Consolidated Statement of Cash Flows
for the year ended 31 December 2013 (Amounts in millions)
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| Note | 2013 RMB | 2012 RMB (restated) | |
| Net cash from operating activities | (a) | 88,351 | 70,722 |
| Cash flows used in investing activities | |||
| Capital expenditure | (70,921) | (50,071) | |
| Lease prepayments | (111) | (133) | |
| Proceeds from disposal of property, plant and equipment | 1,538 | 2,696 | |
| Proceeds from disposal of lease prepayments | 360 | 255 | |
| Net cash inflow/(outflow) from disposal of a subsidiary | 1 | 512 | (116) |
| Purchase of time deposits with maturity over three months | (2,750) | (2,730) | |
| Maturity of time deposits with maturity over three months | 3,193 | 1,804 | |
| Payment for the payable to China Telecommunications Corporation related to the Mobile Network Acquisition (as defined in Note 16) | (14,269) | - | |
| Payment for the first installment of the Mobile Network Acquisition | (25,500) | - | |
| Net cash used in investing activities | (107,948) | (48,295) | |
| Cash flows from/(used in) financing activities | |||
| Principal element of finance lease payments | (2) | - | |
| Proceeds from bank and other loans | 54,983 | 9,702 | |
| Repayment of bank and other loans | (44,053) | (24,133) | |
| Payment of dividends | (5,433) | (5,625) | |
| Payment for the acquisition price of the Fifth Acquisition | 1 | - | (29) |
| Payment for the acquisition price of the Sixth Acquisition | 1 | - | (48) |
| Net cash contributions from non-controlling interests | 142 | 331 | |
| Net cash from/(used in) financing activities | 5,637 | (19,802) | |
| Net (decrease)/increase in cash and cash equivalents | (13,960) | 2,625 | |
| Cash and cash equivalents at 1 January | 30,099 | 27,475 | |
| Effect of changes in foreign exchange rate | (69) | (1) | |
| Cash and cash equivalents at 31 December | 16,070 | 30,099 |
(a) Reconciliation of profit before taxation to net cash from operating activities
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| 2013 RMB | 2012 RMB (restated) | |
| Profit before taxation | 23,088 | 19,817 |
| Adjustments for: | ||
| Depreciation and amortisation | 69,083 | 49,666 |
| Impairment losses for doubtful debts | 1,744 | 1,612 |
| Write down of inventories | 360 | 235 |
| Investment income | (670) | (93) |
| Share of profits of associates | (103) | (78) |
| Interest income | (361) | (591) |
| Interest expense | 5,511 | 2,154 |
| Unrealised foreign exchange loss/(gain) | 3 | (1) |
| Gain on retirement and disposal of property, plant and equipment | (1,021) | (2,429) |
| Operating profit before changes in working capital | 97,634 | 70,292 |
| Increase in accounts receivable | (3,156) | (2,124) |
| Increase in inventories | (955) | (1,185) |
| Increase in prepayments and other current assets | (1,077) | (1,045) |
| Decrease in other assets | 294 | 484 |
| Increase in accounts payable | 3,210 | 5,016 |
| Increase in accrued expenses and other payables | 3,148 | 6,245 |
| Decrease in deferred revenues | (1,014) | (1,360) |
| Cash generated from operations | 98,084 | 76,323 |
| Interest received | 358 | 587 |
| Interest paid | (5,573) | (2,200) |
| Investment income received | 21 | 23 |
| Income tax paid | (4,539) | (4,011) |
| Net cash from operating activities | 88,351 | 70,722 |
The notes on pages 118 to 185 form part of these financial statements.
