2006 Interim Reportï¼A Share.pdf - ä¸å½é¶è¡
2006 Interim Reportï¼A Share.pdf - ä¸å½é¶è¡
2006 Interim Reportï¼A Share.pdf - ä¸å½é¶è¡
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Notes to the Condensed Financial Statements<br />
For the six month period ended 30 June <strong>2006</strong><br />
(Amount in millions of Renminbi, unless otherwise stated)<br />
11 Notes to the cash flow statement<br />
Cash and cash equivalents comprises the following balances, the original maturities of which are less than three<br />
months:<br />
As at<br />
As at<br />
30 June <strong>2006</strong> 30 June 2005<br />
Cash 26,684 26,242<br />
Balances with central banks 89,018 103,122<br />
Due from and placement with banks and other financial institutions 160,662 150,374<br />
Short term bills and notes 27,686 21,492<br />
Total 304,050 301,230<br />
(1) Reconciliation of net profit to cash flows from operating activities<br />
For the six month period ended<br />
30 June <strong>2006</strong> 30 June 2005<br />
Net profit 19,643 16,434<br />
Plus/(minus):<br />
Asset impairment losses 5,680 6,116<br />
Depreciation of fixed assets 2,320 2,748<br />
Amortisation of intangible assets and long term deferred expenses 340 221<br />
Net loss/(gain) on disposal of fixed assets and other assets 115 (146)<br />
Equity investments income (7,547) (4,835)<br />
Interest expenses arising from bonds issued 1,384 1,178<br />
Increase in operating receivables (433,206) (277,343)<br />
Increase in operating payables 324,064 250,067<br />
Net cash outflows from operating activities (87,207) (5,560)<br />
V<br />
RELATED PARTY TRANSACTIONS<br />
Related parties are those parties that have the ability, directly or indirectly, to control the other party or exercise<br />
significant influence over the other party in making financial and operating decisions. Parties are also considered to<br />
be related if they are subject to common control. The Group is controlled by the State Council of the People's<br />
Republic of China ("PRC") through Huijin.<br />
(1) Transactions with Huijin<br />
(i)<br />
Foreign Currency Option Agreement<br />
On 5 January 2005, the Bank entered into a Foreign Currency Option Agreement with Huijin whereby the Bank has<br />
acquired the option to sell to Huijin USD 18 billion, of no more than USD1,500 million at the beginning of each<br />
calendar month during the year ending 31 December 2007 at the exchange rate of USD1 to RMB 8.2769. The related<br />
option premium amounted to RMB 4,469 million, which is payable by the Bank to Huijin in 12 equal monthly instalments<br />
at the beginning of each calendar month during the year ending 31 December 2007.<br />
102
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