Annual Report - QuamIR

Notes to the Consolidated Financial Statements (Continued)
8 Operating profit/(loss)
Operating profit/(loss) is arrived at after (charging)/crediting the following
items:
8
2011 2010
HK$ Million HK$ Million
Employee benefit expenses (Note 11) 11 (157.0) (154.8)
Employee share option benefits, net (Note 11) 11 (4.7) 4.8
Amortisation
– prepaid land lease payments (Note 17) 17 (38.0) (40.8)
– intangible assets (Note 19) 19 (8.1) (7.5)
Depreciation of property, plant and equipment
(Note 18)
18
(97.7) (70.9)
Cost of inventories (13.9) (13.5)
Cost of properties sold (220.5) (163.9)
Direct operating expenses arising from
investment properties that generate
rental income
(3.1) (2.9)
Auditor’s remuneration – audit service (6.5) (6.9)
Operating lease payments (17.7) (12.8)
Net exchange (loss)/gain (20.2) 1.0
Research and development expense (12.2) –
Write down of inventories (2.9) –
9 Finance income and costs
9
2011 2010
HK$ Million HK$ Million
Interest expenses:
Bank loans wholly repayable within 5 years (90.2) (82.4)
Bank loans not wholly repayable within 5 years (113.5) (117.8)
Other loans wholly repayable within 5 years (3.1) (39.0)
Other loans not wholly repayable within 5 years (6.0) (10.5)
Less: capitalised in construction-in-progress
and properties under development
(212.8) (249.7)
20.4 24.1
Finance costs (192.4) (225.6)
Finance income 29.0 18.9
Net finance costs (163.4) (206.7)
Note: The capitalisation rate applied to funds borrowed was between 5.79% –
6.14% (2010: 5.94% – 6.40%) per annum during the year ended 31
December 2011.
5.79% 6.14%5.94%
6.40%
128 HKC (Holdings) Limited • Annual Report 2011