26 INVESTMENT IN A SUBSIDIARY
Trust
2015
2014
HK$’000
HK$’000
Investment cost
10,000
10,000
Capital contribution
57,551,334
60,883,189
57,561,334
60,893,189
Pursuant to an investment agreement entered between the HPH Trust and a wholly-owned subsidiary, HPHT Limited, dated
4 August 2011, HPH Trust made capital contributions of HK$67,280,000,000 to HPHT Limited (“Capital Contribution”)
through capitalising the amounts due from the subsidiary. HPH Trust has no right to require HPHT Limited to return any
Capital Contribution. HPHT Limited may return to HPH Trust any Capital Contribution at any time in whole or in part.
Accordingly, the capital contribution is accounted for as investment in a subsidiary.
Details of subsidiary companies of the Group are disclosed in Note 31.
27 RECONCILIATION OF OPERATING PROFIT TO CASH GENERATED FROM OPERATIONS
2015
2014
Note
HK$’000
HK$’000
Operating profit
4,352,691
4,160,261
Depreciation and amortisation
2,821,195
2,805,347
Net gain on disposal of subsidiary companies
-
(243,777)
Gain on cessation of economic benefits of an investment
17
(155,532)
-
Net loss/(gain) on disposal of fixed assets
2,733
(1,926)
Dividend income
(23,727)
(50,718)
Interest income
(65,420)
(87,677)
Operating profit before working capital changes
6,931,940
6,581,510
Decrease in inventories
10,290
8,308
Increase in trade and other receivables
(496,271)
(174,990)
Decrease/(increase) in amounts due from related companies,
associated companies and joint ventures
71,239
(43,157)
Increase in trade and other payables
244,539
286,496
Increase in pension obligations
16,748
10,695
Cash generated from operations
6,778,485
6,668,862
Notes to the
Financial Statements
OPTIMISING FOR THE FUTURE
108
