Financial Report
Consolidated Cash Flow Statement
| For the year ended 31 December | |||
|---|---|---|---|
| Note | 2016 HK$ million |
2015 HK$ million (Restated) |
|
| Cash flows from operating activities | |||
| Profit before taxation from continuing operations | 70,723 | 78,645 | |
| Adjustments for: | |||
| – Depreciation and amortisation | 10(b) | 12,237 | 11,774 |
| – Impairment losses | 8 | 73,590 | 79,188 |
| – Net valuation gain on investment properties | 32 | (615) | (592) |
| – Net valuation gain on investments | (299) | (668) | |
| – Share of profits of associates and joint ventures, net of tax | (5,199) | (4,586) | |
| – Interest expenses on debts instruments issued | 5(a) | 16,438 | 10,439 |
| – Finance income | 9 | (1,552) | (2,358) |
| – Finance costs | 9 | 8,688 | 9,239 |
| – Net gain on available-for-sale financial assets | (3,113) | (11,195) | |
| – Net gain on disposal of subsidiaries, associates and joint ventures | (2,237) | (12,961) | |
| 168,661 | 156,925 | ||
| Changes in working capital | |||
| (Increase)/decrease in deposits with central banks, banks and non-bank financial institutions |
(46,273) | 4,676 | |
| Increase in placements with banks and non-bank financial institutions | (57,754) | (42,833) | |
| Increase in financial assets at fair value through profit or loss | (42,130) | (3,142) | |
| Increase in trade and other receivables | (18,483) | (14,316) | |
| Decrease/(increase) in amounts due from customers for contract work | 285 | (787) | |
| (Increase)/decrease in inventories | (12,865) | 4,372 | |
| Increase in financial assets held under resale agreements | (40,458) | (3,433) | |
| Increase in loans and advances to customers and other parties | (424,930) | (446,580) | |
| Decrease/(increase) in investments classified as receivables | 83,565 | (575,313) | |
| Increase in other assets | (14,164) | (11,272) | |
| (Decrease)/increase in deposits from banks and non-bank financial institutions |
(101,989) | 472,768 | |
| Increase in placements from banks and non-bank financial institutions | 39,480 | 36,554 | |
| Decrease in financial liabilities at fair value through profit or loss | – | (714) | |
| Increase in trade and other payables | 17,270 | 30,128 | |
| Decrease in amounts due to customers for contract work | (4,332) | (3,422) | |
| Increase in financial assets sold under repurchase agreements | 57,525 | 36,802 | |
| Increase in deposits from customers | 520,612 | 388,622 | |
| Increase/(decrease) in borrowing from central banks | 171,446 | (15,630) | |
| (Decrease)/increase in other liabilities | (3,077) | 9,387 | |
| Increase/(decrease) in employee benefits payables | 127 | (2,730) | |
| Increase in provisions | 101 | 707 | |
| Cash generated from operating activities of continuing operations | 292,617 | 20,769 | |
| Income tax paid | (17,808) | (21,220) | |
| Net cash generated from/(used in) operating activities of continuing operations |
274,809 | (451) | |
| Net cash generated from operating activities of discontinued operations |
5,656 | 760 | |
| Net cash generated from operating activities | 280,465 | 309 | |
| Cash flows from investing activities | |||
| Proceeds from disposal and redemption of financial investments | 681,246 | 884,132 | |
| Proceeds from disposal of fixed assets, intangible assets and other assets |
805 | 194 | |
| Proceeds from disposal of associates and joint ventures | 3,848 | 14,312 | |
| Net cash received from disposal of subsidiaries | 51(b) | 754 | 1,411 |
| Dividends received from equity investments, associates and joint ventures |
4,217 | 5,022 | |
| Payments for purchase of financial investments | (855,582) | (1,018,145) | |
| Payments for additions of fixed assets, intangible assets and other assets | (21,824) | (24,256) | |
| Net cash payment for acquisition of subsidiaries, associates and joint ventures |
(10,163) | (5,240) | |
| Net cash used in investing activities of continuing operations | (196,699) | (142,570) | |
| Net cash used in investing activities of discontinued operations | (14,887) | (958) | |
| Net cash used in investing activities | (211,586) | (143,528) | |
| Cash flows from financing activities | |||
| Capital injection received from the shareholders of the Company | – | 57,909 | |
| Capital injection received from non-controlling interests | 686 | 566 | |
| Transaction with non-controlling interests | 52 | (7,553) | 7,363 |
| Proceeds from new bank and other loans | 96,264 | 91,972 | |
| Repayment of bank and other loans and debt instruments issued | (706,253) | (359,657) | |
| Proceeds from new debt instruments issued | 727,321 | 398,192 | |
| Proceeds from preference shares and other equity instruments issued | 51(c) | 46,131 | 1,363 |
| Interest paid on bank and other loans and debt instruments issued | (28,920) | (21,853) | |
| Dividends paid to non-controlling interests | (6,238) | (1,986) | |
| Dividends paid to ordinary shareholders of the Company | 14 | (8,727) | (7,890) |
| Redemption of perpetual capital securities | (5,850) | – | |
| Distribution paid to holders of perpetual capital securities | (903) | (1,133) | |
| Net cash generated from financing activities of continuing operations | 105,958 | 164,846 | |
| Net cash used in financing activities of discontinued operations | (11,803) | (2,360) | |
| Net cash generated from financing activities | 94,155 | 162,486 | |
| Net increase in cash and cash equivalents | 163,034 | 19,267 | |
| Cash and cash equivalents at 1 January | 354,111 | 347,891 | |
| Effect of exchange changes | (23,007) | (13,047) | |
| Cash and cash equivalents at 31 December | 51(a) | 494,138 | 354,111 |
