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.