Annual Report 2020

China Merchants China Direct Investments Limited Annual Report 2020 91 CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 December 2020 2020 2019 Note US$ US$ OPERATING ACTIVITIES Profit before taxation 121,554,717 136,355,337 Adjustments for: Interest income (393,668) (905,655) Dividend income from equity investments (15,713,132) (14,622,732) Net gain on financial assets at fair value through profit or loss (126,204,803) (131,848,627) Operating cash flows before movements in working capital (20,756,886) (11,021,677) Proceeds from disposal of financial assets at fair value through profit or loss 10,339,023 18,306,983 Return of capital from financial assets at fair value through profit or loss 29,563,554 29,029,919 Purchases of financial assets at fair value through profit or loss (42,354,761) (5,409,313) Increase in investment deposits — (14,907,829) Increase in other receivables and prepayments (199,312) (16,330) Increase (decrease) in other payables 10,579,359 (132,346) Increase (decrease) in financial liabilities designated at fair value through profit or loss 23,660 (86,934) Cash (used in) generated from operations (12,805,363) 15,762,473 Interest received 445,739 920,417 Dividends received 14,974,114 18,855,312 Income taxes paid (616,980) (428,562) NET CASH GENERATED FROM OPERATING ACTIVITIES 1,997,510 35,109,640 CASH USED IN FINANCING ACTIVITIES Dividends paid 26 (10,663,311) (18,279,962) NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (8,665,801) 16,829,678 CASH AND CASH EQUIVALENTS AS AT 1 JANUARY 64,143,034 48,450,040 EFFECT OF FOREIGN EXCHANGE RATE CHANGES 4,885,778 (1,136,684) CASH AND CASH EQUIVALENTS AS AT 31 DECEMBER 60,363,011 64,143,034