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  • Financial Statements
  • Consolidated Cash Flow Statement

CONSOLIDATED CASH FLOW STATEMENT

 

 

For the year ended 31 December

Note

2020

HK$ million

2019

HK$ million

Cash flows from operating activities

     

Profit before taxation

 

97,718

96,015

Adjustments for:

     

- Depreciation and amortisation

11(b)

19,772

21,806

- Expected credit losses

8

96,927

88,722

- Impairment losses

9

3,649

7,024

- Net valuation loss on investment properties

 

675

756

- Net valuation loss/(gain) on investments

 

580

(831)

- Share of profits of associates and joint ventures, net of tax

 

(14,493)

(13,557)

- Interest expenses on debts instruments issued

5(a)

23,457

24,574

- Finance income

10

(1,266)

(2,264)

- Finance costs

10

11,150

12,703

- Net gain on investments in financial assets

 

(13,417)

(10,475)

- Net gain on disposal of subsidiaries, associates and joint ventures

 

(4,718)

(3,751)

   

220,034

220,722

Changes in working capital

     

Decrease/(increase) in deposits with central banks and non-bank financial institutions

 

36,047

(32,147)

Increase in placements with banks and non-bank financial institutions

 

(5,729)

(20,380)

Decrease/(increase) in trade and other receivables

 

3,144

(56,899)

Increase in contract assets

 

(2,115)

(436)

(Increase)/decrease in inventories

 

(25,610)

7,333

(Increase)/decrease in financial assets held under resale agreements

 

(123,933)

1,523

Increase in loans and advances to customers and other parties

 

(623,187)

(510,536)

(Increase)/decrease in investments in financial assets held for trading purposes

 

(15,652)

24,368

Increase in other assets

 

(6,690)

(27,372)

Increase in deposits from banks and non-bank financial institutions

 

226,884

198,096

Decrease in placements from banks and non-bank financial institutions

 

(37,006)

(19,791)

Increase/(decrease) in financial liabilities at fair value through profit or loss

 

8,526

(276)

Increase/(decrease) in trade and other payables

 

1,386

(18,933)

Increase in contract liabilities

 

6,712

2,959

Decrease in financial assets sold under repurchase agreements

 

(38,892)

(7,928)

Increase in deposits from customers

 

573,890

471,209

Decrease in borrowing from central banks

 

(15,498)

(51,726)

Increase in other liabilities

 

30,429

1,047

Increase in employee benefits payables

 

2,819

1,419

Increase in provisions

 

4,017

1,442

Cash generated from operating activities

 

219,576

183,694

Income tax paid

 

(26,351)

(23,612)

Net cash generated from operating activities

 

193,225

160,082

Cash flows from investing activities

 

 

 

Proceeds from disposal and redemption of financial investments

 

3,043,255

2,239,189

Proceeds from disposal of fixed assets, intangible assets and other assets

 

1,032

1,689

Proceeds from disposal of associates and joint ventures

 

2,157

1,348

Net cash received from disposal of subsidiaries

51(b)

6,446

1,082

Dividends received from equity investments, associates and joint ventures

 

5,317

6,613

Payments for purchase of financial investments

 

(3,292,092)

(2,519,759)

Payments for additions of fixed assets, intangible assets and other assets

 

(20,885)

(19,626)

Net cash received from/(payment) for acquisition of subsidiaries

 

2,897

(981)

Net cash payment for acquisition of associates and joint ventures

 

(4,294)

(6,066)

Net cash used in investing activities

 

(256,167)

(296,511)

Cash flows from financing activities

 

 

 

Capital injection received from non-controlling interests

 

672

679

Transaction with non-controlling interests

52

(942)

494

Proceeds from new bank and other loans

51(c)

121,798

127,134

Repayment of bank and other loans and debt instruments issued

51(c)

(951,030)

(685,251)

Proceeds from new debt instruments issued

51(c)

930,718

661,283

Issue of other equity instruments by subsidiaries

51(d)

-

46,701

Principal and interest elements of lease payment

51(c)

(6,150)

(6,673)

Interest paid on bank and other loans and debt instruments issued

51(c)

(36,566)

(37,043)

Dividends paid to non-controlling interests

 

(9,987)

(8,369)

Dividends paid to ordinary shareholders of the Company

15

(11,200)

(12,799)

Redemption of other equity instruments by subsidiaries

51(d)

(1,295)

(2,076)

Net cash generated from financing activities

 

36,018

84,080

Net decrease in cash and cash equivalents

 

(26,924)

(52,349)

Cash and cash equivalents at 1 January

 

463,038

522,808

Effect of exchange changes

 

16,588

(7,421)

Cash and cash equivalents at 31 December

51(a)

452,702

463,038

The notes form part of these consolidated financial statements.