INTANGIBLE ASSETS, NET

12 Months Ended

Dec. 31, 2018

12.

INTANGIBLE ASSETS, NET

Intangible assets consist of the following:

	Customer relationship intangibles			Operating lease intangibles			Operating License intangibles			Favorable lease intangibles			Others			Total
	RMB			RMB			RMB			RMB			RMB			RMB
Intangible assets, net at January 1, 2017		14,285			801			-			-			2,102			17,188
Addition of software		-			-			-			-			749			749
Disposal of centers		(3,117	)		(194	)		-			-			-			(3,311	)
Amortization expenses		(4,399	)		(301	)		-			-			(1,529	)		(6,229	)
Intangible asset impairment		(598	)		-			-			-			-			(598	)
Intangible assets, net at December 31, 2017		6,171			306			-			-			1,322			7,799

Acquisition of subsidiaries (note 4)		-			-			437,350			16,010			653			454,013
Addition of software		-			-			-			-			1,779			1,779
Disposal of centers		(2,586	)		-			-			-			-			(2,586	)
Amortization expenses		(558	)		(52	)		(2,056	)		(318	)		(1,177	)		(4,161	)
Intangible assets, net at December 31, 2018		3,027			254			435,294			15,692			2,577			456,844
Intangible assets, net at December 31, 2018, in US$		440			37			63,311			2,282			375			66,445


At December 31, 2018
Intangible assets, cost		45,460			14,732			437,350			16,010			16,179			529,731
Less: accumulated amortization		(41,835	)		(14,478	)		(2,056	)		(318	)		(13,602	)		(72,289	)
Less: intangible asset impairment		(598	)		-			-			-			-			(598	)
Intangible assets, net at December 31, 2018		3,027			254			435,294			15,692			2,577			456,844

Amortization expenses for intangibles were RMB

10,760

RMB

6,229

and RMB4,161

(US$

605

) for the years ended December 31, 2016, 2017 and 2018, respectively. Impairment loss on intangible assets was RMB

9,810

RMB

598

and nil for network operating segment for the years ended

December 31, 2016, 2017 and 2018, respectively. The estimated annual amortization expenses for the above intangible assets for each of the five succeeding years are as follows:

	Amortization
	RMB		US$
2019		11,162		1,623
2020		22,000		3,200
2021		23,794		3,461
2022		23,348		3,396
2023		23,140		3,366