Annual Report 2020

188 Transport International Holdings Limited 2020 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): 2020 2019 $’ 000 $’ 000 (a) Staff costs Defined benefit retirement plan expense (note 20(e)) 43,508 56,575 Contributions to defined contribution retirement plans 173,862 170,571 Movements in provision for long service payments (note 29) 5,241 9,383 Total retirement cost 222,611 236,529 Equity-settled share-based payment expenses 600 (11) Salaries, wages and other benefits 4,119,913 4,280,850 4,343,124 4,517,368 Less: staff costs included in cost of mask production (3,150) – 4,339,974 4,517,368 (b) Finance costs Interest on bank loans 51,588 68,534 Interest on lease liabilities (note 23(d)) 161 200 Total interest expense on financial liabilities not at FVPL 51,749 68,734 Less: interest expense capitalised into investment property under development* (24,816) (36,552) 26,933 32,182 * The borrowing costs have been capitalised at the average interest rate of 1.45% per annum (2019: 2.33% per annum). 2020 2019 $’ 000 $’ 000 (c) Rentals received and receivable from investment properties Gross rentals (note) (72,847) (66,972) Less: direct outgoings 12,190 11,332 (60,657) (55,640) Note: Included contingent rental income of $128,000 (2019: $17,000).