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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