| 48 | Reserves |
| 2017 | 2016 | |||||||
| RMB million | RMB million | |||||||
|
Share premium |
||||||||
|
At January 1 |
14,131 | 14,131 | ||||||
|
Addition (Note 47(ii)) |
1,051 | — | ||||||
|
|
|
|
|
|||||
|
At December 31 |
15,182 | 14,131 | ||||||
|
|
|
|
|
|||||
|
Fair value reserve |
||||||||
|
At January 1 |
209 | 55 | ||||||
|
Change in fair value of available-for-sale equity securities |
47 | 148 | ||||||
|
Change in fair value of derivative financial instruments |
19 | 6 | ||||||
|
|
|
|
|
|||||
|
At December 31 |
275 | 209 | ||||||
|
|
|
|
|
|||||
|
Statutory and discretionary surplus reserve |
||||||||
|
At January 1 |
1,957 | 1,552 | ||||||
|
Appropriations to reserves (Note (a)) |
492 | 405 | ||||||
|
|
|
|
|
|||||
|
At December 31 |
2,449 | 1,957 | ||||||
|
|
|
|
|
|||||
|
Other reserve |
||||||||
|
At January 1 |
121 | 123 | ||||||
|
Share of an associate’s reserves movement |
1 | (2 | ) | |||||
|
Dilution and change in non-controlling interests and other reserves |
113 | — | ||||||
|
|
|
|
|
|||||
|
At December 31 |
235 | 121 | ||||||
|
|
|
|
|
|||||
|
Retained profits |
||||||||
|
At January 1 |
17,220 | 13,366 | ||||||
|
Profit for the year |
5,961 | 5,044 | ||||||
|
Appropriations to reserves (Note (a)) |
(492 | ) | (405 | ) | ||||
|
Dividends approved in respect of the previous year |
(982 | ) | (785 | ) | ||||
|
|
|
|
|
|||||
|
At December 31 |
21,707 | 17,220 | ||||||
|
|
|
|
|
|||||
|
Total |
39,848 | 33,638 | ||||||
|
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|
|
|
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| (a) | Appropriations to reserves |
According to the PRC Company Law and the Articles of Association of the Company and certain of its subsidiaries, the Company and the relevant subsidiaries are required to transfer 10% of their annual net profits after taxation, as determined under the PRC accounting rules and regulations, to a statutory surplus reserve until the reserve balance reaches 50% of the registered capital. The transfer to this reserve must be made before distribution of dividend to shareholders and when there are retained profits at the end of the financial year.
Statutory surplus reserve can be used to offset prior years’ losses, if any, and may be converted into share capital by the issue of new shares to shareholders in proportion to their existing shareholding or by increasing the par value of the shares currently held by them, provided that the balance after such issue is not less than 25% of the registered capital.
| (b) | Dividends |
Dividends payable to equity shareholders of the Company attributable to the year:
| 2017 | 2016 | |||||||
| RMB million | RMB million | |||||||
|
Final dividend proposed after the end of the reporting year of RMB0.10 per share (2016: RMB0.10 per share) (inclusive of applicable tax) |
1,009 | 982 | ||||||
|
|
|
|
|
|||||
A dividend in respect of the year ended December 31, 2017 of RMB1.00 per 10 shares (inclusive of applicable tax) (2016: RMB1.00 per 10 shares (inclusive of applicable tax)), amounting to a total dividend of RMB1,009 million (2016: RMB982 million), was proposed by the directors on March 26, 2018. The dividend proposed after the end of the financial year has not been recognized as a liability at the end of the financial year.