ANNUAL%20REPORT%202015%20eng

Directors’ Report
Maximum entitlement of each participant
Unless approved by the Shareholders, the total number of Shares issued and to be issued upon exercise of
all outstanding options granted under the Share Option Scheme and any other share option schemes of the
Company (including both exercised and outstanding options) to each participant in any 12-month period must not
exceed 1% of the Shares in issue. Each grant of options to a Director, chief executive or substantial Shareholder
or any of their respective associates must be approved by the independent non-executive Directors (excluding
any independent non-executive Director who is the grantee of the options).
Under the Share Option Scheme, the Company granted three batches of Share Options to its Director and
employees. On 12 October 2011, the Company offered 3,000,000 and 34,500,000 Share Options to a Director
and employees respectively, at the exercise price of HKD6.66 and 3,000,000 and 32,200,000 Share Options
were accepted by a Director and employees respectively. On 28 November 2012, the Company granted another
5,000,000 and 17,750,000 Share Options to a Director and employees respectively at the exercise price of
HKD3.92.
As a result of the rights issue completed on 29 December 2014, adjustments were made to the exercise prices
and the number of shares falling to be issued upon the exercise of the Share Options in accordance with
the terms of the Share Option Scheme and the supplementary guidance issued by the Stock Exchange on 5
September 2005 regarding the adjustment of share options under rule 17.03(13) of the Listing Rules.
A total of 48,100,000 Options were outstanding under the Share Option Scheme as at the completion of the rights
issue. The exercise prices and the number of the shares falling to be issued under the outstanding Share Options
were adjusted pursuant to Clause 11 of the Share Option Scheme (the “Option Adjustments”) with effect from 1
January 2015, and such adjustments have been reviewed and confirmed by the independent financial adviser of
the Company, Somerley Capital Limited. Details of the adjustments are set out in Tables 25 and 26 below.
On 10 June 2015, the Company granted another 60,000,000 and 94,750,000 Share Options to a Director and
employees respectively at the exercise price of HKD0.445. The closing price of the shares immediately before the
grant of Share Options on 10 June 2015 was HKD0.52 per Share. Further details of the grant are set out in note
27 to the consolidated financial statements.
Annual Report 2015
99