Consolidated Statement of Cash Flows

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for the year ended 31 December 2018 (Amounts in millions)

	Note	2018 RMB	2017 RMB
Net cash from operating activities	(a)	99,298	96,502
Cash flows used in investing activities
Capital expenditure		(83,835)	(87,334)
Lease prepayments		(20)	(89)
Purchase of investments		(328)	(443)
Proceeds from disposal of property, plant and equipment		1,866	2,066
Proceeds from disposal of lease prepayments		45	72
Proceeds from disposal of investments		96	-
Net cash (outflow)/inflow from disposal of subsidiaries		(1)	184
Purchase of short-term bank deposits		(7,726)	(2,815)
Maturity of short-term bank deposits		3,949	3,096
Net cash used in investing activities		(85,954)	(85,263)
Cash flows used in financing activities
Principal element of finance lease payments		(73)	(84)
Proceeds from bank and other loans		97,829	123,250
Repayments of bank and other loans		(106,923)	(69,953)
Repayment of deferred consideration in respect of the Mobile Network Acquisition		-	(61,710)
Payment of the acquisition price of the Eighth Acquisition (Note 1)		(87)	-
Payment of dividends		(7,568)	(7,530)
Distribution to non-controlling interests		(177)	(89)
Payment for the acquisition of non-controlling interests		(119)	(31)
Contribution from non-controlling interests		855	_-
Reduction of capital by non-controlling interests		(20)	-
Net cash used in financing activities		(16,283)	(16,147)
Net decrease in cash and cash equivalents		(2,939)	(4,908)
Cash and cash equivalents at 1 January		19,410	24,617
Effect of changes in foreign exchange rate		195	(299)
Cash and cash equivalents at 31 December		16,666	19,410

	2018 RMB	2017 RMB
Profit before taxation	28,148	24,953
Adjustment for:
Depreciation and amortisation	75,493	74,951
Credit impairment losses, net of reversal	2,050	2,036
Impairment losses for long-lived assets	-	10
Write down of inventories	66	178
Investment income	(38)	(147)
Income from investments in associates	(2,104)	(877)
Interest income	(306)	(429)
Interest expense	3,093	3,586
Net foreign exchange (gain)/loss	(79)	134
Net loss on retirement and disposal of long-lived assets	1,757	1,841
Operating profit before changes in working capital	108,080	106,236
Increase in accounts receivable	(1,848)	(2,770)
Decrease in contract assets	170	-
(Increase)/decrease in inventories	(622)	905
Increase in prepayments and other current assets	(1,349)	(2,618)
Decrease/(increase) in other assets	271	(231)
Decrease in accounts payable	(3,181)	(4,213)
Increase in accrued expenses and other payables	9,842	7,232
Decrease in contract liabilities	(6,414)	-
Decrease in deferred revenues	(138)	(202)
Cash generated from operations	104,811	104,339
Interest received	306	433
Interest paid	(3,094)	(3,707)
Investment income received	34	63
Income tax paid	(2,759)	(4,626)
Net cash from operating activities	99,298	96,502