1938-04-13 — Page 11

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HONG KONG DAILY PRESS

GENERAL

GREEN ISLAND CEMENT COMPANY HAVE GOOD YEAR

Rumours Of Profiteering Strongly Denied

ment its profits by arbitrarily ad- to a standard meriting the appro- The Chairman then proposed vancing prices.

bation" of your technical staff the adoption of the Report and This, I can assure you, is not the furthermore, the past year having Accounts as presented. case, the very substantial pront witnessed the final closing down

Rising to second the motion the now displayed being mainly attri- of the Macao Works, the position Hon. Mr. T. N. Chau sald butable to the fact that, due to the resolves itself into one whereby Improvement in our sales, we have your Company has relleved itself been enable to realise the major of the incubus of adjuncts of It is with much pleasure that I and rise to support the Report and portion of our considerable stocks non-proft earning

nature

Mr. Chairman and Gentlemen,-~

SHAREHOLDER'S TRIBUTE TO THE of cement, clinker and raw mater which as long as they continuect Accounts, as presented, and on be

BOARD AND STAFF

Vory

"I am given to understand that it has been suggested in some quarters that your Company has been taking advantage of the pre- sent abnormal conditions to augment its profits by arbitrarily ad- vancing prices. This, I can assure you, is not the case, the substantial profit. now displayed being mainly attributable to the fact that, due to the improvement in our sales, we have been en- abled to realise the major portion of our considerable stocks of cement," said Mr. J. H. Taggart (chairman) at the annual meeting of shareholders, Green Island Cement Company, Ltd., held at the registered offices of the Company yesterday.

CHAIRMAN'S SPEECH

Addressing the meeting the

chairman sald:-

REGULAR DELIVERIES.........

in

operation-wore

a

als, the bulk of which had been

constant half of shareholders I desire to on hand since as far back as 1934 80urce of expense and trouble to congratulate the Board of Directors and was acquired at much reduced your Executive Personnel

ion the very fine showing display- rates; furthermore, the results ob In this connection I refer more led today, which reflects geat credit tained are due in a marked degree particularly to the technical super-jon all concerned. to the lowering of general costs, vizion hecessarily exercised-cover-

I would remind you of the ad-

|consequent upon increased pro- ing many years not only over the versities with which the Cement duction, with the resultant neces- Macao Works, but also the Brick Company has had to contend dur- kins, a condition precedent to the Bay, both of which adjuncts may most gratifying to learn that the sity for full time operation of two and Pipe Works at Deep Watering the past seven years and it is most economical functioning of have-in their day-contributed to Company has not only survived your earnings in some amali de- these vicissitudes, but was never in gee; nevertheless, covering the a stronger position than that in past decade they were merely a which it stands today." drain upon profits.

[your Works.

OVERHEADS REDUCED

RAW MATERIALS

The Hon. Mr. T. N. Chau. who our export markets and. in conse-

RUMOURS DISPELLED seconded the chairman's proposal quence, a keen demand was creat-

Whilst on this subject I would for the adoption of the report and ed for your Company's product. like to dispel the bellef which accounts, paid a glowing tribute to with the result that the sales from seems to prevail that the past sue- the Board of Directors and mem- your Hok Un Works for the year cessful year has been due to large

I is also very satisfactory to hear bers of the staff for the results under review have amounted to sales of cement to China, as the adjuncts has made possible a ma- made to ensure the adequate supply The final liquidation of these that arrangements have been achieved.

104.000 tons, representing almost result of the hostilities which have trial reduction in overheads and or raw materials for our Factory. sold during the previous year. double the quantity of cement occurred.

permitted concentrated effort to which will enable us to carry on In this connection I would in-be directed to your excellent Works manufacture, in spite of the pre- thus maintaining two kilns in form you that our commitments, at Hok Un, and it will doubtless sent situation in China, and we are operation for the whole year. both in Hong Kong and Malaya. be a source of no little satisfaction glad to learn that the present de- You will note, by reference to Since September list their out-have been such as to entirely pre-to shareholders to rest in the Debit side of the Profit and put has been taxed to its limit and clude the possibility of supplying knowledge that the Company is is expected to continue for some the mand for our Company's product Loss Account, that. after making there is every prospect of this any cement against the present now not only on a sound anancial time. the usual provision for Directors' satisfactory state of affairs con- requirements of China; moreover, bass, but was never in a better! and Auditors' Fces, Charitable tinuing for some time to come, in having regard to the fact that at position to consolidate markets I feel sure that shareholders will Donations, and paying compensa- order to cope with contracts al- the present time your Company is rained and also to explore avenues join with me in supporting the tion to Messrs. Shewan Tomes & ready, undertaken and in prospect, receiving contracts from the Hong hitherto unopened to our product. payment of a Bonus to the Staff, Co. in respect of the matter of

Kong Government and the Naval; relinquishing, by mutual-consent,

whose energies have no doubt. Military and Air Force Authorities of affairs. I cannot let the oppor-before us.

Whilst touching upon this aspect contributed largely to the results the representation of this Com- Due to the Japanese blockade of both in Hong Kong and Singa-tunity pass of recording the ag pany in China, the balance of the Chinese ports difficulties have bad pore-priority of importante at-preciation of your Board to your Pront and Loss for the year stands to be surmounted "t the matter taches to such contracts, and in Secretary. Mr. T. C. T.. Beck, and mously.

"The motion was carried unani- at $470,965.97, which, together of maintaining regular supplies of recording the appreciation of your your Works Manager, Mr. R. Tay- with the sum of 382,106.00 brought raw materials for your factory. IBoard for the support received lor, for the efficiency of services forward from the year 1936. am pleased to report, however, from these quarters, we feel con- they have rendered covering the

OTHER BUSINESS makes an amount of $533.401.97 that, with the co-operation of our fident that the present crisis will past ten years, during which time available for appropriation.

Messrs. A. L. Shields and Li Tse- old suppliers, we have been suc-have amply demonstrated the im- the Company was confronted with long, were re-elected to the Board This satisfactory showing en-cessful in arranging regular de-portance and necessity of main-competition of a severity necessita- and Messrs. Linstead and Davis and ables your Board to recommend liveries thereof, thus ensuring containing such support to your un-ting drastic "Reconstruction and Messrs Lowe Bingham and Mat- the payment of a Dividend of tinuity of operation of your Plant.dertaking, in the absence of which. Reorganisation. $1.00 per share and a bonus of 25 notwithstanding the

thews re-appointed auditors. prevalling not only would one of the leading cents per share, absorbing $244, and somewhat difficult conditions. local Industries perforce be com-

The loyalty of these two Execu-

Those present at the meeting 381.50, and to further recommend and if tangible evidence be requir-pelled to close dowa, but also, intives and your Staff in general, iz were Messrs. J. H. Taggart (chair- that the sum of $98.26%.12 be ap-ed. It would appear that the events order to meet the requirements of the fact of adverse business con- man), A L Shields, T. E. Pearce, propriated. to General Reserve, of the past year have proved that the Colony, would necessitate re-ditions, involving drastic retrench-d Tee-fong (directors), T. C. T. (thereby increasing that Account the policy of your Board in keep lance upon foreign importation atment, has been beyond mere com-

Beck (Secretary) and the following i to $1,050,000.00), the payment of aing stocks of at least two years' greatly enhanced prices, a matter mendation; moreover, it is due in shareholders: bonus to staff amounting to $12, supply of raw material on hand is which has been stressed from this a great measure to the exorts of

The Hon. Mr: T. N. Chau, Messrs. 688.20, and the carrying forward unquestionably sound, since, in chair from time to time in the those concerned that your Com Choa Po-min. to next year's Account of $178.084. the absence of the requisite sup- past.

A. Nissim, B. W. pany is today in the excellent Tape, Fung Kwok-wa. P. H. Buck- 15; all of which appropriations re-plies, your factory would not have

position, as reflected in the Report Ung. E Abraham, F. Sliva, M. A. quire the confirmation of share been in a position to CATTY on

and Accounts with which share-Figueiredo. Lau Shiu-chuen, Mok holders at this meeting.

holders are now presented.

Yu-jau and Wong Man-ching.

NO DEPRECIATION. From the Auditors' Reports you will note that no charge has been made covering depreciation Plant and Floating Craft; in this connection your Board is still of

LIMITED CAPACITY

production and meet the heavy demands, resultant upon the ces-sent time Is booked for a long As it is, our output at the pre- sation of large imports of foreign perice ahead, in order to meet the cement into the Colony and of the requirements of these authorities. dumped product, in particular,

and it is a matter of regret that As to tresh Contracts have been entered Inta: for rawity renders it impracticable to ac-

which our limited manufacturing capac materials, shareholders will appre- cept business of a more lucrative the opinion the drastic writing clate that it has been necessary nature which is offering in other down, of Fixed Assets by $2,913. to meet greatly advanced prices directions. 021.84. as part of the Reorganisa-and it will-in the circumstances

round

Whilst I do not wish to display

tion Scheme undertaken in 1934. be readily understood that your undue optimism as to the future. renders further depreciation un- Company, in turn, had no option I am confident that, apart from necessary, more particularly so but to increase prices commen-the having regard to the fact that the surately, in order to

demand engendered by the book value of the declining Assets increased costs; in this reiation Itors in the local market, the im- cover such absence of our principal competi- is more than covered by the Gen-would point out that, despite the portant eral Reserve, to which latter As-fact that the rising cost of mate- which, we understand, have now Defence Programmes count your Board is allocating-rials was such as to make it impera-been sanctioned by the Home Gov- figures one lakh. I tive that prices be increased. It was ernment, give every reason to anti- may here add that it is the policy not until September last that such cipate the continuance of the pre- of your Directors to augment, such increase was effected and is sent ready sales of our product for Reserve from time to time as pro-satisfactory to record that today some time to come. Nevertheless, ats permit.

per cent only, on prices ruling higher costs of raw material, cou- these represent an advance of 40 it is my duty to mention twelve months ago.

pled with the Increased rates of freight, the full burden of which

future returns. year, may have some affect on our has not been felt until the present

Turning to the balance sheet it is once again my pleasure to draw your attention to the extremely healthy state of your Company's finances; in addition to the sum

PRIME COST BASIS Moreover, it must be borne in

of $403.289.26. standing at the mind that the Company has since credit of current account with our the reorganisation undertaken-a5 Bankers as at December 31, 1937, we have acquired during the year previously referred to-been opera- under review Investments to the ing upon a prime cost basis only. extent of $410.635.92, by the em-

such policy having been neces-

FRESH ORDERS

that

In the circumstances indicated and when considering the outlook

ployment. of liquld funds-surplus/ Bary in order to assure continuity for 1938, it appears opportune to

to our immediate requirements.

in first class local securities.

SALEABLE ASSETS

As previously mentioned, the General Reserve will subject to

fresh

within the rat category.

of operation covering the p

acquaint shareholders of the fact seven years, during which period ..'

your undertaking has had to con- that we have on our books at the tend with severe competition, due present ime commitments repre- to the dumping of cheap cement ofsenting a large quantity of cement foreign origin, to which I have contracted, for prior to the Sino- the approval of the recommenda- just made reference, and whilst

Japanese conflict at very low tion now submitted-stand at the under prevailing conditions your prices, which, due to our higher substantial Agure of $1,050,000.00, Company has by no means been costs, leave little margin of proft. by the augmentation of $98.282.12 free from competition: either in Nevertheless, it is anticipated that out of profits, together with the Hong Kong or our export marketa,

orders being booked at re- small sum of $1.737.88, represent nevertheless, at the present timevised price levels will assist in off- ing the value of the balance of our prices are well below those of setting possible losses on business our saleable assets. on

closing other brands. down the Macao Works, these I would here stress that it is the Finally, and reviewing the materials having been disposed of policy of your Board to do every position generally, I am pleased to prior to our final surrender of that thing possible in order to maintain be able to state that your under- property" on "June 30, 1937.

these at reasonable levels.

Laking has weathered the difficul- It is with satisfaction that your Directors present today the great-view a material portion of the prO-

Whilst during the year under re-ties and the handicaps of the past ten years in a manner that bears) ly improved results of the working ats realised accrued during the eloquent testimony, not alone to of your undertaking for the year period following the outbreak of the higher standard of its product. 1937, which may be regarded, in a hostilities, it is interesting to re-but-in the face of keen competi- great measure, as the outcome of cord that prior to that event your on-to the acumen of those dir- The stringent economies effected Company was enjoying a' fair mea- ecting the marketing thereof, in throughout the past difficult years.gure of prosperity--as was fore-which relation I desire to pay par- necessitating, inter alia, the con-shadowed by me in my speech, last ticular tribute to our agents in Rervation of the cash resources of year and for the first six months Malaya, Mesara McAlister and Co., your Company and the mainten- of the year the profits amounted Ltd., whose whole-hearted colla ance of adequate stocks. of raw

to $180,167.45. materials to meet all emergencies. KEEN DEMAND

NO PROFITEERING

I am given to understand that

boration and, unceasing efforts have contributed so materially to the increased turnover of the past year.

HOR UN PLANT

At the commencement of the fit has been suggested in some Bino-Japanese hostilities in Au- quarters that your Company has gust last supplies of cheap cement been taking advantage of the pre ceased to flood both the local and sent abnormal conditions to aug-well maintained and is functioning

Your plant at Hok Un has been

EXCHANGE BUILDING

HONG KONG.

DES VOLUX ROAD CENTRAL

HUMPHREYS BUILDINGS, CORNWALL AVENUE,

KOWLOON,

HONGKONG & SHANGHAI, BANK BUILDING

QUEEN'S ROAD CENTRAL MONG KONG.

WEDNESDAY, APRIL 13, 1938.-PAGE 11

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