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149
Glorious Property
Annual Report 2011
Notes to the Consolidated Financial Statements
(Continued)
31 December 2011
39 Share Option Schemes
(Continued)
(a) PRE-IPO SHARE OPTION SCHEME
(Continued)
Each share option gives the holder the right to subscribe for one ordinary share of the Company.
Movement of Pre-IPO Share Option Scheme during the year ended 31 December 2010 and 2011 is as follows:
Exercise
Price (HK$)
Number
of options
At 1 January 2010
1.76 82,000,000
Lapsed
1.76 (4,000,000)
At 31 December 2010 and 2011
1.76 78,000,000
Out of the 78,000,000 outstanding options, 46,400,000 options were exercisable. All of the outstanding share
options will expire by 8 September 2019.
The weighted average fair value granted during the year determined using the Binomial option pricing model was
HK$3.05 per option. The significant inputs to the model were as follows:
Assumptions
Volatility
73.85%
Dividend yield
1.70%
Annual risk-free rate
2.356%
Expected option life
10 years
The volatility measured at the standard deviation of expected share price returns is based on statistical analysis of
daily share prices over the past three years of similar listed companies.
(b) SHARE OPTION SCHEME
Pursuant to the aforementioned resolution in writing passed by all the shareholders of the Company on 9 September
2009, the Company adopted a share option scheme on 9 September 2009 (“Share Option Scheme”). The purpose
of the share option scheme is to provide incentives to the Group’s employees including the executive directors
and non-executive directors (each a “participant”). The Board may, at any time within 10 years after the date of
adoption of the Share Option Scheme, make an offer to any participant. The subscription price for shares granted
pursuant to the Share Option Scheme is the highest of:
— the closing price of the shares of the Company on the Hong Kong Stock Exchange on the business day on
which an offer is made to a participant;
— the average of the closing prices of the shares on the Hong Kong Stock Exchange for the five business days
immediately preceding the date on which such offer is made; and
— the nominal value of the shares of the Company.