annual report - AV Concept Holdings Limited

116
Av ConCept Holdings limited
AnnuAl RepoRt 2012
NOTES TO FINANCIAL STATEMENTS
31 March 2012
33. SHARE OPTION SCHEME (continued)
2011
number of options exercise price * exercise period
‘000 HK$ per share
19 July 2007 to
3,500 0.50 12 may 2012
9 march 2010 to
4,660 1.01 8 march 2012
9 march 2011 to
4,660 1.01 8 march 2012
12,820
* The exercise price of the share options is subject to adjustment in case of rights or bonus issues, or other similar changes
in the Company’s share capital.
the fair value of the share options granted to three directors during the year was HK$1,340,000 (2011: nil) and the
whole amount was recognised as other expenses in the consolidated income statement.
the fair values of equity-settled share options granted were estimated as at the dates of grant of 15 July 2011, 9 march
2010 and 18 July 2007 using a binomial model, taking into account the terms and conditions upon which the options
were granted. the following table lists the inputs to the model used:
15 July 2011 9 march 2010 18 July 2007
dividend yield (%) 5.47 4.50 –
expected volatility (%) 46.05 66.74 0.62
Risk-free interest rate (%) 0.17 0.71 3.89
expected life of options (year) 0.83 1.62 4.82
Weighted average share price (HK$ per share) 1.28 1.01 0.50
the expected life of the options is based on the historical data over the past three years and is not necessarily indicative
of the exercise patterns that may occur. the expected volatility reflects the assumption that the historical volatility is
indicative of future trends, which may also not necessarily be the actual outcome.
no other feature of the options granted was incorporated into the measurement of fair value.
At the end of the reporting period, the Company had 11,820,000 share options outstanding under the scheme. the
exercise in full of the outstanding share options would, under the present capital structure of the Company, result in
the issue of 11,820,000 additional ordinary shares of the Company and additional share capital of HK$1,182,000 and
share premium of HK$11,218,000 (before issue expenses).
At the date of approval of these financial statements, there were no share options outstanding under the scheme.