Lenovo 2010 Annual Report Download - page 110

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2009/10 Annual Report Lenovo Group Limited
108
NOTES TO THE FINANCIAL STATEMENTS (continued)
108
12 Earnings/(loss) per share (continued)
(b) Diluted
Diluted earnings/(loss) per share is calculated by adjusting the weighted average number of ordinary shares
outstanding due to the effect of all dilutive potential ordinary shares. The Company has four categories of dilutive
potential ordinary shares: convertible preferred shares, share options, long-term incentive awards and warrants.
For the year ended March 31, 2010, adjustments for the dilutive potential ordinary shares are as follows:
– For the convertible preferred shares, they were anti-dilutive as the amount of the dividend and related finance
costs per ordinary share attainable on conversion exceeded basic earnings/(loss) per share and they were
excluded from the weighted average number of ordinary shares in issue for calculation of diluted earnings/(loss)
per share.
– All warrants were exercised or repurchased on September 9, 2009 and they were excluded from the weighted
average number of ordinary shares in issue for calculation of diluted earnings/(loss) per share.
– For the share options, a calculation is done to determine the number of shares that could have been acquired
at fair value (determined as the average periodic market share price of the Company’s shares) based on
the monetary value of the subscription rights attached to outstanding share options. The number of shares
calculated as above is compared with the number of shares that would have been issued assuming the exercise
in full of the share options.
– For the long-term incentive awards, a calculation is done to determine whether the long-term incentive awards
are dilutive, and the number of shares that are deemed to be issued.
For the year ended March 31, 2009, all dilutive potential ordinary shares were anti-dilutive as the Group incurred a
loss for last year.
2010 2009
Weighted average number of ordinary shares in issue 9,113,645,262 8,851,779,460
Adjustments for share options and long-term incentive awards 621,234,062 –
Weighted average number of ordinary shares in
issue for calculation of diluted earnings/(loss) per share 9,734,879,324 8,851,779,460
US$’000 US$’000
Profit/(loss) attributable to equity holders of the Company 129,368 (226,392)
13 Dividends
2010 2009
US$’000 US$’000
Interim dividend of HK1.0 cent per ordinary share (2009: HK3.0 cents) 12,264 35,575
Proposed final dividend of HK4.5 cents (2009: nil) per ordinary share 56,464 –
68,728 35,575