Consolidated Cash Flow Statement

 

 

For the year ended 31 December

 

 

Note

2021

HK$ million

2020

HK$ million

Cash flows from operating activities

Profit before taxation

 

 

121,141

 

97,718

Adjustments for:

 

 

 

– Depreciation and amortisation

11(b)

21,220

19,772

– Expected credit losses

8

103,094

96,927

– Impairment losses

9

1,704

3,649

– Net valuation loss on investment properties

 

66

675

– Net valuation (gain)/loss on investments

 

(297)

580

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

 

(17,563)

(14,493)

– Interest expenses on debts instruments issued

5(a)

31,453

23,457

– Finance income

10

(2,036)

(1,266)

– Finance costs

10

9,433

11,150

– Net gain on investments in financial assets

 

(19,508)

(13,417)

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

 

(1,393)

(4,718)
   

247,314

220,034

Changes in working capital

Decrease in deposits with central banks and non-bank financial institutions

 

 

3,870

 

36,047

Increase in placements with banks and non-bank financial institutions

 

(24,368)

(5,729)

(Increase)/Decrease in trade and other receivables

 

(4,967)

3,144

Decrease/(Increase) in contract assets

 

212

(2,115)

Increase in inventories

 

(33,208)

(25,610)

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

 

34,417

(123,933)

Increase in loans and advances to customers and other parties

 

(499,357)

(623,187)

Increase in investments in financial assets held for trading purposes

 

(20,280)

(15,652)

Increase in other operating assets

 

(47,721)

(6,690)

Increase in deposits from banks and non-bank financial institutions

 

9,780

226,884

Increase/(decrease) in placements from banks and non-bank financial institutions

 

31,230

(37,006)

(Decrease)/increase in financial liabilities at fair value through profit or loss

 

(8,895)

8,526

Increase in trade and other payables

 

21,946

1,386

Increase in contract liabilities

 

5,397

6,712

Increase/(decrease) in financial assets sold under repurchase agreements

 

24,785

(38,892)

Increase in deposits from customers

 

261,103

573,890

Decrease in borrowing from central banks

 

(42,459)

(15,498)

Increase in other operating liabilities

 

11,360

30,429

Increase in employee benefits payables

 

2,372

2,819

Increase in provisions

 

9,731

4,017

Cash (used in)/generated from operating activities

 

(17,738)

219,576

Income tax paid

 

(22,956)

(26,351)

Net cash (used in)/generated from operating activities

 

(40,694)

193,225

Cash flows from investing activities

     

 

     

For the year ended 31 December

 

 

For the year ended 31 December

 

 

Note

2021

HK$ million

2020

HK$ million

Proceeds from disposal and redemption of financial investments

 

3,790,762

3,043,255

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

 

2,204

1,032

Proceeds from disposal of associates and joint ventures

 

2,355

2,157

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

50(b)

(242)

6,446

Dividends received from equity investments, associates and joint ventures

 

7,103

5,317

Payments for purchase of financial investments

 

(4,041,787)

(3,292,092)

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

 

(24,494)

(20,885)

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

 

(289)

2,897

Payment for acquisition of associates and joint ventures

 

(3,065)

(4,294)

Net cash used in investing activities

 

(267,453)

(256,167)

Cash flows from financing activities

Capital injection received from non-controlling interests

 

 

167

 

672

Transaction with non-controlling interests

51

801

(942)

Proceeds from new bank and other loans

50(c)

168,251

121,798

Proceeds from new debt instruments issued

50(c)

1,092,327

930,718

Repayment of bank and other loans and debt instruments issued

50(c)

(1,028,186)

(951,030)

Issue of other equity instruments by subsidiaries

50(d)

52,813

Principal and interest elements of lease payment

50(c)

(5,978)

(6,150)

Interest paid on bank and other loans and debt instruments issued

50(c)

(41,084)

(36,566)

Dividends paid to non-controlling interests

 

(11,302)

(9,987)

Dividends paid to ordinary shareholders of the Company

15

(15,651)

(11,200)

Redemption of other equity instruments by subsidiaries

50(d)

(4,003)

(1,295)

Net cash generated from financing activities

 

208,155

36,018

Net decrease in cash and cash equivalents

 

(99,992)

(26,924)

Cash and cash equivalents at 1 January

 

452,702

463,038

Effect of exchange changes

 

4,905

16,588

Cash and cash equivalents at 31 December

50(a)

357,615

452,702

The notes form part of these consolidated financial statements.