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Notes to the Consolidated Financial Statements

31st March 2017

6 OTHER INCOME

2017 2016
HK$’000 HK$’000

Fair value gain on investment properties (Note 15) 11,068 60
Rental income from investment properties 2,979 8,373
Amortisation of deferred gain (Note 29) 17,450 1,454
Others 1,525 242

33,022 10,129

7 EXPENSES BY NATURE

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

2017 2016
HK$’000 HK$’000

Amortisation of intangible assets (Note 17) 7,800 7,800
Amortisation of leasehold land and land use rights (Note 16) 281 289
Auditor’s remuneration 2,200 2,100
Cost of inventories 1,628,633 2,149,880
(Write-back of)/provision for impairment of inventories (17,440) 1,924
Depreciation of property, plant and equipment (Note 14) 37,326 34,645
Employee benefit expenses (including directors’ emoluments)
(Note 8) 233,353 232,058
Severance pay (Note 8) 6,550 13,279
Loss/(gain) on disposal of plant and equipment 662 (40)
Operating lease rental in respect of land and buildings 33,174 29,902
Research and development costs 26,443 17,420

78 ALCO HOLDINGS LIMITED ANNUAL REPORT 2017