BUSINESS REVIEW HONG KONG PROPERTY AND OTHER BUSINESSES
Over 18,000 residential units under property packages tendered
managing over 96,000 residential units 13 shopping malls in our portfolio
58 MTR Corporation Our Aims and Achievements We aim to be an industry leader in creating integrated communities for Hong Kong citizens. The route to success is the creation of sustainable communities through developing sites along our rail network and providing excellent service as manager of these developments. This relies on expertise that covers all aspects of property development and management, together with strong community engagement. In 2017, two property development packages were awarded, Wong Chuk Hang Package 1 and 2. As agent for the relevant subsidiary of KCRC, we awarded Kam Sheung Road Station Package 1. We continue to look for new development opportunities along our railway network that would increase housing supply. Our property management business continued to win awards. Work pressed ahead on the major expansion of our investment properties portfolio, with Maritime Square 2 and the seventh and eighth floors of Telford Plaza II opened during the year.
Our Challenges Property Rental Property Management • Expanding our investment properties portfolio • Statutory changes will bring opportunities and without affecting existing railway operations and challenges to the residential property management new railway projects industry in Hong Kong, ranging from licensing to procurement and maintenance • Change in customer behaviour and retail space demand due to development of e-commerce Property Development • The market is vulnerable to potential interest rate rises and global capital market fluctuations
Our Strategies Property Safety • Promote green projects with greater energy • Safety at our construction sites, investment and efficiency to foster health and sustainability in our managed properties and adjoining railway facilities managed properties is our top priority Property Development Property Rental • Optimise the integration between our property • Sustain the growth in profit and capital value in our developments and the railway network, as well as investment properties portfolio in Hong Kong other modes of transport
• Maintain the value of our investment properties • Expand, through seeking the rezoning of feasible portfolio through optimising our shopping malls, existing railway sites and through applying the while achieving 34% growth in attributable GFA by proven “Rail plus Property” integrated development adding new high quality retail space model to potential new rail projects under RDS2014
• Develop sustainable and innovative strategies to • Deliver property developments awarded to a high combat the impact of e-commerce standard, on time and within budget Property Management • Pursue continuous improvement in our standards • Enhance our property management service so that through innovation and capturing new development we meet or exceed customer requirements and opportunities expectations
Annual Report 2017 59 BUSINESS REVIEW HONG KONG PROPERTY AND OTHER BUSINESSES
Property Rental and Management
EBITDA HK$4,098m 4.3%
EBIT HK$4,082m 4.3%
Property Development Profit
HK$1,097m
60 MTR Corporation summarised asfollows: The financialperformanceofourHongKongpropertyrentalandmanagementbusinessesis FINANCIAL PERFORMANCE space). In the fourth quarter of 2017, the second phase space). Inthefourthquarterof2017, thesecondphase added another12,100squaremetresGFAofnew known astheMaritimeSquareextension)(which in December2017,ofMaritimeSquare2(formerly 3,400 squaremetresofgrossfloorarea(“GFA”))and, converted retailspaceatTelfordPlazaII(whichadded in lettableareawiththeopening,July2017,of for otheruse.Ourretailpropertiessawanincrease area ofofficesand17,764squaremetresproperty properties, 39,410squaremetresoflettablefloor 218,251 squaremetresoflettablefloorarearetail share ofinvestmentpropertiesinHongKongwas As at31December2017,theCompany’sattributable Finance Centrewere100%let. and theCompany’s18floorsinTwoInternational December 2017,ourshoppingmallsinHongKong Kong recordeda1.7%fallduringtheyear.Asat31 reversion inourshoppingmallportfolioHong in accordancewithexistingleaseagreements.Rental 3.5% in2017.Thiswasmainlyduetorentalincreases Hong Kongpropertyrentalrevenueincreasedby PROPERTY RENTAL Revenue fromPropertyRental Hong KongPropertyRentaland In HK$million Revenue fromPropertyManagement Total Revenue Operating profitbeforedepreciation,amortisationand Operating profitbeforeinterestandfinancecharges EBITDA Margin(in%) EBIT Margin(in%) variable annualpayment(“EBITDA”) after variableannualpayment(“EBIT”) Management Businesses
Awards HongKong2017. at theRoyalInstitutionofCharteredSurveyors(RICS) Excellence” intheRetailTeamofYearCategory revamp project,ParadiseMallwonthe“Certificateof & Commercial”.Inrecognitionofitssuccessful in thecategoryof“PropertyManagement–Industrial Plus Award2017”fromCLPPowerHongKongLimited Economic Times.TelfordPlazareceivedthe“Green Shopping MallAward2016/17”fromHongKong News. Elementsalsoreceivedthe“MyFavourite “Best MallAwards”presentedbyNextMediaAction Week Magazine;bothmallswerealsoawardeesofthe Hong KongServiceAwards2017organisedbyEast and the“ExcellenceServiceAward”respectivelyat received the“ShoppingMallAwardforWarmService” of awardsintheyear.ElementsandTelfordPlaza Our retailportfolioagaingarneredalargenumber opened inParadiseMall. of the“sportsandwellbeing”zonewasprogressively Year ended31December 83.6% 83.3% 4,608 4,900 4,098 4,082 2017 292 82.9% 82.5% 4,451 4,741 3,930 3,912 2016 290 Annual Report 2017 Inc./(Dec.) % 0.7% pt. 0.8% pt. 3.5 0.7 3.4 4.3 4.3 61
Financials and Other Information Corporate Governance Business Review and Analysis Overview BUSINESS REVIEW HONG KONG PROPERTY AND OTHER BUSINESSES
Investment Property Portfolio in Hong Kong (as at 31 December 2017)
Company’s Lettable floor No. of parking ownership Location Type area (sq. m.) spaces interest Telford Plaza I, Kowloon Bay, Kowloon Shopping Centre 39,305 – 100% Car park – 993 100% Telford Plaza II 7-8/F, Kowloon Bay, Kowloon Shopping Centre 2,397 – 100% Telford Plaza II 3-6/F, Kowloon Bay, Kowloon Shopping Centre 19,063 – 50% Car park – 136 50% Luk Yeung Galleria, Tsuen Wan, New Territories Shopping Centre 11,094 – 100% Car park – 651 100% Paradise Mall, Heng Fa Chuen, Hong Kong Shopping Centre 15,353 – 100% Wet Market 1,216 – 100% Kindergarten 2,497 – 100% Car park – 415 100% Maritime Square 1, Tsing Yi Shopping Centre 29,161 – 100% Kindergarten 920 – 100% Car park – 220 100% Motorcycle park – 50 100% Maritime Square 2, Tsing Yi Shopping Centre 6,448 – 100% Car park – 65 100% Motorcycle park – 21 100% The Lane, Hang Hau Shopping Centre 2,629 – 100% Car park – 16 100% Motorcycle park – 1 100% PopCorn 2, Tseung Kwan O Shopping Centre 8,456 – 70% Car park – 50 70% PopCorn 1, Tseung Kwan O Shopping Centre 12,173 – 50% Car park – 115 50% Motorcycle park – 16 50% G/F, No. 308 Nathan Road, Kowloon Shop Unit 70 – 100% G/F, No. 783 Nathan Road, Kowloon Shop Unit 36 – 100% New Kwai Fong Gardens, Kwai Chung, New Territories Kindergarten 540 – 100% Car park – 126 100% International Finance Centre (“ifc”), Central, Hong Kong – Two ifc Office 39,410 – 100% – One and Two ifc Car park – 1,308 51% Phase I, Carpark Building, Kornhill, Quarry Bay, Hong Kong Car park – 292 100% Roof Advertising Signboard, Admiralty Centre, Advertising signboard – – 100% No. 18 Harcourt Road, Hong Kong Ten Shop Units, First Floor Podium, Admiralty Centre, Shop unit 286 – 50% No. 18 Harcourt Road, Hong Kong Olympian City One, Tai Kok Tsui, Kowloon Indoor sports hall 13,219 – 100% Olympian City Two, Tai Kok Tsui, Kowloon Shop unit 1,096 – 100% Choi Hung Park & Ride Public Car Park, Car park – 54 100% No. 8 Clear Water Bay Road, Choi Hung, Kowloon Motorcycle Park – 10 100% Park & Ride – 450 100% Elements, No. 1 Austin Road West, Kowloon Shopping Centre 45,800 – 81% Car park – 898 81% Cross Border Coach Terminus, No. 1 Austin Road West, Kowloon Coach terminus 5,113 – 100% Kindergarten, No. 1 Austin Road West, Kowloon Kindergarten 1,045 – 81% Plaza Ascot, Fo Tan Shopping Centre 7,720 – 100% Royal Ascot, Fo Tan Residential 2,784 – 100% Car park – 20 100% Ocean Walk, Tuen Mun Shopping Centre 6,083 – 100% Car park – 32 100% Sun Tuen Mun Shopping Centre, Tuen Mun Shopping Centre 9,022 – 100% Car park – 421 100%
62 MTR Corporation Properties heldforsale(asat31December2017) • • • • • • • All propertiesareheldbytheCompanyanditssubsidiariesunderGovernmentLeasesforover 50 yearsexceptfor: Investment PropertyPortfolioinHongKong(asat31December2017)(continued) *** ** * The Arch,No.1AustinRoadWest,Kowloon Bank ofChinaCentre,No.11HoiFaiRoad,Kowloon Hemera, LOHASPark,TseungKwanO Festival City,No.1MeiTinRoad,Shatin Lake Silver,No.599SaiShaRoad,Shatin The Palazzo,No.28LokKingStreet,Shatin Harbour Green,No.8ShamMongRoad,Kowloon The Grandiose,No.9TongChunStreet,TseungKwanO Residence Oasis,No.15PuiShingRoad,HangHau,TseungKwanO The Riverpark,No.8CheKungMiuRoad,Shatin Location Olympian CityOne,No.11HoiFaiRoad,Kowloon Location Hanford Plaza, Tuen Mun Hanford Plaza,TuenMun Retail Floorand1-6/F.,CitylinkPlaza,Shatin The Capitol,LOHASPark Le Prestige,LOHASPark The Riverpark,CheKungTemple Hemera, LOHAS Park Hemera, LOHASPark The ShopUnitsandKindergartenofRiverpark,CheKungTemplewheretheGovernmentLeaseexpireson21July2058 Citylink PlazawheretheGovernmentLeasesexpireon1December2057 LOHAS ParkwheretheGovernmentLeaseexpireson16May2052 PopCorn 2wheretheGovernmentLeaseexpireson27March2052 The LanewheretheGovernmentLeaseexpireson21October2052 Choi HungPark&RidewheretheGovernmentLeaseexpireson11November2051 No. 1AustinRoadWest,PlazaAscot,RoyalOceanWalk,SunTuenMunShoppingCentreandHanfordwheretheGovernmentLeasesexpireon30June2047 Telford PlazaIandII,LukYeungGalleria,MaritimeSquare12,NewKwaiFongGardens,ifc,OlympianCity,Elements,CrossBorderCoachTerminusKindergartenat Saleable area Brochure grossfloorareaasperpreviously issuedmarketingbrochures Lettable floorarea Car park Residential Car park Car park Residential Car park Car park Kindergarten Retail Residential Motorcycle park Car park Retail Residential Kindergarten Motorcycle park Motorcycle park Car park Residential Car park Shopping centre Type Type Car park Car park Shopping Centre Shopping Centre Shopping Centre for the Elderly for theElderly Residential CareHome Shop Unit Car park Car park Kindergarten Kindergarten Kindergarten Shop Unit Kindergarten Kindergarten Lettable floor Lettable floor Lettable floor Lettable floor area area (sq. m.) (sq. m.) 12,154 12,154 1,476 1,000 3,000 1,674 2,000 1,299 6,026 1,924 1,924 2,571 2,571 548 749 212 391 391 800 800 708 708 154 985 985 – – – – – – – – – – – – – *** ** *** ** * *** No. of parking No. ofparking No. of parking No. ofparking spaces spaces 117 330 137 240 22 22 38 38 15 12 24 18 Annual Report 2017 2 – – – – – – – – 5 5 – – – – – – – – – – Company’s Company’s Company’s Company’s ownership ownership ownership ownership interest interest 92.88% 92.88% 92.88% 92.88% 73.10% 38.5% 38.5% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 40% 40% 40% 55% 55% 55% 55% 50% 70% 71% 87% 87%
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Financials and Other Information Corporate Governance Business Review and Analysis Overview BUSINESS REVIEW HONG KONG PROPERTY AND OTHER BUSINESSES
n e t ent ropert e Distribution of Hong Kong Property Management Income (Percentage) 77.1 0 000 5.2 2017 70 7 000 10.2 0 000
0 000 alue o 5.2 0 3,814 000 n e t ent 10.4 7 2 222 propert e 18.6 18.1 66.3 66.0 0 2 7 000 (HK$ billion) le t ale Residential 20 2 000 et rental Retail 10 1 000 n o e (HK$ million) Office 0 0 r t ale 201 201 201 201 2017 2016 Car park
PROPERTY MANAGEMENT Hong Kong property management revenue in 2017 Two of our managed properties gained awards from increased by 0.7% to HK$292 million. As at 31 December Occupational Safety and Health Council. The Palazzo 2017, over 96,000 residential units and over 772,000 square received a “Gold Award of the Safety Culture Award” in the metres of commercial space were managed by MTR. “Best Property Safety Management Award 2016 to 2017”
As in previous years, the excellence of our property while The Arch received a “Merit Award” in the council’s management secured a number of awards during 2017. “Best Property Management Awards”.
PROPERTY DEVELOPMENT Profit from Hong Kong property development in 2017 Sea II had been sold. Pre-sales for MALIBU of LOHAS Park amounted to HK$1,097 million, and was derived from Package 5 are planned to be launched in March 2018. sundry sources, such as agency fee income from West For West Rail property development projects where we are Rail property developments (including Cullinan West the agent for the relevant subsidiaries of KCRC, a series of and Cullinan West II, Ocean Pride, Ocean Supreme, THE pre-sales were launched during the year. THE PAVILIA BAY PAVILIA BAY, PARC CITY as well as The Spectra), the sale of (the Tsuen Wan West Station (TW6) site) was launched in inventory units and car parking spaces, as well as further January 2017 with about 98% of 983 units sold by year end. profit bookings arising from the finalisation of development Cullinan West and Cullinan West II at Nam Cheong Station accounts for completed property development projects. were launched in March and November 2017 respectively, Pre-sales were launched for Wings at Sea and Wings at Sea with about 92% of 1,050 units and about 44% of 1,188 II of LOHAS Park Package 4 in September and October 2017 units respectively sold by year end. May and July 2017 respectively. By year end, about 97% of the 1,040 units of saw the launches respectively of Ocean Pride and Ocean Wings at Sea and about 36% of the 1,132 units of Wings at Supreme (the Tsuen Wan West Station (TW5) Bayside
64 MTR Corporation by KerryPropertiesLimitedand SinoLandCompanyLimited. Hang StationPackage2wasawarded toaconsortiumformed Limited inFebruary2017.InDecember2017,WongChuk Infrastructure LimitedandPingAnRealEstateCompany 1 wasawardedtoaconsortiumformedbyRoadKing In ourpropertytendering,WongChukHangStationPackage units soldbyyearend. (the LongPingStation(North)site),withabout96%of912 with all953unitssold.Pre-salesalsocontinuedatTheSpectra West Station(TW5)Citysidesite)waslaunchedinAugust2017, respectively bytheendofyear.PARCCITY(theTsuenWan site), withabout99%of970unitsand87%1,436sold next sixyears. over 1.15millionsquaremetres,willbecompletedthe construction. Over18,000residentialunits,withatotalGFAof tendered outandarenowinvariousstagesofplanning or so,12MTRpropertydevelopmentpackageshavebeen In ourresidentialdevelopment,duringthepastfouryears in May2017. Investment LimitedandK.WahInternationalHoldings by SinoLandCompanyLimited,ChinaOverseas& Kam SheungRoadStationPackage1toaconsortiumformed As agentfortherelevantsubsidiaryofKCRC,weawarded Annual Report 2017 65
Financials and Other Information Corporate Governance Business Review and Analysis Overview BUSINESS REVIEW HONG KONG PROPERTY AND OTHER BUSINESSES
Progress of Property Development Packages Awarded
Project Status
Location Design Foundation Works Superstructure
LOHAS Park Package 4 Completed Completed In progress
Tai Wai Station Completed In progress In progress
LOHAS Park Package 5 Completed Completed In progress
LOHAS Park Package 6 Completed Completed In progress To be started in first half Tin Wing Stop Completed In progress of 2018 LOHAS Park Package 7 Completed Completed In progress To be started in first half LOHAS Park Package 8 Completed of 2018 To be started in first half LOHAS Park Package 9 Completed Completed of 2018 To be started in first half LOHAS Park Package 10 Completed Completed of 2018 To be started in first half Ho Man Tin Station Package 1 In progress of 2018
Wong Chuk Hang Station Package 1 In progress
Wong Chuk Hang Station Package 2 In progress
West Rail Line Property Development Plan The Company acts as development agent for the West Rail property projects.
Actual/Expected Site Area tender Actual/Expected Station/Site (hectares) award date completion date Property Development Packages awarded Tuen Mun 2.65 August 2006 By phases from 2012 – 2014 Tsuen Wan West (TW7) 2.37 September 2008 2014 Nam Cheong 6.18 October 2011 By phases from 2017 – 2019 Long Ping (North) 0.99 October 2012 2017 Tsuen Wan West (TW5) Cityside 1.34 January 2012 2018 Tsuen Wan West (TW5) Bayside 4.29 August 2012 2018 Tsuen Wan West (TW6) 1.38 January 2013 2018 Long Ping (South) 0.84 June 2013 2019 Yuen Long 3.91 August 2015 2022 Kam Sheung Road Package 1 4.17 May 2017 2025 28.12 Property Development Packages to be awarded Kam Sheung Road Package 2 About 5.17 2024 – 2025 2031 – 2032 Pat Heung Maintenance Centre About 23.56 Under review Under review 28.73 Total 56.85
66 MTR Corporation 2 1 Notes: Property DevelopmentPackagestobeAwarded ^ * # Property DevelopmentPackagesCompletedduringtheyearandAwarded Yuen Long Ho ManTinStation Wong ChukHangStation LOHAS ParkStation Location Yuen LongStation Nam CheongStation Long PingStation Kam SheungRoadStation Wong ChukHangStation Tin WingStop Tai WaiStation Tai Wai Wings atSeaII Wings atSeaand LOHAS ParkStation Package 1 Ho ManTinStation Location PARC CITY Tsuen WanWestStation Cullinan West The Spectra Package 1 Package 1 Tin Wing Package 5 Ocean PrideandSupreme Long Ping(South) Package 2 Package 6 THE PAVILIABAY Package 7 Package 8 Package 9 Package 10 These propertydevelopmentpackagesare subjecttoreviewinaccordancewithplanningapproval,landgrantconditionsand completionofstatutoryprocesses. Property developmentpackagesforwhich weareactingasdevelopmentagentfortherelevantsubsidiariesofKCRCnotinclud ed. including a24-hourpedestrianwalkwayandcoveredlandscapeplaza excluding abicycleparkwithcycletrack as developmentagentfortherelevantsubsidiariesofKCRC # # # # # Sun Hung Kai Properties Limited Sun HungKaiPropertiesLimited Company Limited Company Limited New WorldDevelopment Sun HungKaiPropertiesLimited Goldin FinancialHoldingsLimited Developers Chinachem Group Sun HungKaiPropertiesLimited Sino LandCompanyLimited K. WahInternationalHoldingsLimitedand K. WahInternationalHoldingsLimited Limited and China OverseasLand&Investment Sino LandCompanyLimited, Ping AnRealEstateCompanyLimited Road KingInfrastructureLimitedand Sun HungKaiPropertiesLimited Wheelock andCompanyLimited CK AssetHoldingsLimited Chinachem Group Sino LandCompanyLimited Kerry PropertiesLimitedand Nan FungGroupHoldingsLimited Vanke Property(Overseas)Limited New WorldDevelopmentCo.Ltd.and Wheelock andCompanyLimited CK AssetHoldingsLimited Wheelock andCompanyLimited Nan FungGroupHoldingsLimited Residential Retail Residential Residential Type
Retail Residential Retail Residential Residential Residential Type Retail Residential Kindergarten Retail Residential Residential Residential Residential Retail Residential Residential Kindergarten Retail Residential Residential Residential Residential Residential Kindergarten Retail Residential Residential Kindergarten Residential Residential Gross floor area Gross floorarea About 320,000 Notes 1and2 258,100 59,400 59,400 (sq. m.) 47,000 floor area floor area 126,455 190,480 122,302 214,700 114,896 102,336 167,100 136,970 104,110 69,000 69,000 11,210 66,114 26,660 48,675 53,600 91,051 40,000 41,990 45,800 62,711 44,500 70,260 97,000 75,400 11,535 60,620* (sq. m.) 1,000 1,160 Gross Gross 205 550 810 ^ package tenders November 2014 December 2016 December 2017 December 2015 February 2017 February 2015 October 2014 October 2011 October 2012 October 2015 2018 –2021 January 2012 January 2015 January 2013 August 2015 August 2012 March 2016 award date June 2013 June 2015 Period of Period of April 2014 May 2017 Tender Tender
Annual Report 2017 completion date completion date By phases from By phasesfrom By phases from By phasesfrom 2023 –2026 2018 –2019 2017 –2019 Expected Expected Expected Expected 2022 2022 2022 2017 2022 2021 2018 2025 2019 2023 2019 2018 2020 2018 2022 2021 2022 2022
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Financials and Other Information Corporate Governance Business Review and Analysis Overview BUSINESS REVIEW HONG KONG PROPERTY AND OTHER BUSINESSES
EXPANDING THE PROPERTY PORTFOLIO As our Hong Kong rail network expands, this yields on schedule. The Company will contribute a total of HK$4.98 additional opportunities for residential and commercial billion to the development, of which HK$2.44 billion has property developments. already been invested. The remaining HK$2.54 billion will be paid upon the completion of mall construction, which is Investment Properties expected to be in 2019. MTR will also bear the fit out cost of Over the next four years or so our investment properties the shopping centre. Upon completion of the project, MTR will portfolio in Hong Kong will expand significantly as more retain the ownership of the shopping centre, in addition to retail space is added. Two of these projects were completed profit sharing from the whole development. in 2017, namely the Maritime Square 2 and the seventh and eighth floors of Telford Plaza II. A further 105,120 square Property Development metres GFA will be added by the two that remain under We are continuing to examine suitable sites along our railway construction, namely the new LOHAS Park shopping centre lines where other properties might be developed. and the Tai Wai shopping centre. Above our depot in Siu Ho Wan on Lantau Island around The Tai Wai Shopping Centre will have 60,620 square metres 14,000 residential units could be built, subject to the necessary GFA and is targeted to complete in 2022. Foundation and zoning and other statutory approvals. The Environmental superstructure works are in progress and on schedule. The Impact Assessment reports for this project were approved Company has already contributed HK$7.5 billion to this by Government in November 2017. The statutory planning development package, and will, in addition to profit sharing procedures commenced with the draft Siu Ho Wan Outline from the whole development, retain ownership of the mall Zoning Plan being agreed by the Town Planning Board for when completed and bear the fit-out costs. District Council consultation on 5 January 2018.
The LOHAS Park Shopping Centre will have 44,500 square A second possible site is the Yau Tong Ventilation Building. The metres GFA and is targeted to complete by the end of 2020. rezoning process for this project was completed in April 2017 Foundation and superstructure works are in progress and and the gazetted road works scheme was approved in August 2017. At this preliminary stage there is no assurance that either project would be commercially viable. 68 MTR Corporation December 2017, more than 10,000 service providers in Hong December 2017,morethan10,000 serviceprovidersinHong Limited in2017declinedby30.5% toHK$173million.Asat31 The Company’sshareofnetprofit fromOctopusHoldings Octopus The DailyTelegraphintheUK2014. following similarawardsfromCNN.comintheUS2015and the onlycablecarinAsiatohavegainedthisstatusthreetimes, as oneof“TheWorld’s10bestcablecars”.NgongPing360is In June2017,NgongPing360wasrecognisedbyUSAToday fell by38.9%to1.04million. 32.7% in2017toHK$263million.Visitornumbersfortheyear associated themevillage(“NgongPing360”)decreasedby In consequence,revenueattheNgongPingCableCarand the successfulcompletionofropereplacementproject. the public.CableCarserviceresumedon5June2017after which timetheassociatedthemevillageremainedopento 4 June2017fortheplannedropereplacementworks,during The NgongPingCableCarwasclosedbetween9Januaryand Ngong Ping360 OTHER BUSINESSES assistance totheMacauLightRapid Transitproject. contract toprovideprojectmanagement andtechnical 64.8% toHK$356million,mainlycontributedbytheservice Revenue fromourconsultancybusinessin2017increasedby consultancy servicestoclientsinandoutsideofHongKong. As oneoftheworld’sleadingrailwayoperatorsweoffer Consultancy Business regular use. issued On-LoanAdultOctopuswasintroducedtoencourage an “InactiveOctopusAdministrativeFee”applicabletonewly HK$35 toHK$50enhancecustomerconvenience,while limit” fornewlyissuedOn-LoanOctopuswasincreasedfrom were effectivestartingfrom1October2017.The“convenience New measuresforthenewlyissuedOn-LoanAdultOctopus reached 14.5millionandHK$193.6respectively. 34.4 million.Averagedailytransactionvolumesandvalue other stored-valueOctopusproductsincirculationreached Kong wereacceptingOctopusforpayment.Totalcardsand Annual Report 2017 69
Financials and Other Information Corporate Governance Business Review and Analysis Overview