Dagang NeXchange Berhad Annual Report 2019

FINANCIAL STATEMENTS annual report 2019 153 16. CAPITAL AND RESERVES (CONTINUED) Share option reserve (continued) The salient features of the above ESOS are, inter alia, as follows: i) The ESOS shall be in force for a period of five (5) years from the implementation date of 25 August 2016. The unexercised ESOS will become null and void after the date of expiry on 24 August 2021. ii) Subject to compliance with the Listing Requirements, guidelines or directives issued by Bursa Malaysia Securities Berhad and/or any of the relevant authorities, the Company may at any time during the duration of the ESOS terminate the ESOS and shall immediately announce to Bursa Malaysia Securities Berhad the effective date, number of ESOS and reasons for the termination. The options offered to take up unissued ordinary shares and the exercise price is as follows: Number of options over ordinary shares Date of offer Exercise price At At 1.1.2019 Exercised Forfeited 31.12.2019 14 September 2016 RM0.245 13,522,614 (55,000) (2,550,000) 10,917,614 The fair values of the share options granted were estimated using the Binomial Option pricing model, taking into account the terms and conditions upon which the options were granted. The fair values of the share options measured at grant date and the assumptions used are as follows: Fair value of share options at the grant date RM0.063 Weighted average ordinary share price RM0.275 Exercise price of share option RM0.245 Expected volatility 39.85% Expected life 5 years Risk free rate 3.25% Expected dividend yield 11.13% Translation reserve The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations and the Group’s share of associates’ foreign currency translation differences whose functional currencies are different from the Group’s presentation currency. Fair value reserve The fair value reserve comprises the cumulative net change in the fair value of equity instruments designated at fair value through other comprehensive income until the assets are derecognised or impaired. 17. NON-CONTROLLING SHAREHOLDERS’ INTERESTS This consists of the non-controlling shareholders’ proportion of share capital and reserves in subsidiaries.