Turning to the Balance Sheet, the increase of both liabilities and assets lis due to the exchange rate on Hongii¢ Kong. On the liabilities side, a further sum of $28,805.16, assessed according to the formula of our Auditors, has been added to "Building. Depreciation Reserve." The Com: pany's borrowings against properties were made almost entirely in Hongkong, thus the gute for "Loans secured on Company's Properties automatically increases on account of exchange this year. On the assets side, the value of Shanghai properties Increased by $58,509.21, due to our aking over "an income-producing Property which was previously mort aged to us. This property has since been sold at a profit. "Furniture, Fittings Equipment and Motor Car" have all been written down. "Mortgage Loans" and "Mortgages Discounted" have actually been reduced, but again Hongkong figures, entered Into our books at the prevailing exchange rate, practically doubled those for last year. Since the end of the financial year, both of these items have been greatly reduced through our having' taken over. a very desirable fully-developed prop: erty, and one of our Mortgagors having repaid his loan. "Loan against Securities" was reduced during the year by $15,500.00, The Feserves against "Accrued Interest H4 Receivable", Outstanding Rents Receivable", and "Sundry Persons" are quite adequate. "Cash in Banke and on Hand" discloses a liquid position, enabling us fo meet any and all emer-
Developed Prepertes shall now give you a brief outline of the position in regard. to. our Aleveloped properties: Capable' man. agement, plus the. excellent 'Tood Served in "Meghurst" continue toil the building to capacity, fully justly: Ing "the investment tad' in' this enterprise. "Our shops, however, are thowing the retin. previously Feceived and we shall have to await tome' improvement in business fon: erally before we can expect a return normal income from this soures, Rent collections in the Internation Seltlement, the Western District and the French, Concession were higher
Text read from the printed page and cleaned; old type leaves the occasional error.