WEDNESDAY, APRIL 12, 1989
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"THERE REMAINS UNCALLED ON THE PARTLY PAID SHARES A FURTHER $2,500 MILLION, AND THIS EXPENDITURE IS PROVIDED FOR IN THE GOVERNMENT FORECAST OF MEDIUM TERM EXPENDITURE.
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MR JACOBS SAID THAT AT THE END OF LAST YEAR, SHAREHOLDERS' FUNDS STOOD AT 96,315 MILLION, AN IMPROVEMENT OF OVER $2,900 MILLION.
"THIS AROSE FROM THE FURTHER EQUITY INJECTION OF $1,000 MILLION THAT HAVE JUST REFERRED TO, THE NET PROFIT EARNED DURING THE YEAR AND THE REVALUATION OF INVESTMENT PROPERTIES HELD BY THE CORPORATION WHICH INCREASED ITS RESERVES BY $1,604 MILLION, HE SAID.
"THIS MOVEMENT LED TO A YEAR-END DEBT TO EQUITY RATIO OF 2.8 TO ONE COMPARED WITH 6.3 TO ONE IN 1987."
BUT MR JACOBS SAID THAT THE CORPORATION HAD, AND WOULD CONTINUE TO HAVE FOR SOME TIME, A LARGE BURDEN OF DEBT.
"IN RECOGNITION OF THIS, THE CORPORATION REMAINS AN ACTIVE AND INNOVATIVE BORROWER IN HONG KONG AND IN THE WORLD FINANCIAL MARKET.
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"I AM HAIPY ΤΟ ADD THAT DURING THE YEAR THE CORPORATION IMPROVED ITS INTERNATIONAL CREDIT RATINGS.
"THIS IS IMPORTANT BECAUSE IT ENSURES THAT THE CORPORATION 1S WELL REGARDED IN THE INTERNATIONAL FINANCIAL MARKETS NOW AND IN THE FUTURE.
ON THE MTR PASSENGER GROWTH RATE, MR JACOBS SAID THAT A TOTAL OF 630 MILLION PASSENGERS WERE CARRIED LAST YEAR, NEPRESENTING A SIX PER CENT INCREASE OVER 1987.
HOWEVER, HE WARNED THAT
FURTHER INCREASES IN THE PASSENGER GROWTH RATE WERE EXPECTED IN TIF FUTURE, THAT COULD LEAD TO THE CONTINUED BUILD-UP OF THE PEAK HOUR PATRONAGE ALONG THE NATHAN ROAD CORRIDOR.
"THE CORPORATION HAS AND WILL CONTINUE то ADOPT MEASURES TO ENCOURAGE MORE PEOPLE TO TRAVEL TO WORK EARLIER OR LATER," HE SAID.
THE OPENING OF THE EASTERN HARBOUR CROSSING IN LATE SUMMER SHOULD PROVIDE SOME RELIEF, HE ADDED.
"FOR THE LONGER TERM. DEVELOPMENT OPTIONS ON OUR FUTURE TRANSPORT NETWORK WILL BE SET OUT IN THE SECOND COMPREHENSIVE TRANSPORT STUDY TO BE PUBLISHED SHORTLY AND THE CORPORATION 18 EXPECTED TO PLAY AN ACTIVE ROLE IN SUCH DEVELOPMENTS, MR JACOBS SAID.
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ΤΗΣ FINANCIAL SECRETARY THANKED THE FORMER CHAIRMAN, MR WILFRID NEWTON, AND THE BOARD, AS WELL AS THE MANAGEMENT AND STAFF OF THE MTRC FOR THE VERY RESPONSIBLE AND EFFICIENT WAY IN WHICH THEY MANAGED THE CORPORATION DURING THE PAST YEAR.
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