DONACO INTERNATIONAL LIMITED 2018 ANNUAL REPORT 72 73 DONACO INTERNATIONAL LIMITED 2018 ANNUAL REPORT 73 72 NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2018 NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2018 NOTE 34. INTERESTS IN SUBSIDIARIES CONTINUED SUMMARISED FINANCIAL INFORMATION Summarised financial information of the subsidiary with non-controlling interests that are material to the consolidated entity are shown below. LAO CAI INTERNATIONAL HOTEL JOINT VENTURE COMPANY 2018 2017 $ $ Summarised statement of financial position Current assets 18,440,168 14,894,013 Non-current assets 68,654,062 54,766,529 Total assets 87,094,230 69,660,542 Current liabilities 20,065,651 18,413,616 Non-current liabilities 11,816,389 13,326,362 Total liabilities 31,882,040 31,739,978 Net assets 55,212,190 37,920,564 Summarised statement of profit or loss and other comprehensive income Revenue 25,963,606 26,186,141 Expenses (17,078,032) (19,093,638) Profit before income tax expense 8,885,574 7,092,503 Income tax expense (1,035,477) (880,886) Profit after income tax expense 7,850,097 6,211,617 Statement of cash flows Net cash from operating activities 6,077,364 13,982,466 Net cash used in investing activities (1,529,638) (1,556,309) Net cash used in financing activities (7,652,100) (9,897,377) Net (decrease)/increase in cash and cash equivalents (3,104,374) 2,528,780 Other financial information Profit attributable to non-controlling interests 261,944 198,751 Accumulated non-controlling interests at the end of reporting period 1,799,990 1,335,096 NOTE 35. EVENTS AFTER THE REPORTING PERIOD SHARE OPTIONS On 29 June 2018 the company announced the expiration of 2,930,625 options on 1 July 2018 in accordance with their terms. The options were part of the FY14, FY15 and FY16 option series. Currently, there are 2,514,186 remaining options on issue. TERMINATION OF VIVO ARRANGEMENT On 23 August 2018, the contract between DNA Star Vegas Co., Ltd and Vivo Tower Holdings Limited (‘Vivo’), announced to the market on 16 June 2017, was terminated. DNA Star Vegas will now receive direct rental payments from the sub-licensees brought into the Star Vegas property by Vivo, which will substantially replace the fixed fee previously paid by Vivo. Under a new agreement, Vivo’s role is to market and manage the online gaming platform owned by DNA Star Vegas, in return for a revenue share. The directors are not aware of any other events subsequent to the reporting period that may have a material impact on the financial statements. NOTE 36. NET CASH FLOWS FROM OPERATING ACTIVITIES CONSOLIDATED 2018 2017 $ $ a) Reconciliation of (loss)/profit after income tax to net cash from operating activities (Loss)/profit after income tax expense for the year (124,248,871) 31,189,049 Adjustments for: Depreciation and amortisation 9,981,320 10,129,299 Impairment of assets 143,860,973 198,785 Share-based payments 280,269 273,716 Non-cash finance costs 3,839,305 8,037,166 Gain on revaluation of derivative financial liability (681,507) (1,113,012) Change in operating assets and liabilities: Decrease in trade and other receivables 9,505,655 5,581,440 (Increase)/decrease in inventories (503,870) 525,402 (Increase)/decrease in other operating assets (1,390,974) 38,057 Decrease in trade and other payables (7,180,789) (7,587,489) Increase/(decrease) in provision for income tax 880,635 (432,382) Increase in provisions for employee benefits 290,058 515,367 Net cash from operating activities 34,632,204 47,355,398 b) Change in liabilities arising from financing activities 2018 $ Borrowings at beginning of the year (note 22) 108,462,225 Repayments (44,326,139) Foreign exchange adjustments 2,426,096 Other non-cash movements 3,839,305 Borrowings at end of the year (note 22) 70,401,487