LONG-TERM INVESTMENTS

12 Months Ended

Dec. 31, 2021

9. LONG-TERM INVESTMENTS

The Group’s long-term investments consist of the following:


	As of December 31,
	2020		2021
	RMB		RMB
Equity method investments (a)		58,479		31,779
Equity securities accounted for under alternative measurement (b)		5,900		196,296
Equity securities with readily determinable fair values (c)		94,552		153,326

Total long-term investments		158,931		381,401

Major investments made by the Company during the years ended December 31, 2019, 2020 and 2021 are summarized as follows:

(a)

Investments accounted for using equity method

The investments accounted for using equity method represent the Group’s equity investment over which the Group is able to exercise significant influence in the form of ordinary shares of the investee. The investments accounted for under equity methods are individually immaterial for the periods presented.

The carry amount and unrealized securities holding gain/ (loss) for the investments under equity method as of December 31, 2021 was as follows,


	Equity method investments
Total value booked under equity method as of December 31, 2019		36,588
Addition		28,883
Dividends received		(204	)
Disposal of long-term investments		(2,954	)
Share of cumulative loss for the year ended December 31, 2020		(3,834	)

Total value booked under equity method as of December 31, 2020		58,479
Addition		630
Disposal of long-term investments(i)		(16,793	)
Share of cumulative loss for the year ended December 31, 2021		(10,537	)

Total value booked under equity method as of December 31, 2021		31,779

(i)	The Company disposed of several investments that were accounted for under the equity method in 2021 and recorded the gains from the disposal of RMB8.7 million in other non-operating income/(loss), net.

(b)

Equity securities accounted for under alternative measurement

The investments accounted for under alternative measurement represent the Group’s equity investment over which the Group is not able to exercise significant influence in the form of ordinary shares of the investee.

Change from equity method investment to equity securities accounted for under alternative measurement

The Group previously accounted for the investment in the investee A using equity method. In 2021, Yunji disposed of the investment in investee A with a gain of RMB110.5 million recorded in other

non-operating

income/(expense), net (Note 19), and injected the same amount of consideration into the parent holding company of investee A (“the Enlarged A Group”). Yunji’s share of equity interest was 2.26% without board seat. Since Yunji lost significant influence, the Company recorded the new investment in the Enlarged A Group under alternative measurement.

In November 2021, with a new series of external financing of the enlarged A Group, the Company remeasured its investment to fair market value and recorded the unrealized changes in fair value with a gain of RMB 79,541 in financial income/(expense), net in the Consolidation Statements of Comprehensive (Loss)/

Income

based on the new investors’ purchase price.

(c)

Equity securities with readily determinable fair values

Investment in GXG, Tencent and Meituan

In May 2019, the Group purchased 22,740,000 ordinary shares of a Hong Kong listed Company—GXG (1817. HK)—with a total consideration of US$ 13 million, and recorded its investment in GXG with initial cost of US$ 13 million (equivalent to approximately RMB 89,517).

In February 2021, the Group purchased 106,600 and 55,000

ordinary shares of two Hong Kong listed Company- Meituan (3690. HK) and Tencent (0700. HK) – with a total consideration of

HKD$ 77.3 million

(equivalent to approximately RMB 65,065).

As of December 31, 2020 and 2021, based on the market price, the Group

re-measured

the investments at a fair value of RMB 94,552 and RMB 153,326, respectively, and recorded the unrealized changes in fair value with a loss of RMB 56,383 and a loss of RMB 19,851 in financial income/(expense), net in the Consolidation Statements of Comprehensive (Loss)/Income for years ended December 31, 2020 and 2021, respectively.