# 19. Property, plant and equipment (continued)

<table><tr><td>Company</td><td>Leasehold 
buildings</td><td>Machinery 
and
equipment</td><td>Motor
vehicles</td><td>Office 
and other 
equipment</td><td>Total</td></tr><tr><td></td><td>$’000</td><td>$’000</td><td>$’000</td><td>$’000</td><td>$’000</td></tr><tr><td>2015</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cost</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Beiiilgnnnfg o financa year</td><td>22,912</td><td>4,205</td><td>268</td><td>3,150</td><td>30,535</td></tr><tr><td>Additions</td><td>39</td><td>–</td><td>30</td><td>109</td><td>178</td></tr><tr><td>Disposals and write-offs</td><td>(1,580)</td><td>(51)</td><td>(269)</td><td>(2,160)</td><td>(4,060)</td></tr><tr><td>Reclassified to investment properties</td><td>(12,737)</td><td>–</td><td>–</td><td>–</td><td>(12,737)</td></tr><tr><td>End of financial year</td><td>8,634</td><td>4,154</td><td>29</td><td>1,099</td><td>13,916</td></tr><tr><td>Accumulated depreciation and impairment 
losses</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Beiiilgnnnfg o financa year</td><td>3,559</td><td>4,197</td><td>268</td><td>2,642</td><td>10,666</td></tr><tr><td>Depreciation charge</td><td>796</td><td>2</td><td>1</td><td>184</td><td>983</td></tr><tr><td>Disposals and write-offs</td><td>–</td><td>(51)</td><td>(269)</td><td>(2,140)</td><td>(2,460)</td></tr><tr><td>Reclassified to investment properties</td><td>(2,596)</td><td>–</td><td>–</td><td>–</td><td>(2,596)</td></tr><tr><td>End of financial year</td><td>1,759</td><td>4,148</td><td>–</td><td>686</td><td>6,593</td></tr><tr><td>Net book value</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>End of financial year</td><td>6,875</td><td>6</td><td>29</td><td>413</td><td>7,323</td></tr></table>

<table><tr><td>Company</td><td>Leasehold 
buildings</td><td>Machinery 
and
equipment</td><td>Motor
vehicles</td><td>Office 
and other 
equipment</td><td>Assets 
under 
construction</td><td>Total</td></tr><tr><td></td><td>$’000</td><td>$’000</td><td>$’000</td><td>$’000</td><td>$’000</td><td>$’000</td></tr><tr><td>2014</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cost</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Beiiilgnnnfg o financa year</td><td>17,712</td><td>4,205</td><td>706</td><td>6,266</td><td>264</td><td>29,153</td></tr><tr><td>Additions</td><td>5,200</td><td>–</td><td>–</td><td>37</td><td>–</td><td>5,237</td></tr><tr><td>Disposals and write-offs</td><td>–</td><td>–</td><td>(438)</td><td>(3,153)</td><td>(264)</td><td>(3,855)</td></tr><tr><td>End of financial year</td><td>22,912</td><td>4,205</td><td>268</td><td>3,150</td><td>–</td><td>30,535</td></tr><tr><td>Accumulated depreciation and 
impairment losses</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Beiiilgnnnfg o financa year</td><td>2,926</td><td>3,679</td><td>457</td><td>5,527</td><td>–</td><td>12,589</td></tr><tr><td>Depreciation charge</td><td>633</td><td>518</td><td>40</td><td>268</td><td>–</td><td>1,459</td></tr><tr><td>Disposals and write-offs</td><td>–</td><td>–</td><td>(229)</td><td>(3,153)</td><td>–</td><td>(3,382)</td></tr><tr><td>End of financial year</td><td>3,559</td><td>4,197</td><td>268</td><td>2,642</td><td>–</td><td>10,666</td></tr><tr><td>Net book value</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>End of financial year</td><td>19,353</td><td>8</td><td>–</td><td>508</td><td>–</td><td>19,869</td></tr></table>

# 19. Property, plant and equipment (continued)

(a) In 2014, bank borrowings are secured by a debenture over the Group’s assets and a mortgage against a leasehold building in Singapore with a carrying amount of \$19,353,000 (Note 26).

(b) The amount of borrowing cost capitalised as part of the costs in relation to the construction of the new factory was\$899,000 (2014: \$1,337,000) with a capitalisation rate of 5.4% (2014: 5.15%).

# 20. Investment properties

<table><tr><td rowspan="2"></td><td>Group</td><td>Company</td></tr><tr><td>$’000</td><td>$’000</td></tr><tr><td>2015</td><td></td><td></td></tr><tr><td>Beiiilgnnnfg o financa year</td><td>–</td><td>–</td></tr><tr><td>Transferred from proiperty, lpant and equpment</td><td>37,019</td><td>10,141</td></tr><tr><td>Transferred from land use rihgts</td><td>3,729</td><td>–</td></tr><tr><td>End of financial year</td><td>40,748</td><td>10,141</td></tr></table>

Investment properties are leased to non-related parties under operating leases (Note 32).

The following amounts are recognised in profit and loss:

<table><tr><td rowspan="3"></td><td>Group</td><td>Company</td></tr><tr><td>2015</td><td>2015</td></tr><tr><td>$’000</td><td>$’000</td></tr><tr><td>Rental income (Note 6)</td><td>3,721</td><td>3,064</td></tr><tr><td>Direct operating expenses arising from:</td><td></td><td></td></tr><tr><td>– Investment properties that generate rental income</td><td>634</td><td>634</td></tr></table>

At the statement of financial position date, the details of the Group’s investment properties are as follows:

<table><tr><td>Location</td><td>Description/existing use</td><td>Tenure</td></tr><tr><td>28 Quality Road, 
Singapore</td><td>A storey of office space of 
a 3-storey office building</td><td>3-years lease from 1 April 2015</td></tr><tr><td>9 Fuyuan Street, Erlu, Baoan District, 
Shenzhen City, China</td><td>A sinlge storefy actoriy buildng</td><td>5-years lease with an option for 
a further 5-years from 
1 October 2015</td></tr></table>