22 CASH FLOW GENERATED FROM OPERATIONS

(a) Reconciliation from profit before income tax to net cash generated from operations:

2016

2017

2018

RMB’000

Profit before income tax:

1,544,009

1,347,132

1,068,800

Adjustments for:

Depreciation of fixed assets (Note 6)

1,518,970

1,662,460

1,609,743

Impairment of fixed assets (Note 6)

11,185

10,363

Impairment of construction-in-progress (Note 7)

5,662

Provision for impairment of materials and supplies (Note 18)

(5,209)

7,844

11,361

Amortisation of leasehold land payments (Note 8)

38,670

45,680

55,782

Loss on disposal of fixed assets and costs on repairs

133,073

321,741

261,476

Amortisation of long-term prepaid expenses (Note 13)

6,968

3,168

12,909

Share of results of associates , net of tax (Note 11)

(7,223)

(6,944)

(7,177)

Dividend income on FVOCI/AFS (Note 31)

(5,884)

(6,473)

Investment income from liquidation of a subsidiary (Note 31)

(81)

(Reversal of)/provision for impairment of receivables

5,901

(1,061)

Amortisation of deferred income

(3,258)

(3,282)

(5,988)

Interest income

(4,353)

(4,647)

(5,845)

Operating profit before working capital changes

3,221,430

3,383,765

3,003,809

Decrease/(increase) in trade receivables

(1,034,064)

(419,349)

230,877

Decrease in materials and supplies

14,432

6,121

39,224

Increase in prepayments and other receivables

(47,594)

(12,975)

(17,218)

Decrease in long-term receivable

2,000

3,000

7,000

Increase in trade payables

34,178

181,554

115,759

Increase/(decrease) in accruals and other payables

22,481

(179,412)

220,571

Net cash generated from operations

2,212,863

2,962,704

3,600,022

36 CASH FLOW GENERATED FROM OPERATIONS (CONTINUED)

(b) In the cash flow statement, proceeds from disposal of fixed assets comprise:

2016

2017

2018

RMB’000

Net book amount (Note 6)

142,336

336,812

284,658

Receivable arising from disposal of fixed assets

20,349

Payable arising from disposal of fixed assets

(2,457)

(6,715)

Transfer to materials and supplies

(11,662)

(12,087)

(16,075)

Loss on disposal of fixed assets and costs on repairs

(133,073)

(321,741)

(261,476)

Proceeds from disposal of fixed assets

17,950

527

392

22 CASH FLOW GENERATED FROM OPERATIONS