Osim FR 050407.indd

Notes to the Financial Statements - 31 December 2006 (cont’d)11. Subsidiaries (cont’d)d) Acquisition of subsidiaries in financial year ended 31 December 2005 (cont’d)ii)Acquisition of additional interests in subsidiaries (cont’d)• OSIM (Taiwan) Co., LtdIn August 2005, the Company acquired an additional 5% of the issued and paid up capital of OSIM (Taiwan)Co., Ltd from the minority shareholders. The cash consideration for the acquisition was $485,000 1 and thisresulted in a decrease in premium on purchase of minority interests’ shares of $111,000 (Note 8). As at 31December 2005, the total percentage of equity held in OSIM (Taiwan) Co., Ltd is 90%.1Total purchase consideration for the above acquisitions amounted to $1,325,000 which was fully settled incash.• OSIM (China) Co., LtdOn 27 December 2005, the Company increased the paid-up capital of its wholly-owned subsidiary company,OSIM (China) Co., Ltd through a capital injection of $5,017,000 in cash.e) Incorporation of new subsidiary• OSIM International (Australia) Pty LtdIn June 2006, the Company set up a new subsidiary, OSIM International (Australia) Pty Ltd, in Australia. The costof investment was $716,000. The principle activities of the subsidiary are the sale and marketing of healthy lifestyleproducts. In July 2006, OSIM International (Australia) Pty Ltd issued additional shares to a minority interest at$484,000. This resulted in a gain in deemed changes in shareholdings of $68,000 (Note 32). As at 31 December2006, the total percentage of equity held in OSIM International (Australia) Pty Ltd is 60%.Notes to the Financial Statements 123Annual Report 2006