| 45 | NOTES TO THE STATEMENT OF CONSOLIDATED CASH FLOWS |
| (a) | Cash generated from operations |
| 2017 | 2016 | 2015 | ||||||||||
| RMB million | RMB million | RMB million | ||||||||||
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Profit before income tax |
8,610 | 6,497 | 5,667 | |||||||||
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Adjustments for: |
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Depreciation of property, plant and equipment and amortization of other non-current assets |
13,769 | 12,345 | 10,710 | |||||||||
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Amortization of intangible assets |
143 | 129 | 85 | |||||||||
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Depreciation of investment properties |
12 | 11 | 4 | |||||||||
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Amortization of prepayments for land use right |
45 | 63 | 60 | |||||||||
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Gains on disposal of property, plant and equipment |
(13 | ) | (74 | ) | (377 | ) | ||||||
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Gain on disposal of prepayments for land use right |
(5 | ) | (3 | ) | (1 | ) | ||||||
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Gain on disposal of investment in a subsidiary |
(1,754 | ) | — | (41 | ) | |||||||
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Gain on disposal of investment in an associate |
(12 | ) | (12 | ) | — | |||||||
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Gain on disposal of available-for-sale investments |
(4 | ) | (95 | ) | (33 | ) | ||||||
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Dividend income from available-for-sale investments |
(33 | ) | (28 | ) | (13 | ) | ||||||
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Share of results of associates |
(202 | ) | (148 | ) | (126 | ) | ||||||
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Share of results of joint ventures |
(49 | ) | (39 | ) | (26 | ) | ||||||
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Net foreign exchange losses |
(2,378 | ) | 3,246 | 5,480 | ||||||||
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Gain on fair value changes of derivative financial instruments |
311 | (2 | ) | (6 | ) | |||||||
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Impairment charges |
491 | 29 | 228 | |||||||||
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Interest income |
(111 | ) | (96 | ) | (66 | ) | ||||||
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Interest expense |
3,184 | 2,641 | 2,075 | |||||||||
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Operating profit before working capital changes |
22,004 | 24,464 | 23,620 | |||||||||
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Changes in working capital |
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Flight equipment spare parts |
(109 | ) | (202 | ) | 117 | |||||||
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Trade and notes receivables |
(500 | ) | 208 | 985 | ||||||||
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Prepayments and other receivables |
(753 | ) | (839 | ) | (2,011 | ) | ||||||
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Restricted bank deposits and short-term bank deposits |
(8 | ) | (8 | ) | — | |||||||
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Sales in advance of carriage |
(569 | ) | 1,836 | 777 | ||||||||
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Trade and bills payables |
1,725 | (336 | ) | 1,629 | ||||||||
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Other payables and accruals |
340 | 1,424 | (234 | ) | ||||||||
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Staff housing allowances |
62 | (57 | ) | 105 | ||||||||
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Other long-term liabilities |
(728 | ) | (883 | ) | 1,164 | |||||||
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Post-retirement benefit obligations |
(217 | ) | 321 | (282 | ) | |||||||
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Provision for return condition checks for aircraft under operating leases |
(139 | ) | 167 | (381 | ) | |||||||
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Operating lease deposits |
— | 59 | 46 | |||||||||
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Cash generated from operations |
21,108 | 26,154 | 25,535 | |||||||||
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| (b) | Major non-cash transactions |
| 2017 | 2016 | 2015 | ||||||||||
| RMB million | RMB million | RMB million | ||||||||||
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Finance lease obligations incurred for acquisition of aircraft |
6,865 | 8,838 | 21,887 | |||||||||
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| (c) | Changes in liabilities arising from financing activities |
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Bank and other loans |
Obligations under finance leases |
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| RMB million | RMB million | |||||||
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At 1 January 2017 |
56,732 | 61,041 | ||||||
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Changes from financing cash flow |
7,450 | (10,587 | ) | |||||
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Reclassified as part of the disposal group |
(262 | ) | (409 | ) | ||||
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Foreign exchange movement |
(119 | ) | (2,362 | ) | ||||
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New finance leases |
— | 19,185 | ||||||
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At 31 December 2017 |
63,801 | 66,868 | ||||||
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