Annual Report 2020

218 Transport International Holdings Limited 2020 Annual Report Notes to the Financial Statements (Expressed in Hong Kong dollars unless otherwise indicated) 23 Bank deposits and cash (continued) (c) Reconciliation of profit before taxation to cash generated from operations: 2020 2019 Note $’ 000 $’ 000 Profit before taxation 1,722,156 699,323 Adjustments for: Depreciation 5(d) 993,213 966,607 Finance costs 5(b) 26,933 32,182 Dividend income from unlisted equity securities 4 (31,000) (40,300) Interest income (76,624) (87,397) Net loss on derecognition of investments in debt securities 4 213 120 Share of profits of associates (6,525) (21,544) Share of profit of joint venture (35) – Gain on disposal of a subsidiary 35 (1,495,548) – Net gain on disposal of other property, plant and equipment 4 (8,833) (4,125) Equity-settled share-based payment expenses 5(a) 600 (11) Receipt of government grant for the disposal of other property, plant and equipment (306) – COVID-19-related rent concessions received 13(b) (1,808) – Effect of foreign exchange rate 5,352 6,648 Operating profit before changes in working capital 1,127,788 1,551,503 Changes in working capital: Decrease in employee benefit assets 43,508 56,575 (Increase)/decrease in spare parts (16,301) 3,494 Increase in accounts receivable (18,863) (291,750) Increase in deposits and prepayments (668) (11,997) Increase in accounts payable and accruals 115,938 87,685 Decrease in contingency provision – insurance (62,638) (15,720) Decrease in provision for long service payments (1,505) (1,465) Cash generated from operations 1,187,259 1,378,325