| Expenses by nature |
6Expenses by nature | | | | | | | | | | | For the year | | For the six | | For the year | | For the year | | | ended | | months ended | | ended | | ended | | | June 30, | | December 31, | | December 31, | | December 31, | | | 2023 | | 2023 | | 2024 | | 2025 | | | RMB’000 | | RMB’000 | | RMB’000 | | RMB’000 | Cost of inventories (Note 16(a)) | | 6,859,362 | | 4,292,806 | | 9,099,543 | | 11,533,059 | Payroll and employee benefits (i) | | 819,592 | | 580,801 | | 1,475,943 | | 2,296,516 | Rental and related expenses | | 69,174 | | 80,847 | | 279,429 | | 444,216 | Depreciation and amortization (ii) | | 391,167 | | 285,241 | | 808,694 | | 1,206,305 | Licensing expenses | | 249,437 | | 178,241 | | 420,895 | | 608,764 | Promotion and advertising expenses | | 315,976 | | 246,883 | | 572,435 | | 704,285 | Logistics expenses | | 295,933 | | 203,024 | | 535,021 | | 594,235 | Travelling expenses | | 66,544 | | 45,827 | | 121,506 | | 141,143 | Other expenses | | 312,677 | | 198,561 | | 494,684 | | 758,316 | Total cost of sales, selling and distribution and general and administrative expenses | | 9,379,862 | | 6,112,231 | | 13,808,150 | | 18,286,839 |
Notes: | (i) | Payroll and employee benefits are analyzed as follows: |
| | | | | | | | | | | | | | | | | | | | For the year | | For the six | | For the year | | For the year | | | ended | | months ended | | ended | | ended | | | June 30, | | December 31, | | December 31, | | December 31, | | | 2023 | | 2023 | | 2024 | | 2025 | | | RMB’000 | | RMB’000 | | RMB’000 | | RMB’000 | Salaries, wages and bonus | | 657,236 | | 463,208 | | 1,202,421 | | 1,670,100 | Contributions to social security contribution plan | | 75,168 | | 53,977 | | 140,311 | | 181,962 | Welfare expenses | | 24,306 | | 17,184 | | 48,027 | | 76,585 | Equity-settled share-based payment expenses (Note 27) | | 62,882 | | 46,432 | | 85,184 | | 367,869 | | | 819,592 | | 580,801 | | 1,475,943 | | 2,296,516 |
The Group’s contributions to the defined contribution plans are expensed as incurred and not reduced by contributions forfeited by those employees who leave the plans prior to vesting fully in the contributions. | (ii) | Depreciation and amortization are analyzed as follows: |
| | | | | | | | | | | For the year | | For the six | | For the year | | For the year | | | ended | | months ended | | ended | | ended | | | June 30, | | December 31, | | December 31, | | December 31, | | | 2023 | | 2023 | | 2024 | | 2025 | | | RMB’000 | | RMB’000 | | RMB’000 | | RMB’000 | Property, plant and equipment (Note 11) | | 70,706 | | 59,652 | | 157,214 | | 270,000 | Right-of-use assets (Note 12) | | 334,193 | | 239,787 | | 684,462 | | 971,471 | Less: amount capitalized as construction in progress | | (33,907) | | (22,604) | | (45,210) | | (45,210) | Intangible assets (Note 13) | | 20,175 | | 8,406 | | 12,228 | | 10,044 | | | 391,167 | | 285,241 | | 808,694 | | 1,206,305 |
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