Vtech 2010 Annual Report Download - page 59

VTech Holdings Ltd Annual Report 2010 57
18 Share Capital and Share Options (Continued)
(b) Share Options (Continued)
As at 31 March 2010, the number of shares issuable under the options granted pursuant to the 2001 Scheme was 2,860,000, 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 year were as follows:
Balance in Number of Balance in
issue at share options issue at
1 April exercised 31 March
Date of grant Exercise price Exercisable period (Note 1) 2009 during the year 2010
23 March 2005 HK$11.41 23 March 2008 to 80,000 (80,000) –
22 April 2010 (Note 2)
17 April 2008 HK$41.07 23 April 2009 to 1,306,000 (1,058,000) 248,000
29 April 2011 (Note 3)
17 April 2008 HK$41.07 23 April 2010 to 1,306,000 – 1,306,000
29 April 2012
17 April 2008 HK$41.07 23 April 2011 to 1,306,000 – 1,306,000
29 April 2013
3,998,000 (1,138,000) 2,860,000
Notes:
(1) Due to the number of employees participating in the 2001 Scheme, the relevant information can only be shown within a reasonable range in this Annual
Report. 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 80,000 share options were exercised at the exercise price of HK$11.41 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$58.71 per share
and HK$55.93 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$60.11 per share
and HK$57.70 per share respectively.
(4) No options were granted, lapsed or cancelled during the year.
(5) On 9 April 2010, an aggregate of 1,382,000 share options were granted at the exercise price of HK$85.35 per share pursuant to the 2001 Scheme.
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
23 March 2005 17 April 2008 17 April 2008 17 April 2008
(Note 1) (Note 2) (Note 2) (Note 2)
Fair value of each share option
as of the date of grant HK$3.1 HK$5.18 HK$5.76 HK$5.95
Closing price at the date of grant HK$11.4 HK$40.1 HK$40.1 HK$40.1
Exercise price HK$11.41 HK$41.07 HK$41.07 HK$41.07
Expected volatility 47.5% 43.33% 43.33% 43.33%
Annual risk-free interest rate 4.0% 1.22% 1.56% 1.88%
Expected average life of options 3.5 years 1.5 years 2.5 years 3.5 years
Expected dividend yield (Note 3) 5.5% 10.3% 10.3% 10.3%
Exercisable period 23 March 2008 to 23 April 2009 to 23 April 2010 to 23 April 2011 to
22 April 2010 29 April 2011 29 April 2012 29 April 2013
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 one year
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 two years
immediately preceding the grant date.
(3) Expected dividend yield is based on historical dividends over one year prior to grant date.
(4) Changes in the subjective input assumptions could significantly affect the fair value estimate.