Events 2005 - ChartNexus

148
Notes to the Financial Statements 31 December 2005
27. EARNINGS PER ORDINARY SHARE (Continued)
Diluted earnings per ordinary share:
The diluted earnings per ordinary share for the financial year has been calculated based on the consolidated profit after taxation
and divided by the weighted average number of ordinary shares which would be issued on conversion of all dilutive potential
ordinary shares into ordinary shares.
The Company has two categories of dilutive potential ordinary share which consist of share options granted to employees and
executive directors and warrants.
In the diluted earnings per share calculation, the warrants are assumed to have been converted into ordinary share. No adjustment
is made to net profit for the financial year for the warrant calculation.
In respect of options granted, a calculation is done to determine the number of shares that could have been acquired at market
price (determined as the average annual share price of the Company’s shares) based on the monetary value of the subscription
right attached to outstanding share options. No adjustment is made to net profit for the financial year for the share options
calculation.
The weighted average number of ordinary shares outstanding plus the weighted average number of ordinary shares which would
be issued on conversion of all dilutive potential ordinary shares into ordinary shares is calculated as follows:
2005 2004
’000 ’000
Weighted average number of ordinary shares outstanding 348,781 322,868
Assumed exercise of warrants in 1 January * – 6,022
Assumed exercise of share options on 1 January 474 3,084
Weighted average number of ordinary shares for diluted
earnings per ordinary share 349,255 331,974
Diluted earnings per ordinary shares (sen) 44.51 42.55
* The warrants expired on 5 September 2005.