Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
HK Listco Ltd
A16(10)(4)
R10.06(4)(b)
Financial statements for the year ended 31 December 2023
(iii) Purchase of own shares
During the year, the company repurchased its own ordinary shares on The Stock Exchange of Hong Kong
Limited as follows:
Month/year
February 2023
May 2023
Number of shares
repurchased
Highest price paid
Lowest price paid
Aggregate price
per share
per share
paid
$
$
$'000
300,000
200,000
6.85
6.80
6.75
2,040
6.70
1,350
3,390
A16(10)(2)
HKAS 1.79(b)
The repurchase was governed by section 257 of the Hong Kong Companies Ordinance. The total
amount paid on the repurchased shares of $3,390,000 was paid wholly out of retained profits.260
(iv) Shares issued under share option scheme
On 1 February 2023, options were exercised to subscribe for 1,000,000 ordinary shares in the company
at a consideration of $6,000,000, all of which was credited to share capital. $400,000 was transferred
from the capital reserve to the share capital account in accordance with policy set out in note 1(x)(iii).
(d) Nature and purpose of reserves
(i) Capital reserve
The capital reserve comprises the following:
the portion of the grant date fair value of unexercised share options granted to employees of the
company that has been recognised in accordance with the accounting policy adopted for share-
based payments in note 1(x)(iii); and
the amount allocated to the unexercised equity component of convertible notes issued by the
company recognised in accordance with the accounting policy adopted for convertible notes in
note 1(w)(i).
(ii) Exchange reserve
The exchange reserve comprises all foreign exchange differences arising from the translation of the
financial statements of foreign operations as well as the effective portion of any foreign exchange
differences arising from hedges of the net investment in these foreign operations. The reserve is dealt
with in accordance with the accounting policies set out in notes 1(i)(ii) and 1(bb).
260 When a company repurchases the shares out of distributable profits under section 257 of the CO, it should record the debit entry to
its "retained profits" and reduce the number of shares in issue for the shares cancelled under section 269 of the CO.
For overseas incorporated companies, the relevant overseas legislation in relation to repurchase of shares would need to be
followed.
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