- Report of the Independent International Auditor
- Consolidated Statement of Financial Position
- Statement of Financial Position
- Consolidated Statement of Comprehensive Income
- Consolidated Statement of Changes in Equity
- Consolidated Statement of Cash Flows
- Notes to the Financial Statements
- Financial Summary
Consolidated Statement of Cash Flows
For the year ended 31 December 2009
(Amounts in millions)
2009 |
2008 |
||||
Note |
RMB |
RMB |
|||
Net cash from operating activities |
(a) |
74,988 |
76,756 |
||
Cash flows from investing activities |
|||||
Capital expenditure |
(40,311) |
(46,652) |
|||
Purchase of investments |
(23) |
(92) |
|||
Lease prepayments |
(94) |
(120) |
|||
Proceeds from disposal of property, plant and equipment |
393 |
620 |
|||
Proceeds from disposal of lease prepayments |
380 |
— |
|||
Proceeds from disposal of investments |
735 |
111 |
|||
Purchase of time deposits with maturity over three months |
(442) |
(397) |
|||
Maturity of time deposits with maturity over three months |
397 |
222 |
|||
Payment of purchase price for the acquisition of CDMA business, net of cash acquired |
(4,290) |
(29,511) |
|||
Net cash used in investing activities |
(43,255) |
(75,819) |
|||
Cash flows from financing activities |
|||||
Principal element of finance lease payments |
(22) |
(24) |
|||
Proceeds from bank and other loans |
88,958 |
109,235 |
|||
Proceeds from issuance of medium-term notes |
29,906 |
19,787 |
|||
Repayments of bank and other loans |
(111,084) |
(96,650) |
|||
Repayment of short-term commercial papers |
(10,000) |
— |
|||
Repayment of amount due to China Telecommunications Corporation in connection with the First Acquisition |
— |
(15,000) |
|||
Repayment of amount due to China Telecommunications Corporation in connection with the Second Acquisition |
(15,150) |
— |
|||
Payment of purchase price for the Fourth Acquisition |
— |
(5,557) |
|||
Payment of dividends |
(6,493) |
(6,167) |
|||
Net cash distributions to minority interests |
(908) |
(39) |
|||
Net cash (used in)/generated from financing activities |
(24,793) |
5,585 |
|||
Net increase in cash and cash equivalents |
6,940 |
6,522 |
|||
Cash and cash equivalents at 1 January |
27,866 |
21,427 |
|||
Effect of changes in foreign exchange rate |
(2) |
(83) |
|||
Cash and cash equivalents at 31 December |
34,804 |
27,866 |
|||
(a) Reconciliation of profit before taxation to net cash from operating activities
2009 |
2008 |
|||||
RMB |
RMB |
|||||
Profit before taxation |
19,175 |
186 |
||||
Adjustments for: |
||||||
Depreciation and amortisation |
52,243 |
53,880 |
||||
Impairment loss on property, plant and equipment |
753 |
24,167 |
||||
Impairment losses for doubtful debts |
1,791 |
1,828 |
||||
Impairment losses for inventory |
108 |
— |
||||
Investment income |
(791) |
(5) |
||||
Share of profits of associates |
(101) |
(112) |
||||
Interest income |
(282) |
(430) |
||||
Interest expense |
4,724 |
5,336 |
||||
Unrealised foreign exchange (gain)/loss |
(67) |
170 |
||||
Loss on retirement and disposal of property, plant and equipment |
1,352 |
2,550 |
||||
Operating profit before changes in working capital, net of effect of acquisition |
78,905 |
87,570 |
||||
Increase in accounts receivable |
(1,906) |
(1,439) |
||||
(Increase)/decrease in inventories |
(175) |
357 |
||||
Increase in prepayments and other current assets |
(78) |
(1,155) |
||||
Decrease in other assets |
1,290 |
1,309 |
||||
Increase in accounts payable |
2,178 |
3,745 |
||||
Increase in accrued expenses and other payables |
7,105 |
3,000 |
||||
Decrease in deferred revenues |
(2,982) |
(4,042) |
||||
Cash generated from operations |
84,337 |
89,345 |
||||
Interest received |
271 |
440 |
||||
Interest paid |
(5,053) |
(5,055) |
||||
Investment income received |
58 |
21 |
||||
Income tax paid |
(4,625) |
(7,995) |
||||
Net cash from operating activities |
74,988 |
76,756 |
||||
The notes on pages 110 to 166 form part of these financial statements.