11.

Property, plant and equipment


	Freehold land RMB’000		Leasehold land, buildings and improvements RMB’000			Construction in progress RMB’000			Plant and machinery RMB’000			Office furniture, fittings and equipment RMB’000			Motor and transport vehicles RMB’000			Total RMB’000
Cost
At January 1, 2017		13,730		2,351,646			336,151			5,049,756			192,461			114,425			8,058,169
Additions		—		1,109			226,977			7,464			16,763			9,120			261,433
Disposal of subsidiary		—		(107,632	)		—			(35,490	)		(12,473	)		(255	)		(155,850	)
Disposals		—		(3,310	)		—			(10,064	)		(3,718	)		(5,481	)		(22,573	)
Transfers		—		81,486			(280,358	)		198,872			—			—			—
Write-off		—		(2,385	)		(1,674	)		(53,792	)		(15,307	)		(599	)		(73,757	)
Translation difference		263		1,954			—			88			2,228			(74	)		4,459

At December 31, 2017 and January 1, 2018		13,993		2,322,868			281,096			5,156,834			179,954			117,136			8,071,881
Additions		—		2,971			359,574			12,465			20,671			10,214			405,895
Disposals		—		(2,203	)		(2,258	)		(26,142	)		(4,510	)		(4,917	)		(40,030	)
Transfers		—		16,845			(167,900	)		151,055			—			—			—
Write-off		—		(185	)		(1,056	)		(55,709	)		(3,512	)		(4,843	)		(65,305	)
Translation difference		437		2,249			732			199			485			93			4,195

At December 31, 2018		14,430		2,342,545			470,188			5,238,702			193,088			117,683			8,376,636


Accumulated depreciation and impairment
At January 1, 2017		467		642,286			—			3,089,199			124,831			74,201			3,930,984
Charge for the year		—		78,347			—			325,979			21,202			6,039			431,567
Disposal of subsidiary		—		(26,031	)		—			(15,040	)		(9,695	)		(240	)		(51,006	)
Disposals		—		(1,879	)		—			(10,191	)		(1,798	)		(4,733	)		(18,601	)
Write-off		—		(1,377	)		—			(51,087	)		(15,012	)		(599	)		(68,075	)
Impairment loss		—		—			1,055			19,790			—			—			20,845
Translation difference		17		104			—			62			1,998			(32	)		2,149

At December 31, 2017 and January 1, 2018		484		691,450			1,055			3,358,712			121,526			74,636			4,247,863
Charge for the year		—		77,783			—			338,132			18,832			6,218			440,965	*
Disposals		—		(1,005	)		—			(26,471	)		(3,582	)		(4,555	)		(35,613	)
Write-off		—		(183	)		(1,055	)		(54,686	)		(3,512	)		(4,604	)		(64,040	)
Impairment loss		—		—			—			30,173			—			—			30,173
Translation difference		15		275			—			124			287			45			746

At December 31, 2018		499		768,320			—			3,645,984			133,551			71,740			4,620,094


Net book value
At December 31, 2017		13,509		1,631,418			280,041			1,798,122			58,428			42,500			3,824,018

At December 31, 2018		13,931		1,574,225			470,188			1,592,718			59,537			45,943			3,756,542

US$’000		2,082		235,307			70,281			238,071			8,899			6,868			561,508

In 2018, RMB 15.3 million (US$ 2.3 million) (2017: RMB Nil) and RMB 5.4 million (US$ 0.8 million) (2017: RMB Nil) were capitalized as intangible assets and contract assets, respectively.

An impairment loss of RMB 30.2 million (US$ 4.5 million) (2017: RMB 20.8 million; 2016: RMB 3.3 million) was charged to the consolidated statement of profit or loss under “Cost of sales” for the Group’s property, plant and equipment within the Yuchai segment. The impairment loss for 2016, 2017 and 2018 was due to assets that were not in use.

As of December 31, 2018, there was no property, plant and equipment (2017: RMB 82.7 million) pledged to secure bank facilities.

Finance leases

The carrying value of property, plant and equipment held under finance leases at December 31, 2018 was less than RMB 0.1 million (less than US$ 0.1 million) (2017: RMB 0.1 million). In 2018, there was no addition of property, plant and equipment under finance leases (2017: RMB Nil).