Annual Report 2018

26 SHOUGANG CONCORD CENTURY HOLDINGS LIMITED 首長寶佳集團有限公司 管理層論述及分析 MANAGEMENT DISCUSSION AND ANALYSIS In 2018, the Group including TESC continued to negotiate with the relevant Tengzhou government authorities with an aim to withdraw the Rescission Notice, the grant of waiver of the Compensation and Tax Payments by the latter. Since the completion of the issue of the Convertible Bonds on 11 February 2019, we have escalated our effort to reach a consensus with Tengzhou government authorities for TESC to continue utilising the Lands. Both the Group including TESC and Tengzhou government authorities in principle have a consensus to first utilise certain portions of the Lands for TESC Phase II Project with 20,000 tonnes of annual production capacity but subject to the construction cost and time needed to supplement the production need for both TESC and JESC. Please refer to “ BUSINESS DEVELOPMENT AND CAPITAL COMMITMENTS ” section for details of project. The Company will comply with any applicable requirements p r e s c r i bed by t he L i s t i ng Ru l e s and / o r t he I ns i de Information Provisions as and when appropriate, and further announcement(s) will be made by the Company with respect to any material development of the matters of the Lands as and when required. Distribution and selling expenses Distribution and selling expenses increased by 6.9% over last year to HK$67,786,000 (2017: HK$63,389,000) for the year, in which the percentage is much lower compared to the revenue of this segment increasing by 17.5% over the last year. Administrative expenses Administrative expenses amounted to HK$32,371,000 f o r t h e y e a r , de c r e a s ed b y 8 . 8% a s compa r ed t o HK$35,478,000 for last year, mainly due to sound cost control measures in place despite the revenue of this segment increased over the last year. Research and development expenses Resea r ch and deve l opmen t expenses amoun t ed t o HK$76,941,000 (2017: HK$62,385,000) for the year, significantly increased by 23.3% as compared to last year. These expenses accounted for 3.6% of revenue for the year, increased by 0.1 percentage point as compared to 3.5% last year which is within our expected range of 3% to 4% each year. 在二零一八年，本集團包括滕州東方繼續與相 關的滕州市政府進行磋商，目的是解除通知 書、撤銷後者的免除補償及稅項款項。自二零 一九年二月十一日完成發行可換股債券，我們 盡力與滕州政府當局達致共識，讓滕州東方繼 續使用這些土地。本集團包括滕州東方和滕州 政府當局原則上有共識是，首先利用部分該等 土地於年產量為 20,000 噸滕州東方二期項目 上，惟受限於建設成本及補充滕州東方及嘉興 東方的生產需求所需時間。有關項目的詳情， 請參閱「 業務發展計劃及資本承擔 」一節。 本公司將於適當時遵守上市規則及╱或內幕消 息條文所規定的任何適用規定，及將在需要時 就土地事宜的任何重大發展作出進一步公告。 分銷及銷售費用 本年度，分銷及銷售費用與去年相比上升 6.9% 至港幣 67,786,000 元（二零一七年：港 幣 63,389,000 元），其中百分比遠低於此分部 的營業額比去年增加的 17.5% 。 行政費用 儘管此分部的營業額比去年有所增加，本年度 行政費用報港幣 32,371,000 元，比去年報港 幣 35,478,000 元下降 8.8% ，主要是由於有效 的成本控制措施施行所致。 研發費用 用於本年度，研發費用報港幣 76,941,000 元 （二零一七年：港幣 62,385,000 元），比去年 顯著上升 23.3% 。這些費用佔本年度營業額的 3.6% ，比去年的 3.5% 增加了 0.1 個百分點， 均屬我們每年 3% 至 4% 的預期範圍內。