Osim FR 050407.indd

Notes to the Financial Statements - 31 December 2006 (cont’d)12. Associated companies and a joint venture (cont’d)d) Details of joint venture are as follows:Name of companyPrincipal activitiesCountry ofincorporationPercentage ofequity held Cost of investment2006 2005 2006 2005% % $’000 $’000Held by the CompanyOSIM-BrookstoneHoldings, LP (“OBH”) #Innovative productdevelopment and sale ofspecialty lifestyle productsUnited States ofAmerica55.5 54.2 145,298 145,298#Audited by member fi rm of Ernst & Young Global.By virtue of a partnership agreement, the Company only has joint control, together with the rest of the joint-venture partners,over the fi nancial and operating policies of OBH.Upon the occurrence of certain events as stipulated in the partnership agreement, the management of OBH will be entitledto receive common shares of OBH. If such an event was to occur, this would have the effect of diluting the Group’s interestin the joint venture.At the end of the fi nancial year, the Group’s percentage of equity held in OBH was 55.5%. The change in shareholdingis due to repurchase of shares from certain shareholders. This resulted in losses on deemed changes in shareholding of$1,135,000.e) The aggregate amounts of each of the current assets, non-current assets, current liabilities, non-current liabilities, incomeand expenses related to the Group’s interests in the jointly-controlled entity are as follows:Joint venture 2006 2005$’000 $’000Assets and liabilities:Current assets 156,645 159,549Non-current assets 348,825 377,110Total assets 505,470 536,659Current liabilities (67,949) (69,576)Non-current liabilities (338,130) (344,658)Total liabilities (406,079) (414,234)Results:Revenue 445,846 202,882Expenses (128,615) (47,301)(Loss)/profi t for the year (13,397) 10,412Notes to the Financial Statements 127Annual Report 2006