7.                          PROPERTY AND EQUIPMENT, NET

 

Property and equipment, including those held under capital leases, consists of the following:

 

		December 31,
		2012		2013
		RMB’000		RMB’000		US$’000
At cost:
Optical fibers		13,100		13,100		2,164
Computer equipment		424,808		514,059		84,918
Furniture and fixtures		7,538		9,185		1,517
Leasehold improvements		15,499		19,725		3,258
Motor vehicles		4,206		6,295		1,040
		465,151		562,364		92,897
Less: accumulated depreciation		(285,860	)	(321,662	)	(53,135	)
Less: accumulated impairment		(52	)	(52	)	(9	)
		179,239		240,650		39,753

 

For the years ended December 31, 2011, 2012 and 2013, depreciation expenses (excluding Shanghai JNet) were RMB67,345,000 RMB59,890,000 and RMB59,876,000 (US$9,891,000), respectively, and were included in the following captions:

 

		For the years ended December 31,
		2011		2012		2013
		RMB’000		RMB’000		RMB’000		US$’000
Cost of revenue		63,318		51,911		45,581		7,529
Sales and marketing expenses		855		712		280		46
General and administrative expenses		1,073		1,171		5,706		943
Research and development expenses		2,099		6,096		8,309		1,373
		67,345		59,890		59,876		9,891

 

The Company accounted for the leases of certain computer equipment and optical fibers as capital leases as the respective lease contracts included a bargain purchase option. The carrying amounts of the Company’s property and equipment held under capital leases at respective balance sheet dates were as follows:

 

		December 31,
		2012		2013
		RMB’000		RMB’000		US$’000
Optical fibers		13,100		13,100		2,164
Computer equipment		47,243		—		—
		60,343		13,100		2,164
Less: accumulated depreciation		(39,662	)	(3,875	)	(640	)
		20,681		9,225		1,524

 

Depreciation of property and equipment held under capital leases was RMB8,988,000, RMB8,219,000 and RMB655,000 (US$108,000) for the years ended December 31, 2011, 2012 and 2013, respectively.