MTR Corporation Limited

HIGHLIGHTS
Hong Kong Businesses
- Recurrent profit improved from 2020 mainly due to rebound of Domestic patronage with easing COVID-19 situation in the second half of 2021 and the one-off provision made for Shatin to Central Link in 2020 not being repeated in 2021
- Train service delivery and passenger journeys on-time in our heavy rail maintained at 99.9% world-class level
- Full Tuen Ma Line opened in June 2021 and enhanced connectivity between the East and West
- Invitation received from Government to proceed with detailed planning and design of Hung Shui Kiu Station in May 2021
- Hong Kong property development profit of HK$9.3 billion mainly derived from LOHAS Park packages 7, 8 and 9. New property packages of THE SOUTHSIDE packages 5 and 6 were tendered out
Mainland of China & International Businesses
- Recurrent profit improved with COVID-19 development, with better performance in Mainland China and Australia operations
- Full line of Beijing Metro Line 14 and initial section of Beijing Metro Line 17 opened in December 2021
- Took over Mälartåg operations in Sweden in December 2021
Corporate Strategy and Outlook
- To further strengthen Board governance and effectiveness, the Board established new Finance and Investment Committee and Technology Advisory Panel and renamed Audit Committee as Audit and Risk Committee. Further, management organisation has been enhanced to deepen accountability and collaboration, and to strengthen "three lines of defence". Clear environmental, social and governance ("ESG") objectives have also been embedded into our operations to create value for all of our stakeholders
- The development of COVID-19 pandemic still remains highly uncertain with the onset of Omicron wave of infections and its adverse impact on our businesses may continue well into 2022
- Hung Hom to Admiralty Section of Shatin to Central Link targeted to open in June/July 2022
- Continue to progress various railway projects under RDS 2014 and property development of Siu Ho Wan Depot
- The Company fully supports Government on its Northern Metropolis Development Strategy (which includes five new railway projects) and the construction of a new Science Park/Pak Shek Kok Station along East Rail Line
- Profit booking from LP10 (LOHAS Park Package 10), SOUTHLAND (THE SOUTHSIDE Package 1) and LA MARINA (THE SOUTHSIDE Package 2) is dependent on construction progress. We are now inviting developers to submit Expression of Interest for the Pak Shing Kok Ventilation Building property development. Subject to market conditions, we will tender out Tung Chung Traction Substation site, Tung Chung East Station Package 1 (subject to our entering into a project agreement with the Government) and Siu Ho Wan Depot Package 1 (subject to our entering into a project agreement with the Government and signing of the land grant) in the coming 12 months or so

The Directors of the Company announce the audited results of the Company and its subsidiaries (the "Group") for the year ended 31 December 2021 as follows:

CONSOLIDATED PROFIT AND LOSS ACCOUNT

Notes:

1. AUDITOR'S REPORT

The consolidated accounts for the year ended 31 December 2021 have been audited in accordance with Hong Kong Standards on Auditing, issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA"), by the Company's auditor, KPMG. Unmodified auditor's report of KPMG is included in the annual report to be sent to shareholders. The consolidated accounts have also been reviewed by the Company's Audit and Risk Committee.

The financial figures in respect of the Group's consolidated profit and loss account, consolidated statement of comprehensive income, consolidated statement of financial position and the related notes thereto for the year ended 31 December 2021, as set out in this preliminary announcement, have been compared by KPMG to the amounts set out in the Group's audited consolidated accounts for the year and the amounts were found to be in agreement. The work performed by KPMG in this respect did not constitute an audit, review or other assurance engagement in accordance with Hong Kong Standards on Auditing, Hong Kong Standards on Review Engagements or Hong Kong Standards on Assurance Engagements issued by the HKICPA and consequently no assurance has been expressed by KPMG on this announcement.

2. BASIS OF PREPARATION

This preliminary announcement of the Company's annual results has been prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

The financial information relating to the financial years ended 31 December 2021 and 2020 included in this preliminary announcement of the annual results does not constitute the Company's statutory annual consolidated accounts for those years but is derived from those accounts. Further information relating to these statutory accounts required to be disclosed in accordance with section 436 of the Hong Kong Companies Ordinance (Cap. 622) is as follows:

• The Company has delivered the accounts for the year ended 31 December 2020 to the Registrar of Companies in accordance with section 662(3) of, and Part 3 of Schedule 6 to, the Companies Ordinance and will deliver the accounts for the year ended 31 December 2021 in due course.
• The Company's auditor, KPMG, has reported on those consolidated accounts of the Group for both years. The auditor's reports were unqualified; did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying its report; and did not contain a statement under sections 406(2), 407(2) or (3) of the Companies Ordinance.

The consolidated accounts have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards ("HKFRSs") issued by the HKICPA and accounting principles generally accepted in Hong Kong.

The HKICPA has issued several amendments to HKFRSs that are first effective for the current accounting period of the Group. None of these have had a material effect on the Group's results and financial position.

The Group has not applied any new standard or interpretation that is not yet effective for the current accounting period.

Certain comparative figures have been reclassified to conform to current year's presentation.

For more information, please visit https://doc.irasia.com/listco/hk/mtr/annual/2021/respress.pdf.

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