Actress Gong Li gives the thumbs up to a massage chair designed by OSIM, watched by company chairman Dr Ron Sim

Chairman and chief executive Dr Ron Sim said the company plans to list on the Hong Kong stock exchange, leveraging the SAR's proximity to the Chinese mainland to capture added market share in the mainland.

He said that a listing in Hong Kong, one of the company's key markets and its biggest in terms of turnover, was "a natural progression for OSIM".

"Although our origin is in Singapore, we are now an international company with operations in 18 countries - Asia, the Middle East, US and Europe." Turnover from overseas operations constitutes the bulk of group turnover in fiscal year 2001, Dr Sim added.

"North Asia is an important region for the OSIM Group, with Hong Kong, Taiwan and China being some of our key markets. With a secondary listing in Hong Kong, we will be able to broaden our appeal to a larger group of investors, especially those in Hong Kong and southern China. This will result in a wider base and a more even distribution of shareholders among our key markets."

Headquartered in Singapore, the company has more than 388 outlets throughout the Asia-Pacific region, the UK, US, Australia and Canada. The Asian markets of Hong Kong, China, Singapore, Taiwan and Malaysia remain its major profit contributors. 

OSIM has had an office in Hong Kong since 1986. It entered the mainland in 1993 when the first OSIM outlet opened in Beijing, and today has 82 retail outlets in 21 Chinese cities. Dr Sim said the aim is to increase this to 150 outlets by the end of 2003.

"With 10 years' on the ground experience in the mainland, we have witnessed and experienced phenomenal economic change in China from controlled economy to open market economy," Dr Sim said.

"As consumerism in China continues to rise, the market potential is enormous. China has over 200 major cities, and we believe there are currently 30 cities which are ready for OSIM outlets.

"The company's sales in Hong Kong in 2001 amounted to HK$331 million (US$42.4 million), with a population base of seven million people. China has at least five to 10 cities with a similar population profile and sales potential."

All of these factors form a timely backdrop to OSIM's launching of a major marketing campaign in China in 2003, with mainland actress Gong Li as the company's new face.

"We hope to list in Hong Kong when market conditions are favourable," Dr Sim added.

Related links:
OSIM www.osim.biz
HKEx www.hkex.com.hk