Annual Report 2016
147
Financial Section
14 Staff Costs
(continued)
(b) Share options
(continued)
Notes:
(i)
A share option scheme was adopted by the Company on 24 November 2006 and amended on 13 March 2012 which will be valid
and effective for a period of ten years from the date of adoption. On 19 March 2012, 16 November 2012, 22 January 2014, 27
October 2014, 7 July 2015, 9 March 2016 and 10 June 2016, 107,300,000, 9,400,000, 30,100,000, 34,400,000, 20,100,000,
20,200,000 and 68,037,928 share options were granted to Directors and certain eligible participants at the exercise price of
HK$9.770, HK$11.996, HK$10.400, HK$9.510, HK$9.976, HK$7.200 and HK$7.540 per share respectively.
The Company declared final dividend for the year ended 30 June 2015 and interim dividend for the six months ended 31
December 2016 in cash (with scrip option) during the year. Accordingly, adjustments were made to the number of outstanding
share options and the exercise price. The exercise price per share of the share options granted on 19 March 2012 was adjusted
from HK$9.161 to HK$9.152 on 29 December 2015. The exercise price per share of the share options granted on 16 November
2012 was adjusted from HK$11.249 to HK$11.238 on 29 December 2015. The exercise price per share of the share options
granted on 22 January 2014 was adjusted from HK$9.766 to HK$9.756 on 29 December 2015. The exercise price per share of the
share options granted on 27 October 2014 was adjusted from HK$9.495 to HK$9.485 on 29 December 2015. The exercise price
per share of the share options granted on 7 July 2015 was adjusted from HK$9.976 to HK$9.966 on 29 December 2015.
The share options granted on 19 March 2012 were divided into 4 tranches and exercisable from 19 March 2012, 19 March 2013,
19 March 2014 and 19 March 2015 respectively to 18 March 2016.
The share options granted on 16 November 2012 were divided into 4 tranches and exercisable from 16 November 2012, 16
November 2013, 16 November 2014 and 16 November 2015 respectively to 15 November 2016.
The share options granted on 22 January 2014 were divided into 4 tranches exercisable from 22 January 2014, 22 January 2015,
22 January 2016 and 22 January 2017 respectively to 21 January 2018.
The share options granted on 27 October 2014 were divided into 4 tranches exercisable from 27 October 2014, 27 October 2015,
27 October 2016 and 27 October 2017 respectively to 26 October 2018.
The share options granted on 7 July 2015 were divided into 4 tranches exercisable from 7 July 2015, 7 July 2016, 7 July 2017 and
7 July 2018 respectively to 6 July 2019.
The share options granted on 9 March 2016 were divided into 4 tranches exercisable from 9 March 2016, 9 March 2017, 9 March
2018 and 9 March 2019 respectively to 8 March 2020.
The share options granted on 10 June 2016 were divided into 4 tranches exercisable from 10 June 2016, 10 June 2017, 10 June
2018 and 10 June 2019 respectively to 9 June 2020.
The fair value of the share options granted on 7 July 2015 are estimated at HK$1.574 per share using the Binomial pricing model.
Value is estimated based on the risk-free rate at 0.920% per annum with reference to the market yield rates of the Hong Kong
Government Bond (maturing 30 September 2019) as of the value date, a historical volatility of 30.98% calculated based on the
historical price with period equals to the life of the options, assuming dividend yield of 3.82% based on the average dividend
yield in the past five years and an expected option life of four years.
The fair value of the share options granted on 9 March 2016 are estimated at HK$1.042 per share using the Binomial pricing
model. Value is estimated based on the risk-free rate at 1.027% per annum with reference to the market yield rates of the Hong
Kong Government Bond (maturing 22 June 2020) as of the value date, a historical volatility of 27.00% calculated based on the
historical price with period equals to the life of the options, assuming dividend yield of 4.26% based on the average dividend
yield in the past four years and an expected option life of four years.
The fair value of the share options granted on 10 June 2016 are estimated at HK$0.966 per share using the Binomial pricing
model. Value is estimated based on the risk-free rate at 0.709% per annum with reference to the market yield rates of the Hong
Kong Government Bond (maturing 22 June 2020) as of the value date, a historical volatility of 26.00% calculated based on the
historical price with period equals to the life of the options, assuming dividend yield of 4.26% based on the average dividend
yield in the past four years and an expected option life of four years.
For the year ended 30 June 2016, the weighted average share price at the time of exercise was HK$8.066 per share (2015:
HK$10.465 per share).
