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Management’sDiscussionandAnalysis of Financial Conditions andResults ofOperations
/ Annual Report 2011 /
1
Cash Flow
Our net cash outflow in 2011 increased to RMB1,158.74 million over RMB390.06 million in 2010. As at the end
of 2011, our cash and cash equivalents amounted to RMB7,298.23 million, of which 95.7% was denominated in
Renminbi.
The following table sets out our cash flow positions in 2010 and 2011, respectively:
2011
2010
RMB’000
RMB’000
Net cash generated from operating activities
1,223,642
1,526,412
Net cash used in investing activities
(860,541)
(1,055,364)
Net cash used in financing activities
(1,521,836)
(861,103)
Net decrease in cash and cash equivalents
(1,158,735)
(390,055)
In 2011, net cash generated from operating activities was RMB1,223.64 million, representing a decrease of
RMB302.77 million from RMB1,526.41 million in 2010. The decrease in net cash generated from operating activities
was mainly because more cash was needed to support the rapid development of the Group’s domestic and overseas
business, and certain customers of the Group delayed their payment due to credit tightening in China.
In 2011, net cash used in investing activities was RMB860.54 million, representing a decrease of RMB194.82 million
from RMB1,055.36 million in 2010. Cash used in investing activities in 2011 mainly comprised of capital expenditure
including the purchase of facilities.
In 2011, net cash used in financing activities was RMB1,521.84 million, representing an increase of RMB660.74
million from RMB861.10 million in 2010. The increase in net cash used in financing activities was mainly because the
Group repaid the short-term entrust loan.
Working Capital
As at the end of 2011, working capital (i.e. current assets minus current liabilities) was RMB9,189.05 million, while
working capital was RMB7,945.82 million in 2010. The increase in working capital was mainly due to the rapid
development of the Group’s domestic and overseas businesses, and certain customers of the Group delayed their
payment due to credit tightening in China.
Indebtedness
As at the end of 2011, total indebtedness of the Group was RMB998.34 million and decreased by RMB782.18
million from RMB1,780.52 million at the year end of 2010. Indebtedness of the Group were mainly fixed interest rate
loans and denominated in Renminbi, of which Renminbi loan accounted for 82.3% and US dollar loan accounted for
17.7%, and 94.5% was fixed interest rate loans and 5.5% was floating interest rate loans.
As at the end of 2011, our gearing ratio
(1)
was 5.9%, a decrease of 5.0 percentage points from 10.9% in 2010.
(1)
Gearing ratio equals to total interest-bearing debts divided by the sum of total interest-bearing debts and equity
attributable to equity shareholders of the Company at the end of each financial year.