| Interests in equity-accounted investees |
21Interests in equity-accounted investees | | | | | | | As at December 31, | | | 2024 | | 2025 | | | RMB’000 | | RMB’000 | | | | | | Share of net assets from associates | | 38,567 | | 2,193,937 | Share of net assets from a joint venture | | — | | 13,675 | Goodwill on retaining interests in an associate | | — | | 3,279,036 | | | | | | | | 38,567 | | 5,486,648 |
The associates and the joint venture were accounted for using equity method. Unanimous agreements of all joint venture parties were required for key investments and operational decisions in the joint venture. In September 2024, the Group entered into share purchase agreements with independent third parties to acquire an aggregate of 2,668,135,376 shares in Yonghui (representing approximately 29.4% of its entire issued share capital), at a consideration amounting to RMB 6,270,118,000. The acquisition date was March 17, 2025, on which the Group began to have significant influence over Yonghui. Yonghui, which is considered a material associate of the Group, is a strategic partner of the Group engaged in retail industry and is accounted for using the equity method. Particulars of the material associate are as follows: | | | | | | | | | | | | | | | Percentage of | | | | | | | Place of | | ownership | | | | | Particulars of | | incorporation/ | | interest | | | | | issued shares | | registration and | | attributed | | | Name | | held | | business | | to the Group | | Principal activity | Yonghui Superstores Co., Ltd. (“Yonghui”) | | Ordinary shares | | Chinese Mainland | | 29.4 | % | Retail |
Notes: (i) | As at December 31, 2025, an investment in Yonghui with a carrying amount of RMB3,822,114,000 was pledged to secure certain bank borrowings (Note 22). |
(ii) | As at December 31, 2025, the fair value of investment in Yonghui based on its quoted market share price was amounted to RMB12,513,555,000. |
The following table illustrates the summarised financial information in respect of Yonghui adjusted for any differences in accounting policies and reconciled to the carrying amount in the consolidated financial statements: | | | | | | As at December 31, | | | | 2025 | | | | RMB’000 | | Current assets | | 10,342,184 | | Non-current assets, excluding goodwill | | 27,615,155 | | Goodwill on acquisition of the associate | | 3,279,036 | | Current liabilities | | (18,674,518) | | Non-current liabilities | | (11,950,509) | | | | | | Net assets | | 10,611,348 | | Net assets, excluding goodwill | | 7,332,312 | | Non-controlling interests | | 86,486 | | Net assets attributable to the parent, excluding goodwill | | 7,418,798 | | | | | | Reconciliation to the Group’s interest in the associate: | | | | Proportion of the Group’s ownership | | 29.4 | % | Group’s share of net assets of the associate, excluding goodwill | | 2,181,127 | | Goodwill on acquisition (less cumulative impairment) | | 3,279,036 | | | | | | Carrying amount of the investment | | 5,460,163 | |
| | | | | For the period | | | from the | | | acquisition date to | | | December 31, | | | 2025 | | | RMB’000 | Revenue | | 35,455,246 | Loss for the period | | (2,764,232) | Other comprehensive loss | | (3,559) | Total comprehensive loss for the period | | (2,767,791) | | | | (Where there is a quoted market price for the material associate) | | | Fair value of the Group’s investment | | 12,513,555 |
The following table illustrates the aggregate financial information of the Group’s associates that are not individually material: | | | | | | | As at December 31, | | | 2024 | | 2025 | | | RMB’000 | | RMB’000 | Share of the associates’ profit for the year | | 22,915 | | 13,663 | Share of the associates’ total comprehensive income | | 22,915 | | 13,663 | Aggregate carrying amount of the Group’s investments in the associates | | 38,567 | | 12,810 |
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