New World Development Company Limited
180
Financial Section
44 Financial Guarantee and Contingent Liabilities
2016
2015
HK$m
HK$m
Financial guarantee contracts:
Mortgage facilities for certain purchasers of properties
2,428.4
2,240.0
Guarantees for credit facilities granted to
Joint ventures
4,421.8
4,229.4
Associated companies
1,340.9
20.0
A related company
–
49.7
Indemnity to non-wholly owned subsidiaries for Mainland China tax liabilities
18.0
1,415.0
8,209.1
7,954.1
45 Notes to Consolidated Statement of Cash Flows
(a) Reconciliation of operating profit to net cash generated from operations
2016
2015
HK$m
HK$m
Operating profit
16,583.3
27,970.9
Depreciation
979.7
1,304.3
Amortisation
949.5
1,009.7
Changes in fair value of investment properties
(307.3)
(3,165.5)
Write back of provision for loans and other receivables
(210.4)
(376.6)
Write back of provision of property, plant and equipment
(567.3)
–
Gain on deemed disposal of interest in an associate company
–
(50.7)
Gain on partial disposal of interests in subsidiaries and remeasurement
of retained interest at fair value after reclassification to a joint venture
(40.0)
(13,709.2)
Gain on remeasurement of an available-for-sale financial asset retained at fair
value upon reclassification from an associated company
–
(914.0)
Gain on remeasurement of previously held interest of an associated company
at fair value upon further acquisition to become a subsidiary
(18.2)
–
Loss/(gain) on remeasurement of previously held interest of a joint venture at
fair value upon further acquisition to become a subsidiary
40.5
(986.6)
Net loss on fair value of financial assets at fair value through profit or loss
154.0
38.9
Net (gain)/loss on disposal of
Non-current assets classified as assets held for sale
(784.9)
(30.3)
Available-for-sale financial assets
(413.3)
(66.2)
Financial assets at fair value through profit or loss
(9.8)
23.5
Investment properties, property, plant and equipment and intangible
concession rights and their related assets and liabilities
(207.2)
63.2
Subsidiaries
(6,965.4)
(18.0)
Joint ventures
(53.0)
–
Associated companies
(3.0)
137.9
Impairment loss on
Available-for-sale financial assets
692.4
11.8
Loans and other receivables
7.4
61.2
Property, plant and equipment
30.1
532.0
Intangible assets
–
100.5
Dividend income from available-for-sale financial assets, perpetual securities
and a financial asset at fair value through profit or loss
(855.5)
(31.8)
Share options expenses
124.8
168.9
Net exchange loss/(gain)
1,894.0
(93.8)
Operating profit before working capital changes
11,020.4
11,980.1
Decrease/(increase) in inventories
42.6
(77.5)
Increase in properties for/under development and properties held for sale
(3,346.9)
(7,004.7)
Decrease/(increase) in debtors and prepayments
323.3
(657.7)
Increase in creditors and accrued charges
4,325.2
9,588.4
Net cash generated from operations
12,364.6
13,828.6
