Annual Report 2023

Notes to the Consolidated Financial Statements For the year ended 31 December 2023 186 CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED 36. INFORMATION OF THE CONSOLIDATED STATEMENT OF CASH FLOWS (a) Reconciliation of operating profit to net cash inflow from operations: 2023 2022 HK$’million HK$’million Earnings before finance costs, net, taxation and share of profits less losses of associates and joint ventures 4,243 3,417 Adjustments for: Depreciation and amortisation 2,209 2,373 Net change in fair value of investment properties 7 (7) Net change in fair value of financial assets at FVTPL (99) 358 Net (reversal)/allowance for credit losses of trade debtors and other debtors (29) 276 Net exchange losses 78 481 Net loss on disposal of property, plant and equipment and right-of-use assets 22 86 Operating indemnification — (249) Gain on disposal of a subsidiary (115) — Net loss on deemed disposal of partial interest in an associate — 3 Operating profit before working capital changes 6,316 6,738 Increase in inventories (18) (21) (Increase)/decrease in debtors, deposits and prepayments (199) 105 (Decrease)/increase in creditors and accruals (35) 317 Net cash inflow from operations 6,064 7,139