For the year ended December 31, 2010

Notes 2010 2009 2010 2009
HK$’000 HK$’000 US$’000 US$’000
(Note 58) (Note 58)
Operating Activities
Profit before taxation 746,392 429,469 95,691 55,061
Adjustments for:
Amortisation/write-off of intangible assets
330,646 269,246 42,391 34,519
Amortisation of lease prepayments
5,717 2,267 733 291
Depreciation on property, plant and equipment
548,885 534,953 70,370 68,583
Employee share-based expense
17,190 10,800 2,204 1,385
Finance costs
579,549 565,500 74,301 72,500
Impairment loss on available for sale investments recognised
13,363 1,713
Impairment loss on trade receivables
44,645 64,054 5,724 8,212
Write down of inventories
86,358 71,679 11,072 9,190
Interest income
(16,757) (15,781) (2,148) (2,023)
Loss (gain) on disposal of property, plant and equipment
5,291 (27,946) 678 (3,583)
Gain on disposal of held-for-trading investments
(16) (2)
Gain on disposal of a subsidiary
(2,851) (366)
Share of the results of associates
1,207 987 155 127
Discount on acquisition taken to income
(4,764) (611)
Fair value loss (gain) on interest rate swap
21,695 (3,428) 2,781 (439)
Fair value gain on warrant
(4,306) (552)
Fair value gain on foreign currency forward contracts
(44,257) (11,320) (5,674) (1,451)
Fair value gain on held-for-trading investments
(3,100) (33,692) (397) (4,320)
Operating cash flows before movements in working capital 2,327,754 1,853,921 298,431 237,684
Increase in inventories (345,525) (287,185) (44,298) (36,819)
Increase in trade and other receivables, deposits and prepayments (420,090) (700,292) (53,858) (89,781)
Increase in bills receivable (41,305) (29,210) (5,295) (3,745)
(Increase) decrease in trade receivables from associates (283) 96 (36) 12
Increase in interest rate swap 11 1
(Increase) decrease in foreign currency forward contracts (4,669) 53,569 (599) 6,868
(Decrease) increase in trade and other payables (126,164) 74,101 (16,175) 9,499
(Decrease) increase in bills payable (289,933) 567,791 (37,171) 72,794
Increase (decrease) in restructuring provision 176,935 (136,828) 22,684 (17,542)
Decrease in warranty provision (12,009) (46,044) (1,540) (5,903)
Increase in held-for-trading investments (4,929) (38,518) (632) (4,938)
Increase in trade payable to an associate 26,880 3,900 3,446 500
Decrease (increase) in retirement benefit obligations 19,550 (34,676) 2,506 (4,446)
Cash generated from operations 1,306,223 1,280,625 167,464 164,183
Interest paid (537,394) (525,843) (68,897) (67,416)
Hong Kong profits tax paid (55,353) (34,926) (7,097) (4,478)
Overseas tax paid (102,288) (135,412) (13,114) (17,361)
Hong Kong profits tax refunded 486 1,246 62 160
Overseas tax refunded 44,815 175,624 5,746 22,516
Net Cash from Operating Activities 656,489 761,314 84,164 97,604
Investing Activities
Acquisition of subsidiaries / business 48 (108,016) (13,848)
Purchase of property, plant and equipment (722,890) (661,884) (92,678) (84,857)
Additions to intangible assets (415,476) (433,058) (53,266) (55,520)
Purchase of available-for-sale investments (526) (5,643) (67) (723)
Repayment from associates 6,759 9,692 867 1,242
Interest received 16,757 15,781 2,148 2,023
Proceeds from disposal of property, plant and equipment 14,105 26,636 1,808 3,415
Net cash outflow on disposal of a subsidiary (238) (31)
Net Cash Used in Investing Activities (1,209,287) (1,048,714) (155,036) (134,451)
Financing Activities
New bank loans obtained 4,599,969 2,330,935 589,740 298,838
Proceeds from issue of convertible bonds 1,170,000 150,000
Proceeds from issue of shares 79,367 605,700 10,175 77,653
Repayment of bank loans (2,165,037) (3,052,050) (277,569) (391,288)
Repayment of fixed interest rate notes (1,353,923) (173,580)
Repayment of convertible bonds (100,805) (12,924)
Repurchase of warrants (101,843) (13,057)
Dividends paid (132,508) (92,775) (16,988) (11,894)
Acquisition of additional interest in a subsidiary (3,875) (2,597) (497) (332)
Expenses on issue of convertible bonds (39,001) (5,000)
Expenses on issue of shares (15,933) (2,042)
Repayment of obligations under finance leases (23,227) (21,627) (2,978) (2,773)
Increase in discounted bills with recourse 640,381 103,547 82,100 13,275
(Decrease) increase in trust receipt loans (269,781) 360,898 (34,587) 46,269
Net Cash from Financing Activities 1,269,523 1,246,292 162,759 159,782
Net Increase in Cash and Cash Equivalents 716,725 958,892 91,887 122,935
Cash and Cash Equivalents at Beginning of the Year 3,107,997 2,129,199 398,461 272,974
Effect of Foreign Exchange Rate Changes 1,514 19,906 195 2,552
Cash and Cash Equivalents at End of the Year 3,826,236 3,107,997 490,543 398,461
Analysis of the Balances of Cash and Cash Equivalents
Represented by:
Bank balances, deposits and cash
4,000,566 3,322,753 512,893 425,994
Bank overdrafts
(174,330) (214,756) (22,350) (27,533)
3,826,236 3,107,997 490,543 398,461