Financial Highlights

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 31 December 2021
(All amounts in RMB millions)

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  Year ended 31 December
  Note 2020 2021
Cash flows from operating activities
Cash generated from operations 107,428 114,414
Interest received   1,309 1,215
Interest paid   (1,832) (1,324)
Income tax paid   (1,354) (3,669)
Net cash inflow from operating activities 105,551 110,636
Cash flows from investing activities
Purchase of property, plant and equipment, right-of-use assets and other assets (58,656) (72,047)
Proceeds from disposal of property, plant and equipment and other assets 1,647 2,267
Acquisition of financial assets measured at fair value through profit and loss ("FVPL") (5,751) (2,294)
Proceeds from disposal of financial assets measured at FVPL 4,268 646
Acquisition of debt securities measured at FVOCI (recycling) (42,650) (28,930)
Acquisition of equity securities measured at FVOCI (non-recycling) (8)
Proceeds from disposal of debt securities measured at FVOCI (recycling) 19,511 26,494
Net cash inflows from addition of subsidiaries 1,462
Acquisition of other financial assets measured at amortised cost (9,050) (61,463)
Proceeds from disposal of other financial assets measured at amortised cost 9,050 60,762
Dividends received from financial assets measured at FVOCI (non-recycling) 210 179
Acquisition of interest in associates (1,349) (2,328)
Acquisition of interest in joint ventures (117) (45)
Proceeds from disposal of associates and joint ventures 19 8
Dividends received from associates 546 813
Increase in short-term bank deposits and restricted deposits (6,900) (400)
Lending by Unicom Group Finance Company Limited ("Finance Company") to a related party (16,500) (11,400)
Repayment of loans from a related party to Finance Company 13,704 11,500
Net cash outflow from investing activities   (92,018) (74,784)
Cash flows from financing activities
Contribution from non-controlling interests 66 10
Proceeds from short-term bank loans and other obligations 2,740 685
Proceeds from commercial papers 8,000 6,800
Loans from a related party 207
Repayment of short-term bank loans (7,564) (740)
Repayment of long-term bank loans (395) (763)
Repayment of commercial papers (10,000) (7,000)
Repayment of related party loans (50) (2,507)
Repayment of corporate bonds (1,000)
Capital element of lease rentals paid (11,696) (12,727)
Payment of issuing expense for commercial papers (7) (5)
Dividends paid to equity shareholders of the Company (5,447) (8,690)
Net deposits with Finance Company by related parties 283 980
(Increase)/decrease in statutory reserve deposits placed by Finance Company (1,140) 171
Net cash outflow from financing activities (25,210) (24,579)
Net (decrease)/increase in cash and cash equivalents (11,677) 11,273
Cash and cash equivalents, beginning of year 34,945 23,085
Effect of changes in foreign exchange rate (183) (78)
Cash and cash equivalents, end of year 29 23,085 34,280
Analysis of the balances of cash and cash equivalents:
Cash balances 1
Bank balances 23,084 34,280
    23,085 34,280

The notes on pages 106 to 199 are an integral part of these consolidated financial statements.

The reconciliation of profit before income tax to cash generated from operating activities is as follows:

  Year ended 31 December
  2020 2021
Profit before income tax   16,027 17,927
Adjustments for:
Depreciation and amortisation   83,017 85,652
Interest income   (1,366) (1,215)
Finance costs   1,564 1,308
Loss on disposal of property, plant and equipment   2,365 3,749
Impairment losses under expected credit loss ("ECL") model and write-down of inventories 5,584 3,301
Dividends from financial assets measured at FVOCI (non-recycling) (210) (179)
Gains on disposal of financial assets measured at FVPL (87) (15)
Investment income from debt securities measured at FVOCI (recycling) (174) (850)
Fair value (gains)/losses on financial assets measured at FVPL (154) 39
Share of net profit of associates (1,588) (1,862)
Share of net profit of joint ventures (787) (1,448)
Expenses for restricted shares of A Share Company granted to the Group's employees 375 136
Changes in working capital:
Increase in accounts receivable (4,151) (4,243)
Decrease in contract assets 1,125 454
Increase in contract costs (1,371) (3,038)
Decrease/(increase) in inventories 59 (359)
(Increase)/decrease in restricted deposits (233) 250
Increase in other assets (1,694) (826)
Increase in prepayments and other current assets (4,178) (1,747)
Increase in amounts due from ultimate holding company (36) (88)
Increase in amounts due from related parties   (5) (75)
(Increase)/decrease in amounts due from domestic carriers (217) 1,658
Increase in accounts payable and accrued liabilities 8,210 7,053
Increase/(decrease) in other taxes payable 1,271 (307)
Increase/(decrease) in advances from customers 29 (225)
Increase in contract liabilities 1,993 3,063
Increase in deferred revenue 1,076 1,108
(Decrease)/increase in other obligations (198) 71
(Decrease)/increase in amounts due to ultimate holding company (11) 2,388
Increase in amounts due to related parties 1,076 2,763
Increase/(decrease) in amounts due to domestic carriers 117 (29)
Cash generated from operations 107,428 114,414

The notes on pages 106 to 199 are an integral part of these consolidated financial statements.