Investor Presentaiton
HKAS 1.51
HK Listco Ltd
Year ended 31 December 2023
A16(6):Note
6.3(j)
R17.09
C(DR)R.6(2)
Share option scheme23
R17.07(2) & (3)
C(DR)R.3
A16(13)(2)
R17.07
PN5(3.2) &
(3.3)(1)
The company has a share option scheme which was adopted on 1 March 2019 whereby the directors of the
company are authorised, at their discretion, to invite employees of the group, including directors of any
company in the group, to take up options to subscribe for ordinary shares of the company. The purpose of the
scheme is to provide an opportunity for employees of the group to acquire an equity participation in the
company and to encourage them to work towards enhancing the value of the company and its shares for the
benefit of the company and its shareholders as a whole. The share option scheme shall be valid and effective
for a period of ten years ending on 28 February 2029, after which no further options will be granted.
The exercise price of options is the highest of the nominal value of the shares (if any), the closing price of the
shares on The Stock Exchange of Hong Kong Limited on the date of grant and the average closing price of the
shares on The Stock Exchange of Hong Kong Limited for the five business days immediately preceding the date
of grant 24. The options vest after one year from the date of grant and are then exercisable within a period of
two years.
The total number of shares which may be issued under the share option scheme is 9,000,000 shares. The
number of shares issued and to be issued upon exercise of the options granted to each participant in any 12-
month period is limited to [•]% of the company's ordinary shares in issue.
Up to 31 December 2023, 1,000,000 shares have been issued under the share option scheme, leaving
8,000,000 shares available for issue (including 6,000,000 shares issuable under options that have been granted
but not yet lapsed or exercised). At the date of this report, the total number of shares available for issue under
the share option scheme remained at 8,000,000 shares, which represented 8% of the ordinary shares of the
company in issue.
The remaining number of options available for grant under the share option scheme as at 1 January 2023 and
31 December 2023 are 2,300,000 and 2,000,000 respectively 25. The number of shares that may be issued in
respect of the options granted during the year is 500,000 shares, representing 0.5% of the weighted average
number of ordinary shares in issue for the year.
At 31 December 2023, the directors and employees of the company had the following interests in options to
subscribe for shares of the company (market value per share at 31 December 2023 was HK$6.70) granted for
nil consideration under the share option scheme of the company 26. As at 31 December 2023, the total grant
date fair value of unexercised vested options and unvested options, measured in accordance with the
accounting policy set out in note 1(x)(iii) to the financial statements, amounted to $3,450,000 and $100,000,
respectively27. The options are unlisted. Once vested, each option gives the holder the right to subscribe for
one ordinary share of the company. Assuming that all the options outstanding as at 31 December 2023 are
exercised, the company will receive proceeds of $36,250,00027.
R17.01
23
R17.09(8)
R17.07(2)
24
25
Chapter 17 of the MBLRs governs share option schemes and share award schemes (collectively referred as the "share schemes") and
includes specific disclosure requirements.
In this illustration, it is assumed that HK Listco only has one single share option scheme at the parent level, and that is funded by the
issuance of new shares. Listed issuers should refer to Chapter 17 of the MBLRs if they have other types of share option or share award
schemes, in particular if they have schemes funded by existing shares (Rule 17.12) or scheme at the principal subsidiary level (Rules 17.13-
15).
Chapter 17 of the MBLRS requires, for each scheme, the disclosure of the basis of determining the exercise price of the share options
granted, or the purchase price of shares awarded.
In this illustration, it is assumed that the participants of HK Listco's share option scheme do not include any service providers. If a listed
issuer's share scheme includes service providers, it should disclose the number of share options and awards available for grant under the
sublimit applicable to service providers at the beginning and the end of the financial year.
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