2012 Annual Report

Financial Statement > Consolidated Statement of Cash Flows

2012

2011

Note

RMB

RMB

(restated)

Net cash from operating activities

(a)

70,667

73,009

Cash flows used in investing activities

Capital expenditure

(50,028)

(48,495)

Purchase of investments

(6)

Lease prepayments

(133)

(60)

Proceeds from disposal of property, plant and equipment

2,696

3,234

Proceeds from disposal of lease prepayments

255

487

Proceeds from disposal of investments

1,040

Net cash outflow from disposal of a subsidiary

(116)

Proceeds from return of investments

10

Purchase of time deposits with maturity over three months

(2,730)

(1,804)

Maturity of time deposits with maturity over three months

1,804

1,968

Payment for acquisition of a subsidiary

(11)

Net cash used in investing activities

(48,252)

(43,637)

Cash flows used in financing activities

Proceeds from bank and other loans

9,702

23,876

Repayment of bank and other loans

(24,133)

(45,329)

Payment of dividends

(5,625)

(6,174)

Payment for acquisition of non-controlling interests

(1)

Payment for the acquisition price of the Fifth Acquisition

1

(29)

(27)

Payment for the acquisition price of the Sixth Acquisition

1

(48)

Distribution to China Telecom Group

(3)

Net cash contributions/(distributions) to non-controlling interests

331

(65)

Net cash used in financing activities

(19,802)

(27,723)

Net increase in cash and cash equivalents

2,613

1,649

Cash and cash equivalents at 1 January

27,372

25,824

Effect of changes in foreign exchange rate

(3)

(101)

Cash and cash equivalents at 31 December

29,982

27,372

(a) Reconciliation of profit before taxation to net cash from operating activities

2012

2011

RMB

RMB

(restated)

Profit before taxation

19,793

22,012

Adjustments for:

Depreciation and amortisation

49,655

51,233

Impairment losses for doubtful debts

1,612

1,367

Write down of inventories

235

96

Investment income

(93)

(40)

Share of profits of associates

(78)

(99)

Interest income

(591)

(405)

Interest expense

2,154

2,710

Unrealised foreign exchange loss/(gain)

1

(51)

Gain on retirement and disposal of property, plant and equipment

(2,429)

(2,436)

Operating profit before changes in working capital

70,259

74,387

Increase in accounts receivable

(2,125)

(2,546)

Increase in inventories

(1,185)

(1,763)

Increase in prepayments and other current assets

(1,025)

(3,019)

Decrease in other assets

484

796

Increase in accounts payable

4,987

6,323

Increase in accrued expenses and other payables

6,233

6,939

Decrease in deferred revenues

(1,360)

(1,398)

Cash generated from operations

76,268

79,719

Interest received

587

396

Interest paid

(2,200)

(3,084)

Investment income received

23

42

Income tax paid

(4,011)

(4,064)

Net cash from operating activities

70,667

73,009

The notes on pages 118 to 174 form part of these financial statements.