v3.26.3
Fair value estimation
 6 Months Ended
Jun. 30, 2026
Financial risk management [Abstract]  
Fair value estimation
3.Fair value estimation

 

(a)Fair value hierarchy

 

The table below analyses the Group’s financial instruments carried at fair value as of each financial position date by level of the inputs to valuation techniques used to measure fair value. Such inputs are categorized into three levels within a fair value hierarchy as follows:

 

●Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1);

 

●Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2); and

 

●Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).

 

The following table presents the Group’s financial instruments measured at fair value as at December 31, 2025 and June 30, 2026:

 

   Level 1   Level 2   Level 3   Total 
   RMB’000   RMB’000   RMB’000   RMB’000 
At December 31, 2025                
Assets:                
Financial assets at fair value through profit or loss   —    —    1,291    1,291 
Financial assets at fair value through other comprehensives income   92,396    —    —    92,396 
Liabilities:                    
Financial liabilities at fair value through profit or loss   —    —    22,044    22,044 
At June 30, 2026                    
Assets:                    
Financial assets at fair value through other comprehensive income   77,858    —    —    77,858 

 

During the six months ended June 30, 2026, unrealized losses arising from financial instruments measured at fair value amounted to RMB14.9 million.

 

(b)Level 3 financial instruments

 

If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. Specific valuation techniques used to value level 3 financial instruments include:

 

●The use of quoted market prices or investor quotes for similar instruments;

 

●The discounted cash flow model using unobservable inputs mainly including assumptions of expected future cash flows and discount rate;

 

●The use of information of the latest round of financing, i.e. the recent transaction price or third-party pricing information; and

 

●A combination of observable and unobservable inputs, including risk-free rate, expected volatility, discount rate for lack of marketability, market multiples, etc.

As the Group’s level 3 financial instruments are not traded in active markets, their fair values have been determined using applicable valuation techniques, such as market approach, Monte-Carlo simulation model and binomial tree model.

 

The following table summarizes the quantitative information about the significant unobservable inputs used in recurring level 3 fair value measurements:

  

Description   Fair value at   Unobservable
inputs		  Range of inputs at  Relationship of
unobservable
inputs to fair
value
    December 31,
2025		   June 30,
2026		      December 31,
2025		  June 30,
2026		    
    RMB’000   RMB’000              
Warrants    22,044    —   Expected volatility  Note 13   N/A   The higher the expected volatility, the higher the fair value

 

The carrying amounts of the Group’s financial assets not carried at fair value, including cash and cash equivalents, trade receivables, other receivables and other financial assets, and financial liabilities not carried at fair value, including borrowings, trade payables and other payables, approximate their fair values due to the short maturities or the interest rates being close to the market interest rates.