Annual Report 2022

194 Transport International Holdings Limited 2022 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): 2022 2021 $’000 $’000 (a) Staff costs Defined benefit retirement plan expense (note 20(e)) 22,662 53,786 Contributions to defined contribution retirement plans 166,868 163,327 Movements in provision for long service payments (note 29) 8,919 3,280 Total retirement cost 198,449 220,393 Equity-settled share-based payment expenses 1,194 4,108 Salaries, wages and other benefits 3,805,601 3,832,128 4,005,244 4,056,629 Less: staff costs included in cost of mask production (2,153) (2,450) 4,003,091 4,054,179 (b) Finance costs Interest on bank loans 81,164 28,932 Interest on lease liabilities (note 23(d)) 92 94 Total interest expense on financial liabilities not at FVPL 81,256 29,026 Less: interest expense capitalised* (43,646) (14,676) 37,610 14,350 * The borrowing costs have been capitalised at the average interest rate of 1.92% per annum (2021: 0.85% per annum). 2022 2021 $’000 $’000 (c) Rentals received and receivable from investment properties Gross rentals (note) (56,255) (51,694) Less: direct outgoings 12,127 12,855 (44,128) (38,839) Note: Included contingent rental income of $61,000 (2021: $86,000). 2022 2021 $’000 $’000 (d) Other items Depreciation # – owned property, plant and equipment 1,116,695 1,011,898 – right-of-use assets 6,773 6,678 Write-down of spare parts 454 2,531 Provision for passenger reward (note a) – – Provision for toll exemption fund (note b) 130,304 149,559 Auditors’ remuneration – audit services 4,378 4,103 – other services 961 985