Vtech 2004 Annual Report Download - page 45

43
Notes to the
Financial Statements
VTech Holdings Ltd Annual Report 2004
18 SHARE CAPITAL, SHARE OPTIONS AND WARRANTS
(continued)
Share options (continued)
Prior to 10th September 2003, the number of common stock
issuable under outstanding stock options granted pursuant to the
HomeRelay Plan was 705,475, which represented approximately
9.5% of the then issued stock capital of HomeRelay. All outstanding
options lapsed since 10th September 2003 as a result of the
termination of employment of the relevant grantees under the
HomeRelay Plan. Certain information concerning changes during
the year in the number of outstanding stock options under the
HomeRelay Plan is set forth below:
Weighted Number of Number of Number of Balance
average Balance in share options share options share options in issue
exercise issue at granted exercised lapsed at 31st March
Date of grant price Exercisable period 1st April 2003 during the year during the year during the year 2004
(Note 1) (Note 2)
1st September 2000 US$1.0 1st September 2000 705,475 ——(705,475) —
to 22nd February 2001 to 21st February 2011
Note 1: The stock options were granted to the employees concerned during the said period from 1st September 2000 to 22nd February 2001 and the information can only be shown within a
reasonable range in this Annual Report.
Note 2: No options were cancelled during the year.
Warrants Pursuant to a warrant instrument dated 19th January
2000 issued by the Company to AT&T Corp. (“AT&T”) as part of a
trademark licence agreement between the Company and AT&T
pursuant to which AT&T granted the Company the exclusive right
to use the AT&T brand for 10 years in connection with the
manufacture and sale of wireless telephones and accessories in the
United States and Canada, the Company granted AT&T warrants
carrying rights to subscribe for 3,000,000 ordinary shares in the
Company at a exercise price of HK$20.0 per share on or before 18th
January 2012.
Pursuant to a Revised AT&T Brand Licence Agreement dated 24th
January 2002, the exercise price of these warrants was revised to
HK$8.43 (being the lower of the initial exercise price of HK$20.0
and the average of the closing price of the shares of the Company
as quoted on The Stock Exchange of Hong Kong Limited for the
five (5) dealing days immediately preceding 15th July 2002) and
the expiration date of these warrants was amended to 12th
December 2011.
No warrants have been exercised since the date of grant.
19 RESERVES
Group Company
2004 2003 2004 2003
Note US$ million US$ million US$ million US$ million
Share premium 74.3 74.3 74.3 74.3
Other properties
revaluation reserve 6.1 6.8 ——
Revenue reserve 77.6 41.9 41.3 46.3
Exchange reserve (6.7 ) (6.8 ) (1.2 ) (1.2 )
Hedging reserve ————
151.3 116.2 114.4 119.4
An analysis of movements in
reserves is set out below:
Share premium
Brought forward and
carried forward 74.3 74.3 74.3 74.3
Other properties
revaluation reserve
Brought forward 6.8 6.6 ——
Disposal of properties
previously revalued (0.7 ) (0.3 ) ——
Surplus arising on
revaluation of other
properties —0.5 ——
Carried forward 6.1 6.8 ——
Group Company
2004 2003 2004 2003
Note US$ million US$ million US$ million US$ million
Revenue reserve
Brought forward 41.9 4.2 46.3 36.6
Profit attributable to
shareholders 46.3 40.8 6.3 13.1
Final dividend in respect of
the previous year 6 (4.5 ) —(4.5 ) —
Interim dividend in respect
of the current year 6 (6.8 ) (3.4 ) (6.8 ) (3.4 )
Disposal of properties
previously revalued 0.7 0.3 ——
Carried forward 77.6 41.9 41.3 46.3
Exchange reserve
Brought forward (6.8 ) (6.6 ) (1.2 ) (1.2 )
Exchange translation
differences 0.1 (0.2 ) ——
Carried forward (6.7 ) (6.8 ) (1.2 ) (1.2 )
Hedging reserve
Brought forward —(0.4 ) ——
Transfer to income statement 2 3.6 0.4 ——
Fair value losses on hedging
during the year (3.6 ) ———
Carried forward ————