Annual Report 2020

CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 December 2020 44 The United Laboratories International Holdings Limited Annual Report 2020 2020 2019 RMB’000 RMB’000 Operating activities Profit before taxation 882,334 841,652 Adjustments for: Write-down of inventories, net 5,263 8,825 Reversal of write-down of deposits for property, plant and equipment (1,389) (7,237) Impairment losses under expected credit loss model, net of reversal 65,912 7,655 Imputed interest income from consideration receivables (71,695) – Amortisation of intangible assets 12,712 12,607 Depreciation of property, plant and equipment 593,447 588,427 Depreciation of right-of-use assets 8,306 74,698 Loss on fair value change on investment properties, net of demolition costs – 69,052 Unrealised loss on a derivative financial instrument 4,573 – Finance costs 181,273 280,838 Release of government grants (12,781) (13,479) Bank interest income (41,093) (51,156) Net (gain) loss on disposal of property, plant and equipment (43,535) 14,411 Net gain on lease modification (13) – Gain on disposal of a subsidiary – (200,445) Loss on fair value change of embedded derivative components of convertible bonds 314,614 110,117 Net unrealised exchange (gain) loss (102,241) 56,172 Operating cash flows before movements in working capital 1,795,687 1,792,137 Decrease (increase) in inventories 141,470 (119,399) (Increase) decrease in trade and bills receivables, other receivables, deposits and prepayments (500,503) 295,020 Increase in trade and bills payables, other payables and accrued charges 268,262 868 Increase (decrease) in contract liabilities 18,392 (8,706) Cash generated from operations 1,723,308 1,959,920 Income taxes paid (154,046) (158,736) Net cash from operating activities 1,569,262 1,801,184