v2.4.0.6
SHARE OPTION AND RESTRICTED SHARE SCHEME (Tables)
12 Months Ended
Dec. 31, 2011
Fair Values of Restricted Shares Granted to Employees

The fair values of restricted shares granted to employees were estimated using the following weighted average assumptions:

 

     Granted in 2010     Granted in 2011  

Risk-free interest rates

     0.46%-2.61     0.14%-0.93

Expected dividend yield

     5     5

Fair value of restricted shares

    

 

RM44.04 to

RMB49.27

  

  

   

 

RMB17.39 to

RMB22.62

  

  

Fair Values of Stock Options Granted to Employees were Estimated Using Following Weighted Average Assumptions

The fair values of stock options granted to employees were estimated using the following weighted average assumptions:

 

     Granted in 2009     Granted in 2011  

Suboptimal exercise factor

     1.5        1.5   

Risk-free interest rates

     2.94     3.42

Expected volatility

     60.40        50.98   

Expected dividend yield

     2.5     2.5

Fair value of share option

    

 

RMB17.35 to

RMB22.37

  

  

   

 

RMB15.75 to

RMB19.85

  

  

Estimated forfeiture rate

     2% per annum        2% per annum   
Company's Restricted Shares Activity under 2007 Stock Incentive Scheme

The following table summarized the Company’s restricted shares activity under 2007 Stock Incentive Scheme:

 

     Number of
restricted shares
    Weighted average
grant date
fair value (USD)
 

Outstanding, December 31, 2010 and January 1, 2011

     777,000        5,440,896   

Granted

     12,670,000        40,299,824   

Exercised

     (155,400     (1,149,096

Forfeited/Cancelled

     (136,000     (945,200

Outstanding, December 31, 2011

     13,155,600        43,646,424   
  

 

 

   

 

 

 

Vested and expected to vest as of December 31, 2011

     12,382,299        41,166,971   
  

 

 

   

 

 

 
Company's Share Option Activity

The following table summarizes the Company’s share option activity as of and for the year ended December 31, 2010 and 2011.

 

     Number of
options
    Weighted
average
exercise
price(USD)
     Weighted
average
remaining
contractual life
(Years)
     Aggregate
intrinsic
value (USD)
 

Outstanding, December 31, 2010 and January 1, 2011

     11,385,629        2.80         2.95         49,161,052   

Granted

     60,000        6.71         —           —     

Exercised

     (7,993,119     2.50         —           —     

Forfeited/Cancelled

     (260,560     4.92         —           —     
  

 

 

   

 

 

    

 

 

    

 

 

 

Outstanding, December 31, 2011

     3,191,950        2.69         2.61         4,446.298   
  

 

 

   

 

 

    

 

 

    

 

 

 

Vested and expected to vest at December 31, 2011

     3,128,111        2.69         2.61         4,357.372   

Exercisable at December 31, 2011

     2,187,850        2.68         2.36         3,070.057   
  

 

 

   

 

 

    

 

 

    

 

 

 
Stock Option
 
Components of Share-based Compensation Expense in Absolute Amount and as Percentage of Net Revenue

The following table sets forth the components of share-based compensation expense for share options issued to employees from the Company’s share option scheme both in absolute amount and as a percentage of net revenue for the year indicated.

 

     For the year ended December 31  
     2009      2010      2011         
     (RMB)      (RMB)      (RMB)      (US$)      %  

Net revenue

     1,303,835,447         1,332,815,451         1,792,217,309         284,754,652         100
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cost of services

     1,245,984         612,529         562,225         89,329         0.03

Research and product development expenses

     9,573,183         6,664,626         2,269,898         360,650         0.13

Sales and marketing expenses

     1,139,408         60,891         199,684         31,727         0.01

General and administrative expenses

     18,616,815         14,532,565         7,901,262         1,255,384         0.44
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total share-based compensation included in cost of services and total operating expenses

     30,575,390         21,870,612         10,933,069         1,737,090         0.61
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Restricted Stock
 
Components of Share-based Compensation Expense in Absolute Amount and as Percentage of Net Revenue

The following table sets forth the components of share-based compensation expense for restricted shares issued to employees from the Company’s share option scheme both in absolute amount and as a percentage of net revenue for the year indicated.

 

     For the year ended December 31  
     2009      2010      2011         
     (RMB)      (RMB)      (RMB)      (US$)      %  

Net revenue

     1,303,835,447         1,332,815,451         1,792,217,309         284,754,652         100
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cost of services

     —           1,180,570         1,797,223         285,550         0.10

Research and product development expenses

     —           7,994,861         11,771,687         1,870,333         0.66

Sales and marketing expenses

     —           368,900         518,445         82,373         0.03

General and administrative expenses

     —           1,874,274         4,314,757         685,546         0.24
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total share-based compensation included in cost of services and total operating expenses

     —           11,418,604         18,402,112         2,923,802         1.03