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Notes to the Consolidated Financial Statements

31st March 2016

28 NOTE TO CONSOLIDATION STATEMENT OF CASH FLOWS

(a) Reconciliation of profit before income tax to cash generated from operations:

2016 2015
HK$’000 HK$’000
Profit before income tax 525,401 124,577
Interest income (13,276) (13,693)
Interest expense on bank borrowings
and trust receipt loans 8,695 6,831
Amortisation of intangible assets 7,800 7,800
Gain on disposal of plant and equipment (40) (6,888)
Gain on disposal of properties (221,318) –
Amortisation of deferred gain (1,454) –
Depreciation of property, plant and equipment 34,645 33,369
Impairment of property, plant and equipment – 4,964
Amortisation of leasehold land and land use rights 289 292
Fair value gain on investment properties (60) (10,460)
Exchange loss on loans and receivables – 25

Operating profit before working capital changes 340,682 146,817
Decrease/(increase) in inventories 87,901 (50,101)
(Increase)/decrease in trade and other receivables (112,880) 69,558
Decrease in trade and other payables (163,682) (59,596)

Net cash generated from operations 152,021 106,678

ALCO HOLDINGS LIMITED ANNUAL REPORT 2016 81