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5. Expenses by nature
Expenses included in cost of goods sold, selling expenses, administrative expenses and
other operating expenses are analysed as follows:
Six months ended
30 September
2019 2018
HK$’000 HK$’000

Amortisation of intangible assets – 6,770
Depreciation of property, plant and equipment 23,334 23,648
Depreciation of right-of-use assets 13,291 –
Employee benefit expenses 109,782 114,184
Severance pay 8,976 2,017

6. Income tax (expense)/credit

Hong Kong profits tax has been provided at the rate of 16.5% (2018: 16.5%) on the
estimated assessable profits for the period. Corporate income tax on profits generated
from subsidiaries operating in the PRC has been calculated at 25% in accordance
with the relevant PRC tax law and regulations. Taxation on overseas profits has been
calculated on the estimated assessable profits for the period at the rates of taxation
prevailing in the countries in which the Group operates.

Six months ended
30 September
2019 2018
HK$’000 HK$’000

Current income tax
– Hong Kong profits tax – (20)
– PRC corporate income tax (918) (1,554)
– Overseas corporate income tax – (48)
– Under provision in prior years – (35)
Deferred income tax (expense)/credit (276) 4,711

Income tax (expense)/credit (1,194) 3,054

14 ALCO HOLDINGS LIMITED Interim Report 2019