| 2016 | 2015 | ||
| Note | RMB | RMB | |
| Net cash from operating activities | (a) | 101,130 | 108,750 |
| Cash flows used in investing activities | |||
| Capital expenditure | (96,673) | (101,898) | |
| Lease prepayments | (99) | (124) | |
| Purchase of investments | (b) | (3,099) | (10) |
| Proceeds from disposal of property, | |||
| plant and equipment | 1,560 | 755 | |
| Proceeds from disposal of lease prepayments | 10 | 58 | |
| Proceeds from disposal of Investments | - | 2 | |
| Net cash outflow from disposal of a subsidiary | (50) | - | |
| Purchase of short-term bank deposits | (3,237) | (3,764) | |
| Maturity of short-term bank deposits | 2,550 | 2,731 | |
| Net cash used in investing activities | (99,038) | (102,250) | |
| Cash flows (used in)/from financing activities | |||
| Principal element of finance lease payments | (59) | (14) | |
| Proceeds from bank and other loans | 110,446 | 67,875 | |
| Repayment of bank and other loans | (113,366) | (56,862) | |
| Payment of dividends | (6,489) | (6,160) | |
| Payment for the acquisition of | |||
| non-controlling interests | - | (7) | |
| Contribution from non-controlling interests | - | 127 | |
| Distribution to non-controlling interests | (87) | (150) | |
| Net cash (used in)/from financing activities | (9,555) | 4,809 | |
| Net (decrease)/increase in cash and | |||
| cash equivalents | (7,463) | 11,309 | |
| Cash and cash equivalents at 1 January | 31,869 | 20,436 | |
| Effect of changes in foreign exchange rate | 211 | 124 | |
| Cash and cash equivalents at 31 December | 24,617 | 31,869 |
(a) Reconciliation of profit before taxation to net cash from operating activities
| 2016 RMB |
2015 RMB |
||
| Profit before taxation | 24,097 | 26,693 | |
| Adjustments for: | |||
| Depreciation and amortisation | 67,938 | 67,664 | |
| Impairment losses for doubtful debts | 2,277 | 2,231 | |
| Impairment losses for long-lived assets | 62 | 51 | |
| Write down of inventories | 175 | 147 | |
| Investment income | (40) | (8) | |
| Share of (profits)/losses of associates | (91) | 698 | |
| Interest income | (353) | (375) | |
| Interest expense | 3,701 | 4,573 | |
| Foreign exchange (gain)/loss | (113) | 75 | |
| Net loss on retirement and disposal of | |||
| long-lived assets | 1,867 | 1,573 | |
| Gain from Tower Assets Disposal | |||
| (as defined in Note 18) | - | (5,214) | |
| Operating profit before changes in | |||
| working capital | 99,520 | 98,108 | |
| Increase in accounts receivable | (2,348) | (1,778) | |
| Decrease/(increase) in inventories | 1,033 | (2,199) | |
| Increase in prepayments and other current assets | (3,731) | (5,854) | |
| Decrease/(increase) in other assets | 366 | (87) | |
| Increase in accounts payable | 3,779 | 22,156 | |
| Increase in accrued expenses and other payables | 10,864 | 7,119 | |
| Decrease in deferred revenues | (418) | (417) | |
| Cash generated from operations | 109,065 | 117,048 | |
| Interest received | 365 | 375 | |
| Interest paid | (3,736) | (4,601) | |
| Investment income received | 57 | 27 | |
| Income tax paid | (4,621) | (4,099) | |
| Net cash from operating activities | 101,130 | 108,750 | |
(b)
The amount for the year ended 31 December 2016 includes the payment for the cash injection amounting to RMB2,966 million (“Cash Consideration”) to China Tower Corporation Limited (“China Tower”) in relation to the Tower Assets Disposal. The Cash Consideration was paid in February 2016.
The notes on pages 133 to 195 form part of these consolidated financial statements