PR013/25
6 March 2025
The MTR Corporation announced its 2024 Annual Results today (6 March 2025). The Corporation recorded net profit of approximately HK$15.8 billion in 2024. This is primarily due to the one-off bookings from property development of the railway projects completed in earlier years. The patronage and revenues from station commercial and investment property rentals also recorded year-on-year growth. The Corporation is committed to advancing multiple railway projects that will spur new opportunities for growth, adhering to a forward-looking approach in strategically planning for the HK$100 billion-worth of investment already committed - Think ahead, Stay ahead.
With further recovery in the economy and thanks to continuous effort in service enhancement, total patronage for railway network in Hong Kong exceeded 1.9 billion last year. While patronage is approaching pre-pandemic levels, our network has, in fact, expanded by over 14 km with the opening of the Tuen Ma Line and the East Rail Line Cross-Harbour Extension during pandemic time. The 2024 recurrent business profit showed year-on-year growth, covering domestic service, property rental and management as well as various areas in Mainland China and international businesses. During the year, as the new normal continued to play out and business strived to fully return to pre-pandemic levels, the Corporation remained committed to pursuing innovation to expand its business and enhance its services, leveraging its existing business strength to strive for growth.
The revenue from property development last year was derived from bookings of multiple property projects along the Tseung Kwan O Line and the South Island Line, being railway projects committed and completed in earlier years. Under the "Rail plus Property" model, the property revenue not only serves as a funding source for railway construction but also supports the long-term renewal, maintenance, and repair of railway assets.
Moving forward, the Corporation has entered a new era of railway investment and development, with an estimated investment of HK$100 billion to expand the railway network and build new communities. Construction of the Tung Chung Line Extension, Kwu Tung Station on the East Rail Line, Tuen Mun South Extension, Oyster Bay Station, and Hung Shui Kiu Station on the Tuen Ma Line is well underway. These projects will create jobs and stimulate the local economy during construction and, once completed, connect more communities, enhance travel convenience, and serve as new growth drivers for the Corporation's business. The Corporation will continue to allocate resources for the maintenance, enhancement, and renewal of railway assets, with a total spending exceeding HK$65 billion over five years starting from 2023.
On property development, subject to the construction and sales progress, the Corporation expects to book property development profits from THE SOUTHSIDE Packages 3 and 5, Ho Man Tin Station Packages 1 and 2 and LOHAS Park Package 12 this year. The Corporation will also leverage the strategic location of the malls adjacent to the stations and ensure tenant mix aligning with current trends to drive foot traffic and consumption.
For Mainland China and international business, the Corporation will leverage its railway expertise to pursue development opportunities and broaden our business. The Corporation is extending its station commercial business from Chengdu to Zhengzhou. It will continue to pursue and expand business opportunities overseas.
"MTR Corporation has been rooted in Hong Kong for 45 years. Over the decades, we have accumulated a wealth of experience in railway construction and operation. As we start the new railway development cycle, we will continue to leverage our expertise in harnessing the opportunities and tackling the challenges ahead, mapping our long-term strategies by continuing to ‘think ahead and stay ahead'. The investments in railway infrastructure to build for the future are growth opportunities that will take our business to new levels," said Dr Jacob Kam, Chief Executive Officer of MTR Corporation.
The MTR Board has proposed a final ordinary dividend of HK$0.89 per share, bringing the total ordinary dividend for the year to HK$1.31 per share. (Please refer to the appendix for the Annual Results announcement.)
The Corporation is committed to generating value for our shareholders, including the government. As a caring company, the Corporation also continued to allocate resources to support the community and provide fare concessions. The total contribution in various forms amounted to over HK$15 billion last year.
Looking ahead, the Corporation will continue to uphold its mission to "Keep Cities Moving" and seek to enhance passenger experience and railway service quality through its constant drive for advancement and embracing innovative technology across business areas. The Corporation is now embarking on a new milestone in railway expansion, advancing several new railway projects to "Go Beyond Boundaries", building the future of Hong Kong.
About MTR Corporation
To Keep Cities Moving, MTR makes encounters happen and rendezvous for a more connected tomorrow. As a recognised world-class operator of sustainable rail transport services, we are a leader in safety, reliability, customer service and efficiency.
MTR has extensive end-to-end railway expertise with more than 40 years of railway projects experience from design to planning and construction through to commissioning, maintenance and operations. Going beyond railway delivery and operation, MTR also creates and manages dynamic communities around its network through seamless integration of rail, commercial and property development.
With more than 40,000 dedicated staff*, MTR carries over 13 million passenger journeys worldwide every weekday in Hong Kong, the United Kingdom, Sweden, Australia and Mainland China. Together, we Go Smart and Go Beyond.
For more information about MTR Corporation, please visit www.mtr.com.hk.
*includes our subsidiaries, associates and joint ventures in Hong Kong and worldwide
HIGHLIGHTS
Hong Kong Businesses
- Our recurrent businesses benefited from the continuing recovery in patronage for both Domestic and Cross-boundary services, as well as strong performance from High Speed Rail (Hong Kong Section) ("HSR") service
- Train service delivery and passenger journeys on-time for heavy rail maintained at 99.9% world class level
- Hong Kong property development profit of HK$10.2 billion mainly derived from LOHAS Park Package 11, Ho Man Tin Station Package 1 and THE SOUTHSIDE packages 1, 2, 4, and 5
- The tender of Tung Chung East Station Package 1 Property Development was awarded in December 2024
- Entered into Project Agreement with the Government for Hung Shui Kiu Station
Mainland of China and International Businesses
- City section of Sydney Metro M1 Metro North West and Bankstown Line opened in August 2024
- Initial section of Shenzhen Metro Line 13 Phase 1 opened in December 2024
- Structural works for the shopping mall at Tianjin Beiyunhe Station were completed in December 2024
Outlook
- While our operating results were satisfactory in 2024, much of these profits will be committed to the substantial funding required for the upgrading and renewal of existing lines as well as planning and constructing new railway projects
- Continuing focus on financial prudence: paying attention to cost management, to optimising funding arrangements, and to maintaining the strong balance sheet necessary to help MTR and Hong Kong to grow through new railway infrastructure
- Subject to the progress of construction and sales, we expect to book property development profit from Ho Man Tin Station Package 2, THE SOUTHSIDE Package 3, LOHAS Park Package 12 and to continue to book profit from THE SOUTHSIDE Package 5 and Ho Man Tin Station Package 1
- Depending on market conditions, we anticipate the possible tender of Tung Chung East Station Package 2 and Tuen Mun A16 Station Package 1 in the coming 12 months or so
- Continue to make progress in various railway projects relating to RDS 2014, the Northern Metropolis Development Strategy and the Hong Kong Major Transport Infrastructure Development Blueprint
The Directors of the Company announce the audited results of the Company and its subsidiaries (the "Group") for the year ended 31 December 2024 as follows:
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Notes:
1. AUDITOR'S REPORT
The consolidated financial statements for the year ended 31 December 2024 have been audited in accordance with Hong Kong Standards on Auditing, issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA"), by the Company's auditor, KPMG. Unmodified auditor's report of KPMG is included in the annual report to be sent to shareholders. The consolidated financial statements have also been reviewed by the Company's Audit & Risk Committee.
The financial figures in respect of the Group's consolidated statement of profit or loss, consolidated statement of comprehensive income, consolidated statement of financial position and the related notes thereto for the year ended 31 December 2024, as set out in this preliminary announcement, have been compared by KPMG to the amounts set out in the Group's audited consolidated financial statements for the year and the amounts were found to be in agreement. The work performed by KPMG in this respect did not constitute an audit, review or other assurance engagement in accordance with Hong Kong Standards on Auditing, Hong Kong Standards on Review Engagements or Hong Kong Standards on Assurance Engagements issued by the HKICPA and consequently no assurance has been expressed by KPMG on this announcement.
2. BASIS OF PREPARATION
This preliminary announcement of the Company's annual results has been prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
The financial information relating to the financial years ended 31 December 2024 and 2023 included in this preliminary announcement of the annual results does not constitute the Company's statutory annual consolidated financial statements for those years but is derived from those financial statements. Further information relating to these statutory financial statements required to be disclosed in accordance with section 436 of the Hong Kong Companies Ordinance (Cap. 622) is as follows:
The consolidated financial statements have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards ("HKFRSs") issued by the HKICPA.
The HKICPA has issued a number of amendments to HKFRSs that are first effective for the current accounting period of the Group. None of these have had a material effect on the Group's results and financial position for the current or prior periods. The Group has not applied any new standard or interpretation that is not yet effective for the current accounting period.
For more information, please visit https://doc.irasia.com/listco/hk/mtr/annual/2024/respress.pdf.
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