1 August 2001
KCRC’s profit goes up by 14.7% in the first half of 2001
 
The Kowloon-Canton Railway Corporation (KCRC) continues to enjoy steady growth in the first six months of 2001, said KCRC Chairman and Chief Executive K Y Yeung in announcing the 2001 half-yearly financial results.
Mr Yeung said total East Rail ridership during the first half of the year grew to 143 million passenger trips, 1.4% over the same period last year. Light Rail ridership, at 58 million passenger trips, was the same as that last year.
He said in parallel with the growth rate of East Rail ridership, fare revenues grew by 1.68% to $1,932 million. Total revenues went up by 1.74% to $2,342 million.
Mr Yeung said, "In contrast to this modest growth, however, retained profits went up by 14.7% to $1,189 million, compared with $1,037 million last year. This was due in part to increased transport, commercial, investment and property earnings, and in part to a continuing decline in operating costs."
He noted that after public consultations, KCRC decided to introduce a weighted average fare increase of 3.1% with effect from 1 April 2002.
Mr Yeung said West Rail, Phase I, and the East Rail Extensions had progressed steadily. More than 80% of West Rail’s civil engineering works had been completed by mid-year. All major milestones had been reached on time or ahead of schedule, and operational readiness planning had begun.
"There are indications that West Rail will be able to start running a few months ahead of its target opening date of December 2003," he said.
Civil engineering works on the East Rail Extensions were also on target. Construction of the 11.4 kilometre Ma On Shan Rail viaduct began in February, while construction of the one-kilometre extension of East Rail to Tsim Sha Tsui began in April.
The Corporation also submitted proposals for the Kowloon Southern Link and a bid for the Shatin to Central Link in July. KCRC is now planning to build the former and waiting for the Government to make a decision on the award of the latter.

Kowloon-Canton Railway Corporation
Consolidated Profit and Loss Account - HK$ million
For the half-year ended 30 June 2001 (Unaudited)

YEAR ENDED  

HALF-YEAR ENDED

31 Dec 2000   30 Jun 2001 30 Jun 2000
(Audited)   (Unaudited)

3,906

825

Fare revenue

Freight, rental, advertising and other revenue

1,932

410

1,900

402

4,731

2,830

Total revenue

Operating costs

2,342

1,370

2,302

1,399

1,901


302

Operating profit before
net investment  income

Net investment income

972


186

903


127

2,203

87

(1)

Profit after net investment income

Profit on property development

Share of profit /(loss) of associate

1,158

24

7

1,030

7

-

2,289

1

Profit before taxation

Taxation

1,189

-

1,037

-

2,288

87

Profit after taxation

Transfer to development reserve

1,189

-

1,037

-

2,201

Retained profit for the period

1,189

1,037

Kowloon-Canton Railway Corporation
Consolidated Balance Sheet – HK$million
As at 30 June 2001 (Unaudited)
AS AT  

AS AT

31 Dec 2000   30 Jun 2001 30 Jun 2000
(Audited)   (Unaudited)

Non-current assets

13,236

Fixed Assets

12,947

13,151

16,491

Construction in progress

- West Rail, Phase I

21,035

12,952

909

 

- Others

1,520

827

1,104

Deferred expenditure

- East Rail Extensions

2,682

598

91

 

- Others

330

91

-

Property under development

-

336

16

Amount due from the Government

23

17

602

Investment in associate

858

-

27,789

Investment in securities

29,555

29,036

10,181

Current assets

12,328

11,351

(4,454)

Current liabilities

(5,940)

(4,050)

5,727

Net current assets

6,388

7,301

(17,064)

Non-current liabilities

(17,235)

(16,692)

48,901

Net Assets

58,103

47,617

 

31,120

Share capital

39,120

31,120

6,417

Development reserve

6,417

6,330

242

Investment property revaluation reserve

242

231

16

Investment revaluation reserve

29

(6)

11,106

Retained profits

12,295

9,942

48,901

Capital and Reserves

58,103

47,617

 

Kowloon-Canton Railway Corporation


Key Statistics
For the half-year ended 30 June 2001
YEAR ENDED  

HALF-YEAR ENDED

31 Dec 2000   30 Jun 2001 30 Jun 2000
(Audited)   (Unaudited)

 

East Rail  

288

Total number of passengers (million)

143

141

789

Average number of weekday passengers (thousands)

790

770

8.8%

Proportion of total franchised public transport boarding in Hong Kong

8.7%

8.7%

HK$ per passenger carried

11.65

Fare revenue

11.62

11.58

4.55

Operating costs excluding depreciation

4.31

4.48

7.10

Operating result

7.31

7.10

 

 

Light Rail

 

 

118

Total number of passengers (million)

58

58

329

Average number of weekday passengers (thousands)

327

328

3.6%

Proportion of total franchised public transport boarding in Hong Kong

3.5%

3.6%

 

HK$ per passenger carried

 

 

3.59

Fare revenue

3.59

3.59

3.86

Operating costs excluding depreciation

3.84

3.81

(0.27)

Operating result

(0.25)

(0.22)

 
Certain comparative statistical figures have been restated to conform to current period's presentation.
Note: The financial information set out above does not constitute the Corporation's statutory financial statements. The financial information for the 6 months ended 30 June 2001 and 2000 is unaudited, and that for the year ended 31 December 2000 is derived from the Corporation's statutory financial statements for that year, which contained an unqualified auditor's report.
 
Chairman’s Statement
KCRC continued to enjoy steady growth in the first six months of 2001.
Total East Rail ridership during the first half of the year grew to 143 million passenger trips, a gain of 2 million or 1.4% over the same period last year. The average weekday patronage on East Rail was 790,000 passenger trips, 20,000 more than last year’s average. Light Rail ridership, at 58 million passenger trips, was the same as that last year.
In parallel with the growth rate of East Rail ridership, fare revenues grew by 1.68% to $1,932 million, compared with $1,900 million for the same period the year before. Total revenues were $2,342 million, compared with $2,302 million last year, reflecting an increase of 1.74%. In contrast to this modest growth, however, retained profits went up by 14.7% to $1,189 million, compared with $1,037 million last year. This was due in part to increased transport, commercial, investment and property earnings, and in part to a continuing decline in operating costs.
In June, the Corporation launched public consultations on its intention to end a three-year moratorium on fare adjustments, by proposing a weighted average fare increase of 3.1%. Following consultations, the Corporation decided to introduce this fare increase with effect from 1 April 2002.
West Rail, Phase I, and the East Rail Extensions have progressed steadily. More than 80% of West Rail’s civil engineering works had been completed by mid-year. The tunnels were 95% finished, the viaducts 75% erected and the station structures 50% built. All major milestones had been reached on time or ahead of schedule, and operational readiness planning had begun. There are indications that West Rail will be able to start running a few months ahead of its target opening date of December 2003. Civil engineering works on the East Rail Extensions were also on target. Construction of the 11.4 kilometre Ma On Shan Rail viaduct began in February, while construction of the one-kilometre extension of East Rail to Tsim Sha Tsui began in April.
Of the six new railway corridors identified in the Government’s Railway Development Strategy 2000, the Corporation submitted proposals for the Kowloon Southern Link and a bid for the Shatin to Central Link in July. KCRC is now planning to build the former and waiting for the Government to make a decision on the award of the latter.

K Y Yeung
Chairman and Chief Executive
2 August 2001