Annual Report 2007 - Notes to the financial statements
Et-china.com International Holdings Limited
Financial statements
for the year ended 31 December 2007
83
37 Subsequent events (continued)
(b) Further acquisition of 3.32% of GZL sub group (continued)
remaining balance settled in cash. On completion of the acquisition, the Group will
have increased its holding in GZL by 3.32% to 53.96%.
(c) Share option scheme to employees
On 22 February 2008, the Group granted 75,000 share options to certain employees
of the subsidiaries of the Group with exercise price reference to 80% of the placing
price ie GBP1.02 and a vesting period of three years. The share options will become
exercisable on 22 February 2011 and expire on 21 February 2018.
(d) Liquidation of Netsboss
A dormant subsidiary Guangzhou Netboss Technology Limited was liquidated on 14
February 2008 and all its assets transferred to another subsidiary of the group.
(e) Proposed cut in the Hong Kong SAR profit tax rate
On 27 February 2008, the Financial Secretary of the Hong Kong SAR Government
announced his annual Budget which proposes a cut in the Profits tax rate (“new
Profits tax rate”) in Hong Kong from 17.5% to 16.5% from the fiscal year 2008-09.
These changes will be reflected in the 2008 financial statements. The enactment of
the new Profits tax rate is not expected to have any financial effect in the amounts
accrued in the balance sheet in respect of current taxation payable. The management
believes the impact of the new Profits tax rate will not have a material effect on the
net assets or profit and loss of the Group.
(f) Issue of convertible bonds
On 22 April 2008, the Company issued unsecured convertible loan notes and obtained
funding of GBP5,500,000. The notes have a zero coupon rate and will be matured in
three years. The notes included a redemption option with the early redemption
amount calculated based on the principal plus an amount that would equal to a yield
of 7%, calculated on a semi annual basis.
