Notes on the Accounts
Hong Kong Ferry (Holdings) Co. Ltd. 39
4. PROFIT/(LOSS) FROM ORDINARY ACTIVITIES BEFORE TAXATION
Profit/(loss) from ordinary activities before taxation is arrived at after charging/(crediting):
1999
HK$'000
1998
HK$'000
(a) Finance cost:
Interest on bank advances and other borrowings
repayable within five years
34,562
24,750
Other borrowing costs
1,000
35,562
24,750
Less: Borrowing costs capitalised into properties
under development
(28,590)
6,972
24,750
The borrowing costs have been capitalised at a rate of 7.65% - 8.5% per annum in respect of
properties under development.
(b) Other items:
1999
HK$'000
1998
HK$'000
Cost of inventories
183,086
209,200
Staff costs including retirement costs of
HK$11,688,000 (1998: HK$17,128,000)
252,077
382,855
Auditors' remuneration
1,521
1,794
Depreciation
48,253
123,111
Operating lease charges in respect of
- premises
2,381
2,649
- vessels
19,297
19,284
Provision for diminution in value of listed investments
5,377
Rental receivable from investment properties
net of outgoings of HK$12,805,000 (1998:
HK$13,801,000)
(43,171)
(64,747)
Interest income
(50,445)
(121,967)
Rental receivable from operating leases, other than those
relating to investment properties, net of outgoings
(13,013)
(25,414)
Dividend income from listed investments
(1,728)
(2,401)