HKEx Stock Code: 728
NYSE Stock Code: CHA
Annual report2016
Consolidated Statement of Cash Flows
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