Extract from the Hong Kong Daily Press. of 27th May, 1907.
A. S. WATSON AND CO., LD.
The twenty-second annual ordinary general meeting of shareholders in Messrs. A. S. Watson and Co., Ld., was held at the offices of the Company in Alexandra Buildings on Saturday afternoon. Mr. H. Humphreys presided, other shareholders present being Sir Paul Chater and Mr. H. P. White (Consulting committee), Mr. J. A. Tarrant (Secretary), and Messrs. D. E. Clark and E. C. Lane.
The SECRETARY read the notice convening the meeting.
The CHAIRMAN said Gentlemen,-The report and statement of accounts having been in your hands for some days, I will, with your permission, take them as read.
Net profits for the year amount to $102,366.03 as against $125,408.59 for the previous year; showing a falling off of $23,042.56. In our report last year on the working for 1905 we stated that we had benefited to some extent from the continued high rate of exchange but that business during the latter half of 1906 depressed. During the year the rates of exchange have ruled very much higher, the average rate for 1906 being approximately 2/1$\frac{3}{4}$d, as against 1/11$\frac{3}{4}$d for 1905; and whilst on the one hand the company has had the advantage of the increased purchasing power of the dollar, on the other, it has had to meet, or rather anticipate, the reasonable demand of the public in correspondingly reducing prices. So that the benefits accruing from the high exchange are very doubtful. There has been a continued and increased depression in trade in Hongkong and throughout China generally, and in common with nearly every trading and industrial company we have felt this depression and to it we mainly attribute the diminished profits shown. I would also specially mention that we have suffered considerable loss through the depreciated value of subsidiary coins, and I estimate that our total loss in 1906 from this cause to be about $15,000, as against $6,000 in 1905. Considering all these circumstances I think the results of the year's working are not satisfactory. Turning to the accounts you will find under the heading of "Building improvements" that there has been an increase of $34,131.04. Most of this increase has been incurred by additions and improvements to our business premises in Manila. These improvements were not completed at the end of the year so that there will be a further addition to this account during 1907. We expect, however, to be able to write off the whole of this expenditure in four years out of increased revenue; as besides largely increased sub-lettings the Manila branch has already benefited by increased cash sales. The extra accommodation provided for its soda water factory should also prove remunerative. "Aerated water and other machinery and plant account" shows additions amounting to $20,034.16, which have been for the most part occasioned by the opening of a new factory in Shanghai and further additions to our plant at Amoy. Amongst our assets Marine Lot No. 293 appears for the first time. This lot was purchased with the approval of your Consulting Committee in November last, and the object of your General Managers is eventually to remove the Des Voeux Road soda water factory to that site, where there will be four times as much room and greater conveniences for manufacture at less cost than obtains at present. San Jacinto property, Manila, has been increased by $8,028.60 which represents the price paid for a strip of land with buildings which almost completely shut our property off from the public road. We trust the disposition of the profits meets with your approval. Following our usual policy we have proposed to set aside $25,000 to write off as depreciation of machinery and plant, furniture and fittings, etc. In a business like ours $25,000 a year is the sound minimum amount, compatible with finance, that should be written off and I would prefer to see it larger. The business for the first four months of this year, I regret to say, shows no signs of improvement. I have no further remarks to make, but if any shareholder has any questions to ask, I shall be pleased to answer them.
Mr. LANE-I would like to know whether the reduced volume of trade is general in all the branches, or in Hongkong in particular.
The CHAIRMAN-There has been a falling off in the volume of trade, and also in profits, at every branch except one. There has also been slight falling off in Hongkong, and a falling off in Manila.
Messrs. F. MAFFLAND and W. H. PORRA were reappointed auditors on the motion of Mr. CLARK, seconded by Mr. LANE.
The CHAIRMAN-That is all the business, gentlemen. Thank you for your attendance. Dividend warrants will be ready on Monday.
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527
JUL 9 1907
Extract from the Hong Kong Daily Press. of 27th Thayy, 1907.
A. S. WATSON AND CO., LD.
The twenty-second annual ordinary general meeting of shareholders in Messrs. A. 8. Watson and Co., Ld., was held at the offices of the Company in Alexandra Buildings on H. Humphreys Saturday afternoon. Mr. presided, other shareholders present baing Sir Paul Chater and Mr. H. P. White (Consulting committee), Mr. J. A. Tarrant (Secretary), and Mears. D. E. Clark and E. C. Lane.
The SECRETARY read the notice convening the meeting.
The CHAIRMAN said Gentlemen,-The report and statement of accounts baving been in your hands for some days, I will, with ho total your permission, take them as read.
net profits for the year amount to $102,366.03 as against $125.408,59 for the previous year; abowing a falling off of $23,042.56. In our report last year on the working for 1905 we stated that we had bonefited to some extent from the continued high rate of exchange but thst business during the latter balf of 1906 depressed. Daring the year Was the rates of exchange have ruled very much higher, the average rate for 1906 being approximately 2/14, as against 1/114 for 1905; and whilst on the one band the company has had the advantage of the increased pur- chasing power of the dollar, on the other, it has had to most, or rather anticipate, the reasonable demand of the public in correspondingly reducing prices. So that the benefits accruing from the high exchange are very doubtful. There bas been a continued and increased depression in trade in Hongkong and throughout China generally, and in common with nearly every trading and industrial company wo have felt this depression and to it we mainly attribute the diminished profits shown. I would also specially mention that we have suffered con siderable loss through the depreciated value of subsidiary coins, and I estimate that our fotal lose in 1906 from this cause to be about $15,000, as against $6,000) in 1905 Con- sidering all these circumstances I think the resalts of the year's working are not neatis. fastory. Turning to the accounts you will flud under the heading of Railding improve. meuts" that there has been an increase of $34,131.04. Most of this increase bas been incurred by additions and improvements to our business premises in Manila. These im- provements were not completed at the end of the year so that there will be a further
22696
527
JUL 9 1907,
addition to this account during 1907. We expect, however, to be able to write off the whols of this expenditure in four years out of increased revenue; as besides largely increased sub-lettings the Manila branch has already benefited by increased cash sales. The extra accommodation provided for its goda water factory should also prove remunerative. Aeratod water and other machinery and plant account shows additions amounting to 320,034.16, which have been for the most part occasioned by the opening of a new factory in Shangbai and further additions to our plant at Amoy. Amongat, our assets Marine Lot No. 293 ap- pears for the first time. This lot was purchased with the approval of your Consulting Com mittee in November last, and the object of your General Managers is eventually to remove the Des Voeux Road soda water factory to that site, where there will bo four times as much room and greater conveniences for manufacture at less cost than obtains at presont, San Jacinto property, Manila, has been in- creased by $8,028.60 which represents the price paid for a strip of land with buildings which almost completely shut our property off from the public road. We trust the disposition of the profits meets with your approval. Following our usual policy we have proposed to set aside $25,000 to write off as depreciation of machinery and plant, furniture and fittings, etc. In a business like ours $25,000,00 a year is the sound zinimum amount, compatible with finance, that should be written off and I would prefer to see lit larger. The business for the frst four months of this year, I regret to say, shows no signs of improvement. I have no fur- ther remarks to make, but if any shareholder has any questions to ask, I shall be pleased to answer them,
Mr. LANE-I would like to know whether the reduced volume of trade is general in all the branches, or in Hongkong in particular.
The CHAIR MAN-There has been a failing off in the volume of trade, and also in profits, at every branch except one. There has also been slight falling off in Hongkong, and a falling off in Manila.
Messrs. F. MAFFLAND and W. H. Porra were reappointed auditors on the motion of Mr. CLARK, seconded by Mr. LANE.
The CHAIRMAN-That is all the business, gentlemen. Thank you for your attendance. Dividend warrants will be ready on Monday.
No comments yet.
Private notes are available after approval.