2006 Interim Report－A Share.pdf - 中国银行

deductible for income tax purposes will be based on the performance of the Bank. The details related to the
implementation of such deductibility threshold have however not yet been determined and are subject to further
approval of relevant PRC government authorities and as a result, the effect of this has not been reflected in tax
expense. The Group will continue to follow up with the relevant PRC government authorities regarding the detailed
implementation plans of this approval in accordance with the relevant regulations and guidance.
29. Earnings per share (Basic & Diluted)
Basic and diluted earnings per share have been computed by dividing the profit for the period by the weighted
average number of ordinary shares issued.
The Bank has no dilutive potential ordinary shares.
For the six month period ended
30 June 2006 30 June 2005
Profit attributable to equity holders of the Bank 19,024 16,434
Weighted average number of ordinary shares in issue (millions) 218,002 186,390
Basic and diluted earnings per share (Renminbi per share) 0.09 0.09
30. Notes to the cash flow statement
Cash and cash equivalents comprise the following balances, the original maturities of which are less than three
months:
As at 30 June 2006 As at 30 June 2005
Cash 29,811 29,486
Balances with central banks 113,039 130,427
Due from and placement with banks and other financial institutions 215,713 230,894
Short term bills and notes 30,910 24,149
Total 389,473 414,956
(1) Reconciliation of net profit to cash flows from operating activities
For the six month period ended
30 June 2006 30 June 2005
Net profit 19,204 16,434
Plus/(minus):
Minority interest 2,627 2,284
Asset impairment losses 4,876 4,576
Depreciation of fixed assets 2,741 3,138
Amortisation of intangible assets and long-term deferred expenses 341 222
Net gain on disposal of fixed assets and other assets (168) (671)
Equity investments income (1,587) (125)
Interest expenses arising from bonds issued 1,384 1,178
Increase in operating receivables (495,834) (288,793)
Increase in operating payables 348,605 283,372
Net cash (outflows)/inflows from operating activities (117,991) 21,615
97