Ann ual Repor t Eu Yan Sang International Ltd and Subsidiary ...

30 June 2000
Director’s Report and
Audited Financial Statements
Eu Yan Sang International Ltd and
Subsidiary Companies
14 Director’s Report and Audited Financial
Statements
15-19 Report of the Directors
20 Statement by Directors Pursuant to
Section 201(15)
21 Auditor’s Report to the Members of
Eu Yan Sang International Ltd
22 Profit and Loss Accounts for the year
ended 30 June 2000
23 Balance Sheets as at 30 June 2000
24-25 Consolidated Statement of Cash Flows
for the year ended 30 June 2000
25-41 Notes to the Financial Statements -
30 June 2000
42 Proforma Group Profit and Loss Account
for the year ended 30 June 2000
43-56 Notes to the Proforma Group Financial
Statements - 30 June 2000
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Eu Yan Sang International Ltd and Subsidiary Companies
Directors’ Report and Audited Financial Statements
Directors
Joseph William Yee Eu (Chairman)
Richard Eu Yee Ming (Managing Director)
Clifford Eu Yee Fong (Executive Director)
Alan Leung Sze Yuan (appointed on 17.4.2000)
Robert James Eu Yee Sang
David Yeh Chung Woo (appointed on 7.7.2000)
Dr Jennifer Lee Gek Choo (appointed on 7.7.2000)
Dr David Eu Yee Tat (alternate to Richard Eu Yee Ming)
Laurence Eu Yee Lye (alternate to Clifford Eu Yee Fong)
Alexander Thomson (resigned on 28.2.2000)
Alfredo Antonio Imperial Ayala (resigned on 28.2.2000)
Secretaries
Clifford Eu Yee Fong
Yvonne Choo (appointed on 12.6.2000)
Linda Law (appointed on 12.6.2000)
Registered Office
269A South Bridge Road
Singapore 058818
Auditors
Ernst & Young
Daniel Soh Chung Hian
Audit Partner
Principal Bankers
Overseas Union Bank
Development Bank of Singapore
Public Bank Berhad

Report of the Directors
The directors have pleasure in presenting their report together with the audited financial statements
of the Company and of the Group for the year ended 30 June 2000.
Change of name
On 6 July 2000, the Company was converted into a public limited company and changed its name
from Eu Yan Sang International Holdings Pte Ltd to Eu Yan Sang International Ltd. The Company was
admitted to the official list of the Singapore Exchange Securities Trading Limited (“SGX-ST”) on 28
July 2000.
Principal activities
The principal activities of the Company are investment holding and the provision of management
services to its subsidiary companies. The subsidiary companies invest in properties, act as commission
agents for all kinds of pharmaceutical products and are engaged in the manufacturing, distribution
and sale of traditional Chinese, Western and other medicines.
There have been no significant changes in the nature of these activities during the year.
Results for the financial year
Group Company
$’000 $’000
Profit after taxation 2,215 772
Transferred from revenue reserve – 345
Dividends proposed, less tax (1,117) (1 ,117)
Transferred to revenue reserve 1,098 –
In the opinion of the directors, the results of the operations of the Company and of the Group during
the financial year have not been affected by any item, transaction or event of a material and
unusual nature.
Material transfer to/from reserves and provisions
Detailed movement of reserves are shown in Note 25 to the financial statements. Apart from these
movements, there have been no material transfers to and from reserves or provisions except for
normal amounts set aside for such items as depreciation of fixed assets, provision for doubtful debts,
stock obsolescence and income tax as disclosed in the financial statements.
Dividend
(a) During the year a final dividend of 0.5%, less tax of 26%, amounting to $38,587 in respect of the
previous year as proposed in the Report of the Directors of that year was paid.
(b) The directors propose a first and final dividend of 10.5%, less tax of 25.5% amounting to $1,117,339
be paid in respect of the year under review.
See note 7 to the financial statements.
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Eu Yan Sang International Ltd and Subsidiary Companies
Report of the Directors
Share capital
No shares were issued by the Company during the year.
Subsequent to the financial year, the Company :
(i) increased its authorised shares capital from $40,000,000, comprising 400,000,000 ordinary shares
of $0.10 each, to $80,000,000 comprising 800,000,000 ordinary shares of $0.10 each by creating
additional 400,000,000 ordinary shares of $0.10 each;
(ii) issued 2,798,570 new ordinary shares of $0.10 each at par in consideration for the acquisition of
Essence Holdings Limited pursuant to the Restructuring Exercise, as described in the following
section;
(iii) subdivided each of the ordinary shares of $0.10 each in the authorised and issued share capital
of the Company into 2 ordinary shares of $0.05 each; and
(iv) issued 71,500,000 new ordinary shares of $0.05 each at a premium of $0.30 each pursuant to an
initial public offering exercise.
During the financial year, its subsidiary company, Eu Yan Sang Marketing Private Limited issued 9,998
ordinary shares of $1.00 each at par for cash to provide additional working capital.
Acquisition and disposal of subsidiary companies
During the financial year, Eu Yan Sang (Singapore) Private Limited subscribed for 1998 ordinary shares
of $1.00 each issued by EYS Ventures Pte Ltd at par for cash and acquired the remaining two ordinary
shares from the existing shareholders of EYS Ventures Pte Ltd at $22 per ordinary share, making EYS
Ventures Pte Ltd a wholly-owned subsidiary company of the Group. The net tangible assets of EYS
Ventures Pte Ltd prior to the subscription of its ordinary shares by Eu Yan Sang (Singapore) Private
Limited is $45,378.
There were no disposal of subsidiary companies during the financial year.
The Restructuring Exercise
Subsequent to the financial year, pursuant to a Restructuring Exercise undertaken on 3 July 2000, the
Company acquired 63,804,085 ordinary shares of HK$1.00 each in Essence Holding Limited (“Essence”)
from the other shareholders of Essence. The purchase consideration for Essence was computed
based on its audited Group net asset value of HK$1,303,546 as at 29 February 2000 and taking into
account the 2,011,784 ordinary shares of Essence which were already held by the Company. The
purchase consideration was satisfied by the allotment and issue of 2,798,570 new ordinary shares of
$0.10 each at par to the other shareholders of Essence.
On 10 July 2000, Essence was put into members’ voluntary liquidation. Upon completion of its
liquidation on 14 September 2000, all its assets were distributed in specie to the Company. Subsidiary
companies acquired by the Company pursuant to the restructuring exercise are as follows :
Name of companies
Interest
acquired
%
Essence Holdings Limited (Liquidation on 14 September 2000) 100
Eu Yang Sang (Hong Kong) Limited 100
Synco (H.K.) Limited 100
Eu Yan Sang (China Ventures) Limited 100
Top Lot Limited 100
Eu Yan Sang (Properties) Limited 100
Eu Yan Sang (Export) Limited 100

Report of the Directors
Directors of the company
The names of the directors of the Company in office at the date of this report are :-
Joseph William Yee Eu (Chairman)
Richard Eu Yee Ming (Managing Director)
Clifford Eu Yee Fong (Executive Director)
Alan Leung Sze Yuan (appointed on 17.4.2000)
Robert James Eu Yee Sang
David Yeh Chung Woo (appointed on 7.7.2000)
Dr Jennifer Lee Gek Choo (appointed on 7.7.2000)
Dr David Eu Yee Tat (alternate to Richard Eu Yee Ming)
Laurence Eu Yee Lye (alternate to Clifford Eu Yee Fong)
The following directors who held office at the end of the financial year had, according to the register
required to be kept under Section 164 of the Companies Act, Cap. 50, an interest in shares of the
Company, as stated below :-
Held in the name of director Deemed interest
At the At the
beginning beginning
of the year/ of the year/
at date of At the end At at date of At the end At
appointment of the year 21.7.00 appointment of the year 21.7.00
Shares of Shares of Shares of Shares of Shares of Shares of
Name of director $0.10 each $0.10 each $0.05 each $0.10 each $0.10 each $0.05 each
Richard Eu Yee Ming
Joseph William
6,671,235 12,085,206 8,990,069 17,638,000 21,908,183 62,156,366
Yee Eu 4,257,364 5,288,076 10,859,964 – – –
Clifford Eu Yee Fong 573,150 4,510,773 2,595 25,870,204 32,133,407 71,016,814
Dr David Eu Yee Tat – – – 17,638,000 21,908,183 43,816,366
Laurence Eu Yee Lye
Robert James Eu
– – – 25,870,204 32,133,407 64,266,814
Yee Sang – – – 8,613,087 10,698,324 21,970,828
David Yeh Chung Woo – – – – – 5,665,526
Pursuant to an Option agreement dated 7 July 2000, Richard Eu Yee Ming granted an Option (“the
Option”) to Alan Leung Sze Yuan to purchase a total of 5,022,086 shares of $0.05 each. The Option is
exercisable in full or in part during the period commencing six months from the date of admission of
the Company to the Main Board of the SGX-ST and ending upon the expiry of six months from the
commencement date.
No other directors who held office at the end of the financial year had an interest in shares or
debentures of the Company, or any of the subsidiary companies of the Company. By virtue of
Section 7 of the Companies Act, Cap. 50, Richard Eu Yee Ming, Clifford Eu Yee Fong, and Laurence
Eu Yee Lye are deemed to have interest in the subsidiary companies of the Company.
Since the previous financial year, no director has received or has become entitled to receive benefits
under contracts required to be disclosed by Section 201(8) of the Companies Act, Cap. 50 except
those disclosed in the financial statements.
Neither at the end of the financial year, nor at any time during that year, did there subsist any
arrangements, to which the Company is a party, whereby directors might acquire benefits by means
of the acquisition of shares in, or debentures of, the Company or any other body corporate.
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Eu Yan Sang International Ltd and Subsidiary Companies
Report of the Directors
Audit Committee
The Audit Committee which was formed on 8 July 2000, comprises 3 members. The members of the
Audit Committee at the date of this report are :
Dr Jennifer Lee Gek Choo (Chairman)
David Yeh Chung Woo
Clifford Eu Yee Fong
The Audit Committee has reviewed the financial statements of the Group and the Company and
the auditors’ report thereon before their submission to the Board of Directors.
The Audit Committee shall carry out its functions and duties as specified in the Companies Act, Cap.
50, the Listing Manual of the Singapore Exchange Securities Trading Limited (SGX-ST) and the Best
Practice Guide for the subsequent financial year.
The Committee has recommended to the Board of Directors the nomination of Ernst & Young for
re-appointment as auditors of the Company at the forth coming Annual General Meeting.
Employee Share Option Scheme
The Eu Yan Sang Employee Share Option Scheme (“ESOS”) was approved by the shareholders at an
Extraordinary General Meeting held on 3 July 2000. The ESOS will be granted to executive directors,
executives, and other employees of the Group and associated companies.
Under the ESOS, the options will be granted at the average of the last dealt prices for the shares on
the SGX-ST for the 10 consecutive market days immediately preceding the relevant date of grant for
which there was trading in the shares on the SGX-ST or at a discount of not more than 20% of the
market value.
The ESOS will be administered by a committee comprising Richard Eu Yee Ming, Dr Jennifer Lee Gek
Choo and David Yeh Chung Woo, all of whom are directors of the Company. The committee has
power to determine, inter alia, the persons to be granted options, the number of shares to be offered
by way of options, the amount of discount to be given and recommendations for modifications to
the ESOS. The Committee, in granting options, shall be at liberty to take into consideration factors
including, but not limited to, rank and performance of the employees.
At the end of the financial year, no options has been granted pursuant to ESOS.
Asset values
Before the profit and loss account and balance sheet of the Company were made out, the directors
took reasonable steps to ascertain that :-
(a) proper action had been taken in relation to the writing off of bad debts and the making of
provision for doubtful debts and have satisfied themselves that all known bad debts had been
written off and that adequate provision had been made for doubtful debts; and
(b) any current assets which were unlikely to realise their book value in the ordinary course of business
were written down to an amount which they might be expected so to realise.
At the date of this report, the directors are not aware of any circumstances which would render :-
(a) the amount written off for bad debts or the amount of the provision for doubtful debts in the
financial statements of the Group inadequate to any substantial extent; and
(b) the values attributed to current assets in the financial statements of the Group misleading.

Report of the Directors
Charges and contingent liabilities
Since the end of the financial year, no charge on the assets of the Company or any company in the
Group has arisen which secures the liabilities of any other person.
Since the end of the financial year no contingent liability of the Company or any company in the
Group has arisen, other than those disclosed in the notes to the financial statements.
No contingent or other liability of the Company or any company in the Group has become
enforceable or is likely to become enforceable within the period of twelve months after the end of
the financial year which, in the opinion of the directors, will or may substantially affect the ability of
the Company and of the Group to meet their obligations as and when they fall due.
Other circumstances affecting the financial statements
At the date of this report, the directors are not aware of any circumstances not otherwise dealt with
in this report or the financial statements of the Company and of the Group which would render any
amount stated in the financial statements of the Company and the Group misleading.
Unusual items after the financial year
In the opinion of the directors, no item, transaction or event of a material and unusual nature has
arisen in the interval between the end of the financial year and the date of this report which would
affect substantially the results of the operations of the Company or of the Group for the financial
year in which this report is made.
Auditors
The auditors, Ernst & Young, Certified Public Accountants, have expressed their willingness to accept
re-appointment.
On behalf of the Board,
Richard Eu Yee Ming
Director
Clifford Eu Yee Fong
Director
Singapore
26 September 2000
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Eu Yan Sang International Ltd and Subsidiary Companies
Statement by Directors Pursuant to Section 201(15)
We, Richard Eu Yee Ming and Clifford Eu Yee Fong, being two of the directors of Eu Yan Sang
International Ltd, do hereby state that, in the opinion of the directors :
(i) the balance sheets, profit and loss accounts and consolidated statement of cash flows together
with the notes thereto, set out on pages 22 to 41 are drawn up so as to give a true and fair view
of the state of affairs of the Company and of the Group as at 30 June 2000; and of the results of
the Company and of the Group, and cash flows of the Group, for the year ended 30 June 2000;
and
(ii) at the date of this statement there are reasonable grounds to believe that the Company will be
able to pay its debts as and when they fall due.
On behalf of the Board,
Richard Eu Yee Ming
Director
Clifford Eu Yee Fong
Director
Singapore
26 September 2000

Auditor’s Report to the Members of
Eu Yan Sang International Ltd
We have audited the financial statements of Eu Yan Sang International Ltd set out on pages 22 to 41.
These financial statements comprise the balance sheets of the Company and the Group as at
30 June 2000, and the profit and loss accounts of the Company and the Group and the cash flow
statement of the Group for the year then ended. These financial statements are the responsibility of
the Company’s Directors. Our responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with Singapore Standards on Auditing. Those Standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by the Directors, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion,
(a) the financial statements and consolidated financial statements are properly drawn up in
accordance with the provisions of the Companies Act and Statements of Accounting Standard
and so as to give a true and fair view of :
(i) the state of affairs of the Company and of the Group as at 30 June 2000, the results of the
Company and of the Group and the cash flows of the Group for the year then ended; and
(ii) the other matters required by Section 201 of the Act to be dealt with in the financial statements
and consolidated financial statements;
(b) the accounting and other records, and the registers required by the Act to be kept by the
Company and by those subsidiary companies incorporated in Singapore of which we are the
auditors have been properly kept in accordance with the provisions of the Act.
We have considered the financial statements and auditors’ reports of all subsidiary companies of
which we have not acted as auditors, being financial statements included in the consolidated
financial statements. The names of those subsidiary companies audited by our associated firms and
those audited by other firms are stated in Note 2.
We are satisfied that the financial statements of the subsidiary companies that have been
consolidated with the financial statements of the Company are in form and content appropriate
and proper for the purposes of the preparation of the consolidated financial statements and we
have received satisfactory information and explanations as required by us for those purposes.
The auditors’ reports on the financial statements of the subsidiary companies were not subject to
any qualification and in respect of subsidiary companies incorporated in Singapore did not include
any comment made under Section 207(3) of the Act.
ERNST & YOUNG
Certified Public Accountants
Singapore
26 September 2000
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Eu Yan Sang International Ltd and Subsidiary Companies
Profit and Loss Accounts for the year ended
30 June 2000
Note
Group Company
2000 1999 2000 1999
$’000 $’000 $’000 $’000
Turnover 3 35,433 30,175 3,204 2 ,985
Profit before taxation 4 3,028 1,884 1,150 936
Taxation 6 (813) (373) (378) (319)
Profit after taxation 2,215 1,511 772 617
Transfer from revenue reserve – – 345 –
2,215 1,511 1,117 617
Dividend 7 (1,117) (38) (1,117) (38)
Retained profit for the year 25 1,098 1,473 – 579
Basic earnings per share (cents) 8 2.12 1.45
The accompanying notes form an integral part of the financial statements.

Balance Sheets as at 30 June 2000
Group Company
Note
2000 1999 2000 1999
$’000 $’000 $’000 $’000
Fixed assets 9 25,187 25,332 480 596
Deferred expenditure 10 72 135 – –
Subsidiary companies 11 – – 15,549 15 ,539
Associated companies
Investments in unquoted
shares of a company in which
certain directors have
12 1,937 – 4,300 –
substantial interest
Current assets
451 451 451 451
Stocks 13 8,247 6,138 – –
Trade debtors 14 883 874 – –
Other debtors 15 1,352 794 718 117
Amounts due from related parties
Amounts due from subsidiary
16 2,207 1,291 522 666
companies
Amounts due from an
17 – – 6,758 7 ,420
associated company 18 – 209 – 1
Fixed banks deposits 110 300 – 300
Cash and bank balances 3,490 3,326 1,384 1 ,182
Deduct : Current liabilities
16,289 12,932 9,382 9 ,686
Amounts due to bankers 19 16,311 14,414 14,490 12 ,490
Trade creditors 4,598 3,170 – –
Other creditors 20 1,739 1,718 425 903
Amounts due to a related party
Amount due to a subsidiary
16 459 1,050 – 873
company
Amount due to an associated
17 – – 2 –
company 18 2,150 – 2,150 –
Provision for taxation 695 421 218 132
Proposed dividend, net 1,117 38 1,117 38
27,069 20,811 18,402 14 ,436
Net current liabilities
Long-term liabilities
(10,780) (7,879) (9,020) (4 ,750)
Bank loan, secured 21 320 485 – –
Hire purchase creditors 22 295 34 269 –
Deferred taxation 23 39 81 – –
(654) (600) (269) –
Capital and reserves
16,213 17,439 11,491 11 ,836
Share capital 24 10,429 10,429 10,429 10 ,429
Reserves 25 5,265 6,491 543 888
Share premium 26 519 519 519 519
16,213 17,439 11,491 11 ,836
The accompanying notes form an integral part of the financial statements.
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Eu Yan Sang International Ltd and Subsidiary Companies
Consolidated Statement of Cash Flows for the year ended
30 June 2000
2000 1999
$’000 $’000
Cash flows from operating activities :
Operating income before taxation
Adjustments for :
3,025 1 ,884
Amortisation of deferred expenditure 69 67
Depreciation of fixed assets 1,273 1 ,138
Profit on sale of fixed assets (50) (32)
Currency realignment 19 86
Fixed assets written off 1 12
Interest expense 735 1 ,070
Interest income (7) (27)
Operating income before reinvestment in working capital 5,065 4 ,198
Increase in debtors (553) (413)
Increase in creditors 1,482 2 ,112
(Increase)/decrease in stocks (2,109) 1 ,248
(Increase)/decrease in amounts due from related parties, (net) (1,618) 241
Cash generated from operations 2,267 7 ,386
Interest received 7 27
Interest paid (735) (1 ,070)
Income taxes paid (590) (865)
Net cash provided by operating activities 949 5 ,478
Cash flows from investing activities :
Proceeds from sale of fixed assets 79 80
Purchase of fixed assets (1,183) (1 ,372)
Investment in associated company (4,300) –
Increase in amounts due to associated company
Acquisition of a subsidiary company net of cash and cash
2,150 –
equivalent acquired 156 –
Increase in payment of deferred expenditure (6) (110)
Net cash used in investing activities (3,104) (1,402)
Cash flows from financing activities :
Proceeds from/(repayment of) short-term loans 2,000 (1,117)
Repayment of bank loan (179) (228)
Dividends paid (38) (38)
Proceeds from/(repayment of) hire purchase creditors 226 (44)
Decrease/(increase) in amount due from an associated company 209 (180)
Net cash provided by/(used in) financing activities 2,218 (1,607)
Net increase in cash and cash equivalents 63 2 ,469
Cash and cash equivalent at beginning of year (note 27) 2,181 (288)
Cash and cash equivalent at end of year (note 27) 2,244 2 ,181

Consolidated Statement of Cash Flows for the year ended
30 June 2000
The acquisition of a subsidiary company have been shown in the statement as a single item.
The effect on the individual assets and liabilities is set out below:
Debtors
$’000
2
Cash and cash equivalents 158
Creditors (2)
Amount due to related companies (111)
Net assets acquired 47
Discount on acquisition (45)
Cash paid 2
Less : Cash and cash equivalent acquired (158)
Cash flow arising from acquisition of subsidiary company net of
cash and cash equivalents acquired (156)
The accompanying notes form an integral part of the financial statements.
Notes to the Financial Statements – 30 June 2000
1. Significant accounting policies
(a) Basis of accounting
The financial statements of the Company and of the Group are prepared under the historical
cost convention modified by revaluation of certain fixed assets.
The financial statements are prepared in accordance with applicable accounting standards.
(b) Basis of consolidation
The accounting year of the Company and all its subsidiary companies ends on 30 June and
the consolidated financial statements incorporate the financial statements of the Company
and all its subsidiary companies.
The results of subsidiary companies acquired or disposed of during the year are included in
or excluded from the respective dates of acquisition or disposal, as applicable. When
subsidiary companies are acquired, any excess of the consideration over the net assets at
the date of acquisition is included in goodwill on consolidation and written off against Group
reserves in the year in which it arises. Where the cost of acquisition of a subsidiary company
is less than the fair value of the net assets acquired, the discount on acquisition is taken up as
capital reserve. The name and principal activities of the subsidiary companies are indicated
in note 2.
Assets, liabilities and results of overseas subsidiary companies are translated into Singapore
dollars on the basis outlined in paragraph (k) below.
(c) Subsidiary companies
Investments in subsidiary companies are stated at cost. Provision is made for any permanent
diminution in value.
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Eu Yan Sang International Ltd and Subsidiary Companies
Notes to the Financial Statements – 30 June 2000
(d) Associated companies
Investments in associated companies are stated at cost. Provision is made for any permanent
diminution in value.
An associated company is defined as a company, not being a subsidiary, in which the Group
has a long-term interest of not less than 20% of the equity and in whose financial and operating
policy decisions the Group exercises significant influence.
The Group’s investments in associated companies are recorded at cost and adjusted to
recognise the Group’s share of the net assets of the associated companies at the date of
acquisition. The excess or deficit between the net assets of the associated companies and
the consideration paid is adjusted against reserves in the year of acquisition.
The Group’s share of the results of associated companies is included in the consolidated
profit and loss account of the Group. The Group’s share of the post-acquisition reserves of
associated companies is included in the investments in associated companies in the
consolidated balance sheet.
(e) Revenue recognition
Revenue from the sale of goods are recognised upon passage of title to the customer which
generally coincides with their delivery and acceptance.
Rental income is recognised on an accrual basis. Dividend income is included to the extent
of dividends declared during the year. Interest income is accrued on a day-to-day basis.
(f) Fixed assets
Fixed assets are stated at cost or valuation less accumulated depreciation. The cost of an
asset comprises its purchase price and any directly attributable costs of bringing the asset to
a working condition for its intended use including interests capitalised. Expenditure for
additions, improvements and renewals are capitalised, and expenditure for maintenance
and repairs are charged to the profit and loss account. When assets are sold or retired, their
cost and accumulated depreciation are removed from the financial statements and any
gain or loss resulting from their disposal is included in the profit and loss account. Any surpluses
held in asset revaluation reserves in respect of previous revaluations of fixed assets disposed
of during the year are regarded as having become realised and are transferred to the profit
and loss account.
Revaluation surpluses arising on valuations of the Group’s properties are credited direct to
asset revaluation reserves. Revaluation deficits are taken to the profit and loss account in
the absence of or to the extent that they exceed any surpluses held in reserves relating to
previous revaluations. Investment properties are revalued annually by the Directors. An
independent professional valuation is conducted periodically based on an open market
value basis.
(g) Deferred expenditure
Deferred expenditure comprises preproduction and preliminary expenses which is written
off to profit and loss account on a straight line basis over a three-year period commencing
from the date of commercial operations.
(h) Stocks
Stocks are stated at the lower of cost and net realisable value. Cost comprises direct materials
on a first-in-first-out basis and in the case of finished products, includes direct labour and
attributable production overheads based on a normal level of activity. Net realisable value
is the estimated selling price less anticipated cost of disposal and after making allowance
for damaged, obsolete and slow-moving items.

Notes to the Financial Statements – 30 June 2000
(i) Deferred taxation
Deferred taxation is accounted for under the liability method whereby the tax charge for
the year is based on the disclosed book profit after adjusting for all permanent differences.
The amount of taxation deferred on account of all timing differences is reflected in the
deferred taxation account. Deferred tax benefits are not recognised unless there is a
reasonable expectation of their realisation.
(j) Depreciation
Depreciation is calculated on the straight line method to write off the cost or valuation of
fixed assets over their estimated useful lives. The estimated useful lives of fixed assets are as
follows:-
Freehold and leasehold buildings – 50 years
Furniture, fittings and equipment – 3 - 5 years
Motor vehicles – 5 years
Renovations – 3 - 5 years
Plant and machineries – 2 - 5 years
Fully depreciated fixed assets are retained in the financial statements until they are no longer
in use and no further charge for depreciation is made in respect of these assets.
Investment properties are stated at valuation and no depreciation were deemed necessary
by the directors of the Company.
(k) Foreign currencies
Transactions arising in foreign currencies during the year are converted at rates closely
approximating those ruling on the transaction dates. Foreign currency monetary assets and
liabilities are converted into local currency at year-end exchange rates. All exchange
differences arising from conversion are included in the profit and loss account.
For inclusion in the consolidated financial statements, all assets and liabilities foreign subsidiary
companies and associated companies are translated into Singapore dollars at exchange
rates ruling at the balance sheet date and the results of foreign subsidiary companies and
associated companies are translated at the average exchange rates. Exchange differences
due to such currency translations are included in Group foreign currencies translation reserve.
(l) Leased assets
Where assets are financed by lease agreements that give rights approximating to ownership
(finance leases), the assets are capitalised under fixed assets as if they had been purchased
outright at the values equivalent to the present values of total rental payable during the
periods of the leases and the corresponding lease commitments are included under liabilities.
Lease payments are treated as consisting of capital and interest elements and the interest is
charged to profit and loss account. Depreciation on the relevant assets is charged to profit
and loss account on the basis outlined in paragraph (j) above.
Annual rental on operating leases is charged to profit and loss account.
(m)Investments in unquoted shares
Investment in unquoted shares held on a long term basis are stated at cost. Provision is
made for any diminution in value which is considered to be permanent.
(n) Cash and cash equivalents
Cash and cash equivalents consist of fixed bank deposits, cash at bank and in hand less
bank overdrafts.
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Eu Yan Sang International Ltd and Subsidiary Companies
Notes to the Financial Statements – 30 June 2000
2. General
The financial statements of the Company and the consolidated financial statements of the
Group are expressed in Singapore dollars.
The principal activities of the Company, which is incorporated in Singapore are investment
holding and the provision of management services to its subsidiary companies. The subsidiary
companies invest in properties, act as commission agents for all kinds of pharmaceutical products
and are engaged in the distribution and sale of traditional Chinese, Western and other medicines.
There have been no significant changes in the nature of these activities during the year.
The subsidiary and associated companies at 30 June 2000 are :-
Country of
incorporation Percentage
Name of and place of Principal of equity held
company business activities At cost by the Group
2000 1999 2000 1999
$’000 $’000 % %
Subsidiary companies
Eu Yan Sang Singapore Distribution and 3,185 3,185 100 100
(Singapore) sale of traditional
Private Limited Chinese and
other medicines
* Eu Yan Sang (1959) Malaysia Distribution and 4,381 4,381 100 100
Sdn Berhad sale of traditional
Chinese and
other medicines
Eu Realty Singapore Property investment 7,866 7,866 100 100
(Singapore) Private and sale of traditional
Limited Chinese and
other medicines
* Weng Li Sendirian Malaysia Commission agent 50 50 100 100
Berhad in all kinds of
pharmaceutical
products and
manufacturer of
medical pills and
capsules
**Eu Yan Sang Malaysia Property investment 57 57 100 100
Heritage Sdn Bhd and provision of
management services
**EYS Ventures Pte Ltd Singapore Remittance commission # – 100 –
agent
**Eu Yan Sang Singapore Dormant 10 @ 100 100
Marketing Private
Limited
* EYS Corporation Hong Kong Dormant @ @ 100 100
Limited

Notes to the Financial Statements – 30 June 2000
2. General (cont’d)
Country of
incorporation Percentage
Name of and place of Principal of equity held
company business activities At cost by the Group
2000 1999 2000 1999
$’000 $’000 % %
Associated companies
**Degree Malaysia Property investment @ @ 25 25
Achievement
Sdn Bhd
**Oxford Natural Singapore Conduct laboratories 4,300 – 45 –
Products Asia and research in
Private Limited health and related
products
**Yin Yang Spa Singapore To develop, @ – 50 –
Pte Ltd manufacture and
distribute Spa
products and services
# Held through Eu Yan Sang (Singapore) Private Limited
* Audited by associated firms of Ernst & Young, Singapore
** Audited by other firms
@ Denotes amount less than $1,000
3. Turnover
Turnover for the Company represents dividends and management fees received from subsidiary
companies.
Turnover for the Group represents sales of goods at invoiced value less returns and trade discounts,
management fees and rental income. It excludes intra-group transactions.
Turnover is analysed as follows :-
Group Company
2000 1999 2000 1999
$’000 $’000 $’000 $’000
Dividend income – – 478 564
Management fees 1,648 1,472 2,726 2,421
Rental income 297 394 – –
Sales of goods 33,488 28,309 – –
35,433 30,175 3,204 2,985
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Eu Yan Sang International Ltd and Subsidiary Companies
Notes to the Financial Statements – 30 June 2000
4. Profit before taxation
Group Company
2000 1999 2000 1999
$’000 $’000 $’000 $’000
Profit before taxation is stated after
charging/(crediting) :
Amortisation of deferred expenditure 69 67 – –
Depreciation of fixed assets 1,273 1,138 140 95
Profit on sale of fixed assets (50) (32) (39) (23)
Fixed assets written off 1 12 – –
Directors’ emoluments
Auditors’ remuneration :
- Auditors of parent Company
593 525 593 525
• audit fees 40 43 15 12
• non-audit fees 32 – 28 –
• prior year under provision
- Other auditors
– 3 – 3
• audit fees 20 21 – –
Interest expense (note 5) 735 1,070 546 798
Interest income (7) (27) (228) (310)
Net exchange (gain)/loss
(Writeback of provision)/provision for
(2) (265) 8 (106)
amount owing by an associated company
(Writeback of provision)/provision for
(19) 19 – –
doubtful debts (12) 3 – –
Bad debts written off 34 1 – –
Details of Directors’ remuneration of the Company pursuant to the Singapore Exchange Securities
Trading Limited’s Listing rules are as follows:
Number of Directors in remuneration bands
2000 1999
$500,000 and above – –
$250,000 to $499,999 1 1
Below $250,000 8 7
Total 9 8
5. Interest expense
Group Company
2000 1999 2000 1999
$’000 $’000 $’000 $’000
Interest on bank loan 56 82 – –
Interest on bank overdrafts 131 191 – 1
Interest on hire purchase 12 11 10 11
Interest on short term loan 536 786 536 786
735 1,070 546 798

Notes to the Financial Statements – 30 June 2000
6. Taxation
Group Company
2000 1999 2000 1999
$’000 $’000 $’000 $’000
Provision for taxation in respect of profit
for the year :
Current taxation - Singapore 360 223 267 206
- Malaysia 513 92 111 79
Deferred taxation
(Over)/underprovision in respect of
(42) (21) – –
previous year (18) 79 – 34
813 373 378 319
The taxation charge for the Group and the Company differs from the amount determined by
applying the Singapore income tax rate of 25.5% (1999 : 26%) to the pre-tax profits because of
non-deductible expenses, higher tax rates applicable to overseas subsidiary companies and
certain subsidiary company utilised its tax losses, unabsorbed capital allowances and
reinvestment allowance to offset against its tax profits.
As at 30 June 2000, certain subsidiary companies have unutilised tax losses, unabsorbed capital
allowances and reinvestment allowance amounting to approximately $1,602,576 (1999 :
$1,879,000) available for setting-off against future taxable profit subject to the regulations and
agreements by the relevant tax authorities.
7. Dividend
Proposed final dividend 1,117 38 1,117 38
As disclosed in note 33 the Company currently has an issued and paid-up share capital of
285,673,158 ordinary shares of $0.05 each. The proposed final dividend is provided at a rate of
10.5% of the par value less income tax of 25.5% on the enlarged share capital. In the previous
year, dividend was proposed at the rate of 0.5% on 104,288,009 ordinary shares of $0.10 each
less income tax of 26%.
8. Earnings per share
Group
2000 1999
$’000 $’000
Earnings after taxation 2,215 1,511
‘000 ‘000
Weighted average number of ordinary shares for
calculation of basic earnings per share 104,288 104,288
Cents Cents
Basic earnings per share 2.12 1.45
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Eu Yan Sang International Ltd and Subsidiary Companies
Notes to the Financial Statements – 30 June 2000
9. Fixed assets
Group
Cost and valuation
Land and buildings Furniture,
Long-term fittings and Motor Plant and
Freehold leasehold equipment vehicles Renovations machineries Total
$’000 $’000 $’000 $’000 $’000 $’000 $’000
At 1 July 1999 4,494 18,007 3,660 1,127 727 1,504 29,519
Currency alignment 69 30 25 5 4 27 160
Additions – – 719 90 332 42 1,183
Disposals – – (3) (169) – – (172)
Deficit on valuation (163) – – – – – (163)
At 30 June 2000 4,400 18,037 4,401 1,053 1,063 1,573 30,527
Representing -
Cost – – 4,401 1,053 1,063 1,573 8,090
Valuation 4,400 18,037 – – – – 22,437
4,400 18,037 4,401 1,053 1,063 1,573 30,527
Accumulated depreciation
At 1 July 1999 14 1 2,727 411 387 647 4,187
Currency alignment – – 19 3 2 12 36
Charge for the year 32 63 517 161 194 306 1,273
Disposals – – (2) (140) – – (142)
Transfer to revaluation surplus (14) – – – – – (14)
At 30 June 2000 32 64 3,261 435 583 965 5,340
Charge for 1999 27 94 490 110 121 296 1,138
Net book value
At 30 June 2000 4,368 17,973 1,140 618 480 608 25,187
At 30 June 1999 4,480 18,006 933 716 340 857 25,332

Notes to the Financial Statements – 30 June 2000
9. Fixed assets (cont’d)
Company
Motor
Furniture,
fittings and
vehicles equipment Total
$’000 $’000 $’000
Cost
At 1 July 1999 675 263 938
Additions – 54 54
Disposals (144) (1) (145)
At 30 June 2000 531 316 847
Accumulated depreciation
At 1 July 1999 115 227 342
Charge for the year 106 34 140
Disposals (115) – (115)
At 30 June 2000 106 261 367
Charge for 1999 56 39 95
Net book value
At 30 June 2000 425 55 480
At 30 June 1999 560 36 596
(a) Included under long-term leasehold land and building is investment properties stated at
valuation with a net book value of $8,830,000 (1999 : $8,830,000). The market value of
investment properties was based on independent professional valuation carried out by Jones
Lang LaSalle on 30 June 1999 on the basis of an open market value for existing use. The
directors are of the opinion that this value has not changed materially as at 30 June 2000.
(b) Certain properties of the Group with net book value of $20.9 million (1999 : $22.5 million)
have been mortgaged to secure credit facilities (notes 19 and 21).
Group Company
2000 1999 2000 1999
$’000 $’000 $’000 $’000
(c) Net book value of fixed assets
under hire purchase 466 560 425 560
10. Deferred expenditure
Group
2000 1999
$’000 $’000
Cost 208 202
Less : Accumulated amortisation (136) (67)
72 135
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Eu Yan Sang International Ltd and Subsidiary Companies
Notes to the Financial Statements – 30 June 2000
11. Subsidiary companies
Company
2000 1999
$’000 $’000
Unquoted shares, at cost 15,549 15 ,539
12. Associated companies
Group Company
2000 1999 2000 1999
$’000 $’000 $’000 $’000
Unquoted shares, at cost
Goodwill paid on subscription of
4,300 – 4,300 –
shares in an associated company (2,363) – – –
1,937 – 4,300 –
13. Stocks
Group
2000 1999
$’000 $’000
Trading stocks 8,474 6 ,334
Packaging materials 70 77
8,544 6 ,411
Provision for stocks obsolescence (297) (273)
Analysis of provision for stock obsolescence :
8,247 6 ,138
Balance at beginning of year 273 109
Charge to profit and loss 24 164
Balance at end of year 297 273
Stocks consist principally of fine medicine, Chinese and Western medicines and pills held
for re-sale.
14. Trade debtors
Group
2000 1999
$’000 $’000
Trade debtors are stated after deducting provision for
doubtful debts of 114 125
Analysis of provision for doubtful debts :
Balance at beginning of year 125 122
(Writeback)/charge to profit and loss account (12) 3
Currency realignment 1 –
Balance at end of year 114 125
Bad debts written off directly to profit and loss account 34 1

Notes to the Financial Statements – 30 June 2000
15. Other debtors
Group Company
2000 1999 2000 1999
$’000 $’000 $’000 $’000
Sundry deposits 451 332 5 –
Prepaid expenses 622 125 546 10
Tax recoverable 106 94 106 94
Sundry debtors 173 243 61 13
1,352 794 718 117
16. Amounts due (to)/from related parties
Related parties are companies in which certain directors have substantial financial interest.
Amounts due (to)/from related parties are trade related, interest-free and have no fixed terms
of repayment.
17. Amounts due from/(to) subsidiary companies
Company
2000 1999
$’000 $’000
Amounts owing by subsidiary companies 1,528 1 ,611
Loans to subsidiary companies 5,148 5 ,664
Dividend receivable 350 413
7,026 7 ,688
Provision for amount owing by a subsidiary company (268) (268)
6,758 7 ,420
The amounts owing by/(to) subsidiary companies are unsecured, interest-free and have no
fixed terms of repayment.
The loans to subsidiary companies are unsecured, bear interest between 3.68% to 4.84%
(1999 : 4% to 12%) per annum and have no fixed terms of repayment.
18. Amounts due from/(to) associated companies
Group Company
2000 1999 2000 1999
$’000 $’000 $’000 $’000
Amount due from an associated company – 1 – 1
Loan to an associated company – 227 – –
Amount due to an associated company (2,150) – (2,150) –
Provision for amount owing by an
(2,150) 228 (2,150) 1
associated company – (19) – –
(2,150) 209 (2,150) 1
Amounts due from an associated company and loan to an associated company are nontrade
related, unsecured, interest-free and have no fixed term of repayment.
Amount due to an associated company is unsecured, interest free and is repayable within
three months after balance sheet date.
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Eu Yan Sang International Ltd and Subsidiary Companies
Notes to the Financial Statements – 30 June 2000
19. Amounts due to bankers
Group Company
2000 1999 2000 1999
$’000 $’000 $’000 $’000
Bank loan, secured (note 21) 215 229 – –
Bank overdraft, secured
Short term loans
1,356 1,445 – –
- secured 13,740 12,240 13,490 11 ,990
- unsecured 1,000 500 1,000 500
16,311 14,414 14,490 12 ,490
The amounts due to bankers bear interest between 2.75% to 5.2% (1999 : 3.21% to 11.54%) per
annum, and are secured by certain properties of the Group (Note 9).
20. Other creditors
Accrued expenses 920 556 249 254
Sundry provisions 443 326 117 97
Sundry creditors 311 736 6 459
Hire purchase creditors (note 22) 65 100 53 93
1,739 1,718 425 903
21. Bank loans, secured
Group
2000 1999
$’000 $’000
Repayable within 12 months (note 19) 215 229
Repayable after 12 months 320 485
535 714
The bank loans which are secured by certain properties of the Group bear interest between
1.75% to 2.00% (1999 : 1.75% to 2.00%) above prevailing prime rate and are repayable over a
period of 5 years by 60 monthly instalments.

Notes to the Financial Statements – 30 June 2000
22. Hire purchase creditors
Group Company
2000 1999 2000 1999
$’000 $’000 $’000 $’000
Repayable within one year (included in
other creditors) 65 100 53 93
Repayable after one year 295 34 269 –
360 134 322 93
The future payments under hire purchase are as follows :
2000 – 32 – 22
2001 73 32 64 22
2002 73 32 64 22
2003 73 32 64 22
2004 73 34 64 26
Remaining years 137 – 129 –
429 162 385 114
Amounts representing interest (69) (28) (63) (21)
360 134 322 93
23. Deferred taxation
The deferred taxation arises as a result of :
Excess of net book value over tax
written down value of fixed assets 39 152 – –
Provision – (71) – –
39 81 – –
24. Share capital
Authorised :
Balance at beginning and at end of year
Group and Company
2000 1999
$’000 $’000
400,000,000 ordinary shares of $0.10 each
Issued and fully paid :
Balance at beginning of year
40,000 40,000
104,288,009 (1999 : 102,350,287) ordinary shares of $0.10 each
Issued during the year :
Nil (1999 : 1,937,722) ordinary shares of $0.10 each
10,429 10,235
at a premium of $nil (1999 : $0.1561) per share (note 26) – 194
Balance at end of year
104,288,009 (1999 : 104,288,009) ordinary shares of $0.10 each 10,429 10,429
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Eu Yan Sang International Ltd and Subsidiary Companies
Notes to the Financial Statements – 30 June 2000
25. Reserves
Group Company
2000 1999 2000 1999
$’000 $’000 $’000 $’000
Non-distributable reserves
Asset revaluation reserve
Balance at beginning of year 4,064 7,677 – –
Less : Deficit on revaluation (149) (3,613) – –
Balance at end of year 3,915 4,064 – –
Distributable reserves
Revenue reserve
At beginning of year 4,438 2,965 888 309
Retained profit for the year 1,098 1,473 – 579
Transfer to profit and loss accounts
Goodwill arising on consolidation
– – (345) –
written off (2,318) – – –
At end of year 3,218 4,438 543 888
Foreign currencies translation reserve
At beginning of year (2,011) (2,379) – –
Net movement 143 368 – –
At end of year (1,868) (2,011) – –
Total distributable reserves 1,350 2,427 543 888
Total reserves 5,265 6,491 543 888
26. Share premium
Group and Company
2000 1999
$’000 $’000
Share premium account :
At beginning of year
Premium on issuance of nil (1999 : 1,937,722)
ordinary shares of $0.10 each at a premium of $nil
519 216
(1999 : $0.1561) per share (note 24) – 303
At end of year 519 519

Notes to the Financial Statements – 30 June 2000
27. Cash and cash equivalents
Cash and cash equivalents included in the consolidated statement of cash flows comprise the
following balance sheet amounts :
Group
2000 1999
$’000 $’000
Cash and bank balances 3,490 3 ,326
Bank overdrafts (note 19) (1,356) (1,445)
Fixed bank deposits 110 300
2,244 2 ,181
28. Lease commitments
The Group leases certain properties under lease agreements that are non-cancellable within a
year. The leases expires at various dates till 2003. Future minimum lease payments for all leases
with initial or remaining terms of one year or more are as follows :
Group Company
2000 1999 2000 1999
$’000 $’000 $’000 $’000
2000 – 1,225 – –
2001 1,353 996 – –
2002 498 269 – –
2003 121 – – –
1,972 2,490 – –
29. Capital commitment
On 8 May 2000, the Company signed a joint venture agreement to subscribe for 50,000 ordinary
shares of $1.00 each at par, representing 50% of the initial paid up capital of Yin Yang Spa Pte
Ltd (“YYS”), a company incorporated in Singapore on 26 May 2000. As at year end, the Company
has not paid up any capital for YYS.
Under the joint venture agreement, the Company is given an option to acquire from the other
shareholder of YYS 1% of the issued and paid up capital of YYS to increase the Company’s
shareholding in YYS to 51%. The option is exercisable one year after the date of the joint venture
agreement at a price which is equivalent to YYS’s net tangible assets at the date which the
option is exercised.
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Eu Yan Sang International Ltd and Subsidiary Companies
Notes to the Financial Statements – 30 June 2000
30. Related party transactions
The Company and the Group have the following transactions with subsidiary companies and
related parties at rates and terms agreed between the parties :
Group Company
2000 1999 2000 1999
$’000 $’000 $’000 $’000
Dividend income from subsidiary
companies
Interest received from subsidiary
– – – (564)
companies
Management fee received from subsidiary
– – (223) (310)
companies – – (1,225) (1,081)
Rental paid to a subsidiary company – – 54 54
Management fee received from related
parties (1,501) (1,340) (1,501) (1,340)
Sales of goods to related parties (2,665) (1,088) – –
Purchase of goods from related parties 916 849 – –
Rental received from related parties – (35) – –
31. Contingent liabilities
Company
2000 1999
$’000 $’000
Contingent liabilities not provided in the financial statements :
Corporate guarantees given to bankers for credit
facilities granted to subsidiary companies 4,500 4,000
32. Segment reporting
Turnover
Profit
before taxation Assets employed
2000 1999 2000 1999 2000 1999
$’000 $’000 $’000 $’000 $’000 $’000
(a) By activities
TCM 33,488 28,309 2,274 1,586 26,907 23,784
Others 1,945 1,866 754 298 15,092 14,857
Associated companies – – – – 1,937 209
35,433 30,175 3,028 1,884 43,936 38,850
(b) By geographical location based on country of incorporation
Singapore 19,600 17,201 989 662 27,171 25,193
Malaysia 15,833 12,974 2,039 1,222 14,828 13,448
Associated companies – – – – 1,937 209
35,433 30,175 3,028 1,884 43,936 38,850

Notes to the Financial Statements – 30 June 2000
33. Subsequent events
Subsequent to the balance sheet date, the Company :
(i) increased its authorised shares capital from $40,000,000, comprising 400,000,000 ordinary
shares of $0.10 each, to $80,000,000 comprising 800,000,000 ordinary shares of $0.10 each,
by creating additional 400,000,000 ordinary shares of $0.10 each;
(ii) issued 2,798,570 new ordinary shares of $0.10 each at par in consideration for the acquisition
of Essence Holdings Limited pursuant to a Restructuring Exercise on 3 July 2000. The Company
acquired 63,804,085 ordinary shares of HK$1.00 each in Essence Holding Limited (“Essence”)
from the other shareholders of Essence. The purchase consideration of Essence was
computed based on its audited Group net asset value of HK$1,303,546 as at 29 February
2000 and taking into account the 2,011,784 ordinary shares of Essence which were already
held by the Company;
(iii) subdivided each of the ordinary shares of $0.10 each in the authorised and issued share
capital of the Company into 2 ordinary shares of $0.05 each;
(iv)issued 71,500,000 new ordinary shares of $0.05 each at a premium of $0.30 each pursuant to
an initial public offering exercise; and
(v) listed on the SGX-ST on 28 July 2000.
Upon the completion of the initial public offering exercise, the resultant issued and paid up
share capital of the Company increased from $10,428,801 comprising 104,288,009 ordinary shares
of $0.10 each to $14,283,658 comprising 285,673,158 ordinary shares of $0.05 each.
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Eu Yan Sang International Ltd and Subsidiary Companies
Proforma Group Profit and Loss Account for the year
ended 30 June 2000
Note 2000 1999
$’000 $’000
Turnover 3 72,092 64 ,205
Profit before taxation 4 7,316 5 ,122
Taxation 6 (1,557) (1 ,111)
Profit after taxation 5,759 4 ,011
Dividend 7 (1,117) (38)
Retained profit for the year 4,642 3 ,973
Basic earnings per share (cents) 8 2.69 1.87
The accompanying notes form an integral part of the Proforma financial statements.
Proforma Group Balance Sheet as at 30 June 2000
Note 2000 1999
$’000 $’000
Fixed assets 9 32,226 33 ,634
Deferred expenditure 10 72 135
Associated companies
Current assets
11 1,937 –
Stocks 12 14,767 11 ,639
Trade debtors 13 3,386 2 ,723
Other debtors 14 3,495 2 ,283
Amounts due from an associated company 15 – 209
Fixed banks deposits 174 408
Cash and bank balances 4,251 5 ,464
Deduct : Current liabilities
26,073 22 ,726
Amounts due to bankers 16 29,254 15 ,071
Trade creditors 5,844 4 ,371
Other creditors 17 3,015 3 ,105
Amounts due to an associated company 15 2,150 –
Provision for taxation 1,357 1 ,113
Proposed dividend, net 1,117 39
42,737 23 ,699
Net current liabilities
Long-term liabilities
(16,664) (973)
Bank loan, secured 18 320 485
Hire purchase creditors 19 295 34
Deferred taxation 20 39 81
(654) (600)
16,917 32 ,196
Shareholders’ equity 21 16,917 32 ,196
The accompanying notes form an integral part of the Proforma financial statements.

Notes to the Proforma Group Financial Statements –
30 June 2000
1. Basis of presentation of Proforma Group financial statements
The financial information set out in the Proforma financial statements is based on the audited
financial statements of the companies that comprise the Proforma Group for the financial years
ended 30 June 1999 and 30 June 2000. It has been prepared in accordance with the accounting
policies set out in the notes to the financial statements on the basis that the Proforma Group, as
reconstructed pursuant to the Restructuring Exercise described below, had been in place
throughout the financial years ended 30 June 1999 and 30 June 2000 and after making
appropriate consolidation adjustments.
In connection with the Company’s listing exercise, a Restructuring Exercise took place pursuant
to which the Company acquired the entire issued and paid-up share capital of Essence Holdings
Limited (“Essence”) and through its subsidiary company, Eu Yan Sang (Singapore) Private Limited,
acquired EYS Ventures Pte Ltd.
On 28 February 2000, Essence repurchased 66,666,667 of its own shares of par value of HK$1.00
each from some of its shareholders at a total consideration of HK$80,000,000.
On 3 July 2000, the Company acquired 63,804,085 ordinary shares of HK$1.00 each in Essence
from the other shareholders of Essence. The purchase consideration for Essence was computed
based on its audited Group net asset value of HK$1,303,546 as at 29 February 2000 and taking
into account the 2,011,784 ordinary shares of Essence which were already held by the Company.
The purchase consideration was satisfied by the allotment and issue of 2,798,570 new ordinary
shares of $0.10 each at par to the other shareholders of Essence.
On 10 July 2000, Essence was put into member’s voluntary liquidation. On 14 September 2000,
upon completion of its liquidation, all its assets including 183,017,105 ordinary shares of Eu Yan
Sang (Hong Kong) Limited, were distributed in specie to the Company.
On 1 June 2000, EYS Ventures Pte Ltd issued 1,998 additional ordinary shares of $1.00 each to Eu
Yan Sang (Singapore) Private Limited at par for cash to increase its paid up share capital to
$2,000.
On 5 June 2000, Eu Yan Sang (Singapore) Private Limited acquired the remaining two ordinary
shares of $1.00 each in EYS Ventures Pte Ltd from the existing shareholders of EYS Ventures Pte
Ltd at approximately $22 per ordinary share. The consideration for the acquisition of the shares
of EYS Ventures Pte Ltd was based on its adjusted net tangible assets of $44,780 as at 29 February
2000, after taking into account the additional shares issued to Eu Yan Sang (Singapore) Private
Limited.
Upon the completion of the restructuring exercise, Eu Yan Sang (Hong Kong) Limited and EYS
Ventures Pte Ltd became wholly-owned subsidiary companies of the Company and the resultant
issued and paid-up share capital of the Company increased from $10,428,801 comprising
104,288,009 ordinary shares to $10,708,658 comprising 107,086,579 ordinary shares.
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Eu Yan Sang International Ltd and Subsidiary Companies
Notes to the Proforma Group Financial Statements –
30 June 2000
1. Basis of presentation of Proforma Group financial statements (cont’d)
Upon completion of the Restructuring Exercise, the Company has the following subsidiary and
associated companies (referred to collectively with the Company as the “Proforma Group”) :
Country of
Issued and paidup/registered
incorporation capital (after Percentage
Name of and place of Principal Restructuring of equity held
company business activities Exercise) by the Group
Subsidiary companies
’000 %
Eu Yan Sang Singapore Distribution and S$ 500 100
(Singapore) sale of traditional
Private Limited Chinese and
other medicines
Eu Yan Sang (1959) Malaysia Distribution and RM 6,033 100
Sdn Berhad sale of traditional
Chinese and
other medicines
Eu Realty Singapore Property investment S$ 827 100
(Singapore) Private and sale of traditional
Limited Chinese and other
medicines
Weng Li Sdn Bhd Malaysia Commission agent
in all kinds of
pharmaceutical
products and
manufacturer of
medical pills and
capsules
RM 100 100
Essence Holdings The Investment HK$ 65,816 100
Limited (Liquidated British holding
on 4 September 2000) Virgin
Islands
Eu Yan Sang Malaysia Property investment RM 100 100
Heritage Sdn Bhd and provision of
management services
EYS Ventures Singapore Remittance commission S$ 2 100
Pte Ltd # agent
Eu Yan Sang
Marketing Private
Limited
Singapore Dormant S$ 10 100

Notes to the Proforma Group Financial Statements –
30 June 2000
1. Basis of presentation of Proforma Group financial statements (cont’d)
Country of
Issued and paidup/registered
incorporation capital (after Percentage
Name of and place of Principal Restructuring of equity held
company business activities Exercise) by the Group
Subsidiary companies
’000 %
EYS Corporation
Limited
Hong Kong Dormant @ 100
Eu Yan Sang Hong Kong Manufacturing HK$ 18,302 100
(Hong Kong) processing and
Limited sales of traditional
Chinese medicines
Eu Yan Sang
(China Ventures)
Limited
Hong Kong Dormant @ 100
Synco (H.K.) Hong Kong Manufacturing, HK$ 700 100
Limited processing and
sales of western
pharmaceutical
products
Top Lot Limited Hong Kong General trading
and provision of
advertising agency
HK$ 3,610 100
Eu Yan Sang
(Properties) Limited
Hong Kong Property investment @ 100
Eu Yan Sang The British Dormant @ 100
(Export) Limited Virgin
Islands
Associated companies
Degree Achievement
Sdn Bhd
Malaysia Property investment @ 25
Oxford Natural Singapore Conduct laboratories 2,150 45
Products Asia and research in
Private Limited health and related
products
Yin Yang Spa Singapore To develop, manufacture @ 50
Pte Ltd and distribute Spa
products and services
# Held through Eu Yan Sang (Singapore) Private Limited
@ Denote amount less than $1,000
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Eu Yan Sang International Ltd and Subsidiary Companies
Notes to the Proforma Group Financial Statements –
30 June 2000
2. Significant accounting policies
(a) Basis of accounting
The Proforma Group financial statements, which are expressed in Singapore dollars, are
prepared under the historical cost convention modified by revaluation of certain fixed assets.
The Proforma Group financial statements are prepared in accordance with applicable
accounting standards.
(b) Basis of consolidation
The accounting year of the Company and all its subsidiary companies ends on 30 June and
the Proforma Group financial statements incorporate the financial statements of the
Company and all its subsidiary companies.
The results of subsidiary companies acquired or disposed of during the year are included in
or excluded from the respective dates of acquisition or disposal, as applicable. When
subsidiary companies are acquired, any excess of the consideration over the net assets at
the date of acquisition is included in goodwill on consolidation and written off against
Proforma Group reserves in the year in which it arises. Where the cost of acquisition of a
subsidiary company is less than the fair value of the net assets acquired, the discount on
acquisition is taken up as capital reserve. The name and principal activities of the subsidiary
companies are indicated in note 1.
Assets, liabilities and results of overseas subsidiary companies are translated into Singapore
dollars on the basis outlined in paragraph (k) below.
(c) Subsidiary companies
Investments in subsidiary companies are stated at cost. Provision is made for any permanent
diminution in value.
(d) Associated companies
Investments in associated companies are stated at cost. Provision is made for any permanent
diminution in value.
An associated company is defined as a company, not being a subsidiary, in which the
Proforma Group has a long-term interest of not less than 20% of the equity and in whose
financial and operating policy decisions the Proforma Group exercises significant influence.
The Proforma Group’s investments in associated companies are recorded at cost and
adjusted to recognise the Proforma Group’s share of the net assets of the associated
companies at the date of acquisition. The excess or deficit between the net assets of the
associated companies and in consideration paid is adjusted against reserves in the year of
acquisition.
The Proforma Group’s share of the results of associated companies is included in the Proforma
Group profit and loss account of the Proforma Group. The Group’s share of the postacquisition
reserves of associated companies is included in the investments in associated
companies in the Proforma Group balance sheet.

Notes to the Proforma Group Financial Statements –
30 June 2000
(e) Revenue recognition
Revenue from the sale of goods are recognised upon passage of title to the customer which
generally coincides with their delivery and acceptance.
Rental income is recognised on an accrual basis. Dividend income is included to the extent
of dividends declared during the year. Interest income is accrued on a day-to-day basis.
(f) Fixed assets
Fixed assets are stated at cost or valuation less accumulated depreciation. The cost of an
asset comprises its purchase price and any directly attributable costs of bringing the asset to
a working condition for its intended use including interests capitalised. Expenditure for
additions, improvements and renewals are capitalised, and expenditure for maintenance
and repairs are charged to the profit and loss account. When assets are sold or retired, their
cost and accumulated depreciation are removed from the financial statements and any
gain or loss resulting from their disposal is included in the profit and loss account. Any surpluses
held in asset revaluation reserves in respect of previous revaluations of fixed assets disposed
of during the year are regarded as having become realised and are transferred to the profit
and loss account.
Revaluation surpluses arising on valuations of the Proforma Group’s properties are credited
direct to asset revaluation reserves. Revaluation deficits are taken to the profit and loss
account in the absence of or to the extent that they exceed any surpluses held in reserves
relating to previous revaluations. Investment properties are revalued annually by the Directors.
An independent professional valuation is conducted periodically based on an open market
value basis.
(g) Deferred expenditure
Deferred expenditure comprises preproduction and preliminary expenses which is written
off to profit and loss account on a straight line basis over a three-year period commencing
from the date of commercial operations.
(h) Stocks
Stocks are stated at the lower of cost and net realisable value. Cost comprises direct materials
on a first-in-first-out basis and in the case of finished products, includes direct labour and
attributable production overheads based on a normal level of activity. Net realisable value
is the estimated selling price less anticipated cost of disposal and after making allowance
for damaged, obsolete and slow-moving items.
(i) Deferred taxation
Deferred taxation is accounted for under the liability method whereby the tax charge for
the year is based on the disclosed book profit after adjusting for all permanent differences.
The amount of taxation deferred on account of all timing differences is reflected in the
deferred taxation account. Deferred tax benefits are not recognised unless there is a
reasonable expectation of their realisation.
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Eu Yan Sang International Ltd and Subsidiary Companies
Notes to the Proforma Group Financial Statements –
30 June 2000
(j) Depreciation
Depreciation is calculated on the straight line method to write off the cost or valuation of
fixed assets over their estimated useful lives. The estimated useful lives of fixed assets are as
follows:-
Freehold and leasehold buildings - 50 years
Furniture, fittings and equipment - 3 - 5 years
Motor vehicles - 5 years
Renovations - 3 - 5 years
Plant and machineries - 2 - 5 years
Plastic moulds - 5 years
Fully depreciated fixed assets are retained in the financial statements until they are no longer
in use and no further charge for depreciation is made in respect of these assets.
Investment properties are stated at valuation and no depreciation were deemed necessary
by the directors of the Company.
(k) Foreign currencies
Transactions arising in foreign currencies during the year are converted at rates closely
approximating those ruling on the transaction dates. Foreign currency monetary assets and
liabilities are converted into local currency at year-end exchange rates. All exchange
differences arising from conversion are included in the profit and loss account.
For inclusion in the consolidated financial statements, all assets and liabilities foreign subsidiary
companies and associated companies are translated into Singapore dollars at exchange
rates ruling at the balance sheet date and the results of foreign subsidiary companies and
associated companies are translated at the average exchange rates. Exchange differences
due to such currency translations are included in Group foreign currencies translation reserve.
(l) Leased assets
Where assets are financed by lease agreements that give rights approximating to ownership
(finance leases), the assets are capitalised under fixed assets as if they had been purchased
outright at the values equivalent to the present values of total rental payable during the
periods of the leases and the corresponding lease commitments are included under liabilities.
Lease payments are treated as consisting of capital and interest elements and the interest is
charged to profit and loss account. Depreciation on the relevant assets is charged to profit
and loss account on the basis outlined in paragraph (j) above.
Annual rental on operating leases is charged to profit and loss account.
3. Turnover
Turnover for the Proforma Group represents rental income and sales of goods at invoiced value
less returns and trade discounts. It excludes intra-group transactions.
2000 1999
$’000 $’000
Turnover is analysed as follows :-
Rental 297 705
Sales of goods 71,795 63 ,500
72,092 64 ,205

Notes to the Proforma Group Financial Statements –
30 June 2000
4. Profit before taxation
Profit before taxation is stated after charging/(crediting) :
2000 1999
$’000 $’000
Amortisation of deferred expenditure 69 67
Depreciation of fixed assets 3,094 3 ,169
(Profit)/loss on sale of fixed assets (13) 5
Fixed assets written off 19 12
Directors’ emoluments
Auditors’ remuneration :
- Auditors of parent Company
593 525
• audit fees 40 43
• non-audit fees 32 –
• prior year underprovision
- Other auditors
– 3
• audit fees 80 115
• prior year under provision – 9
Interest expense (note 5) 1,121 1 ,533
Interest income (76) (76)
Net exchange gain
(Writeback of provision)/provision for amount
(36) (308)
owing by an associated company (19) 19
(Writeback of provision)/provision for doubtful debts (68) 223
Bad debts written off 36 1
Details of Directors’ remuneration of the Company pursuant to the Singapore Exchange Securities
Trading Limited’s Listing rules are as follows:
Number of Directors in remuneration bands
2000 1999
$500,000 and above – –
$250,000 to $499,999 1 1
Below $250,000 8 7
Total 9 8
5. Interest expense
2000 1999
$’000 $’000
Interest on bank loan 426 522
Interest on bank overdrafts 148 214
Interest on hire purchase 11 11
Interest on short term loan 536 786
1,121 1 ,533
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Eu Yan Sang International Ltd and Subsidiary Companies
Notes to the Proforma Group Financial Statements –
30 June 2000
6. Taxation
Provision for taxation in respect of profit for the year :
2000 1999
$’000 $’000
Current taxation - Hong Kong 839 738
- Singapore 360 223
- Malaysia 513 92
Deferred taxation (42) (21)
(Over)/underprovision in respect of previous year (113) 79
1,557 1, 111
The taxation charge for the Proforma Group is materially lower than the amount determined by
applying the Singapore income tax rate of 25.5% (1999 : 26%) to the pre-tax profits because of
lower tax rates applicable to overseas subsidiary companies and certain subsidiary company
utilised its tax losses, unabsorbed capital allowances and reinvestment allowance to offset against
its tax profits.
As at 30 June 2000, certain subsidiary companies have unutilised tax losses, unabsorbed capital
allowances and reinvestment allowance amounting to approximately $2,073,000 (1999 :
$2,261,000) available for setting-off against future taxable profit subject to the regulations and
agreements by the relevant tax authorities.
7. Dividend
2000 1999
$’000 $’000
Proposed final dividend 1,117 38
As disclosed in note 25 the Company currently has an issued and paid up share capital of
285,673,158 ordinary shares of $0.05 each. The proposed final dividend is provided at a rate of
10.5% of the par value less income tax of 25.5% on the enlarged share capital. In the previous
year, dividend was proposed at the rate of 0.5% on 104,288,009 ordinary shares of $0.10 each
less income tax of 26%.
8. Earnings per share
2000 1999
$’000 $’000
Earnings after taxation 5,759 4 ,011
Weighted average number of ordinary shares for
‘000 ‘000
calculation of basic earnings per share 214,173 214 ,173
Cents Cents
Basic earnings per share 2.69 1.87

Notes to the Proforma Group Financial Statements –
30 June 2000
9. Fixed assets
Land and buildings Furniture,
Long-term fittings and Motor Plant and Plastic
Freehold leasehold equipment vehicles Renovations machineries moulds Total
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Cost and valuation
At 1 July 1999 4,494 24,186 11,941 1,368 727 1,504 110 44,330
Currency alignment 69 115 138 8 4 27 2 363
Additions – – 1,210 90 332 42 8 1,682
Disposals – – (335) (169) – – (1) (505)
Deficit on valuation (163) – – – – – – (163)
At 30 June 2000 4,400 24,301 12,954 1,297 1,063 1,573 119 45,707
Representing -
Cost – 6,264 12,954 1,297 1,063 1,573 119 23,270
Valuation 4,400 18,037 – – – – – 22,437
4,400 24,301 12,954 1,297 1,063 1,573 119 45,707
Accumulated depreciation
At 1 July 1999 14 1,195 7,779 593 387 647 81 10,696
Currency alignment – 16 88 6 2 12 1 125
Charge for the year 32 282 2,077 183 194 306 20 3,094
Disposals
Transfer to revaluation
– – (279) (140) – – (1) (420)
surplus (14) – – – – – – (14)
At 30 June 2000 32 1,493 9,665 642 583 965 101 13,481
Charge for 1999 27 310 2,251 136 121 296 28 3,169
Net book value
At 30 June 2000 4,368 22,808 3,289 655 480 608 18 32,226
At 30 June 1999 4,480 22,991 4,162 775 340 857 29 33,634
(a) Included under long-term leasehold land and building is investment properties stated at
valuation with a net book value of $8,830,000 (1999 : $8,830,000). The market value of
investment properties was based on independent professional valuation carried out by Jones
Lang LaSalle on 30 June 1999 on the basis of an open market value for existing use. The
directors are of the opinion that this value has not changed materially as at 30 June 2000.
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Eu Yan Sang International Ltd and Subsidiary Companies
Notes to the Proforma Group Financial Statements –
30 June 2000
9. Fixed assets (cont’d)
(b) Certain properties of the Group with net book value of $25.7 million (1999 : $26.5 million)
have been mortgaged to secure credit facilities (notes 16 and 18).
2000 1999
$’000 $’000
(c) Net book value of fixed assets under hire purchase 466 560
10. Deferred expenditure
Cost 208 202
Less : Accumulated amortisation (136) (67)
72 135
11. Associated companies
Unquoted shares, at cost
Goodwill paid on subscription of shares in an
4,300 –
associated company (2,363) –
1,937 –
12. Stocks
Raw materials 1,431 1 ,375
Work-in-progress 644 567
Finished goods 13,274 10 ,194
Packaging materials 70 77
15,419 12, 213
Provision for stocks obsolescence (652) (574)
Analysis of provision for stock obsolescence :
14,767 11 ,639
Balance at beginning of year 574 487
Charge to profit and loss 78 87
Balance at end of year 652 574
13. Trade debtors
Trade debtors are stated after deducting provision for
doubtful debts of 618 678
Analysis of provision for doubtful debts :
Balance at beginning of year 678 463
(Writeback)/charge to profit and loss account (68) 223
Written off against bad debts – (8)
Currency realignment 8 –
Balance at end of year 618 678
Bad debts written off directly to profit and loss account 36 1

Notes to the Proforma Group Financial Statements –
30 June 2000
14. Other debtors
2000 1999
$’000 $’000
Sundry deposits 2,179 1 ,590
Prepaid expenses 1,030 137
Tax recoverable 106 94
Sundry debtors 180 462
3,495 2 ,283
15. Amounts due from/(to) associated companies
Amount due from an associated company – 1
Loan to an associated company – 227
Amount due to an associated company (2,150) –
(2,150) 228
Provision for amount owing by an associated company – (19)
(2,150) 209
Amounts due from an associated company and loan to an associated company are nontrade
related, unsecured, interest-free and have no fixed term of repayment.
Amounts due to an associated company is unsecured, interest free and is repayable within
three months after balance sheet date.
16. Amounts due to bankers
Bank loan, secured (note 18) 215 229
Bank overdraft, secured
Short term loans
3,199 1 ,445
- secured 24,840 12 ,897
- unsecured 1,000 500
29,254 15 ,071
The amounts due to bankers bear interest between 1.75% to 12.5% (1999 : 1.75% to 11.54%) per
annum, and are secured by certain properties of the Group (Note 9).
17. Other creditors
Accrued expenses 1,314 1 ,017
Sundry provisions 1,315 1 ,225
Sundry creditors 321 763
Hire purchase creditors (note 19) 65 100
3,015 3 ,105
18. Bank loans, secured
Repayable within 12 months (note 16) 215 229
Repayable after 12 months 320 485
535 714
The bank loans which are secured by certain properties of the Group bear interest between
1.75% to 2.00% (1999 : 1.75% to 2.00%) above prevailing prime rate and are repayable over a
period of 5 years by 60 monthly instalments.
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Eu Yan Sang International Ltd and Subsidiary Companies
Notes to the Proforma Group Financial Statements –
30 June 2000
19. Hire purchase creditors
2000 1999
$’000 $’000
Repayable within one year (included in other creditors) 65 100
Repayable after one year 295 34
360 134
The future payments under hire purchase are as follows :
2000 – 32
2001 73 32
2002 73 32
2003 73 32
2004 73 34
Remaining years 137 –
429 162
Amounts representing interest (69) (28)
360 134
20. Deferred taxation
The deferred taxation arises as a result of :
Excess of net book value over tax written down value
of fixed assets 39 152
Provision – (71)
39 81
21. Shareholders’ equity
The shareholders’ equity set out in the Proforma balance sheet is represented by the following :
Share capital 10,709 10 ,709
Reserves 6,208 21 ,487
16,917 32 ,196
22. Lease commitments
The Group leases certain properties under lease agreements that are non-cancellable within a
year. The leases expires at various dates till 2003. Future minimum lease payments for all leases
with initial or remaining terms of one year or more are as follows :
2000 – 1 ,713
2001 2,829 3 ,038
2002 2,272 1 ,460
2003 243 –
5,344 6 ,211

Notes to the Proforma Group Financial Statements –
30 June 2000
23. Capital commitments
(a) On 8 May 2000, the Company signed a joint venture agreement to subscribe for 50,000
ordinary shares of $1.00 each at par, representing 50% of the initial paid up capital of Yin
Yang Spa Pte Ltd (“YYS”), a company incorporated in Singapore on 26 May 2000. As at year
end, the Company has not paid up any capital for YYS.
Under the joint venture agreement, the Company is given an option to acquire from the
other shareholder of YYS one percent of the issued and paid up capital of YYS to increase
the Company’s shareholding in YYS to 51%. The option is exercisable one year after the date
of the joint venture agreement at a price which is equivalent to YYS’s net tangible assets at
the date which the option is exercised.
2000 1999
$’000 $’000
(b) Other capital commitments authorised and contracted
but not provided for in the financial statements 937 –
24. Segment reporting
Profit/(loss)
Turnover before taxation Assets employed
2000 1999 2000 1999 2000 1999
$’000 $’000 $’000 $’000 $’000 $’000
(a) By activities
TCM 65,234 57,028 6,907 5,333 40,587 35,884
Ethical drugs 6,562 6,473 1,369 1,085 4,676 6,150
Others 296 704 (960) (1,296) 13,108 14,252
Associated companies – – – – 1,937 209
72,092 64,205 7,316 5,122 60,308 56,495
(b) By geographical location based on country of incorporation
Hong Kong 40,972 36,590 4,539 3,303 19,027 19,244
Singapore 15,434 14,642 885 596 24,585 23,456
Malaysia 15,686 12,973 1,892 1,223 14,759 13,586
Associated companies – – – – 1,937 209
72,092 64,205 7,316 5,122 60,308 56,495
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Eu Yan Sang International Ltd and Subsidiary Companies
Notes to the Proforma Group Financial Statements –
30 June 2000
25. Subsequent events
Subsequent to the financial year, the Company :
(i) increased its authorised shares capital from $40,000,000, comprising 400,000,000 ordinary
shares of $0.10 each, to $80,000,000 comprising 800,000,000 ordinary shares of $0.10 each,
by creating additional 400,000,000 ordinary shares of $0.10 each;
(ii) subdivided each of the ordinary shares of $0.10 each in the authorised and issued share
capital of the Company into 2 ordinary shares of $0.05 each;
(iii) issued 71,500,000 new ordinary shares of $0.05 each at a premium of $0.30 each pursuant to
an initial public offering exercise; and
(iv)listed on the SGX-ST on 28 July 2000.
Upon the completion of the initial public offering exercise, the resultant issued and paid up
share capital of the Company increased from $10,428,801 comprising 104,288,009 ordinary shares
of $0.10 each to $14,283,658 comprising 285,673,158 ordinary shares of $0.05 each.

Portfolio of Properties
Properties/ Location Tenure Floor Area (sq ft) Usage
Properties occupied by the Group
Singapore
265A South Bridge Road 999 years from
1/10/1823
1,408 Office
269 South Bridge Road Lot 99871A 999 years 15,048 Shop/ office/
from 1/10/1823
Lot 99869K, 99868A &
99866P 999 years from
1/10/1827
warehouse
273A South Bridge Road 999 years from 1/10/1823 2,526 Office
Malaysia
Nos. 9 & 11 Jalan Petaling Freehold 5,464 Shop/ office/
Kuala Lumpur warehouse
Nos 22 & 23 Jalan Dato Bandar
Tunggal Negeri Sembilan
Freehold 13,263 Shop
No. 1 SS 2/67 SEA Park Petaling
Jaya Selangor
Freehold 7,418 Shop/ office
Nos 36 & 38 Leech Street,
Ipoh Perak
Freehold 5,880 Shop/ warehouse
No. 2 Jalan Othman Talib & No 1
Lorong Iskandar Shah, Ipoh Perak
Freehold 4,140 Shop/ warehouse
No. 98 Jalan Idris Kampar Freehold 4,600 Shop/ warehouse
No. 156 Lebuh Chulia Georgetown Freehold 18,800 Shop/ office/
Pulau Pinang warehouse
Lot No. LG15, Lower Ground floor
The Summit, Subang
Freehold 778 Shop
No 4 Persiaran 1/118C, Desa Tun 99 years lease expiring 11,360 Factory
Razak Industrial Park II Cheras on 20/3/2085
Hong Kong
3rd floor, Units B & F 4th floor, 75 years lease from 40,989 Office/ factory/
Unit F 10th floor 1/1/63; renewable for laboratory/
Sunview Industrial Building
No 3 On Yip Street, Chai Wan
a further 75 years warehouse
Ground floor, 192 Lai Chi Kok Road 75 years lease from 617 Shop
Shamshuipo Kowloon 23/3/1923; renewable
for a further 75 years
Investment Properties
Singapore
265, 265B&C South Bridge Road 999 years from 1/10/1823 4,182 Shop/office
273, 273B&C South Bridge Road 999 years from 1/10/1823 7,501 Shop/office
Malaysia
No 2 Persiaran 1/118C, Desa Tun 99 years lease expiring 7,200 Factory
Razak Industrial Park II Cheras on 20/3/2085
Lot B1-36 Lower Ground floor, Freehold 415 Shop
Skudai Parade Johor Bahru
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Corporate Governance
The Group is committed to maintaining a high standard of corporate governance in order to protect
the interest of its shareholders. To achieve this objective, the Group has put in place the following:
BOARD OF DIRECTORS
The Board comprises the following directors:
Mr Eu Joseph William Yee (Non-Executive Chairman)
Mr Eu Yee Ming Richard (Managing Director & CEO)
(Alternate: Dr Eu Yee Tat David)
Mr Eu Yee Fong Clifford
(Alternate: Mr Laurence Yee Lye Eu)
Mr Leung Alan Sze Yuan
Mr Eu Yee Sang Robert James
Mr Yeh Chung Woo David (Non-Executive)
Dr Jennifer Lee Gek Choo (Non-Executive)
The Board reviews and approves the Group’s key strategic operational plans, major investments
and funding decisions, financial performance and internal controls, as well as ensure that the principal
risks of the Group are identified and properly managed. It also reviews and approves the
announcement of the half-year and full-year results of the Group and the Company. Since the
initial public offering (IPO) of the Company in July 2000, the Board had met once to review and
approve the announcement of the full-year results.
The Board is also responsible for establishing a healthy corporate environment conducive to
maintaining and promoting good corporate governance within the Group.
The functions mentioned above are carried out directly or indirectly through various committees of
the Board or through key management personnel.
• Audit Committee
The Audit Committee comprises:
Mr Yeh Chung Woo David (Chairman)
Dr Jennifer Lee Gek Choo
Mr Eu Yee Fong Clifford

The Committee has adopted a Terms of Reference to regulate and govern its role, responsibilities
and proceedings. The Committee reviews the overall scope of the external audit, the assistance
given by Management to the Auditors, the audit plan and evaluates the Company’s system of
internal controls, including Interested Person Transactions where appropriate.
Since the IPO of the Company, the Committee had met once to review the announcement of
the full-year results before it was presented to the Board for approval, and monitored the extent
of the Group’s compliance with the Listing Manual of the Singapore Exchange Limited (“SGX”).
The Committee had also recommended the re-appointment of Messrs Ernst & Young as Auditors
of the Company at the forthcoming Annual General Meeting.
In the opinion of the Board, the Company has complied with the Best Practices Guide with
respect to audit committees issued by the SGX.
• Securities Transactions
The Group has issued a policy on securities dealings by officers of the Company and its subsidiaries
and adopted a Code of Best Practices on Securities Dealings (“the Code”) to govern and
regulate such transactions. The Code was based on the Best Practices Guide issued by the SGX
and has been circulated to all relevant parties.
• Employee Share Option Scheme (“ESOS”) Committee
The Group has established an ESOS which provides Executives, Directors and employees with
an opportunity to participate in the equity of the Company and to motivate them towards
better performance through increased dedication and loyalty. A committee comprising Mr
Yeh Chung Woo David, Dr Jennifer Lee Geok Choo and Mr Eu Yee Ming Richard has been set
up to administer the ESOS.
• Management Committee
The senior executives of the Group, including the Executive Directors and the Group General
Managers meet regularly to review the Group’s operational performance, brainstorm business
strategies, and analyse and evaluate new projects and growth opportunities.
• Group Procedures
The Group has adopted a code of conduct covering pertinent operational, financial and
administrative aspects of the Group’s business, including the setting of authority limits and
guidelines for all employees. At the date of this Annual Report, this code of conduct is being
drafted into a Group Procedures and Authorities (GPA) manual. The GPA will be reviewed and
updated from time to time by the Board to ensure that they meet the needs of the Group and
are in compliance with prevailing laws and regulations.
Corporate Governance
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Eu Yan Sang International Ltd and Subsidiary Companies
Notice of Annual General Meeting
NOTICE IS HEREBY GIVEN that the Annual General Meeting of the Company will be held at Wangz
Business Centre 7 Temasek Boulevard, The Penthouse #44-01 Suntec Tower One, Singapore 038987
on 16 November 2000 at 3 pm for the following purposes:
AS ORDINARY BUSINESS
1. To receive and adopt the Directors’ Report and the Audited Accounts of the Company for the
year ended 30 June 2000 together with the Auditors’ Report thereon. (Resolution 1)
2. To declare a first and final dividend of 10.50% (or 0.525 cents per share) less tax at 25.5% for the
year ended 30 June 2000. (Resolution 2)
3. To re-elect the following Directors retiring pursuant to Articles 92 and 109 of the Company’s
Articles of Association:
Mr Leung Alan Sze Yuan (Retiring under Article 92) (Resolution 3)
Dr Jennifer Lee Gek Choo
(independent member of the Audit Committee)
(Retiring under Article 92) (Resolution 4)
Mr Eu Yee Sang Robert James (Retiring under Article 109) (Resolution 5)
4. To consider and if thought fit, to pass the following resolutions:
(a) That pursuant to Section 153(6) of the Companies Act, Cap. 50, Mr Eu Joseph William Yee be
re-appointed a Director of the Company to hold office until the next Annual General Meeting.
[see Explanatory Note (i)] (Resolution 6)
(b) That pursuant to Section 153(6) of the Companies Act, Cap. 50, Mr Yeh Chung Woo David
(independent member of the Audit Committee) be re-appointed a Director of the Company
to hold office until the next Annual General Meeting. [see Explanatory Note (i)] (Resolution 7)
5. To re-appoint Messrs Ernst & Young as the Company’s Auditors and to authorise the Directors to
fix their remuneration. (Resolution 8)
6. To transact any other business that may be transacted at an Annual General Meeting.
AS SPECIAL BUSINESS
7. To consider and, if thought fit, to pass the following resolutions as Ordinary Resolutions, with or
without modifications:
(a) “That pursuant to Section 161 of the Companies Act, Chapter 50 and Clause 941(3)(b) of the
Listing Manual of the Singapore Exchange Limited, the Directors be empowered to allot and
issue new shares in the Company at any time and upon such terms and conditions and for
such purposes as the Directors may, in their absolute discretion, deem fit provided that the
aggregate number of shares to be allotted and issued pursuant to this Resolution shall not
exceed fifty per centum (50%) of the issued share capital of the Company for the time being,
of which the aggregate number of such shares to be allotted and issued other than on a prorata
basis to all share holders shall not exceed twenty per centum (20%) of the issued share
capital of the Company for the time being, and that unless revoked or varied by the Company
in general meeting, such authority shall continue in force until the conclusion of the Company’s
next Annual General Meeting.”
(Resolution 9)

Notice of Annual General Meeting
(b) “That the Directors of the Company be authorised to offer and grant options in accordance
with the provisions of the Eu Yan Sang Employee Share Option Scheme (“the Scheme”) and to
allot and issue from time to time such number of ordinary shares as may be required to be
issued pursuant to the exercise of options under the Scheme PROVIDED ALWAYS THAT the
aggregate number of additional ordinary shares to be allotted and issued pursuant to the
Scheme shall not exceed fifteen per centum (15%) of the total issued share capital of the
Company from time to time.”
[See Explanatory Note (ii)] (Resolution 10)
(c) “That the Directors of the Company be authorised to offer and grant to Mr Eu Yee Ming
Richard, an Executive Director and a Controlling Shareholder, options from time to time to
subscribe for shares not exceeding the limit of 4,285,097 shares in any one financial year
subject to the terms of the Scheme, and to allot and issue, contingent to the passing of the
preceding ordinary Resolution 10 above, shares to him under the Scheme.”
[See Explanatory Note (iii)] (Resolution 11)
(d) “That the Directors of the Company be authorised to offer and grant to Mr Eu Yee Fong
Clifford, an Executive Director and a Controlling Shareholder, options from time to time to
subscribe for shares not exceeding the limit of 4,285,097 shares in any one financial year
subject to the terms of the Scheme, and to allot and issue, contingent to the passing of the
preceding ordinary Resolution 10 above, shares to him under the Scheme.”
[See Explanatory Note (iii)] (Resolution 12)
By Order of the Board
Eu Yee Fong Clifford
Yvonne Choo
Company Secretaries
Singapore, 25 October 2000
Explanatory Notes:
(i) The effect of the Ordinary Resolutions proposed in item 4 above, if passed, is to re-appoint Mr Eu
Joseph William Yee and Mr Yeh Chung Woo David who are both over 70 years old. Section
153(6) of the Companies Act, Cap. 50 requires the Resolutions to be passed by a majority of not
less than three-fourths of shareholders present (in person or by proxy) and voting at the Annual
General Meeting of the Company.
Eu Yan Sang International Ltd and Subsidiary Companies
61
2
Annual Report

2
Annual Report
62
Eu Yan Sang International Ltd and Subsidiary Companies
Notice of Annual General Meeting
(ii) The Ordinary Resolution proposed in item 7(b) above, if passed, will authorise the Directors to
offer and grant options in accordance with the provisions of the Scheme which was approved
at an Extraordinary General Meeting of the Company on 3 July 2000 and, from the date of the
above Meeting until the next Annual General Meeting, to allot and issue shares in the Company
of up to a number not exceeding in total fifteen per centum (15%) of the total issued share
capital of the Company for the time being pursuant to the exercise of the options under the
Scheme.
(iii) Contingent to the passing of the Ordinary Resolution proposed in item 7(b) above, the Ordinary
Resolutions proposed in items 7(c) and 7(d) above, if passed, will empower the Directors of the
Company to grant options to and to issue, in the event of the exercise of the options to Mr Eu
Yee Ming, Richard and Mr Eu Yee Fong, Clifford, both Executive Directors and Controlling
Shareholders of the Company, up to 4,285,097 shares and 4,285,097 shares respectively.
Notes:
As at this date hereof, no option has been granted to or exercised by Mr Eu Yee Ming Richard
and Mr Eu Yee Fong Clifford. The number of options stated in the Ordinary Resolutions proposed
in items 7(c) and 7(d) above had been reviewed and determined by the Committee
administering the Scheme, and the terms of such options will be subject to the provisions of the
Scheme. The rationale for the participation of Mr Eu Yee Ming Richard and Mr Eu Yee Fong
Clifford in the Scheme is as set out on Pages 71 and 72 (inclusive) of the Company’s Prospectus
dated 14 July 2000.
“Controlling Shareholder” is defined under the Listing Manual of the Singapore Exchange
Limited as:
“A person or persons exercising control over a company. Unless rebutted, a person who controls
directly or indirectly a shareholding of 15% or more of a company’s issued share capital shall be
presumed a controlling shareholder of that company.”
1. A member entitled to attend and vote at the Annual General Meeting is entitled to appoint a proxy or proxies (not more
than two) to attend and vote on his/her behalf. A proxy need not be a member of the Company.
2. The instrument appointing a proxy or proxies must be under the hand of the appointor or of his/her attorney duly authorised
in writing. Where the instrument appointing a proxy or proxies is executed by a corporation, it must be executed either under
its Common Seal or by its attorney or by an officer duly authorised.
3. The instrument appointing a proxy or proxies must be deposited at the Company’s Registered Office at 269A South Bridge
Road, Singapore 058818 at least 48 hours before the time fixed for the Meeting.

Proxy Form
I/We
of
EU YAN SANG INTERNATIONAL LTD
(Incorporated in the Republic of Singapore)
being a member/members of Eu Yan Sang International Ltd, hereby appoint
or failing him/her of
of
or failing him/her, the Chairman of the meeting as my/our proxy to vote for me/us on my/our behalf at the Annual
General Meeting of the Company to be held on 16 November 2000 at 3 p.m. and at any adjournment thereof. The
proxy is to vote on the business before the meeting as indicated below. If no specific direction as to voting is given,
the proxy will vote or abstain from voting at his/her discretion, as he/she will on any other matter arising at the Meeting:
NO. RESOLUTIONS RELATING TO: FOR AGAINST
1 Directors’ Report, Auditors’ Report and Audited Accounts for the year ended 30 June 2000
2 Payment of a proposed first and final dividend
3 Re-election of Mr Leung Alan Sze Yuan as a Director
4 Re-election of Dr Jennifer Lee Geok Choo as a Director
5 Re-election of Mr Eu Yee Sang Robert James as a Director
6 Re-appointment of Mr Eu Joseph William Yee as a Director
7 Re-appointment of Mr Yeh Chung Woo David as a Director
8 Re-appointment of Messrs Ernst & Young as Auditors
9 Authority to allot and issue new shares
10 Authority to grant and issue shares under the Eu Yan Sang Employee Share
Option Scheme
11 Authority to grant options and issue shares to Mr Eu Yee Ming Richard
12 Authority to grant options and issue shares to Mr Eu Yee Fong Clifford
Please indicate with a cross [ X ] in the space provided whether you wish your vote to be cast for or against the
Resolutions as set out in the Notice of the Meeting
Dated this day of 2000

Proxy Form (cont’ d)
Total Number of Shares in: No. of Shares
(a) CDP Register
(b) Register of Members
Signature of Shareholder(s) or Common Seal
To be valid, this form must be lodged at the Company’s Registered Office at 269A South Bridge Road, Singapore 058818 not less than 48 hours before
the time appointed for the Annual General Meeting.
Notes:
1. Please insert the total number of Shares held by you. If you have Shares entered against your name in the
Depository Register (as defined in Section 130A of the Companies Act, Chapter 50 of Singapore), you should
insert that number of Shares. If you have Shares registered in your name in the Register of Members, you should
insert that number of Shares. If you have Shares entered against your name in the Depository Register and Shares
registered in your name in the Register of Members, you should insert the aggregate number of Shares entered
against your name in the Depository Register and registered in your name in the Register of Members. If no
number is inserted, the instrument appointing a proxy or proxies shall be deemed to relate to all the Shares held
by you.
2. A member of the Company entitled to attend and vote at a meeting of the Company is entitled to appoint a
proxy or proxies (not more than two) to attend and vote on his/her behalf. A proxy need not be a member of the
Company.
3. Where a member appoints two proxies, he/she shall specify the proportion of his/her shareholdings (expressed as
a percentage of the whole) to be represented by each proxy, failing which the first named proxy shall be
treated as representing 100 per cent of the shareholdings and the second named proxy shall be alternate to the
first named proxy.
4. The instrument appointing a proxy or proxies must be deposited at the Company’s Registered Office, 269A South
Bridge Road, Singapore 058818, not less than 48 hours before the time appointed for the Annual General Meeting.
5. The instrument appointing a proxy or proxies must be under the hand of the appointor or of his/her attorney duly
authorised in writing. Where the instrument appointing a proxy or proxies is executed by a corporation, it must be
executed either under its Common Seal or by its attorney or by an officer duly authorised.
6. A corporation which is a member may authorise by resolution of its directors or other governing body appoint
such person as it thinks fit to act as its representative at the Annual General Meeting, in accordance with Section
179 of the Companies Act, Chapter 50 of Singapore.
General:
The Company shall be entitled to reject the instrument appointing a proxy or proxies if it is incomplete, improperly completed or
illegible or where the true intentions of the appointor are not ascertainable from the instructions of the appointor specified in the
instrument appointing a proxy or proxies. In addition, in the case of Shares entered in the Depository Register, the Company may
reject any instrument appointing a proxy or proxies lodged if the member, being the appointor, is not shown to have Shares entered
against his/her name in the Depository Register as at 48 hours before the time appointed for holding the Annual General Meeting, as
certified by The Central Depository (Pte) Limited to the Company.

STATISTICS OF SHAREHOLDINGS
AS AT 2 OCTOBER 2000
Authorised share capital : $80,000,000
Issued and fully paid-up capital : $14,283,657.90
Class of shares : Ordinary share of $0.05 each
Voting rights : One vote for each share
SIZE OF SHAREHOLDINGS
Number of Shareholders % Number of Shares %
1 - 1,000 4,162 60.76 4,162,000 1.46
1,001 - 10,000 2,045 29.85 8,660,595 3.03
10,001 - 1,000,0000 621 9.07 53,100,943 18.59
1,000,001 and above 22 0.32 219,749,620 76.92
6,850 100.00 285,673,158 100.00
SUBSTANTIAL SHAREHOLDERS AS AT 2 OCTOBER 2000
(as recorded in the Register of Substantial Shareholders)
No. of shares of $0.05 Each Fully Paid
Direct % Deemed %
Interest Interest
Euco Investments Pte Ltd 56,286,814 19.70 7,980,000 2.79
Ridalege Investments Pte Ltd 43,816,366 15.34 - -
Bestand Development Corporation - - 21,970,828 7.69
Overseas Union Bank Nominees (Pte) Ltd 42,060,069 14.72 - -
Eu Yee Ming Richard - - 71,146,435 24.90
Eu Yee Fong Clifford 2,595 * 71,016,814 24.86
Laurence Yee Lye Eu - - 64,266,814 22.50
Dr Eu Yee Tat David - - 43,816,366 15.34
Eu Yee Kwong Geoffrey 2,285,574 0.80 43,816,366 15.34
Helena Eu
* Insignificant
- - 43,816,366 15.34
Notes:
(i) Euco Investment Pte Ltd (“Euco”), Eu Yee Ming Richard and Eu Yee Fong Clifford are the beneficial owners of the
shares held by Overseas Union Bank Nominees (Pte) Ltd.
(ii) Eu Yee Fong Clifford and Laurence Yee Lye Eu are deemed interested in all the shares held by Euco by virtue of
Section 7 of the Companies Act, Cap. 50.
(iii) Eu Yee Ming Richard, Geoffrey Eu, Dr David Eu and Helena Eu are deemed interested in the shares held by Ridalege
Investments Pte Ltd by virtue of Section 7 of the Companies Act, Cap. 50.
TWENTY LARGEST SHAREHOLDERS AS AT 2 OCTOBER 2000
NAME NO. OF SHARES %
1. Euco Investments Pte Ltd 56,286,814 19.70
2. Ridalege Investments Pte Ltd 43,816,366 15.34
3. Overseas Union Bank Nominees (Pte) Ltd 42,060,069 14.72
4. United Overseas Bank Nominees Pte Ltd 25,931,590 9.08
5. Eu Joseph William Yee 10,859,964 3.80
6. Universal International Investment Limited 5,665,526 1.98
7. HSBC (Singapore) Nominees Pte Ltd 5,433,612 1.90
8. Eu Yee Shun 4,479,928 1.57
9. G K Goh Stockbrockers Pte Ltd 4,246,000 1.49
10. Eu Keng Iu Roy and Eu Yan Wai Hing Virgina 2,471,434 0.87
11. Eu Yee Kwong Geoffrey 2,285,574 0.80
12. Lee Mui Gek Pauline 2,000,000 0.70
13. Great Expectations Investments Inc 1,873,848 0.66
14. Hambrecht 1980 Revocable Trust 1,873,848 0.66
15. Woldseth Corporation Inc 1,724,600 0.60
16. Lee Wee Kit 1,489,733 0.52
17. Lee Mon-Pi Mrs San Mun Onn @ Hedy Lee 1,416,382 0.50
18. Ng Tee Khiang 1,261,508 0.44
19. Ridalege Hong Kong Ltd 1,175,814 0.41
20. Lu Suk Ching @ Lu Moi Teh 1,150,000 0.40
217,502,610 76.14