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PROPERTY AND EQUIPMENT, NET
 12 Months Ended
Dec. 31, 2023
PROPERTY AND EQUIPMENT, NET  
PROPERTY AND EQUIPMENT, NET

8.

PROPERTY AND EQUIPMENT, NET

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As at December 31

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2022

    

2023

    

2023

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RMB

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RMB

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US$

Electronic equipment

 

5,421,548

 

5,484,660

 

772,498

Office equipment and fixtures

 

15,376

 

11,207

 

1,578

Data center machinery and equipment

 

319,652

 

315,086

 

44,379

Building

 

161,428

 

128,793

 

18,140

Construction in progress

 

3,459

 

335,162

 

47,206

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5,921,463

 

6,274,908

 

883,801

Less: accumulated depreciation

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(3,788,469)

 

(4,088,763)

 

(575,889)

Property and equipment, net

 

2,132,994

 

2,186,145

 

307,912

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Depreciation expense for the years ended December 31, 2021, 2022 and 2023 was RMB783,305, RMB983,509 and RMB760,023 (US$107,047), respectively.

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For the year ended December 31, 2022, the Group performed recoverability tests using the undiscounted cash flows method, and concluded that the long-lived assets were recoverable. As such, the Group did not recognize any impairments of long-lived assets for the year ended December 31, 2022.

In consideration of the continuous declines in public cloud service revenue as result of the Group’s partial scale-down of its content delivery network (“CDN”) services, the Group performed recoverability tests and the results indicated that long-lived assets associated with the public cloud asset group were not recoverable during the year ended December 31, 2023. As the estimated fair value of these assets was below their carrying value, the Group recognized a total of RMB653,670 (US$92,067) of impairment loss on its long-lived assets for the year ended December 31, 2023. The Group determines the fair value of the asset group using the discounted cash flows method with the assistance of an independent third-party valuation firm. The significant assumptions used in the discounted cash flows included revenue growth rates for public cloud services, IDC costs, and discount rate, all of which were classified as level 3 inputs under the fair value hierarchy.

The Group performed a recoverability test for the public cloud asset group as of December 31, 2023, and no further impairment is considered necessary.