
Quoted Prices
in Active
Markets for
Identical
Assets

(Level 1)
 
  
Significant
Other
Observable
Inputs

(Level 2)
 
  
Significant
Unobservable
Inputs

(Level 3)
 
  
Total gains (losses)
 
 
  
RMB
 
  
US$
 
  
RMB
 
  
RMB
 
  
RMB
 
  
RMB
 
 
US$
 
 
  
(In millions)
 
Fair value measurements on a non-recurring basis
  
  
  
  
  
  
 
As of December 31, 2024
  
  
  
  
  
  
 
Long-term investments
 (i)
      1,242          




       1,242        261    
Produced content monetized on its own
      74        




     74        (95 )   


As of December 31, 2025
         




       
Long-term investments
 (i)
      530        76       




       530        31       5  
Produced content monetized on its own
      47        7              47        (86 )      (12 ) 
Core asset group as of September 30, 2025
(
Note 2
)
      44,748        6,399              44,748        (16,190 )      (2,315 ) 
 
(i)
Due to declined financial performances and changes in business circumstances of certain investees, the Group recognized impairment charges of long-term investments in the consolidated statements of comprehensive income during the years ended December 31, 2024 and 2025. For equity investments without readily determinable fair value using the measurement alternative, when there are observable price changes in orderly transactions for identical or similar investments of the same issuer, the investments are
re-measured
to fair value.