CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2024
(All amounts in RMB millions)
(All amounts in RMB millions)
Year ended 31 December
| Note | 2023 | 2024 | |
| Cash flows from operating activities | |||
| Cash generated from operations | 106,022 | 94,435 | |
| Interest received | 2,105 | 1,981 | |
| Interest paid | (1,906) | (1,797) | |
| Income tax paid | (3,830) | (5,217) | |
| Net cash inflow from operating activities | 102,391 | 89,402 | |
| Cash flows from investing activities | |||
| Purchase of property, plant and equipment, right-of-use assets and other assets | (79,375) | (75,740) | |
| Proceeds from disposal of property, plant and equipment and other assets | 1,388 | 1,976 | |
| Acquisition of financial assets measured at fair value through profit or loss (“FVPL”) | (1,230) | (1,062) | |
| Proceeds from disposal of financial assets measured at FVPL | 1,707 | 1,316 | |
| Acquisition of debt securities measured at FVOCI (recycling) | (22,980) | (6,020) | |
| Proceeds from disposal of debt securities measured at FVOCI (recycling) | 17,397 | 22,330 | |
| (Increase)/decrease in other financial assets measured at amortised cost | (5,424) | 15 | |
| Dividends received from financial assets measured at FVOCI (non-recycling) | 159 | 156 | |
| Acquisition of interest in associates | (776) | (65) | |
| Acquisition of interest in joint ventures | (5) | (87) | |
| Acquisition of a subsidiary | – | (4) | |
| Proceeds from disposal of associates and joint ventures | 400 | – | |
| Dividends received from associates | 1,246 | 1,772 | |
| Dividends received from a joint venture | 150 | 360 | |
| Placement of bank deposits and restricted deposits | (11,015) | (42,219) | |
| Release of short-term bank deposits and restricted deposits | 12,815 | 13,016 | |
| Lending by Unicom Group Finance Company Limited (“Finance Company”) to a related party | (5,700) | (8,400) | |
| Repayment of loans from a related party to Finance Company | 5,700 | 8,000 | |
| Net cash outflow from investing activities | (85,543) | (84,656) | |
| Cash flows from financing activities | |||
| Capital contributions from non-controlling interests | 386 | 22 | |
| Proceeds from bank loans | 711 | 947 | |
| Loans from related parties | 583 | 546 | |
| Repayment of short-term bank loans | (330) | (680) | |
| Repayment of long-term bank loans | (385) | (440) | |
| Repayment of commercial papers | (5,000) | – | |
| Repayment of related party loans | (913) | – | |
| Capital element of lease rentals paid | (12,103) | (12,887) | |
| Dividends paid to equity shareholders of the Company | (9,546) | (11,683) | |
| Net deposits with Finance Company | 949 | 999 | |
| Decrease/(Increase) in statutory reserve deposits placed by Finance Company | 1,542 | (874) | |
| Repayment of other obligations | (409) | (14) | |
| Net cash outflow from financing activities | (24,515) | (24,064) | |
| Net decrease in cash and cash equivalents | (7,667) | (19,318) | |
| Cash and cash equivalents, beginning of year | 55,297 | 47,733 | |
| Effect of changes in foreign exchange rate | 103 | 65 | |
| Total cash and cash equivalents, end of year | 29 | 47,733 | 28,480 |
| Analysis of the balances of cash and cash equivalents: | |||
| Cash balances | – | – | |
| Bank balances | 47,733 | 28,480 | |
| 47,733 | 28,480 |
The notes on pages 102 to 209 are an integral part of these consolidated financial statements.
The reconciliation of profit before income tax to cash generated from operations is as follows:
Year ended 31 December
| 2023 | 2024 | ||
| Profit before income tax | 22,945 | 25,254 | |
| Adjustments for: | |||
| Depreciation and amortisation | 84,847 | 83,392 | |
| Interest income | (2,105) | (1,981) | |
| Finance costs | 1,956 | 1,733 | |
| Loss/(gain) on disposal of property, plant and equipment | 1,181 | (2,827) | |
| Impairment losses under expected credit loss (“ECL”) model and write-down of inventories | 6,356 | 7,275 | |
| Dividends from financial assets measured at FVOCI (non-recycling) | (159) | (156) | |
| Gains on disposal of financial assets measured at FVPL | (14) | (17) | |
| Gains on disposal of financial assets measured at FVOCI (recycling) | (1) | (1) | |
| Dividends from financial assets at FVPL | (2) | (10) | |
| Investment income from debt securities measured at FVOCI (recycling) | (424) | (385) | |
| Investment income from debt securities measured at amortised cost | – | (23) | |
| Fair value gains on financial assets measured at FVPL | (114) | (49) | |
| Share of net profit of associates | (2,519) | (2,592) | |
| Share of net profit of joint ventures | (1,803) | (1,481) | |
| Expenses for restricted shares of A Share Company granted to the Group’s employees | 282 | 247 | |
| Changes in working capital: | |||
| Increase in accounts receivable | (18,212) | (27,132) | |
| (Increase)/decrease in contract assets | (28) | 14 | |
| Increase in contract costs | (8,498) | (7,400) | |
| Increase in inventories | (94) | (377) | |
| Decrease/(increase) in restricted deposits | 278 | (70) | |
| (Increase)/decrease in other assets | (199) | 266 | |
| Increase in prepayments and other current assets | (193) | (1,294) | |
| Increase in amounts due from ultimate holding company | (4) | (80) | |
| Increase in amounts due from related parties | (123) | (802) | |
| Increase in amounts due from domestic carriers | (323) | (2,119) | |
| Increase in accounts payable and accrued liabilities | 12,124 | 20,870 | |
| Increase in other taxes payable | 515 | 435 | |
| Decrease in advances from customers | (100) | (76) | |
| Increase in contract liabilities | 1,465 | 573 | |
| Increase/(decrease) in deferred revenue | 1,464 | (870) | |
| (Decrease)/increase in other obligations | (49) | 55 | |
| Increase/(decrease) in amounts due to ultimate holding company | 25 | (39) | |
| Increase in amounts due to related parties | 6,714 | 2,902 | |
| Increase in amounts due to domestic carriers | 834 | 1,200 | |
| Cash generated from operations | 106,022 | 94,435 |
The notes on pages 102 to 209 are an integral part of these consolidated financial statements.