Consolidated Statement of Cash Flows
for the year ended 31 December 2023 (Amounts in millions)
 |
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2023 |
2022 |
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Notes |
RMB |
RMB |
|
|
|
|
|
|
|
Net cash from operating activities |
(a) |
137,508 |
136,432 |
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|
|
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|
Cash flows used in investing activities |
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|
Capital expenditure |
(89,866) |
(89,705) |
|
|
Purchase of investments |
(109) |
(175) |
|
|
Payments for right-of-use assets |
(307) |
(1,807) |
|
|
Proceeds from disposal of property, plant and equipment |
1,223 |
1,422 |
|
|
Proceeds from disposal of right-of-use assets |
89 |
142 |
|
|
Proceeds from disposal of investments |
124 |
200 |
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|
Payments for equity instruments at fair value through other |
(30) |
(15) |
|
|
Purchase of short-term bank deposits |
(13,349) |
(2,537) |
|
|
Maturity of short-term bank deposits |
6,742 |
1,750 |
|
|
Short-term loans granted to China Telecom Group by |
(b) |
(8,100) |
(8,105) |
|
China Telecom Group’s repayments of short-term loans |
(b) |
8,091 |
2,034 |
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|
|
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|
Net cash used in investing activities |
(95,492) |
(96,796) |
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|
|
|
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|
Cash flows used in financing activities |
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|
Repayments of principal of lease liabilities |
(14,647) |
(15,897) |
|
|
Proceeds from bank and other loans |
5,988 |
3,692 |
|
|
Repayments of bank and other loans |
(11,239) |
(9,615) |
|
|
Payments of dividends |
(20,059) |
(26,537) |
|
|
Distribution to non-controlling interests |
(79) |
(90) |
|
|
Payment for the acquisition of non-controlling interests |
— |
(1) |
|
|
Contribution from non-controlling interests |
— |
3,675 |
|
|
Net deposits with Finance Company |
(b) |
6,680 |
4,411 |
|
Increase in statutory deposit reserves placed by |
(b) |
(121) |
(541) |
|
Consideration paid for entity combination under |
— |
(3) |
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|
|
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|
Net cash used in financing activities |
(33,477) |
(40,906) |
|
|
|
|
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|
Net increase/(decrease) in cash and cash equivalents |
8,539 |
(1,270) |
|
|
Cash and cash equivalents as at 1 January |
72,465 |
73,284 |
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|
Effect of changes in foreign exchange rate |
42 |
451 |
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|
|
|
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|
Cash and cash equivalents as at 31 December |
81,046 |
72,465 |
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|
|
|
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|
(a) Reconciliation of profit before taxation to net cash from operating activities
|
|
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|
2023 |
2022 |
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|
RMB |
RMB |
||
|
|
|
|
|
|
Profit before taxation |
39,204 |
35,714 |
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|
Adjustment for: |
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|
Depreciation and amortisation |
99,702 |
96,932 |
|
|
Impairment losses for financial assets and contract assets, |
3,419 |
2,340 |
|
|
Write-down of inventories, net of reversal |
7 |
(61) |
|
|
Investment income and others |
(295) |
(243) |
|
|
Share of profits of associates and joint ventures |
(2,116) |
(2,051) |
|
|
Interest income |
(2,368) |
(1,808) |
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|
Net interest expense |
2,545 |
1,881 |
|
|
Net foreign exchange gain or loss and others |
155 |
(66) |
|
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Net loss on retirement and disposal of long-lived assets |
4,046 |
6,158 |
|
|
|
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|
144,299 |
138,796 |
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|
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Increase in accounts receivable |
(11,067) |
(3,842) |
|
|
Increase in contract assets |
(1,813) |
(2,185) |
|
|
Decrease in inventories |
90 |
370 |
|
|
Decrease/(Increase) in prepayments and other current assets |
130 |
(4,302) |
|
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Increase in restricted cash |
(182) |
(496) |
|
|
Increase in other assets |
(683) |
(449) |
|
|
Increase in accounts payable |
10,176 |
9,683 |
|
|
Increase in accrued expenses and other payables |
1,657 |
4,293 |
|
|
Decrease in contract liabilities |
(2,432) |
(3,165) |
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|
|
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Cash generated from operations |
140,175 |
138,703 |
|
|
Interest received |
2,225 |
1,754 |
|
|
Interest paid |
(2,646) |
(1,993) |
|
|
Investment income received |
1,530 |
1,208 |
|
|
Income tax paid |
(3,776) |
(3,240) |
|
|
|
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Net cash from operating activities |
137,508 |
136,432 |
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|
|
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(b) “Finance Company” refers to China Telecom Group Finance Co., Ltd., a subsidiary of the Company established on 8 January 2019, which provides capital and financial management services to the member units of China Telecommunications Corporation, the parent and ultimate holding company of the Company. These transactions are conducted on normal commercial terms or better.
(c) Significant non-cash transactions
For the years ended 31 December 2023 and 2022, the Group did not have significant non-cash investing and financing activities, except for the additions of right-of-use assets and lease liabilities, and the additions of equipment in instalment purchase of equipment.
The notes on pages 170 to 252 form part of these consolidated financial statements.