36 CASH FLOW GENERATED FROM OPERATIONS

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

2017

2018

2019

RMB’000

Profit before income tax:

1,347,132

1,068,800

1,009,092

Adjustments for:

Depreciation of fixed assets (Note 6)

1,662,460

1,609,743

1,637,298

Depreciation of right-of-use assets (Note 8)

65,324

Impairment of fixed assets (Note 6)

11,185

10,363

20,697

Provision for impairment of materials and supplies (Note 18)

7,844

11,361

10,793

Amortization of leasehold land payments (Note 8)

45,680

55,782

Loss on disposal of fixed assets and costs on repairs

321,741

261,476

161,435

Amortization of long-term prepaid expenses (Note 13)

3,168

12,909

16,438

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

(6,944)

(7,177)

7,039

Dividend income on FVOCI/AFS (Note 31)

(6,473)

(7,047)

Investment income from liquidation of a subsidiary (Note 31)

(81)

Provision for/(reversal of) impairment of receivables

5,901

(1,061)

Amortization of deferred income

(3,282)

(5,988)

(2,299)

Interest expense on lease liabilities

57,670

Interest income

(4,647)

(5,845)

(4,606)

Operating profit before working capital changes

3,383,765

3,003,809

2,971,834

(Increase)/decrease in trade receivables

(419,349)

230,877

(638,401)

Decrease in materials and supplies

6,121

39,224

16,438

Increase in prepayments and other receivables

(12,975)

(17,218)

(64,221)

Decrease in long-term receivable

3,000

7,000

6,000

Increase in trade payables

181,554

115,759

98,393

(Decrease)/increase in accruals and other payables

(179,412)

220,571

358,625

Net cash generated from operations

2,962,704

3,600,022

2,748,668

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

2017

2018

2019

RMB’000

Net book amount (Note 6)

336,812

284,658

168,806

Payable arising from disposal of fixed assets

(2,457)

(6,715)

(2,063)

Transfer to materials and supplies

(12,087)

(16,075)

(2,272)

Loss on disposal of fixed assets and costs on repairs

(321,741)

(261,476)

(161,435)

Proceeds from disposal of fixed assets

527

392

3,036