MTR CORPORATION(00066)2022-09-07 08:37Financial Performance - Total revenue for the first half of 2022 was HKD 23 billion, representing a 3.2% increase compared to the previous period[2]. - The company reported a recurring business loss of HKD 700 million, a decline from a recurring profit of HKD 900 million for the same period in 2021[2]. - Net profit attributable to shareholders was HKD 4.7 billion, reflecting a 77.0% increase[2]. - The profit from property development business increased by 78.0% year-on-year to HKD 7.108 billion, while the net profit attributable to shareholders grew by 77.0% to HKD 4.732 billion, equivalent to earnings per share of HKD 0.76[21]. - The company reported a profit of HKD 4,928 million for the period, up 77.1% from HKD 2,782 million in the previous year[111]. - The company’s net profit attributable to shareholders was HKD 4,732 million, a 77.0% increase from HKD 2,673 million year-on-year[111]. - The company’s regular business reported a loss of HKD 678 million, contrasting with a profit of HKD 912 million in the previous year[111]. - The company incurred a loss from fair value measurement of investment properties amounting to HKD 2,389 million, compared to a loss of HKD 1,307 million in the previous year[148]. Dividends and Shareholder Returns - Interim ordinary dividend per share was HKD 0.42, up from HKD 0.25 in 2021[2]. - The interim dividend declared was HKD 0.42 per share, compared to HKD 0.25 per share in the same period last year[21]. - The company declared an interim dividend of HKD 6,317 million for the year ended December 31, 2021, which was paid out during the reporting period[152]. Property Development - Property development profit amounted to HKD 7.8 billion[2]. - The company recorded a profit of HKD 7.747 billion from property development after tax in the first half of 2022, mainly from the 10th phase of "Sunrise" and the first and second phases of "South Island"[55]. - The profit from property development attributable to the company was HKD 9,161 million for the six months ended June 30, 2022, compared to HKD 3,635 million for the same period in 2021, representing an increase of 152%[164]. Operational Highlights - The East Rail Line cross-harbour section officially commenced service in May 2022, marking the completion of the long-awaited Sha Tin to Central Link project[18]. - The company achieved a train service punctuality rate of 99.9% in its heavy rail network during the first half of the year[31]. - The company has ordered 93 new eight-car heavy rail trains and 40 new light rail vehicles, with 13 heavy rail trains and 22 light rail vehicles already delivered as of June 30, 2022[45]. - The company maintained a market share of 47.2% in the public transport sector in Hong Kong for the first five months of 2022, up from 46.2% in the same period of 2021[39]. Challenges and Risks - The ongoing global supply chain disruptions and inflationary pressures have posed significant challenges to the macroeconomic environment[16]. - The company faced significant external challenges, including rising global inflation and supply chain disruptions, impacting future business outlook[29]. - The company anticipates that rental income from station businesses and properties will continue to be affected by declining new rents and rent concessions for the next six months[108]. Sustainability and Governance - The company is committed to achieving carbon neutrality by 2050 and has set a science-based target for reducing emissions by 2030[23]. - The company aims to drive sustainable development in the communities where it operates through its long-term environmental, social, and governance strategies[17]. - The company is committed to maintaining a minimum of 20% female representation on its board immediately, aiming for 25% by 2025[25]. - The company has established a joint laboratory with Hong Kong University of Science and Technology to research smart community and smart travel solutions[106]. Infrastructure and Expansion - The company continues to push forward with new railway projects to enhance local transportation links and promote economic growth[29]. - The company is actively exploring collaboration opportunities through its new subsidiary, MTR Lab Company Limited, to drive smart and sustainable urban development[31]. - The company is expanding its property portfolio with new shopping malls, including "The Wai" at Tai Wai Station, set to open in mid-2023, and "THE SOUTHSIDE" at Wong Chuk Hang Station, expected in the second half of 2023, adding approximately 107,620 square meters of total floor area, which represents 30% of the current retail property portfolio[63]. Financial Position - Total assets reached HKD 292.3 billion, a slight increase of 0.1% compared to December 31, 2021[2]. - The total debt decreased by 10.2% to HKD 39.29 billion, while the weighted average cost of borrowings remained stable at 2.2%[92]. - The net debt to equity ratio improved to 12.7%, down from 18.1% as of December 31, 2021[93]. - The company’s total equity attributable to shareholders was HKD 180,037 million, an increase from HKD 176,981 million as of December 31, 2021, reflecting a growth of approximately 1.2%[152]. Employee Engagement and Training - The company provided an average of 2.4 days of training per employee in Hong Kong during the first half of the year[105]. - The employee engagement survey conducted in December 2021 had a participation rate of 79%[105]. - As of June 30, 2022, the company employed 16,848 and 15,229 staff in Hong Kong and outside Hong Kong, respectively, with a voluntary turnover rate of 6.6% among Hong Kong employees[104].