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Glorious Property
142
Annual Report 2011
Notes to the Consolidated Financial Statements
(Continued)
31 December 2011
31 Income Tax Expenses
(Continued)
PRC land appreciation tax (“LAT”) is levied at progressive rates ranging from 30% to 60% on the appreciation
of land value, being the proceeds of sales of properties less deductible expenditures including lease charges
of land use rights and all property development expenditures, which is included in the consolidated statement
of comprehensive income as income tax. The Group has estimated the tax provision for LAT according to the
requirements set forth in the relevant PRC tax laws and regulations. The actual LAT liabilities are subject to the
determination by the tax authorities upon completion of the property development projects and the tax authorities
might disagree with the basis on which the provision for LAT is calculated.
32 Earnings Per Share
(a) BASIC
Basic earnings per share is calculated by dividing the profit attributable to the Company’s equity holders by the
weighted average number of ordinary shares in issue during the year.
RMB’000
2011
2010
Profit attributable to the Company’s equity holders
2,215,654
3,608,552
Weighted average number of ordinary shares in issue (thousands)
7,792,646
7,792,646
(b) DILUTED
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding
to assume conversion of all dilutive potential ordinary shares. For each of the years ended 31 December 2010 and
2011, the Company only has share options that are dilutive potential ordinary shares.
2011
2010
Earnings (RMB’000)
Profit attributable to the Company’s equity holders
2,215,654
3,608,552
Number of Shares
Weighted average number of ordinary shares in issue (thousands)
7,792,646
7,792,646
Adjustment for share options (thousands)
5,019
27,237
Weighted average number of ordinary shares for
diluted earnings per share (thousands)
7,797,665
7,819,883
33 Dividend
The Board has resolved not to recommend for shareholders’ approval at its forthcoming annual general meeting on
29 May 2012 the payment of a final dividend for the year ended 31 December 2011 (2010: Nil).