港铁公司(00066) - 2025 - 中期业绩

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 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] - 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] - 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] - Operating rights for the UK's Elizabeth Line and South Western Railway were transferred to the next operator in May 2025[5] CEO Review and Outlook 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] - 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] - 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] - 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] - 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] - 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] - 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] - 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] - 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] - 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][76] 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 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] - Fair value measurement of investment properties shifted from a gain of HKD 280 million to a loss of HKD 1.224 billion[11] Consolidated Statement of Comprehensive Income 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] - 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] Consolidated Statement of Financial Position 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] - Perpetual capital securities were first recognized as equity, amounting to HKD 23.574 billion[13] 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 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] - 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] - 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] Retained Profits 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 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] Fair Value Measurement of Investment Properties 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] - 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] Income Tax 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] - 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] - The Court of First Instance granted the company leave to appeal on May 27, 2025, with the appeal hearing scheduled for early 2027[26] - 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] 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] Earnings Per Share 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] Segment Information 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][32] 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 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][42] - 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] - 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][47] - 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] - 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] - 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][56] Guangzhou-Shenzhen-Hong Kong Express Rail Link (Hong Kong Section) 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] - 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] - 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][41] - 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] Shatin to Central Link 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] - 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][47] - 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] - 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] - 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][56] Trade and Other Receivables and Payables 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 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] - 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][59] - 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] Purchase or Redemption of Listed Securities 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] - 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] Charges on Group Assets 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] - 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] 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 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] Hong Kong Passenger Transport Services - Railway Operations 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] - 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] - 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] - 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] - The total number of reportable incidents decreased by 20% year-on-year, demonstrating a strong commitment to public and staff safety[87] - The automatic fare collection system upgrade program has installed 1,669 new or retrofitted gates, with replacement works completed at 37 stations[90] - 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] - 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] - 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] - The MTR Mobile app has been upgraded to provide more personalized real-time information and introduced an "e-City Pass" for passenger convenience[96] - Actively integrating advanced technologies such as artificial intelligence and deep learning to enhance operational resilience and create smart mobility solutions[96] Hong Kong Passenger Transport Services - Station Commercial Business 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] - The average occupancy rate for station shops was 98.6%, with new rental agreements seeing a 7.0% decrease[98] - Advertising income decreased by 9.1% to HKD 451 million, affected by economic uncertainty and subdued consumer sentiment[101] - Telecommunications business income decreased by 8.1% to HKD 272 million, mainly due to lower bandwidth services and common system income[102] Property Business 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] - 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] - As of June 30, 2025, MTR manages over 128,000 residential units and over 920,000 square meters of commercial and office space[107] - 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][110][112] - 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] - MTR has 10 residential property projects expected to provide approximately 9,000 units to the housing market in the coming years[114] Hong Kong Network Expansion 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][122] - Tunnel boring for the westbound tunnel of the Tung Chung Line Extension project has commenced, with completion expected by 2029[116] - Bore piling works for the Siu Ho Wan Station project are 50% complete, with the station expected to be completed by 2030[118] - Foundation construction works for the Tuen Mun South Extension project have commenced, with completion expected by 2030[119] - 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] - Detailed design work for the Hung Shui Kiu Station project has commenced, with completion expected by 2030[121] - The Northern Link main line and spur line are targeted to open simultaneously no later than 2034[122] - The company is actively exploring various financing models, including the "Rail plus Property" development model, to promote railway development in Hong Kong[124] Mainland China and International Operations 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] - 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] Mainland China Railway Operations 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] - Construction of the middle section of Beijing Metro Line 17 continues to progress, with an expected opening by the end of 2025[129] - Shenzhen Metro Line 4 operates stably, but its long-term financial viability is affected as fares have not been increased since 2010[130] - 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] - 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][133] Mainland China Property Business 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] - Preparations for the opening of Tianjin Beiyunhe Station mall are ongoing, with an expected opening after 2026[134] - 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] Other Mainland China Operations 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] - Invested in CRRC Guangdong Rolling Stock Co. Ltd., the company's first railway equipment industry investment in Guangdong Province[136] International Railway Operations 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] - Construction for Sydney Metro M1 Northwest and Bankstown Line Southwest sections is ongoing, with an expected opening in 2026[137] - Stockholm Metro operations are stable, with the service contract expiring in November 2025[138] - Operating rights for the UK's Elizabeth Line and South Western Railway were transferred to the next operator in May 2025[139] Growth Outside Hong Kong 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] - Continues to explore growth opportunities in Mainland China and overseas markets, including "Belt and Road" countries[140] Other Businesses 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] - 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] - Adoption of digital Octopus showed strong growth, with Gen Z users accounting for approximately one-third of total Octopus App users[142] - MTR Lab completed its first investment in AI-driven retail technology, "Weavair," and established strategic partnerships with TusStar and CROSSBIE JAPAN Co. Ltd[144] Environmental, Social and Governance 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] - 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] - The "Railway People, Railway Heart" volunteer program organized 178 volunteer projects, with 2,334 volunteer participants[147] - 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] - Promotes art appreciation through the "Art in MTR" program, hosting exhibitions and performances at stations[148] - Practices strong corporate governance and has a comprehensive enterprise risk management framework, with major risks regularly reviewed[149][150] Human Resources 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] - Associates and joint ventures employed a total of 16,029 staff in Hong Kong and globally[151] - The voluntary turnover rate for MTR staff in Hong Kong remained stable at 5.1%[151] - The company launched new recruitment visuals and innovative talent acquisition marketing strategies, offering trainee development programs and summer internship programs[151] - Implemented various well-being and family-friendly initiatives through the Wellness Connect platform to promote employee work-life balance[151] 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 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] - 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][157] - 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] - 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] - 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] - 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] - 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] - 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] - 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] Consolidated Statement of Financial Position Analysis 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] - 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] Cash Flow Analysis 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] - 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] - 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] - 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] - Final dividends for 2024 of HKD 5.541 billion were paid[176] Financing Activities 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] - 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] - The Group's weighted average cost of interest-bearing borrowings was 3.7% (annualized), a decrease from 3.8% in the prior year[179] - 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] - The interest coverage ratio improved to 12.5 times, up from 11.6 times in the prior year[180] Capital Expenditure and Investments 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] - Hong Kong railway projects (including maintenance of existing railways and new projects) will continue to account for the majority of capital expenditure[181] - 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] 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 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] Publication of Interim Results Announcement and Interim Report 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] - The interim report will be dispatched to shareholders in mid-September 2025 and published on the Company's website and the HKEX website[65] Closure of Register of Members and Record Date 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 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] - The Executive Directorate members include Dr. Jacob Kam