Vtech 2011 Annual Report Download - page 55

VTech Holdings Ltd Annual Report 2011 53
17 Share Capital and Share Options (Continued)
(b) Share Options (Continued)
As at 31 March 2011, the number of shares issuable under the options granted pursuant to the 2001 Scheme was 2,936,000, which
represented approximately 1.2% of the issued share capital of the Company. The movements in the number of share options under the
2001 Scheme during the financial year were as follows:
Number of share options
Date of grant Exercise price
Exercisable period
(Note 1)
Balance in
issue at
1 April 2010
Granted
during the year
Exercised
during the year
Balance in
issue at
31 March 2011
17 April 2008 HK$41.07 23 April 2009 to
29 April 2011
248,000 – (248,000)
(Note 2)
–
17 April 2008 HK$41.07 23 April 2010 to
29 April 2012
1,306,000 – (1,058,000)
(Note 3)
248,000
17 April 2008 HK$41.07 23 April 2011 to
29 April 2013
1,306,000 – – 1,306,000
9 April 2010 HK$85.35 12 April 2012 to
4 May 2014
– 1,382,000
(Note 4)
–1,382,000
2,860,000 1,382,000 (1,306,000) 2,936,000
Notes:
(1) The 2001 Scheme does not specify any minimum holding period before the option can be exercised but the Board has the authority to determine the minimum holding period at
the time of grant of any particular option.
(2) An aggregate of 248,000 share options were exercised at the exercise price of HK$41.07 per share during the financial 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$86.98 per share and HK$84.68 per share respectively.
(3) An aggregate of 1,058,000 share options were exercised at the exercise price of HK$41.07 per share during the financial 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$84.88 per share and HK$81.09 per share respectively.
(4) On 9 April 2010, the Company granted 1,382,000 options to certain employees of the Company and its subsidiaries pursuant to the 2001 Scheme. The closing price per share
immediately before the date on which options were granted was HK$86.90.
(5) No options were lapsed or cancelled during the financial year.
Share option expenses charged to the consolidated income statement are determined using the Black-Scholes option pricing model
based on the following assumptions:
Date of grant
17 April 2008
(Note 1)
17 April 2008
(Note 1)
17 April 2008
(Note 1)
9 April 2010
(Note 2)
Fair value of each share option as of the date of grant HK$5.18 HK$5.76 HK$5.95 HK$22.12
Closing price at the date of grant HK$40.1 HK$40.1 HK$40.1 HK$85.1
Exercise price HK$41.07 HK$41.07 HK$41.07 HK$85.35
Expected volatility 43.33% 43.33% 43.33% 54.24%
Annual risk-free interest rate 1.22% 1.56% 1.88% 0.99%
Expected average life of options 1.5 years 2.5 years 3.5 years 2.5 years
Expected dividend yield (Note 3) 10.3% 10.3% 10.3% 5.22%
Exercisable period 23 April 2009 to
29 April 2011
23 April 2010 to
29 April 2012
23 April 2011 to
29 April 2013
12 April 2012 to
4 May 2014
Notes:
(1) The volatility measured at the standard deviation of expected share price returns is based on statistical analysis of daily share prices over the two years immediately preceding the
grant date.
(2) The volatility measured at the standard deviation of expected share price returns is based on statistical analysis of daily share prices over the three years immediately preceding the
grant date.
(3) Expected dividend yield is based on historical dividends over one year prior to the grant date.
(4) Changes in the subjective input assumptions could significantly affect the fair value estimate.
(c) Share Purchase Scheme
On 30 March 2011 (the “Adoption Date”), the Company adopted a Share Purchase Scheme. The shares to be awarded (to eligible
employees of the Group) pursuant to the Share Purchase Scheme will be existing shares, which will be purchased on the Stock Exchange
by the independent trustee with funds provided by the Company, and will be awarded in such manner as the remuneration committee
may determine or approve. The maximum number of shares that can be held by the trustee under the Share Purchase Scheme is limited
to three per cent of the issued share capital of the Company from time to time (excluding shares which have already been transferred
to employees on vesting). The Share Purchase Scheme has a term of 20 years from the Adoption Date.
During the financial year since the Adoption Date, there were no shares purchased, granted and awarded.