ESR Interim Report 2020 (EN)

Notes to Condensed Consolidated Financial Information 30 June 2020 47 NOTES TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION ESR Interim Report 2020 5. PROFIT BEFORE TAX (continued) The Group’s profit before tax is arrived at after charging: (continued) (b) Other items For the six months ended 30 June 2020 2019 (Unaudited) (Audited) US$’000 US$’000 Construction cost* 54,401 36,978 Other tax expenses 5,713 4,608 Professional fees 5,032 19,910 Auditor’s remuneration 725 442 Exchange losses – 1,761 Depreciation of property, plant and equipment 1,547 2,063 Amortisation of other intangible assets 2,635 3,034 Depreciation of right-of-use assets 2,951 2,199 Loss on disposal of items of property, plant and equipment 53 316 * Construction costs for the six months ended 30 June 2020 and 2019 are included in “Cost of sales” in the condensed consolidated statement of profit or loss and other comprehensive income. 6. FINANCE COSTS For the six months ended 30 June 2020 2019 (Unaudited) (Audited) US$’000 US$’000 Interest expense on bank loans 43,663 34,843 Interest expense on other borrowings (note (i)) 3,160 12,231 Interest expense on bonds 29,115 11,102 Interest expense on lease liabilities 1,200 701 Interest on redeemable convertible preference shares (note (ii)) – 26,101 77,138 84,978 Less: Interest capitalised (5,479) (1,615) 71,659 83,363 Notes: (i) For the six months ended 30 June 2019, interest expense on other borrowings included interest expense for US$300 million notes issued by the Company to Hana Private Real Estate Investment Trust No. 16 and No. 17 (“Hana Notes”) amounted to US$10,388,000. The Company had fully repaid Hana Notes on 6 November 2019. (ii) For the six months ended 30 June 2019, interest on redeemable convertible preference shares included dividend amounting to US$6,480,000, and costs associated with the equity element of the Class C Preference Shares amounting to US$19,621,000. The Company had redeemed in full previously unconverted Class C Preference Shares on 6 November 2019.