HK&S HOTELS (00201) and SHUNHO PROPERTY (00219) have entered into a share buyback agreement.

HK&S HOTELS (00201), SHUNHO PROPERTY (00219) and SHUNHO HOLDINGS (00253) jointly announced on May 10, 2026, after trading hours, that the seller, Mercury Fast Limited (a wholly-owned subsidiary of HK&S HOTELS), has entered into a share repurchase agreement with the buyer, SHUNHO PROPERTY. According to the agreement, the seller agrees to sell and the buyer agrees to repurchase 68.1395 million shares of SHUNHO PROPERTY, representing 11.75% of the total issued shares of SHUNHO PROPERTY, for a cash consideration of HK$ 48.1065 million. The completion of the share repurchase is subject to the satisfaction and continuing satisfaction of certain conditions (or waiver, if applicable). After the share repurchase is completed, the shares sold will be transferred to the buyer and held as treasury shares of SHUNHO PROPERTY according to the company's articles. The proportion of shareholding of all other SHUNHO PROPERTY shareholders in the issued shares of SHUNHO PROPERTY (excluding treasury shares, if any) will increase proportionally. In order to provide HK&S HOTELS shareholders with the opportunity to cash out their indirect investment in SHUNHO PROPERTY shares, HK&S HOTELS proposes to distribute the proceeds from the share repurchase (after deducting the expenses incurred) as a special cash dividend, to be proportionally distributed to all HK&S HOTELS shareholders. Therefore, HK&S HOTELS intends to propose the approval of the special cash dividend by the HK&S HOTELS shareholders, subject to approval at the HK&S HOTELS Extraordinary General Meeting. In addition, the distribution of the special cash dividend is conditional upon the completion of the share repurchase.