Performance Overview The company reported a 6.5% decrease in total revenue to HKD 27.36 billion for the six months ended June 30, 2025, but net profit attributable to shareholders increased by 27.5% to HKD 7.71 billion, driven by a significant 218.5% rise in property development profit [Interim Results Summary](index=1&type=section&id=Interim%20Results%20Summary) For the six months ended June 30, 2025, MTR Corporation Limited recorded total revenue of HKD 27.36 billion, a 6.5% year-on-year decrease, with net profit attributable to shareholders increasing by 27.5% to HKD 7.71 billion, despite a decline in recurring business profit, due to a substantial 218.5% growth in property development profit For the six months ended June 30, 2025, Key Performance Indicators (million HKD) | Indicator | 2025 (million HKD) | 2024 (million HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 27,360 | 29,271 | (6.5)% | | Recurring Business Profit | 3,391 | 4,024 | (15.7)% | | Property Development Profit | 5,542 | 1,740 | 218.5% | | Fair Value Measurement of Investment Properties (Loss)/Gain | (1,224) | 280 | n.m. | | Net Profit Attributable to Equity Holders of the Company | 7,709 | 6,044 | 27.5% | | Interim Ordinary Dividend Declared Per Share | HKD 0.42 | - | - | - Hong Kong railway operations revenue showed **stable growth**, primarily driven by increased passenger volume from cross-boundary and High Speed Rail (Hong Kong Section) services[5](index=5&type=chunk) - Hong Kong property development profit reached **HKD 5.5 billion**, mainly from Ho Man Tin Station Phases 1 and 2, and "The Southside" Phases 3 and 5 projects[5](index=5&type=chunk) - The Northern Link (Phase 1) project agreement has been signed with the government, and progress continues on projects such as Sydney Metro M1, Shenzhen Metro Line 13, and Beijing Metro Line 17[5](index=5&type=chunk) - Operating rights for the UK's Elizabeth Line and South Western Railway were transferred to the next operator in May 2025[5](index=5&type=chunk) [CEO Review and Outlook](index=24&type=section&id=CEO%20Review%20and%20Outlook) CEO Dr. Jacob Kam reviewed MTR's H1 2025 performance in railway expansion, operational efficiency, financial strength, and sustainability, outlining future plans to support Hong Kong's development, address macroeconomic challenges, and explore opportunities in Mainland China and overseas, emphasizing the "Rail plus Property" model and the signing of the Northern Link (Phase 1) project agreement - MTR made **significant progress** in expanding new railway projects in H1 2025, with steady passenger growth and robust operating revenue[67](index=67&type=chunk) - The company is committed to investing approximately **HKD 140 billion** in new railway projects under the "Railway Development Strategy 2014" and "Blueprint for Hong Kong's Major Transport Infrastructure Development," and has reserved **HKD 65 billion** for railway facility upgrades and maintenance between 2023 and 2027[67](index=67&type=chunk) - Successfully issued **USD 3 billion** in public notes and an inaugural **USD 3 billion** corporate subordinated perpetual securities to enhance financial strength for major infrastructure plans[68](index=68&type=chunk) - The Northern Link (Phase 1) project agreement was signed with the government on July 8, 2025, covering partial main line construction and detailed planning and design for the spur line, targeting simultaneous opening no later than 2034[69](index=69&type=chunk) - In H1 2025, the punctuality and scheduled train service delivery of Hong Kong's heavy rail network both maintained a **world-class level of 99.9%**[70](index=70&type=chunk) - Fares for 2025/2026 remain unchanged, with fare adjustment rates of +1.45% and the previously deferred +1.91% both postponed to 2026/2027[71](index=71&type=chunk) - The property business currently has **10 residential property projects** under development, expected to provide approximately **9,000 units**, and will recognize profits from "LOHAS Park" Phase 12 and "The Southside" Phase 5 projects[71](index=71&type=chunk) - Mainland China and international operations continue to explore new opportunities, with progress on Shenzhen Metro Line 13 and Beijing Metro Line 17, but operating rights for the UK's Elizabeth Line and South Western Railway have been transferred[72](index=72&type=chunk) - Looking ahead, the company will continue to support Hong Kong's sustainable growth through projects under the "Railway Development Strategy 2014" and "Blueprint for Hong Kong's Major Transport Infrastructure Development," and seek development opportunities in Mainland China and overseas[74](index=74&type=chunk) - Macroeconomic uncertainties, an aging population, and changes in travel patterns (e.g., cross-boundary consumption, slower recovery of inbound tourism, reduced night-time passenger flow) may impact passenger volume and retail performance[74](index=74&type=chunk)[76](index=76&type=chunk) Consolidated Financial Statements The group's total revenue for the six months ended June 30, 2025, was HKD 27.36 billion, a 6.5% decrease, while net profit attributable to shareholders rose 27.5% to HKD 7.71 billion, driven by property development gains, and total assets increased 9.6% to HKD 402.60 billion, supported by strong cash and perpetual capital securities [Consolidated Income Statement](index=2&type=section&id=Consolidated%20Income%20Statement) For the six months ended June 30, 2025, the Group's total revenue was HKD 27.36 billion, a 6.5% decrease year-on-year, with net profit attributable to equity holders of the Company increasing by 27.5% to HKD 7.71 billion, driven by a significant rise in property development profit despite a decline in Mainland China and international railway and property leasing and management subsidiary revenue Consolidated Income Statement Key Revenue Items (million HKD) | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | Hong Kong Railway Operations Revenue | 11,509 | 11,138 | | Hong Kong Station Commercial Business Revenue | 2,621 | 2,638 | | Hong Kong Property Leasing and Management Business Revenue | 2,657 | 2,688 | | Mainland China and International Railway, Property Leasing and Management Subsidiary Revenue | 10,183 | 12,429 | | Other Business Revenue | 376 | 378 | | Mainland China Property Development Revenue | 14 | - | | **Total Revenue** | **27,360** | **29,271** | Consolidated Income Statement Key Profit Items (million HKD) | Profit Item | 2025 | 2024 | | :--- | :--- | :--- | | Operating Profit before Depreciation, Amortisation and Annual Payment | 14,208 | 11,416 | | Profit before Interest, Finance Expenses and Tax | 10,176 | 7,749 | | Profit for the Period | 7,822 | 6,144 | | Net Profit Attributable to Equity Holders of the Company | 7,709 | 6,044 | | Basic Earnings Per Share | HKD 1.24 | HKD 0.97 | | Diluted Earnings Per Share | HKD 1.24 | HKD 0.97 | - Hong Kong property development profit significantly increased to **HKD 5.542 billion** (2024: HKD 1.740 billion), primarily from Hong Kong projects[11](index=11&type=chunk) - Fair value measurement of investment properties shifted from a **gain of HKD 280 million** to a **loss of HKD 1.224 billion**[11](index=11&type=chunk) [Consolidated Statement of Comprehensive Income](index=5&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's total comprehensive income for the period increased to HKD 7.08 billion from HKD 5.76 billion in the prior year, primarily due to a positive shift in exchange differences on translation, despite revaluation losses on owner-occupied properties and net changes in hedging reserves Consolidated Statement of Comprehensive Income Key Items (million HKD) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the Period | 7,822 | 6,144 | | Revaluation Loss on Owner-Occupied Properties | (136) | (59) | | Exchange Differences on Translation | 728 | (478) | | Net Change in Hedging Reserve | (1,362) | 155 | | **Total Comprehensive Income for the Period** | **7,077** | **5,755** | | Total Comprehensive Income Attributable to Equity Holders of the Company | 6,939 | 5,662 | - Exchange differences on translation shifted from a **loss of HKD 478 million** in 2024 to a **gain of HKD 728 million** in 2025, positively impacting comprehensive income[12](index=12&type=chunk) - Net change in hedging reserve shifted from a **gain of HKD 155 million** in 2024 to a **loss of HKD 1.362 billion** in 2025[12](index=12&type=chunk) [Consolidated Statement of Financial Position](index=6&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets grew 9.6% to HKD 402.60 billion, driven by a substantial increase in cash, bank balances, and deposits, and growth in securities investments, while total liabilities increased 5.5% to HKD 191.39 billion due to higher net loan drawdowns, resulting in a 13.5% increase in net assets to HKD 211.21 billion Consolidated Statement of Financial Position Key Asset Items (million HKD) | Asset Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Fixed Assets | 241,997 | 243,190 | | Properties Under Development | 42,628 | 42,300 | | Interests in Associates and Joint Ventures | 13,590 | 13,039 | | Securities Investments | 6,693 | 1,952 | | Trade and Other Receivables | 11,506 | 15,780 | | Cash, Bank Balances and Deposits | 56,796 | 27,886 | | **Total Assets** | **402,597** | **367,499** | Consolidated Statement of Financial Position Key Liabilities and Equity Items (million HKD) | Liabilities and Equity Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Short-Term Loans | 17 | 847 | | Trade and Other Payables and Provisions | 64,265 | 69,417 | | Loans and Other Liabilities | 92,156 | 76,721 | | **Total Liabilities** | **191,390** | **181,366** | | Net Assets | 211,207 | 186,133 | | Total Equity Attributable to Equity Holders of the Company | 186,976 | 185,625 | | Perpetual Capital Securities | 23,574 | - | | **Total Equity** | **211,207** | **186,133** | - Cash, bank balances and deposits significantly increased by **103.7% to HKD 56.796 billion**, primarily due to the issuance of perpetual capital securities[13](index=13&type=chunk) - Perpetual capital securities were first recognized as equity, amounting to **HKD 23.574 billion**[13](index=13&type=chunk) Notes to the Financial Statements This section provides detailed notes on the interim financial report's review, accounting policies, retained profits, property development and investment property valuations, income tax, dividends, earnings per share, segment information, government-entrusted railway projects, receivables/payables, perpetual capital securities, and asset charges [Review and Basis of Preparation of Interim Financial Report](index=7&type=section&id=Review%20and%20Basis%20of%20Preparation%20of%20Interim%20Financial%20Report) This interim results announcement is extracted from the unaudited interim financial report, which has been reviewed by KPMG with an unmodified conclusion, prepared in accordance with HKEX Listing Rules, and adopts the same accounting policies as the 2024 annual financial statements, with no significant impact from new accounting standards except for perpetual capital securities - The interim financial report is unaudited but has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410, resulting in an **unmodified conclusion**[14](index=14&type=chunk) - The report is prepared in compliance with the disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and should be read in conjunction with the 2024 annual financial statements[15](index=15&type=chunk) - Except for new accounting policies related to perpetual capital securities, the accounting policies adopted in preparing the interim financial report are the same as those in the 2024 annual financial statements, with **no significant impact** from newly revised standards[15](index=15&type=chunk) [Retained Profits](index=8&type=section&id=Retained%20Profits) As of June 30, 2025, the company's retained profits balance increased to HKD 125.62 billion from HKD 123.45 billion at the beginning of the year, with profit attributable to equity holders of HKD 7.71 billion partially offset by proposed and approved dividends of HKD 5.54 billion Retained Profits Movement (million HKD) | Item | Balance as of June 30, 2025 | | :--- | :--- | | Balance as of January 1, 2025 | 123,454 | | Profit for the Period Attributable to Equity Holders of the Company | 7,709 | | Award Shares Attributable to and Forfeited from Executive Share Award Scheme | (5) | | Proposed and Approved Dividends | (5,541) | | **Balance as of June 30, 2025** | **125,617** | [Hong Kong Property Development Profit](index=8&type=section&id=Hong%20Kong%20Property%20Development%20Profit) For the six months ended June 30, 2025, Hong Kong property development profit (after tax) significantly increased to HKD 5.53 billion, primarily derived from surpluses, income, and interests in unsold properties from property development Hong Kong Property Development Profit (million HKD) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Share of Surpluses, Income and Interests in Unsold Properties from Property Development | 6,592 | 1,995 | | Agency Fees and Other Income from West Rail Property Development | 5 | 33 | | Other Expenses | (3) | (4) | | **Hong Kong Property Development Profit (before tax)** | **6,594** | **2,024** | | **Hong Kong Property Development Profit (after tax)** | **5,530** | **1,722** | - Profit attributable to equity holders of the Company from Hong Kong property development was **HKD 5.530 billion**, a significant increase from HKD 1.722 billion in the prior year[18](index=18&type=chunk) [Fair Value Measurement of Investment Properties](index=9&type=section&id=Fair%20Value%20Measurement%20of%20Investment%20Properties) For the six months ended June 30, 2025, fair value measurement of investment properties shifted from a gain of HKD 280 million to a loss of HKD 1.22 billion, mainly due to a substantial increase in re-measurement losses, partially offset by fair value gains on initial recognition of investment properties from property development Fair Value Measurement of Investment Properties (million HKD) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Re-measurement Loss on Fair Value of Investment Properties | (2,702) | (810) | | Fair Value Gain on Initial Recognition of Investment Properties from Property Development | 1,478 | 1,090 | | **Total** | **(1,224)** | **280** | - Re-measurement loss on fair value of investment properties increased from **HKD 810 million to HKD 2.702 billion**[19](index=19&type=chunk) - The Group has recognized a remaining fair value gain of **HKD 1.5 billion** (2024: HKD 1.1 billion) in profit or loss for the initial recognition of investment properties from property development[20](index=20&type=chunk) [Income Tax](index=9&type=section&id=Income%20Tax) For the six months ended June 30, 2025, income tax expense in the consolidated income statement increased to HKD 1.73 billion, with Hong Kong profits tax calculated at 16.5% (8.25% for the first HKD 2 million), and the company continues to appeal a tax deduction dispute related to the Rail Merger, with a HKD 200 million tax provision made Income Tax in Consolidated Income Statement (million HKD) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current Tax - Hong Kong Profits Tax | 1,484 | 851 | | Current Tax - Overseas Tax | 174 | 251 | | Deferred Tax | 76 | 9 | | **Total** | **1,734** | **1,111** | - Hong Kong profits tax provision is calculated at a rate of **16.5%**, with the first HKD 2 million of assessable profits taxed at 8.25%[22](index=22&type=chunk) - The company has objected to the Inland Revenue Department's assessment regarding tax deductions for amounts related to the Rail Merger and has appealed, having purchased **HKD 2.8 billion** in tax reserve certificates[25](index=25&type=chunk) - The Court of First Instance granted the company leave to appeal on May 27, 2025, with the appeal hearing scheduled for early 2027[26](index=26&type=chunk) - As of June 30, 2025, a total tax provision of **HKD 200 million** has been made for the amortization of the initial payment and assumed liabilities related to the Rail Merger[26](index=26&type=chunk) [Dividends](index=11&type=section&id=Dividends) The Board has resolved to declare an interim dividend of HKD 0.42 per share for the six months ended June 30, 2025, consistent with the prior year, in line with the company's progressive ordinary dividend policy aiming to steadily increase or at least maintain the ordinary dividend per share annually Ordinary Dividends (million HKD) | Dividend Type | 2025 | 2024 | | :--- | :--- | :--- | | Interim Ordinary Dividend of HKD 0.42 Per Share Declared After Reporting Period | 2,614 | 2,614 | | Final Ordinary Dividend of HKD 0.89 Per Share Approved and Paid (2024: Approved and Payable) During the Period | 5,541 | 5,533 | - The interim dividend is expected to be paid on **September 16, 2025**, to shareholders whose names appear on the Company's register of members on September 3, 2025[28](index=28&type=chunk) [Earnings Per Share](index=12&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, both basic and diluted earnings per share increased to HKD 1.24 from HKD 0.97 in the prior year, with basic and diluted earnings per share from underlying business at HKD 1.44 Earnings Per Share (HKD) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Basic Earnings Per Share | 1.24 | 0.97 | | Diluted Earnings Per Share | 1.24 | 0.97 | | Basic Earnings Per Share from Underlying Business | 1.44 | 0.93 | | Diluted Earnings Per Share from Underlying Business | 1.44 | 0.93 | - Earnings per share are calculated based on net profit attributable to equity holders of the Company of **HKD 7.709 billion** (2024: HKD 6.044 billion) and the weighted average number of shares[30](index=30&type=chunk) [Segment Information](index=12&type=section&id=Segment%20Information) The Group's operations are segmented into recurring businesses (including Hong Kong and non-Hong Kong railway, property leasing, and management) and property development, with total revenue of HKD 27.36 billion for the six months ended June 30, 2025, of which HKD 17.16 billion was contributed by the Hong Kong Special Administrative Region - The Group's businesses primarily include Hong Kong passenger transport services, Hong Kong station commercial business, Hong Kong property leasing and management, Hong Kong property development, Mainland China and international railway/property leasing and management, Mainland China property development, and other businesses[31](index=31&type=chunk)[32](index=32&type=chunk) Revenue and Profit Contribution by Reportable Business Segment (million HKD) | Business Segment | 2025 Revenue | 2024 Revenue | 2025 Profit Contribution | 2024 Profit Contribution | | :--- | :--- | :--- | :--- | :--- | | Hong Kong Passenger Transport Services | 14,130 | 13,776 | 1,896 | 2,312 | | Hong Kong Property Leasing and Management Business | 2,657 | 2,688 | 2,084 | 2,154 | | Mainland China and International Railway, Property Leasing and Management Business | 10,183 | 12,429 | 409 | 486 | | Mainland China Property Development | 14 | - | 4 | (2) | | Other Businesses | 376 | 378 | 39 | 19 | | Hong Kong Property Development | - | - | 6,594 | 2,024 | | Fair Value Measurement of Investment Properties (Loss)/Gain | - | - | (1,224) | 280 | | **Total Revenue** | **27,360** | **29,271** | **Profit for the Period** | **7,822** | **6,144** | Revenue from External Customers by Geographical Region (million HKD) | Region | 2025 | 2024 | | :--- | :--- | :--- | | Hong Kong Special Administrative Region | 17,157 | 16,837 | | Australia | 6,785 | 7,812 | | Mainland China and Macao Special Administrative Region | 530 | 937 | | Sweden | 1,492 | 2,139 | | United Kingdom | 1,396 | 1,546 | | **Total** | **27,360** | **29,271** | [Railway Projects Entrusted by HKSAR Government](index=14&type=section&id=Railway%20Projects%20Entrusted%20by%20HKSAR%20Government) This section details MTR's entrusted agreements with the HKSAR Government for the Express Rail Link (Hong Kong Section) and Shatin to Central Link projects, outlining funding, liability caps, and ongoing disputes, with provisions made for additional project management fees and Hung Hom incident-related costs - MTR and the HKSAR Government have signed multiple entrusted agreements for the Express Rail Link (Hong Kong Section) and Shatin to Central Link projects, clarifying their respective responsibilities and funding arrangements[37](index=37&type=chunk)[42](index=42&type=chunk) - The estimated project cost for the Express Rail Link (Hong Kong Section) is **HKD 84.42 billion**, with MTR's total legal liability under the entrusted agreement capped[41](index=41&type=chunk) - The original entrusted amount for the Shatin to Central Link project was **HKD 70.827 billion**, later revised to an estimated total cost of **HKD 82.999 billion**, with the government approving an additional **HKD 10.801 billion** in funding[46](index=46&type=chunk)[47](index=47&type=chunk) - The company made a provision of **HKD 1.371 billion** in 2020 for additional project management responsibilities under Shatin to Central Link Entrustment Agreement 3, with **HKD 160 million** remaining as of June 30, 2025[48](index=48&type=chunk) - The company made a provision of **HKD 2 billion** in 2019 for costs related to the Hung Hom incident, with **HKD 721 million** remaining as of June 30, 2025[53](index=53&type=chunk) - Negotiations between the company and the HKSAR Government regarding the Hung Hom incident and related payment liabilities are ongoing, with the final outcome remaining uncertain[53](index=53&type=chunk)[56](index=56&type=chunk) [Guangzhou-Shenzhen-Hong Kong Express Rail Link (Hong Kong Section)](index=14&type=section&id=Guangzhou-Shenzhen-Hong%20Kong%20Express%20Rail%20Link%20(Hong%20Kong%20Section)) MTR and the HKSAR Government have an entrusted agreement for the Express Rail Link (Hong Kong Section), defining MTR's project management responsibilities and the government's funding up to an estimated HKD 84.42 billion, with MTR's total legal liability capped, and the government reserving arbitration rights for cost overruns, though no formal claims have been received - The HKSAR Government bears and pays up to **HKD 84.42 billion** of the project cost, including an agreed increase of **HKD 19.42 billion**[41](index=41&type=chunk) - Project management fees for the Express Rail Link (Hong Kong Section) increased from **HKD 4.59 billion to HKD 6.34 billion**, with the liability cap correspondingly rising to a maximum of **HKD 6.69 billion**[41](index=41&type=chunk) - The government reserves the right to refer to arbitration any issues regarding MTR's responsibility for current cost overruns under the entrusted agreement, but as of the interim financial report date, the company has received **no formal claims**[38](index=38&type=chunk)[41](index=41&type=chunk) - The company has made no provision for any potential further cost overruns or arbitration awards, believing no further revision to the cost estimate is needed and that it is protected by the liability cap[45](index=45&type=chunk) [Shatin to Central Link](index=16&type=section&id=Shatin%20to%20Central%20Link) The Shatin to Central Link project involves multiple entrusted agreements, with the government covering most construction costs, and the total project cost estimate revised upwards to HKD 82.999 billion due to external factors, for which the government has approved additional funding, while MTR has made provisions for extra project management fees and Hung Hom incident-related costs, with ongoing negotiations with the government on final liability - Shatin to Central Link Entrustment Agreement 3 for major construction works received **HKD 70.827 billion** in government funding, with project management fees of **HKD 7.893 billion**[43](index=43&type=chunk) - The revised total estimated cost for the Shatin to Central Link project is **HKD 82.999 billion**, an increase of **HKD 12.172 billion** from the original entrusted amount, with the government approving an additional **HKD 10.801 billion** in funding[46](index=46&type=chunk)[47](index=47&type=chunk) - The company made a provision of **HKD 1.371 billion** in 2020 for additional project management responsibilities under Shatin to Central Link Entrustment Agreement 3, with **HKD 160 million** remaining as of June 30, 2025[48](index=48&type=chunk) - The company made a provision of **HKD 2 billion** in 2019 for costs related to the Hung Hom incident, with **HKD 721 million** remaining as of June 30, 2025[53](index=53&type=chunk) - Negotiations between the company and the government regarding the Hung Hom incident and related payment liabilities are ongoing, with the final responsibility or liability amount remaining uncertain, and no additional provisions have been made by the company[53](index=53&type=chunk)[56](index=56&type=chunk) [Trade and Other Receivables and Payables](index=20&type=section&id=Trade%20and%20Other%20Receivables%20and%20Payables) As of June 30, 2025, the Group's trade and other receivables decreased to HKD 11.51 billion from December 31, 2024, while trade and other payables and provisions also decreased to HKD 64.27 billion, with most receivables being current and most payables due within 30 days or on demand Trade and Other Receivables (million HKD) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Not Yet Due | 4,117 | 8,181 | | Overdue Within 30 Days | 162 | 177 | | Overdue More Than 30 Days But Within 60 Days | 60 | 55 | | Overdue More Than 60 Days But Within 90 Days | 34 | 18 | | Overdue More Than 90 Days | 164 | 121 | | **Total Trade Receivables** | **4,537** | **8,552** | | Other Receivables and Contract Assets | 6,969 | 7,228 | | **Total** | **11,506** | **15,780** | Trade and Other Payables and Provisions (million HKD) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Due Within 30 Days or On Demand | 8,537 | 9,212 | | Due After 30 Days But Within 60 Days | 2,595 | 2,850 | | Due After 60 Days But Within 90 Days | 1,140 | 1,166 | | Due After 90 Days | 5,330 | 4,761 | | **Total Trade Payables and Accrued Expenses** | **22,292** | **23,015** | | Other Payables, Deferred Income and Provisions | 38,774 | 43,212 | | Contract Liabilities | 3,199 | 3,190 | | **Total** | **64,265** | **69,417** | [Perpetual Capital Securities](index=21&type=section&id=Perpetual%20Capital%20Securities) On June 24, 2025, the Company issued USD 3 billion (HKD 23.55 billion) in subordinated perpetual capital securities across two tranches with coupon rates of 4.875% and 5.625%, classified as equity in the Group's consolidated financial statements, with proceeds used for general corporate purposes - Issued **USD 3 billion (HKD 23.55 billion)** in subordinated perpetual capital securities, unconditionally and irrevocably guaranteed by the Company[58](index=58&type=chunk) - The first tranche of perpetual securities has a principal amount of **USD 1.5 billion** with a coupon rate of **4.875% per annum** for the first 5.5 years; the second tranche has a principal amount of **USD 1.5 billion** with a coupon rate of **5.625% per annum** for the first 10.5 years[58](index=58&type=chunk)[59](index=59&type=chunk) - The perpetual securities are classified as equity in the Group's consolidated financial statements, with proceeds on-lent to the Company for general corporate purposes[59](index=59&type=chunk) [Purchase or Redemption of Listed Securities](index=21&type=section&id=Purchase%20or%20Redemption%20of%20Listed%20Securities) For the six months ended June 30, 2025, the Company redeemed RMB 345 million (HKD 399 million) in bonds, and the trustee of the Executive Share Award Scheme purchased 4,341,500 ordinary shares of the Company for approximately HKD 113 million - The Company redeemed **RMB 345 million (HKD 399 million)** in bonds at par on January 21, 2025[61](index=61&type=chunk) - The trustee of the Executive Share Award Scheme purchased a total of **4,341,500 ordinary shares** of the Company for a total consideration of approximately **HKD 113 million**[61](index=61&type=chunk) [Charges on Group Assets](index=21&type=section&id=Charges%20on%20Group%20Assets) As of June 30, 2025, two of the Group's Mainland China subsidiaries provided collateral for bank loans totaling RMB 527 million and RMB 3.2 billion, respectively, using ticketing and non-ticketing revenue from their railway lines and interests in insurance contracts - MTR Rail Transit (Shenzhen) Company Limited provided collateral for a **RMB 527 million (HKD 577 million)** bank loan using ticketing and non-ticketing revenue and interests in insurance contracts related to Shenzhen Metro Line 4 Phase 2[62](index=62&type=chunk) - MTR CRRC Electric Traction Rail Transit (Shenzhen) Company Limited provided collateral for a **RMB 3.2 billion (HKD 3.5 billion)** bank loan using ticketing and non-ticketing revenue related to Shenzhen Metro Line 13 Phase 1[62](index=62&type=chunk) Business Performance Review This section reviews MTR's Hong Kong operations, covering passenger transport, station commercial business, property development, and network expansion, as well as its Mainland China and international railway and property businesses, other ventures, and commitments to ESG and human resources [Hong Kong Operations](index=27&type=section&id=Hong%20Kong%20Operations) MTR's Hong Kong operations encompass railway and bus passenger services, station commercial business, property development, leasing, and management, alongside investment, design, and construction of new railway lines, with continuous service enhancements, smart mobility initiatives, significant property development profit contributions, and active expansion of the Hong Kong railway network - Hong Kong operations adopt a **"Rail plus Property"** business model, leveraging property development projects to fund infrastructure initiatives[79](index=79&type=chunk) [Hong Kong Passenger Transport Services - Railway Operations](index=27&type=section&id=Hong%20Kong%20Passenger%20Transport%20Services%20-%20Railway%20Operations) In H1 2025, Hong Kong railway operations revenue grew 3.3% to HKD 11.51 billion, driven by increased cross-boundary and High Speed Rail passenger volumes, though rising operating expenses led to a decline in EBIT, while maintaining world-class punctuality and safety, with ongoing investments in automatic fare collection system upgrades, new trains, and signal system replacements, alongside smart mobility initiatives Hong Kong Railway Operations Key Financial Indicators (million HKD) | Indicator | 2025 | 2024 | Increase/(Decrease) % | | :--- | :--- | :--- | :--- | | Total Revenue | 11,509 | 11,138 | 3.3 | | EBITDA | 3,966 | 4,059 | (2.3) | | EBIT | 98 | 415 | (76.4) | | EBITDA Margin (%) | 34.5% | 36.4% | (1.9) percentage points | | EBIT Margin (%) | 0.9% | 3.7% | (2.8) percentage points | Hong Kong Railway Operations Passenger Volume and Revenue (millions/million HKD) | Service Category | 2025 Passenger Volume | 2024 Passenger Volume | Passenger Volume Increase/(Decrease) % | 2025 Revenue | 2024 Revenue | Revenue Increase/(Decrease) % | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Local Railway Services | 786.0 | - | (0.2) | 7,241 | - | 2.9 | | Cross-Boundary Services | 51.2 | - | 10.1 | 1,810 | - | 6.6 | | High Speed Rail (Hong Kong Section) and Intercity Passenger Transport | 14.7 | - | 16.2 | 1,656 | - | 2.1 | | Airport Express | 6.4 | - | 2.3 | 402 | - | 2.8 | | Light Rail and Bus | 105.4 | - | 0.9 | 355 | - | 5.7 | | **Total** | **963.7** | **957.4** | **0.7** | **11,464** | **-** | **3.4** | - Train service delivery according to schedule and passenger journey punctuality both maintained a **world-class level of 99.9%**[81](index=81&type=chunk) - MTR's overall market share in Hong Kong's franchised public transport market was **50.0%** for the first five months of 2025, with a **72.5%** share in the cross-harbour transport market[83](index=83&type=chunk) - MTR fares for 2025/2026 remain unchanged, with fare adjustment rates deferred to 2026/2027, while Airport Express fares increased by an average of **9.24%**[84](index=84&type=chunk) - Heavy rail services experienced **six delays** of 31 minutes or more due to company-controllable factors, with **no such delays** in Light Rail services[85](index=85&type=chunk) - The total number of reportable incidents decreased by **20% year-on-year**, demonstrating a strong commitment to public and staff safety[87](index=87&type=chunk) - The automatic fare collection system upgrade program has installed **1,669 new or retrofitted gates**, with replacement works completed at **37 stations**[90](index=90&type=chunk) - The new train replacement program continues to progress, with **28 new trains** operating on the Kwun Tong Line and Island Line, and new trains for the Tung Chung Line and Disneyland Resort Line currently undergoing testing or design[91](index=91&type=chunk) - Signal system replacement works are expected to commence service on the Tsuen Wan Line in 2026, with the entire program anticipated to be completed by 2029[92](index=92&type=chunk) - The plan to install approximately **1,600 pairs of automatic platform gates** along 13 stations of the East Rail Line was fully completed in May 2025[95](index=95&type=chunk) - The MTR Mobile app has been upgraded to provide more personalized real-time information and introduced an **"e-City Pass"** for passenger convenience[96](index=96&type=chunk) - Actively integrating advanced technologies such as artificial intelligence and deep learning to enhance operational resilience and create smart mobility solutions[96](index=96&type=chunk) [Hong Kong Passenger Transport Services - Station Commercial Business](index=30&type=section&id=Hong%20Kong%20Passenger%20Transport%20Services%20-%20Station%20Commercial%20Business) In H1 2025, Hong Kong station commercial business total revenue decreased by 0.6% year-on-year to HKD 2.62 billion, primarily due to lower advertising and telecommunications business revenue, despite an increase in station retail rental income, with the company responding to market challenges through promotions, new brand introductions, and adjusted advertising strategies Hong Kong Station Commercial Business Key Financial Indicators (million HKD) | Indicator | 2025 | 2024 | Increase/(Decrease) % | | :--- | :--- | :--- | :--- | | Station Retail Rental Income | 1,834 | 1,787 | 2.6 | | Advertising Income | 451 | 496 | (9.1) | | Telecommunications Business Income | 272 | 296 | (8.1) | | Other Station Commercial Business Income | 64 | 59 | 8.5 | | **Total Revenue** | **2,621** | **2,638** | **(0.6)** | | EBITDA | 2,244 | 2,328 | (3.6) | | EBIT | 1,798 | 1,897 | (5.2) | | EBITDA Margin (%) | 85.6% | 88.2% | (2.6) percentage points | | EBIT Margin (%) | 68.6% | 71.9% | (3.3) percentage points | - Station retail rental income increased by **2.6% to HKD 1.834 billion**, primarily due to higher duty-free shop rental income[98](index=98&type=chunk) - The average occupancy rate for station shops was **98.6%**, with new rental agreements seeing a **7.0% decrease**[98](index=98&type=chunk) - Advertising income decreased by **9.1% to HKD 451 million**, affected by economic uncertainty and subdued consumer sentiment[101](index=101&type=chunk) - Telecommunications business income decreased by **8.1% to HKD 272 million**, mainly due to lower bandwidth services and common system income[102](index=102&type=chunk) [Property Business](index=31&type=section&id=Property%20Business) In H1 2025, Hong Kong property leasing revenue decreased by 1.8% to HKD 2.50 billion due to cross-boundary consumption and changing spending patterns, while property management revenue grew 9.8%, and property development recorded HKD 5.53 billion in after-tax profit, mainly from Ho Man Tin Station and "The Southside" projects, with ongoing pre-sales and sales of multiple property projects and plans to tender for Tung Chung East Station Phase 2 and Tuen Mun Area 16 Station Phase 1 in the next 12 months Hong Kong Property Leasing and Property Management Business Key Financial Indicators (million HKD) | Indicator | 2025 | 2024 | Increase/(Decrease) % | | :--- | :--- | :--- | :--- | | Property Leasing Business Revenue | 2,500 | 2,545 | (1.8) | | Property Management Business Revenue | 157 | 143 | 9.8 | | **Total Revenue** | **2,657** | **2,688** | **(1.2)** | | EBITDA | 2,101 | 2,163 | (2.9) | | EBIT | 2,084 | 2,154 | (3.2) | | EBITDA Margin (%) | 79.1% | 80.5% | (1.4) percentage points | | EBIT Margin (%) | 78.4% | 80.1% | (1.7) percentage points | - Hong Kong property development recorded an after-tax profit of **HKD 5.530 billion**, primarily from profit recognition for Ho Man Tin Station Property Development Package 1 and 2, and "The Southside" Phases 3 and 5[108](index=108&type=chunk) - MTR Malls' new rental agreements saw a **7.8% decrease**, with an average occupancy rate of **99%**; IFC Tower 2 office space maintained an average occupancy rate of **98%**[105](index=105&type=chunk) - As of June 30, 2025, MTR manages over **128,000 residential units** and over **920,000 square meters** of commercial and office space[107](index=107&type=chunk) - Multiple property projects are progressing well with pre-sales, including "The Horizon," "The YOHO Hub," "The Pavilia Farm," "The Grand Mayfair," "GRAND SEASONS," "SEASONS PLACE," "PARK SEASONS," "The Aura," "Blue Coast," and "YOHO WEST"[109](index=109&type=chunk)[110](index=110&type=chunk)[112](index=112&type=chunk) - Tendering for the Tung Chung East Station Phase 2 project and Tuen Mun Area 16 Station Phase 1 project is expected in the **next 12 months** or so[113](index=113&type=chunk) - MTR has **10 residential property projects** expected to provide approximately **9,000 units** to the housing market in the coming years[114](index=114&type=chunk) [Hong Kong Network Expansion](index=33&type=section&id=Hong%20Kong%20Network%20Expansion) MTR continues to invest in new railway infrastructure projects to support Hong Kong's future growth, having signed the Northern Link (Phase 1) project agreement with the government and progressing with key new railway and station projects including the Tung Chung Line Extension, Siu Ho Wan Station, Tuen Mun South Extension, East Rail Line Kwu Tung Station, and Hung Shui Kiu Station, aiming to enhance connectivity and create growth opportunities - The Northern Link (Phase 1) project agreement was signed with the government on July 8, 2025, establishing funding and construction arrangements for part of the main line and initiating detailed planning and design for the spur line[117](index=117&type=chunk)[122](index=122&type=chunk) - Tunnel boring for the westbound tunnel of the Tung Chung Line Extension project has commenced, with completion expected by **2029**[116](index=116&type=chunk) - Bore piling works for the Siu Ho Wan Station project are **50% complete**, with the station expected to be completed by **2030**[118](index=118&type=chunk) - Foundation construction works for the Tuen Mun South Extension project have commenced, with completion expected by **2030**[119](index=119&type=chunk) - Significant progress has been made on the civil engineering works for the East Rail Line Kwu Tung Station project, with the underground structure up to ground level completed, targeting completion by **2027**[120](index=120&type=chunk) - Detailed design work for the Hung Shui Kiu Station project has commenced, with completion expected by **2030**[121](index=121&type=chunk) - The Northern Link main line and spur line are targeted to open simultaneously no later than **2034**[122](index=122&type=chunk) - The company is actively exploring various financing models, including the **"Rail plus Property"** development model, to promote railway development in Hong Kong[124](index=124&type=chunk) [Mainland China and International Operations](index=35&type=section&id=Mainland%20China%20and%20International%20Operations) Mainland China and International Operations serve as a growth pillar for MTR, transporting approximately 1.2 billion passengers across Mainland China, Europe, and Australia in H1 2025, with ongoing railway and property projects in Mainland China and exploration of overseas opportunities, despite a decline in total recurring business profit and the recent handover of UK railway operating rights Mainland China and International Operations Key Financial Indicators (million HKD) | Indicator | 2025 Revenue | 2024 Revenue | Revenue Increase/(Decrease) % | 2025 EBIT | 2024 EBIT | EBIT Increase/(Decrease) % | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Mainland China and Macao Railway, Property Leasing and Property Management Business (Subsidiaries) | 514 | 937 | (45.1) | (161) | (114) | (41.2) | | International Railway Business (Subsidiaries) | 9,669 | 11,492 | (15.9) | 570 | 600 | (5.0) | | **Total (Subsidiaries)** | **10,183** | **12,429** | **(18.1)** | **409** | **486** | **(15.8)** | | Share of Profit from Associates and Joint Ventures | - | - | - | 389 | 448 | (13.2) | | **Profit from Recurring Business Attributable to Equity Holders of the Company (after business development expenses)** | - | - | - | **418** | **542** | **(22.9)** | | **Profit from Mainland China Property Development Attributable to Equity Holders of the Company** | - | - | - | **12** | **18** | **(33.3)** | | **Profit from Underlying Business Attributable to Equity Holders of the Company** | - | - | - | **430** | **560** | **(23.2)** | - Total recurring business profit from Mainland China and Macao railway, property leasing, and property management businesses decreased, partly due to operating losses from the initial section of Shenzhen Metro Line 13 and reduced contributions from Hangzhou railway operations[128](index=128&type=chunk) - Total recurring business profit from international operations decreased, mainly due to reduced contributions from South Western Railway and no contribution after the disposal of MTRX[128](index=128&type=chunk) [Mainland China Railway Operations](index=36&type=section&id=Mainland%20China%20Railway%20Operations) MTR operates multiple metro lines in Beijing, Shenzhen and Hangzhou, with stable operating performance and punctuality rates above 99.9%. Construction continues on the middle section of Beijing Metro Line 17 and other sections of Shenzhen Metro Line 13. However, Shenzhen Metro Line 4 and Hangzhou Metro Line 1 face financial viability challenges due to a lack of fare adjustment mechanisms and slow passenger growth - Beijing Metro Line 4, Daxing Line, Line 14, Line 16, and the Southern and Northern sections of Line 17 operate stably, with an average train service punctuality rate of **over 99.9%**[129](index=129&type=chunk) - Construction of the middle section of Beijing Metro Line 17 continues to progress, with an expected opening by the **end of 2025**[129](index=129&type=chunk) - Shenzhen Metro Line 4 operates stably, but its long-term financial viability is affected as fares have **not been increased since 2010**[130](index=130&type=chunk) - The initial section of Shenzhen Metro Line 13 commenced operation in December 2024 and is operating stably, with other sections under construction as planned[131](index=131&type=chunk) - Hangzhou Metro Line 1 and its extension, and Line 5 maintain stable operations, but Line 1 recorded a loss due to slow passenger growth and the impact of the pandemic, and **lacks a passenger volume compensation mechanism**[132](index=132&type=chunk)[133](index=133&type=chunk) [Mainland China Property Business](index=36&type=section&id=Mainland%20China%20Property%20Business) MTR continues to review strategic options for its Mainland China shopping malls, and is advancing the Hangzhou West Station TOD project and providing TOD consultancy services for Shenzhen Xili Station and Beijing Sub-Centre Station, with the Tianjin Beiyunhe Station mall expected to open after 2026 - Following the exit from Beijing "Ginza Mall" business in May 2024, the company continues to review strategic options for Shenzhen "The V Walk" mall and Tianjin Beiyunhe Station mall[134](index=134&type=chunk) - Preparations for the opening of Tianjin Beiyunhe Station mall are ongoing, with an expected opening **after 2026**[134](index=134&type=chunk) - The Hangzhou West Station TOD project continues to make progress, and TOD consultancy services are being provided for Shenzhen Xili Station and Beijing Sub-Centre Station[135](index=135&type=chunk) [Other Mainland China Operations](index=37&type=section&id=Other%20Mainland%20China%20Operations) MTR continues to advance its station commercial businesses in Chengdu, Zhengzhou, and Xi'an, covering over 700 station shops, while exploring further development opportunities, and has invested in CRRC Guangdong Rolling Stock Co. Ltd., its first railway equipment industry investment in Guangdong Province - Continues to advance station commercial businesses in Chengdu, Zhengzhou, and Xi'an, covering **over 700 station shops**[136](index=136&type=chunk) - Invested in CRRC Guangdong Rolling Stock Co. Ltd., the company's **first railway equipment industry investment** in Guangdong Province[136](index=136&type=chunk) [International Railway Operations](index=37&type=section&id=International%20Railway%20Operations) MTR's railway operations in Melbourne and Sydney, Australia, and Stockholm, Sweden, show stable performance, with the Melbourne Metro Trains franchise expiring in November 2027 and Sydney Metro M1 Southwest section expected to open in 2026, while operating rights for the UK's Elizabeth Line and South Western Railway were transferred in May 2025 - Melbourne Metro Trains network operations are stable, with the franchise expiring in **November 2027**[137](index=137&type=chunk) - Construction for Sydney Metro M1 Northwest and Bankstown Line Southwest sections is ongoing, with an expected opening in **2026**[137](index=137&type=chunk) - Stockholm Metro operations are stable, with the service contract expiring in **November 2025**[138](index=138&type=chunk) - Operating rights for the UK's Elizabeth Line and South Western Railway were transferred to the next operator in **May 2025**[139](index=139&type=chunk) [Growth Outside Hong Kong](index=37&type=section&id=Growth%20Outside%20Hong%20Kong) MTR submitted a bid for the Sydney Metro West project in late 2024, with results expected in H2 2025, and continues to explore growth opportunities in Mainland China and overseas markets, including Belt and Road countries - A bid for the Sydney Metro West project was submitted in late 2024, with the tender results expected to be announced in **H2 2025**[140](index=140&type=chunk) - Continues to explore growth opportunities in Mainland China and overseas markets, including **"Belt and Road" countries**[140](index=140&type=chunk) [Other Businesses](index=37&type=section&id=Other%20Businesses) MTR's other businesses include Ngong Ping 360, Octopus, and MTR Lab, with Ngong Ping 360 revenue increasing 0.8% and 750,000 visitors, benefiting from 11 new "Crystal+ cabins," while Octopus Holdings' profit attributable to the company decreased 5.8% despite strong transaction volumes and growing digital Octopus adoption, and MTR Lab completed its first AI-driven retail tech investment and expanded strategic partnerships in Mainland China and Japan - Ngong Ping 360 revenue increased by **0.8% to HKD 241 million**, with **750,000 visitors**, and **11 new "Crystal+ cabins"** were introduced[141](index=141&type=chunk) - Profit attributable to the company from Octopus Holdings Limited decreased by **5.8% to HKD 212 million**, but daily average transaction volume and value were **15.8 million transactions** and **HKD 335 million**, respectively[142](index=142&type=chunk) - Adoption of digital Octopus showed **strong growth**, with Gen Z users accounting for approximately **one-third** of total Octopus App users[142](index=142&type=chunk) - MTR Lab completed its first investment in AI-driven retail technology, "Weavair," and established strategic partnerships with TusStar and CROSSBIE JAPAN Co. Ltd[144](index=144&type=chunk) [Environmental, Social and Governance](index=38&type=section&id=Environmental,%20Social%20and%20Governance) MTR is committed to good corporate citizenship guided by a robust ESG framework, continuously reducing carbon emissions and acquiring electric vehicles, engaging in volunteer activities, youth employment programs, and art promotion, while upholding strong corporate governance and managing risks through a comprehensive enterprise risk management framework - MTR is guided by a robust Environmental, Social and Governance (ESG) framework, setting **45 key performance indicators** across three objectives: reducing greenhouse gas emissions, promoting social inclusion, and fostering development and opportunities[145](index=145&type=chunk) - To reduce carbon emissions, the company continues to procure electric vehicles, with **ten electric buses** already in passenger service and another **25** to be delivered between 2025 and 2026[146](index=146&type=chunk) - The "Railway People, Railway Heart" volunteer program organized **178 volunteer projects**, with **2,334 volunteer participants**[147](index=147&type=chunk) - The first cohort of the "EmpowerZ" diverse talent youth employment pilot program graduated, and the "'Train' for a Bright Future 2.0" program was launched[147](index=147&type=chunk) - Promotes art appreciation through the **"Art in MTR"** program, hosting exhibitions and performances at stations[148](index=148&type=chunk) - Practices **strong corporate governance** and has a comprehensive enterprise risk management framework, with major risks regularly reviewed[149](index=149&type=chunk)[150](index=150&type=chunk) [Human Resources](index=39&type=section&id=Human%20Resources) As of June 30, 2025, MTR and its subsidiaries employed 18,641 staff in Hong Kong and 12,159 outside Hong Kong, with an additional 16,029 staff in associates and joint ventures, maintaining a stable voluntary turnover rate of 5.1% in Hong Kong, while enhancing its employer brand, offering competitive compensation and development opportunities, and promoting employee well-being - As of June 30, 2025, MTR and its subsidiaries employed **18,641 staff in Hong Kong** and **12,159 staff outside Hong Kong**[151](index=151&type=chunk) - Associates and joint ventures employed a total of **16,029 staff** in Hong Kong and globally[151](index=151&type=chunk) - The voluntary turnover rate for MTR staff in Hong Kong remained **stable at 5.1%**[151](index=151&type=chunk) - The company launched new recruitment visuals and innovative talent acquisition marketing strategies, offering trainee development programs and summer internship programs[151](index=151&type=chunk) - Implemented various well-being and family-friendly initiatives through the Wellness Connect platform to promote employee work-life balance[151](index=151&type=chunk) Financial Performance Review This section provides an in-depth analysis of the Group's consolidated income statement, statement of financial position, cash flow, financing activities, and capital expenditure, highlighting a 6.5% revenue decrease but a 27.5% net profit increase driven by property development, alongside a 9.6% asset growth, reduced leverage, and robust financial capacity for future investments [Consolidated Income Statement Analysis](index=40&type=section&id=Consolidated%20Income%20Statement%20Analysis) For the six months ended June 30, 2025, the Group's total revenue decreased by 6.5% to HKD 27.36 billion, primarily due to reduced Mainland China and international business revenue, and recurring business profit declined 15.7% to HKD 3.39 billion due to higher operating expenses in Hong Kong railway operations, yet net profit attributable to equity holders of the Company increased 27.5% to HKD 7.71 billion, driven by a substantial 218.5% growth in property development profit Consolidated Income Statement Key Financial Indicators (million HKD) | Indicator | 2025 | 2024 | Change (million HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 27,360 | 29,271 | (1,911) | (6.5) | | Recurring Business Profit | 3,391 | 4,024 | (633) | (15.7) | | Property Development Profit (after tax) | 5,542 | 1,740 | 3,802 | 218.5 | | Underlying Business Profit | 8,933 | 5,764 | 3,169 | 55.0 | | Fair Value Measurement of Investment Properties (Loss)/Gain (after tax) | (1,224) | 280 | (1,504) | n.m. | | Net Profit Attributable to Equity Holders of the Company | 7,709 | 6,044 | 1,665 | 27.5 | - The decrease in total revenue was primarily due to reduced revenue from Melbourne railway operations and Sweden operations, offsetting the increase in Hong Kong railway operations revenue[155](index=155&type=chunk) - The decline in recurring business profit was mainly due to a decrease in Hong Kong railway operations EBIT, driven by higher staff costs, inflation, and increased maintenance expenses[156](index=156&type=chunk)[157](index=157&type=chunk) - Hong Kong station commercial business EBIT decreased by **5.2%**, primarily affected by lower advertising business revenue, reduced telecommunications income, and an overall decline in new rental agreements[158](index=158&type=chunk) - Hong Kong property leasing and management business EBIT decreased by **3.2%**, mainly due to cross-boundary consumption and changing spending patterns, with an overall **7.8% decrease** in new mall rental agreements[158](index=158&type=chunk) - Mainland China and international railway, property leasing, and management subsidiary EBIT decreased by **15.8%**, primarily due to operating losses from the initial section of Shenzhen Metro Line 13[158](index=158&type=chunk) - The total recurring EBIT margin slightly decreased by **0.9 percentage points to 15.4%**, mainly due to increased operating costs in Hong Kong operations[161](index=161&type=chunk) - Interest and finance expenses for recurring businesses increased by **22.4% to HKD 633 million**, primarily due to increased loan drawdowns for financing activities[162](index=162&type=chunk) - Property development profit (after tax) increased by **HKD 3.802 billion to HKD 5.542 billion**, mainly from Ho Man Tin Station Phases 1 and 2, and "The Southside" Phases 3 and 5[164](index=164&type=chunk) - Fair value measurement of investment properties resulted in a **loss of HKD 1.224 billion**, including a re-measurement loss of **HKD 2.702 billion** and an initial recognition gain of **HKD 1.478 billion**[166](index=166&type=chunk) [Consolidated Statement of Financial Position Analysis](index=43&type=section&id=Consolidated%20Statement%20of%20Financial%20Position%20Analysis) As of June 30, 2025, the Group's total assets increased 9.6% to HKD 402.60 billion, primarily driven by a significant rise in cash, bank balances, and deposits, and growth in securities investments, while total liabilities increased 5.5% to HKD 191.39 billion due to higher net loan drawdowns, resulting in a 13.5% increase in net assets to HKD 211.21 billion Consolidated Statement of Financial Position Key Changes (million HKD) | Item | June 30, 2025 | December 31, 2024 | Change (million HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Fixed Assets | 241,997 | 243,190 | (1,193) | (0.5) | | Railway Projects Under Construction | 15,287 | 11,375 | 3,912 | 34.4 | | Properties Under Development | 42,628 | 42,300 | 328 | 0.8 | | Securities Investments | 6,693 | 1,952 | 4,741 | 242.9 | | Trade and Other Receivables | 11,506 | 15,780 | (4,274) | (27.1) | | Cash, Bank Balances and Deposits | 56,796 | 27,886 | 28,910 | 103.7 | | **Total Assets** | **402,597** | **367,499** | **35,098** | **9.6** | | Total Loans and Other Liabilities | 92,173 | 77,568 | 14,605 | 18.8 | | Trade and Other Payables | 73,345 | 77,663 | (4,318) | (5.6) | | **Total Liabilities** | **191,390** | **181,366** | **10,024** | **5.5** | | **Net Assets** | **211,207** | **186,133** | **25,074** | **13.5** | | Perpetual Capital Securities | 23,574 | - | 23,574 | n.m. | - The increase in total assets was primarily due to an increase in cash, bank balances, and deposits following the issuance of perpetual capital securities, as well as increases in securities investments and railway projects under construction[168](index=168&type=chunk) - The increase in total liabilities was mainly due to higher net loan drawdowns, partially offset by a decrease in deferred income related to property development projects[169](index=169&type=chunk) [Cash Flow Analysis](index=44&type=section&id=Cash%20Flow%20Analysis) For the six months ended June 30, 2025, net cash from operating activities decreased to HKD 6.48 billion, primarily due to a weaker economic environment, while net cash received from property development was HKD 9.13 billion, capital expenditure amounted to HKD 8.63 billion mainly for Hong Kong railway investments, and net cash from financing activities significantly increased to HKD 28.84 billion, largely from the issuance of perpetual capital securities Cash Flow Key Items (million HKD) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 6,481 | 8,179 | | Net Cash Received From/(Paid For) Property Development | 9,127 | (21) | | Capital Expenditure | (8,632) | (7,571) | | Net Cash Used in Investing Activities | (6,918) | (9,530) | | Net Drawdown of Debt, Net of Lease Rentals and Interest Payments | 10,913 | 10,680 | | Issuance of Perpetual Capital Securities | 23,550 | - | | Dividends Paid to Equity Holders of the Company | (5,541) | - | | Net Cash from Financing Activities | 28,844 | 10,459 | | Net Increase in Cash, Bank Balances and Deposits | 28,910 | 8,891 | - Net cash from operating activities decreased by **HKD 1.698 billion to HKD 6.481 billion**, primarily due to a decline in recurring business profit caused by a weak economic environment[172](index=172&type=chunk) - Net cash received from property development was **HKD 9.127 billion**, mainly from various property development projects including "LOHAS Park," "The Southside," and Ho Man Tin Station[173](index=173&type=chunk) - Capital expenditure amounted to **HKD 8.632 billion**, primarily for investments in existing Hong Kong railway and related operating assets (**HKD 4.560 billion**) and Hong Kong railway extension projects (**HKD 3.838 billion**)[174](index=174&type=chunk) - Net cash from financing activities significantly increased to **HKD 28.844 billion**, mainly from the issuance of perpetual capital securities totaling **HKD 23.550 billion**[171](index=171&type=chunk) - Final dividends for 2024 of **HKD 5.541 billion** were paid[176](index=176&type=chunk) [Financing Activities](index=45&type=section&id=Financing%20Activities) In H1 2025, MTR arranged HKD 52.9 billion in new financing, including medium-term notes, USD public bonds, and its inaugural USD public perpetual capital securities, to bolster financial strength, resulting in a reduced gearing ratio (net debt to equity ratio) of 18.8% and an improved interest coverage ratio of 12.5 times, demonstrating a robust financial position - In H1 2025, **HKD 52.9 billion** in new financing was arranged, including the issuance of **HKD 1.9 billion** in privately placed medium-term notes, **HKD 23.5 billion** equivalent in USD public bonds, and **HKD 23.5 billion** equivalent in USD public perpetual capital securities[178](index=178&type=chunk) - Approximately **HKD 800 million** of new financing was arranged under MTR's "Sustainable Finance Framework," with proceeds to be used for eligible investment projects[178](index=178&type=chunk) - The Group's weighted average cost of interest-bearing borrowings was **3.7%** (annualized), a decrease from 3.8% in the prior year[179](index=179&type=chunk) - The net debt to equity ratio decreased from **31.6%** as of December 31, 2024, to **18.8%** as of June 30, 2025, primarily due to cash raised from the issuance of perpetual capital securities[180](index=180&type=chunk) - The interest coverage ratio improved to **12.5 times**, up from 11.6 times in the prior year[180](index=180&type=chunk) [Capital Expenditure and Investments](index=45&type=section&id=Capital%20Expenditure%20and%20Investments) Total capital expenditure for 2025-2027 is estimated at approximately HKD 90.8 billion, with HKD 5.7 billion related to the signed Northern Link (Phase 1) project agreement, and Hong Kong railway projects will continue to account for the majority of capital expenditure, with the Group possessing ample cash, bank balances, securities investments, and available credit facilities to meet future capital expenditure and investment plans - Total capital expenditure for 2025-2027 is estimated at approximately **HKD 90.8 billion**, of which **HKD 5.7 billion** is related to project costs under the signed Northern Link (Phase 1) project agreement[181](index=181&type=chunk) - Hong Kong railway projects (including maintenance of existing railways and new projects) will continue to account for the **majority of capital expenditure**[181](index=181&type=chunk) - The Group holds **HKD 56.8 billion** in cash, bank balances and deposits, **HKD 5.7 billion** in bank medium-term notes, and **over HKD 26.2 billion** in available committed credit facilities, demonstrating sufficient financial strength[181](index=181&type=chunk) Corporate Governance and Other Information This section confirms the company's compliance with corporate governance codes, details the publication of interim results and reports, specifies the closure of the register of members and record date for dividends, and lists the members of the Board of Directors and Executive Directorate [Corporate Governance](index=22&type=section&id=Corporate%20Governance) For the six months ended June 30, 2025, the Company has complied with the code provisions in Appendix C1 "Corporate Governance Code" of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited - The Company has complied with the code provisions in Appendix C1 "Corporate Governance Code" of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[64](index=64&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=22&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement has been published on the websites of the Company and The Stock Exchange of Hong Kong Limited, and the interim report will be dispatched to shareholders and published on the Company's and HKEX's websites in mid-September 2025 - This interim results announcement has been published on the Company's website **www.mtr.com.hk** and The Stock Exchange of Hong Kong Limited's website[65](index=65&type=chunk) - The interim report will be dispatched to shareholders in **mid-September 2025** and published on the Company's website and the HKEX website[65](index=65&type=chunk) [Closure of Register of Members and Record Date](index=46&type=section&id=Closure%20of%20Register%20of%20Members%20and%20Record%20Date) To determine shareholders' entitlement to the 2025 interim dividend, the Company will suspend registration of members and share transfers from August 29 to September 3, 2025 (both dates inclusive), with the record date set for September 3, 2025 Closure of Register of Members and Record Date | Item | Date | | :--- | :--- | | Latest Time for Lodging Share Transfer Documents for Registration | 4:30 p.m. on August 28, 2025 | | Suspension of Register of Members | August 29, 2025 to September 3, 2025 | | Record Date | September 3, 2025 | [Board of Directors and Executive Directorate Members](index=46&type=section&id=Board%20of%20Directors%20and%20Executive%20Directorate%20Members) This announcement lists the members of the Board of Directors as of the announcement date, including Chairman Dr. Rex Auyeung Pak-kuen and CEO Dr. Jacob Kam Chak-pui, along with independent non-executive directors and non-executive directors, and also lists the members of the Executive Directorate - The Board of Directors includes Chairman Dr. Rex Auyeung Pak-kuen, CEO Dr. Jacob Kam Chak-pui, and several independent non-executive directors and non-executive directors[183](index=183&type=chunk) - The Executive Directorate members include Dr. Jacob Kam

Core Viewpoint - The collaboration between Cheung Kong Property Holdings Limited and MTR Corporation on the "Blue Coast" residential development in South Island, Hong Kong, is nearing completion with the official launch of the Bluestar elevator, indicating readiness for the sale of completed units [1][3]. Group 1: Project Details - "Blue Coast" is currently the only project located above the shopping mall THE SOUTHSIDE in South Island, providing convenient access to public transportation [3]. - The project will soon announce the first price list for completed units, likely including new 2-bedroom and 3-bedroom layouts [3]. - The 3-bedroom unit (G unit, Tower 3) has a usable area of 759 square feet, featuring a living and dining area approximately 18 feet 11 inches long and 10 feet wide, with glass curtain wall corner windows for enhanced natural light [3][5]. - The 2-bedroom unit (F unit, Tower 3) has a usable area of 443 square feet, with a living and dining area approximately 15 feet long and 10 feet wide, also featuring glass curtain wall windows [7][8]. Group 2: Amenities and Features - The kitchens in both unit types are equipped with German brand Leicht cabinets and Gaggenau appliances, including a refrigerator, range hood, gas stove, induction cooktop, steam oven, and washer/dryer [4][5][8]. - The master bedroom in the 3-bedroom unit is spacious, measuring approximately 11 feet 9 inches by 8 feet, with provisions for a walk-in closet [5]. - The project includes high-end amenities such as the "BIOPHILIA REALM" and "Central Clubhouse" for residents, enhancing the overall living experience [10]. Group 3: Market Potential - The "Blue Coast" series offers a total of 1,200 residential units, designed as 2-bedroom and 3 to 4-bedroom apartments, strategically located near traditional luxury residential areas like Deep Water Bay and Repulse Bay [10]. - The seamless connection to THE SOUTHSIDE shopping mall and direct access to the core business district of Admiralty via two MTR stations is expected to boost the local real estate market for rentals and sales [10].

2019年西安地铁总里程只有158公里，到了2024年，地铁里程已突破400公里，跻身全国地铁第十城， 值得注意的是，近期西安地铁和港铁联手合作，消息一出惊起千层浪，一南一北相隔超1400公里的城市，究 竟想要下一盘怎么样的大棋？ 在中国城市交通版图中，西安是一个特殊的存在。 因其地理位置，被网友戏称为"唯一没有民用机场的省会"，殊不知它正以独特的历史底蕴与现代活力，书写 着属于自己的"地下长安"篇章。 从单一骨干线路到"棋盘+环+放射"的立体格局，地铁，正成为这座千年古都焕新发展的"动脉"。 地铁，2025年最难的生意 当前，中国地铁行业普遍陷入"高投入、低回报"的困境。在已经发布2024年财报的28个城市地铁公司中，若 扣除补贴，除福州和上海外，其余26城地铁公司均处于亏损状态。 全国地铁运营里程前十名的城市经营情况 | 城市 | | 归母净利润 政府补助 扣除政府补 | | | --- | --- | --- | --- | | | (亿元) | (亿元) | 助后的利润 | | 北京 | 31.53 | 248.52 | -216.99 | | 上海 | 0.52 | 0.1 | 0.42 | | 广 ...

Forward-looking statements Certain statements contained in this presentation may be viewed as forward- looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of the Company to be materially different from any future performance, financial condition or results of operations implied by such forward-looking statements. Interim Results 2025 Business Review MTR Corpo ...

Core Viewpoint - UBS maintains a "Sell" rating on MTR Corporation (00066) due to unattractive risk/return profile and lowers earnings per share forecasts for 2025 to 2027 by 2% to 12% reflecting higher interest expenses [1] Financial Projections - Target price increased from HKD 21.6 to HKD 24, representing a 30% discount to net asset value per share [1] - Estimated funding gap of HKD 117 billion for MTR from 2025 to 2029 due to rising capital expenditures on new railway projects and increased interest expenses [1] Dividend and Cash Flow Analysis - MTR's dividend yield is 4.7%, compared to an average of 5.4% for leading developers, indicating limited upside for dividends and weak independent credit status [1] - Projected negative free cash flow after dividends for 2025 is HKD -12.98 billion, with further negative projections for 2026 to 2029 of HKD -8.517 billion, HKD -26.369 billion, HKD -34.47 billion, and HKD -35.078 billion respectively [1] - Expected dividend per share for the next two years is HKD 1.31 [1]

FF301 第 1 頁 共 10 頁 v 1.1.1 FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 截至月份: | 2025年7月31日 | 狀態: 新提交 | | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | 公司名稱: | 香港鐵路有限公司 | | | 呈交日期: | 2025年8月5日 | | | I. 法定/註冊股本變動 | 不適用 | | II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00066 | 說明 | 不適用 | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 6,224,823,171 | | 0 | | 6,224,823,171 | | 增加 / 減少 (-) | | | 0 ...

Core Viewpoint - Morgan Stanley has initiated coverage on MTR Corporation (00066) with a target price of HKD 29 and a "Neutral" rating, highlighting the company's unique business model that combines railway operations with real estate development [1] Summary by Relevant Categories Business Model - MTR Corporation utilizes a distinctive business model that integrates railway operations with real estate development, leveraging its transportation infrastructure to unlock real estate investment opportunities [1] Financial Performance - The risk-reward profile for MTR appears balanced, with local railway operations in Hong Kong showing a rebound post-pandemic [1] - However, the company's upside potential is constrained by several factors, including sluggish growth in leasing business and anticipated slowdown in real estate development profits starting in 2027 [1] Capital Expenditure and Profit Outlook - The development of the Northern Link project in Hong Kong is expected to increase capital expenditure requirements [1] - These factors collectively suggest a potential 16% decline in MTR's earnings compound annual growth rate (CAGR) for the fiscal years 2025-2027, which may limit the possibility of significant revaluation of its stock [1] Dividend Expectations - Despite the challenges, Morgan Stanley anticipates that MTR's dividends will remain stable [1]

小摩表示，港铁采用独特的商业模式，将铁路营运与房地产开发相结合，利用其交通基础设施释放房地 产投资机会。目前，港铁的风险回报似乎处于平衡状态，香港本地铁路运营在疫情后反弹的势头已充分 反映。然而，其上行潜力受到以下几个因素的限制：1)租赁业务增长乏力;2) 预计从2027年开始房地产 开发利润将放缓;3) 香港北环线开发项目提供资金导致资本支出需求将增加。 智通财经APP获悉，摩根大通发布研报称，首予港铁公司(00066)目标价29港元和"中性"评级。 这些因素共同导致港铁2025-2027财年的盈利复合或有16%的下降，这可能会限制其估值大幅重估的可 能性。不过，小摩预期股息将保持稳定。 ...

港交所披露数据显示，7月29日共615只港股被沽空，总沽空金额为288.22亿港元。其中沽空金额超1亿 港元的个股有74只，小米集团-W、腾讯控股、药明康德沽空金额位居前三，分别为22.09亿港元、9.55 亿港元、6.98亿港元。 （文章来源：第一财经） 从沽空比率来看，共32只个股沽空比率超30%，深圳高速公路股份、港铁公司、蔚来-SW位居前三，分 别为53.32%、51.83%、45.53%。 从沽空比率偏离幅度来看，共65只个股沽空比率偏离幅度超100%，中国旭阳集团、锅圈、微盟集团位 居前三，分别为403.05%、357.89%、345.55%。 ...

Core Viewpoint - The Hong Kong government has approved the financial arrangements for the first part of the Northern Link project, which aims to enhance transportation efficiency and connectivity in the region, with a target completion date of 2034 or earlier [1][2]. Group 1: Project Overview - The Northern Link main line will connect the existing Tuen Ma Line and East Rail Line, with new stations planned along the route [1]. - The project includes a branch line that will connect to the newly established Huanggang Port station in Shenzhen [1]. Group 2: Financial Aspects - The budget for the first part of the Northern Link project is approximately HKD 31.4 billion, based on prices from July 2025 [2]. - The project aims to significantly reduce travel time from 60-80 minutes to about 12 minutes between Kam Sheung Road and Kwu Tung [2]. Group 3: Strategic Importance - The Hong Kong government emphasizes the strategic value of the Northern Link project, aiming to accelerate its development through innovative planning and the adoption of mainland construction standards [1]. - The project is expected to promote the development of the northern metropolitan area of Hong Kong [2].