Consolidated Statement of Cash Flows
for the year ended 31 December 2020 (Amounts in millions)
|
2020 |
2019 |
||
|
Notes |
RMB |
RMB |
|
|
Net cash from operating activities |
(a) |
132,260 |
112,600 |
|
Cash flows used in investing activities |
|||
|
Capital expenditure |
(88,748) |
(82,853) |
|
|
Purchase of investments |
(74) |
(478) |
|
|
Payments for right-of-use assets |
(220) |
(310) |
|
|
Proceeds from disposal of property, plant and equipment |
863 |
2,514 |
|
|
Proceeds from disposal of right-of-use assets |
24 |
115 |
|
|
Proceeds from disposal of investments |
47 |
296 |
|
|
Purchase of short-term bank deposits |
(4,664) |
(5,119) |
|
|
Maturity of short-term bank deposits |
5,695 |
8,621 |
|
|
Net cash used in investing activities |
(87,077) |
(77,214) |
|
|
Cash flows used in financing activities |
|||
|
Repayments of principal of lease liabilities |
(12,738) |
(10,699) |
|
|
Proceeds from bank and other loans |
81,049 |
103,315 |
|
|
Repayments of bank and other loans |
(106,982) |
(120,107) |
|
|
Payment of dividends |
(9,262) |
(8,891) |
|
|
Distribution to non-controlling interests |
(42) |
(181) |
|
|
Payment for the acquisition of non-controlling interests |
(1) |
(8) |
|
|
Contribution from non-controlling interests |
– |
1,590 |
|
|
Advanced payment received in respect of contribution from non-controlling interest |
978 |
– |
|
|
Net deposits with Finance Company |
(b) |
5,728 |
4,098 |
|
Increase in statutory reserve deposits placed by Finance Company |
(b) |
(837) |
(405) |
|
Net cash used in financing activities |
(42,107) |
(31,288) |
|
|
Net increase in cash and cash equivalents |
3,076 |
4,098 |
|
|
Cash and cash equivalents at 1 January |
20,791 |
16,666 |
|
|
Effect of changes in foreign exchange rate |
(183) |
27 |
|
|
Cash and cash equivalents at 31 December |
23,684 |
20,791 |
(a) Reconciliation of profit before taxation to net cash from operating activities
|
2020 |
2019 |
|
|
RMB |
RMB |
|
|
Profit before taxation |
27,387 |
27,034 |
|
Adjustment for: |
||
|
Depreciation and amortisation |
90,240 |
88,145 |
|
Impairment loss on property, plant and equipment |
5,042 |
– |
|
Impairment losses for financial assets and other items, net of reversal |
1,512 |
1,695 |
|
Write down of inventories, net of reversal |
35 |
61 |
|
Investment income |
(60) |
(30) |
|
Share of profits of associates |
(1,701) |
(1,573) |
|
Interest income |
(582) |
(492) |
|
Interest expense |
3,433 |
4,090 |
|
Net foreign exchange loss |
163 |
41 |
|
Net loss on retirement and disposal of long-lived assets |
3,827 |
2,710 |
|
Operating profit before changes in working capital |
129,296 |
121,681 |
|
Increase in accounts receivable |
(1,771) |
(2,601) |
|
(Increase)/decrease in contract assets |
(132) |
4 |
|
(Increase)/decrease in inventories |
(474) |
1,891 |
|
(Increase)/decrease in prepayments and other current assets |
(116) |
1,045 |
|
(Increase)/decrease in restricted cash |
(6,097) |
89 |
|
(Increase)/decrease in other assets |
(2,971) |
414 |
|
Increase/(decrease) in accounts payable |
5,689 |
(2,657) |
|
Increase in accrued expenses and other payables |
1,934 |
614 |
|
Increase/(decrease) in contract liabilities |
9,516 |
(1,412) |
|
Decrease in deferred revenues |
(55) |
(90) |
|
Cash generated from operations |
134,819 |
118,978 |
|
Interest received |
594 |
474 |
|
Interest paid |
(3,524) |
(4,200) |
|
Investment income received |
603 |
133 |
|
Income tax paid |
(232) |
(2,785) |
|
Net cash from operating activities |
132,260 |
112,600 |
(b) “Finance Company” refers to China Telecom Group Finance Co., Ltd., a subsidiary of the Company established on 8 January 2019, providing capital and financial management services to the member units of China Telecommunications Corporation.
The notes on pages 171 to 244 form part of these consolidated financial statements.