Sun Art Retail Group Limited - TodayIR.com

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
4 PROFIT BEFORE TAXATION (CONTINUED)
(b)
Staff costs (continued)
(ii)
Contributions to Employee Trust Benefit Schemes
The Group has established an Employee Trust Benefit Scheme for employees of its
subsidiary, Concord Investment (China) Co., Ltd. (“CIC”) and its subsidiaries (“the RT-
Mart Scheme”) and an Employee Trust Benefit Scheme for employees of its subsidiary,
Auchan (China) Hong Kong Limited (“ACHK”) and its subsidiaries (“the Auchan
Scheme”). Under each scheme, an annual profit sharing contribution, calculated based
on the consolidated results of CIC for the RT-Mart Scheme, and on the consolidated
results of ACHK for the Auchan Scheme, and the number of eligible employees, is
payable to a trust, the beneficial interests in which are allocated to participating eligible
employees in accordance with the relevant Employee Trust Benefit Scheme rules. The
trusts are administered by independent trustees and invest the amounts received in
either cash and cash equivalents (“cash-like assets”) or equity of CIC in the case
of the RT-Mart Scheme, or cash-like assets or equity of ACHK’s subsidiary, Auchan
(China) Investment Co., Ltd. (“ACI”) in the case of the Auchan Scheme, respectively.
The annual profit sharing contributions are accrued in the year in which the associated
services are rendered by the eligible employees.
In addition to the annual profit sharing contributions made by the Group, subject to
certain conditions, eligible employees are entitled to acquire additional beneficial
interests in the relevant Employee Trust Benefit Scheme trust using their own funds.
Any excess of the capital injected by the trusts to CIC or ACI over the attributable share
of their consolidated net assets acquired is credited to capital reserve within equity.
(iii)
Share-based payments
On 7 December 2011, the Company granted a total of 296,790 share appreciation
rights to a director and a member of key management whereby, provided they meet
certain vesting criteria, the individuals will be entitled to a future cash payment,
calculated based on the increase (capped at 3.5 times) in the Company’s share price
after a six year period from its opening share price on 6 December 2011 of HKD10.52.
Based on the fair value of HKD3.08 per right as at 31 December 2012, determined
using the Monte Carlo Method, RMB0.1 million has been recognised as a staff cost
expense in the Group’s statement of comprehensive income for the year ended 31
December 2012.
ACHK granted certain rights to a number of senior management of ACHK whereby,
provided they meet certain vesting criteria, the individuals will be entitled to a future
cash payment, calculated based on the increase in the fair value of ACHK. Based on
the fair value of ACHK valued by an independent valuer and estimated by the directors,
RMB45 million has been recognised as a staff cost expense in the Group’s statement
of comprehensive income for the year ended 31 December 2012.
In addition to the above, share-based payments includes RMB6 million in respect of
stock options and shares in the Group’s joint controlling shareholder, Groupe Auchan
S.A., granted by Groupe Auchan S.A. to certain employees of the Group in respect
of their service to the Group. Details of share options and shares are set out in the
Report of Directors.
Sun Art Retail Group Limited
Annual Report 2012
77