Analysis and Reference of the Profit Structure of MTR

Hong Zhang; Mei Hou

doi:doi:10.11648/j.ebm.20180403.15

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Analysis and Reference of the Profit Structure of MTR

Hong Zhang, Mei Hou

Published in European Business & Management (Volume 4, Issue 3)

Received: 21 June 2018 Accepted: 17 August 2018 Published: 8 October 2018

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Abstract

As the backbone of urban public transport, metro has a great promoting effect on the development of social economy. However, most metro companies suffer losses in the world. With the expansion of business scope, the diversification of business types and increased profit channels, MTR has become one of the models of the global railway operation industry. To refer to MTR's management experience, and explore its key business to realize profit and its practical lessons, it’s necessary to analyze the profit structure of MTR from 2012 to 2014. According to characteristic of MTR business, the profit structure is reconstructed as three major business sectors: passenger transport and its related business, property and its related business, and other business, and the profit structure from 2012 to 2014 is analyzed from total profit constitution and profit source structure. The results show that MTR’s profit source structure is highly consistent with its business model “Railway + Property”, its passenger transport and property all have strong profitability and each accounting for half of the total profit. For the metro enterprises in mainland China, it should adhere to the development pattern of “Metro + Property” and give full play to the linkage effect of metro and property development, so as to achieve self-sustainable development. It should not only manage well passenger transport and its related businesses, but also manage well property and its related businesses. At the same time, it is also of great significance to explore the flexible fare adjustment mechanism, control and reduce the cost of passenger transport and innovate the valuation model of investment property, etc.

Published in	European Business & Management (Volume 4, Issue 3)
DOI	10.11648/j.ebm.20180403.15
Page(s)	92-100
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2018. Published by Science Publishing Group

Keywords

MTR, Profit Structure, Passenger Transport, Property Development

References

[1]	Miao, Q.H., He, X.Z., & Fei, F.Y. (2004). Discussion about Externality and Profit Model of Urban Rail Transit. Urban Mass Transit, 05, 9-11.
[2]	Zhang, H., Liu, Y., & Xie, J.G. (2007). Research on Profit Model of Urban Rail Transit based on Sustainable Development. Urban Rapid Rail Transit, 20(05), 9-13.
[3]	Xue, L., Yang, Y.T., & Jiang, D.B. (2011).Discussion about Profit Model of Integration Development of Rail Transit and Land. Urban Rapid Rail Transit, 24(05), 14-17.
[4]	Liu, J.L., & Zeng, X.G. (2004). Discussion about Urban Rail Transit Construction Financing and Profit Development. Urban Mass Transit, 04, 17-21.
[5]	Qin, C.B. (2004). Profit Model Analysis and Research on Relevant Policies of Nanjing Metro Company. Dissertation, Southeast University.
[6]	Wang, H. (2005). Research on How to Construct Urban Rail Transit Profit Model. Urban Rapid Rail Transit, 06, 1-4.
[7]	Xu, G. (2009). Research on MTR Profit Model. Dissertation, Southwestern University of finance and economics.
[8]	Yan, P. (2017). Research on Rail Transit Profit Model. China Journal of Commerce, 23, 10-11.
[9]	Shi, J.N. (2011). Analysis of the Positive Externalities for MTR Profit Model. Railway Transport and Economy, 33(06), 81-85.
[10]	Cai, W. (2013). Analysis of the Marketization Path of Urban Rail Transit Based on the MTR Mode. Urban Mass Transit, 16(09), 10-13+22.
[11]	Wu, Q.N., & Ye, X.F. (2016). Investigation and Analysis of Typical Urban Rail Transit Operation Revenue at Home and Abroad. Urban Mass Transit, 19(12), 106-110.
[12]	Ding, M. (2018). MTR Profit Model and its Enlightenment on Zhengzhou Metro. Contemporary Economics, 05, 66-67.
[13]	MTR Corporation Limited. Annual Report for the Year 2012 [EB/ OL]. [2015-06-20]. http: / /www. Mtr. com. Hk /ch /corporate /investor / 2012 frpt. Html
[14]	MTR Corporation Limited Annual Report for the Year 2013 [EB/ OL]. [2015-06-20]. http: / /www. Mtr. com. hk/ch/corporate/investor /2013frpt. html
[15]	MTR Corporation Limited. Annual Report for the Year 2014 [EB/ OL]. [2015-06-20]. http: / /www. Mtr. com. hk/ch/corporate/investor /2014frpt. html
[16]	Zhang, H., & Ding, X.H. (2013). Accounting Treatment of Asset Depreciation and Financing Interest in Urban Rail Enterprises Based on Full Life Cycle. Urban Rapid Rail Transit, 26(4), 47-51.

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APA Style

Hong Zhang, Mei Hou. (2018). Analysis and Reference of the Profit Structure of MTR. European Business & Management, 4(3), 92-100. https://doi.org/10.11648/j.ebm.20180403.15

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ACS Style

Hong Zhang; Mei Hou. Analysis and Reference of the Profit Structure of MTR. Eur. Bus. Manag. 2018, 4(3), 92-100. doi: 10.11648/j.ebm.20180403.15

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AMA Style

Hong Zhang, Mei Hou. Analysis and Reference of the Profit Structure of MTR. Eur Bus Manag. 2018;4(3):92-100. doi: 10.11648/j.ebm.20180403.15

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@article{10.11648/j.ebm.20180403.15,
  author = {Hong Zhang and Mei Hou},
  title = {Analysis and Reference of the Profit Structure of MTR},
  journal = {European Business & Management},
  volume = {4},
  number = {3},
  pages = {92-100},
  doi = {10.11648/j.ebm.20180403.15},
  url = {https://doi.org/10.11648/j.ebm.20180403.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20180403.15},
  abstract = {As the backbone of urban public transport, metro has a great promoting effect on the development of social economy. However, most metro companies suffer losses in the world. With the expansion of business scope, the diversification of business types and increased profit channels, MTR has become one of the models of the global railway operation industry. To refer to MTR's management experience, and explore its key business to realize profit and its practical lessons, it’s necessary to analyze the profit structure of MTR from 2012 to 2014. According to characteristic of MTR business, the profit structure is reconstructed as three major business sectors: passenger transport and its related business, property and its related business, and other business, and the profit structure from 2012 to 2014 is analyzed from total profit constitution and profit source structure. The results show that MTR’s profit source structure is highly consistent with its business model “Railway + Property”, its passenger transport and property all have strong profitability and each accounting for half of the total profit. For the metro enterprises in mainland China, it should adhere to the development pattern of “Metro + Property” and give full play to the linkage effect of metro and property development, so as to achieve self-sustainable development. It should not only manage well passenger transport and its related businesses, but also manage well property and its related businesses. At the same time, it is also of great significance to explore the flexible fare adjustment mechanism, control and reduce the cost of passenger transport and innovate the valuation model of investment property, etc.},
 year = {2018}
}

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TY  - JOUR
T1  - Analysis and Reference of the Profit Structure of MTR
AU  - Hong Zhang
AU  - Mei Hou
Y1  - 2018/10/08
PY  - 2018
N1  - https://doi.org/10.11648/j.ebm.20180403.15
DO  - 10.11648/j.ebm.20180403.15
T2  - European Business & Management
JF  - European Business & Management
JO  - European Business & Management
SP  - 92
EP  - 100
PB  - Science Publishing Group
SN  - 2575-5811
UR  - https://doi.org/10.11648/j.ebm.20180403.15
AB  - As the backbone of urban public transport, metro has a great promoting effect on the development of social economy. However, most metro companies suffer losses in the world. With the expansion of business scope, the diversification of business types and increased profit channels, MTR has become one of the models of the global railway operation industry. To refer to MTR's management experience, and explore its key business to realize profit and its practical lessons, it’s necessary to analyze the profit structure of MTR from 2012 to 2014. According to characteristic of MTR business, the profit structure is reconstructed as three major business sectors: passenger transport and its related business, property and its related business, and other business, and the profit structure from 2012 to 2014 is analyzed from total profit constitution and profit source structure. The results show that MTR’s profit source structure is highly consistent with its business model “Railway + Property”, its passenger transport and property all have strong profitability and each accounting for half of the total profit. For the metro enterprises in mainland China, it should adhere to the development pattern of “Metro + Property” and give full play to the linkage effect of metro and property development, so as to achieve self-sustainable development. It should not only manage well passenger transport and its related businesses, but also manage well property and its related businesses. At the same time, it is also of great significance to explore the flexible fare adjustment mechanism, control and reduce the cost of passenger transport and innovate the valuation model of investment property, etc.
VL  - 4
IS  - 3
ER  -

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Author Information

Hong Zhang

Shenzhen Metro Group Co., LTD., Shenzhen, China
Mei Hou

Shenzhen Metro Group Co., LTD., Shenzhen, China

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APA Style

Hong Zhang, Mei Hou. (2018). Analysis and Reference of the Profit Structure of MTR. European Business & Management, 4(3), 92-100. https://doi.org/10.11648/j.ebm.20180403.15

Copy | Download

ACS Style

Hong Zhang; Mei Hou. Analysis and Reference of the Profit Structure of MTR. Eur. Bus. Manag. 2018, 4(3), 92-100. doi: 10.11648/j.ebm.20180403.15

Copy | Download

AMA Style

Hong Zhang, Mei Hou. Analysis and Reference of the Profit Structure of MTR. Eur Bus Manag. 2018;4(3):92-100. doi: 10.11648/j.ebm.20180403.15

Copy | Download

@article{10.11648/j.ebm.20180403.15,
  author = {Hong Zhang and Mei Hou},
  title = {Analysis and Reference of the Profit Structure of MTR},
  journal = {European Business & Management},
  volume = {4},
  number = {3},
  pages = {92-100},
  doi = {10.11648/j.ebm.20180403.15},
  url = {https://doi.org/10.11648/j.ebm.20180403.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20180403.15},
  abstract = {As the backbone of urban public transport, metro has a great promoting effect on the development of social economy. However, most metro companies suffer losses in the world. With the expansion of business scope, the diversification of business types and increased profit channels, MTR has become one of the models of the global railway operation industry. To refer to MTR's management experience, and explore its key business to realize profit and its practical lessons, it’s necessary to analyze the profit structure of MTR from 2012 to 2014. According to characteristic of MTR business, the profit structure is reconstructed as three major business sectors: passenger transport and its related business, property and its related business, and other business, and the profit structure from 2012 to 2014 is analyzed from total profit constitution and profit source structure. The results show that MTR’s profit source structure is highly consistent with its business model “Railway + Property”, its passenger transport and property all have strong profitability and each accounting for half of the total profit. For the metro enterprises in mainland China, it should adhere to the development pattern of “Metro + Property” and give full play to the linkage effect of metro and property development, so as to achieve self-sustainable development. It should not only manage well passenger transport and its related businesses, but also manage well property and its related businesses. At the same time, it is also of great significance to explore the flexible fare adjustment mechanism, control and reduce the cost of passenger transport and innovate the valuation model of investment property, etc.},
 year = {2018}
}

Copy | Download

TY  - JOUR
T1  - Analysis and Reference of the Profit Structure of MTR
AU  - Hong Zhang
AU  - Mei Hou
Y1  - 2018/10/08
PY  - 2018
N1  - https://doi.org/10.11648/j.ebm.20180403.15
DO  - 10.11648/j.ebm.20180403.15
T2  - European Business & Management
JF  - European Business & Management
JO  - European Business & Management
SP  - 92
EP  - 100
PB  - Science Publishing Group
SN  - 2575-5811
UR  - https://doi.org/10.11648/j.ebm.20180403.15
AB  - As the backbone of urban public transport, metro has a great promoting effect on the development of social economy. However, most metro companies suffer losses in the world. With the expansion of business scope, the diversification of business types and increased profit channels, MTR has become one of the models of the global railway operation industry. To refer to MTR's management experience, and explore its key business to realize profit and its practical lessons, it’s necessary to analyze the profit structure of MTR from 2012 to 2014. According to characteristic of MTR business, the profit structure is reconstructed as three major business sectors: passenger transport and its related business, property and its related business, and other business, and the profit structure from 2012 to 2014 is analyzed from total profit constitution and profit source structure. The results show that MTR’s profit source structure is highly consistent with its business model “Railway + Property”, its passenger transport and property all have strong profitability and each accounting for half of the total profit. For the metro enterprises in mainland China, it should adhere to the development pattern of “Metro + Property” and give full play to the linkage effect of metro and property development, so as to achieve self-sustainable development. It should not only manage well passenger transport and its related businesses, but also manage well property and its related businesses. At the same time, it is also of great significance to explore the flexible fare adjustment mechanism, control and reduce the cost of passenger transport and innovate the valuation model of investment property, etc.
VL  - 4
IS  - 3
ER  -

Copy | Download