Annual Report 2023

250 2023 Annual Report Transport International Holdings Limited NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 22 Equity-settled share-based transactions (continued) (a) The terms and conditions of the grants are as follows: (continued) Vesting condition (iii): Percentage of options granted On or after 31 March 2024 50% On or after 31 March 2025 100% Vesting condition (iv): Percentage of options granted On or after 31 March 2024 30% On or after 31 March 2025 60% On or after 31 March 2026 100% (b) The number and weighted average exercise prices of share options are as follows: 2023 2022 Weighted average exercise price Number of share options ’000 Weighted average exercise price Number of share options ’000 Outstanding at the beginning of the year $15.32 10,425 $15.32 11,725 Granted during the year $10.60 15,970 – – Forfeited during the year $12.04 (1,960) $15.32 (1,300) Outstanding at the end of the year $12.50 24,435 $15.32 10,425 Exercisable at the end of the year $15.32 9,825 $15.32 8,685 The options outstanding at 31 December 2023 had a weighted average exercise price of $12.50 (2022: $15.32) and weighted average remaining contractual lives of 3.30 years (2022: 2.88 years). (c) Fair value of share options and assumptions The fair value of services received in return for share options granted is measured by reference to the fair value of share options granted. The estimate of the fair value of the share options granted is measured based on the binomial model. The contractual life of the share option is used as an input into this model. Expectations of early exercise are incorporated into the binomial model.