Investor Relations
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2022
(All amounts in RMB millions)
Year ended 31 December
  Note 2021 2022
Cash flows from operating activities
Cash generated from operations 114,414 103,365
Interest received 1,215 1,747
Interest paid (1,324) (1,150)
Income tax paid (3,669) (3,425)
Net cash inflow from operating activities 110,636 100,537
Cash flows from investing activities
Purchase of property, plant and equipment, right-of-use assets and other assets (a) (72,047) (72,470)
Proceeds from disposal of property, plant and equipment and other assets 2,267 1,710
Acquisition of financial assets measured at fair value through profit or loss (“FVPL”) (2,294) (1,741)
Proceeds from disposal of financial assets measured at FVPL 646 1,876
Acquisition of debt securities measured at FVOCI (recycling) (28,930) (17,630)
Acquisition of equity securities measured at FVOCI (non-recycling) (8)
Proceeds from disposal of debt securities measured at FVOCI (recycling) 26,494 26,864
Proceeds from disposal of equity securities measured at FVOCI (non-recycling) 1
Net cash inflows from addition of subsidiaries 1,462
Acquisition of other financial assets measured at amortised cost (61,463) (21,328)
Proceeds from disposal of other financial assets measured at amortised cost 60,762 22,028
Dividends received from financial assets measured at FVOCI (non-recycling) 179 149
Acquisition of interest in associates (2,328) (1)
Acquisition of interest in joint ventures (45)
Proceeds from disposal of associates and joint ventures 8
Dividends received from associates 813 998
Dividends received from joint venture 150
Increase in short-term bank deposits and restricted deposits (400) (2,518)
Lending by Unicom Group Finance Company Limited (“Finance Company”) to a related party (11,400) (11,800)
Repayment of loans from a related party to Finance Company 11,500 17,600
Net cash outflow from investing activities (74,784) (56,112)
Cash flows from financing activities
Contributions from non-controlling interests 10 867
Proceeds from short-term bank loans and other obligations 685 330
Proceeds from commercial papers 6,800 5,000
Loans from related parties 207 471
Repayment of short-term bank loans (740) (385)
Repayment of long-term bank loans (763) (420)
Repayment of commercial papers (7,000) (6,800)
Repayment of related party loans (2,507)
Repayment of promissory notes (1,000)
Repayment of corporate bonds (1,000) (2,000)
Capital element of lease rentals paid (12,727) (13,373)
Payment of issuing expense for commercial papers (5) (5)
Dividends paid to equity shareholders of the Company (8,690) (7,986)
Net deposits with Finance Company by related parties 980 621
Decrease in statutory reserve deposits placed by Finance Company 171 870
Net cash outflow from financing activities (24,579) (23,810)
Net increase in cash and cash equivalents 11,273 20,615
Cash and cash equivalents, beginning of year 23,085 34,280
Effect of changes in foreign exchange rate (78) 402
Cash and cash equivalents, end of year 29 34,280 55,297
Analysis of the balances of cash and cash equivalents:
Cash balances
Bank balances 34,280 55,297
    34,280 55,297

(a) Major non-cash transaction: On 13 December 2022, the Board of Directors of the Company approved China United Network Communications Corporation Limited (“CUCL”) and China Tower Corporation Limited (“Tower Company”) to sign a commercial pricing agreement and a service agreement, which constituted a lease modification under HKFRS 16, “Leases”. The transaction has no impact on the consolidated statement of cash flows for the year ended 31 December 2022. Details of this transaction are set out in Note 16 and Note 45.

The notes on pages 106 to 205 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
  2021 2022
Profit before income tax   17,927 20,588
Adjustments for:
Depreciation and amortisation   85,652 86,829
Interest income   (1,215) (1,747)
Finance costs   1,308 1,046
Loss on disposal of property, plant and equipment   3,749 1,882
Impairment losses under expected credit loss ("ECL") model and write-down of inventories 3,301 6,918
Dividends from financial assets measured at FVOCI (non-recycling) (179) (149)
Gains on disposal of financial assets measured at FVPL (15) (72)
Investment income from debt securities measured at FVOCI (recycling) (850) (438)
Fair value losses/(gains) on financial assets measured at FVPL 39 (24)
Share of net profit of associates (1,862) (2,153)
Share of net profit of joint ventures (1,448) (1,593)
Expenses for restricted shares of A Share Company granted to the Group's employees 136 55
Changes in working capital:
Increase in accounts receivable (4,243) (13,718)
Decrease in contract assets 454 147
Increase in contract costs (3,038) (5,529)
Increase in inventories (359) (338)
Decrease/(Increase) in restricted deposits 250 (1,083)
Increase in other assets (826) (1,108)
Increase in prepayments and other current assets (1,747) (3,611)
(Increase)/decrease in amounts due from ultimate holding company (88) 188
Increase in amounts due from related parties   (75) (195)
Decrease in amounts due from domestic carriers 1,658 63
Increase in accounts payable and accrued liabilities 7,053 14,866
(Decrease)/increase in other taxes payable (307) 742
(Decrease)/increase in advances from customers (225) 266
Increase/(decrease) in contract liabilities 3,063 (990)
Increase in deferred revenue 1,108 980
Increase in other obligations 71 83
Increase/(decrease) in amounts due to ultimate holding company 2,388 (2,440)
Increase in amounts due to related parties 2,763 4,037
Decrease in amounts due to domestic carriers (29) (137)
Cash generated from operations 114,414 103,365

The notes on pages 106 to 205 are an integral part of these consolidated financial statements.

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