Annual Report 2021

China Merchants China Direct Investments Limited Annual Report 2021 94 CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 December 2021 2021 2020 Note US$ US$ OPERATING ACTIVITIES Profit before taxation 43,020,768 121,554,717 Adjustments for: Interest income (297,161) (393,668) Dividend income from equity investments (13,847,265) (15,713,132) Net gain on financial assets at fair value through profit or loss (48,648,395) (126,204,803) Operating cash flows before movements in working capital (19,772,053) (20,756,886) Proceeds from disposal of financial assets at fair value through profit or loss 798,344 10,339,023 Return of capital from financial assets at fair value through profit or loss 24,041,305 29,563,554 Purchases of financial assets at fair value through profit or loss (25,943,085) (42,354,761) Decrease (increase) in other receivables and prepayments 199,329 (199,312) (Decrease) increase in other payables (4,387,613) 10,579,359 (Decrease) increase in financial liabilities designated at fair value through profit or loss (217,573) 23,660 Cash used in operations (25,281,346) (12,805,363) Interest received 291,737 445,739 Dividends received 14,558,328 14,974,114 Income taxes paid (2,294,421) (616,980) NET CASH (USED IN) GENERATED FROM OPERATING ACTIVITIES (12,725,702) 1,997,510 CASH USED IN FINANCING ACTIVITIES Dividends paid 26 (12,186,641) (10,663,311) NET DECREASE IN CASH AND CASH EQUIVALENTS (24,912,343) (8,665,801) CASH AND CASH EQUIVALENTS AS AT 1 JANUARY 60,363,011 64,143,034 EFFECT OF FOREIGN EXCHANGE RATE CHANGES 1,190,467 4,885,778 CASH AND CASH EQUIVALENTS AS AT 31 DECEMBER 36,641,135 60,363,011