Particulars of the associated company are as follows:

A summary of the financial information of Megewell Industrial Limited, based on its audited financial statements for the year ended 31 March 1998, is as follows:

The balance with the associated company is unsecured, interest bearing at prime rate (1997: interest-free) per annum and repayable on agreed credit terms.

Certain bank loans and overdrafts are secured by pledges of certain properties of the Group.

The maturity of the above amounts are as follows:

Certain bank loans are secured by pledges of certain properties of the Group.

There were obligations under finance leases at the balance sheet date as follows:

The provision for deferred taxation relates to timing differences arising from accelerated depreciation allowances.

There are no significant potential deferred tax liabilities for which provision has not been made.

The revaluations of the Group's properties do not constitute timing differences and, consequently, the amount of potential deferred tax thereon has not been quantified.

On 1 April 1997, 19,430,052 new ordinary shares of HK$0.10 of the Company were issued to Perfection Inc. at a price of HK$5.79 per share as part of the consideration for the acquisition of 50% equity interest of an associated company. All the new shares rank pari passu in all respect with the then existing issued shares.

On 26 June 1997, the directors of the Company exercised certain of their options at a price of HK$1.77 per share, resulting in the issue of 6,500,000 ordinary shares of HK$0.10 each in the Company.

Pursuant to the ordinary resolution passed by a special general meeting on 25 September 1997, each of the issued and unissued existing shares of HK$0.1 each in the capital of the Company were subdivided into two shares of HK$0.05 each, resulting in an addition of 646,580,052 new issued shares.

In addition, the Company repurchased a number of its own shares on the Stock Exchange of Hong Kong Limited as follows:

The directors believe that the repurchases are in the best interests of the Company and its shareholders. Such purchases lead to an enhancement of the net assets and earnings per share of the Company.

Share Option Scheme

On 15 July 1992, the Company adopted a share option scheme under which the directors may, at their discretion, grant to directors and employees of the Group the right to subscribe for shares in the share capital of the Company. The maximum number of shares in respect of which options may be granted under the scheme may not exceed 10% of the issued share capital of the Company. The scheme will remain in force for a period of ten years from the date of its adoption.

On 26 June 1997, the directors of the Company exercised certain of their options at a price of HK$1.77 per share, resulting in the issue of 6,500,000 ordinary shares of HK$0.10 each in the Company.

On 27 June 1997, the Company granted further options to the directors and senior management of the Company (at nil cash consideration) for the right to subscribe for 14,110,000 shares of HK$0.10 each at a price of HK$3.68 per share and on 16 February 1998, all these options were cancelled.

On 17 November 1997, the Company granted further options to the directors of the Company (at nil cash consideration) for the right to subscribe for 30,000,000 shares of HK$0.05 each at a price of HK$0.97 per shares at any time within 5 years.

On 26 February 1998, the Company granted further options to the directors and senior management of the Company (at nil cash consideration) for the right to subscribe for 42,430,000 shares of HK$0.05 each at a price of HK$0.72 per share. The senior management can exercise the options at any time from 1 July 1998 to 27 May 2002 and the directors can exercise the options at only time on or before 27 May 2002.

The movements in share options during the year were as follows:

* Senior management can exercise the options at any time from 1 July 1998 to 27 May 2002 and the directors can exercise the options at any time on or before 27 May 2002.

# The figures have been revised to reflect the share sub-division on 25 September 1997.

The exercise in full of such outstanding share options would, under the present capital structure of the Company, result in the issue of 92,430,000 additional ordinary shares and cash proceeds, before the related share issue expenses, to the Company of HK$77,349,600.

Subsequent to the balance sheet date, on 3 August 1998, 30,000,000 share options granted on 17 November 1997 were cancelled.

The Group's contributed surplus derives from the difference between the nominal value of the share capital issued by the Company and the nominal value of the share capital of the subsidiaries acquired on the date of acquisition.

The Company's contributed surplus represents the difference between the nominal value of the share capital issued by the Company and the then combined net assets of the subsidiaries acquired on the date of acquisition. Under the Companies Act 1981 of Bermuda (as amended), a distribution may be made out of the contributed surplus under certain circumstances.

© Copyright 1996-2024 irasia.com Ltd. All rights reserved.

DISCLAIMER: irasia.com Ltd makes no guarantee as to the accuracy or completeness of any information provided on this website. Under no circumstances shall irasia.com Ltd be liable for damages resulting from the use of the information provided on this website. TRADEMARK & COPYRIGHT: All intellectual property rights subsisting in the contents of this website belong to irasia.com Ltd or have been lawfully licensed to irasia.com Ltd for use on this website. All rights under applicable laws are hereby reserved. Reproduction of this website in whole or in part without the express written permission of irasia.com Ltd is strictly prohibited. TERMS OF USE: Please read the Terms of Use governing the use of our website.