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Notes to the Consolidated Financial Statements

31st March 2015

31 NOTE TO CONSOLIDATION STATEMENT OF CASH FLOWS

(a) Reconciliation of profit/(loss) before income tax to cash generated from/(used in) operations:

Group
2015 2014
HK$’000 HK$’000
Profit/(loss) before income tax including
discontinued operation 124,577 (22,518)
Interest income (13,693) (21,764)
Interest expense on bank loans and trust receipt loans 6,831 3,830
Amortisation of intangible assets 7,800 8,883
Gain on disposal of property, plant and equipment (6,888) (6,008)
Depreciation of property, plant and equipment 33,369 35,468
Write-off/impairment of property, plant and equipment 4,964 3,750
Amortisation of leasehold land and land use rights 292 292
Fair value gain on investment properties (10,460) (16,160)
Exchange loss/(gain) on loans and receivables 25 (6,186)
Impairment of goodwill – 320
Loss on disposal of loans and receivables – 11,946
Loss on disposal of available-for-sale financial assets – 15,225

Operating profit before working capital changes 146,817 7,078
Increase in inventories (50,101) (36,425)
Decrease/(increase) in trade and other receivables 69,558 (98,444)
Decrease in trade and other payables (59,596) (27,983)

Cash generated from/(used in) operations 106,678 (155,774)

ALCO HOLDINGS LIMITED ANNUAL REPORT 2015 91