TIDMWALG
5 May 2016
WALCOM GROUP LIMITED
("Walcom" or "the Company")
Final results for the year ended 31 December 2015 and notice of Annual General
Meeting
CHAIRMAN'S STATEMENT
On behalf of the board of directors (the "Board"), I am pleased to present the
final results for the year ended 31 December 2015.
Results
Although the global economy remained subdued in 2015, with a modest recovery
seen across advanced economies, the ongoing slowing of the PRC economy and the
poor performance of the domestic pig farming industry continue to affect the
Company's results. Despite the adverse impact of the poor animal feed market
during the year, and the aggregate impact of increasing production costs and
operating expenses, the Company managed to achieve a profit attributable to the
Company's shareholders of HK$0.34 million (2014: loss of HK$0.30 million) for
the year under review. Turnover (2015: HK$44.2 million; 2014: HK$43.7 million)
and gross profit (2015: HK$26.8 million; 2014: HK$27.2 million) for the year
was maintained at approximately the same levels as 2014. The Company reported a
net profit of HK$0.5 million for the year under review as compared to a net
loss of HK$0.03 million in 2014. EBITDA also increased by 65 per cent. from
HK$1.47 million in 2014 to HK$2.42 million in 2015.
A summary of the results for the period is set out below:
Year ended Year ended Change
31 December 31 December
2015 2014
HK$'000 HK$'000 per cent.
Turnover 44,237 43,648 1.35
Gross profit 26,745 27,164 (1.54)
Operating profit 1,808 860 110.23
EBITDA 2,424 1,471 64.79
Net finance (expense) / income (21) 18 n/a
Profit / (loss) for the year 479 (32) n/a
Profit / (loss) per share attributable to
the shareholders of the Company
- basic (HK cents) 0.49 (0.44) n/a
- diluted (HK cents) 0.49 (0.44) n/a
Net asset value per share attributable to
the shareholders of the Company (HK 25.03 28.32 (11.62)
cents)
Operation and market review
Following a prolonged period of slumping farmgate pig prices being received by
producers during the period between November 2013 and March 2015, China's pig
population decreased significantly as numerous mid-sized pig farms ceased
operations. Farmgate pig prices began to increase in April 2015 as the
resulting reduction in market supply exposed shortages, however, since the pig
population remained low, the demand for the feedstuff remained weak. This had
affected the Company's sales in the PRC, which dropped by 4.5 per cent. to
HK$25.7 million during the year ended December 2015 when compared with the
HK$26.9 million in 2014.
Sales in Thailand increased by 18 per cent. to HK$16.2 million in 2015,
representing 37 per cent. (2014: 31 per cent.) of the Company's total sales.
The economy in Thailand improved following the change of government in May
2014, although it has still not recovered fully. The improvement in sales in
Thailand has resulted from both increased consumption of the Company's products
by existing customers and from new customers who placed orders after achieving
satisfactory trial results on our products.
Sales in Korea decreased by 24 per cent. to HK$1.9 million in 2015 (2014:
HK$2.5 million), representing approximately 4 per cent. (2014: 6 per cent.) of
the Company's total sales. The drop in sales was due to the poor performance of
the Korean market during the first six months of the year, however, sales
started to pick up during the second half of 2015 which was encouraging. The
Directors are pleased that the Company's product is gaining recognition in
Korean, shown by the latter period improvement, and believe that there is high
potential for further growth in the market.
The Group's financial statements were reported in Hong Kong Dollar. During the
period under review, the Hong Kong currency appreciated approximately 6 per
cent. and 10 per cent. against the Renminbi and Thai Baht, respectively. As
most of the Group's sales were made in these two currencies, this had an
adverse exchange impact on the Group's revenue. Similar adverse exchange
effects happened in translating the Group's net assets, including cash and cash
equivalents, in its overseas subsidiaries into the Hong Kong currency. This
resulted in a decrease in the Group's cash balance and net asset value reported
in Hong Kong Dollar as at the year end of 2015.
Recent Developments
For the past couple of years China has been undergoing a process of
transforming its economic structure. A major part of this shift involves the
PRC government's efforts to commercialise domestic high technology inventions.
The Chinese government acknowledges that protection of intellectual properties
will play a significant role in this regard. During the past few years, the
Company has developed and obtained patents in the most advanced technology for
the application of cysteamine, the core substance in our products, in animal
feed products. Notwithstanding this, due to the historical inadequacies that
China has exhibited in properly upholding patent rights, sales of the Company's
products have been weakened by generic third-party products copying Walcom's
technology appearing in the local market and seizing market share without the
relevant licence or intellectual property. As Walcom has established itself as
a provider of trusted products within its specialised segment of the industry
and has built up its brand in the market, the Company's management believes
that there will be high potential for growth in the Company's sales if our
intellectual property and patent rights can be treated more seriously and
better protected by the Chinese government.
Patents
At the end of 2015 the Group held 46 granted patents in respect of:
* its core Cysteamine technology in China, North Korea, New Zealand, Ukraine,
Russia, South Africa, Australia, India, South Korea and Vietnam;
* poultry feed in the UK, North Korea, Taiwan, Russia, China, Australia and
Philippines;
* dairy cow feed in New Zealand, the UK, Europe, Mexico, India, China,
Russia, Australia and Malaysia;
* fish feed in the UK, Indonesia, Russia, China, Thailand, Philippines,
Vietnam and Taiwan; and
* shellfish feed in Europe, Vietnam, Indonesia, Malaysia, Taiwan, Philippines
and China.
Most of the patents for which the Company has applied in recent years have been
granted. The Directors believe that there is wide patent coverage in places
where there are significant demands for the Company's products. Some patents,
which the Directors believe have a reduced chance of commercialisation, were
dropped during the year.
Debt
As at the year end, the Group had a short-term bank loan of HK$2.4 million,
which was used to finance the Group's general working capital. The Directors do
not foresee any need for further bank loans as the Group has adequate working
capital for its daily operations.
Dividend
The Directors do not recommend any dividend payment for the year ended 31
December 2015.
Annual General Meeting
The Annual General Meeting will be held at the offices of the Company's
solicitors, Reeds Smith Richards Butler in Hong Kong at 2:30 pm on Tuesday 14
June 2016.
Outlook
As the PRC government has confirmed that the next few years will see slower
economic growth across much of the market while the Chinese economy undergoes a
structural transformation, the Directors believe that it will be another
difficult year for the Company in 2016. The uncertain monetary policies of the
United States and the major European economies collectively contribute towards
a pessimistic prevailing global economic outlook. Escalating production costs
and operating expenses remain an adverse factor affecting the Company. However,
the Directors are optimistic that the improving results in the Thai market and
the Korean market in the later part of 2015, together with the Company's
continuing marketing efforts, should produce another year of broader
strengthening of the Company's general financial performance in 2016.
I would like to express our sincere thanks to the management team and staff,
professional advisers and shareholders for their continued support and
contributions during the year.
Notice of Annual General Meeting
A notice of annual general meeting convening a meeting at 2.30pm on 14 June
2016 will be posted to shareholders with the Company's report and accounts. The
notice will include a resolution to extend the Company's existing share award
plan, which was adopted on 20 September 2006. The share award plan is currently
effective until 20 September 2016 and would terminate on that date. The
proposal is to extend the plan for a term of 20 years commencing on the date of
the annual general meeting or until such time as the Board considers it
appropriate to terminate the plan (subject to certain conditions). No further
share awards are proposed at this time.
Further enquiries:
Walcom Group Limited +852 2494 0133
Francis Chi (Chief Executive Officer)
Albert Wong (Chief Financial Officer)
Allenby Capital Limited +44 20 3328 5656
Virginia Bull/David Hart
Consolidated statement of profit or loss
For the year ended 31 December 2015
(Expressed in Hong Kong dollars)
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Note 2015 2014
HK$ HK$
Revenue 44,236,805 43,647,716
Cost of sales (17,491,561) (16,483,709)
Gross profit 26,745,244 27,164,007
Other income 3 189,853 506,442
Research and development expenses (1,224,261) (1,227,825)
Selling and distribution expenses (11,847,110) (11,643,034)
General and administrative expenses (12,055,434) (13,940,044)
Profit from operations 1,808,292 859,546
Net finance (expense) / income 4 (21,123) 17,546
Profit before income tax 5 1,787,169 877,092
Income tax expense 6 (1,308,485) (908,987)
Profit / (loss) for the year 478,684 (31,895)
Profit / (loss) attributable to:
Owners of the Company 335,472 (300,602)
Non-controlling interests 143,212 268,707
Profit / (loss) for the year 478,684 (31,895)
Profit / (loss) per share - basic, HK cents 8 0.49 (0.44)
- diluted, HK cents 0.49 (0.44)
Consolidated statement of profit or loss and other comprehensive income
For the year ended 31 December 2015
(Expressed in Hong Kong dollars)
2015 2014
HK$ HK$
Profit / (loss) for the year 478,684 (31,895)
Other comprehensive income
Exchange difference on translation of
financial statements of overseas subsidiaries (2,793,995) (108,677)
Total comprehensive loss for the year (2,315,311) (140,572)
Total comprehensive loss attributable to:
Owners of the Company (2,262,139) (402,390)
Non-controlling interests (53,172) 261,818
Total comprehensive loss for the year (2,315,311) (140,572)
Consolidated balance sheet as at 31 December 2015
(Expressed in Hong Kong dollars)
Note 2015 2014
HK$ HK$
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 1,520,698 1,869,520
Patents 2,079,634 2,385,921
Goodwill - -
3,600,332 4,255,441
CURRENT ASSETS
Inventories 2,247,884 2,343,521
Trade and other receivables 9 7,695,707 7,797,139
Tax recoverable 108,584 157,591
Cash and cash equivalents 10 13,670,351 15,229,576
Restricted cash 10 103,813 113,350
23,826,339 25,641,177
TOTAL ASSETS 27,426,671 29,896,618
EQUITY
Share capital 688,344 688,344
Reserves 16,540,153 18,802,292
Total equity attributable to OWNERs of the
Company 17,228,497 19,490,636
Non-controlling interests 2,086,595 2,139,767
TOTAL EQUITY 19,315,092 21,630,403
CURRENT LIABILITIES
Trade and other payables 4,954,919 5,208,398
Tax payables 769,455 522,641
Bank borrowings 11 2,387,205 2,535,176
8,111,579 8,266,215
TOTAL LIABILITIES 8,111,579 8,266,215
TOTAL EQUITY AND LIABILITIES 27,426,671 29,896,618
NET CURRENT ASSETS 15,714,760 17,374,962
TOTAL ASSETS LESS CURRENT LIABILITIES 19,315,092 21,630,403
Consolidated statement of changes in equity
For the year ended 31 December 2015
(Expressed in Hong Kong dollars)
Share-based Non-
Share Share Merger compensation Exchange Surplus Accumulated controlling Total
capital premium reserve reserve reserve reserve losses Total interests equity
HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$
At 1 January 2014 688,344 95,298,644 23,852,469 1,591,595 2,924,924 2,525,302 (106,988,252) 19,893,026 1,877,949 21,770,975
Comprehensive income
(Loss) / profit for the year - - - - - - (300,602) (300,602) 268,707 (31,895)
Other comprehensive income
Exchange difference on
translation of
financial statements of - - - - (101,788) - - (101,788) (6,889) (108,677)
overseas subsidiaries
Total comprehensive income - - - - (101,788) - (300,602) (402,390) 261,818 (140,572)
for the year
Appropriation to surplus - - - - - 398,212 (398,212) - - -
reserve
At 31 December 2014 688,344 95,298,644 23,852,469 1,591,595 2,823,136 2,923,514 (107,687,066) 19,490,636 2,139,767 21,630,403
At 1 January 2015 688,344 95,298,644 23,852,469 1,591,595 2,823,136 2,923,514 (107,687,066) 19,490,636 2,139,767 21,630,403
Comprehensive income
Profit for the year - - - - - - 335,472 335,472 143,212 478,684
Other comprehensive income
Exchange difference on
translation of
financial statements of - - - - (2,597,611) - - (2,597,611) (196,384) (2,793,995)
overseas subsidiaries
Total comprehensive income - - - - (2,597,611) - 335,472 (2,262,139) (53,172) (2,315,311)
for the year
Lapse of share options - - - (22,826) - - 22,826 - - -
Appropriation to surplus - - - - - 340,180 (340,180) - - -
reserve
At 31 December 2015 688,344 95,298,644 23,852,469 1,568,769 225,525 3,263,694 (107,668,948) 17,228,497 2,086,595 19,315,092
Consolidated statement of cash flows
For the year ended 31 December 2015
(Expressed in Hong Kong dollars)
Note 2015 2014
HK$ HK$
Cash flow from operating activities
Profit before income tax 1,787,169 877,092
Amortisation of patents 5(b) 265,538 270,054
Interest received 4 (150,719) (183,538)
Depreciation 308,255 341,826
Foreign exchange (gain) / loss, net 5(b) (1,547,782) 175
Interest paid 4 171,842 165,992
Loss on disposal of property, plant and equipment 5(b) 1,517 -
Patents written off 5(b) 40,749 -
Operating profit before working capital changes 876,569 1,471,601
Decrease / (increase) in inventories 95,637 (690,644)
Decrease / (increase) in trade and other 101,432 (2,076,985)
receivables
Decrease in trade and other payables (253,479) (432,817)
Net cash generated from / (used in) operations 820,159 (1,728,845)
Corporate income tax paid (1,012,664) (1,324,322)
Interest paid (171,842) (165,992)
Net cash used in operating activities (364,347) (3,219,159)
Cash flow from investing activities
Purchases of property, plant and equipment (91,237) (43,737)
Interest received 150,719 183,538
Net cash generated from investing activities 59,482 139,801
Cash flow from financing activities
Decrease / (increase) in restricted bank balances 9,537 (113,350)
Repayment of bank borrowings (2,535,176) (2,543,882)
Proceeds from new bank borrowings 2,387,205 2,535,176
Net cash used in financing activities (138,434) (122,056)
Net decrease in cash and cash equivalents (443,299) (3,201,414)
Cash and cash equivalents at the beginning of the 15,229,576 18,535,663
year
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Exchange loss on cash and cash equivalents (1,115,926) (104,673)
Cash and cash equivalents at the end of the year 10 13,670,351 15,229,576
Notes to the consolidated financial statements
For the year ended 31 December 2015
(Expressed in Hong Kong dollars)
1 Publication of non-statutory accounts
The financial information set out in this preliminary announcement does not
constitute statutory accounts.
The financial information for the period ended 31 December 2015 has been
extracted from the Company's financial statements to that date which have
received an unqualified auditors' report.
2 Basis of preparation
The consolidated financial statements have been prepared in accordance with
International Financial Reporting Standards ("IFRSs"). These consolidated
financial statements also comply with the applicable disclosure provisions of
the AIM Rules for Companies of the London Stock Exchange. They have been
prepared under the historical cost convention.
The preparation of financial statements in conformity with IFRS requires the
use of certain critical accounting estimates. It also requires management to
exercise its judgement in the process of applying the Group's accounting
policies. The areas involving a higher degree of judgement or complexity, or
areas where assumptions and estimates are significant to the consolidated
financial statements, are disclosed in note 27 of the full financial
statements.
3 Other income
2015 2014
HK$ HK$
Government subsidy 162,172 469,233
Tax refund - 6,298
Sundry income 27,681 30,911
189,853 506,442
Note: During the years ended 31 December 2015 and 2014, the Group received
subsidies from local government bodies in the PRC, which aimed at the
technology development of the Group.
4 Net finance (expense) / income
2015 2014
HK$ HK$
Bank interest income 150,719 183,538
Interest expense on bank loan (171,842) (165,992)
(21,123) 17,546
5 Profit before income tax
Profit before income tax is stated after charging the following items:
-
(a) Staff costs (including directors' emoluments)
2015 2014
HK$ HK$
Salaries, wages and commission 10,718,322 11,051,612
Contributions to defined contribution 899,111 858,474
retirement plans
Other staff benefits 3,549,183 3,339,342
15,166,616 15,249,428
(b) Other items
2015 2014
HK$ HK$
Amortisation of patents 265,538 270,054
Auditor's remuneration 307,474 315,574
Cost of inventories sold 16,623,712 15,502,718
Depreciation 225,969 241,009
Exchange (gains) / losses, net (1,547,782) 175
Loss on disposal of property, plant and equipment 1,517 -
Patents written off 40,749 -
Rental charges under operating leases in respect
of
land and buildings 920,080 856,824
6 Income tax expense
2015 2014
HK$ HK$
Current income tax
- Thailand corporate income tax 128,638 195,757
- Shanghai foreign enterprise income tax 1,179,847 713,230
1,308,485 908,987
(a) Taxation for the Company
No provision for profits tax has been made for the Company as it is exempted
from taxation in the British Virgin Islands.
No deferred taxation has been provided as the Company has no material
unprovided deferred tax assets or liabilities which are expected to be
crystallised in the foreseeable future (2014: HK$Nil).
(b) Taxation for the Group
(i) Taxation on overseas profits has been calculated on the estimated
assessable profit for the year at the rate of taxation prevailing in the
countries in which the Group companies operate. The income tax expense stated
in consolidated statement of profit or loss and other comprehensive income
represented the corporate income tax and foreign enterprise income tax arisen
from the business of subsidiaries operating in Thailand and Shanghai
respectively.
Hong Kong Profits Tax is calculated at 16.5% (2014: 16.5%) of the estimated
assessable profit for the year. However, no provision for Hong Kong profits tax
has been made (2014: HK$Nil) as the Group's assessable profit subject to Hong
Kong profits tax for the year is fully set-off by tax loss brought forward from
last year.
Provision for foreign enterprise income tax ("FEIT") in the People's Republic
of China ("PRC") has been made at 25% (2014: 15%) as Shanghai Walcom Bio-Chem
Co., Ltd. ("Shanghai Walcom"), a wholly owned subsidiary operating in Shanghai,
has assessable profits for the year.
Pursuant to the relevant income tax rules and regulations in the PRC, Shanghai
Walcom is not granted tax relief since year 2015 whereby the applicable income
tax rates were 15% and 25% respectively for the years 2014 and 2015.
Thailand Corporate Income Tax is calculated at 20% (2014: 20%) of the net
profit for the year.
(ii) A reconciliation between the Group's income tax expense and the
accounting profit, at the applicable tax rate, is set out below: -
2015 2014
HK$ HK$
Profit before income tax 1,787,169 877,092
Notional tax calculated on profit before income
tax, calculated
at the rates applicable to profits in the 760,053 68,999
countries concerned
Tax effect of:
Expenses not deductible for tax purpose 907,379 1,098,739
Non-taxable revenue (22) (1,214)
Temporary differences not recognised 664 507
Utilisation of previously unrecognised tax losses (359,589) (258,044)
Income tax charges 1,308,485 908,987
(iii) A deferred tax asset amounting to HK$8,211,086 (2014: HK$8,570,768) in
respect of tax losses of a subsidiary incorporated in Hong Kong of
approximately HK$49,764,000 (2014: HK$51,944,000) has not been recognised in
the financial statements as it is not certain that future taxable profit will
be available against which these losses can be utilised.
7 Dividends
The Company does not recommend the payment of any dividend for the year ended
31 December 2015 (2014: HK$Nil).
8 Profit / (loss) per share
There is no difference between basic and diluted loss per share. The
basic and diluted profit per share for the year ended 31 December 2015 are
calculated by dividing the Group's profit attributable to owners of the Group
of HK$335,472 (2014: Loss of HK$300,602) by the weighted average number of
68,834,388 ordinary shares (2014: 68,834,388 ordinary shares). The computation
of diluted profit per share does not assume the exercise of the Company's
outstanding share options because the exercise price of the options is higher
than the average market price for the years ended 31 December 2015 and 2014.
9 Trade and other receivables
Group
2015 2014
HK$ HK$
Trade receivables 6,859,583 7,079,319
Less: provision for impairment loss (508,758) (508,758)
Trade receivables - net 6,350,825 6,570,561
Deposits and prepayments 976,591 1,037,401
Other receivables 368,291 189,177
7,695,707 7,797,139
All trade and other receivables are expected to be recovered within one year.
a. Impairment of trade receivables
The movement in the provision of impairment for doubtful debts during the year,
including both specific and collective loss components, is as follows:
2015 2014
HK$ HK$
At 1 January 508,758 743,813
Written off - (235,055)
At 31 December 508,758 508,758
At 31 December 2015, the Group's trade receivables of HK$508,758 (2014:
HK$508,758) have been outstanding for a certain period of time. The management
assessed that only a portion of the receivables is expected to be recoverable.
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No further individual provision of impairment for doubtful debts was provided
in the year ended 31 December 2015 (2014: Nil).
The Group does not hold any collateral over these balances.
a. Trade receivables that are not impaired
Majority of the Group's turnover are with credit terms ranging from 30 to 60
days. Ageing analysis of trade receivables that are neither individually nor
collectively considered to be impaired are as follows:
2015 2014
HK$ HK$
Neither past due nor impaired 5,526,045 5,581,041
Less than one month past due 586,059 986,427
1 to 4 months' past due 238,721 3,093
824,780 989,520
6,350,825 6,570,561
Receivables that were neither past due nor impaired relate to a wide range of
customers for whom there was no recent history of default.
Receivables that were past due but not impaired relate to a number of
independent customers that have a good track record with the Group. Based on
past experience, management believes that no impairment allowance is necessary
in respect of these balances as there has not been a significant change in
credit quality and the balances are considered fully recoverable. The Group
does not hold any collateral over these balances.
a. The carrying amounts of trade receivables are denominated in the following
currencies:
Group
2015 2014
Thai Baht THB 9,052,000 THB 10,529,375
Renminbi RMB 3,692,220 RMB 3,229,200
10 Cash and bank balances
Group
2015 2014
HK$ HK$
Cash at bank and on hand 13,774,164 15,342,926
Less: Cash at bank - restricted (103,813) (113,350)
Cash and cash equivalents in the statement 13,670,351 15,229,576
of cash flows
The Company
2015 2014
HK$ HK$
Cash and cash equivalents in the balance 25,512 25,493
sheet
Included in the cash and cash equivalents of the Group, HK$7,254,910 (2014:
HK$9,842,160) were denominated in RMB and kept in PRC. The remittance of these
funds out of the PRC is subject to the foreign exchange control restrictions
imposed by the PRC government.
As at 31 December 2015, HK$103,813 (2014: HK$113,350) denominated in THB in a
saving bank account in Thailand has been pledged to a bank as security under a
forward exchange contract.
Included in cash and cash equivalents in the consolidated balance sheet are the
following amounts denominated in a currency other than the functional currency
of the entity to which they relate:
2015 2014
Renminbi RMB 6,078,683 RMB 7,764,997
United States dollars US$ 294,508 US$ 458,733
British Pound GBGBP 528 GBGBP 484
Thai Baht THB 15,641,790 THB 8,115,079
11 Bank borrowings
At 31 December 2015, the bank borrowings were unsecured and repayable as
follows:
Group
2015 2014
HK$ HK$
Current liabilities
Bank borrowings - unsecured 2,387,205 2,535,176
Total borrowings 2,387,205 2,535,176
1. The maturity of borrowings is as follows:
Group
2015 2014
HK$ HK$
Within 1 year or on demand 2,387,205 2,535,176
1. The effective interest rate per annum for bank borrowings at balance sheet
date is at 5.7% (2014: 7.8%) per annum.
During the 2015 reporting period, the Group fully repaid a bank borrowing of
HK$2,535,176 denominated in RMB, which was unsecured.
On 18 November 2015, an indirectly held subsidiary of the Group situated in the
PRC ("the subsidiary") has obtained a bank borrowing of HK$2,387,205
denominated in RMB with maturity of 1 year. The bank borrowing was unsecured.
12 Share option scheme
A share option scheme (the "scheme") was adopted pursuant to a resolution of
an extraordinary general meeting of the Company held on 20 September 2006 for
the purpose of providing incentives and rewards to any director of any member
of the Group who is in service with any such Company or any employee of any
member of the Group (the "eligible directors and employees").
The maximum number of shares in respect of which options or rights to subscribe
for shares pursuant to the scheme when aggregated with number of shares in
respect of which options or rights to subscribe for shares has been granted in
previous years under the scheme and other share option or share incentive plan
adopted by the Company shall not exceed 10% of the shares issued by the Company
from time to time. An option share shall only be exercisable (a) after one year
from date of grant, (b) before the expiry of the option period, (c) at a time
permitted by the Model Code for Securities Transactions by Directors of Listed
Issuers, and (d) if any performance conditions imposed pursuant to the scheme
rules have been fulfilled or obtained.
As at 31 December 2015, 3,330,000 ordinary shares option has been granted to
directors and employees of the Company under the Share Option Scheme. All share
options granted under the Scheme were still outstanding. No options were
exercised, cancelled or lapsed during the year.
(a) The terms and conditions of the grants that existed during the year are as
follows, hereby all options are settled by physical delivery of shares:
Participant Date of No. of Vesting Exercise Exercise
grant options period period price
outstanding
as at 31
December
2015
Options granted to
directors:
Yong Chian Tan 9 June 500,000 2 years From 9 June 2012 to GBGBP 0.07
2010 commencing from 8 June 2020 (both
9 June 2010 days inclusive)
9 June 500,000 3 years From 9 June 2013 to GBGBP 0.07
2010 commencing from 8 June 2020 (both
9 June 2010 days inclusive)
Albert Siu Fai Wong 9 June 250,000 2 years From 9 June 2012 to GBGBP 0.07
2010 commencing from 8 June 2020 (both
9 June 2010 days inclusive)
9 June 250,000 3 years From 9 June 2013 to GBGBP 0.07
2010 commencing from 8 June 2020 (both
9 June 2010 days inclusive)
Prof. Hong Xun Yang 9 June 750,000 2 years From 9 June 2012 to GBGBP 0.07
2010 commencing from 8 June 2020 (both
9 June 2010 days inclusive)
9 June 750,000 3 years From 9 June 2013 to GBGBP 0.07
2010 commencing from 8 June 2020 (both
9 June 2010 days inclusive)
Options granted to
employees:
Employees of the Group 9 June 165,000 2 years From 9 June 2012 to GBGBP 0.07
2010 commencing from 8 June 2020 (both
9 June 2010 days inclusive)
9 June 165,000 3 years From 9 June 2013 to GBGBP 0.07
2010 commencing from 8 June 2020 (both
9 June 2010 days inclusive)
(b) Fair value of share options
The fair value of the share options granted during the year ended 31 December
2010 have been valued by an independent qualified valuer using Binomial Option
Pricing Model.
13 Share award plan
The Company's share award plan (the "plan") was adopted pursuant to a
resolution of an extraordinary general meeting of the Company held on 20
September 2006 for the purpose of providing incentives or rewards to selected
PRC employees and officers of the Group but excluding officers of the Company
(the "eligible PRC officers").
Prior to the Admission to AIM, 433,163 ordinary shares were transferred to
Walcom China Staff Incentive Limited (the "trustee") by certain of the then
existing shareholders of the Company, to hold pursuant to the terms of the
(MORE TO FOLLOW) Dow Jones Newswires
May 05, 2016 07:57 ET (11:57 GMT)
trust deed applicable to the plan. These shares are held on trust for the
eligible PRC officers.
The plan shall be valid and effective for a term of ten years from the date of
adoption and it shall be subject to the administration of a committee delegated
from time to time by the board and the trustee in accordance with the
provisions of the trust deed and plan rules. There were 70,163 (2014: 70,163)
ordinary shares held by the trustee at 31 December 2015.
14 Commitments
Operating lease commitments
The future aggregate minimum lease rental expenses in respect of the
manufacturing plants and office premises under non-cancellable operating lease
are payable in the following periods:
2015 2014
HK$ HK$
Within one year 2,792,642 2,933,806
In the second to fifth years 1,080,086 3,899,919
inclusive
3,872,728 6,833,725
15 Copies of Report and Accounts
Copies of the Report and Accounts will be sent to shareholders shortly and will
be available from the principal place of business of the Company, Part D,
Mingtai Bldg, No 351 Guo Shai Jing Road, ZJ Hi-tech Park, Shanghai 201203, PRC,
and on the Company's website www.walcomgroup.com.
END
(END) Dow Jones Newswires
May 05, 2016 07:57 ET (11:57 GMT)
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