Hong Kong railway and property group MTR (MTR Corporation Limited) reported a sharp rebound in interim profitability, driven by a surge in property development gains that more than offset higher operating costs in its transport divisions.

Financial Highlights (Six Months to 30 June 2026) • Total revenue: HK$26.23 billion, down 4.10% year-on-year (YoY), reflecting the absence of UK and Swedish rail contracts that ended in 2025. • Recurrent business profit attributable to shareholders: HK$3.43 billion, up 1.30% YoY, supported by stronger Chinese Mainland and international contributions despite higher depreciation and variable annual payments in Hong Kong. • Property development profit: HK$12.23 billion, jumping 120.70% YoY, mainly from Tai Wai Station and THE SOUTHSIDE Package 5. • Net profit attributable to shareholders: HK$15.87 billion, more than doubling (+105.90% YoY) owing to the property windfall and a HK$0.21 billion gain from investment-property revaluation versus a HK$1.22 billion loss a year earlier. • Interim dividend: HK$0.42 per share, unchanged from 2025. • Total assets: HK$492.30 billion, up 23.40% versus 31 December 2025. • Net assets: HK$228.46 billion, up 5.60% over six months. • Net debt-to-equity: 21.70%, narrowing 0.80 percentage point from year-end.

Segment Performance • Hong Kong transport operations revenue rose 3.0% to HK$11.85 billion on higher Cross-boundary and High Speed Rail patronage; the segment swung to an EBIT loss of HK$0.14 billion after heavier depreciation and variable annual payments. • Station commercial EBIT slipped 2.40% to HK$1.76 billion amid a 6.70% negative rental reversion on kiosks, though occupancy stayed above 99%. • Property rental and management EBIT eased 3.50% to HK$2.01 billion; mall rentals suffered a 5.50% negative rental reversion because of ongoing northbound spending and cautious retailer sentiment. • Chinese Mainland and international subsidiaries delivered EBIT of HK$0.43 billion, up 5.10% YoY, buoyed by stronger results in Australia.

Operational Metrics • System-wide heavy-rail on-time performance remained at 99.90%. • Overall Hong Kong franchised public transport market share improved to 50.20% (first five months 2026) from 50.00% a year earlier. • Total Hong Kong rail and bus patronage reached 975.40 million, up 1.20% YoY.

Balance Sheet and Liquidity • Cash, bank balances and deposits surged to HK$114.00 billion following HK$56.53 billion of green bond issuances in AUD, HKD and EUR. • Total loans and other obligations increased to HK$170.34 billion; weighted average funding cost fell to 3.50% from 3.70% in 2025. • Interest cover expanded to 34.8 times versus 12.5 times a year earlier.

Capital Investments and Commitments • First-half capital expenditure reached HK$10.50 billion, including HK$5.36 billion for asset upgrades and HK$4.70 billion for new railway projects. • Committed capex for 2026-2028 totals HK$84.80 billion, with 49% earmarked for Hong Kong railway maintenance and renewals and 37% for network expansion. • Outstanding capital commitments stood at HK$114.51 billion, of which HK$43.45 billion relates to ongoing extensions such as Tung Chung Line Extension, Tuen Mun South Extension, Kwu Tung Station, Hung Shui Kiu Station and Oyster Bay Station.

Projects in Progress • Northern Link Part 1, Tung Chung Line Extension, Tuen Mun South Extension, Kwu Tung Station, Hung Shui Kiu Station and Oyster Bay Station are proceeding on schedule, with combined investment budgeted at HK$140 billion. • Kwu Tung Station and Tung Chung Line tunnel breakthroughs achieved; Kwu Tung target completion 2027, Tung Chung Line Extension 2029.

Dividend • An interim dividend of HK$0.42 per share will be paid on 15 September 2026 to shareholders on record as of 2 September 2026, matching last year’s interim payout.

Outlook (Management Commentary) The Board cited modest patronage growth, stabilising advertising and retail markets, and continued cost control as supportive factors for second-half performance, while acknowledging macro-economic and rate-cycle uncertainties. Accelerated investment in AI and technology, alongside disciplined financing through diversified green bonds, aim to sustain network expansion and shareholder returns.