2012 Annual Report - ZTE

ANNUAL REPORT 2012Consolidated Statement of Cash Flows(Prepared under Hong Kong Financial Reporting Standards)Year ended 31 December 2012CASH FLOWS FROM OPERATING ACTIVITIES2012 2011Notes RMB’000 RMB’000Profit/(loss) before tax (1,983,200) 2,635,136Adjustments for:Finance costs 7 1,888,481 1,374,163Share of profits and losses of jointly-controlled entities (619) (440)Share of profits and losses of associates (47,504) (70,865)Bank and other interest income 5 (149,409) (283,618)Dividend income 5 (13,070) (11,061)Loss on disposal of items of property, plant and equipment 6 19,446 30,629(Gain)/loss on disposal of equity interests 6 (1,258,081) 18,801Fair value losses of assumed liabilities in a previousdisposal of a subsidiary 6 67,295 —Gain on disposal of available-for-sale investments 6 — (5,931)Fair value loss on equity investments held for trading 6 42,261 10,815Fair value loss on derivative instruments— transactions not qualifying as hedges 6 49,456 77,860Gain on disposal of derivative financial instruments 5 (6,908) (128,550)Gain on investment in Nationz Technologies Inc. 5 — (866,503)Depreciation 15 1,042,966 1,026,399Recognition of prepaid land lease payments 17 17,233 16,983Amortisation of intangible assets 18 488,730 380,787Write-down/(reversal of write-down) of inventoriesto net realisable value 6 134,007 370,150Impairment of trade receivables 6 330,484 576,537Impairment of property, plant and equipment 6 2,559 —Equity-settled share option expense 6 6,722 41,821Changes in fair value of investment properties 6 15,679 —646,528 5,193,113Decrease/(increase) in inventories 2,665,001 (3,275,039)Decrease/(increase) in the amount duefrom customers for contract works 922,355 (380,416)Increase in trade and bills receivables (1,607,798) (8,827,680)Increase in long-term trade receivables (342,241) (291,074)(Increase)/decrease in factored trade receivables (476,029) 210,108Increase in prepayments, deposits and other receivables (249,960) (1,398,904)(Decrease)/increase in trade and bills payables (1,240,955) 7,622,875Increase in the amount due to customers for contract works 408,747 296,135Increase/(decrease) in other payables and accruals 4,706,920 (79,032)Increase in other non-current assets (222,736) —Increase in provision for retirement benefits 5,325 5,384Cash generated from/(used in) operations 5,215,157 (924,530)continued/…319