MTR CORPORATION(00066)2024-08-15 08:30Financial Performance - Total revenue for the six months ended June 30, 2024, was HKD 29,271 million, representing a 6.2% increase from HKD 27,574 million in the same period of 2023[3] - Regular business profit increased by 66.3% to HKD 4,024 million, up from HKD 2,420 million year-on-year[3] - The company reported a net profit attributable to shareholders of HKD 6,044 million, a 44.7% increase from HKD 4,178 million in the previous year[3] - Basic earnings per share increased to HKD 0.97, up from HKD 0.67 year-on-year[9] - The profit for the six months ended June 30, 2024, was HKD 6,144 million, an increase of 41.2% compared to HKD 4,353 million for the same period in 2023[10] - Total comprehensive income for the period was HKD 5,755 million, up 60.5% from HKD 3,586 million in the previous year[10] - The profit attributable to shareholders for the six months ended June 30, 2024, was HKD 5,662 million, compared to HKD 3,415 million in 2023, representing a 66.0% increase[10] - The profit from property development in Hong Kong for the six months ended June 30, 2024, was HKD 1,722 million, a significant increase from HKD 712 million in the same period of 2023[15] - The company reported a pre-tax profit from Hong Kong property development of HKD 2,024 million for the six months ended June 30, 2024, compared to HKD 783 million in 2023[15] - The company reported a profit attributable to shareholders from core operations of HKD 5,764 million, up from HKD 3,152 million, indicating an increase of 83%[50] Property Development - Property development profit reached HKD 1,740 million, a significant increase of 137.7% compared to HKD 732 million in the previous year[3] - The Hong Kong property development profit was primarily driven by projects such as "Jinhuan" and "Yanghai"[4] - The company anticipates property development profits from several projects in the second half of 2024, depending on construction and sales progress[6] - The profit attributable to shareholders from property development was HKD 1.74 billion for the six months ending June 30, 2024, compared to HKD 0.732 billion in 2023, indicating a significant increase[26] - The property development segment recorded a post-tax profit of HKD 1.722 billion in the first half of 2024, primarily from projects "Jinhuan," "Yanghai," and "Kaibofeng"[75] - As of June 30, 2024, the company had 14 residential property development projects in progress, expected to provide approximately 12,000 units to the Hong Kong housing market[52] Dividends - The company declared an interim dividend of HKD 0.42 per share[3] - The interim ordinary dividend declared per share for the six months ended June 30, 2024, was HKD 0.42, consistent with the dividend declared for the same period in 2023[22] - The company declared an interim dividend of HKD 0.42 per share for the six months ending June 30, 2024, with the aim of maintaining or gradually increasing the dividend each year[23] Assets and Liabilities - The company's cash and bank balances increased to HKD 31,266 million as of June 30, 2024, from HKD 22,375 million at the end of 2023, reflecting a growth of 39.8%[11] - The total assets of the company as of June 30, 2024, were HKD 361,017 million, compared to HKD 346,426 million at the end of 2023, indicating a 4.2% increase[11] - The company's liabilities decreased slightly to HKD 182,064 million as of June 30, 2024, from HKD 167,570 million at the end of 2023[11] - Total liabilities rose by 8.6% to HKD 182.064 billion, mainly due to net loan withdrawals and the provision for the 2023 final dividend[120] Taxation - The current tax provision for Hong Kong profits tax for the six months ended June 30, 2024, was HKD 851 million, compared to HKD 525 million for the same period in 2023, representing a 62% increase[18] - Income tax expense increased by HKD 237 million or 41.7% to HKD 806 million, primarily due to the rise in regular business profit[113] Operational Highlights - The company is actively pursuing new railway infrastructure projects to enhance connectivity and service reliability in Hong Kong[51] - The company is currently reviewing the concerns raised by the Hong Kong government regarding its performance obligations under the commissioning agreement[30] - The company is exploring opportunities to develop additional data centers while continuing to operate its data center business in Tseung Kwan O[70] - The company is committed to communicating with the Hong Kong government after completing its review of the raised concerns[30] Challenges and Risks - The company is facing challenges from macroeconomic uncertainties and geopolitical risks, necessitating prudent financial management and innovative operational strategies[51] - The company has acknowledged the need for professional project management skills and oversight, which were found lacking in the investigation report[39] Environmental and Social Governance - The company has set 43 key performance indicators related to environmental, social, and governance (ESG) standards for 2024, focusing on reducing greenhouse gas emissions and promoting social inclusion[100] - The first electric bus was put into service in June 2024, with plans to purchase 35 more to upgrade the fleet and reduce carbon emissions[101] Revenue from Operations - Total revenue for Hong Kong's railway operations reached HKD 11.138 billion for the six months ended June 30, 2024, representing a 19.2% increase compared to HKD 9.342 billion in the same period last year[59] - Revenue from the Hong Kong passenger service segment was HKD 13.78 billion for the six months ending June 30, 2024, compared to HKD 11.76 billion in 2023, marking an increase of 17.2%[26] - Total revenue from station business activities increased by 9.2% year-on-year to HKD 2.638 billion for the first half of 2024[69] Future Projects - The East Rail Line extension project is expected to be completed by 2029, enhancing transportation links in the North Lantau area[78] - The Tuen Mun South Extension project is projected to be completed by 2030, extending the Tuen Ma Line by approximately 2.4 kilometers[79] - The company is also working on the construction of the Siu Ho Wan Station, expected to be completed by 2030, to improve transportation links in North Lantau[81]