Economic Conditions Cause Business Curtailment Bad Debts Recovered The annual meeting of the stock holders of China Finance Corporation, Federal Me, U.S.A,, was held at 9 Avenue Edouard Vil, Shanghai, at 1030 am., on March 15.
Mr. RH, Parker, president of the Corporaiion, presided and Mr, V. O. "Remedios was appointed secretary of the meeting.
Shareholders present represented 19,250 shares and 200,171 shares were represented by proxy.
The chairman sol The results of operations for the year under review show a profit of $14,905.52, plus $10,205.80 recovered from bad debts previously written You are all no doubt aware of the severe conditions in Shanghai during the first six months of 1936, which fact caused your directors to deem it advisable to curtail business toa large extent which, naturally, affected the earnings.
Loans payable have been reduced during the year 1036. by $172,358.33 and sundry accounts payable reduced by $20,195.11.
comparison of the reserve shown in this year's balance sheet with that of last year's indicate a decrease of $1,248,020.20, This large reduction is due mainly to the writing off of various old accounts considered un-collectable, against reserves set up in previous years to meet these particular accounts, 'A review of the accounts for collection at the beginning of the year disclosed that "Frozen Accounts" on which no interest was being earned, amounted to $580,000. Due to inten sive collection activities and to the disposal of our interest in the Cathay Grand Corporation, we have snee segeded in collecting $230,500.00 of this tied-up capital—a. liquidation of 41 Per cent, of such frozen assets, After a careful review of old a counts, your directors considered a further reserve of $32,005.44 desir-fable and this amount has been set aside, subject to your approval, in the Balance sheet,
Text read from the printed page and cleaned; old type leaves the occasional error.