MTR Corporation Limited Annual Report 2009 Report Annual Limited Corporation MTR ANNUAL REPORT 2009 Building CONNECTIONS MTR Corporation Limited Expanding HORIZONS MTR Headquarters Building, Telford Plaza Kowloon Bay, Kowloon, Hong Kong GPO Box 9916, Hong Kong Telephone : (852) 2993 2111 Facsimile : (852) 2798 8822 www.mtr.com.hk Stock Code: 66 MTR020_AR09 Cover_Full_Eng About this year’s cover Building Connections Expanding Horizons The growth of the Company’s business continues to gather momentum in Hong Kong SAR, the Mainland of China and overseas, offering greater connectivity and building connections to new communities, and expanding the horizon of our customer reach worldwide with services that care for their life journeys and provide higher levels of convenience and reliability. Through careful implementation of our growth strategy, our various new projects are transforming the Company’s journey from being a local metro operator to an internationally recognised company with a much expanded local network and operations in major international cities such as Beijing and London. 22 Hong Kong Passenger Services Station Commercial and 36 Rail Related Businesses Contents Property and Other Businesses 2 Operating Network with Future 42 Extensions 4 MTR Corporation at a Glance 6 Chairman’s Letter 10 CEO’s Review of Operations and Outlook 19 Key Figures 20 Key Events in 2009 Hong Kong 54 Network Expansion 22 Executive Management’s Report 22 – Hong Kong Passenger Services 36 – Station Commercial and Rail Related Businesses 42 – Property and Other Businesses 54 – Hong Kong Network Expansion 60 – Mainland and Overseas Growth 66 – Human Resources Mainland and 72 Financial Review Overseas Growth 80 Ten-Year Statistics 82 Investor Relations 60 84 Sustainability 85 Risk Management 86 Corporate Governance Report 99 Remuneration Report 102 Board and Executive Directorate 108 Key Corporate Management Human Resources 109 Report of the Members of the Board 133 Contents of Accounts and Notes 66 134 Independent Auditor’s Report 135 Consolidated Profit and Loss Account 136 Consolidated Statement of Comprehensive Income 137 Consolidated Balance Sheet 138 Balance Sheet 139 Consolidated Statement of Changes in Equity 140 Consolidated Cash Flow Statement 141 Notes to the Accounts 232 Glossary Shenzhen 2 OPERATING NETWORK WITH FUTURE EXTENSIONS Lo Wu Through Train Beijing Route Map Lok Ma Chau Sheung Shui Chau Tau Shanghai Fanling Beijing Line Zhaoqing Guangzhou Shanghai Line Legend Existing Network Projects in Progress Guangdong Line Foshan HONG KONG SAR Station Airport Express Guangzhou-Shenzhen- Dongguan Hong Kong Express Rail Link Interchange Station Disneyland Resort Line West Island Line Tai Wo Proposed Station East Rail Line Extensions under Study Yuen Long Proposed Interchange Station Island Line Long Kwun Tong Line Extension Ping 44 Cable Car Ngong Ping 360 Kwun Tong Line Shatin to Central Link 47 Shenzhen Metro Network Light Rail 33 Kam Tai Po Market South Island Line (East) 40 Sheung * Racing days only Ma On Shan Line 48 Road 49 Tseung Kwan O Line Potential Future Extensions Tin Shui Wai Ma On Shan 36 50 Wu Kai Sha Tsuen Wan Line North Island Line New Territories Heng On Northern Link Tung Chung Line University Siu Hong Tai West Rail Line South Island Line (West) Shui Hang 27 35 29 Tuen Mun Racecourse* 30 45 Shek Mun Fo Tan 28 31 City One Sha Tin Tsuen Wan Tai Wo Hau 05 Sha Tin Kwai Hing 46 07 38 Wai Che Kung Tsuen Wan West 39 Temple 06 37 Kwai Fong51 Tai Wai 18 Hin Keng Tsing Yi Mei Foo Lok Fu Wong Tai Sin Lai King Kowloon Lai Chi KokCheung Tong Diamond Hill 20 Central Park / Island Harbourview / Sha Wan Properties Owned / Developed / Property Developments under Expo 25 Park Avenue / Harbour Green / AsiaWorld- DisneylandResort Sham Choi Hung Managed by the Corporation Construction / Planning 43 Shui Po Kowloon Bank of China Centre / HSBC Centre / Sunny Bay 01 Telford Gardens / Telford Plaza I and II Olympian City One / Olympian City Two 21 Kowloon Station Package 5, 6 & 7 Shek Nam Kip Mei Kai Tak 21 The Waterfront / Sorrento / Airport Tung Prince Po Lam 02 World-wide House 23 Tseung Kwan O Station Area 56 Chung To Cheong Edward Kowloon Bay 24 The Harbourside / The Arch / Elements / 19 Kwa 01 03 Admiralty Centre 34 LOHAS Park Package 2-10 20 Mong Mong Wan Hang Hau The Cullinan / The Harbourview Place / Kok Kok East Ma Tau 04 Argyle Centre W Hong Kong / International Commerce 37 Tai Wai Maintenance Centre 04 Wai Cable Car Ngau Tau Kok Centre Olympic 05 Luk Yeung Sun Chuen / Luk Yeung 38 Che Kung Temple Station Ngong Ping 360 Yau Ho 22 One International Finance Centre / Ma Man Tin Kwun Tong 23 Galleria 39 Tai Wai Station 41 Tei Two International Finance Centre / 42 Lam Tin 21 Whampoa Yau Tong Tseung 06 New Kwai Fong Gardens Kwan O IFC Mall / Four Seasons Hotel / 40 Tin Shui Wai Light Rail Terminus Austin Jordan Four Seasons Place Tiu 07 Sun Kwai Hing Gardens 41 Austin Station Site C Kowloon Hung Keng West Tsim Hom 26 Leng 23 Central Heights / The Grandiose / Lantau Sha 32 08 Fairmont House 42 Austin Station Site D Tsui The Edge Island Kowloon 09 Kornhill / Kornhill Gardens Terminus 24 Residence Oasis / The Lane West Rail Line Property East Tsim 10 Fortress Metro Towers Sha Tsui 10 25 No.8 Clear Water Bay Road / Choi Hung Development 22 09 34 Park & Ride Sai Ying Pun Fortress Hill LOHAS Park 11 Hongway Garden / Vicwood Plaza 11 Hong Kong 17 (As Government Agent) Tamar North 26 Metro Town Exhibition Point 12 12 Perfect Mount Gardens 16 43 Nam Cheong Station 02 Quarry Bay 27 Royal Ascot / Plaza Ascot Tai Koo 15 Tin 13 New Jade Garden Sheung Wan 28 Pierhead Garden / Ocean Walk 44 Yuen Long Station KennedyTown Hau Hong Kong Central 14 Sai Wan Ho 14 Southorn Garden University Wan 29 Sun Tuen Mun Centre / Sun Tuen Mun 45 Tuen Mun Station Chai Bay Shopping Centre 03 Causeway Shau Kei Wan 15 Heng Fa Chuen / Heng Fa Villa / 46 Tsuen Wan West Station 08 Paradise Mall 30 Hanford Garden / Hanford Plaza Central SouthAdmiralty Heng Fa Chuen 47 Long Ping Station 13 16 Park Towers 31 Citylink Plaza Hong Kong Island 32 MTR Hung Hom Building / Hung Hom 48 Tin Shui Wai Station 17 Felicity Garden Chai Wan Station Carpark 49 Kam Sheung Road Station 18 Tierra Verde / Maritime Square 33 Trackside Villas Aberdeen 50 Pat Heung Maintenance Centre Cyberport 19 Tung Chung Crescent / Citygate / Novotel 34 The Capitol 51 Kwai Fong Site Wah Fu Citygate / Seaview Crescent / Coastal 35 The Palazzo Skyline / Caribbean Coast Wong Ocean 36 Lake Silver Chuk Park Hang Lei Tung South Horizons MTR Corporation Shenzhen 40 48 Long Ping 29 Siu Hong 47 Lok Ma Chau Tin Shui Wai 28 Tuen Mun Chau Tau Lo Wu 30 45 Yuen Long 44 Kam 49 Sheung Road Sheung Shui 50 Fanling AsiaWorld- Expo Through Train Airport Route Map Tai Wo Beijing Line Lantau New Territories Shanghai Line Island Guangdong Line Tsuen Wan West 33 Beijing 46 Tung Tai Po Market Zhaoqing Tsuen Wan Cable Car 19 Chung Sunny Bay 05 Ngong Ping 360 Guangzhou 3 Disneyland Foshan Resort Tai Wo Hau Tsing Yi 18 Dongguan Kwai Hing Shanghai 07 HONG KONG SAR Kwai Fong 06 Lai King 51 University Mei Foo 27 35 Fo Tan Sha Tin 31 Tai Heng On Lai Chi Kok Shui Ma On Shan 43 Racecourse* Hang Nam Tai Wai Cheong Cheung 39 36 Sha Wan 37 20 38 Wu Kai Sha Sham Olympic Shui Po Hin Keng Che Kung Sha City One Shek Mun Prince Kowloon Temple Tin Edward Tong Kennedy 21 Lok Fu Wai Town Sai Ying Pun Shek Kowloon Kip Mei Kowloon Wong Tai Sin Mong 41 Hong Kong 42 Kok University West 04 11 Kowloon Austin Yau Mong Diamond Hill Ma Kok East Sheung Wan Terminus Tsim Sha Tei 22 25 Tsui Jordan Ho 02 Ma To Kai Tak Choi Hung Cyberport Hong Kong Man Tin Tau Kwa Central Wai Wan Tamar East Tsim Hung Whampoa Central South 32 Hom Wah Fu Sha Tsui 01Kowloon Bay Admiralty Exhibition 10 03 14 08 Wan Fortress Hill Ngau Tau Kok South Horizons Chai Aberdeen Causeway 16 Kwun Tong Po Lam Bay Tin North Lei Tung Hau Point Lam Tin 24 Wong Hang Hau Hong Kong Island Quarry Bay Yau Tong Chuk 09 Hang 23 Tai Koo Ocean 26 Park 17 Tiu Tseung Sai Wan Ho Keng Kwan O 12 Leng Shau Kei Wan Heng Fa Chuen 15 34 LOHAS Park Chai Wan 13 Annual Report 2009 4 MTR CORPORATION AT A GLANCE Since the opening of our first line in Hong Kong some 30 years ago, the size, scale, geographic coverage and diversity of the Company’s business activities have steadily developed. Following the Rail Merger, our strategy for future growth has remained firmly on track with significant network expansion in Hong Kong and the capturing of growth opportunities in the Mainland of China and overseas. Hong Kong Station Commercial and Passenger Services Rail Related Businesses Business Description Business Description We operate a pre-dominantly rail based transportation system in We leverage our railway assets and expertise into additional Hong Kong, comprising Domestic and Cross-boundary services, businesses, including rental of station retail space, advertising in a dedicated high-speed Airport Express and a light rail system, trains and stations, telecommunications, and rail consultancy. which in total stretches 218.2 kilometres with 84 stations and 68 stops. Our network is one of the most intensively used systems in 2009 Highlights the world, known for its reliability, safety and efficiency. We also • 23 retailers that are new to our network were added provide intercity services to the Mainland of China as well as a bus operation in Hong Kong offering convenient feeder services.