on our liquidity or operations. We believe acquired businesses operating at a loss do not detract from our total value because they bring clear strategic value to us in the long run. However, there can be no assurance that our future financial results would not be materially and adversely affected if our strategic investments and acquisitions are not successful. See “Risk Factors — Risks Related to Our Business and Industry — Sustained investment in our businesses and our focus on long-term performance and maintaining the health of our ecosystem may negatively affect our margins and our net income” and “Risk Factors — Risks Related to Our Business and Industry — We face risks relating to our acquisitions, investments and alliances.” Our significant strategic investments and acquisitions (including those that are under definitive agreement but have not closed, and excluding equity transactions in subsidiaries) in fiscal year 2024 and the period through the date of this annual report are set forth below. Moonshot AI Ltd or Moonshot, is an artificial intelligence company in the PRC. During the fiscal year 2024, we invested a total of approximately US$0.8 billion for an approximately 36% equity interest, representing a preferred stock investment in Moonshot. Intangible Assets and Goodwill When we make an acquisition, consideration that exceeds the acquisition date amounts of the acquired assets and liabilities is allocated to intangible assets and goodwill. We have and will continue to incur amortization expenses as we amortize intangible assets over their estimated useful life on a straight-line basis. We do not amortize goodwill. We test intangible assets and goodwill periodically or whenever necessary for impairment, and any impairment may materially and adversely affect our financial condition and results of operations. Some of our acquisitions and investments may not be successful, and we may incur impairment charges in the future. We recognized an impairment of intangible assets of RMB2,811 million in fiscal year 2023 and RMB12,089 million (US$1,674 million) in fiscal year 2024 , mainly relating to one of our import e-commerce platform in China and Sun Art within All others segment, respectively. We recognized an impairment of goodwill of RMB2,714 million and RMB10,521 million (US$1,457 million) in fiscal years 2023 and 2024 respectively, mainly in relation to Digital Media and Entertainment Group. For additional information, see “— Critical Accounting Policies and Estimates — Impairment Assessment on Goodwill and Intangible Assets” and “Risk Factors — Risks Related to Our Business and Industry — We face risks relating to our acquisitions, investments and alliances.” Management Discussion and Analysis 87 Fiscal Year 2024 Annual Report
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