Company: HBCYF
Filing Date: 2025-07-30
Form Type: 6-K
Source: 0001089113-25-000052
Chunk: 92

Company: HSBC HOLDINGS PLC
Filing Date: 2025-07-30
Form: 6-K
Chunk 92
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 |         317 |
| Other associates and joint ventures              |           46 |          52 |
| Share of profit in associates and joint ventures |        1,651 |       1,626 |
| Less: Impairment of interest in BoCom            |       -1,000 |           — |

Bank of Communications Co., Limited

The results for the period ended 30 June 2025 included a $ 1.1b n loss from the dilution of our shareholding and a $ 1.0b n impairment to the

carrying value of the Group’s interest in BoCom.

The Group’s interest in BoCom reduced from 19.03% to 16.00% following the completion of a capital issuance by BoCom on 17 June 2025.

The dilution of the Group’s interest resulted in a pre-tax loss of $ 1.1b n, recognised in ‘Other operating (expense)/income’ in the Group’s

consolidated income statement. The loss is not deductible for tax purposes as a consequence of our shareholding in BoCom being held for long-

term investment purposes.

In addition, the Group performed an impairment test on the carrying amount at 30 June 2025, which resulted in an impairment of $ 1.0b n, as the

recoverable amount as determined by a value-in-use calculation was lower than the carrying value, recognised within ‘Impairment of interest in

associate’. Consistent with prior periods, our value-in-use calculation uses both historical experience and market participant views to estimate

future cash flows, relevant discount rates and associated capital assumptions.

We remain strategically committed to mainland China and continue our valued, strategic partnership with BoCom.

HSBC’s Interest

The Group’s investment in BoCom continues to be classified as an associate. Significant influence in BoCom was established with consideration

of all relevant factors, including the Group’s latest shareholding, representation on BoCom’s Board of Directors, and participation in a resource

and experience sharing agreement. Investments in associates are recognised using the equity method of accounting in accordance with IAS 28

‘Investments in Associates and Joint Ventures’, whereby the investment is initially recognised at cost and adjusted thereafter for the post-

acquisition change in the Group’s share of associate’s net assets. An impairment test is required if there is any indication of impairment or

reversal.

The fair value of the Group’s investment in BoCom had been below its carrying amount.