Investments accounted for using equity method

12 Months Ended

Dec. 31, 2022

Investments accounted for using equity method [abstract]

Investments accounted for using equity method

17. Investments accounted for using equity method

	As at December 31,
	2021		2022
	RMB’million		RMB’million
Investments in associates		3,522		4,249
Investments in joint ventures		77		81
		3,599		4,330

	Year ended December 31,
	2020			2021			2022
	RMB’million			RMB’million			RMB’million
Share of profit/(loss) of investments accounted for using equity method:
Associates		23			(45	)		40
Joint ventures		(4	)		(2	)		(2	)
		19			(47	)		38

Movement of investments in associates and joint ventures is analyzed as follows:

	Year ended December 31,
	2021			2022
	RMB’million			RMB’million
At January 1		2,255			3,599
Additions (note i)		1,550			511
Share of (loss)/profit, net		(47	)		38
Share of other comprehensive income		4			75
Step acquisition accounted for as business combination		(26	)		(93	)
Capital reduction		-			(21	)
Currency translation differences		(60	)		295
Dividend received		(77	)		(74	)
At December 31		3,599			4,330

Notes:

(i)In January 2021, the Group completed the additional investment in certain equity interests in a consortium, Concerto Partners LLC (“Concerto”), which is led by Tencent to acquire equity stake in Universal Music Group (“UMG”) with same proportion of the Group’s equity stake as 9.94%, for an investment consideration of EUR161 million (equivalent to approximately RMB1,270 million). According to the shareholders agreement of Concerto, the Group is able to participate in certain key decision making process of Concerto and therefore, this investment is accounted for as investment in an associate.

(ii)Both external and internal sources of information of associates are considered in assessing whether there is any indication that the investments maybe impaired, including but not limited to their financial positions, business performances and market capitalization. During the years ended December 31, 2021 and 2022, no impairment loss was recognized.

There are no material contingent liabilities relating to the Group’s interests in the investments accounted for using equity method.