
		As of December 31,
		2024		2025
		RMB		RMB		US$
Store operating equipment		3,216,933		4,148,162		592,062
Leasehold improvements		3,140,345		4,378,574		624,948
Office equipment and others		405,266		506,532		72,297
Office buildings		689,445		859,163		122,627
Assets subject to operating leases		346,223		346,223		49,416
Mechanical equipment		255,576		263,609		37,625
Construction in progress		152,980		380,666		54,331
		8,206,768		10,882,929		1,553,306
Less: accumulated depreciation		(3,115,060)		(4,578,884)		(653,538)
Less: impairment		(25,805)		(14,059)		(2,007)

		5,065,903		6,289,986		897,761

Depreciation and amortization expenses in relation to property and equipment was RMB604.0 million, RMB1,187.8 million and RMB1,554.4 million (US$221.9 million) for the years ended December 31, 2023, 2024 and 2025, respectively.

In June 2018, the Group entered into a project cooperation agreement and a strategic cooperation agreement with Xiamen municipal government and UCAR Inc. (collectively as the “Tri-Party Agreement”), pursuant to which the Group acquired the new headquarters building under favorable pricing terms that came with commitments, including meeting certain requirements around tax contribution, operating performance and capital investments. On February 19, 2024, the Group entered into a new cooperation agreement with Xiamen municipal government, pursuant to which the Group is entitled to obtain real property certificates of the new headquarters in batches over a five-year term from 2022 to 2026 upon satisfaction of certain requirements of tax contribution, operating performance and capital investments from 2022 to 2026. The Group has successfully fulfilled its commitments under the new agreement for the years ended December 31, 2023, 2024, and 2025. As of the date of this annual report, the Group has obtained a portion of the real property ownership certificates and is in the process of obtaining the remaining certificates.

During the year ended December 31, 2023, impairment loss for property and equipment of RMB5.2 million was provided, which was mainly related to a full impairment for assets in relation to Luckin Tea due to the permanent closure of related business. During the year ended December 31, 2024 and 2025, impairment loss for property and equipment of RMB8.9 million and RMB8.5 million (US$1.2 million) respectively, was provided, which was mainly related to store operating equipment and others, generally for the unrecoverable damaged coffee machines.