Cash Flows
Consolidated Statement of Cash Flows
    For the year ended 31 December
Notes 2016
RMB'000
2015
RMB'000
Operating activities
Profit before tax 3,055,901 2,824,963
Adjustments for:
Depreciation and amortisation 850,387 845,518
Impairment losses on accounts and bills and other receivables 319,616 583,792
Impairment losses on property, plant and equipment and construction in progress 3,914 -
Impairment losses on inventories 57,951 63,260
Interest income (184,088) (143,392)
Finance costs 46,667 51,392
Share of profits of associates (66,095) (49,985)
Dividend income (51,142) (63,857)
Changes in fair value of financial derivatives 1,650 (3,524)
Gain on partial disposal of an associate and other investments (36,712) -
Loss/(Gain) on disposal of property, plant and equipment and other intangible assets, net 3,322 (29,013)
Exchange differences 6,934 41,118
Write-back of non-payable liabilities (18,282) (34,443)
Operating profit before changes in working capital 3,990,023 4,085,829
Decrease/(increase) in inventories 604,703 (526,351)
Increase in accounts and bills receivable (1,625,183) (583,468)
Increase in prepayments and other current assets (269,808) (1,347,048)
Increase in accounts and bills payable 688,286 871,498
Increase in receipts in advance for contract work 1,134,555 1,333,454
Increase in accrued expenses and other payables 1,144,360 1,353,086
Net cash inflow from operations 5,666,936 5,187,000
Interest paid (47,202) (50,334)
Interest received 180,472 126,758
Income tax paid (534,958) (575,613)
Net cash generated from operating activities 5,265,248 4,687,811
Investing activities
Payments for purchase of property, plant and equipment, lease prepayments and other intangible assets (846,649) (811,769)
Proceeds from disposal of property, plant and equipment and other intangible assets 18,655 161,637
Restricted bank deposits received/(paid) 39,269 (1,102,061)
Dividends received 115,079 63,727
Proceeds from disposal of investments 71,356 1,463
Payments for acquisition of investments (5,405) (750)
Other cash paid related to investing activities (1,131) (623)
Other cash received related to investing activities 4,474 2,212
Net cash used in investing activities (604,352) (1,686,164)
Financing activities
Capital contribution from non-controlling interests 20,327 -
Proceeds from bank and other loans 34,466 225,813
Repayments of bank and other loans (182,873) (302,502)
Dividends paid (821,092) (716,142)
Net cash used in financing activities (949,172) (792,831)
Increase in cash and cash equivalents 3,711,724 2,208,816
Cash and cash equivalents at beginning of year 9,535,851 7,313,515
Effect of foreign exchange rate changes 76,504 13,520
Cash and cash equivalents at end of the year 31 13,324,079 9,535,851
The notes on pages 111 to 180 form part of these consolidated financial statements.