China XLX Fertiliser Ltd

CONSOLIDATED CASH FLOW STATEMENTfor the financial year ended 31 December 2008(Amounts expressed in Renminbi)Cash flows from investing activities2008 2007Rmb’000 Rmb’000Proceeds from disposal of property, plant and equipment 754 519Purchase of property, plant and equipment (Note B) (879,998) (610,222)Purchase of land use rights (21,444) –Net cash flows used in investing activities (900,688) (609,703)Cash flows from financing activitiesProceeds from the issue of new ordinary shares, net of share issue expenses – 772,327Dividends paid on ordinary shares (71,468) –Proceeds from loans and borrowings 642,626 30,255Proceeds from termination of derivatives 1,763 –Repayments of loans and borrowings (352,000) (160,264)Decrease in fixed deposits pledged 3,508 9,123Net cash flows from financing activities 224,429 651,441Net (decrease)/increase in cash and cash equivalents (306,696) 349,239Cash and cash equivalents at 1 January 506,810 157,571Cash and cash equivalents at 31 December (Note A) 200,114 506,810Notes to the cash flow statementA. Cash and cash equivalentsCash and cash equivalents consist of cash and bank balances and unpledged bank deposits. Cash and cashequivalents included in the statement of cash flows comprise the following:2008 2007Rmb’000 Rmb’000Fixed deposits 10,685 453,529Cash and bank balances 189,429 56,789Cash and bank deposits 200,114 510,318Less: Fixed deposits pledged – (3,508)Cash and cash equivalents 200,114 506,810Cash and bank balances denominated in Renminbi have an average effective interest rate of 0.66% perannum for the financial year ended 31 December 2008 (2007: 0.78%). Cash and bank balances denominatedin Singapore Dollars have an average effective interest rate of 0.07% per annum for the financial yearended 31 December 2008 (2007: 1.81%). No interest income is earned on bank balances denominated inUnited States Dollars.Annual Report 200846