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Glorious Property
138
Annual Report 2011
Notes to the Consolidated Financial Statements
(Continued)
31 December 2011
27 Expenses by Nature
Profit before income tax is stated after charging the following:
RMB’000
2011
2010
Auditors’ remuneration
7,275
7,307
Advertising costs
132,692
122,717
Business taxes and other levies
535,993
397,139
Costs of properties sold
5,252,253
3,297,795
Depreciation (note 6)
19,770
11,694
Amortisation of intangible asset (note 8)
527
527
Staff costs — excluding directors’ emoluments (note 29)
123,302
121,531
Donations
7,477
597
Rental expenses
41,586
47,209
Losses on disposals of property, plant and equipment
322
130
28 Finance Costs
RMB’000
2011
2010
Interest expenses for borrowings wholly repayable within 5 years:
— Bank borrowings
1,165,217
676,512
— Promissory Notes
—
24,335
— Shanghai Bay Arrangement
348,267
376,073
— Senior Notes due 2015
258,725
47,841
— others
14,021
4,089
Interest expenses for borrowings wholly repayable after 5 years:
— Bank borrowings
44,783
47,502
Total interest expenses
1,831,013
1,176,352
Less: interest capitalised on qualifying assets
(1,828,487)
(1,172,602)
2,526
3,750
Borrowing costs of the loans used to finance the property development projects of the Group have been capitalised
at a capitalisation rate of 11.8% during the year (2010: 10.7%).
29 Staff Costs — Excluding Directors’ Emoluments
RMB’000
2011
2010
Wages and salaries
86,490
85,111
Retirement scheme contribution
10,508
9,059
Staff welfare
10,145
6,999
Other allowances and benefits
8,667
7,906
Share-based compensation expenses
7,492
12,456
123,302
121,531