for the year ended 31 December 2010 (Amounts in millions)
|
2010 |
2009 |
||
|
Note |
RMB |
RMB |
|
|
Net cash from operating activities |
(a) |
75,571 |
74,988 |
|
Cash flows from/(used in) investing activities |
|||
|
Capital expenditure |
(41,597) |
(40,311) |
|
|
Purchase of investments |
(41) |
(23) |
|
|
Lease prepayments |
(111) |
(94) |
|
|
Proceeds from disposal of property, plant and equipment |
2,738 |
393 |
|
|
Proceeds from disposal of lease prepayments |
176 |
380 |
|
|
Proceeds from disposal of investments |
1 |
735 |
|
|
Purchase of time deposits with maturity over three months |
(1,968) |
(442) |
|
|
Maturity of time deposits with maturity over three months |
442 |
397 |
|
|
Payment of purchase price for the acquisition of CDMA business, net of cash acquired |
(5,374) |
(4,290) |
|
|
Net cash used in investing activities |
(45,734) |
(43,255) |
|
|
Cash flows from/(used in) financing activities |
|||
|
Principal element of finance lease payments |
(18) |
(22) |
|
|
Proceeds from bank and other loans |
53,518 |
88,958 |
|
|
Proceeds from issuance of medium-term notes |
– |
29,906 |
|
|
Repayments of bank and other loans |
(86,001) |
(111,084) |
|
|
Repayment of short-term commercial papers |
– |
(10,000) |
|
|
Repayment of amount due to China Telecommunications Corporation in connection with the Second Acquisition |
1 |
– |
(15,150) |
|
Payment of dividends |
(5,608) |
(6,493) |
|
|
Distribution to China Telecommunications Corporation in connection with the Fourth Acquisition |
(535) |
– |
|
|
Payment for acquisition of non-controlling interests |
(27) |
– |
|
|
Net cash distributions to non-controlling interests |
(100) |
(908) |
|
|
Net cash used in financing activities |
(38,771) |
(24,793) |
|
|
Net (decrease)/increase in cash and cash equivalents |
(8,934) |
6,940 |
|
|
Cash and cash equivalents at 1 January |
34,804 |
27,866 |
|
|
Effect of changes in foreign exchange rate |
(46) |
(2) |
|
|
Cash and cash equivalents at 31 December |
25,824 |
34,804 |
|
(a) Reconciliation of profit before taxation to net cash from operating activities
|
2010 |
2009 |
|
|
RMB |
RMB |
|
|
Profit before taxation |
20,908 |
19,175 |
|
Adjustments for: |
||
|
Depreciation and amortisation |
51,656 |
52,243 |
|
Impairment loss on property, plant and equipment |
139 |
753 |
|
Impairment losses for doubtful debts |
1,593 |
1,791 |
|
Write down of inventory |
87 |
108 |
|
Investment income |
(361) |
(791) |
|
Share of profits of associates |
(131) |
(101) |
|
Interest income |
(287) |
(282) |
|
Interest expense |
3,795 |
4,724 |
|
Unrealised foreign exchange loss/(gain) |
92 |
(67) |
|
(Gain)/loss on retirement and disposal of property, plant and equipment |
(435) |
1,352 |
|
Operating profit before changes in working capital |
77,056 |
78,905 |
|
Increase in accounts receivable |
(1,475) |
(1,906) |
|
Increase in inventories |
(629) |
(175) |
|
Increase in prepayments and other current assets |
(1,203) |
(78) |
|
Decrease in other assets |
928 |
1,290 |
|
Increase in accounts payable |
4,120 |
2,178 |
|
Increase in accrued expenses and other payables |
6,003 |
7,105 |
|
Decrease in deferred revenues |
(2,259) |
(2,982) |
|
Cash generated from operations |
82,541 |
84,337 |
|
Interest received |
292 |
271 |
|
Interest paid |
(3,824) |
(5,053) |
|
Investment income received |
10 |
58 |
|
Income tax paid |
(3,448) |
(4,625) |
|
Net cash from operating activities |
75,571 |
74,988 |
The notes on pages 98 to 146 form part of these financial statements.