The annual general meeting of the Now Engineering & Shipbuilding Works, La, took place on Thurs day afternoon' in the rooms of the Shanghai General " Chamber Commerce, "North-China Daily News" Building, 17 The Bynd, Mz. H. E, Arnbold,'the chairman,' presiding." Supporting Me. Aruhol were Messrs. A. W. Burkill, Davey, A. L. Blechynden. (retiring managing director), A. W. Brankston (the new managing director), N. Maas (manager and director) and C. 4. Member, AGA, secretary, 'There was an attendance Tepresenting 64,382 siates, 'The secretary having read the ing the meeting and auditors' report, the chairman, sion, 1 will take the report and accounts for the year ending December 21, 1927, "as read, they having been in your hands for some *¥ien addressing you lst wen addressing you last year. I was able to say that, although 1926 had been a year of considerable depression in the China trade, it had been possible to present an account to you which compared favourably with that of the previous year, I pointed out to you that a process of general reorganization was taking place and that we might Jock forward hopefully to a successful year.
The utmost attention has been and is being paid to that most ficult problem which so many of us have to face, ie. the curtailment of overhead charges. The process necessarily a slow one, but con-iderable progress has been made and we have every reason to hope that a most noticeable benefit will be derived therefrom during the coming year.
Steady Improvement The new executive of the works has devoted much energy to maintaining and. increasing the company's activities, and ¥ am gratified
doubled the amount of repair work handled in 1928, I indicated in my speech last veir that a steady improvement in this. direction was taking places] this -not only continued, but increased even beyond our hopes. "New construction: work for the year, it addition to a number of Small craft, lighters, etc, included the completion of a bulk all steamer for the Standard Oil Ca. of New York's service on the Yangtze, an improved sister ship to the vessel built' for: the same owners the previous year. Both these. vessels are, I understand, giving the utmost satisfaction. This activity, taken in conjunction with the reduction in certain of our expenses, enables us to put before you a balance shot which, T'think, you will find satisfactory.
Before dealing -with Sgures, 1 would "refer to my remarks last year relative to the construction of new dock. The political situation 185, in the meantime, remained obscure and your board has, therefore, Hot considered it advisable t> proceed with this matter, I do not wish you to think that it has beea abandoned, but your board is strongly of the opinion that no extension should be proceeded with until the political outlook is clear.
The Ichang Works You will also remember that 1 touched on the unfortunate interruption in the development of our Tehang enterprise. I regret I have nothing further to inform you of im this connection, The hoped-for improvement. in conditions on the Upper Yangtze has not developed, although the outlook is brighter, your board has not yet felt justiNed resuming operations. The machinery and material for buildings are all ready, and,, a8 4000 a3 sufficient encouragement offers and conditiong. warrant, we shall" proceed with the completion "of "the Tehang works,
Engineering' Works, which ts the near future the Upper ale NOT opera hat tu the
name tudor which we shall operate there, will have. been success: {ally Tnunched on its career, The Balance Sheet will now deal with the balance sheet, The amount standing to the credit of profit and loss "account including the balance curried for-wand from 1926 amounts to Tis, 250,884.23, Ta preparing the accounts this year, we have made a alight change inthe treatment of depreciation, no charge having been made, but you Will be asked to. authorize the transfer of Tls. 27,703.48 from the Irofits "us shown, to depreciation recount, which will then bring this fund up toa round figure of 7} lakhs.
Tt is then proposed, with your sanction, to pay the dividend on the preference shares. absorbing Tls. 120,000 and a dividend of eight per gent. on the ordinary shares which Will call for Tis, 84,000.00." After these appropriations, there will be a balance to carry forward of Tls. 19,120.75, Dealing with the assets side, land and plant show slight reductions, whilst dock account shows an increase of Tis, 66,077.62, due to the installation of elestrie pumps.
Stocks and works in progress show an increase of a little over Tls. 80,000.00, thin figure of necesity being variable according to conditions, Sundry debtors—Tls. 456,697.25—the highest at which this account has ever appeared in any of your balance sheets, but gives no cause for the slightest apprehension. A very considerable amount has ready been liquidated. To a large extent, the increase has brought about by the strip amount of repair work handled, particularly towarils the end of the year, the month of December recording greater activity than during any month in the history of the company.
Text read from the printed page and cleaned; old type leaves the occasional error.