Kowloon Canton Railway 6-K Kowloon-canton Railway Corporation

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of September 2007

KOWLOON-CANTON RAILWAY CORPORATION

(Translation of registrant’s name into English)

KCRC House, 9 Lok King Street, Fo Tan, Sha Tin, New Territories, Hong Kong

(Address of principal executive office)

[Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F   þ          Form 40-F   o

[Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes   o          No   þ

[If “yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2 (b):
82-                    .]

Kowloon-Canton Railway Corporation
Consolidated Income Statement (HK$ million)
for the half-year ended 30 June 2007

Year-ended				Half-year ended
31 Dec 2006				30 Jun 2007			30 Jun 2006
(Audited)				(Audited)			(Unaudited)
	5,622		Revenue		2,838			2,736
	3,042		Less: Operating costs before depreciation and amortisation		1,531			1,474
	2,580		Operating profit before depreciation and amortisation		1,307			1,262
	2,288		Depreciation and amortisation		1,153			1,137
	292		Operating profit after depreciation and amortisation		154			125
	(316	)	Net interest and finance expenses		(432	)		(147	)
	427		Profit from property development		—			—
	27		Share of profit of associate		16			11
	430		Profit/(loss) before unrealised gains/losses		(262	)		(11	)
	(198	)	Gains/(losses) on changes in fair value of derivative financial instruments and hedged borrowings		283			(112	)
	99		Net valuation gains on investment properties		6			43
	331		Profit before taxation		27			(80	)
	(53	)	Income tax		(8	)		20
	278		Profit/(loss) for the period wholly attributable to the sole shareholder of the Corporation		19			(60	)

Kowloon-Canton Railway Corporation
Consolidated Balance Sheet (HK$ million)
As at 30 June 2007

As at			As at		As at
31 Dec 2006			30 Jun 2007		30 Jun 2006
(Audited)			(Audited)		(Unaudited)
		ASSETS
	59,876	Fixed Assets		59,042		60,513
	5,524	Interest in leasehold land held for own use under operating leases		5,471		5,573
	13,644	Construction in progress		15,145		11,887
	1,389	Deferred expenditure		1,490		1,236
	449	Properties under development		457		446
	99	Interest in associate		115		83
	4,022	Loan to non-controlled subsidiary		4,214		4,031
	92	Derivative financial assets		70		73
	362	Stores and spares		367		379
	571	Interest and other receivables		463		527
	1,947	Cash and cash equivalents		545		3,793
	87,975			87,379		88,541
		LIABILITIES
	—	Short-term bank loans		1,013		—
	2,459	Interest and other payables		2,427		2,756
	2,054	Accrued charges and provisions for capital projects		2,118		2,295
	540	Derivative financial liabilities		293		491
	19,212	Interest-bearing borrowings		17,839		19,265
	527	Deferred income		562		962
	3,250	Deferred tax liabilities		3,257		3,177
	28,042			27,509		28,946
	59,933	NET ASSETS		59,870		59,595
		CAPITAL AND RESERVES
	39,120	Share capital		39,120		39,120
	20,813	Reserves		20,750		20,475
	59,933			59,870		59,595

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		KOWLOON-CANTON RAILWAY      CORPORATION
Date	4 September 2007	By	/s/ Jeffrey Cheung
		Name:	Jeffrey Cheung
		Title:	Deputy Director-Finance