1999 — Page 33

Hong Kong

(Holding) Co. Ltd 31

Notes to the Consolidated Cash Flow Statement

For the year ended 31 December 1999

(a) Reconciliation of the operating profit to net cash (outflow)/inflow from operating activities

1999

HK$'000

1998

HK$'000

Profit from operations

131,785

158,427

Depreciation

48,253

123,111

(Profit)/loss on sale of fixed assets

(6,650)

1,336

Provision for diminution in value of listed investments

5,377

Write back of provision for diminution in value of listed

investments

(5,377)

Deficit on revaluation of investment properties

7,193

Interest income

(50,445)

(121,967)

Dividend income

(1,728)

(2,458)

Realisation of inter-company profits

(511)

(1,445)

Profit on sale of listed investments

(3,493)

Increase in properties under development

(1,947,358)

Decrease in inventories

6,452

9,785

Decrease in debtors and prepayments

6,835

50,191

Increase/(decrease) in creditors and accrued charges

18,701

(38,500)

Net cash (outflow)/inflow from operating activities

(1,792,850)

180,364

(b) Analysis of changes in financing during the year

At 1 January 1999

Cash flows from financing

At 31 December 1999

Long term

bank loans

HK$'000

800,000

800,000