PROPERTY, PLANT AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2016

PROPERTY, PLANT AND EQUIPMENT, NET [Abstract]

PROPERTY, PLANT AND EQUIPMENT, NET

15. PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment used in continuing operation and related accumulated depreciation are as follows:

	As of December 31,
	2015		2016
	RMB		RMB
Buildings		843,434,718		1,429,839,237
Machinery and equipment		4,109,495,144		4,886,493,031
Motor vehicles		32,196,288		34,434,859
Furniture, fixture and office equipment		88,284,199		136,797,799
		5,073,410,349		6,487,564,926
Less: Accumulated depreciation		(1,731,339,034)		(2,028,991,593)
Less: Impairment		(35,263,789)		(51,439,373)
Subtotal		3,306,807,526		4,407,133,960
Construction in progress		459,628,038		331,547,393
Property, plant and equipment, net		3,766,435,564		4,738,681,353

Depreciation expenses were RMB348,022,445, RMB392,197,508 and RMB449,079,007 for the years ended December 31, 2014, 2015 and 2016, respectively.

Construction in progress primarily represents the construction of new production line. Costs incurred in the construction are capitalized and transferred to property and equipment upon completion, at which time depreciation commences.

In the years ended December 31, 2014, 2015 and 2016, the Group recorded impairment of RMB6,217,151, nil and RMB 125,524,021 related to the retirement of certain equipment in production lines that had become obsolete.

As of December 31, 2015 and 2016, certain property, plant and equipment with net book value amounting of RMB2,063,567,296 and RMB 1,899,053,100 are pledged as collateral for the Group’s borrowings (Note 22).