Ni Hsin Berhad Annual Report 2018

21. Employee benefits On 13 June 2016, the Company granted share options to qualified Directors and employees to purchase shares in the Company under the Employees Share Option Scheme (“ESOS”) approved by the shareholders of the Company on 18 May 2016. In accordance with these programmes, the options are vested at the grant date and the holders are entitled to purchase shares at the exercise price. The number and exercise prices of share options are as follows: Number of options ’000 Outstanding at 1 January 2018 32,500 Cancelled during the year (32,500) Outstanding at 31 December 2018 - The fair value of services received in return for share options granted is based on the fair value of share options granted, measured using binomial option pricing model, with the following inputs: Options fair value RM0.1549 Share price at grant date RM0.2850 Volatility 58.56% Risk free rate 3.48% The options outstanding as at 31 December 2017 have an exercise price of RM0.29 and expiry on 12 June 2021. In January 2018, the ESOS was terminated after the Company has obtained the written consent of all the grantees under the ESOS who have yet to exercise their options in prior year and shareholders’ approval at the Extraordinary General Meeting to terminate the ESOS plan. 22. Operating segments The Group has three main reportable segments, as described below, which are the Group’s strategic business units. The strategic business units offer different products and services, and are managed separately because they require different technology and marketing strategies. For each of the strategic business units, the Chief Operating Decision Maker (“CODM”) (i.e. the Managing Director) reviews internal management reports at least on a quarterly basis. The following summary describes the operations in each of the Group’s main reportable segments: (i) Cookware Design, manufacture and sale of stainless steel kitchenware and cookware (ii) Convex mirrors Manufacture and sale of stainless steel convex mirrors (iii) Clad metals Research, development and manufacture of clad metals Performance is measured based on segment profit before tax, interest, depreciation and amortisation, as included in the internal management reports that are reviewed by the CODM. Segment profit is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries. Segment assets The total of segment assets is measured based on all assets (including goodwill) of a segment, as included in the internal management reports that are reviewed by the CODM. Segment total assets is used to measure the return on assets of each segment. Notes to the financial statements (continued) Annual Report 2018 81