Hong Kong’s MTR Corp net profit falls 6.9% amid weaker mainland China revenue
Profit drops to HK$14.68 billion with rail giant citing lower mainland and overseas project contributions
The company recorded a property development profit of HK$11.08 billion last year, up from HK$10.27 billion in 2024, with income generated from projects including The Southside, Lohas Park and Ho Man Tin station.
But the MTR Corp warned on Thursday that a substantial portion of its earnings would be allocated to asset maintenance, upgrades, replacements and the expansion of the city’s extensive rail network, which it said posed “considerable financial challenges”.
“While the macroeconomic situation remains challenging – particularly in relation to consumer behaviour and spending – the improving economic landscape and property sector suggest that we may begin to enjoy a somewhat healthier operating environment,” CEO Jeny Yeung Mei-chun said in the company’s first results statement since she was promoted on January 1.
“As post-pandemic changes have become the ‘new normal’, the corporation will continue to pursue innovation, strengthen revenue from recurrent businesses and enhance business sustainability.”
The rail giant also suffered an unexpected financial hit due to a HK$380 million impairment loss related to its Hangzhou Metro Line 1, which was affected by slow user growth and the lack of a patronage protection mechanism.