Annual Report 2021

143 Notes to the Financial Statements Miramar Hotel and Investment Company, Limited Annual Report 2021 8 Earnings per share (a) Basic and diluted earnings per share For the year ended 31 December 2021, the calculation of earnings per share of HK$0.48 (2020: HK$0.44) is based on the profit attributable to shareholders of the Company of HK$329,958,000 (2020: HK$301,899,000) and 690,959,695 shares (2020: 690,959,695 shares) in issue during the year. There were no potential ordinary shares in existence during the current and prior years, hence diluted earnings per share is the same as the basic earnings per share. (b) Underlying earnings per share For the purpose of assessing the underlying performance of the Group, underlying earnings per share is additionally calculated based on the profit attributable to shareholders of the Company after excluding the effects of changes in fair value of investment properties and other non-recurring items. A reconciliation of profit is as follows: 2021 2020 HK$’000 HK$’000 Profit attributable to shareholders of the Company 329,958 301,899 Changes in fair value of investment properties during the year 112,143 152,016 Effect of deferred tax on changes in fair value of investment properties (171) 45 Net gain on disposal of properties (18,696) – Underlying profit attributable to shareholders of the Company 423,234 453,960 Underlying earnings per share HK$0.61 HK$ 0.66