United Energy Group Limited - HKExnews

Annual Report 2009
Notes to the Financial Statements
For the nine months ended 31 December 2009
28. RESERVES (Continued)
(c) Nature and purpose of reserves (Continued)
(iii) Capital reserve
Capital reserve represents the aggregate of:
– the Group’s share of an additional equity contribution made from minority shareholder of a
subsidiary, Shenyang Shengtaiyuan Logistic Company Limited, on 19 April 2005; and
– the loan wavier made by the ultimate holding company, He Fu International Limited, to
a subsidiary, United Energy International Investments Limited (formerly known as Grand
Hope Group Limited).
(iv)
Statutory reserve
Statutory reserve, which is non-distributable, is appropriated from the profit after taxation of the
Company’s PRC subsidiaries under the applicable laws and regulations in the PRC.
(v)
Share-based payments reserve
The share-based payments reserve represents the fair value of the actual or estimated number of
unexercised share options granted to directors, employees and consultants of the Group recognised
in accordance with the accounting policy adopted for equity-settled share-based payments in note
3(W) to the financial statements.
29. SHARE-BASED PAYMENTS
Equity-settled share option scheme
The Company’s share option scheme (the “Scheme”) was adopted pursuant to the shareholders’ resolution passed
on 11 May 2006 for the primary purpose of providing opportunity to directors, employees and consultants to
acquire proprietary interests of the Group and will expire on 10 May 2016. Under the Scheme, the Board of
Directors of the Company may grant options to eligible person (including all directors, employees of the Group,
consultants, advisors, agents, customers, service providers, contractors and business partners of any members
of the Group).
The total number of shares in respect of which options may be granted under the Scheme is not permitted to
exceed 30% of the shares of the Company in issue from time to time. The number of shares issued and to be
issued in respect of which options granted and may be granted to any individual is not permitted to exceed 10% of
the shares of the Company in issue from time to time.
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