Annual Report 2019

209 Transport International Holdings Limited 2019 Annual Report Notes to the Financial Statements 22 Bank deposits and cash (continued) (c) Reconciliation of profit before taxation to cash generated from operations: 2019 2018 (Note) Note $’ 000 $’ 000 Profit before taxation 699,323 837,265 Adjustments for: Depreciation and amortisation 966,607 912,920 Finance costs 5(b) 32,182 23,677 Dividend income from unlisted equity securities 4 (40,300) (33,480) Interest income (87,397) (81,541) Net losses on derecognition of investments in debt securities 4 120 – Share of profits of associates (21,544) (23,769) Net gain on disposal of other property, plant and equipment 4 (4,125) (11,139) Equity-settled share-based payment expenses 5(a) (11) 853 Effect of foreign exchange rate 6,648 980 Operating profit before changes in working capital 1,551,503 1,625,766 Changes in working capital: Decrease in employee benefit assets 56,575 59,709 Decrease/(increase) in spare parts and stores 3,494 (26,494) (Increase)/decrease in accounts receivable (291,750) 57,381 (Increase)/decrease in deposits and prepayments (11,997) 7,053 Increase in accounts payable and accruals 87,685 73,020 Decrease in contingency provision – insurance (15,720) (86,957) Decrease in provision for long service payments (1,465) (46) Cash generated from operations 1,378,325 1,709,432 Note: The Group has initially applied HKFRS 16 using the modified retrospective approach and adjusted the opening balances at 1 January 2019 to recognise right-of-use assets and lease liabilities relating to leases which were previously classified as operating leases under HKAS 17. Previously, cash payments under operating leases made by the Group as a lessee of $32,185,000 were classified as operating activities in the consolidated cash flow statement. Under HKFRS 16, except for short-term lease payments, all other rentals paid on leases are now split into capital element and interest element (see note 22(d)) and classified as financing cash outflows. Under the modified retrospective approach, the comparative information is not restated. Further details on the impact of the transition to HKFRS 16 are set out in note 1(c).