Investments in Equity Investees

6 Months Ended

Jun. 30, 2021

Investments in equity investees

Investments in equity investees

7. Investments in equity investees

In June 2017, the Group entered into an agreement with three third parties to launch JING Medicine Technology (Shanghai) Ltd. (“JING”), an entity which provides services for product discovery and development, consultation and transfer of pharmaceutical technology. The capital contribution by the Group was RMB26,250 in cash, which was paid by the Group in 2017 and 2018, representing 20% and 18% of the equity interest of JING as of December 31, 2020 and June 30, 2021, respectively. The Group accounts for this investment using the equity method of accounting due to the fact that the Group can exercise significant influence on the investee. The Group recorded its gain on deemed disposal in this investee of nil and $463 for the three months and six months ended June 30, 2021, and recorded loss of $403 and $671 for its portion of JING’s net loss for the three months and six months ended June 30, 2021, respectively. The Group recorded share of loss in this investee of $269 and $406 for the three and six months ended June 30, 2020, respectively.