"As regards the financial position of the company, we are in a fairly sound position and, if you pass the dividend now "recommended, the company will commence the new year with a surplus of liquid assets amounting to approximately $33,000." said Mr. A. J. Welch, chairman, at the 25th annual general meeting of shareholders of the Cheng Rubber Estates, Ltd., held on Thursday at 99 Canton' Road at 1145 a.m.
Mr. "Welch was supported by Sir Elly Kadoorie and "Mr. W. BO. Middleton (directors), and Mr. D. Levy, secretary, while shares represented totalled 374000.
The chairman said:—
Theraccounts now before you disclose a profit of Shai $18,548.71, as compared with a profit of S'hal $17,872.00 for the previous year. This profit was earned despite the fact that the total expenditure on Revenue \eed.:! was 4.90 pence per pound az against 3.17 pence per pound last year. About three farthings of this Increased cost is attributable to re~ striction, and the consequent smaller Output over which the overhead expenses could be spread, thus there is practically exactly one penny per ound difference between the revenue expenditure for the two years, This equivalent to 3% Straits cenis per ound, of which one cent per pound represents a special cess made by the Government since the advent of restriction on the output from the estates, The remaining increase of 2M cents per pound is due to several causes, amongst which are subordinate, staffs as well as the Penang agents had their remuneration restored the level which pertained before the slump, that the sum of $1,482 was spent on the upkeep of buildings, and that the upkeep of the gardens cost nearly $2,000 more than it did during the previous year owing to the ne= cossity of removing the rough growths especially on Chempedak " Estate, that had been allowed to grow during the slump.
"The only capital expenditure of any importance during the year was the sum of $5,991.80 spent under the heading of buildings and machinery and covering the cost of two new aluminium coagulating " tanks for Chang Estate and a new smoke house for Chempedak Estate, As regards the financial position of the company we are in a fairly found position and, if you pass the dividend now recommended, the company will commence the new year with a surplus of liquid assets amounting to approximately $33,000. regret to say that at the moment our investments show a material re notion in value due to the unpre: cedented conditions that prevail in the local money market. This need not worry you unduly, however, since the Investments are of a permanent nature and we are not likely to find It necessary to realize them. Any recovery in the local ancial Situation should result in a marked appreciation in the value of these debentures and already since the end of June over $2,000 of the deprecia tion has been recovered.
Turning now to planting matters there was no change in the planted area of either estate during the year.
The fourteen acres of young rubber fon Cheng Estate are reported to be first class condition and are ready to be taken into the tapping round a any time hat i is thought desir do 80.
All rough growths throughout the planted area have now been removed and as @ consequence the cost of upkeep during the current year should show a decrease.
Neither pests nor diseases gave any trouble during the year and speaking generally the estate may be said he_in. good condition throughout.
On Chempedak Estate the young area of twelve acres is making very slow progress due to the poor nature fof the soil and the desirability of applying some artificial manure now under consideration, statement of accounts for the year ended Tune 30, 1035, as presented be adopted land passed; proposed by Br. A. J. Welch Jand Seconded by Br. W. B. 0, Middleton.
"That a dividend of 2'Standard Shang-hal Dollar Cents por share be pald: proposed by Mr. A. J. Welch and seconded and Sie Elly' Kadoorie, [of the company be by Mr. DE. Levy and seconded by Mr. lected a direct paved by hr. Chang Libvany and scoond-Baby Bes BE bevy.
that Hesre, Lows, Bingham and Matthews be reclcted auditory of the Company: proposed by Me. D. fand seconded by Mr. M. B. Dangoor.
Text read from the printed page and cleaned; old type leaves the occasional error.