8.1

Depreciation and amortization, shipping and handling expenses

Depreciation of property, plant and equipment, investment property and amortization of prepaid operating leases are included in the following captions.


	31.12.2016		31.12.2017		31.12.2018		31.12.2018
	RMB’000		RMB’000		RMB’000		US$’000
Cost of sales		322,289		307,102		312,769		46,751
Research and development expenses		56,812		48,291		26,751		3,999
Selling, general and administrative expenses		99,059		88,788		94,365		14,105

		478,160		444,181		433,885		64,855

Sales related shipping and handling expenses not separately billed to customers are included in the following caption:

31.12.2016

31.12.2017

31.12.2018

RMB’000

US$’000

Selling, general and administrative expenses

159,023

208,197

211,971

31,684

8.2

(a) Other operating income


	31.12.2016		31.12.2017		31.12.2018		31.12.2018
	RMB’000		RMB’000		RMB’000		US$’000
			(Restated)
Interest income		56,983		105,421		147,244		22,009
Dividend income from quoted equity securities		943		2,532		1,992		298
Gain on disposal of:
- associate		—		199		—		—
- joint venture (Note 6)		—		107,976		—		—
- property, plant and equipment		—		11,668		8,835		1,321
- subsidiaries (Note 4)		—		216,115		—		—
Government grants		41,515		34,337		32,237		4,819
Fair value gain on quoted equity securities		—		12,768		—		—
Fair value gain on foreign exchange forward contract		—		—		4,529		677
Write-back of trade and other payables		—		29		—		—
Foreign exchange gain, net		—		30,943		1,071		160
Others		18,513		10,129		9,235		1,379

		117,954		532,117		205,143		30,663

8.2

(b) Other operating expenses


	31.12.2016		31.12.2017		31.12.2018		31.12.2018
	RMB’000		RMB’000		RMB’000		US$’000
Loss on disposal of:
- property, plant and equipment		14,020		—		—		—
Foreign exchange loss, net		4,006		—		—		—
Fair value loss on quoted equity securities		243		—		3,433		513
Fair value loss on foreign exchange forward contract		140		—		—		—
Goodwill written off		1,131		—		—		—
Others		3,059		22,719		9,030		1,350

		22,599		22,719		12,463		1,863

8.3

Finance costs


	31.12.2016		31.12.2017		31.12.2018		31.12.2018
	RMB’000		RMB’000		RMB’000		US$’000
Bank term loans		34,477		53,888		71,513		10,689
Corporate bonds		27,581		—		—		—
Bills discounting		13,068		42,179		36,826		5,505
Bank charges		4,552		4,367		4,749		710
Finance lease		5		5		—		—

		79,683		100,439		113,088		16,904

8.4

Staff costs


	31.12.2016		31.12.2017		31.12.2018		31.12.2018
	RMB’000		RMB’000		RMB’000		US$’000
Wages and salaries		922,847		1,158,320		1,176,465		175,852
Contribution to defined contribution plans		275,703		258,190		296,073		44,255
Executive bonuses		44,921		59,908		57,674		8,621
Staff welfare		81,223		76,392		76,689		11,463
Staff severance cost		12,864		107,732		28,018		4,188
Cost of share-based payment		5,301		1,592		—		—
Others		20,340		1,870		8,441		1,262

		1,363,199		1,664,004		1,643,360		245,641