Fair Value Measurements

12 Months Ended

Dec. 31, 2018

16. Fair Value Measurements

The following tables set forth the financial instruments measured at fair value on a non-recurring basis by level within the fair value hierarchy:


	Fair Value Measurements as of December 31, 2016
	Quoted Price in	Significant
	Active Market for	Other	Unobservable
	Identical Assets	Observable	inputs
	(Level 1)	Inputs (Level 2)	(Level 3)
	RMB	RMB	RMB
Recurring
Warrant liability	—	—	9,064

As of December 31, 2017 and 2018, the Group did not have any assets or liabilities that were measured at fair value on a recurring basis.


	Fair Value Measurements as of December 31, 2017
	Quoted Price in	Significant
	Active Market for	Other	UnobservableI
	Identical Assets	Observable	Inputs
	(Level 1)	Inputs (Level 2)	(Level 3)	Total Losses
	RMB	RMB	RMB	RMB
Non-recurring
Long-term investment included in other non-current assets	—	—	5,000	10,000

During the years ended December 31, 2016 and 2018 no impairment charge was recorded. The following table presents the changes in our Level 3 instrument measured at fair value on a recurring basis:


		Warrant
		liability
		RMB
Balance as of January 1, 2016		—
Change in fair value		8,668
Foreign exchange effect		396
Balance as of December 31, 2016		9,064
Transfer to mezzanine equity		(8,982)
Foreign exchange effect		(82)
Fair value at December 31, 2017		—

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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