Consolidated Cash Flow Statement
For the year ended 31 December 2023
(Expressed in millions of Renminbi, unless otherwise stated)
(Expressed in millions of Renminbi, unless otherwise stated)
| For the year ended 31 December | |||
|---|---|---|---|
| Note | 2023 | 2022 (Restated) | |
| Cash flows from operating activities | |||
| Profit before taxation | 123,287 | 127,292 | |
| Adjustments for: | |||
| – Depreciation and amortisation | 11(b) | 23,059 | 20,240 |
| – Expected credit losses | 8 | 65,615 | 79,005 |
| – Impairment losses | 9 | 4,595 | 7,584 |
| – Net valuation loss on investment properties | 177 | 652 | |
| – Net valuation (gain)/loss on investments | (5,886) | 14,293 | |
| – Share of profits of associates and joint ventures, net of tax | (9,403) | (11,166) | |
| – Interest expenses on debt instruments issued | 5(a) | 29,753 | 30,430 |
| – Finance income | 10 | (1,832) | (1,407) |
| – Finance costs | 10 | 12,172 | 8,472 |
| – Net gain on investments in financial assets | (41,387) | (43,171) | |
| – Net gain on disposal/deemed disposal of subsidiaries, associates and joint ventures | (74) | (10,977) | |
| Changes in working capital | 200,076 | 221,247 | |
| Decrease in deposits with central banks and non-bank financial institutions | 6,587 | 5,815 | |
| Decrease/(increase) in placements with banks and non-bank financial institutions | 5,305 | (86,442) | |
| Increase in trade and other receivables | (19,315) | (42,266) | |
| Increase in contract assets | (3,583) | (7,247) | |
| Increase in inventories | (14,348) | (7,381) | |
| (Increase)/decrease in financial assets held under resale agreements | (88,488) | 77,196 | |
| Increase in loans and advances to customers and other parties | (376,387) | (350,673) | |
| (Increase)/decrease in investments in financial assets held for trading purposes | (163,737) | 12,315 | |
| Decrease in cash held on behalf of customers | 6,704 | 22,016 | |
| (Increase)/decrease in other operating assets | (36,212) | 6,329 | |
| Decrease in deposits from banks and non-bank financial institutions | (209,526) | (59,126) | |
| Increase/(decrease) in placements from banks and non-bank financial institutions | 43,416 | (7,424) | |
| Increase in financial liabilities at fair value through profit or loss | 5 | 12,700 | |
| (Decrease)/increase in trade and other payables | (25,992) | 2,662 | |
| Increase/(decrease) in contract liabilities | 1,886 | (667) | |
| Increase in financial assets sold under repurchase agreements | 245,599 | 121,295 | |
| Increase in deposits from customers | 286,072 | 336,784 | |
| Increase/(decrease) in borrowing from central banks | 152,670 | (69,147) | |
| Increase in customer brokerage deposits | 4,519 | 6,024 | |
| (Decrease)/increase in other operating liabilities | (8,732) | 3,411 | |
| Increase in employee benefits payables | 1,873 | 3,331 | |
| Decrease in provisions | (1,280) | (5,592) | |
| Cash generated from operating activities | 7,112 | 195,160 | |
| Income tax paid | (29,910) | (28,967) | |
| Net cash (used in)/generated from operating activities | (22,798) | 166,193 | |
| Cash flows from investing activities | |||
| Proceeds from disposal and redemption of financial investments | 2,807,715 | 2,605,903 | |
| Proceeds from disposal of fixed assets, intangible assets and other assets | 1,627 | 1,059 | |
| Proceeds from disposal of associates and joint ventures | 182 | 1,353 | |
| Net cash payment for from disposal of subsidiaries | (1) | (1) | |
| Dividends received from equity investments, associates and joint ventures | 7,420 | 6,229 | |
| Payments for purchase of financial investments | (2,829,310) | (2,704,515) | |
| Payments for additions of fixed assets, intangible assets and other assets | (24,304) | (20,267) | |
| Net cash received from acquisition of subsidiaries | 1,973 | 165,918 | |
| Cash outflow on acquisition of associates and joint ventures | (3,582) | (7,334) | |
| Net cash (used in)/generated from investing activities | (38,280) | 48,345 | |
| Cash flows from financing activities | |||
| Capital injection received from non-controlling interests | 236 | 109 | |
| Transaction with non-controlling interests | 1,541 | (5) | |
| Proceeds from new bank and other loans | 53(c) | 289,200 | 171,204 |
| Proceeds from new debt instruments issued | 53(c) | 1,340,976 | 908,969 |
| Repayment of bank and other loans and debt instruments issued | 53(c) | (1,553,791) | (1,096,140) |
| Issuance of other equity instruments by subsidiaries | 53(d) | 3,000 | 4,654 |
| Principal and interest elements of lease payments | 53(c) | (6,045) | (5,396) |
| Interest paid on bank and other loans and debt instruments issued | 53(c) | (43,735) | (41,865) |
| Dividends paid to non-controlling interests | (21,624) | (18,930) | |
| Dividends paid to ordinary shareholders of the Company | 15 | (17,300) | (16,404) |
| Repayment of perpetual bonds | 53(d) | (3,516) | – |
| Net cash used in financing activities | (11,058) | (93,804) | |
| Net (decrease)/increase in cash and cash equivalents | (72,136) | 120,734 | |
| Cash and cash equivalents at 1 January | 427,809 | 295,821 | |
| Effect of exchange changes | 3,710 | 11,254 | |
| Cash and cash equivalents at 31 December | 53(a) | 359,383 | 427,809 |
The notes form part of these consolidated financial statements.