12.

Investment property


	31.12.2017			31.12.2018			31.12.2018
	RMB’000			RMB’000			US$’000

Cost
At January 1		31,776			32,944			4,924
Translation difference		1,168			1,028			154

At December 31		32,944			33,972			5,078


Accumulated depreciation
At January 1		24,478			25,510			3,813
Charge for the year		248			884			132
Translation difference		784			813			122

At December 31		25,510			27,207			4,067


Net carrying amount		7,434			6,765			1,011

Fair value		10,557			10,886			1,627

Consolidated statements of profit or loss:
Rental income from an investment property		372			437			65
Direct operating expenses (including repairs, maintenance and depreciation expense) arising from the rental generating property		(508	)		(314	)		(47	)

The Group has no restrictions on the realizability of its investment property and no contractual obligations to purchase, construct or develop investment property or for repairs, maintenance or enhancement.

The fair value is determined by independent professional qualified valuer. The fair value of investment property is determined by the market comparison and cost methods. In valuing the investment property, due consideration is given to factors such as location and size of building, building infrastructure, market knowledge and historical comparable transactions to arrive at their opinion of value.

The following table shows information about fair value measurement of the investment property using significant unobservable inputs (Level 3):

Valuation techniques

Unobservable input

Inter-relationship between key

unobservable inputs and fair

value measurement

Market comparison and cost
method

Comparable price:

- RMB 156 to RMB 428

(US$23 to US$64) per square foot

The estimated fair value increases with higher comparable price

Market comparison and cost
method

Comparable price:

- RMB 151 to RMB 415

per square foot

The estimated fair value increases with higher comparable price