Consolidated Statement of Cash Flows
| Notes | 2017 RMB | 2016 RMB (restated) | |
| Net cash from operating activities | (a) | 96,502 | 101,135 |
| Cash flows used in investing activities Capital expenditure Lease prepayments Purchase of investments Proceeds from disposal of property, plant and equipment Proceeds from disposal of lease prepayments Net cash inflow/(outflow) from disposal of a subsidiary Purchase of short-term bank deposits Maturity of short-term bank deposits |
(b) |
(87,334) (89) (443) 2,066 72 184 (2,815) 3,096 |
(96,678) (99) (3,099) 1,560 10 (50) (3,237) 2,550 |
| Net cash used in investing activities | (85,263) | (99,043) | |
| Cash flows used in financing activities Principal element of finance lease payments Proceeds from bank and other loans Repayment of bank and other loans Repayment of deferred consideration in respect of the Mobile Network Acquisition (as defined in Note 16) Payment of dividends Distributions to non-controlling interests Payment for the acquisition of non-controlling interests |
(84) 123,250 (69,953) (61,710) (7,530) (89) (31) |
(59) 110,446 (113,366) - (6,489) (87) - |
|
| Net cash used in financing activities | (16,147) | (9,555) | |
| Net decrease in cash and cash equivalents Cash and cash equivalents at 1 January Effect of changes in foreign exchange rate |
(4,908) 24,617 (299) |
(7,463) 31,869 211 |
|
| Cash and cash equivalents at 31 December | 19,410 | 24,617 |
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Reconciliation of profit before taxation to net cash from operating activities
| 2017 | 2016 | |
| RMB | RMB | |
| (restated) | ||
| Profit before taxation | 24,953 | 24,116 |
| Adjustments for: | ||
| Depreciation and amortisation | 74,951 | 67,942 |
| Impairment losses for doubtful debts | 2,036 | 2,278 |
| Impairment losses for long-lived assets | 10 | 62 |
| Write down of inventories | 178 | 176 |
| Investment income | (147) | (40) |
| Share of profits of associates | (877) | (91) |
| Interest income | (429) | (354) |
| Interest expense | 3,586 | 3,702 |
| Net foreign exchange loss/(gain) | 134 | (113) |
| Net loss on retirement and disposal of long-lived assets | 1,841 | 1,867 |
| Operating profit before changes in working capital | 106,236 | 99,545 |
| Increase in accounts receivable | (2,770) | (2,306) |
| Decrease in inventories | 905 | 1,038 |
| Increase in prepayments and other current assets | (2,618) | (3,783) |
| (Increase)/decrease in other assets | (231) | 366 |
| (Decrease)/increase in accounts payable | (4,213) | 3,755 |
| Increase in accrued expenses and other payables | 7,232 | 10,878 |
| Decrease in deferred revenues | (202) | (418) |
| Cash generated from operations | 104,339 | 109,075 |
| Interest received | 433 | 366 |
| Interest paid | (3,707) | (3,737) |
| Investment income received | 63 | 57 |
| Income tax paid | (4,626) | (4,626) |
| Net cash from operating activities | 96,502 | 101,135 |
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The amount for the year ended 31 December 2016 included the payment for the cash injection amounting to RMB2,966 million (“Cash Consideration”) to China Tower Corporation Limited (“China Tower”) in relation to the disposal of certain telecommunications towers and related assets to China Tower (the “Tower Assets Disposal”) in 2015. The Cash Consideration was paid in February 2016.