Annual Report 2019

CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 December 2019 46 The United Laboratories International Holdings Limited Annual Report 2019 2019 2018 RMB’000 RMB’000 Operating activities Profit before taxation 841,652 793,879 Adjustments for: Write-down (reversal of write-down) of inventories, net 8,825 (7,797) Reversal of write-down of deposits for property, plant and equipment (7,237) – Impairment losses under credit loss model, net of reversal 7,655 (2,106) Amortisation of intangible assets 12,607 12,284 Amortisation of prepaid lease payments – 6,585 Depreciation of property, plant and equipment 588,427 728,755 Depreciation of right-of-use assets 74,698 – Impairment losses on intangible assets – 17,960 Loss on fair value change on investment properties, net of demolition costs 69,052 94,873 Finance costs 280,838 246,897 Release of government grants (13,479) (15,784) Bank interest income (51,156) (22,636) Net losses on disposal of property, plant and equipment 14,411 29,529 Gain on disposal of a subsidiary (200,445) – Loss (gain) on fair value change of embedded derivative components of convertible bonds 110,117 (226,414) Unrealised exchange loss 56,172 109,184 Operating cash flows before movements in working capital 1,792,137 1,765,209 Increase in inventories (119,399) (283,782) Decrease (increase) in trade and bills receivables, other receivables, deposits and prepayments 295,020 (644,226) Increase in trade and bills payables, other payables and accrued charges 868 585,561 Decrease in contract liabilities (8,706) (18,615) Cash generated from operations 1,959,920 1,404,147 Income taxes paid (158,736) (190,908) Net cash from operating activities 1,801,184 1,213,239