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## NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (RMB AND US$ AMOUNTS EXPRESSED IN THOUSANDS, EXCEPT PER SHARE DATA) 

## 13. Goodwill (cont’d) 

## Sensitivity to changes in assumptions (cont’d) 

Growth rate assumptions – Management recognizes that the speed of technological change and the possibility of new entrants can have a significant impact on growth rate assumptions. A reduction to 2.95% in the long-term growth rate in Yuchai unit would result in impairment. 

With regard to the assessment of value in use of the Yuchai unit, management believes that no reasonably possible change in any of the above key assumptions would cause the recoverable amount to materially fall below the carrying value of the unit. 

## 14. Intangible assets 

<img src='content_image/221694.jpg'>

The development costs are related to intellectual property right, technical skill and knowledge of building a new technology of heavy duty diesel engines. 

## 15. Other financial liabilities 

## (a) Other liabilities 

<img src='content_image/221693.jpg'>

