Annual Report 2021

212 Transport International Holdings Limited 2021 Annual Report NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 20 Employee retirement benefits (continued) (f) Significant actuarial assumptions and sensitivity analysis are as follows: 2021 2020 Discount rate – Monthly Rated Employees Scheme 1.4% 0.7% – Daily Rated Employees Scheme 1.2% 0.4% Future salary increases 4.0% 4.0% The below analysis shows how the defined benefit obligation would have increased/(decreased) as a result of a 0.25 percentage point change in the significant actuarial assumptions: 2021 2020 Increase in 0.25 percentage point Decrease in 0.25 percentage point Increase in 0.25 percentage point Decrease in 0.25 percentage point $’000 $’000 $’000 $’000 Discount rate (22,055) 21,985 (28,977) 29,155 Future salary increases 19,349 (19,611) 25,559 (25,650) The above sensitivity analysis is based on the assumption that changes in actuarial assumptions are not correlated and therefore it does not take into account the correlations between the actuarial assumptions. 21 Equity-settled share-based transactions The Company has a share option scheme which was adopted on 26 May 2016 whereby the Directors of the Company are authorised, at their discretion, to invite employees of the Group, including Directors of any company in the Group, to take up options at a consideration of $1 to subscribe for shares of the Company. The period within which the options must be exercised will be specified by the Company at the date of grant. This period must expire no later than 10 years from the relevant date of grant. The Directors of the Company may also provide restrictions on the exercise of an option during the period an option may be exercised. Each option gives the holder the right to subscribe for one ordinary share in the Company and is settled gross in shares. (a) The terms and conditions of the grants are as follows: Number of instruments Vesting ’000 conditions Contractual life of options Options granted to Directors: – on 31 October 2016 860 i five years from the date of grant – on 19 November 2020 6,075 ii five years from the date of grant Options granted to employees: – on 31 October 2016 4,700 i five years from the date of grant – on 19 November 2020 7,850 iii five years from the date of grant Total share options granted 19,485