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Positioning to be the leading global brand


CONTENTS : Our Vision 2 • Financial Snapshot 5 • CEO’s Message 9 • Range of Products 13 • Our Business 15<br />

• Our Milestones 20 • Operations Review 21 • Board of Directors 23 • Our People 25<br />

• Corporate Structure 27 • Corporate Governance 29 • Corporate Information 32


OURVISION<br />

is to be the leading global brand in


home health care and healthy lifestyle products.<br />

3


4<br />

Annual Report 2000<br />

ASHARPER<br />

FOCUS<br />

We are introducing three new divisions of concept shops<br />

– Nutrition Focus, Hygiene Focus and Fitness Focus –<br />

in addition to our existing Health Focus concept shops.<br />

This will add depth and breadth to our product range,<br />

symbolising our holistic approach towards good health.


Revenue (S$Million)<br />

140<br />

120<br />

100<br />

80<br />

60<br />

40<br />

20<br />

0<br />

1996<br />

Profit Before Taxation (S$Million)<br />

14<br />

12<br />

10<br />

8<br />

6<br />

4<br />

2<br />

0<br />

Earnings Per Share (¢)<br />

4.5<br />

4.0<br />

3.5<br />

3.0<br />

2.5<br />

2.0<br />

1.5<br />

1.0<br />

0.5<br />

0<br />

31.432<br />

1995<br />

1.632<br />

1995<br />

0.6<br />

1995<br />

42.897<br />

3.668<br />

1996<br />

1.3<br />

1996<br />

60.837<br />

69.747<br />

1997 1998<br />

4.402<br />

3.199<br />

1997 1998<br />

1.8<br />

1.3<br />

1997 1998<br />

135.557<br />

1999 2000<br />

CAGR = 34%<br />

Annual Report 2000<br />

FINANCIALSNAPSHOT<br />

(PROFORMA FIGURES)<br />

103.138<br />

10.848<br />

13.765<br />

1999 2000<br />

4.1<br />

4.1*<br />

1999 2000<br />

CAGR = 54%<br />

* based on 230.5m (1995 to 1999:<br />

180.9m) issued shares<br />

5


6<br />

Annual Report 2000<br />

Total Assets (S$Million)<br />

100<br />

80<br />

60<br />

40<br />

20<br />

0<br />

Net Tangible Asset Per Share (¢)<br />

20<br />

18<br />

16<br />

14<br />

12<br />

10<br />

8<br />

6<br />

4<br />

2<br />

0<br />

70<br />

60<br />

50<br />

40<br />

30<br />

20<br />

10<br />

0<br />

24.491<br />

LEGEND:<br />

29.938<br />

33.775<br />

5.776<br />

8.513<br />

5.6<br />

1996<br />

Revenue By Geographical Segment<br />

(S$Million)<br />

28.173<br />

1995<br />

Shareholders Equity (S$Million)<br />

45<br />

40<br />

35<br />

30<br />

25<br />

20<br />

15<br />

10<br />

5<br />

0<br />

6.417<br />

1995<br />

3.6<br />

1995<br />

Singapore Malaysia China Hong Kong Taiwan<br />

1999 2000<br />

1996 1997 1998 1999 2000<br />

10.186<br />

1996<br />

5.113<br />

5.122<br />

47.912<br />

13.007<br />

7.2<br />

1997 1998<br />

49.762<br />

64.929<br />

42.201<br />

14.937<br />

1997 1998<br />

8.3<br />

17.996<br />

27.055<br />

55.951<br />

10.269<br />

5.7<br />

93.471<br />

18.5<br />

1999 2000<br />

(%)<br />

50<br />

45<br />

40<br />

35<br />

30<br />

25<br />

20<br />

15<br />

10<br />

5<br />

0<br />

42.548<br />

1999 2000<br />

24<br />

22<br />

6<br />

6<br />

5<br />

4<br />

FINANCIALSNAPSHOT<br />

(PROFORMA FIGURES)<br />

48<br />

48<br />

17<br />

20<br />

Singapore Malaysia China Hong Kong Taiwan


ON<br />

EXPANSION<br />

TREK<br />

Annual Report 2000<br />

Through strategic acquisitions and alliances<br />

in the region and beyond, we plan to extend<br />

our reach to every country, establishing a<br />

strong presence globally as a leading brand<br />

that is recognised around the world. We<br />

aim to be a $1b company by 2008.<br />

7


“Health care and healthy lifestyle products<br />

are no longer seen as luxury goods but rather,<br />

a necessity as the society trends towards a<br />

more sophisticated and health conscious<br />

lifestyle. We are a local homegrown company<br />

with regional presence throughout Asia and<br />

a global potential.”


Annual Report 2000<br />

CEO’SMESSAGE<br />

On behalf of the Board of Directors, I am pleased to<br />

present to you OSIM International Ltd’s maiden annual<br />

report for the financial year ended December 31,<br />

2000.<br />

Year 2000 has been a very significant year for us. The<br />

launch of our initial public offer on July 19, 2000,<br />

marked an important turning point in our vision towards<br />

becoming the leading global brand in the home health<br />

care and healthy lifestyle industry.<br />

Since starting out in 1980 under the sole proprietorship,<br />

R. Sim & Trading Co Pte Ltd, we have grown<br />

tremendously to become the most recognisable brand<br />

for home health care and healthy lifestyle products in<br />

our primary markets of Hong Kong, Taiwan, Singapore,<br />

Malaysia and China.<br />

From the beginning, strategic marketing and strong<br />

brand management have been critical success factors<br />

in securing our foothold in the industry. Synonymous<br />

with the OSIM brand are high quality and excellent<br />

customer service, core values that have driven the<br />

Group’s profits since its inception and differentiated<br />

us significantly from our competitors.<br />

I am proud to report a 31% increase in the Group’s<br />

turnover from S$103.1 million in 1999 to S$135.6<br />

million for the financial year ended December 31,<br />

2000. In addition, profit before tax has also been<br />

elevated by 27% to S$13.8 million, when compared<br />

with that in 1999.<br />

9


10<br />

Annual Report 2000<br />

This new millennium has been a fantastic year for the Group. We saw a huge surge in operations in all<br />

our markets and believe that the strong growth in demand for health care products will continue. Health<br />

care products are no longer deemed as luxury goods but a necessity, as society trends towards a more<br />

sophisticated and health conscious lifestyle.<br />

We have a first mover advantage and are already the established leader in this industry. Even so, we have<br />

only touched the rim of the health care business. Taking just Asia as an example: while there are more<br />

than 3 billion people and over 500 million households, we are selling only less than 30,000 chairs a year.<br />

Hence we believe there is huge potential growth for our business.<br />

CEO’SMESSAGE<br />

Our outlook for 2001 is therefore positive. With the expansion of the Group’s global network by 32 point-<br />

of-sale outlets to 241 over the last year, we are confident of further growth through franchising, acquisitions,<br />

and synergistic tie-ups. Currently, negotiations are underway to appoint franchisees in the Philippines,<br />

Australia, and United Kingdom. The Group will also be implementing a new Enterprise Resource Planning<br />

and Customer Relationship Management system that will lay the foundation for our eOSIM online business.


CEO’SMESSAGE<br />

Annual Report 2000<br />

Besides growing its point-of-sale outlets, the Group is also introducing three new concept divisions to the<br />

existing Health Focus concept this year. These are Nutrition Focus, Hygiene Focus, and Fitness Focus.<br />

To be launched first in Singapore and Hong Kong, these new divisions will add breadth to the Group’s<br />

extensive product range and establish new revenue streams.<br />

The Board of Directors and I sincerely appreciate the support of our customers, business associates and<br />

shareholders, which has brought us to where we are today. We will be proposing a dividend of 0.6 cents<br />

per share representing 12%, less tax at 24.5 %, in respect of the financial year ended December 31, 2000.<br />

To our staff, we salute your dedication and hard work in building up a strong foundation from which OSIM<br />

International Ltd will continue to grow profitably. Thanks to you, I look forward to the new millennium with<br />

confidence as we embark on our next phase of growth.<br />

Dr Ron Sim Chye Hock<br />

Ph.D.(B.A.)<br />

Chairman & CEO<br />

OSIM International Ltd<br />

57 Genting Lane Osim Building Singapore 349564<br />

Tel: (65) 747 6866 Fax: (65) 748 9192 DID: (65) 845 9887/8<br />

http://www.<strong>osim</strong>.com.sg Email: ron@<strong>osim</strong>.com.sg<br />

11


With a healthy body,<br />

mind, and spirit,<br />

you can triumph over<br />

any situation.<br />

Health is an attitude to life


RANGEOFPRODUCTS<br />

Blood Pressure<br />

Monitor<br />

( Cuff, Wrist, Finger )<br />

Digital Thermometer /<br />

Ear Scan<br />

Air Cleaner<br />

Computerised<br />

Glucometer<br />

Pedometer /<br />

Calories Meter<br />

Weight & Height Bridge<br />

Hearing Aid<br />

Rotary Toothbrush<br />

Hot & Cold Gel Pack<br />

Nerve Stimulator<br />

Water Purifier<br />

Nebuliser<br />

Healthy<br />

Living<br />

facing page: Ms. Linda Wang (Best Producer)<br />

Spirit<br />

Massage Couch<br />

Foot Reflexologist<br />

Hand-held Tapper /<br />

Vibrator<br />

Eye Massager<br />

Massage Mattress<br />

Kneading Massager<br />

Air Mattress<br />

Air Cushion<br />

Relaxation Music<br />

CDs<br />

Poster<br />

Relaxation<br />

Health-related<br />

Books<br />

Health Accessories<br />

Annual Report 2000<br />

Beauty<br />

Massaging<br />

Hairbrush<br />

Magnetic /<br />

Electronic Slim<br />

Belt<br />

TENS Machine<br />

13


14<br />

Annual Report 2000<br />

THE<br />

CONSUMER’S<br />

CHOICE<br />

Ranked as the No. 1 brand for home<br />

health care products in Singapore and<br />

Hong Kong by market research firms,<br />

The Gallup Organisation and AC Nielsen,<br />

OSIM is the customer’s preferred brand.


USA: 11<br />

Total Number of Outlets: 241<br />

We are in the business of home health care and healthy lifestyle products.<br />

As the No.1 brand and most influential trendsetter in Singapore and<br />

Hong Kong, we count an extensive distribution network as a main<br />

competitive advantage in capturing the majority market share of our<br />

niche and highly-specialised business.<br />

With a rapidly expanding point-of-sale network in our primary markets<br />

of Hong Kong, Taiwan, Singapore, Malaysia and China, a bourgeoning<br />

franchisee network in our new geographical markets of Thailand,<br />

Indonesia, the United Arab Emirates and the United States of America,<br />

OSIM International Ltd is fast becoming a world-renowned brand.<br />

The OSIM Brand<br />

The unveiling of our new and enhanced corporate logo in April 2000<br />

marked a turning point in our brand management strategy. A bold step<br />

forward in the new millennium, the new logo features the tricolours of<br />

blue for the sky, green for the land, and orange for light and spirit.<br />

Together, they symbolise our aspiration to become a leading<br />

global brand.<br />

The OSIM brand holds an intangible value that has been cultivated<br />

through trust built up painstakingly over the years, based on the quality<br />

promise that is associated with our products and services. This value<br />

boosts the price premium and unit volume of our business, thereby<br />

enhancing our profitability.<br />

UAE: 1<br />

China: 55<br />

Taiwan: 32<br />

Hong Kong: 46<br />

Thailand: 5<br />

Malaysia: 30<br />

Singapore: 46<br />

Indonesia: 15<br />

OURBUSINESS<br />

Annual Report 2000<br />

OURBUSINESS<br />

15


16<br />

Annual Report 2000<br />

Our Concept Shops<br />

We have a unique concept shop layout to leverage on our brand value. Our product<br />

lines are categorised under four complementary concepts- Health Focus, Nutrition<br />

Focus, Hygiene Focus, and Fitness Focus, all carrying the fundamental theme of<br />

health and well-being in the home.<br />

Our Health Focus concept shops carry the existing range of home health care and<br />

healthy lifestyle products. To be opened soon, our planned Nutrition Focus concept<br />

shops will sell a comprehensive range of health food supplements, while our Hygiene<br />

Focus shops will specialise in filtration and home cleaning systems. The Fitness<br />

Focus Concept shops, will market home gym equipment.<br />

Each with its own unique character, decor and style, our four concept shops symbolise<br />

OSIM’s holistic and integrated approach to home health care.<br />

The OSIM Customer Experience<br />

This is characterised by heartfelt warmth, in-depth product knowledge and well<br />

informed advice. Our service staff always strive to provide customers with an<br />

informative and satisfying purchasing experience, from product trial to after-sales<br />

service and maintenance.<br />

The Quality Promise<br />

Quality is our value proposition to our customers. Our brand and corporate reputation<br />

depend on the consistent delivery of high quality products and services that exceed<br />

our customers’ expectations. In place is a dynamic process for continuous<br />

improvement and innovation in our product development. This is based on active<br />

two-way feedback between service staff and customers and close consultation with<br />

our suppliers and contract manufacturers.<br />

OURBUSINESS


Strategic Marketing and Community Development<br />

Marketing with a well thought-out strategy is crucial to enhancing our market<br />

share. Communicating with one voice, one vision is essential as we embark on<br />

a rapid expansion phase in new geographical market.<br />

Central to our broad business goals and overall organisational<br />

vision is a community call for the public to cultivate a positive<br />

mindset towards healthy living. To reinforce our brand in the<br />

public eye, we have been engaging popular celebrities with a<br />

large following in Singapore and Hong Kong to endorse our<br />

products and the concept of healthy living. We also encourage<br />

the spirit of community responsibility through corporate<br />

sponsorship of charity events, such as The President’s Star<br />

Charity and the National Kidney Foundation Charity Show, in Singapore.<br />

In line with our belief that we are in a business that gives back to the community,<br />

we have been actively supporting the Singapore government’s National Healthy<br />

Lifestyle Campaign every year.<br />

To expand our coverage of different customer segments, we have developed our<br />

secondary brand, NORO, carrying massage chairs and kneading massagers with<br />

more simplified designs and features, but nevertheless maintaining the same high<br />

quality standards as the main OSIM products.<br />

Research and Development<br />

In a move to strengthen our control over the source and quality of our products,<br />

we have engaged in a joint venture with Daito Electric Machine Industry Company<br />

in China for the manufacturing and R&D of health care components. Complementing<br />

this venture, OSIM is finalising details to set up its own R&D divisions to focus on<br />

new product development. This move will enable the Group to enhance its R&D<br />

competencies to provide greater value-add to its business and greater input to<br />

the design of its products.<br />

Annual Report 2000<br />

OURBUSINESS<br />

17


18<br />

Annual Report 2000<br />

Plugging into Information Technology<br />

The Internet is a global system. Consequently, e-commerce will<br />

be an important extension of our global thrust. Implementation<br />

of a definitive e-commerce strategy is now in full swing with the<br />

impending set up of our B2C and B2B e-commerce transaction<br />

abilities and a health information portal.<br />

Up to S$1.5 million has been expended on a Group-wide<br />

information technology system. With this state-of-the-art<br />

infrastructure, our business processes will be rationalised with<br />

a web-based Enterprise Resource Planning software. An<br />

automated warehouse and inventory management system will<br />

steer our supply-side operations from a stock-driven process to<br />

a more productive and cost-effective demand-driven one.<br />

Logistics processes will be optimised with computerised<br />

forecasting and planning tools. Geographically dispersed<br />

franchisees will be provided with a common financial reporting<br />

platform, thereby strengthening our internal controls.<br />

Our Customer Relationship Management technology will add<br />

further value to OSIM’s “one-stop shop” service from the initial<br />

product advisory to after-sales and maintenance. Shortened<br />

service lead time, more effective cross-selling, and greater<br />

convenience are expected resultants of this landmark initiative.<br />

OURBUSINESS<br />

facing page: Ms Lee Bee Ling (Best Staff)


With a healthy body, mind, and spirit,<br />

you can triumph over any situation.<br />

Health is an attitude to life


Dec 2000 OSIM global distribution network expands to 241<br />

Sept 2000 Formation of joint venture company, Daito-OSIM<br />

Healthcare Appliances (Shanghai) Co<br />

Ltd, with Daito Electric Machine Industry<br />

Company Limited<br />

May 2000 Registration of “OSIM” as a trademark in 26 countries<br />

spanning Asia (including Australia), Europe, North<br />

and South America, South Africa and Israel<br />

1999 Adoption of franchise business model to concentrate<br />

on core competencies in strategic marketing and<br />

brand enhancement<br />

Opening of first concept shop in Dubai<br />

1995 Joint venture with Daito Electric Machine Industry<br />

Company Limited, a Japanese supplier to the Group,<br />

to take up a 30% interest in Daito-OSIM (Suzhou)<br />

1993 Opening of concept shops in Indonesia and Beijing,<br />

the People’s Republic of China<br />

1992 Opening of first concept shop in Malaysia<br />

1989 Creation of “Health Check & Care” brand to market<br />

home health care products<br />

1983 Incorporation of R. Sim Trading Co Pte Ltd and<br />

opening of first outlet at Peoples’ Park, retailing two<br />

health care related products, hand-held massagers<br />

and foot reflexology rollers<br />

OSIM INTERNATIONAL LTD<br />

OURMILESTONES<br />

Nov 2000 Group-wide implementation of ERP and CRM<br />

infrastructure<br />

Jul 2000 Launch of initial public offer<br />

Century Private Equity Holdings, a wholly-owned<br />

subsidiary of Temasek Holdings (Pte) Ltd, takes a<br />

5% stake in the Group<br />

Apr 2000 Launch of new and enhanced “OSIM” corporate<br />

logo and identity<br />

1998 Commencement of wholesale distribution business<br />

in Singapore to hospitals, pharmacies and Chinese<br />

medical halls<br />

1994 Opening of first concept shop in Shanghai, the<br />

People’s Republic of China<br />

Distribution network expands to 60 point-of-sale<br />

outlets in Asia<br />

Official launch of “OSIM” brand name<br />

1990 Opening of first concept shop in Thailand<br />

1987 Opening of first concept shop in Taiwan<br />

Distribution network for household goods and<br />

health care related products expands to 10 concept<br />

shops in Singapore, Hong Kong and Taiwan.<br />

1986 Opening of first overseas concept shop in Hong Kong<br />

1980 Commencement of sole proprietorship, R. Sim<br />

Trading Co., by Dr Ron Sim Chye Hock, retailing<br />

an array of household goods, such as knives, knife<br />

sharpeners and mobile drying rods


OPERATIONSREVIEW<br />

The Group's turnover increased by 31% in FY2000 to<br />

S$135.6 million from S$103.1 million in the previous year.<br />

The increase in turnover was mainly due to the introduction<br />

of new products and higher contribution from the<br />

subsidiaries, particularly in Taiwan, Hong Kong and Malaysia.<br />

Profit before taxation rose by 27% from S$10.8 million in<br />

FY1999 to S$13.8 million in FY2000 while profit after taxation<br />

and minority interests increased by 27% from S$7.4 million<br />

to S$9.4 million. The percentage increase in profit was lower<br />

than that of turnover due to higher expenses incurred during<br />

the year to launch and enhance the Group's brand<br />

architecture platform. This relates to the design and launch<br />

of our new corporate logo and identity. Expenses were<br />

incurred to commission a global brand consultant and to<br />

execute the accompanying advertising campaign.<br />

Factors which contributed to the improvement in the Group's<br />

performance include:<br />

(a) new and enhanced products,<br />

(b) lower cost of goods due to favourable exchange rates<br />

arising from a weaker Yen as we made a portion of<br />

purchases from Japan, and<br />

(c) higher income from our associated companies due to<br />

an increase in exports to a major distributor in US.<br />

This healthy turnover and profit comes in the wake of the<br />

society's trend towards a more sophisticated and healthy<br />

lifestyle, and is an indication of OSIM's future success in<br />

attaining the status of a leading global brand.<br />

Annual Report 2000<br />

21


22<br />

Annual Report 2000<br />

APEOPLE<br />

BUSINESS<br />

People are our main asset at OSIM. Therefore,<br />

we embrace continous improvements and<br />

life-long learning to keep the skills of our staff<br />

relevant always.


(from left)<br />

BOARDOFDIRECTORS<br />

Mr Charlie Teo Chay Lee, Mr Khor Peng Soon, Ms Teo Sway Heong,<br />

Dr Ron Sim Chye Hock, Mr Michael Kan Yuet Yun, Mr Ong Kian Min<br />

and Mr Richard Leow Lian Soon


With a healthy body, mind, and spirit, you can triumph over any situation.<br />

Health is an attitude to life


facing page: Mr Vincent Heah (Sales Supervisor)<br />

Dr Ron Sim Chye Hock (Chairman & Chief Executive Officer)<br />

Mr Charlie Teo Chay Lee (Chief Operating Officer)<br />

Mr Richard Leow Lian Soon (Regional General Mgr)<br />

Mr Peter Lee Hwai Kiat (Chief Financial Officer)<br />

Mr Lester Soh (Regional Finance Mgr) (standing)<br />

Ms Celine Cha (Senior Product Development Mgr)<br />

Mr Teo Yeong Ann (Corporate Planning Mgr)<br />

Ms Josephine Cheng (HR & Admin. Mgr)<br />

Mr Desmond Yak (Asst. Operations Mgr) (left)<br />

Ms Stella Lim (Service Quality Mgr)<br />

Mr Francis Leow Lian Teck (Franchise Mgr)<br />

Mr Eric Kuan (Franchise Mgr) (right)<br />

(right)<br />

(sitting)<br />

(standing)<br />

(left)<br />

Annual Report 2000<br />

OURPEOPLE<br />

25


26<br />

Annual Report 2000<br />

OURPEOPLE<br />

Mr Nasser Nafarzadeh (General Mgr, Hygiene Focus)<br />

(standing)<br />

Mr See Toh Chee Wai (MIS Mgr)<br />

Mr Bernard Tang (Project Mgr)<br />

Ms Sandra Gan (Marketing Mgr)<br />

Mr Ian Ang (e-Business Mgr)<br />

Mr Bruce Cha (Country Sales Mgr)<br />

Mr Sam Ng (Area Sales Mgr)<br />

(sitting)<br />

Ms Iris Leong (Asst. Wholesale Mgr)


CORPORATESTRUCTURE<br />

OSIM INTERNATIONAL LTD<br />

100%<br />

70%<br />

60%<br />

100%<br />

30%<br />

30%<br />

OSIM<br />

(HK)<br />

OSIM<br />

(TAIWAN)<br />

OSIM<br />

(M’SIA)<br />

OSIM<br />

(SHANGHAI)<br />

DAITO-OSIM<br />

(SUZHOU)<br />

DAITO-OSIM<br />

(SHANGHAI)<br />

Annual Report 2000<br />

27


28<br />

Annual Report 2000<br />

OPEN<br />

CHANNELS<br />

Transparency in our communication with<br />

our investors is a top priority. In the<br />

Corporate Transparency Index ranking<br />

published in the Business Times on<br />

March 5, 2001, OSIM with 74 points,<br />

outscored banking and industrial giants.


CORPORATEGOVERNANCE<br />

Our Directors and management are committed to high standards of corporate governance in order to<br />

protect the interests of our employees, customers and Shareholders, and follow closely the best practices<br />

outlined in the Best Practices Guide issued by the Singapore Exchange Securities Trading Limited (SGX-ST):<br />

Board of Directors<br />

Our Board of Directors, comprising seven members, is made up of 3 executive Directors and 4 non-<br />

executive Directors. The Chairman / Chief Executive Officer Dr Ron Sim Chye Hock, the Chief Operating<br />

Officer Mr Teo Chay Lee and the Regional General Manager Mr Leow Lian Soon are the executive directors.<br />

The non-executive directors are Ms Teo Sway Heong, Mr Khor Peng Soon, Mr Michael Kan Yuet Yun and<br />

Mr Ong Kian Min.<br />

The Board will meet periodically throughout the year. To assist the Board of Directors in discharging its<br />

responsibilities, we have the following Committees:-<br />

The Executive Committee<br />

The Executive Committee comprises the 3 executive Directors, Dr Ron Sim Chye Hock, Mr Teo Chay Lee,<br />

Mr Leow Lian Soon and the Chief Financial Officer Mr Lee Hwai Kiat. The Committee will assist the Board<br />

to strengthen our management culture and direct the Group towards fulfilling our vision of being a global<br />

brand name in home health care products. The Committee will also assist the Board to allocate resources<br />

of the Group after considering the risks and returns associated with our operations, including business and<br />

financial risks;<br />

Audit Committee<br />

The Audit Committee comprises 2 independent Directors, Mr Michael Kan Yuet Yun, Mr Ong Kian Min and<br />

1 executive Director, Mr Teo Chay Lee. Mr Michael Kan Yuet Yun is the Chairman of the Audit Committee.<br />

The main objective of the Committee is to assist the Board of Directors in fulfilling the fiduciary responsibilities<br />

of the Company and each of its subsidiaries. The Committee will:<br />

(i) oversee and appraise the quality of the audit of the Company's internal audit function and of its external<br />

auditors;<br />

(ii) serve as an independent and objective party to review the financial information presented by the<br />

Management to Shareholders, regulators and general public; and<br />

(iii) examine the adequacy of the Company's administrative and operating controls as well as internal<br />

accounting controls and evaluate adherence.<br />

Annual Report 2000<br />

29


30<br />

Annual Report 2000<br />

The Audit Committee meets periodically to review:<br />

(i) with the assistance of the external auditors, the audit plan, their evaluation of our internal accounting controls and<br />

audit report;<br />

(ii) the assistance given by our officers to the internal and external auditors;<br />

(iii) the scope and results of the internal audit procedures;<br />

(iv) the financial statements of the Group, including the half year and full year results;<br />

(v) our compliance with such functions and duties as may be required under the relevant laws or the Listing Manual; and<br />

(vi) all interested person transactions to ensure that they are carried out on normal commercial terms and are not prejudicial<br />

to the interest of our Shareholders;<br />

Interested person transactions carried out during the financial year pursuant to the Shareholders’ mandate obtained in<br />

accordance with Chapter 9A of the SGX-ST Listing Manual are as follows:<br />

The Audit Committee had recommended to the Board of Directors the nomination of Arthur Andersen for re-appointment<br />

as external auditors of the Company at the forthcoming Annual General Meeting.<br />

Compensation Committee<br />

The Compensation Committee, comprises 2 independent Directors, Mr Ong Kian Min and Mr Michael Kan Yuet Yun and<br />

3 executive Directors, Dr Ron Sim Chye Hock, Mr Teo Chay Lee and Mr Leow Lian Soon. The Chairman of the Committee<br />

is Mr Ong Kian Min.<br />

The Committee will annually review and the independent Directors shall approve the remuneration packages and terms<br />

of employment of each executive Director and each employee who is related to the executive Directors, substantial<br />

Shareholders or Executive Officers to ensure that their remuneration packages are in line with the prevailing remuneration<br />

levels and commensurate with their respective job scope and level of responsibility.<br />

OSIM Share Option Scheme Committee<br />

The OSIM Share Option Scheme Committee comprises 2 independent Directors, Mr Ong Kian Min, Mr Michael Kan Yuet<br />

Yun and 2 executive Directors, Dr Ron Sim Chye Hock and Mr Teo Chay Lee. The Chairman of the Committee is<br />

Mr Ong Kian Min.<br />

CORPORATEGOVERNANCE<br />

GROUP<br />

2000 (S$’000) 1999 (S$’000)<br />

Income<br />

Sales 10, 744 8, 828<br />

Service Fees - 22<br />

Royalty Income<br />

Expenses<br />

188 -<br />

Rental Expense and Service Fees 388 272<br />

The main objective of the Committee is to assist the Board of Directors to implement and administer a share scheme to<br />

enable the Company to give recognition to the contributions made by the employees and non-executive Directors.


Our service is delivered with a warmth that lights up<br />

the customer's face. From product trial to after sales<br />

and maintenance, customers are provided with in-<br />

depth product information and sincere advice to assist<br />

them in decision-making.<br />

Annual Report 2000<br />

THE<br />

CUSTOMER’S<br />

SMILE<br />

31


32<br />

Annual Report 2000<br />

Board of Directors: Dr Ron Sim Chye Hock<br />

(Chairman & Chief Executive Officer)<br />

Teo Chay Lee (Chief Operating Officer)<br />

Leow Lian Soon (Regional General Manager)<br />

Teo Sway Heong (Non-executive Director)<br />

Khor Peng Soon (Non-executive Director)<br />

Michael Kan Yuet Yun, PBM (Independent Director)<br />

Ong Kian Min (Independent Director)<br />

Company Secretary: Juliet Ang, LLB (Hons.)<br />

Registered Office and Principal Office: 57 Genting Lane<br />

Osim Industrial Building<br />

Singapore 349564<br />

Registered and Share Transfer Office: B.A.C.S. Private Limited<br />

63 Cantonment Road<br />

Singapore 089758<br />

Auditors: Arthur Andersen<br />

Certified Public Accountants<br />

10 Hoe Chiang Road<br />

#18-00 Keppel Towers<br />

Singapore 089315<br />

Partner-in-charge: Mr Max Loh Khum Whai<br />

Principal Bankers: Oversea-Chinese Banking Corporation Limited<br />

65 Chulia Street #29-02/04 OCBC Centre<br />

Singapore 04951<br />

The Development Bank of Singapore Ltd<br />

6 Shenton Way DBS Building Tower One<br />

Singapore 068809<br />

Standard Chartered Bank<br />

6 Battery Road #07-00 Singapore 049909<br />

RHB Bank Berhad<br />

90 Cecil Street #03-00 Singapore 069531<br />

CORPORATEINFORMATION


Singapore<br />

OSIM International Ltd<br />

57 Genting Lane<br />

OSIM Industrial Building<br />

Singapore 349564<br />

Tel: (65) 747 6866<br />

Fax: (65) 846 4918<br />

Email: IR@<strong>osim</strong>.com.sg<br />

Hong Kong<br />

OSIM (HK) Co. Ltd<br />

Room 1212-22, 12/FL<br />

No 1 Hung To Road<br />

Kwun Tong, Kowloon<br />

Hong Kong<br />

Tel: (852) 2790 2300<br />

Fax: (852) 2342 8510<br />

Taiwan<br />

OSIM GHC (Taiwan) Co. Ltd<br />

1F No 99-20 Nankang Road<br />

Sec.2 Taipei 115<br />

Taiwan R.O.C.<br />

Tel: (8862) 2726 3131<br />

Fax: (8862) 2782 4066<br />

Malaysia<br />

OSIM (M) Sdn Bhd<br />

No 10 Jalan 4/91A<br />

Taman Shamelin Perkasa<br />

Cheras 56100 Kuala Lumpur<br />

Malaysia<br />

Tel: (603) 981 1218<br />

Fax: (603) 985 8318<br />

Indonesia<br />

PT Sharon Samaru (Indonesia)<br />

Jembatan III, No 36<br />

36 FR Jakarta 14450<br />

Indonesia<br />

Tel: (6221) 661 1164<br />

Fax: (6221) 661 8943<br />

OSIMGLOBALNETWORK<br />

China<br />

OSIM International Trading (Shanghai) Co Ltd<br />

2F Huntson Building<br />

98E Shan Road<br />

Pudong New Area<br />

Shanghai 200127<br />

China<br />

Tel: (8621) 5873 3138/9<br />

Fax (8621) 5873 3140<br />

OSIM GHC (China) Co. Ltd<br />

Suite 1527 Junefield Plaza<br />

No 6 Xuanwumenwai Street<br />

Xuanwu District Beijing 100052<br />

China<br />

Tel: (8610) 6310 1383<br />

Fax: (8610) 6310 1391<br />

Daito-OSIM Healthcare Appliances (Suzhou) Co. Ltd<br />

China-Singapore Suzhou Industrial Park<br />

No 45 Baiyu Road<br />

Suzhou 215021<br />

China<br />

Tel: (0512) 761 1238<br />

Fax: (0512) 761 5068<br />

Daito-OSIM Healthcare Appliances (Shanghai) Co. Ltd<br />

1F No 213 Tai Gu Road<br />

Wai Gao Qiao Free Trade Zone<br />

Pudong Shanghai<br />

China<br />

Tel: (8621) 5866 5151<br />

Fax: (8621) 5866 0090<br />

USA<br />

OSIM (USA) Inc<br />

2940E La Palma<br />

Suite C, Anaheim CA 92806<br />

USA<br />

Tel: (1714) 630 1600<br />

Fax: (1714) 630 4009<br />

Designed and produced by Voice Add Pte Ltd Tel: 8444222


OSIM International Ltd<br />

57 Genting Lane<br />

Osim Industrial Building<br />

Singapore 349564<br />

Tel: (65) 747 6866 Fax: (65) 846 4919<br />

Email: IR@<strong>osim</strong>.com.sg<br />

For more information on OSIM International, visit our website at http://www.<strong>osim</strong>.com.sg

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