PROPERTY, PLANT AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2011

10.

PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment consist of the following:

	As at December 31,
	2010			2011			2011
	RMB			RMB			US$

Buildings		170,002			170,002			27,011
Medical equipment		767,001			952,579			151,350
Electronic and office equipment		5,260			5,200			826
Motor vehicles		424			941			150
Leasehold improvement and building improvement		4,681			5,400			857
Construction in progress		110,808			146,894			23,339
Total		1,058,176			1,281,016			203,533
Less: accumulated depreciation		(150,840	)		(209,134	)		(33,228	)

		907,336			1,071,882			170,305
Less: impairment		-			(3,179	)		(505	)
		907,336			1,068,703			169,800

Depreciation expenses were approximately RMB51,681, RMB82,889 and RMB 94,837(US$15,068) for the years ended December 31, 2009, 2010 and 2011, respectively.

As at December 31, 2010 and 2011, certain of the Group’s property, plant and equipment with a net book value of approximately RMB173,517 and RMB171,333 (US$27,222) were pledged as security for bank borrowings of RMB77,086 and RMB32,933 (US$5,232), respectively.

As at December 31, 2010 and 2011, the Company held equipment under operating lease contracts with customers with an original cost of RMB767,001 and RMB948,078 (US$150,634) and accumulated depreciation of RMB140,509 and RMB187,776 (US$29,835), respectively.

During the year ended December 31, 2011, the Group identified impairment indicators such as insufficient gross margin in certain medical equipment leasing arrangements and with respect to a piece of medical equipment not currently in use. It was assessed that the future undiscounted cash flows for the equipment would be lower than its carrying amount. The Group assessed the fair value of the equipment by reference to the market value for similar assets and recognized an impairment charge, being the difference between the carrying value and the fair value of the equipment, amounting to RMB3,179 (US$505). The impairment charges are included in the caption of “Asset impairment” in the consolidated statements of operations.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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