Consolidated Cash Flow Statement
| For the year ended 31 December | |||
|---|---|---|---|
| Note |
2017 HK$ million |
2016 HK$ million (Restated) |
|
| Cash flows from operating activities | |||
| Profit before taxation from continuing operations | 82,783 | 70,791 | |
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| Adjustments for: | |||
| – Depreciation and amortisation | 10(b) | 14,171 | 12,292 |
| – Impairment losses | 8 | 78,925 | 73,588 |
| – Net valuation gain on investment properties | 32 | (58) | (615) |
| – Net valuation gain on investments | (3,746) | (299) | |
| – Share of profits of associates and joint ventures, net of tax | (13,453) | (5,199) | |
| – Interest expenses on debts instruments issued | 5(a) | 22,113 | 16,438 |
| – Finance income | 9 | (1,412) | (1,575) |
| – Finance costs | 9 | 11,497 | 8,708 |
| – Net gain on available-for-sale financial assets | (5,127) | (3,113) | |
| – Net gain on disposal of subsidiaries, associates and joint ventures | (9,011) | (2,237) | |
| 176,682 | 168,779 | ||
| Changes in working capital | |||
| Decrease/(increase) in deposits with central banks, banks and non-bank financial institutions | 8,201 | (46,273) | |
| Decrease/(increase) in placements with banks and non-bank financial institutions | 12,561 | (57,754) | |
| Decrease/(increase) in financial assets at fair value through profit or loss | 18,149 | (42,130) | |
| Increase in trade and other receivables | (11,368) | (18,459) | |
| Decrease in amounts due from customers for contract work | 129 | 285 | |
| Increase in inventories | (9,775) | (12,784) | |
| Decrease/(increase) in financial assets held under resale agreements | 136,684 | (40,458) | |
| Increase in loans and advances to customers and other parties | (422,202) | (424,989) | |
| Decrease in investments classified as receivables | 581,091 | 83,565 | |
| Increase in other assets | (38,751) | (13,817) | |
| Decrease in deposits from banks and non-bank financial institutions | (210,828) | (101,989) | |
| (Decrease)/increase in placements from banks and non-bank financial institutions | (7,788) | 39,480 | |
| Increase in trade and other payables | 21,709 | 16,915 | |
| Increase/(decrease) in amounts due to customers for contract work | 442 | (4,332) | |
| Increase in financial assets sold under repurchase agreements | 16,326 | 57,525 | |
| (Decrease)/increase in deposits from customers | (231,665) | 520,610 | |
| Increase in borrowing from central banks | 62,290 | 171,446 | |
| Increase/(decrease) in other liabilities | 22,269 | (3,024) | |
| Increase in employee benefits payables | 2,137 | 127 | |
| Increase in provisions | 1,806 | 101 | |
| Cash generated from operating activities of continuing operations | 128,099 | 292,824 | |
| Income tax paid | (20,966) | (17,816) | |
| Net cash generated from operating activities of continuing operations | 107,133 | 275,008 | |
| Net cash generated from operating activities of discontinued operations | - | 5,656 | |
| Net cash generated from operating activities | 107,133 | 280,664 | |
| Cash flows from investing activities | |||
| Proceeds from disposal and redemption of financial investments | 1,214,792 | 681,316 | |
| Proceeds from disposal of fixed assets, intangible assets and other assets | 1,281 | 805 | |
| Proceeds from disposal of associates and joint ventures | 1,991 | 3,848 | |
| Net cash received from disposal of subsidiaries | 52(b) | 864 | 754 |
| Dividends received from equity investments, associates and joint ventures | 4,277 | 4,217 | |
| Payments for purchase of financial investments | (1,374,211) | (855,491) | |
| Payments for additions of fixed assets, intangible assets and other assets | (21,723) | (21,842) | |
| Net cash payment for acquisition of subsidiaries, associates and joint ventures | (13,872) | (10,163) | |
| Net cash used in investing activities of continuing operations | (186,601) | (196,556) | |
| Net cash used in investing activities of discontinued operations | - | (14,887) | |
| Net cash used in investing activities | (186,601) | (211,443) | |
| Cash flows from financing activities | |||
| Capital injection received from non-controlling interests | 420 | 686 | |
| Transaction with non-controlling interests | 53 | 9,020 | (7,553) |
| Proceeds from new bank and other loans | 52(c) | 104,354 | 96,731 |
| Repayment of bank and other loans and debt instruments issued | 52(c) | (1,024,877) | (707,062) |
| Proceeds from new debt instruments issued | 52(c) | 1,013,629 | 727,321 |
| Proceeds from preference shares and other equity instruments issued | 1,330 | 46,131 | |
| Interest paid on bank and other loans and debt instruments issued | 52(c) | (31,797) | (28,937) |
| Dividends paid to non-controlling interests | (8,165) | (6,238) | |
| Dividends paid to ordinary shareholders of the Company | 14 | (9,891) | (8,727) |
| Redemption of perpetual capital securities | - | (5,850) | |
| Distribution paid to holders of perpetual capital securities | (673) | (903) | |
| Net cash generated from financing activities of continuing operations | 53,350 | 105,599 | |
| Net cash used in financing activities of discontinued operations | - | (11,803) | |
| Net cash generated from financing activities | 53,350 | 93,796 | |
| Net (decrease)/increase in cash and cash equivalents | (26,118) | 163,017 | |
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| Cash and cash equivalents at 1 January | 494,179 | 354,171 | |
| Effect of exchange changes | 23,302 | (23,009) | |
| Cash and cash equivalents at 31 December | 52(a) | 491,363 | 494,179 |
The notes form part of these consolidated financial statements.
