For the year ended 31 December 2024
(Expressed in millions of Renminbi, unless otherwise stated)
(Expressed in millions of Renminbi, unless otherwise stated)
| For the year ended 31 December | |||
|---|---|---|---|
| Note | 2024 | 2023 | |
| Cash flows from operating activities | |||
| Profit before taxation | 132,657 | 123,287 | |
| Adjustments for: | |||
| – Depreciation and amortisation | 11(b) | 27,560 | 23,059 |
| – Expected credit losses | 8 | 59,383 | 65,615 |
| – Impairment losses | 9 | 2,027 | 4,595 |
| – Net valuation loss on investment properties | 165 | 177 | |
| – Net valuation loss/(gain) on investments | 400 | (5,886) | |
| – Share of profits of associates and joint ventures, net of tax | (6,630) | (9,403) | |
| – Interest expenses on debt instruments issued | 5(a) | 33,256 | 29,753 |
| Finance income | 10 | (291) | (1,832) |
| – Finance costs | 10 | 12,902 | 12,172 |
| – Net gain on investments in financial assets | (30,329) | (41,387) | |
| – Net gain on disposal/deemed disposal of subsidiaries, associates and joint ventures | (3,793) | (74) | |
| Changes in working capital | 227,307 | 200,076 | |
| Decrease in deposits with central banks and non-bank financial institutions | 37,317 | 6,587 | |
| (Increase)/decrease in placements with banks and non-bank financial institutions | (124,278) | 5,305 | |
| Increase in trade and other receivables | (57,003) | (19,315) | |
| Decrease/(increase) in contract assets | 1,897 | (3,583) | |
| Decrease/(increase) in inventories | 9,423 | (14,348) | |
| Increase in financial assets held under resale agreements | (15,187) | (88,488) | |
| Increase in loans and advances to customers and other parties | (262,820) | (376,387) | |
| Decrease/(increase) in investments in financial assets held for trading purposes | 2,391 | (163,737) | |
| (Increase)/decrease in cash held on behalf of customers | (76,742) | 6,704 | |
| Increase in other operating assets | (75,948) | (36,212) | |
| Increase/(decrease) in deposits from banks and non-bank financial institutions | 38,267 | (209,526) | |
| (Decrease)/increase in placements from banks and non-bank financial institutions | (9,228) | 43,416 | |
| Increase in financial liabilities at fair value through profit or loss | 93 | 5 | |
| Decrease in trade and other payables | (12,683) | (25,992) | |
| (Decrease)/increase in contract liabilities | (10,383) | 1,886 | |
| (Decrease)/increase in financial assets sold under repurchase agreements | (68,851) | 245,599 | |
| Increase in deposits from customers | 355,643 | 286,072 | |
| (Decrease)/increase in borrowings from central banks | (148,593) | 152,670 | |
| Increase in customer brokerage deposits | 78,428 | 4,519 | |
| Increase/(decrease) in other operating liabilities | 69,220 | (8,732) | |
| Increase in employee benefits payables | 453 | 1,873 | |
| Decrease in provisions | (2,329) | (1,280) | |
| Cash (used in)/generated from operating activities | (43,606) | 7,112 | |
| Income tax paid | (22,113) | (29,910) | |
| Net cash used in operating activities | (65,719) | (22,798) | |
| Cash flows from investing activities | |||
| Proceeds from disposal and redemption of financial investments | 3,862,555 | 2,807,715 | |
| Proceeds from disposal of fixed assets, intangible assets and other assets | 1,568 | 1,627 | |
| Proceeds from disposal of associates and joint ventures | 6,417 | 182 | |
| Net cash payment for disposal of subsidiaries | – | (1) | |
| Dividends received from equity investments, associates and joint ventures | 5,598 | 7,420 | |
| Payments for purchase of financial investments | (3,952,815) | (2,829,310) | |
| Payments for additions of fixed assets, intangible assets and other assets | (28,647) | (24,304) | |
| Net cash received from acquisition of subsidiaries | – | 1,973 | |
| Cash outflow on acquisition of associates and joint ventures | (851) | (3,582) | |
| Net cash used in investing activities | (106,175) | (38,280) | |
| Cash flows from financing activities | |||
| Capital injection received from non-controlling interests | 3,156 | 236 | |
| Transaction with non-controlling interests | (2,125) | 1,541 | |
| Proceeds from bank and other loans | 53(b) | 309,605 | 289,200 |
| Proceeds from debt instruments issued | 53(b) | 1,805,627 | 1,340,976 |
| Repayment of bank and other loans and debt instruments issued | 53(b) | (1,831,324) | (1,553,791) |
| Issuance of other equity instruments by subsidiaries | 53(c) | 44,000 | 3,000 |
| Principal and interest elements of lease payments | 53(b) | (6,087) | (6,045) |
| Interest paid on bank and other loans and debt instruments issued | 53(b) | (49,169) | (43,735) |
| Dividends paid to non-controlling interests | (24,596) | (21,624) | |
| Dividends paid to ordinary shareholders of the Company | 15 | (15,272) | (17,300) |
| Repayment of perpetual bonds | 53(c) | (39,993) | (3,516) |
| Net cash generated from/(used in) financing activities | 193,822 | (11,058) | |
| Net increase/(decrease) in cash and cash equivalents | 21,928 | (72,136) | |
| Cash and cash equivalents at 1 January | 359,383 | 427,809 | |
| Effect of exchange changes | 4,088 | 3,710 | |
| Cash and cash equivalents at 31 December | 53(a) | 385,399 | 359,383 |
The notes form part of these consolidated financial statements.