Turning to the profit and loss account you will see that your Hongkong Branch has for the second year in succession made a profit of Shang-hot $4,096.78, Your directors fee! that pau much better'results will accrue in the year 1938 in Hongkong, as most of the business done by your managing director in South China is not refected yet in the figures for 1937. The branch is under the management of Miss Kelly, to whose untiring efforts these excellent results are undoubtedly due.
"The opening of the Singapore branch was decided last year Joni before the commencement of hostill= ties and although the figures show a loss of Shanghai $7,272.93, your direc. tors feel that the decision to extend our activities to this new territory twas & wise one apd that this branch will soon be on a well paying basis. The loss incurred is represented by preliminary non-recurring expenditure, mostly travelling expenses and salaries of Miss Kelly and Mr. Millington who had put the foundation of the branch on a sound basis, None of these expenses have been carried forward and from the reports to hand for 1938 your directors have be on a profit making basis from
Text read from the printed page and cleaned; old type leaves the occasional error.