| 45. | CHINA UNICOM (HONG KONG) LIMITED (PARENT COMPANY) |
Relevant PRC statutory laws and regulation permit payments of dividends by the Company’s subsidiaries in the PRC only out of their retained earnings, if any, as determined in accordance with the PRC accounting standards and regulations.
As of December 31, 2016 and 2017, RMB28,827 million and RMB28,877 million (US$4,438 million) were appropriated from retained earnings and set aside for the statutory reserve by the Company’s PRC subsidiaries, respectively.
As a result of these PRC laws and regulations, the Company’s subsidiaries in the PRC are restricted in its ability to transfer a portion of its net assets to either in the form of dividends, loans or advances, which consisted of registered capital and statutory reserves that amounted to RMB196,644 million and RMB252,350 million (US$38,785 million) as of December 31, 2016 and 2017, respectively.
Condensed Statement of financial position
| As of December 31 | ||||||||||||
| 2016 | 2017 | 2017 | ||||||||||
| RMB | RMB | US$ | ||||||||||
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ASSETS |
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Non-current assets |
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Property, plant and equipment |
10 | 5 | 1 | |||||||||
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Investments in subsidiaries |
159,815 | 234,768 | 36,083 | |||||||||
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Loan to a subsidiary |
32,602 | 22,832 | 3,509 | |||||||||
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Financial assets at fair value through other comprehensive Income |
4,138 | 4,070 | 626 | |||||||||
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| 196,565 | 261,675 | 40,219 | ||||||||||
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Current assets |
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Loan to subsidiaries |
2,467 | 202 | 31 | |||||||||
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Amounts due from subsidiaries |
5,729 | 2,510 | 386 | |||||||||
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Dividend receivable |
16,158 | 2,712 | 417 | |||||||||
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Prepayments and other current assets |
6 | 60 | 9 | |||||||||
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Short-term bank deposits |
— | 3,091 | 475 | |||||||||
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Cash and cash equivalents |
1,443 | 1,229 | 189 | |||||||||
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| 25,803 | 9,804 | 1,507 | ||||||||||
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Total assets |
222,368 | 271,479 | 41,726 | |||||||||
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EQUITY |
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Equity attributable to equity shareholders of the Company |
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Share capital |
179,102 | 254,056 | 39,048 | |||||||||
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Reserves |
(6,448 | ) | (6,516 | ) | (1,002 | ) | ||||||
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Retained profits |
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- Proposed final dividend |
— | 1,591 | 244 | |||||||||
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- Others |
7,869 | 7,184 | 1,105 | |||||||||
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Total equity |
180,523 | 256,315 | 39,395 | |||||||||
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LIABILITIES |
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Current liabilities |
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Short-term bank loans |
29,331 | 12,694 | 1,951 | |||||||||
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Accounts payable and accrued liabilities |
211 | 160 | 25 | |||||||||
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Loan from immediate holding company |
— | 435 | 67 | |||||||||
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Loans from subsidiaries |
970 | 928 | 143 | |||||||||
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Amounts due to subsidiaries |
6,385 | — | — | |||||||||
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Taxes payable |
29 | 27 | 4 | |||||||||
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Dividend payable |
920 | 920 | 141 | |||||||||
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Current portion of promissory notes |
3,999 | — | — | |||||||||
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| 41,845 | 15,164 | 2,331 | ||||||||||
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Total liabilities |
41,845 | 15,164 | 2,331 | |||||||||
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Total equity and liabilities |
222,368 | 271,479 | 41,726 | |||||||||
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Net current liabilities |
(16,042 | ) | (5,360 | ) | (824 | ) | ||||||
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Total assets less current liabilities |
180,523 | 256,315 | 39,395 | |||||||||
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Condensed Statements of Comprehensive Income
| Year ended December 31 | ||||||||||||||||
| 2015 | 2016 | 2017 | 2017 | |||||||||||||
| RMB | RMB | RMB | US$ | |||||||||||||
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Revenue |
— | 6 | 6 | 1 | ||||||||||||
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Dividend income |
7,226 | 371 | 1,441 | 221 | ||||||||||||
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General and administrative expenses |
(52 | ) | (63 | ) | (67 | ) | (10 | ) | ||||||||
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Interest income |
1,387 | 1,250 | 1,192 | 183 | ||||||||||||
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Finance costs |
(2,980 | ) | (718 | ) | (1,647 | ) | (253 | ) | ||||||||
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Other income-net |
67 | 1,060 | 1 | — | ||||||||||||
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Income before income tax |
5,648 | 1,906 | 926 | 142 | ||||||||||||
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Income tax expenses |
(36 | ) | (36 | ) | (20 | ) | (3 | ) | ||||||||
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Net income |
5,612 | 1,870 | 906 | 139 | ||||||||||||
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Other comprehensive income: |
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Change in fair value of financial assets through other comprehensive income-net |
(2,172 | ) | (531 | ) | (68 | ) | (10 | ) | ||||||||
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Total comprehensive income for the year |
3,440 | 1,339 | 838 | 129 | ||||||||||||
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Condensed Statements of Cash Flows
| Year ended December 31 | ||||||||||||||||
| 2015 | 2016 | 2017 | 2017 | |||||||||||||
| RMB | RMB | RMB | US$ | |||||||||||||
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Net cash outflow from operating activities |
(56 | ) | (85 | ) | (86 | ) | (13 | ) | ||||||||
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Net cash inflow from investing activities |
24,613 | 537 | (66,865 | ) | (10,277 | ) | ||||||||||
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Net cash (outflow)/inflow from financing activities |
(25,829 | ) | 266 | 66,682 | 10,249 | |||||||||||
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- Dividend paid to equity shareholders of the Company |
(4,643 | ) | (1,005 | ) | — | — | ||||||||||
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Net (decrease)/increase in cash and cash equivalents |
(1,272 | ) | 718 | (269 | ) | (41 | ) | |||||||||
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Cash and cash equivalents at beginning of year |
1,852 | 657 | 1,443 | 222 | ||||||||||||
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Effect of changes in foreign exchange rate |
77 | 68 | 55 | 8 | ||||||||||||
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Cash and cash equivalents at end of year |
657 | 1,443 | 1,229 | 189 | ||||||||||||
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