Investments accounted for using equity method (Tables)

12 Months Ended

Dec. 31, 2023

Investments accounted for using equity method [abstract]

Summary of Investments Accounted for Using Equity Method

	As at December 31,
	2022		2023
	RMB’million		RMB’million
Investments in associates		4,249		4,193
Investments in joint ventures		81		81
		4,330		4,274

Summary of Share of Profits/(Losses) of Investments Accounted for Using Equity Method

	Year ended December 31,
	2021			2022			2023
	RMB’million			RMB’million			RMB’million
Share of (loss)/profit of investments accounted for using equity method:
Associates		(45	)		40			129
Joint ventures		(2	)		(2	)		(2	)
		(47	)		38			127

Summary of Movement of Investments in Associates and Joint Ventures

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

	Year ended December 31,
	2022			2023
	RMB’million			RMB’million
At January 1		3,599			4,330
Additions		511			9
Business combination		-			1
Share of profit, net		38			127
Share of other comprehensive income		75			4
Disposal		-			(70	)
Step-up acquisition accounted for as business combination		(93	)		(42	)
Capital reduction		(21	)		(7	)
Impairment provision (note)		-			(23	)
Currency translation differences		295			67
Dividend received		(74	)		(122	)
At December 31		4,330			4,274

Note:

Both external and internal sources of information of associates are considered in assessing whether there is any indication that the investments may be impaired, including but not limited to their financial positions, business performances and market capitalization. The Group carries out impairment assessment on those investments with impairment indicators, and the respective recoverable amounts of investments are determined with reference to the higher of fair value less costs of disposal and value in use.

In respect of the recoverable amount using value in use, the discounted cash flows calculations are based on cash flow projections estimated by management and the key assumptions adopted in these cash flow projections include revenue growth rates, profit margins and discount rates. In respect of the recoverable amount based on fair value less costs of disposal, the amount is calculated with reference to their respective market prices or using certain key valuation assumptions including the selection of comparable companies, recent market transactions and liquidity discount for lack of marketability.

The Group performed an impairment test for the investment in an associate and recognized an impairment provision of RMB23 million based on the recoverable amounts, and their recoverable amounts were determined using fair value less costs of disposal.