Annual Report 2007 - Hmdatalink.com hm datalink

Notes to the consolidated financial statementsfor the year ended 31 December 200728. SHARE-BASED PAYMENT TRANSACTIONS (Continued)Equity-settled share option scheme (Continued)No options were exercised to subscribe for shares in the Company during the years.During the year ended 31 December 2007, options were granted on 18 September 2007. During the yearended 31 December 2006, options were granted on 23 May 2006 and 28 November 2006. The estimatedtotal fair values of the options granted in 2007 and 2006 are approximately HK$6,305,000 and HK$3,644,000respectively.These fair values were calculated using The Black-Scholes-Merton Option pricing model. The inputs into themodel were as follows:2007 2006Grant date 18 September 2007 28 November 2006 23 May 2006(Lot 1) (Lot 2) (Lot 1) (Lot 2) (Lot 1) (Lot 2)Exercise price HK$1.06 HK$1.06 HK$0.89 HK$0.89 HK$0.93 HK$0.93Expected volatility 47.11% 47.11% 47.65% 58.30% 38% 38%Expected life 1.2 year 1.2 year 0.5 year 1 year 1 year 3 yearsRisk-free rate 3.873% 3.873% 3.595% 3.663% 4.213% 4.432%Expected dividend yield 0.97% 0.97% 2.81% 1.40% 0.75% 2.00%Expected volatility was determined by using historical volatility of the Company’s share price over theprevious one year, adjusted for any expected changes to future volatility based on publicly availableinformation. The expected life used in the model has been adjusted, based on management’s best estimate,for the effects of non transferability, exercise restrictions and behavioural considerations.The Group recognised total expense of HK$5,460,000 for the year ended 31 December 2007 (2006:HK$4,660,000) in relation to share options granted by the Company.During the year ended 31 December 2007, 280,020,000 share options carried forward from 31 December 2006have been cancelled and re-issued under the same terms because the original share options issued haveexceeded the mandate limit of the Scheme and therefore requiring independent shareholders’ approval torefresh the Scheme mandate limit. Details of the cancellation and re-issue of share options have been set outin the Company’s circular dated 13 July 2007.GEELY AUTOMOBILE HOLDINGS LIMITED100ANNUAL REPORT 2 0 0 7