Annual Report 2011 - Goodbaby International Holdings Limited

NOTES TO FINANCIAL STATEMENTS
31 December 2011
8. FINANCE COSTS
Continuing operations:
Group
/ 105
2011 2010
(HK$’000) (HK$’000)
– Interest expense on bank loans and borrowings 11,617 18,341
9. PROFIT BEFORE TAX
The Group’s profit before tax from continuing operations is arrived at after charging/(crediting):
Group
2011 2010
(HK$’000) (HK$’000)
Cost of inventories recognised as expenses 3,477,403 3,085,972
Cost of service provided 3,606 877
Depreciation of items of property, plant and equipment 73,194 69,445
Amortisation of intangible assets 3,492 2,827
Amortisation of land lease payment 2,793 1,798
Research and development costs (“R&D”) 118,479 79,421
Lease payments under operating leases
in respect of properties 25,215 29,471
Auditors’ remuneration (note (a)) 4,247 7,490
Employee benefit expense
(including directors’ remuneration):
Wages, salaries and other benefits 678,397 560,198
Pension scheme contributions 22,978 20,506
701,375 580,704
Net foreign exchange (gains)/losses (52,856) 13,321
Recognition/(reversal) for impairment of receivables 245 (604)
Write-down of inventories 1,032 62
Product warranties
Fair value (gains)/losses on
1,864 11,968
derivative financial instruments
Loss on disposal of items of property,
(13,947) 2,885
plant and equipment 1,732 634
Bank interest income 3,749 1,163
Note (a): Auditors’ remuneration for the year ended 31 December 2010 included a fee of HK$4,393,000
related to the listing of the Company’s shares on the Stock Exchange.