Osim FR 050407.indd

Notes to the Financial Statements - 31 December 2006 (cont’d)11. Subsidiaries (cont’d)c) Acquisition of subsidiaries in financial year ended 31 December 2006 (cont’d)i) Effect of acquisition of interests in subsidiaries (cont’d)From the dates of acquisition, the acquired subsidiaries contributed net losses of $654,000 to the net profi t of theGroup. The management believes that the disclosure of the revenue and profi t of the Group had the combinationtaken place at the beginning of the year, would not provide meaningful information as these subsidiaries were lossmakingprior to their acquisitions.ii)Acquisition of additional interests in subsidiaries• OSIM (Taiwan) Co., LtdIn June 2006, the Company subscribed for additional issued and paid up capital in OSIM (Taiwan) Co., Ltdamounting to $4,931,000. This resulted in a deemed increase in equity interests of 2.5% and a decrease inpremium on purchase of minority interests’ shares of $50,000 2 . As at 31 December 2006, the total percentageof equity held in OSIM (Taiwan) Co., Ltd is 92.5%.• Global Active LimitedIn January 2006, the Company acquired additional shares of GAL totalling 14.07% from the minorityshareholders. The cash consideration for acquiring the additional interests was $7,762,000 and this resultedin an increase in premium on purchase of minority interests’ shares of $5,076,000 2 . As at 31 December2006, the total percentage of equity held in GAL is 81.24%.• OSIM (China) Co., LtdIn August 2006, the Company increased the paid-up capital of its wholly-owned subsidiary company, OSIM(China) Co., Ltd through a capital injection of $4,946,000 in cash.• Victoria House Sdn BhdSubsequent to April 2006, GAL acquired an additional 34% of the issued and paid up capital of VHSBfrom the minority shareholders. The purchase consideration was $2,057,000 and comprises a conversion ofamount receivable from the subsidiary of $1,708,000 and cash consideration of $349,000 1 . The acquisitionresulted in an increase in premium on purchase of minority interests’ shares of $1,037,000 2 for GAL and forthe Group. As at 31 December 2006, the total effective interests held in VHSB by GAL and the Group are 85%and 69.05% respectively.Notes to the Financial Statements 119Annual Report 2006