Depreciation, amortization, shipping and handling expenses

12 Months Ended

Dec. 31, 2022

7.1	Depreciation, amortization, shipping and handling expenses

(a)

Depreciation and amortization expenses


	31.12.2020		31.12.2021		31.12.2022		31.12.2022
	RMB’000		RMB’000		RMB’000		US$’000
Amortization of intangible assets (i)		1,012		38,957		64,939		9,341
Depreciation of investment property		376		355		348		50
Depreciation of property, plant and equipment		450,092		492,826		516,276		74,264
Depreciation of right-of-use assets (ii)		43,127		41,458		43,129		6,204

		494,607		573,596		624,692		89,859

Note:

(i)

The higher amortization charges in 2021 and 2022 are mainly due to the amortization charged on additional Technology

Know-how

recognized during the year which are transferred from Group capitalized development cost upon completion and ready for use.

(ii)

In 2020,

COVID-19

related rent rebate received from lessors of RMB 0.2 million has been offset against the depreciation of

right-of-use

assets.

(b)

Shipping and handling expenses

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


	31.12.2020		31.12.2021		31.12.2022		31.12.2022
	RMB’000		RMB’000		RMB’000		US$’000
Selling, general and administrative expenses		237,683		224,292		150,661		21,672

7.2	(a) Other operating income


	31.12.2020		31.12.2021		31.12.2022		31.12.2022
	RMB’000		RMB’000		RMB’000		US$’000
Interest income		166,970		132,083		131,879		18,970
Dividend income from quoted equity securities		166		168		13		2
Gain on disposal of:
- associate		—		—		1,329		191
- property, plant and equipment		—		1,224		6,535		940
- quoted equity securities		874		5,416		2,291		330
- right-of-use assets		2,574		14,714		3,929		565
Government grants		209,793		152,932		176,264		25,355
Fair value gain on quoted equity securities		—		138		—		—
Fair value gain on foreign exchange forward contract		999		—		—		—
Foreign exchange gain, net		3,217		—		—		—
Others		15,676		19,496		12,109		1,742

		400,269		326,171		334,349		48,095

7.2	(b) Other operating expenses


	31.12.2020		31.12.2021			31.12.2022			31.12.2022
	RMB’000		RMB’000			RMB’000			US$’000
Fair value loss on quoted equity securities		1,196		—			—			—
Impairment loss on investment in joint venture		—		—			990			142
Loss on disposal of property, plant and equipment		4,183		—			—			—
Provision/(reversal) for onerous contract, net		13,639		(8,810	)		(4,829	)		(695	)
Foreign exchange loss, net		—		1,739			555			80
Unrecoverable value added tax		—		11,164			—			—
Others		2,304		5,889			877			127

		21,322		9,982			(2,407	)		(346	)

7.3	Finance costs


	31.12.2020		31.12.2021		31.12.2022		31.12.2022
	RMB’000		RMB’000		RMB’000		US$’000
Bank term loans		95,357		82,109		65,440		9,413
Bills and other discounting		49,738		27,864		23,922		3,441
Bank charges		3,877		4,136		4,563		656
Interest on lease liabilities (Note 17)		2,198		1,819		1,547		223

		151,170		115,928		95,472		13,733

7.4	Staff costs


	31.12.2020		31.12.2021		31.12.2022		31.12.2022
	RMB’000		RMB’000		RMB’000		US$’000
Wages and salaries		1,364,751		1,338,777		928,350		133,539
Contribution to defined contribution plans		287,830		386,551		371,458		53,433
Executive bonuses		59,908		19,355		16,500		2,373
Staff welfare		94,982		93,992		79,206		11,393
Staff severance cost		19,712		11,771		19,531		2,809
Others		3,439		4,887		3,875		557

		1,830,622		1,855,333		1,418,920		204,104