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NOTES TO CONDENSED INTERIM FINANCIAL REPORT (CONTINUED)
11 LONG-TERM LIABILITIES (CONTINUED)
Earnout and earnup of certain acquisitions were remeasured during the period, details are set out in Note 4 and Note 8 to the
interim financial report.
The basis of the contingent consideration differs for each acquisition; generally however the contingent consideration reflects
a specified multiple of the post-acquisition financial profitability of the acquired business. Consequently, the actual additional
consideration payable will vary according to the future performance of each individual acquired business, and the liabilities
provided reflect estimates of such future performances. Due to the number of acquisitions for which additional consideration
remains outstanding and the variety of basis of determination, it is not practicable to provide any meaningful sensitivity in relation
to the critical assumptions concerning future profitability of the acquired business.
Should the total actual additional consideration paid in the period ended 30 June 2012 be 0.1% higher/lower than the
corresponding amount of contingent consideration estimated by management as payable at 30 June 2012, there would
be consequent increases/reductions in non-core operating expenses for the period ended 30 June 2012 and goodwill of
US$1,622,000 and US$175,000 respectively.
12 SHARE CAPITAL AND OPTIONS
No. of shares Equivalent to
(in thousand) HK$’000 US$’000
Authorized
At 1 January 2012, ordinary shares of HK$0.0125 each 12,000,000 150,000 19,231
At 30 June 2012, ordinary shares of HK$0.0125 each 12,000,000 150,000 19,231
Issued and fully paid
At 1 January 2012, ordinary shares of HK$0.0125 each 8,104,154 101,302 12,987
Issue of shares upon a private placing (Note) 210,000 2,625 337
Exercise of share options 42,303 529 68
At 30 June 2012, ordinary shares of HK$0.0125 each 8,356,457 104,456 13,392
NOTE:
Pursuant to a placing agreement dated 27 March 2012, Fung Holdings (1937) Limited (formerly known as Li & Fung (1937) Limited) (“FH (1937)”)
placed 210,000,000 existing shares of HK$0.0125 each in the share capital of the Company to not less than six independent professional, institutional
and/or individual investors at a price of HK$18.62 per share and to subscribe from the Company for the same number of shares at the same
price before taking into account the placing commission and other expenses borne or incurred by FH (1937) in relation to the placing and/or the
subscription. The net proceeds of the subscription amounted to approximately US$498,260,000 was used by the Company as general working
capital of the Group which may include funding future business development and acquisitions by the Group from time to time.
LI & FUNG LIMITED | INTERIM REPORT 2012
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