Annual Report 2019

141 Miramar Hotel and Investment Company, Limited Annual Report 2019 Notes to the Financial Statements 8 Earnings per share (Continued) (b) Diluted earnings per share For the year ended 31 December 2019, the calculation of diluted earnings per share is based on the profit attributable to shareholders of the Company of HK$1,288,227,000 (2018: HK$1,624,151,000) and the weighted average of 690,959,695 shares (2018: 688,086,841 shares), calculated as follows: Weighted average number of shares (diluted) 2019 2018 Weighted average number of shares (basic) at 31 December 690,959,695 687,811,189 Effect of exercisable bonus warrants (note 23(b)(ii)) – 275,652 Weighted average number of shares (diluted) at 31 December 690,959,695 688,086,841 (c) Underlying earnings per share (basic) For the purpose of assessing the underlying performance of the Group, underlying earnings per share (basic) is additionally calculated based on the profit attributable to shareholders of the Company after excluding the effects of changes in fair value of investment properties and net gain from non-core business. A reconciliation of profit is as follows: 2019 2018 HK$’000 HK$’000 Profit attributable to shareholders of the Company 1,288,227 1,624,151 Changes in fair value of investment properties during the year (503,945) (783,475) Effect of deferred tax on changes in fair value of investment properties (55) 1,594 Effect of share of non-controlling interests – 2,469 Net gain on liquidation of a subsidiary – (16,589) Underlying profit attributable to shareholders of the Company 784,227 828,150 Underlying earnings per share (basic) HK$1.13 HK$1.20