The Corporation functions under the hybrid business model of rail+property which has served it well for the past 27 years of operations. Prudent business practices under this model have delivered strong long-term financial performance and growth. Since listing on The Stock Exchange of Hong Kong Limited in 2000, we have rewarded our shareholders with an average 14.6% return per annum on investment. In 2006, boosted by Hong Kong's robust economic performance, we delivered another strong year in passenger numbers, turnover and earnings. Our 2006 Annual Report discusses our financial performance in detail.

MTR Corporation was the first Hong Kong corporate entity to obtain internationally recognised credit ratings and has since maintained a status on par with the HKSAR Government based on credit fundamentals, prudent financial management and continuous government support. The Corporation is also a member of the MSCI, FTSE-All-World Hong Kong indices series. We also maintain our inclusion in the DJSI and FTSE4Good as confirmation of our best practice towards sustainable development.

 

Global Transport Model

Wider economic benefit from our business model spreads to the immediate community as well as serving as a regional and global model in economic sustainability. Our business model of rail+property gives rise to fair-priced public transport while allowing operational viability as a commercial entity guided by prudent financial principles. Accordingly, we derive our revenue streams from mass transit services augmented by the financial opportunity of development rights to those properties attached to the rail infrastructure. Our asset base is property strong and we continue to leverage opportunity in this traditionally solid performing industry. With the use of these cross-subsidised sources, we have consistently operated as a profitable business.