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Notes to the Consolidated Financial Statements

31st March 2015

7 EXPENSES BY NATURE

Expenses included in cost of goods sold, selling expenses, administrative expenses and other operating
expenses/income are analysed as follows:

Group
2015 2014
HK$’000 HK$’000
Continuing operation

Amortisation of intangible assets 7,800 8,883
Amortisation of leasehold land and land use rights 292 292
Auditor’s remuneration 2,090 2,280
Cost of inventories 1,924,405 1,717,570
Depreciation of property, plant and equipment 33,369 32,960
Employee benefit expenses
(including directors’ emoluments) (Note 8) 212,827 249,472
Severance pay (Note 8) 19,940 772
Gain on disposal of property, plant and equipment (6,888) (5,215)
Impairment of property, plant and equipment 4,964 2
Operating lease rental in respect of land and buildings 30,439 33,401
Research and development costs 13,858 16,496

8 EMPLOYEE BENEFIT EXPENSES (INCLUDING DIRECTORS’ EMOLUMENTS)

Group

2015 2014
HK$’000 HK$’000

Continuing operation

Wages and salaries 195,910 231,550
Pension costs – defined contribution retirement schemes
(Note a) 2,554 2,609
Other staff benefits 14,363 15,313
212,827 249,472

Severance pay 19,940 772

ALCO HOLDINGS LIMITED ANNUAL REPORT 2015 63