Haier 2009 Annual Report Download - page 146

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31 December 2009

NOTES TO FINANCIAL STATEMENTS 財務報表附註
HAIER ELECTRONICS GROUP CO., LTD ANNUAL REPORT 2009
144
30. Share Option Scheme (Cont’d)
The fair value of equity-settled share options granted during the
year was estimated as at the date of grant, taking into account the
terms and conditions upon which the options were granted. The
following table lists the inputs to the model used:
Executive directors, non-directors and other participants 
Dividend yield (%) % 2.38
Historical volatility (%) % 65.10
Risk-free interest rate (%) % 1.731
Contractual life of options (year)  5
Exercise multiple  150%
Weighted average share price (HK$ per share)  1.70
External Consultants 
Dividend yield (%) % 2.38
Historical volatility (%) % 67.61
Risk-free interest rate (%) % 1.475
Contractual life of options (year)  4
Exercise multiple  150%
Weighted average share price (HK$ per share)  1.70
The expected volatility reflects the assumption that the historical
volatility is indicative of future trends, which may also not necessarily
be the actual outcome.
No other feature of the options granted was incorporated into the
measurement of fair value.
At the end of the reporting period, the Company had 84,450,000
share options outstanding under the Share Option Scheme. The
exercise in full of the outstanding share options would, under
the present capital structure of the Company, result in the
issue of 84,450,000 additional ordinary shares of the Company
and additional share capital of RMB7,431,600 (equivalent to
HK$8,445,000) and share premium of RMB118,905,600 (equivalent
to HK$135,120,000) (before issue expenses).
At the date of approval of these financial statements, the Company
had 84,450,000 share options outstanding under the Share Option
Scheme, which represented approximately 4.2% of the Company’s
shares in issue as at that date.
30. 







               
84,450,000

84,450,000
    7,431,600   8,445,000
118,905,600
135,120,000

84,450,000
4.2%