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Property and Equipment, Net
 12 Months Ended
Dec. 31, 2023
Property and Equipment, Net [Abstract]  
PROPERTY AND EQUIPMENT, NET

6. PROPERTY AND EQUIPMENT, NET

 

Property and equipment, net consisted of the following:

 

   As of 
   December 31,   December 31, 
   2022   2023 
   RMB   RMB   US$ 
Motor vehicles   1,538,213    1,485,841    209,785 
Electronic equipment   1,783,988    2,033,203    287,066 
Machinery   1,119,594    1,139,270    160,853 
Other equipment   1,041,034    1,413,753    199,607 
Construction in progress   
-
    655,987    92,617 
Subtotal   5,482,829    6,728,054    949,928 
Less: accumulated depreciation   (2,869,565)   (3,200,069)   (451,815)
    2,613,264    3,527,985    498,113 
Less: impairment charges   
-
    (2,404,009)   (339,420)
Property and equipment, net   2,613,264    1,123,976    158,693 

 

Depreciation expense was RMB545,048, RMB685,714 and RMB881,076 (US$124,398) for the years ended December 31, 2021, 2022 and 2023, respectively.

 

During the year ended December 31, 2023, there was a triggering event of negative cash flow and operating losses at the freight forwarding and warehousing asset group level that indicated the carrying amounts of the Company’s long-lived assets may not be recoverable. In accordance with ASC 360, with regard to the long-lived assets, the Company performed an undiscounted cash flow analysis and concluded that the carrying value of the asset group was not recoverable. Accordingly, the Company then performed analysis to estimate the fair value of the other long -lived assets and recognized an impairment charge within operating expenses of RMB2.4 million (US$0.3 million) against the property and equipment by the amount by which the carrying value of the asset group’s long-lived assets exceeded their estimated fair value for the year ended December 31, 2023. Key assumptions utilized in the determination of far value include expected future cash flows and working capital requirements. While the Company believe the expectations and assumptions about the future are reasonable, they are inherently uncertain. No impairment charges were recognized during the year ended December 31, 2022.