| Accounting Policies, by Policy (Policies) | 12 Months Ended |
| Dec. 31, 2022 |
| Accounting Policies [Abstract] | |
| Basis of preparation | 2.1
Basis of preparation The
consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”) issued
by the International Accounting Standards Board (“IASB”). The
consolidated financial statements of the Company were authorised for issue in accordance with a resolution of the directors on May 15,
2023. The
consolidated financial statements are prepared on a going concern basis. The
consolidated financial statements are prepared on a historical cost basis, except for equity investment at fair value through profit
or loss (“FVTPL”) that has been measured at fair value. The
consolidated financial statements are presented in Renminbi (“RMB”) and all values are rounded to the nearest thousands,
except for the number of shares and loss per share data. |
| Basis of consolidation | 2.2
Basis of consolidation The
consolidated financial statements comprise the financial statements of the Company, its subsidiaries and consolidated VIEs, (collectively
referred to as the “Group”) as at December 31, 2022 and 2021. A subsidiary is an entity (including a structured entity),
directly or indirectly, controlled by the Company. Control is achieved when the Group is exposed, or has rights, to variable returns
from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically,
the Group controls an investee if, and only if, the Group has:
● Power
over the investee (i.e., existing rights that give it the current ability to direct
the relevant activities of the investee)
● Exposure,
or rights, to variable returns from its involvement with the investee
● The
ability to use its power over the investee to affect its returns Generally,
there is a presumption that a majority of voting rights results in control. To support this presumption and when the Group has less than
a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether
it has power over an investee, including:
● The
contractual arrangement(s) with the other vote holders of the investee
● Rights
arising from other contractual arrangements
● The
Group’s voting rights and potential voting rights The
Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of
the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when
the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the
year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control
the subsidiary. Profit
or loss and each component of other comprehensive income (“OCI”) are attributed to the equity holders of the parent of the
Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary,
adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group’s accounting
policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of
the Group are eliminated in full on consolidation. A
change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If
the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, non-controlling interest
and other components of equity, while any resultant gain or loss is recognised in profit or loss. Any investment retained is recognised
at fair value. |
| Business combinations and goodwill | a) Business combinations and goodwill Business
combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration
transferred, which is measured at the acquisition date fair value, and the amount of any non-controlling interests in the acquiree. For
each business combination, the Group elects whether to measure the non-controlling interests in the acquiree at fair value or at the
proportionate share of the acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred and included
in administrative expenses. The
Group determines that it has acquired a business when the acquired set of activities and assets include an input and a substantive process
that together significantly contribute to the ability to create outputs. The acquired process is considered substantive if it is
critical to the ability to continue producing outputs, and the inputs acquired include an organised workforce with the necessary skills,
knowledge, or experience to perform that process or it significantly contributes to the ability to continue producing outputs and is
considered unique or scarce or cannot be replaced without significant cost, effort, or delay in the ability to continue producing outputs. When
the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation
in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the
separation of embedded derivatives in host contracts by the acquiree. Any
contingent consideration to be transferred by the acquirer is recognised at fair value at the acquisition date. Contingent consideration
classified as equity is not remeasured and its subsequent settlement is accounted for within equity. Contingent consideration classified
as an asset or liability that is a financial instrument and within the scope of IFRS 9 Financial Instruments Goodwill
is initially measured at cost (being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling
interests and any previous interest held over the net identifiable assets acquired and liabilities assumed). If the fair value of the
net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified
all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised
at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration
transferred, then the gain is recognised in profit or loss. After
initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill
acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units (“CGUs”)
that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to
those units. Where
goodwill is allocated to a CGU and part of the operation within that unit is disposed of, the goodwill associated with the disposed operation
is included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill disposed in these circumstances
is measured based on the relative values of the operation disposed of and the portion of the CGU retained. |
| Investment in a joint venture | b) Investment in a joint venture A
joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets
of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions
about the relevant activities require the unanimous consent of the parties sharing control. The
considerations made in determining joint control are similar to those necessary to determine control over subsidiaries. The Group’s
investment in a joint venture is accounted for using the equity method. Under
the equity method, the investment in a joint venture is initially recognised at cost. The carrying amount of the investment is adjusted
to recognise changes in the Group’s share of net assets of joint venture since the acquisition date. Goodwill relating to the joint
venture is included in the carrying amount of the investment and is not tested for impairment separately. The
consolidated statement of profit or loss and other comprehensive income reflects the Group’s share of the results of operations
of the joint venture. Any change in OCI of those investees is presented as part of the Group’s OCI. In addition, when there has
been a change recognised directly in the equity of the joint venture, the Group recognises its share of any changes, when applicable,
in the statement of changes in equity. Unrealised gains and losses resulting from transactions between the Group and the joint venture
are eliminated to the extent of the interest in the joint venture. The
aggregate of the Group’s share of profit or loss of a joint venture is shown on the face of the consolidated statements of profit
or loss and other comprehensive income outside operating profit and represents profit or loss after tax and non-controlling interests
in the subsidiaries of the joint venture. The
financial statements of the joint venture are prepared for the same reporting period as the Group. When necessary, adjustments are made
to bring the accounting policies in line with those of the Group. After
application of the equity method, the Group determines whether it is necessary to recognise an impairment loss on its investment in its
joint venture. At each reporting date, the Group determines whether there is objective evidence that the investment in the joint venture
is impaired. If there is such evidence, the Group calculates the amount of impairment as the difference between the recoverable amount
of the joint venture and its carrying value, and then recognises the loss within ‘Share of profit/(loss) of a joint venture’
in the consolidated statement of profit or loss and other comprehensive income. Upon
loss of joint control over the joint venture, the Group measures and recognises any retained investment at its fair value. Any difference
between the carrying amount of the joint venture upon loss of joint control and the fair value of the retained investment and proceeds
from disposal is recognised in profit or loss. |
| Current versus non-current classification | c) Current versus non-current classification The
Group presents assets and liabilities in the statement of financial position based on current/non-current classification. An asset is
current when it is:
● Expected
to be realised or intended to be sold or consumed in the normal operating cycle
● Held
primarily for the purpose of trading
● Expected
to be realised within twelve months after the reporting period or
● Cash
or cash equivalents unless restricted from being exchanged or used to settle a liability
for at least twelve months after the reporting period All
other assets are classified as non-current. A
liability is current when:
● It is
expected to be settled in the normal operating cycle
● It is
held primarily for the purpose of trading
● It is
due to be settled within twelve months after the reporting period or
● There
is no unconditional right to defer the settlement of the liability for at least twelve months
after the reporting period The
terms of the liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do
not affect its classification. The
Group classifies all other liabilities as non-current. Deferred
tax assets and liabilities are classified as non-current assets and liabilities. |
| Revenue from contracts with customers | d) Revenue from contracts with customers Revenue
from contracts with customers is recognised when control of the services or goods are transferred to the customer at an amount that reflects
the consideration to which the Group expects to be entitled in exchange for those services or goods. Revenue is recognised net of value
added taxes (“VAT”) as the VAT is levied on the customer and the Group is collecting VAT on behalf of third parties. The
Group does not adjust the transaction price for the effects of a significant financing component if the period between when the entity
transfers the promised good or service and when the customer pays for that good or service is within one The
disclosures of significant accounting judgements, estimates and assumptions relating to revenue from contracts with customers are provided
in Note 3. The
Group is in the business of distributing commercial copyrights, providing music education solutions, selling musical instruments and
providing services related to music events and performances. Subscription
revenue Subscription
revenue is generated from the sale of smart music devices and providing customers with the right to access the Group’s and third-party
databases through websites and mobile apps. Customers of database subscription services primarily consist of universities, colleges and
public libraries in the PRC, which pay for access by their respective students, faculty members or library patrons or, as the case may
be, and to a lesser extent, individuals. The Group also offers various smart music devices to institutional customers, allowing offline
access to selected music content. (i) Subscription
revenue - music content database services The
Group provides web-based and mobile-based access to the music content database to its customers, mainly universities, colleges and public
libraries and is the principal of the arrangement. The performance obligation consists of providing music database access and related
services (e.g. 24-hour remote support services) that are not considered distinct in the context of the contract. The performance
obligation is satisfied over the subscription period. The payment is generally due in 7 to 365 days after the Group begins to provide
the customer access to the music content database. In some contracts, short-term advances are required before the database service is
provided. (ii) Subscription
revenue - third-party database service The
Group acts as an agent for database owners which provide database services to colleges and public libraries. The Group recognises revenue
at the net amount that is retained from these arrangements. The performance obligation is satisfied when the Group has sold the database
services and the payment is generally due in 7 to 365 days after the database owners begin to provide database access to the customers. (iii)
Subscription revenue - sale of smart music devices The
Group sells hardware with embedded content and revenue is recognised upon delivery of the devices. The payment is generally due within
1 year from delivery. Licensing Licensing
revenue is generated by licensing certain music copyrights to internet music service providers for digital streaming or downloading through
their online platforms. Licensing customers also include, to a much lesser extent, digital music service providers, smart hardware manufacturers
and game developers. The licensing business mainly includes two types of contracts: (i) licensing with fixed payment; and (ii) licensing
with a minimum guarantee and a revenue-sharing arrangement. (i) Licensing
- with a fixed payment The
Group licenses specific music content to the customers. Revenue is recognised when the licensed copyright is made available for the customer’s
use and benefit, typically upon transfer of the licensed content to the customer. Payment is generally due within 90 to 365 days
from the transfer. (ii) Licensing
- with a minimum guarantee and a revenue-sharing arrangement For
these arrangements, the Group typically: (i) licenses a specific listing of music content; and (ii) licenses future music content
on an if-and-when-available basis over a specified period of time. The performance obligation relating to the licensing of a specific
listing of music content is satisfied when the specified licensed copyright is made available for the customer’s use and benefit,
typically, upon transfer of the licensed content to the customer. The performance obligation relating to the licensing of future music
content is satisfied over the specified licensing period. These arrangements typically include a minimum guarantee payment and a revenue-sharing
arrangement which requires additional payments if the usage of the music content exceeds specified thresholds. Royalties exceeding the
minimum guaranteed amount is recognised when the usage occurs. No The
minimum guarantee is generally due in 7 to 365 days from delivery of the existing music content, and the royalties from the revenue-sharing
arrangement is calculated on a monthly or quarterly basis and are due within 30 days from the month or quarter end. Smart
music education business The
Group has two business models for its smart music education business: sale of smart music products and smart music education classes. (i) Sale
of smart music products Revenue
from the sale of smart music products includes the sale of: (i) integrated Kukey smart pianos; (ii) a self-developed smart
teaching system installed on a network storage server; and (iii) piano accessories such as professional around-ear headphones. Revenue
is recognised upon delivery of the specified smart music products. The payment is generally due within 1 year from delivery. (ii) Smart
music education The
Group provides music education classes conducted through Kukey smart pianos. The performance obligation is satisfied overtime as the
student attends the music education class and customers have generally prepaid for the smart music education services. Music
events and performances (i) Music
festival events services The
Group executes music festival events for the organisers. The Group also provides related sponsorship services to the patrons who sponsor
these music festivals. The sponsorship services may include placement of advertisements in the music festivals and organising pre-concert
events such as cocktail parties, production of publicity materials, and arrangement of media interviews for sponsors. The
Group recognises revenue from services related to music festival events over time as the music festival takes place and recognises sponsorship
service revenue over time when such services are provided to the patrons because the customer simultaneously receives and consumes the
benefits provided by the Group. (ii) Music
performance services The
Group executes music performance activities for the organisers. The
Group recognises revenue from music performance services over time as the music performance takes place because the customer simultaneously
receives and consumes the benefits provided by the Group. (iii)
Sale of musical instruments The
Group sells hardware with embedded content and revenue is recognised upon delivery of the instruments. The payment is generally due within
1 year from delivery. Cost to
obtain a contract The
Group applies the optional practical expedient to immediately expense costs to obtain a contract if the amortisation period of the asset
that would have been recognised is one Contract
balances Trade
receivables A
receivable is recognised if an amount of consideration that is unconditional is due from the customer (i.e., only the passage of
time is required before payment of the consideration is due). Refer to accounting policies of financial assets in section (l) Financial
instruments—initial recognition and subsequent measurement. Contract
liabilities A
contract liability is recognised if a payment is received or a payment is due (whichever is earlier) from a customer before the Group
transfers the related services. Contract liabilities are recognised as revenue when the Group performs under the contract (i.e., transfers
control of the related goods or services to the customer). Variable
consideration The
licensing with a minimum guarantee and revenue-sharing arrangement contracts include variable consideration for which if the revenue-sharing
outcome exceeds the minimum guarantee, the consideration should be the revenue-sharing outcome, and if not, the consideration is the
minimum guarantee. The
revenue-sharing arrangement is a usage-based royalty promised in exchange for a licence of intellectual property which is only recognised
when the subsequent usage occurs. |
| Government grants | e) Government grants Government
grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied
with. When the grant relates to an expense item, it is recognised as income on a systematic basis over the periods that the related costs,
for which it is intended to compensate, are expensed. When the grant relates to an asset, it is recognised as income in equal amounts
over the expected useful life of the related asset. When
the Group receives grants of non-monetary assets, the asset and the grant are recorded at nominal amounts and released to profit or loss
over the expected useful life of the asset, based on the pattern of consumption of the benefits of the underlying asset by equal annual
instalments. |
| Taxes | f) Taxes Current
income tax Current
income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax
rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date in the countries
where the Group operates and generates taxable income. Current
income tax relating to items recognised directly in equity is recognised in equity and not in profit or loss. Management periodically
evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation
and establishes provisions where appropriate. Deferred
tax Deferred
tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying
amounts for financial reporting purposes at the reporting date. Deferred
tax liabilities are recognised for all taxable temporary differences, except:
● When
the deferred tax liability arises from the initial recognition of goodwill or an asset or
liability in a transaction that is not a business combination and, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss
● In respect
of taxable temporary differences associated with investments in subsidiaries and a joint
venture, when the timing of the reversal of the temporary differences can be controlled and
it is probable that the temporary differences will not reverse in the foreseeable future Deferred
tax assets are recognised for all deductible temporary differences, and the carry forward of unused tax credits and any unused tax losses.
Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible
temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except:
● When
the deferred tax asset relating to the deductible temporary difference arises from the initial
recognition of an asset or liability in a transaction that is not a business combination
and, at the time of the transaction, affects neither the accounting profit nor taxable profit
or loss
● In respect
of deductible temporary differences associated with investments in subsidiaries and a joint
venture, deferred tax assets are recognised only to the extent that it is probable that the
temporary differences will reverse in the foreseeable future and taxable profit will be available
against which the temporary differences can be utilised The
carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that
sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax
assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits
will allow the deferred tax asset to be recovered. In
assessing the recoverability of deferred tax assets, the Group relies on the same forecast assumptions used elsewhere in the financial
statements and in other management reports. Deferred
tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability
is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred
tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are recognised in correlation
to the underlying transaction either in OCI or directly in equity. Tax
benefits acquired as part of a business combination, but not satisfying the criteria for separate recognition at that date, are recognised
subsequently if new information about facts and circumstances change. The adjustment is either treated as a reduction in goodwill (as
long as it does not exceed goodwill) if it was incurred during the measurement period or recognised in profit or loss. The
Group offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax
assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same
taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities
and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant
amounts of deferred tax liabilities or assets are expected to be settled or recovered. Sales
tax Expenses
and assets are recognised net of the amount of sales tax, except:
● When
the sales tax incurred on a purchase of assets or services is not recoverable from the taxation
authority, the sales tax is recognised as part of the cost of acquisition of the asset or
as part of the expense item, as applicable.
● When
receivables and payables are stated with the amount of sales tax included, the net amount
of sales tax recoverable from, or payable to, the taxation authority is included as part
of receivables or payables in the statement of financial position. |
| Foreign currencies | g) Foreign currencies The
Group’s consolidated financial statements are presented in RMB, which is also the parent company’s functional currency. For
each entity, the Group determines the functional currency and items included in the financial statements of each entity are measured
using that functional currency. The Group uses the direct method of consolidation and on disposal of a foreign operation and the gain
or loss that is reclassified to profit or loss reflects the amount that arises from using this method.
i) Transactions
and balances Transactions
in foreign currencies are initially recorded by the Group’s entities at their respective functional currency spot rates at the
date the transaction first qualifies for recognition. Monetary
assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting
date. Differences
arising on settlement or translation of monetary items are recognised in profit or loss with the exception of monetary items that are
designated as part of the hedge of the Group’s net investment in a foreign operation. These are recognised in OCI until the net
investment is disposed of, at which time, the cumulative amount is reclassified to profit or loss. Tax charges and credits attributable
to exchange differences on those monetary items are also recognised in OCI. Non-monetary
items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the
initial transactions. In
determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition
of a non-monetary asset or non-monetary liability relating to advance consideration, the date of the transaction is the date on which
the Group initially recognises the non-monetary asset or non-monetary liability arising from the advance consideration. If there are
multiple payments or receipts in advance, the Group determines the transaction date for each payment or receipt of advance consideration.
ii) Group
companies On
consolidation, the assets and liabilities of foreign operations are translated into RMB at the rate of exchange prevailing at the reporting
date and their profit or loss is translated at exchange rates prevailing at the dates of the transactions. The exchange differences arising
on translation for consolidation are recognised in OCI. On disposal of a foreign operation, the component of OCI relating to that particular
foreign operation is reclassified to profit or loss. Any
goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities
arising on the acquisition are treated as assets and liabilities of the foreign operation and translated at the spot rate of exchange
at the reporting date. |
| Property, plant and equipment | h) Property, plant and equipment Property,
plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes
the cost of replacing part of the plant and equipment. When significant parts of plant and equipment are required to be replaced at intervals,
the Group depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost
is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other
repair and maintenance costs are recognised in profit or loss as incurred. The present value of the expected cost for the decommissioning
of an asset after its use is included in the cost of the respective asset if the recognition criteria for a provision are met. Depreciation
is calculated on a straight-line basis over the estimated useful lives of the assets as follows:
● Leasehold
improvements Over the lease terms
● Music
education equipment 5 years
● Furniture
and fixtures 3 to 4 years
● Office
equipment 3 to 5 years An
item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal (i.e., at the
date the recipient obtains control) or when no future economic benefits are expected from its use or disposal. Any gain or loss arising
on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is
included in profit or loss when the asset is derecognised. The
residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and
adjusted prospectively, if appropriate. |
| Leases | i) Leases The
Group assesses at contract inception whether a contract is, or contains, a lease, that is, whether the contract conveys the right to
control the use of an identified asset for a period of time in exchange for consideration. Group
as a lessee The
Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets.
The Group recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.
i) Right-of-use
assets The
Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for
use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement
of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred,
and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on
a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets. If
ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise of a purchase option,
depreciation is calculated using the estimated useful life of the asset. The
right-of-use assets are also subject to impairment. Refer to the accounting policies in section (n) Impairment of non-financial
assets.
ii) Lease
liabilities At
the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made
over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable,
variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease
payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties
for terminating the lease, if the lease term reflects the Group exercising the option to terminate the lease. Variable lease payments
that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in
which the event or condition that triggers the payment occurs. In
calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date because
the interest rate implicit in the lease is not readily determinable. The incremental borrowing rate is the rate of interest that a lessee
would have to pay to borrow over a similar term, similar security, the funds necessary to obtain an asset of a similar value to the right-of-use
asset in a similar economic environment. After the commencement date, the amount of lease liabilities is increased to reflect the accretion
of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is
a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change
in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.
iii) Short-term
leases and leases of low-value assets The
Group applies the short-term lease recognition exemption to its short-term leases of warehouses (i.e., those leases that have a lease
term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the recognition
exemption for leases of low-value assets to leases of office equipment that are considered to be low value. Lease payments on short-term
leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term. Group
as a lessor A
lease is classified as a finance lease if the Group transfers substantially all the risks and rewards incidental to ownership of an asset.
Leases in which the Group does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified
as operating leases. For subleases, the Group, as the intermediate lessor, classifies the sublease by reference to the right-of-use asset
arising from the head lease, rather than by reference to the underlying asset. For
subleases classified as finance leases, the Group derecognises the right-of-use asset on the head lease and recognises net investments
in the sublease. Any difference between the right-of-use asset and the net investments in the sublease is recognised in profit or loss.
The Group continues to account for the original lease liability. Interest income on the sublease and interest expense on the head lease
is recognised during the term of the sublease. |
| Borrowing costs | j) Borrowing costs Borrowing
costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of
time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed
in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing
of funds. |
| Intangible assets | k) Intangible assets Intangible
assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination
is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated
amortisation and accumulated impairment losses. Internally generated intangibles, excluding capitalised development costs, are not capitalised
and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred. The
useful lives of intangible assets are assessed as either finite or indefinite. Intangible
assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that
the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful
life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption
of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are
treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in profit or
loss in the expense category that is consistent with the function of the intangible assets. An
intangible asset is derecognised upon disposal (i.e., at the date the recipient obtains control) or when no future economic benefits
are expected from its use or disposal. Any gain or loss arising upon derecognition of the asset (calculated as the difference between
the net disposal proceeds and the carrying amount of the asset) is included in profit or loss. Research
and development costs Research
costs are expensed as incurred. Development expenditures on an individual project are recognised as an intangible asset when the Group
can demonstrate:
● The
technical feasibility of completing the intangible asset so that the asset will be available
for use or sale
● Its
intention to complete and its ability and intention to use or sell the asset
● How
the asset will generate future economic benefits
● The
availability of resources to complete the asset
● The
ability to measure reliably the expenditure during development Following
initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortisation and accumulated
impairment losses. Amortisation of the asset begins when development is complete and the asset is available for use. It is amortised
over the period of expected future benefit. Amortisation is recorded in cost of sales. During the period of development, the asset is
tested for impairment annually. Software Software
is stated at cost less any impairment losses and is amortised on the straight-line basis over its estimated useful economic life of 3 years. Copyrights Copyrights
are stated at cost less any impairment losses and are amortised on the straight-line basis over their estimated useful economic lives
of 15 to 49 years. |
| Financial instruments—initial recognition and subsequent measurement | l) Financial instruments—initial recognition and subsequent measurement A
financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument
of another entity.
i) Financial
assets Initial
recognition and measurement Financial
assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through OCI, and fair value through
profit or loss (“FVTPL”). The
classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics
and the Group’s business model for managing them. With the exception of trade receivables that do not contain a significant financing
component or for which the Group has applied the practical expedient, the Group initially measures a financial asset at its fair value
plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain
a significant financing component or for which the Group has applied the practical expedient are measured at the transaction price as
disclosed in section (d) Revenue from contracts with customers. In
order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise to cash
flows that are “solely payments of principal and interest (SPPI)” on the principal amount outstanding. This assessment is
referred to as the SPPI test and is performed at an instrument level. Financial assets with cash flows that are not SPPI are classified
and measured at fair value through profit or loss, irrespective of the business model. The
Group’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows.
The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or
both. Financial assets classified and measured at amortised cost are held within a business model with the objective to hold financial
assets in order to collect contractual cash flows while financial assets classified and measured at fair value through OCI are held within
a business model with the objective of both holding to collect contractual cash flows and selling. Purchases
or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the marketplace
(regular way trades) are recognised on the trade date, i.e., the date that the Group commits to purchase or sell the asset. Subsequent
measurement For
purposes of subsequent measurement, financial assets are classified in two categories:
● Financial
assets at amortised cost (debt instruments)
● Financial
assets at fair value through profit or loss Financial
assets at amortised cost (debt instruments) Financial
assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and
losses are recognised in profit or loss when the asset is derecognised, modified or impaired. Financial
assets at fair value through profit or loss Financial
assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair
value recognised in profit or loss. This category includes an unlisted equity investment which the Group had not irrevocably elected
to classify at fair value through OCI. Dividends on the equity investment are credited to profit or loss when the right of payment has
been established. Derecognition A
financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised
(i.e., removed from the Group’s consolidated statement of financial position) when:
● The
rights to receive cash flows from the asset have expired or
● The
Group has transferred its rights to receive cash flows from the asset or has assumed an obligation
to pay the received cash flows in full without material delay to a third party under a “pass-through”
arrangement; and either (a) the Group has transferred substantially all the risks and
rewards of the asset, or (b) the Group has neither transferred nor retained substantially
all the risks and rewards of the asset, but has transferred control of the asset When
the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates
if, and to what extent, it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially
all of the risks and rewards of the asset, nor transferred control of the asset, the Group continues to recognise the transferred asset
to the extent of its continuing involvement. In that case, the Group also recognises an associated liability. The transferred asset and
the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained. Continuing
involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of
the asset and the maximum amount of consideration that the Group could be required to repay. Impairment Further
disclosures relating to impairment of financial assets are also provided in the following notes:
● Disclosures
of significant estimates and assumptions Note 3
● Trade
receivables, net Note 16
● Prepayments,
other receivables and other assets, net Note 17
● Related
party disclosure Note
26 The
Group recognises an allowance for expected credit losses (“ECLs”) for all debt instruments not held at fair value through
profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash
flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows
will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms. General
approach ECLs
are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition,
ECLs are provided for credit losses that result from default events that are possible within the next 12 months (a 12-month ECL). For
those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is
required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). At
each reporting date, the Group assesses whether the credit risk on a financial instrument has increased significantly since initial recognition.
When making the assessment, the Group compares the risk of a default occurring on the financial instrument as at the reporting date with
the risk of a default occurring on the financial instrument as at the date of initial recognition and considers reasonable and supportable
information that is available without undue cost or effort, including historical and forward-looking information. The
Group considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases, the Group
may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive
the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is
written off when there is no reasonable expectation of recovering the contractual cash flows. Financial
assets at amortised cost are subject to impairment under the general approach and they are classified within the following stages for
measurement of ECLs except for trade receivables which apply the simplified approach as detailed below. Stage 1—Financial
instruments for which credit risk has not increased significantly since initial recognition and for which the loss allowance is measured
at an amount equal to 12-month ECLs Stage 2—Financial
instruments for which credit risk has increased significantly since initial recognition but that are not credit-impaired financial assets
and for which the loss allowance is measured at an amount equal to lifetime ECLs Stage 3—Financial
assets that are credit-impaired at the reporting date (but that are not purchased or originated credit-impaired) and for which the loss
allowance is measured at an amount equal to lifetime ECLs Simplified
approach For
trade receivables, the Group applies a simplified approach in calculating ECLs. Therefore, the Group does not track changes in credit
risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Group has established a provision matrix
that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic
environment. The Group considers a financial asset in default when contractual payments are 1 year past due. However, in certain cases,
the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely
to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial
asset is written off when there is no reasonable expectation of recovering the contractual cash flows.
ii) Financial
liabilities Initial
recognition and measurement Financial
liabilities are classified, at initial recognition, as loans and borrowings, payables, as appropriate. All
financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable
transaction costs. Subsequent
measurement For
purposes of subsequent measurement, financial liabilities are classified in one category:
● Financial
liabilities at amortised cost (loans and borrowings) Financial
liabilities at amortised cost (loans and borrowings) After
initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and
losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised
cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR.
The EIR amortisation is recognised in profit or loss. This
category generally applies to interest-bearing loans and borrowings. For more information, refer to Note 18. Derecognition A
financial liability is derecognised when the obligation under the liability is discharged or cancelled, or expires. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability
are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition
of a new liability. The difference in the respective carrying amounts is recognised in profit or loss.
iii) Offsetting
of financial instruments Financial
assets and financial liabilities are offset and the net amount is reported in the consolidated statement of financial position if there
is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise
the assets and settle the liabilities simultaneously. |
| Inventories | m) Inventories All
inventories are finished goods. Inventories
are valued at the lower of cost (determined on a first-in, first-out method) and net realisable value. Net realisable value is the estimated
selling price in the ordinary course of business, less estimated costs necessary to make the sale. The Group identifies potentially slow-moving
and obsolete inventories through physical counts, monitoring of inventories on hand, and specific identification, and makes adjustments
to net realisable value as necessary. |
| Impairment of non-financial assets | n) Impairment of non-financial assets Further
disclosures relating to impairment of non-financial assets are also provided in the following notes:
● Disclosures
for significant estimates and assumptions Note 3
● Property,
plant and equipment Note 12
● Intangible
assets Note 13
● Goodwill Note 14 The
Group assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when
annual impairment testing for an asset is required, the Group estimates the asset’s recoverable amount. An asset’s recoverable
amount is the higher of an asset’s or CGU’s fair value less costs of disposal and its value in use. The recoverable amount
is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other
assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired
and is written down to its recoverable amount. In
assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal,
recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used.
These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair
value indicators. The
Group bases its impairment calculation on most recent budgets and forecast calculations, which are prepared separately for each of the
Group’s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally cover a period of
five years. A long-term growth rate is calculated and applied to project future cash flows after the fifth year. Impairment
losses are recognised in profit or loss in expense categories consistent with the function of the impaired asset. For
assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognised
impairment losses no longer exist or have decreased. If such indication exists, the Group estimates the asset’s or CGU’s
recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine
the asset’s recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount
of the asset does not exceed its recoverable amount, nor does it exceed the carrying amount that would have been determined, net of depreciation,
had no Goodwill
is tested for impairment annually and when circumstances indicate that the carrying value may be impaired. Impairment
is determined for goodwill by assessing the recoverable amount of each CGU (or group of CGUs) to which the goodwill relates. When the
recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognised. Impairment losses relating to goodwill
cannot be reversed in future periods. |
| Cash and cash equivalents | o) Cash and cash equivalents Cash
and cash equivalents in the consolidated statement of financial position comprise cash at banks and on hand and short-term highly liquid
deposits with a maturity of three For
the purpose of the consolidated statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined
above, net of outstanding bank overdrafts as they are considered an integral part of the Group’s cash management. |
| Provisions | p) Provisions General Provisions
are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow
of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount
of the obligation. When the Group expects some or all of a provision to be reimbursed, for example, under an insurance contract, the
reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision
is presented in profit or loss net of any reimbursement. If
the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate,
the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised
as a finance cost. Warranty
provisions The
Group provides warranties for general repairs of defects that existed at the time of sale, as required by law. Provisions related to
these assurance-type warranties are recognised when the product is sold or the service is provided to the customer. Initial recognition
is based on historical experience. The estimate of warranty-related costs is revised annually. Onerous
contracts If
the Group has a contract that is onerous, the present obligation under the contract is recognised and measured as a provision. However,
before a separate provision for an onerous contract is established, the Group recognises any impairment loss that has occurred on assets
dedicated to that contract. An
onerous contract is a contract under which the unavoidable costs (i.e., the costs that the Group cannot avoid because it has the
contract) of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The unavoidable
costs under a contract reflect the least net cost of exiting from the contract, which is the lower of the cost of fulfilling it and any
compensation or penalties arising from failure to fulfil it. The cost of fulfilling a contract comprises the costs that relate directly
to the contract (i.e., both incremental costs and an allocation of costs directly related to contract activities). |
| Pensions and other post-employment benefits | q) Pensions and other post-employment benefits Full
time employees of the Group in the PRC participate in a government mandated multi-employer defined contribution plan pursuant to which
certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees.
Chinese labour regulations require that the Group make contributions to the government for these benefits based on a certain percentage
of the employee’s salaries. The Group has no legal obligation for the benefits beyond the contributions. |
| Share-based payments | r) Share-based payments Employees
(including senior executives) and consultants of the Group receive remuneration in the form of share-based payments, whereby employees
and consultants render services as consideration for equity instruments (equity-settled transactions). Equity-settled
transactions The
cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation
model, further details of which are given in Note 29. That
cost is recognised in administrative expenses, together with a corresponding increase in equity (capital reserves), over the period in
which the service and, where applicable, the performance conditions are fulfilled (the vesting period). The cumulative expense recognised
for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired
and the Group’s best estimate of the number of equity instruments that will ultimately vest. The expense or credit in profit or
loss for a period represents the movement in cumulative expense recognised as at the beginning and end of that period. Service
and non-market performance conditions are not taken into account when determining the grant date fair value of awards, but the likelihood
of the conditions being met is assessed as part of the Group’s best estimate of the number of equity instruments that will ultimately
vest. Market performance conditions are reflected within the grant date fair value. Any other conditions attached to an award, but without
an associated service requirement, are considered to be non-vesting conditions. Non-vesting conditions are reflected in the fair value
of an award and lead to an immediate expensing of an award unless there are also service and/or performance conditions. No When
the terms of an equity-settled award are modified, the minimum expense recognised is the grant date fair value of the unmodified award,
provided the original vesting terms of the award are met. An additional expense, measured as at the date of modification, is recognised
for any modification that increases the total fair value of the share-based payment transaction, or is otherwise beneficial to the employee.
Where an award is cancelled by the entity or by the counterparty, any remaining element of the fair value of the award is expensed immediately
through profit or loss. The
dilutive effect of outstanding options is reflected as additional share dilution in the computation of loss per share. |
| Related parties | s) Related parties A
party is considered to be related to the Group if:
(a) the party
is a person or a close member of that person’s family and that person
(i) has control
or joint control over the Group;
(ii) has significant
influence over the Group; or
(iii) is a member
of the key management personnel of the Group or of a parent of the Group; or
(b) the party
is an entity where any of the following conditions applies:
(i) the entity
and the Group are members of the same group;
(ii) one entity
is an associate or joint venture of the other entity (or of a parent, subsidiary or fellow
subsidiary of the other entity);
(iii) the entity
and the Group are joint ventures of the same third party;
(iv) one entity
is a joint venture of a third entity and the other entity is an associate of the third entity;
(v) the entity
is a post-employment benefit plan for the benefit of employees of either the Group or an
entity related to the Group;
(vi) the entity
is controlled or jointly controlled by a person identified in (a);
(vii) a person
identified in (a)(i) has significant influence over the entity or is a member of the key
management personnel of the entity (or of a parent of the entity); and
(viii) the entity,
or any member of a group of which it is a part, provides key management personnel services
to the Group or to the parent of the Group. |
| Fair value measurement | t) Fair value measurement Fair
value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either:
● In the
principal market for the asset or liability or
● In the
absence of a principal market, in the most advantageous market for the asset or liability The
principal or the most advantageous market must be accessible by the Group. The
fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or
liability, assuming that market participants act in their economic best interest. All
assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value
hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
● Level 1—Quoted
(unadjusted) market prices in active markets for identical assets or liabilities
● Level 2—Valuation
techniques for which the lowest level input that is significant to the fair value measurement
is directly or indirectly observable
● Level 3—Valuation
techniques for which the lowest level input that is significant to the fair value measurement
is unobservable For
assets and liabilities that are recognised in the financial statements at fair value on a recurring basis, the Group determines whether
transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant
to the fair value measurement as a whole) at the end of each reporting period. For
the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the basis of the nature, characteristics
and risks of the asset or liability and the level of the fair value hierarchy, as explained above. |
| Share capital | u)
Share capital Ordinary
shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as
a deduction, net of tax, from the proceeds. |
| Treasury shares | v)
Treasury shares Own
equity instruments which are reacquired and held by the Company or the Group (treasury shares) are recognised directly in equity at cost.
No gain or loss is recognised in the statement of profit or loss on the purchase, sale, issue or cancellation of the Group’s own
equity instruments. |
| Changes in accounting policies and disclosures | 2.4
Changes in accounting policies and disclosures The
Group applied for the first-time certain standards and amendments, which are effective for annual periods beginning on or after 1 January
2022. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective. New
accounting standards and amendments adopted by the Group for the first time for the financial year beginning on 1 January 2022 Amendments
to IAS 16 Property, Plant and Equipment: Proceeds before intended use In
May 2020, the Board issued Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16) which prohibit a company
from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing
the asset for its intended use. Instead, a company will recognise such sales proceeds and related cost in profit or loss. The amendments
are effective for annual periods beginning on or after 1 January 2022. Amendments
to IAS 37 Onerous Contracts—Cost of Fulfilling a Contract In
May 2020, the Board issued Cost of Fulfilling a Contract. The amendments clarify that for the purpose of assessing whether a contract
is onerous, the cost of fulfilling the contract includes both the incremental costs of fulfilling that contract and an allocation of
other costs that relate directly to fulfilling contracts. The amendments are effective for annual periods beginning on or after 1 January
2022. Amendments
to IFRS 3 Reference to the Conceptual Framework In
May 2020, the Board issued Reference to the Conceptual Framework,amended paragraphs 11, 14, 21, 22 and 23 and added paragraphs 21A, 21B,
21C and 23A. The amendments are effective for annual periods beginning on or after 1 January 2022. These
amendments had no impact on the interim condensed consolidated financial statements of the Group. |
