MTR Corporation (00066) and the Government entered into a settlement agreement for the Hong Kong section of the High Speed Rail and the Sha Zhong Line project to comprehensively resolve historical disputes and claims

According to the Zhitong Finance App, MTR Corporation (00066) issued an announcement. On October 2, 2026, the company and the government will separately enter into two settlement agreements (the “High Speed Rail (Hong Kong Section) Settlement Deed” and the “Sha Zhong Line Settlement Deed” (“High Speed Rail (Hong Kong Section) Settlement Deed”) for the high-speed rail (Hong Kong section) project further defined by the high-speed rail (Hong Kong section) agreement described below, and the “Sha Zhong Line Settlement Deed”, collectively referred to as the “Sha Zhong Line Settlement Deed”) without any party acknowledging any responsibility. Accordingly, with a few limited exceptions, the Company and the Government have reached amicable settlements with respect to all disputes, differences, claims and potential claims arising out of or relating to the following matters: (i) 2008 High Speed Rail (Hong Kong Section) Preliminary Trust Agreement, 2010 High Speed Rail (Hong Kong Section) Entrustment Agreement, 2015 High Speed Rail (Hong Kong Section) Agreement and related deeds in 2020 (collectively, the “High Speed Rail (Hong Kong Section) Agreement”); and (ii) the 2008 Shazhong Line Preliminary Entrustment Agreement; and (ii) the 2008 Shazhong Line Preliminary Entrustment Agreement, the 2011 Shazhong Line Preliminary Project Entrustment Agreement The annual Sha-Zhong Line Entrustment Agreement (“Sha-Zhong Line Entrustment Agreement 3”), the 2016 contract 901, and the relevant contracts for 2025 (collectively, the “Sha-Zhong Line Agreement”).

The settlement agreement resolves major disputes and differences between the company and the government relating to the high-speed rail (Hong Kong section) agreement and the Sha-China Line agreement, terminates existing reservations of rights, and provides extensive mutual exemptions for past and potential claims. A number of continuing obligations and residual liabilities specified in the settlement agreement will remain in effect.

The Board believes that a settlement agreement avoids potentially lengthy, complicated and costly dispute resolution procedures, and removes significant litigation risks and uncertainties relating to future claims. The settlement agreement also avoids significant loss of management time and resources, and helps the company maintain a constructive and cooperative relationship with the government regarding railway operations and future infrastructure projects.