Annual Report 2019

China Merchants China Direct Investments Limited Annual Report 2019 79 CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 December 2019 2019 2018 US$ US$ OPERATING ACTIVITIES Profit (loss) before taxation 136,355,337 (105,266,617) Adjustments for: Interest income (905,655) (723,039) Dividend income from equity investments (14,622,732) (18,161,513) Net (gain) loss on financial assets at fair value through profit or loss (131,848,627) 111,123,083 Operating cash flows before movements in working capital (11,021,677) (13,028,086) Proceeds from disposal of financial assets at fair value through profit or loss 18,306,983 66,701,236 Return of capital from financial assets at fair value through profit or loss 29,029,919 2,403,866 Purchases of financial assets at fair value through profit or loss (5,409,313) (19,874,030) Increase in investment deposits (14,907,829) — (Increase) decrease in other receivables and prepayments (16,330) 33,512 Decrease in other payables (132,346) (10,805,990) (Decrease) increase in financial liabilities designated at fair value through profit or loss (86,934) 109,652 Cash generated from operations 15,762,473 25,540,160 Interest received 920,417 675,852 Dividends received 18,855,312 13,031,926 Income taxes paid (428,562) (19,582,377) NET CASH GENERATED FROM OPERATING ACTIVITIES 35,109,640 19,665,561 CASH USED IN FINANCING ACTIVITIES Dividends paid (18,279,962) (16,756,632) NET INCREASE IN CASH AND CASH EQUIVALENTS 16,829,678 2,908,929 CASH AND CASH EQUIVALENTS AS AT 1 JANUARY 48,450,040 47,767,265 EFFECT OF FOREIGN EXCHANGE RATE CHANGES (1,136,684) (2,226,154) CASH AND CASH EQUIVALENTS AS AT 31 DECEMBER 64,143,034 48,450,040