Annual Report 2017
Consolidated Statement of Cash Flows
(All amounts in RMB millions)
| Year ended 31 December | |||
| Note | 2017 | 2016 | |
|---|---|---|---|
| Cash flows from operating activities | |||
| Cash generated from operations | (a) | 91,519 | 81,168 |
| Interest received | 807 | 335 | |
| Interest paid | (6,293) | (4,938) | |
| Income tax paid | (979) | (1,972) | |
| Net cash inflow from operating activities | 85,054 | 74,593 | |
| Cash flows from investing activities | |||
| Purchase of property, plant and equipment | (61,489) | (98,293) | |
| Proceeds from disposal of Tower Assets and | |||
| other property, plant and equipment | 22,121 | 6,390 | |
| Dividends received from financial assets at fair value through | |||
| other comprehensive income | 167 | 357 | |
| Proceeds from disposal of financial assets at fair value through | |||
| profit and loss | 60 | 68 | |
| Dividends received from associates | 10 | - | |
| (Increase)/Decrease in short-term bank deposits and restricted deposits | (3,094) | 2 | |
| Purchase of other assets | (4,204) | (4,092) | |
| Acquisition of financial assets at fair value through profit and loss | (74) | (51) | |
| Acquisition of financial assets at fair value through other | |||
| comprehensive income | (8) | (18) | |
| Acquisition of interest in associates | (5) | (48) | |
| Acquisition of interest in joint ventures | (620) | (64) | |
| Lending by China Unicom Finance Company Limited ("Finance Company") | (700) | - | |
| Repayment of loan lent by Finance Company | 500 | - | |
| Net cash outflow from investing activities | (47,336) | (95,749) | |
| Cash flows from financing activities | |||
| Proceeds from shares issued | 74,954 | - | |
| Capital contributions from non-controlling interests | - | 270 | |
| Proceeds from commercial papers | 26,941 | 59,880 | |
| Proceeds from short-term bank loans | 117,571 | 142,567 | |
| Proceeds from long-term bank loans | 1,549 | 3,307 | |
| Loans from ultimate holding company | 5,237 | - | |
| Loans from related parties | 535 | - | |
| Proceeds from corporate bonds | - | 17,965 | |
| Repayment of commercial papers | (54,000) | (44,000) | |
| Repayment of short-term bank loans | (172,065) | (149,425) | |
| Repayment of long-term bank loans | (2,686) | (84) | |
| Repayment of related party loan | (60) | - | |
| Repayment of ultimate holding company loan | (3,893) | (1,344) | |
| Repayment of finance lease | (695) | (406) | |
| Repayment of promissory notes | (19,000) | (2,500) | |
| Repayment of corporate bonds | (2,000) | - | |
| Payment of issuing expense for promissory notes | (82) | (102) | |
| Dividends paid to equity shareholders of the Company | 30 | - | (4,071) |
| Net (withdrawal)/deposits by Unicom Group and | |||
| its subsidiaries from/with Finance Company | (112) | 2,397 | |
| Net deposits from a joint venture with Finance Company | 12 | - | |
| Increase in statutory reserve deposits placed by Finance Company | 26(i) | (620) | (1,577) |
| Net cash (outflow)/inflow from financing activities | (28,414) | 22,877 | |
| Net increase in cash and cash equivalents | 9,304 | 1,721 | |
| Cash and cash equivalents, beginning of year | 23,633 | 21,755 | |
| Effect of changes in foreign exchange rate | (101) | 157 | |
| Cash and cash equivalents, end of year | 27 | 32,836 | 23,633 |
| Analysis of the balances of cash and cash equivalents: | |||
| Cash balances | 3 | 1 | |
| Bank balances | 32,833 | 23,632 | |
| 32,836 | 23,633 | ||
(a) The reconciliation of profit before income tax to cash generated from operating activities is as follows:
| Year ended 31 December | ||
| 2017 | 2016 | |
|---|---|---|
| Profit before income tax | 2,593 | 784 |
| Adjustments for: | ||
| Depreciation and amortisation | 77,492 | 76,805 |
| Interest income | (1,647) | (1,160) |
| Finance costs | 5,363 | 4,832 |
| Loss on disposal of property, plant and equipment | 3,489 | 355 |
| Impairment losses for doubtful debts and write-down of inventories | 3,955 | 4,173 |
| Dividends from financial assets at fair value through other comprehensive income | (206) | (357) |
| Share of net profit of associates | (893) | (204) |
| Share of net profit of joint ventures | (574) | (153) |
| Other investment gain | (19) | (9) |
| Changes in working capital: | ||
| Increase in accounts receivable | (3,667) | (2,664) |
| Decrease in inventories and consumables | 81 | 1,354 |
| (Increase)/Decrease in short-term bank deposits and restricted deposits | (58) | 23 |
| Increase in other assets | (2,034) | (4,763) |
| Decrease in prepayments and other current assets | 166 | 4,171 |
| Increase in amounts due from ultimate holding company | (39) | - |
| Decrease/(Increase) in amounts due from related parties | 112 | (3,302) |
| Increase in amounts due from domestic carriers | (775) | (1,914) |
| Increase/(Decrease) in accounts payable and accrued liabilities | 5,752 | (835) |
| Increase/(Decrease) in taxes payable | 362 | (1,176) |
| Increase/(Decrease) in advances from customers | 2,255 | (1,329) |
| Increase in deferred revenue | 365 | 395 |
| Increase in other obligations | 45 | 69 |
| (Decrease)/Increase in amounts due to ultimate holding company | (203) | 73 |
| (Decrease)/Increase in amounts due to related parties | (945) | 5,311 |
| Increase in amounts due to domestic carriers | 549 | 689 |
| Cash generated from operations | 91,519 | 81,168 |