Vtech 2008 Annual Report Download - page 47

VTech Holdings Ltd Annual Report 2008 45
17 SHARE CAPITAL AND SHARE OPTIONS CONTINUED
(b) Share Options (continued)
As at 31st March 2008, the number of shares issuable under the options granted pursuant to the 2001 Scheme was 3,355,000, which
represented approximately 1.4% of the issued share capital of the Company. The movements in the number of share options under
the 2001 Scheme during the year were as follows:
Date of grant Exercise price Exercisable period
Balance in
issue at
1st April 2007
Number of
share options
exercised
during the year
Number of
share options
lapsed
during the year
Balance in
issue at
31st March
2008
(Note 1) (Note 2)
20th April 2004 to
19th May 2004
HK$15.0 20th April 2007 to
19th May 2009
1,965,000 (1,965,000)
(Note 3)
––
19th November 2004 HK$11.03 22nd November 2007 to
21st November 2009
1,500,000 (1,500,000)
(Note 4)
––
23rd March 2005 to
22nd April 2005
HK$11.41 23rd March 2008 to
22nd March 2010
1,410,000 – (55,000) 1,355,000
12th August 2005 HK$19.3 26th August 2008 to
25th August 2010
2,000,000 – – 2,000,000
6,875,000 (3,465,000) (55,000) 3,355,000
Note 1: Due to the large number of employees participating in the 2001 Scheme, the relevant information can only be shown within a reasonable range in
this Annual Report. For options granted to employees, the options were granted during the underlying periods for acceptance of such options by
the employees concerned.
Note 2: As one of the conditions of grant, the employees concerned agreed with the Company that the options shall not be exercisable within the period of
36 months from the date on which such options were deemed to be granted and accepted and shall not be exercisable after 60 months from the
date on which such options were deemed to be granted and accepted.
Note 3: An aggregate of 1,965,000 share options were exercised at the exercise price of HK$15.0 per share during the  nancial year. The weighted average
closing prices of the shares of the Company immediately before the dates on which the options were exercised and at the dates of exercise were
HK$63.26 per share and HK$63.24 per share respectively.
Note 4: An aggregate of 1,500,000 share options were exercised at the exercise price of HK$11.03 per share during the  nancial year. The weighted average
closing prices of the shares of the Company immediately before the dates on which the options were exercised and at the dates of exercise were
HK$67.40 per share and HK$65.90 per share respectively.
Note 5: No options were granted and cancelled during the year.
Note 6: On 17th April 2008, an aggregate of 3,918,000 share options were granted at the exercise price of HK$41.07 per share pursuant to the 2001 Scheme.
Share option expenses charged to the consolidated income statement are determined with the Black-Scholes model based on the
following assumptions:
Date of grant
20th April
2004
19th November
2004
23rd March
2005
12th August
2005
Fair value of each share option as of the date of grant HK$5.1 HK$2.6 HK$3.1 HK$5.4
Closing price at the date of grant HK$15.0 HK$10.9 HK$11.4 HK$19.3
Exercise price HK$15.0 HK$11.03 HK$11.41 HK$19.3
Expected volatility 50.7% 49.1% 47.5% 48.0%
Annual risk-free interest rate 3.5% 2.8% 4.0% 3.9%
Expected average life of options 3.5 years 3.5 years 3.5 years 3.5 years
Expected dividend yield 2.6% 7.1% 5.5% 5.1%
The volatility measured at the standard deviation of expected share price returns is based on statistical analysis of daily share prices
over the one year immediately preceding the grant date.