PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2018

Disclosure of detailed information about property, plant and equipment [abstract]

Disclosure of property, plant and equipment [text block]

12.

PROPERTY, PLANT AND EQUIPMENT

	Buildings RMB'000		Plant and machinery RMB'000		Motor vehicles RMB'000			Office equipment RMB'000		Total RMB'000
Cost
At January 1,2017		344,758		745,358		4,915			1,824		1,096,855
Additions		4,872		684		-			62		5,618
Disposals		-		-		(690	)		-		(690	)
At December 31, 2017		349,630		746,042		4,225			1,886		1,101,783
Additions		-		-		-			-		-
Disposals		-		-		-			-		-
At December 31,2018		349,630		746,042		4,225			1,886		1,101,783

Accumulated depreciation
At January 1,2017		46,275		325,954		4,186			1,498		377,913
Depreciation charge		1,759		13,374		38			20		15,191
Disposals		-		-		(504	)		-		(504	)
At December 31, 2017		48,034		339,328		3,720			1,518		392,600
Depreciation charge		1,263		10,054		28			18		11,363
At December 31, 2018		49,297		349,382		3,748			1,536		403,963

Impairment
At January 1,2017		241,838		345,664		613			285		588,400
Impairment losses recognized in profit or loss		18,230		15,398		19			6		33,653
Disposals		-		-		(186	)		-		(186	)
At December 31, 2017		260,068		361,062		446			291		621,867
Impairment losses recognized in profit or loss		40,265		35,598		31			13		75,907
At December 31, 2018		300,333		396,660		477			304		697,774

Carrying amount
At December 31, 2017		41,528		45,652		59			77		87,316
At December 31, 2018		-		-		-			46		46

All property, plant and equipment held by the Company are located in the PRC. The Company’s buildings are situated on land under medium-term land use rights.

For the buildings owned collectively by the Company and other three unrelated companies, the cost of buildings are stated according to the amounts paid by the Company for its part of buildings, which represent the Company’s interests in the buildings. Buildings are depreciated over their expected useful lives of 40 years. These buildings’ cost was RMB 2,913,000, and accumulated depreciation of RMB 1,226,000 and RMB 1,226,000 as of December 31, 2018 and 2017, respectively, and an impairment allocation of RMB 1,687,000 and RMB 1,687,000 as of December 31, 2018 and 2017, respectively. No property, plant and equipment was pledged to secure the Company interest-bearing bank borrowings at December 31, 2018 and 2017.

At the end of the reporting period, the Company assessed the recoverable amount of property, plant and equipment, and determined that carrying amount was impaired by RMB75,907,000 (2017: RMB33,653,000).

Loss (gain) on disposal of property, plant and equipment in 2018, 2017 and 2016 was nil, RMB 70,000 gain, and RMB6,246,000 loss, respectively.