Consolidated Statement of Cash Flows
for the year ended 31 December 2011 (Amounts in millions)

       
   

2011

2010

 

Note

RMB

RMB

     

(restated)

       

Net cash from operating activities

(a)

73,006

75,571

       

Cash flows used in investing activities

     

Capital expenditure

 

(48,495)

(41,597)

Purchase of investments

 

(6)

(41)

Lease prepayments

 

(60)

(111)

Proceeds from disposal of property, plant and equipment

 

3,234

2,738

Proceeds from disposal of lease prepayments

 

487

176

Proceeds from disposal of investments

 

1,040

1

Proceeds from return of investments

 

10

–

Purchase of time deposits with maturity over three months

 

(1,804)

(1,968)

Maturity of time deposits with maturity over three months

 

1,968

442

Payment of purchase price for the acquisition of CDMA business

 

–

(5,374)

Payment for acquisition of a subsidiary

 

(11)

–

       

Net cash used in investing activities

 

(43,637)

(45,734)

       

Cash flows used in financing activities

     

Principal element of finance lease payments

 

–

(18)

Proceeds from bank and other loans

 

23,876

53,518

Repayment of bank and other loans

 

(45,329)

(86,001)

Payment of dividends

 

(6,174)

(5,608)

Distribution to China Telecommunications Corporation in connection with the Fourth Acquisition

1

–

(535)

Payment for acquisition of non-controlling interests

 

(1)

(27)

Payment for the acquisition price of the Fifth Acquisition

1

(27)

–

Net cash distributions to non-controlling interests

 

(65)

(100)

       

Net cash used in financing activities

 

(27,720)

(38,771)

       

Net increase/(decrease) in cash and cash equivalents

 

1,649

(8,934)

Cash and cash equivalents at 1 January

 

25,824

34,804

Effect of changes in foreign exchange rate

 

(101)

(46)

       

Cash and cash equivalents at 31 December

 

27,372

25,824

       

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

 

2011

2010

 

RMB

RMB

   

(restated)

     

Profit before taxation

22,014

20,311

Adjustments for:

   

Depreciation and amortisation

51,224

52,215

Impairment losses on property, plant and equipment

–

139

Impairment losses for doubtful debts

1,367

1,593

Write down of inventories

96

87

Investment income

(40)

(328)

Share of profits of associates

(99)

(131)

Interest income

(405)

(287)

Interest expense

2,710

3,795

Unrealised foreign exchange (gain)/loss

(51)

92

Gain on retirement and disposal of property, plant and equipment

(2,436)

(430)

     

Operating profit before changes in working capital

74,380

77,056

Increase in accounts receivable

(2,546)

(1,475)

Increase in inventories

(1,764)

(629)

Increase in prepayments and other current assets

(3,018)

(1,203)

Decrease in other assets

795

928

Increase in accounts payable

6,324

4,120

Increase in accrued expenses and other payables

6,943

6,003

Decrease in deferred revenues

(1,398)

(2,259)

     

Cash generated from operations

79,716

82,541

Interest received

396

292

Interest paid

(3,084)

(3,824)

Investment income received

42

10

Income tax paid

(4,064)

(3,448)

     

Net cash from operating activities

73,006

75,571

     

The notes on pages 96 to 146 form part of these financial statements.