MTR CORPORATION(HK:00066)2021-04-15 08:41Sustainable Development and Corporate Strategy - The MTR Corporation aims to integrate sustainable development with environmental, social, and governance principles into its business operations to create value for all stakeholders[12]. - The new corporate strategy "Transforming the Future" was approved by the board in June 2020, focusing on business, environmental, social, and governance goals for sustainable development[37]. - The company is committed to contributing to climate change mitigation and creating opportunities for personal and community development[37]. - The company is focused on reducing greenhouse gas emissions across all its operations while expanding its network and creating opportunities for employees and the community[39]. - The company aims to reduce carbon emissions, promote social inclusion, and create opportunities for the community while ensuring business sustainability[48]. - The company is committed to sustainable financial goals and accountability, focusing on long-term value creation for shareholders and stakeholders[48]. Financial Performance - Total revenue for 2020 was HKD 42,541 million, a decrease of 21.9% compared to HKD 54,504 million in 2019[27]. - The company reported a net loss of HKD 4,821 million for the year, compared to a profit of HKD 12,092 million in 2019[27]. - Regular business revenue from Hong Kong passenger operations was HKD 11,896 million, down 40.3% from HKD 19,938 million in 2019[27]. - The company incurred a loss of HKD 9,190 million from the revaluation of investment properties[27]. - The company reported a net loss attributable to shareholders of HKD 48.09 billion for 2020, translating to a loss per share of HKD 0.78, a significant decline due to the impact of the COVID-19 pandemic[39]. - Revenue from regular operations decreased by 58.5% to HKD 43.81 billion compared to the previous year, with a 1.3% reduction in profit from property development to HKD 55.07 billion[39]. Impact of COVID-19 - In 2020, MTR Corporation faced significant challenges due to a sharp decline in passenger volume and reduced foot traffic in malls and station shops, impacting multiple revenue streams[36]. - The past year was one of the most challenging in the company's history due to the COVID-19 pandemic, impacting operations and business significantly[46]. - The COVID-19 pandemic significantly impacted the company's recurring business, with passenger volume dropping drastically and retail operations in malls, duty-free shops, and advertising severely affected[105]. - The company anticipates fluctuations in passenger demand and business revenue in 2021 due to the ongoing impact of the COVID-19 pandemic[195]. Operational Performance - The company is committed to maintaining high operational service levels while ensuring the well-being of passengers and staff during the pandemic[6]. - The company achieved a 99.9% punctuality rate for train services during the year[50]. - The number of reportable incidents per million passenger journeys decreased to 0.58 in 2020, a 45% reduction compared to 2019[104]. - The company maintained a punctuality rate of 99.9% for passenger journeys, surpassing the customer service goal of 99.0%[129]. Property Development and Management - MTR Corporation is continuing to promote over 23,000 residential units and two new shopping mall projects[19]. - The company is developing approximately 20,000 residential units at the Siu Ho Wan Depot site, with about half designated for subsidized sale units, along with community facilities and a 30,000 square meter shopping mall[73]. - The property development segment recorded a profit of HKD 5.442 billion, primarily from the earnings of the sixth phase of "Sunrise Canopy" and the sale of inventory units[162]. - The company continues to expand its international business, including projects in the Greater Bay Area and other regions in mainland China, enhancing its revenue sources[39]. Innovation and Technology - The company emphasizes the importance of innovation and technology in its corporate strategy to enhance customer experience and operational efficiency[13]. - The company is leveraging new technologies and smart travel initiatives to enhance customer experience, including QR code ticketing and expanded Wi-Fi coverage[37]. - The MTR Mobile app was enhanced to provide better customer experience and increase the reliability of railway services[50]. - The company introduced five AI-equipped "smart apprentice" robots at Kai Tak Station in Q3 2020 to enhance cleaning, inspection, and customer relations[136]. Community Engagement and Support - Over 16,900 free tickets were provided to healthcare workers since March 2020, along with donations of 200 tablets to low-income families for online learning[40]. - The company conducted 64 volunteer activities in 2020, accumulating a total of 6,344 volunteer hours to support disadvantaged families[41]. - The company has launched a series of support measures for the community and local businesses in response to the challenges posed by the pandemic[48]. - The company provided HKD 1.7 billion in fare concessions for the elderly, children, students, and disabled individuals[125]. Awards and Recognition - The company has received multiple awards, including the Hong Kong Service Award 2020 for "Public Transport Award" and the Hong Kong Power Brand Award for Market Leader 2019/2020[22][24]. - The company received multiple awards for its commitment to community service and sustainability, including the "Social Sustainability" and "Green Sustainability" awards at the Bay Area Corporate Sustainability Awards 2020[41].