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## NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 

(RMB AND US$ AMOUNTS EXPRESSED IN THOUSANDS, EXCEPT PER SHARE DATA) 

## 12. Prepaid operating leases (cont’d) 

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As of December 31, 2013, prepaid operating leases with a carrying amount of Rmb 81.1 million (US$13.2 million) (2012: Rmb 84.4 million) are pledged to secure bank facilities. 

## 13. Goodwill 

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Goodwill represents the excess of costs over fair value of net assets of businesses acquired. 

Goodwill acquired through business combinations have been allocated to two cash-generating units for impairment testing as follows: 

l Yuchai 

l Yulin Hotel. Goodwill allocated to Yulin Hotel was fully impaired in 2008. 

