Cathay Pacific 2007 Annual Report Download - page 75

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Notes to the Accounts
Balance Sheet
20. Share capital
2007 2006
Number of shares HK$M Number of shares HK$M
Authorised (HK$0.20 each)
At 1st January 5,000,000,000 1,000 3,900,000,000 780
Additions – – 1,100,000,000 220
At 31st December 5,000,000,000 1,000 5,000,000,000 1,000
Issued and fully paid (HK$0.20 each)
At 1st January 3,935,697,572 787 3,380,632,348 676
Issue of new shares – – 548,045,724 110
Share options exercised 4,327,500 1 7,019,500 1
At 31st December 3,940,025,072 788 3,935,697,572 787
The Company adopted a share option scheme (the “Scheme”) on 10th March 1999 for the purpose of providing
flight deck crew with an incentive to contribute towards the Company’s results. All participants of the Scheme were
flight deck crew who paid HK$1 each on acceptance of their share options and were granted options to subscribe
for shares of the Company at a price not less than the higher of 80% of the average of the closing prices of the
Company’s shares on the Stock Exchange on the five trading days immediately preceding the date of grant, and the
nominal value of the shares. The Scheme had been closed and no share options were available for issue under the
Scheme during the year. The entitlement of each participant has not exceeded 0.32% of the maximum aggregate
number of shares in respect of which options have been granted under the Scheme.
Options to subscribe for a total of 68,327,000 shares at the exercise price of HK$7.47 per share were granted under
the Scheme on the date of grant 15th March 1999. Other than in limited circumstances, the options in relation to
50% of the shares became exercisable on 15th March 2002, and the balance on 15th March 2004. The options will,
except in limited circumstances, be exercisable until 14th March 2009.
HKFRS 2 “Share-based Payment” does not apply to this Scheme as share options were granted before 7th
November 2002.
Upon exercise of share options, equity is increased by the number of options exercised at the exercise price.
2007
Number of shares
2006
Number of shares
Movements in options outstanding comprise:
At 1st January 9,058,000 16,077,500
Options exercised (4,327,500) (7,019,500)
At 31st December 4,730,500 9,058,000
Options vested at 31st December 4,730,500 9,058,000
No option was granted under the Scheme during the year.
2007 2006
Details of share options exercised during the year:
Exercise date 7/1/07 – 30/11/07 10/1/06 – 19/12/06
Proceeds received (HK$) 32,326,425 52,435,665
Weighted average closing share price immediately
before the exercise date (HK$) 20.56 15.74
Cathay Pacific Airways Limited Annual Report 2007 73