Operating lease commitments

 

Future minimum payments under non-cancelable operating leases with initial terms in excess of one year consist of the following at December 31, 2017:

 

Payments under operating leases are expensed on a straight-line basis over the periods of their respective leases. The terms of the leases do not contain material rent escalation clauses or contingent rents. For the years ended December 31, 2015, 2016 and 2017, total rental expenses for all operating leases amounted to RMB15,805, RMB17,765 and RMB16,436 (US$2,526) respectively.

 

The Group has commitments to purchase certain medical equipment of RMB426,293 (US$65,520) at December 31, 2017, which are scheduled to be paid within following years.

 

 

As of December 31, 2017, the Group has recognized approximately RMB70,992 (US$10,911) as an accrual for unrecognized tax positions. The final outcome of the tax uncertainty is dependent upon various matters including tax examinations, interpretation of tax laws or expiration of status of limitation. However, due to the uncertainties associated with the status of examinations, including the protocols of finalizing audits by the relevant tax authorities, there is a high degree of uncertainty regarding the future cash outflows associated with these tax uncertainties.