The eighteenth annual general meeting of the shareholders in the Sua Manggis Rubber Ca. Ltd., wa: held on Wednesday at the head office of the company, 35 Peking Road. Mr, L. J, Cubitt presided and there were also present Messrs, A. K. Craddock and G, H, Wright, dircetors, and D. M. Butt, for the sceretaries, and other shareholders, the attendance representing 64,925, shares, The chairman said:—
Gentlemen:—The report and" accounts for 1927 which have been in your hands for a week of more, will have made you familiar with all principal features of the prst year's working, the condition of your property and the financial sults, This being so there is little to be added on this occasion as regards facts and Tam much too timid a skater to venture upon the thin ice of speculative prophecy.
Reason.for Reduced Profit The reduced profit for the year under review is sufficiently necounted for by the comparison of prices as shown in the report. It will be remembered that during 1026 the company was enjoying the benefit of forward contracts at $1 and $1.06 per Th, and the nett proceeds on an output of 156,000 1b. showed in the working account at Tls. 113,068 against, Tis, 92,656 for 175,000 Ib. The expenditure side of the account. shows an increase from Tis, 80,308 in 1926 to Tis, 62458. The chief 3 of which this increase is 100 for contour raining and cultivation, Ti are Tls. 2 for repairs to machinery, for salaries, Tis, 800 for roads and the remainder represents the cost of the additional 20,000 1b, of rub-
Shanghai charges and deprecintion were about the same as in the preceding year and there is also no material difference in the exchange at which Straits dollars have been converted into taels except in the ease of the balance at the Bank which was six points lower on December 31, 1927, than on the corresponding date in 1926, The Balance Sheet continues to show a very sound position—Sundry creditors and leave pay and passages reserve stand at Tls. 4, 052.89. against Tls. 8,957.97—sundry debtors are slightly less, being Tis, 505.82 against Tls. 1,020.38. ed on the other side by investments costing Tis, 98,522, You will have noted that on December 31, i927, these investments showed ad preciation of about 9 per cent. Thi Sepreciation however, was all the Tis, 36,800 Municipal 6 per cent. Loans costing an average of Tls. 90. On December 21, they were value ed at Tls. 84, In the meantime the market value has improved by four points and I think there is little fear of any loss on these invest ments unless for some unforeseen yeason we should have occasion to realize them in the near future, Cautious Policy Adopted 'The profit for the year is shown Tls. 24,018.26 ie, 12.6 per cent. on the' paid up capital of the ecm= pany. This amount plus Tle, 4,637. 46 brought in and less 5 per cent. interim dividend paid on December 8, 1927 gives a disposable balance of Tis, 25,155.72. There is ample ash in Shanghai, apart from cash in the F.M.S., a3 you will see, to pay a final dividend and had it not, been for the collapse of the rubber market which has resulted from the Home Government's recent action your directors would undoubtedly have recommended the payment of not leas than 5 per cent. making 10 cent, for the year, but in view of the feeling of insecurity as to the future of the industry eapecialas applicable to the smaller eatates, your directors feel bound. to conserve the resources of the company until the outcome of the present deliberations are known, I can only hope that you will approve of the cautious policy which your directors have thought advisable to adopt in the best interests of the whole body of shareholders and T fan assure you that should events justify it an interim dividend for the current year in place of a final for 1927 will receive the careful consideration of the Board.
Text read from the printed page and cleaned; old type leaves the occasional error.