MTR INTERIM RESULTS – 30 JUNE 2023
Driving Growth and Expansion: Key Highlights of Hong Kong and International Businesses in 2023
In 2023, Hong Kong’s businesses experienced positive growth and significant developments across various sectors. The removal of anti-pandemic measures and the reopening of rail links with Mainland China contributed to higher patronage, benefiting recurrent businesses such as Cross-boundary and Duty Free. The on-time delivery of train services and passenger journeys maintained a world-class level of 99.9%.
| CONSOLIDATED STATEMENT OF PROFIT OR LOSS (UNAUDITED) | 2023 (HK$’M) | 2022 (HK$’M) | Change (HK$’M) |
|---|---|---|---|
| Revenue from Hong Kong transport operations | 9,342 | 5,815 | 3,527 |
| Revenue from Hong Kong station commercial businesses | 2,415 | 1,481 | 934 |
| Revenue from Hong Kong property rental and management businesses | 2,456 | 2,307 | 149 |
| Revenue from Mainland China and international railway, property rental and management subsidiaries | 13,079 | 13,150 | -71 |
| Revenue from other businesses | 282 | 142 | 140 |
| Revenue from Mainland China property development | 0 | 138 | -138 |
| Staff costs and related expenses | -3,363 | -3,155 | -208 |
| Maintenance and related works | -1,154 | -1,019 | -135 |
| Energy and utilities | -1,175 | -877 | -298 |
| General and administration expenses | -349 | -343 | -6 |
| Stores and spares consumed | -263 | -253 | -10 |
| Railway support services | -154 | -89 | -65 |
| Government rent and rates | -77 | -77 | 0 |
| Other expenses | -127 | -118 | -9 |
| Expenses relating to Hong Kong station commercial businesses | -255 | -244 | -11 |
| Expenses relating to Hong Kong property rental and management businesses | -458 | -434 | -24 |
| Expenses relating to Mainland China and international railway, property rental and management subsidiaries | -12,547 | -12,227 | -320 |
| Expenses relating to other businesses | -240 | -253 | 13 |
| Project study and business development expenses | -156 | -173 | 17 |
| Expenses relating to Mainland China property development | -9 | -89 | 80 |
| Hong Kong property development profit from share of surplus and interest in unsold properties | 783 | 9,277 | -8,494 |
| Gain/(loss) from fair value measurement of investment properties | 1,005 | -2,389 | 3,394 |
| Depreciation and amortisation | -3,046 | -2,773 | -273 |
| Impairment loss | 0 | -962 | 962 |
| Variable annual payment | -1,052 | -198 | -854 |
| Share of profit of associates and joint ventures | 632 | 490 | 142 |
| Interest and finance charges | -589 | -458 | -131 |
| Income tax | -627 | -1,741 | 1,114 |
| Profit for the period | 4,353 | 4,928 | -575 |
The Fare Adjustment Mechanism review, concluded in March 2023, ensured arrangements that would benefit all passengers while maintaining the company’s financial sustainability. Additionally, a comprehensive review of the railway asset management and maintenance regime resulted in significant investments of over HK$65 billion for asset renewal and maintenance over the next five years.
Notable achievements included the successful opening of The Wai, a new shopping mall in Tai Wai, in July 2023. Furthermore, a project agreement was entered into with the government for the Tung Chung Line Extension. These ventures showcase the company’s commitment to expanding its presence and providing enhanced services.
Beyond Hong Kong, the company’s international businesses also made progress. Concessions for Melbourne’s metropolitan train service in Australia and the South Western Railway in the United Kingdom were extended. However, challenges persisted in operational and financial performances concerning Stockholms pendeltåg and Mälartåg regional traffic outlook.
Despite the pandemic mostly subsiding, the company remained cautiously optimistic about its business outlook. Other uncertainties, such as high global inflation and interest rates, required attention. Profit bookings were expected in the second half of 2023 from the LOHAS Park Package 11, subject to construction progress and property buyers’ payment terms.
In the property sector, plans were made to tender out approximately 4,000 units in the next 12 months, with Tung Chung East Station Package 1 being the initial tender. Other projects were being prepared and would be launched based on market conditions, including technical studies, land grants, and statutory procedures.
Additionally, the company continued to advance various new railway projects under the Rail Development Strategy 2014 and supported initiatives outlined in the government’s Northern Metropolis Development Strategy.
Overall, these highlights demonstrate the company’s commitment to growth, sustainability, and providing excellent services both in Hong Kong and internationally.
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