number of share
shares capital
HK$’000
ordinary shares of HK$0.00125 each: Authorised:
At 1 January 2019 (Audited), 31 December 2019 (Audited) and
30 June 2020 (Unaudited) 160,000,000,000 200,000
Issued and fully paid:
At 1 January 2019 (Audited), 31 December 2019 (Audited) and
30 June 2020 (Unaudited) 5,042,139,374 6,303
21. sHARe oPtIons
The Company approved and adopted a share option scheme (the “Scheme”) for eligible participant which includes any full-time or part-time employees, potential employees, executives or officers (including executive, non-executive and independent non-executive directors) of the Company or any of its subsidiaries and any suppliers, customers, consultants, agents and advisers who, in the sole opinion of the board of directors, will contribute or has contributed to the Company and/or any of its subsidiaries.
Details of specific categories of options are as follows:
option type Date of grant Vesting period exercisable period exercise price
2015A 16.6.2015 16.6.2015 - 15.6.2019 16.6.2016 - 15.6.2020 HK$0.784 2015B 24.7.2015 (note) 16.6.2015 - 15.6.2019 16.6.2016 - 15.6.2020 HK$0.784 2016 12.9.2016 12.9.2016 - 11.9.2021 12.9.2017 - 11.9.2022 HK$0.400
Note: Share options subject to approval of independent shareholders was proposed and granted by board of directors on 16 June 2015. The approval was subsequently obtained on 24 July 2015 which was the date of grant as defined in accordance with HKFRS 2.
21. sHARe oPtIons (ContInUeD)
A summary of the movements of the number of share options under the Scheme during the period/year is as follows:
Forfeited/
outstanding at Forfeited outstanding at Lapsed outstanding at
type of 1 January during 31 December during 30 June
participant option type 2019 the year 2019 the period 2020
(Audited) (Audited) (Audited) (Unaudited) (Unaudited)
Mr. Wu 2015B 74,070,000 — 74,070,000 (74,070,000) — Ms. Jiang 2015B 74,070,000 — 74,070,000 (74,070,000) — Mr. Wu 2016 38,000,000 — 38,000,000 — 38,000,000 Ms. Jiang 2016 38,000,000 — 38,000,000 — 38,000,000 Ms. Wu Ansheng 2016 8,000,000 — 8,000,000 — 8,000,000 (note) Employees 2015A 3,800,000 (800,000) 3,000,000 (3,000,000) — Employees 2016 23,500,000 (3,500,000) 20,000,000 (6,200,000) 13,800,000 Consultants 2015A 4,000,000 — 4,000,000 (4,000,000) — 263,440,000 (4,300,000) 259,140,000 (161,340,000) 97,800,000
Exercisable at the end
of year/period 177,055,000 234,640,000 73,350,000
Weighted average
exercise price HK$0.627 HK$0.471 HK$0.630 HK$0.769 HK$0.400
Note: Ms. Wu Ansheng is the General Manager and Sales Director of a subsidiary of the Group and a sister of Mr. Wu.
In the opinion of the directors, the fair value of the services received from consultants cannot be estimated reliably, the equity-settled share-based payment transactions with consultants are measured at the fair value of the equity instruments granted.
21. sHARe oPtIons (ContInUeD)
The Group recognised a share-based payment expense in the condensed consolidated statement of profit or loss and other comprehensive income as follows:
six months ended 30 June
2020 2019
(Unaudited) (Unaudited)
HK$’000 HK$’000
Directors 238 1,217
Employees and consultants 395 1,664
633 2,881
22. LeAse CoMMItMents
At the end of the reporting period, the lease commitments for short-term leases are as follows:
30 June 31 December
2020 2019
(Unaudited) (Audited)
HK$’000 HK$’000
Within one year 266 992
As at 30 June 2020 and 31 December 2019, the Group leases a number of properties with a lease period of 12 months, which are qualified to be accounted for under short-term lease exemption under HKFRS 16.
23. CAPItAL CoMMItMents
At the end of the reporting period, capital commitments outstanding but not provided for in the condensed consolidated interim financial statements are as follows:
30 June 31 December 2020 2019 (Unaudited) (Audited) HK$’000 HK$’000 Contracted for: Acquisition of an associate — 2,273
24. FAIR VALUe MeAsUReMent oF FInAnCIAL InstRUMents Financial assets and liabilities measured at fair value
The following table presents the fair value of the Group’s financial instruments measured at the end of the reporting period on a recurring basis, categorised into the three-level fair value hierarchy as defined in HKFRS 13 “Fair Value Measurement”. The level into which a fair value measurement is classified is determined with reference to the observability and significance of the inputs used in the valuation techniques as follows:
• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
• Level 2 inputs are inputs, other than quoted prices included within level 1, that are observable for the asset or liability, either directly or indirectly; and
• Level 3 inputs are unobservable inputs for the asset or liability.
At 30 June 2020 (Unaudited)
Level 1 Level 2 Level 3 total
HK$’000 HK$’000 HK$’000 HK$’000 Recurring fair value measurement
Financial assets at FVTPL:
Convertible promissory note — — 29,858 29,858
Unlisted equity investment — — 235,595 235,595
Convertible bonds receivable — — 48,342 48,342
— — 313,795 313,795
At 31 December 2019 (Audited)
Level 1 Level 2 Level 3 Total HK$’000 HK$’000 HK$’000 HK$’000 Recurring fair value measurement
Financial assets at FVTPL:
Convertible promissory note — — 28,086 28,086 Unlisted equity investment — — 229,879 229,879 Unlisted managed fund — 28,143 — 28,143 Convertible bonds receivable — — 46,323 46,323 — 28,143 304,288 332,431
24. FAIR VALUe MeAsUReMent oF FInAnCIAL InstRUMents (ContInUeD) Financial assets and liabilities measured at fair value (Continued)
During the six months ended 30 June 2020 and the year ended 31 December 2019, there were no transfers between Level 1 and Level 2, or transfers into or out of Level 3. The Group’s policy is to recognise transfers between levels of fair value hierarchy as at the end of the reporting period in which they occur.
The fair value of unlisted managed fund in Level 2 has been determined by reference to the reported net asset value quoted by the broker at the end of the reporting period. The movements during the period in the balance of Level 2 fair value measurements are disclosed in note 12(b).
Information about Level 3 fair value measurements
The valuation techniques and significant unobservable inputs used to determine the fair value of financial assets at FVTPL are as follows:
significant sensitivity relationship
Valuation unobservable Financial assets of unobservable
techniques inputs at FVtPL Range inputs to fair value
2020 2019
(Unaudited) (Audited)
Discounted cash Expected volatility Convertible 68.5% 50.0% Increase/(decrease) in flow model and promissory expected volatility binomial option note would result in pricing model increase/(decrease)
Convertible 64.7% 51.5% in fair value bonds
receivable
Discount rate Convertible 13.8% 14.0% Increase/(decrease) promissory note in discount rate
would result in Convertible bonds 11.9% 8.9% (decrease)/increase receivable in fair value
24. FAIR VALUe MeAsUReMent oF FInAnCIAL InstRUMents (ContInUeD) Information about Level 3 fair value measurements (Continued)
significant sensitivity relationship
Valuation unobservable Financial assets of unobservable
techniques inputs at FVtPL Range inputs to fair value
2020 2019
(Unaudited) (Audited)
Discounted cash Expected volatility Unlisted equity 70.1% 68.2% Increase/(decrease) in flow model and investment expected volatility binomial interest would result in rate model increase/(decrease)
in fair value Discount rate Unlisted equity 11.6% 11.1% Increase/(decrease)
investment in discount rate would result in (decrease)/increase
in fair value
The movements during the period in the balance of Level 3 fair value measurements are disclosed in notes 11, 12 and 14 respectively.
Financial assets and liabilities not reported at fair value
The directors of the Company consider that the carrying amounts of financial assets and financial liabilities carried at amortised cost in the condensed consolidated interim financial statements approximate their fair values as at 30 June 2020 and 31 December 2019.
25. ReLAteD PARtIes tRAnsACtIons
Other than the transactions and balances with related parties as disclosed in the respective notes, during the period, the Group entered into the following transactions with the following related parties:
six months ended 30 June
2020 2019
(Unaudited) (Unaudited)
HK$’000 HK$’000
nature of transactions
Lease payments paid to Kaisa Group Holdings Ltd. 284 273 Management fee paid to Kaisa Financial