FINANCIAL STATEMENTS

# 32. INTANGIBLE ASSETS (CONTINUED)

<table><tr><td rowspan="2">(in RMB million)</td><td colspan="7">2016</td></tr><tr><td>Goodwill (i)</td><td>Expressway 
operating 
rights</td><td>Prepaid land 
premiums</td><td>Core 
Deposits</td><td>Trademarks</td><td>Software 
and others</td><td>Total</td></tr><tr><td>Cost</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> As at 1 January 2016</td><td>12,460</td><td>11,232</td><td>8,331</td><td>15,082</td><td>2,442</td><td>5,091</td><td>54,638</td></tr><tr><td> Acquisitions of subsidiaries</td><td>–</td><td>–</td><td>914</td><td>–</td><td>7,113</td><td>2,427</td><td>10,454</td></tr><tr><td> Additions</td><td>8,468</td><td>–</td><td>830</td><td>–</td><td>–</td><td>1,234</td><td>10,532</td></tr><tr><td> Disposals of subsidiaries</td><td>–</td><td>–</td><td>–</td><td>–</td><td>(287)</td><td>(75)</td><td>(362)</td></tr><tr><td> Disposals</td><td>(289)</td><td>–</td><td>–</td><td>–</td><td>–</td><td>(124)</td><td>(413)</td></tr><tr><td> As at 31 December 2016</td><td>20,639</td><td>11,232</td><td>10,075</td><td>15,082</td><td>9,268</td><td>8,553</td><td>74,849</td></tr><tr><td>Accumulated amortization</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> As at 1 January 2016</td><td>–</td><td>2,231</td><td>679</td><td>3,393</td><td>245</td><td>3,174</td><td>9,722</td></tr><tr><td> Acquisitions of subsidiaries</td><td>–</td><td>–</td><td>–</td><td>–</td><td>28</td><td>49</td><td>77</td></tr><tr><td> Charge for the year</td><td>–</td><td>486</td><td>58</td><td>754</td><td>73</td><td>752</td><td>2,123</td></tr><tr><td> Disposals of subsidiaries</td><td>–</td><td>–</td><td>–</td><td>–</td><td>–</td><td>(30)</td><td>(30)</td></tr><tr><td> Disposals</td><td>–</td><td>–</td><td>–</td><td>–</td><td>–</td><td>(60)</td><td>(60)</td></tr><tr><td> As at 31 December 2016</td><td>–</td><td>2,717</td><td>737</td><td>4,147</td><td>346</td><td>3,885</td><td>11,832</td></tr><tr><td>Net book value</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> As at 31 December 2016</td><td>20,639</td><td>8,515</td><td>9,338</td><td>10,935</td><td>8,922</td><td>4,668</td><td>63,017</td></tr><tr><td> As at 1 January 2016</td><td>12,460</td><td>9,001</td><td>7,652</td><td>11,689</td><td>2,197</td><td>1,917</td><td>44,916</td></tr></table>

As at 31 December 2017, expressway operating rights with a carrying amount of RMB5,711 million (31 December 2016: RMB8,515 million) were pledged as collateral for long term borrowings amounting to RMB2,939 million (31 December 2016: RMB3,921 million).

As at 31 December 2017, none prepaid land premiums (31 December 2016: RMB1,178 million) were pledged as collateral for long term borrowings (31 December 2016: RMB400 million).

As at 31 December 2017, prepaid land premiums with a carrying amount of 52 million (31 December 2016: RMB84 million) were still in progress of applying for title certificates.

# 32. INTANGIBLE ASSETS (CONTINUED)

# (I) GOODWILL

<table><tr><td rowspan="2">(in RMB million)</td><td colspan="4">2017</td></tr><tr><td>As at 
1 January 2017</td><td>Additions</td><td>Disposals</td><td>As at 
31 December 2017</td></tr><tr><td>Ping An Bank</td><td>8,761</td><td>–</td><td>–</td><td>8,761</td></tr><tr><td>Shanghai Jahwa</td><td>2,502</td><td>–</td><td>–</td><td>2,502</td></tr><tr><td>Mabyorn Group Limited</td><td>2,106</td><td>–</td><td>(275)</td><td>1,831</td></tr><tr><td>Ping An Securities</td><td>328</td><td>–</td><td>–</td><td>328</td></tr><tr><td>Shenzhen Ping An Commercial Property 
 Investment Co., Ltd.</td><td>66</td><td>–</td><td>–</td><td>66</td></tr><tr><td>Beijing Shuangronghui Investment Co., Ltd.</td><td>134</td><td>–</td><td>–</td><td>134</td></tr><tr><td>Shanghai Gezhouba Yangming Property 
 Co., Ltd.</td><td>241</td><td>–</td><td>–</td><td>241</td></tr><tr><td>Ping An E-wallet</td><td>1,073</td><td>–</td><td>–</td><td>1,073</td></tr><tr><td>Autohome Inc.</td><td>5,265</td><td>–</td><td>–</td><td>5,265</td></tr><tr><td>Other</td><td>163</td><td>143</td><td>–</td><td>306</td></tr><tr><td>Total</td><td>20,639</td><td>143</td><td>(275)</td><td>20,507</td></tr><tr><td>Less: Impairment losses</td><td>–</td><td>–</td><td>–</td><td>–</td></tr><tr><td>Net book value</td><td>20,639</td><td>143</td><td>(275)</td><td>20,507</td></tr></table>

<table><tr><td rowspan="2">(in RMB million)</td><td colspan="4">2016</td></tr><tr><td>As at 
1 January 2016</td><td>Increase</td><td>Decrease</td><td>As at 
31 December 2016</td></tr><tr><td>Ping An Bank</td><td>8,761</td><td>–</td><td>–</td><td>8,761</td></tr><tr><td>Shanghai Jahwa</td><td>2,502</td><td>–</td><td>–</td><td>2,502</td></tr><tr><td>Mabyorn Group Limited</td><td>–</td><td>2,106</td><td>–</td><td>2,106</td></tr><tr><td>Ping An Securities</td><td>328</td><td>–</td><td>–</td><td>328</td></tr><tr><td>Shenzhen Ping An Commercial Property 
 Investment Co., Ltd.</td><td>66</td><td>–</td><td>–</td><td>66</td></tr><tr><td>Beijing Shuangronghui Investment Co., Ltd.</td><td>134</td><td>–</td><td>–</td><td>134</td></tr><tr><td>Shanghai Gezhouba Yangming Property 
 Co., Ltd.</td><td>239</td><td>2</td><td>–</td><td>241</td></tr><tr><td>Ping An E-wallet</td><td>–</td><td>1,073</td><td>–</td><td>1,073</td></tr><tr><td>Autohome Inc.</td><td>–</td><td>5,265</td><td>–</td><td>5,265</td></tr><tr><td>Other</td><td>430</td><td>22</td><td>(289)</td><td>163</td></tr><tr><td>Total</td><td>12,460</td><td>8,468</td><td>(289)</td><td>20,639</td></tr><tr><td>Less: Impairment losses</td><td>–</td><td>–</td><td>–</td><td>–</td></tr><tr><td>Net book value</td><td>12,460</td><td>8,468</td><td>(289)</td><td>20,639</td></tr></table>

The primary valuation technique used is cash flow projections based on business plans approved by management covering a three to five year period and a risk adjusted discount rate. Cash flows beyond that period have been extrapolated using a steady growth rate and terminal value. Discount rates used by the Group range from 9% to 16% (2016: 9% to 15%) and growth rates, where applicable, range from 2% to 33% (2016: 2% to 34%).

The results of cash flow projections exceed the carrying amount of each related cash-generating unit or group of units. However, subsequent impairment tests may be based upon different assumptions and future cash flow projections, which may result in an impairment of these assets in the foreseeable future.