Annual Report 2021

CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 December 2021 45 The United Laboratories International Holdings Limited Annual Report 2021 2021 2020 RMB’000 RMB’000 Operating activities Profit before taxation 1,202,647 882,334 Adjustments for: Write-down of inventories, net 2,003 5,263 Write-down (reversal of write-down) of deposits for property, plant and equipment 3,165 (1,389) Impairment losses under expected credit loss model, net of reversal 296,559 65,912 Imputed interest income from consideration receivables (31,186) (71,695) Amortisation of intangible assets 16,618 12,712 Depreciation of property, plant and equipment 593,150 593,447 Depreciation of right-of-use assets 11,089 8,306 Net (gain) loss on fair value changes of derivative financial instruments (8,120) 3,137 Finance costs 60,231 181,273 Release of government grants (13,850) (12,781) Bank interest income (51,594) (41,093) Net loss (gain) on disposal of property, plant and equipment 19,381 (43,535) Net gain on lease modification – (13) Loss on fair value change of embedded derivative components of convertible bonds – 314,614 Net unrealised foreign exchange gain (62,081) (102,241) Operating cash flows before movements in working capital 2,038,012 1,794,251 (Increase) decrease in inventories (577,530) 141,470 Increase in trade and bills receivables, other receivables, deposits and prepayments (860,374) (500,503) Increase in trade and other payables 1,149,579 268,262 Increase in contract liabilities 29,830 18,392 Cash generated from operations 1,779,517 1,721,872 Income taxes paid (236,966) (154,046) Net cash from operating activities 1,542,551 1,567,826