Fixed assets and depreciation Fixed assets refer to buildings，constructions，machinery，motor vehicles and other equipment related to the production and operation of the Company with useful lives of over one Fixed assets also include other non-production equipment with individual values of over RMB 2，000 and useful lives in excess of 2 Fixed assets were initially recorded at cost when Subsequent expenditures on fixed assets are included in the carrying amount of the assets only if it is probable that the economic benefits associated with the assets will flow to the Company and the amount is in excess of the original expectations， such as extending the service life of the fixed assets， significantly improving the product quality， or substantially lowering the product However，the increased book value of the fixed asset does not exceed its net recoverable Except for the aforementioned circumstances，subsequent expenditures on fixed assets are expensed when
