8.	PROPERTY, PLANT AND EQUIPMENT

 

		2014				2014				2013
		US$				RMB				RMB
		(In thousands)
Buildings			53,030				324,494				317,930
Machinery and equipment			47,730				292,060				221,203
Motor vehicles			4,812				29,443				27,037
Furniture, fixtures and office equipment			9,710				59,413				104,649
			115,282				705,410				670,819
Less: accumulated depreciation			(41,306	)			(252,751	)			(209,887	)
Property, plant and equipment, net			73,976				452,659				460,932

The Group’s buildings are located in the PRC and United States and the land on which the Group’s buildings are situated in the PRC are State-owned.  The property in the U.S. is owned by Jinpan Realty, LLP, a wholly owned subsidiary of Jinpan USA. Depreciation expense in 2014, 2013 and 2012 was RMB 42.9 million (US$ 7.0 million), RMB 40.2 million (US$ 6.5 million) and RMB 33.0 million (US$ 5.2 million) respectively. The depreciation was included both in cost of goods sold and selling and administrative expense.

 

Construction in progress represents labors cost, materials in connection with the construction of new facility and installation of manufacturing equipment. At December 31, 2014 and 2013 the balance of construction in progress was RMB 16.5 million (US$ 2.7 million) and RMB 23.1 million (US$ 3.8 million) respectively. Interest related to construction in progress of RMB nil and RMB 4.7 million ( US$ 0.8 million) was capitalized for the years ended December 31, 2014 and 2013 respectively.