Net Profit of $13,566.79 M lade: Chairman Says That There Are Signs That the Worst is Over The hope that the properly market wax now on the road to recovery was expressed by Mi Dee.
Seventh mortgage previously discounted and aaranteed to another company. have already mentioned the reserve established against this ne defaulting 'A repay! jroveil the Joan against securities, Ca. Lid, held at the company, the chal Header ilarris, G. E. 8 mate and Yusen Yeo, directors, Mr. W. A. Il, Duff, secretary, and share-elders representing, 152,200 sh The Chairman said: The net profit for the year, alter the segregation of debenture Interest, adequate allow ance for depreciation of buildings and reserves against amounted 10 the sum the credit side, our commissions and fees earned actually higher than shown Serve was established against 2 pose sible small repayment. interest earned were about $20,000 Tower than last year, another $20,000 being reserved against possibility joss from one of our mortgages. Dure ing the year under review practically no revenue accrued from fees. on mortgages and sales of clients' pro-periies which, in previous years, added considerably to our revenue.
On the debit side, our general expenses decreased by more than $8,700 ud We expect to make a further improvement during present year, Increst paid was less, principally due to the lower amount required Hongkong. Annual building depre= ciation reserve was increased to cover additional buildings in Hongkong, The loss on sale of Hongkong properly resulted from our disposal of an unimproved portion of one of our properties. The developed portion Wwas retained as it earn a good turn on our Investment Turning to the balance sheet, on the liabilities side building deprecia~ tion reserve increased by the amount allotted this year. Loans on com-any's properties "war reduced by $180,000 from current cash accumu tion during the year and the balance was due to improvement in exchange between Shanghai and Honkong Sundry crediters was reduced by our paying off building cot completing our Macleod Fstate purchase.
1 have covered the most important items in the profit and" loss account and balance sheet in detail because some of you may feel that the small profit made this year places the com= pany close to the border line. It is our practice at all times to err on the side of conservatism and the ace counts before you include. reserva-Hons and allocations which, with any Improvement In the real estate situa tion during the next few years, will he very litle required.
Our own properties and the estates handled on behalf of others continued to receive the support of the renting public. "Medharst", in partiewlar showed a ood return on our Invest ment, We have, from the eommencement of the depression in Shanghai, endeavoured to understand and to meet sympathetically' the changed ancial conditions of our tenants reducing rentals, This meant a de~ trease in revenue to the company, but has resulted In our receiving above-average support from ott ten: anus and less vacancies in our pro-arties. It will take some time before properties In Shanghai are filled Dut signs are not wanting that the worst Is over and 1 am advised that most real estate companies are now experiencing slightly increased earn~ ings from their estates. While on the subject of revenue, it is perhaps fire ting to mention that we contemplate building some houses for rental Our large sub-division on {Macleod Road. The Council has recently im= proved the and surface and, public utilities In the form of electric light and telephone are now available. We are re-opening our vell and, when the water supply has been re-established, we shall be ina position to offer complete facilities to our tenants, The houses we propose to build. will offer the advantage ut unusually large gardens and will embody" the latest In comfort and convent On the assets side, cost of tand "Not Wanted due to our over one yard from Jost Dedueling two interim dividends of 7 here remains 1 to the credit of profit Togs account, Your directors put before you the recommendations 10 pay a tual dividend of 20 cents per: hare, Absorbing $60,000, place $29,000.00 {0 replanting reserve, write from buildings and furni $200 to British "Forces Rec Centres Fund and carry
Text read from the printed page and cleaned; old type leaves the occasional error.