NOTES TO
FINANCIAL STATEMENTS
December 31, 2015
119
CITIC ENVIROTECH LTD.
Annual
Report
2015
25 SHARE CAPITAL (cont’d)
As at March 31, 2015, employees held options over 70,950,000 ordinary shares (of which 52,696,000
are unvested) in aggregate. The number of options and their expiry dates are as follows:
Number of options
Expiring on:
400,000
March 1, 2020
3,000,000
July 20, 2020
49,550,000
February 15, 2023
12,000,000
March 28, 2023
6,000,000
July 25, 2024
70,950,000
Share options granted under the employee share option scheme carry no rights to dividends and no
voting rights. Further details of the employee share option scheme are contained in Note 29 to the
financial statements.
26 Perpetual Capital Securities
On November 27, 2015, the Company issued senior perpetual securities (the “Series 001 Perpetual
Securities) with principal amount of US$175,000,000 bearing distributions at a rate of 5.45% under
the US$750,000,000 Multicurrency Perpetual Securities Issuance Programme. A total of $242,055,000
(equivalent to US$171,687,000), net of issuance costs were recognised in equity. The rate is subject
to reset every three years and a one-time step-up from and including the first reset date, being
November 27, 2018 (the “First Reset Date”).
The perpetual capital securities bears distributions which are payable semi-annually. Subject to the
terms and conditions of the perpetual capital securities, the Company may elect to defer making
distributions on the perpetual capital securities, and is not subject to any limits as to the number of
times a distribution can be deferred.
As a result, the Company is considered to have no contractual obligations to repay its principal or to
pay any distributions and the perpetual capital securities do not meet the definition for classification
as a financial liability under FRS 32
Financial Instruments: Disclosure and Presentation
. The whole
instrument is presented within equity, and distributions are treated as dividends.
These perpetual capital securities were issued for the Company’s general corporate purposes as well
as to finance certain water treatment projects.
27 GENERAL RESERVE
In accordance with the relevant laws and regulations of PRC, companies in PRC are required to
set aside a general reserve fund by way of appropriation from their statutory net profit reported
in PRC statutory financial statements at a rate of 10% for each year. Subject to approval from PRC
authorities, the fund may be used to offset accumulated losses or increase the registered capital
of the subsidiary. The appropriation is required until the statutory reserve reaches 50% of the
subsidiary’s registered capital. This statutory reserve is not available for dividend distribution to the
shareholders.
