Your Browser seems to be outdated, Please update you browser to experiance a better output of the contents
EN 中文 MENU
Tools

Consolidated Statement of Cash Flows

CONSOLIDATED STATEMENTOF CASH FLOWS

 

for the year ended 31 December 2014 (Amounts in millions)

Note2014
RMB
2013
RMB
Net cash from operating activities(a)96,40588,351
Cash flows used in investing activities
Capital expenditure(80,273)(70,921)
Lease prepayments(184)(111)
Purchase of investments(2,990)-
Proceeds from disposal of property, plant and equipment7101,538
Proceeds from disposal of lease prepayments121360
Net cash inflow from disposal of a subsidiary-512
Purchase of short-term bank deposits(2,566)(2,750)
Maturity of short-term bank deposits3,4743,193
Payment for the payable to China Telecommunications Corporation related to the Mobile Network Acquisition (as defined in Note 16)-(14,269)
Payment for the first installment of the Mobile Network Acquisition-(25,500)
Net cash used in investing activities(81,708)(107,948)
Cash flows (used in)/from financing activities
Principal element of finance lease payments(1)(2)
Proceeds from bank and other loans53,02254,983
Repayment of bank and other loans(56,819)(44,053)
Payment of dividends(6,198)(5,433)
Payment of the acquisition price of the Seventh Acquisition(b)(278)-
Net cash (distributions to)/contributions from non-controlling interests(53)142
Net cash (used in)/from financing activities(10,327)5,637
Net increase/(decrease) in cash and cash equivalents4,370(13,960)
Cash and cash equivalents at 1 January16,07030,099
Effect of changes in foreign exchange rate(4)(69)
Cash and cash equivalents at 31 December20,43616,070

The notes on pages 128 to 193 form part of these financial statements.


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

2014
RMB
2013
RMB
Profit before taxation23,25723,088
Adjustments for:
Depreciation and amortisation66,34569,083
Impairment losses for doubtful debts2,0841,744
Write down of inventories151360
Investment income(6)(670)
Share of profits of associates(34)(103)
Interest income(304)(361)
Interest expense5,6505,511
Unrealised foreign exchange (gain)/loss(55)3
Loss/(gain) on retirement and disposal of property, plant and equipment2,287(1,021)
Operating profit before changes in working capital99,37597,634
Increase in accounts receivable(3,594)(3,156)
Decrease/(increase) in inventories2,280(955)
Increase in prepayments and other current assets(2,359)(1,077)
(Increase)/decrease in other assets(2)294
Increase in accounts payable6,4733,210
Increase in accrued expenses and other payables6,5713,148
Decrease in deferred revenues(573)(1,014)
Cash generated from operations108,17198,084
Interest received305358
Interest paid(5,693)(5,573)
Investment income received2921
Income tax paid(6,407)(4,539)
Net cash from operating activities96,40588,351

(b)

The Seventh Acquisition represents the acquisition of the 100% equity interest in China Telecom (Europe) Limited, a wholly owned subsidiary of China Telecommunications Corporation, by China Telecom Global Limited (“CT Global”, a subsidiary of the Company) from China Telecommunications Corporation on 31 December 2013.


The notes on pages 128 to 193 form part of these financial statements.