CONSOLIDATED STATEMENT OF CASH FLOWS
(All amounts in RMB millions)
|
Year ended 31 December |
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|
2020 |
2019 |
|
|
|
|
|
|
Cash flows from operating activities |
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|
Cash generated from operations |
107,428 |
94,952 |
|
Interest received |
1,309 |
1,551 |
|
Interest paid |
(1,832) |
(2,521) |
|
Income tax paid |
(1,354) |
(304) |
|
|
|
|
|
Net cash inflow from operating activities |
105,551 |
93,678 |
|
|
|
|
|
Cash flows from investing activities |
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|
Purchase of property, plant and equipment and right-of-use assets |
(53,981) |
(56,187) |
|
Purchase of other assets |
(4,675) |
(4,355) |
|
Proceeds from disposal of property, plant and equipment and other assets |
1,647 |
1,512 |
|
Acquisition of financial assets measured at FVPL |
(5,751) |
(423) |
|
Proceeds from disposal of financial assets measured at FVPL |
4,268 |
531 |
|
Acquisition of debt securities measured at FVOCI (recycling) |
(42,650) |
— |
|
Proceeds from disposal of debt securities measured at FVOCI (recycling) |
19,511 |
— |
|
Acquisition of other financial assets measured at amortised cost |
(9,050) |
— |
|
Proceeds from disposal of other financial assets measured at amortised cost |
9,050 |
— |
|
Dividend received from financial assets measured at FVOCI (non-recycling) |
210 |
205 |
|
Acquisition of interest in associates |
(1,349) |
(15) |
|
Acquisition of interest in joint ventures |
(117) |
(137) |
|
Proceeds from disposal of associates and a joint venture |
19 |
— |
|
Dividends received from associates |
546 |
82 |
|
(Increase)/Decrease in short-term bank deposits and restricted deposits |
(6,900) |
34 |
|
Lending by Unicom Group Finance Company Limited (“Finance Company”) to a related party |
(16,500) |
(11,434) |
|
Repayment of loans from related parties to Finance Company |
13,704 |
11,134 |
|
|
|
|
|
Net cash outflow from investing activities |
(92,018) |
(59,053) |
|
|
|
|
|
Year ended 31 December |
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Note |
2020 |
2019 |
|
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|
|
|
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Cash flows from financing activities |
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|
Capital contributions from non-controlling interests |
66 |
508 |
|
|
Proceeds from short-term bank loans |
2,740 |
28,784 |
|
|
Proceeds from commercial papers |
8,000 |
8,995 |
|
|
Proceeds from promissory notes |
— |
992 |
|
|
Proceeds from corporate bonds |
— |
2,000 |
|
|
Loans from a related party |
— |
50 |
|
|
Repayment of short-term bank loans |
(7,564) |
(38,290) |
|
|
Repayment of long-term bank loans |
(395) |
(418) |
|
|
Repayment of commercial papers |
(10,000) |
— |
|
|
Repayment of related party loans |
(50) |
(48) |
|
|
Repayment of corporate bonds |
— |
(17,000) |
|
|
Capital element of lease rentals paid |
(11,696) |
(11,123) |
|
|
Payment of issuing expense for commercial papers |
(7) |
— |
|
|
Dividends paid to equity shareholders of the Company |
32 |
(5,447) |
(4,100) |
|
Net deposits with Finance Company by related parties |
283 |
236 |
|
|
Increase in statutory reserve deposits placed by Finance Company |
(1,140) |
(351) |
|
|
|
|
|
|
|
Net cash outflow from financing activities |
(25,210) |
(29,765) |
|
|
|
|
|
|
|
Net (decrease)/increase in cash and cash equivalents |
(11,677) |
4,860 |
|
|
Cash and cash equivalents, beginning of year |
34,945 |
30,060 |
|
|
Effect of changes in foreign exchange rate |
(183) |
25 |
|
|
|
|
|
|
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Cash and cash equivalents, end of year |
29 |
23,085 |
34,945 |
|
|
|
|
|
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Analysis of the balances of cash and cash equivalents: |
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|
Cash balances |
1 |
1 |
|
|
Bank balances |
23,084 |
34,944 |
|
|
|
|
|
|
|
23,085 |
34,945 |
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|
|
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The notes on pages 102 to 185 are an integral part of these consolidated financial statements.
(a) The reconciliation of profit before income tax to cash generated from operating activities is as follows:
|
Year ended 31 December |
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|
2020 |
2019 |
|
|
|
|
|
|
Profit before income tax |
16,027 |
14,167 |
|
Adjustments for: |
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|
Depreciation and amortisation |
83,017 |
83,080 |
|
Interest income |
(1,366) |
(1,272) |
|
Finance costs |
1,564 |
1,991 |
|
Loss on disposal of property, plant and equipment |
2,365 |
2,179 |
|
Credit loss allowance and write-down of inventories |
5,584 |
3,663 |
|
Dividend from financial assets measured at FVOCI (non-recycling) |
(210) |
(205) |
|
Gains on disposal of financial assets measured at FVPL |
(87) |
(24) |
|
Investment income from debt securities measured at FVOCI (recycling) |
(174) |
— |
|
Fair value gains on financial assets measured at FVPL |
(154) |
(96) |
|
Share of net profit of associates |
(1,588) |
(1,359) |
|
Share of net profit of joint ventures |
(787) |
(646) |
|
Expenses for restricted shares of A Share Company granted to the Group’s employees |
375 |
571 |
|
Changes in working capital: |
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|
Increase in accounts receivable |
(4,151) |
(5,928) |
|
Decrease/(Increase) in contract assets |
1,125 |
(122) |
|
Increase in contract costs |
(1,371) |
(2,188) |
|
Decrease/(Increase) in inventories and consumables |
59 |
(335) |
|
(Increase)/Decrease in restricted deposits |
(233) |
321 |
|
Increase in other assets |
(1,694) |
(796) |
|
Increase in prepayments and other current assets |
(4,178) |
(1,876) |
|
Increase in amounts due from ultimate holding company |
(36) |
(7) |
|
(Increase)/Decrease in amounts due from related parties |
(5) |
745 |
|
(Increase)/Decrease in amounts due from domestic carriers |
(217) |
364 |
|
Increase in accounts payable and accrued liabilities |
8,210 |
2,386 |
|
Increase in taxes payable |
1,271 |
623 |
|
Increase in advances from customers |
29 |
2 |
|
Increase/(Decrease) in contract liabilities |
1,993 |
(2,002) |
|
Increase in deferred revenue |
1,076 |
1,164 |
|
Decrease in other obligations |
(198) |
(16) |
|
(Decrease)/Increase in amounts due to ultimate holding company |
(11) |
322 |
|
Increase in amounts due to related parties |
1,076 |
216 |
|
Increase in amounts due to domestic carriers |
117 |
30 |
|
|
|
|
|
Cash generated from operations |
107,428 |
94,952 |
|
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|
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