SWIRE PROPERTIES ANNUAL REPORT 2023 41.Notes to the Consolidated Statement of Cash Flows (a) Reconciliation of operating profit to cash generated from operations 2023 2022 HK$M HK$M Operating profit 5,180 9,024 Change in fair value of investment properties 2,829 (801) Change in fair value of assets classified as held for sale 442 (48) Depreciation 353 296 Amortisation of initial leasing costs on investment properties 96 79 Amortisation of intangible assets 66 53 Net gains arising from the acquisition of interests in joint venture companies (323) – Gains on disposal of subsidiary companies – (520) Losses/(Gains) on disposal of investment properties 16 (31) Losses on disposal of property, plant and equipment 2 – Losses/(Gains) on disposal of assets classified as held for sale 44 (20) Other items 8 144 Operating profit before working capital changes 8,713 8,176 Decrease in amounts due from immediate holding company – 1 Increase in properties for sale (589) (1,667) Decrease/(Increase) in stocks 1 (1) Increase in trade and other receivables (902) (89) Increase in trade and other payables 281 62 Decrease in contract liabilities (9) (106) Decrease in retirement benefit liabilities (3) (44) Cash generated from operations 7,492 6,332 (b) Purchase of property, plant and equipment 2023 2022 HK$M HK$M Land and buildings 14 12 Plant and equipment 203 121 Total 217 133 The above purchase amounts do not include interest capitalised on property, plant and equipment. Refer to the tables with the headings “Audited Financial Information” on page 82 for details of the changes in financing during the year. 42. Immediate and Ultimate Holding Company The immediate holding company is Swire Pacific Limited, a company incorporated and listed in Hong Kong. The ultimate holding company is John Swire & Sons Limited, a company incorporated in the United Kingdom. 203