Source: China State Council Information Office
MTR (Mass Transit Railway) Corporation said Thursday that the social unrest in Hong Kong will have a negative financial impact of around 1.6 billion Hong Kong dollars (about 204 million U.S. dollars) on its net profits of Hong Kong recurrent business this year.
In a statement filed with the exchange, the company said the passenger volume of its railway network has dropped for five straight months year on year since July, with over 27-percent slumps in October and November, respectively.
As MTR stations became a major target of rioters, the company also had to swallow the costs of repairing and replacing damaged facilities, enhancing staffing and security, and making rent concession for some retail tenants affected by violent incidents, according to the statement.
The company predicted a profit drop this year but stressed that its financial position remains sound when taking into account both rail and property business.
The profits of Hong Kong recurrent business of the company rose 7 percent year on year to 8.2 billion Hong Kong dollars (1.05 billion U.S. dollars) in 2018.