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LOSS BEFORE TAXATION (Tables) | 12 Months Ended
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Dec. 31, 2019
LOSS BEFORE TAXATION |
Schedule of loss before taxation | The Company’s loss before taxation is arrived at after charging:
|  | For the years ended December 31,
|  | 2019 |  | 2018 |  | 2017
|  | RMB’000 |  | RMB’000 |  | RMB’000
Cost of inventories recognized as expense(1) |  | 246,255 |  | 499,355 |  | 771,438
Depreciation expenses |  | 12 |  | 11,500 |  | 15,371
Amortization of land use rights |  | — |  | 108 |  | 143
Right-of-use asset depreciation charge |  | 12,187 |  | — |  | —
Auditors’ remuneration |  |  |  |  |  |
– Audit fees |  | 1,689 |  | 1,628 |  | 320
– Audit-related fees |  | — |  | — |  | —
|  | 1,689 |  | 1,628 |  | 320
Directors’ remuneration |  |  |  |  |  |
– salaries and related cost |  | 1,747 |  | 1,418 |  | 1,200
– retirement scheme contribution |  | 16 |  | 16 |  | 9
– share-based payments |  | — |  | — |  | —
Key management personnel (other than directors) |  |  |  |  |  |
– salaries and related cost |  | 671 |  | 753 |  | 1,447
– retirement scheme contribution |  | 20 |  | 24 |  | 23
– share-based payments |  | 622 |  | 619 |  | 304
Research and development personnel |  |  |  |  |  |
– salaries and related cost |  | 313 |  | 789 |  | 936
– retirement scheme contribution |  | 45 |  | 78 |  | 102
Other personnel |  |  |  |  |  |
– salaries and related cost |  | 26,001 |  | 33,023 |  | 55,526
– retirement scheme contribution |  | 3,867 |  | 5,526 |  | 5,526
Total employee benefit expenses |  | 33,302 |  | 42,246 |  | 68,025
(1)Cost of inventories recognized as expense included staff costs of RMB 19,867,000, RMB 27,087,000 and RMB 48,857,000, retirement scheme contribution of RMB 2,734,411, RMB 4,135,000 and RMB 6,984,000, depreciation and amortization expense of RMB nil, RMB 8,457,000 and RMB 11,203,000, right-of-use asset depreciation/operating lease charges of RMB 12,503,000, RMB 13,902,000 and RMB 13,902,000, and (reversal of ) / (reversal) write-down of inventories of RMB (56,766,000), RMB 55,973,000 and RMB (2,733,000) for the years ended December 31, 2019, 2018, and 2017, respectively, which amounts are also included in the respective total amounts disclosed separately for each of these types of expenses

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