For the year ended December 31, 2011

2011
2010
US$’000 US$’000
Operating Activities
Profit before taxation 160,174 95,691
Adjustments for:
Amortisation/write-off of intangible assets
 49,095 42,391
Amortisation of lease prepayments
 765 733
Depreciation on property, plant and equipment
 69,897 70,370
Employee share-based expense
 1,053 2,205
Finance costs
 63,093 74,301
Impairment loss on available-for-sale investments recognised
 — 1,713
Impairment loss on trade receivables
 2,992 5,724
Write down of inventories
 8,259 11,072
Interest income
 (5,055) (2,148)
(Gain) loss on disposal of property, plant and equipment
 (4,990) 678
Share of the results of associates
 347 155
Discount on acquisition taken to income
 — (611)
Fair value loss on interest rate swap
 2,425 2,781
Fair value loss (gain) on warrant
 330 (552)
Fair value loss (gain) on foreign currency forward contracts
 3,314 (5,674)
Fair value loss (gain) on held-for-trading investments
 2,444 (397)
Operating cash flows before movements in working capital 354,143 298,432
Increase in inventories (67,715) (44,298)
Increase in trade and other receivables, deposits and prepayments (64,011) (53,858)
Decrease (increase) in bills receivable 2,827 (5,295)
Increase in trade receivables from associates (166) (36)
Decrease in interest rate swap — 1
Increase in foreign currency forward contracts — (599)
Increase (decrease) in trade and other payables 132,220 (16,175)
Decrease in bills payable (12,426) (37,171)
(Decrease) increase in restructuring provision (18,927) 22,684
Decrease in warranty provision (2,802) (1,540)
Increase in held-for-trading investments — (632)
(Decrease) increase in trade payable to an associate (106) 3,446
(Decrease) increase in retirement benefit obligations (5,670) 2,506
Cash generated from operations 317,367 167,465
Interest paid (56,316) (68,897)
Hong Kong Profits Tax paid (4,449) (7,097)
Overseas tax paid (10,368) (13,114)
Hong Kong Profits Tax refunded 139 62
Overseas tax refunded 8,916 5,746
Net Cash from Operating Activities 255,289 84,165
Investing Activities
Acquisition of subsidiaries / business — (13,848)
Purchase of property, plant and equipment (94,570) (92,678)
Additions to intangible assets (66,128) (53,266)
Purchase of available-for-sale investments — (67)
Repayment from associates 3,643 867
Interest received 5,055 2,148
Proceeds from disposal of property, plant and equipment 13,053 1,808
Net Cash Used in Investing Activities (138,947) (155,036)
Financing Activities
New bank loans obtained 351,754 589,740
Proceeds from issue of shares 421 10,175
Repayment of bank loans (566,201) (277,569)
Repayment of fixed interest rate notes (5,625) (173,580)
Repurchase of shares (3,817) —
Repurchase of warrants — (13,057)
Dividends paid (23,254) (16,988)
Dividends paid to non-controlling shareholders of subsidiaries (6,557) —
Acquisition of additional interest in a subsidiary — (497)
Repayment of obligations under finance leases (3,004) (2,978)
Increase in discounted bills with recourse 106,099 82,100
Decrease in trust receipt loans (20,590) (34,587)
Net Cash (Used in) from Financing Activities (170,774) 162,759
Net (Decrease) Increase in Cash and Cash Equivalents (54,432) 91,888
Cash and Cash Equivalents at Beginning of the Year 490,543 398,461
Effect of Foreign Exchange Rate Changes 3,567 194
Cash and Cash Equivalents at End of the Year 439,678 490,543
Analysis of the Balances of Cash and Cash Equivalents
Represented by:
Bank balances, deposits and cash
 459,650 512,893
Bank overdrafts
 (19,972) (22,350)
439,678 490,543