Annual Report 2019

174 Transport International Holdings Limited 2019 Annual Report Notes to the Financial Statements (Expressed in Hong Kong dollars unless otherwise indicated) 5 Profit before taxation Profit before taxation is arrived at after charging/(crediting): 2019 2018 (Note) $’ 000 $’ 000 (a) Staff costs Defined benefit retirement plan expense (note 19(e)) 56,575 59,709 Contributions to defined contribution retirement plans 170,571 148,001 Movements in provision for long service payments (note 28) 9,383 7,953 Total retirement cost 236,529 215,663 Equity-settled share-based payment expenses (11) 853 Salaries, wages and other benefits 4,280,850 3,962,652 4,517,368 4,179,168 (b) Finance costs Interest on bank loans 68,534 50,571 Interest on lease liabilities (note 22(d)) 200 – Total interest expense on financial liabilities not at fair value through profit or loss 68,734 50,571 Less: interest expense capitalised into investment property under development* (36,552) (26,894) 32,182 23,677 * The borrowing costs have been capitalised at the average interest rate of 2.33% per annum (2018: 1.69% per annum). 2019 2018 $’ 000 $’ 000 (c) Rentals received and receivable from investment properties Gross rentals (note) (66,972) (69,830) Less: direct outgoings 11,332 9,680 (55,640) (60,150) Note: Included contingent rental income of $17,000 (2018: $Nil).