Our stocks, valued at Tls. 2,290,- 796.06, less reserve for market fluctuation of Tls. 300,000, stand in the balance sheet at Ts. 1,990,796,06, showing a reduction, as compared with the previous year, of Tls. 228,- 640.54. This reduction in our stock has been brought about by the conservative. restriction of operations of the company due to unsettled conditions in China which do not}. make development of trade beyond the areas immediately surrounding treaty ports sufficiently safe for the the possibilities of business to be done. The company was handicapped in its operations during the past year as the result of having to carry on its sawmill work in Shanghai under difficult conditions in the temporary mill fitted up after the fire which destroyed our main sawmill in the autumn of 1921. Construction of the company's new plant in Shanghai, built of steel and reinforced concrete, has been completed and the installation of the machinery in the building will be completed shortly. When the new plant is in full operation, it is hoped its economy in working will add considerably to our profits, as the equipment of this new mill is up-to-date in every respect.
A re-valuation of the properties of the company at its various branches in China was undertaken as at February 28 last, and shows, according to survey reports and accounts submitted, a substantial increase in the values of the company's holdings, which has _been carried direct to reserve fund. A readjustment of the reserve funds account has been effected, and after writing off depreciation to the amount of Tls. 263,889.13 from the company's investments, mill machinery, floating and general equip-~ ment, as set out in the reserve funds readjustment account, the balance held under depreciation reserve, as well as investment and stock fluctuation reserve, was transferred to ordinary and special reserves. The company's reserves, as set out in the balance sheet, now stand at the total of Ti. 2,400,000. In addition to the depreciation written off our book values on plant, ete., the sum of Tis, 31,474.04 was expended during the year in renewals and repairs and was charged to general working account. With the very liberal depreciation which has been provided for, the company's plant now stands at book values estimated at approximately two-thirds of cost of replacement, and is throughout in excellent condition. Our obligations to our bankers, the Hongkong Shanghai Banking Corporation, which consist principally of trade acceptances, have, during the past year, been reduced by Tls. 727,- 523.84, This, gentlemen, is all I have to say regarding the accounts. I shall now be pleased to answer questions which any shareholder may desire to ask.
No questions were asked and the following resolutions were passed unanimously That the report and accounts, as presented, be passed and that the balance at credit of profit and loss account of Tls. 201,833.27 be appropriated - as follows:—To pay dividend of 8 per cent., absorbing Tls. 40,000, and to carry forward to new account for the financial year 1923 the sum of Ts. 161,833.27.—Proposed by the Chairman and seconded by Mr. W.J.N. Dyer.
That the appointment of Mr. R. Mee. Dalgliesh as a director of the company is confirmed.—Proposed by' the Chairman and seconded by Mr. C. L. Seitz.
That Mr. O. L. Seitz be re-elected as a director of the company.—Proposed by Mr. W.J.N. Dyer and seconded by Mr. R. Mee. Dalgliesh.
Text read from the printed page and cleaned; old type leaves the occasional error.