MTR Corporation Limited

PR049/24
10 August 2024

The MTR Corporation announced the 2024 Interim Results today (15 August 2024). In the first half of the year, the Corporation recorded underlying business profit of approximately HK$5.8 billion. Against the lower base figure during the initial stages of COVID recovery in 2023, this growth is attributable to the year-on-year growth in patronage, revenue from station retail, property rental and bookings from property development. During the period, the Corporation has been advancing various railway extension projects in Hong Kong, utilising part of the property revenue from the "Rail plus Property" to finance the railway construction and build the communities. In addition to the ongoing asset renewal works in recent years, the Corporation will devote more than HK$100 billion in the next decade to invest in Hong Kong and contribute to the city's development.

After the full resumption of cross-boundary travel early last year, the economy has been gradually returning to normalcy. However, the ongoing uncertainties in the global economy and the evolving post-pandemic travel and consumption trends continue to impact business performance. Although total local patronage exceeded 950 million during the first half of this year, our railway patronage has not returned to pre-pandemic levels.

Regarding new railway projects, construction works for the Tung Chung Line Extension, Kwu Tung Station on the East Rail Line, Tuen Mun South Extension and Oyster Bay Station have commenced since mid-last year. The advance works of Hung Shui Kiu Station on the Tuen Ma Line commenced this year while the Northern Link has been gazetted. The projects, which total over HK$100 billion, will benefit various sectors from project planning, design, construction to various associated industries and their employment.

In the area of property, subject to the construction and sales progress, the Corporation expects to book property development profits from THE SOUTHSIDE Packages 4 and 5, Ho Man Tin Station Packages 1 and 2, and LOHAS Park Package 11.

In our Mainland China and overseas businesses, the remaining sections of Beijing Metro Line 17 are under construction and the initial section of the Shenzhen Metro Line 13 Phase 1 project is planned to open within this year. The Corporation also looks forward to the opening of the City Section of the Sydney Metro City and Southwest Line and will continue to pursue development opportunities in Mainland China and overseas.

"This year marks the 45th anniversary of the commencement of MTR service. Throughout these years, we achieved numerous important milestones and have expanded our services to all of the 18 districts to support the development of Hong Kong. Every day, our very committed teams provide highly efficient, safe and quality railway service to keep our cities moving, serving and connecting the communities," said Dr Jacob Kam, Chief Executive Officer of MTR Corporation.

"As we embarked on a new phase of railway projects development, our existing network has also entered the cycle of major asset renewal. We shall actively explore the use of innovation and technology to raise our competitiveness. At the same time, through effective management of investment and programmes, MTR will continue to contribute to strengthening Hong Kong's strategic positioning and to keep cities moving," he added.

The MTR Board has declared an interim ordinary dividend of HK$0.42 per share. (Please refer to the appendix for the Interim Results announcement.)

Moving forward, the Corporation remains committed to prudent financial management and cost control while pursuing our diversified business development as well as building railways and communities for Hong Kong. The Corporation will continue its efforts in asset renewal to provide world-class sustainable railway service and to "Go Smart Go Beyond" with the community.

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 45 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 50,000 dedicated staff*, MTR carries over 10 million passenger journeys worldwide every weekday in Hong Kong, Mainland China, Australia, the United Kingdom and Sweden. 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
- HSR overnight sleeper train services connecting Hong Kong with Beijing and Shanghai successfully launched in June 2024
- Hong Kong property development profit of HK$1.7 billion mainly derived from SOUTHLAND (THE SOUTHSIDE Package 1), La Marina (THE SOUTHSIDE Package 2) and Villa Garda (LOHAS Park Package 11)
- Full-scale soft opening of our lifestyle destination mall located alongside Wong Chuk Hang Station, THE SOUTHSIDE, in June 2024

Mainland China and International Businesses
- Concession of the Melbourne's metropolitan train service extended to November 2027
- Divestment of MTRX, serving the intercity service between Stockholm and Gothenburg, completed in May 2024
- Operational handovers to the new operators for Stockholms pendeltåg and Mälartåg services completed in March 2024 and June 2024 respectively, following the agreement to early terminate these two concessions

Outlook
- While our recurrent revenue and profit continue to improve, the Corporation needs to proceed cautiously, particularly when the global economy remains volatile due to the challenges and uncertainties ahead. The Corporation will continue practising prudent financial management and emphasising operational excellence and efficiency through innovation
- Subject to the progress of construction and sales, we expect booking property development profit from La Montagne (THE SOUTHSIDE Package 4), THE SOUTHSIDE Package 5, ONMANTIN (Ho Man Tin Station Package 1), IN ONE (Ho Man Tin Station Package 2) and Villa Garda (LOHAS Park Package 11) in the second half of 2024
- Depending on market conditions, we anticipate the possible tendering of Tung Chung East Station Package 1 potentially within the next 12 months
- Continue to make progress in various new railway projects under RDS 2014 and assist on initiatives planned under Hong Kong Major Transport Infrastructure Development Blueprint
- Opening of the City section of Sydney Metro City & Southwest in the final preparation stage - Opening of the initial section of Shenzhen Metro Line 13 Phase 1 project planned within 2024

The Directors of the Company announce the unaudited interim results of the Company and its subsidiaries ("the Group") for the six months ended 30 June 2024 as follows:

Notes:

1. REVIEW OF INTERIM FINANCIAL REPORT

The interim results set out in this preliminary announcement do not constitute the Group's interim financial report for the six months ended 30 June 2024 but are extracted from that interim financial report.

The interim financial report for the six months ended 30 June 2024 is unaudited, but has been reviewed by the Company's auditor, KPMG, in accordance with Hong Kong Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA"). The unmodified review report of KPMG is included in the interim report to be sent to shareholders. The interim financial report has also been reviewed by the Company's Audit & Risk Committee.

2. BASIS OF PREPARATION

This preliminary announcement of the Company's interim 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 year ended 31 December 2023 that is included in this preliminary announcement of the interim results as comparative information does not constitute the Company's statutory annual consolidated financial statements for that financial year 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 Company has delivered the financial statements for the year ended 31 December 2023 to the Registrar of Companies in accordance with section 662(3) of, and Part 3 of Schedule 6 to, the Companies Ordinance.


• The Company's auditor has reported on the consolidated financial statements for the year ended 31 December 2023. The auditor's report was unqualified; did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying its report; and did not contain a statement under sections 406(2), 407(2) or (3) of the Companies Ordinance.

The 2024 unaudited interim financial report should be read in conjunction with the 2023 annual financial statements.

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 have been prepared or presented in the interim financial report. The Group has not applied any new standard or interpretation that is not yet effective for the current accounting period.

The accounting policies adopted for the preparation of the interim financial report are the same as those adopted in the preparation of the 2023 annual financial statements.

For more information, please visit http://doc.irasia.com/listco/hk/mtr/interim/2024/intpress.pdf.

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