Key Points of the Announcement

• Special Dividend Declaration: Pico Far East Holdings Limited (Stock Code: 752) has announced a special dividend for the year ended October 31, 2025.
• Shareholder Election Opportunity: Shareholders may elect to receive their special dividend in the form of new shares (HK\$0.05 each) instead of cash, or opt for a combination of both.
• Record Date: Only shareholders registered on April 10, 2026 are eligible to make this election.
• Non-Transferable Rights: The right to receive new shares in lieu of cash is strictly non-transferable. If you are not the named shareholder as of the record date, any submitted election form will be void.
• Election Deadline: Election forms must be submitted to the Hong Kong branch share registrar (Union Registrars Limited, Suites 3301-04, 33/F., Two Chinachem Exchange Square, 338 King’s Road, North Point, Hong Kong) by 4:00 PM on Wednesday, May 6, 2026.
• Default Option: If shareholders do not submit the election form by the deadline, the special dividend will be paid entirely in cash.
• Instructions for Partial Election: If electing to receive new shares for part of your holding, specify the number of shares in Box C on the form. If no number is specified or the number exceeds your eligible shares, the default will be to receive new shares for all your registered shares.
• Form Completion Requirements: All joint shareholders must sign. Corporate shareholders must have the form signed by an authorized person stating their office. Signatures must match specimen signatures filed with Union Registrars Limited.
• Distribution Method: Share certificates and/or dividend warrants will be sent by ordinary mail to the address on record, at the shareholder’s risk.
• No Receipt Issued: The company will not issue receipts for submitted election forms.
• No Special Instructions Accepted: Any additional instructions written on the form will not be processed.
• Binding Decisions: The company’s decisions regarding the scrip dividend arrangement are conclusive and binding.

Potential Price Sensitive Information

• Dividend Election Flexibility: The ability for shareholders to elect to receive dividends in new shares instead of cash is a potentially price-sensitive event. Scrip dividend arrangements can impact the share price by increasing the number of shares in circulation, potentially diluting existing holdings but also signaling confidence in the company’s future.
• Record Date and Deadline: The cutoff dates for eligibility and election submission are crucial. Investors who acquire shares after the record date will not be eligible for the special dividend, which may influence trading activity leading up to April 10, 2026.
• Impact on Cash Flow: The option to receive shares instead of cash may affect the company’s cash outflow and retained earnings, which can be seen as a positive for future growth and capital management.
• Shareholder Actions Required: Shareholders must actively elect to receive new shares or they will default to cash, which could influence short-term liquidity preferences and share price dynamics around the dividend payment.

Detailed Instructions for Shareholders

1. If you wish to receive your special dividend wholly in cash, do not complete the election form.
2. If you wish to receive all or part of your special dividend in new shares, complete the election form as instructed and submit it by the deadline.
3. For partial elections, specify the exact number of shares in Box C. Failure to do so or specifying an excess will result in the election being applied to all your registered shares.
4. Ensure all joint shareholders sign. For corporate shareholders, an authorized officer must sign and state their position.
5. Submit the form to Union Registrars Limited by the specified deadline. No acknowledgment of receipt will be given.
6. Be aware that the distribution of shares and/or warrants by ordinary mail is at your own risk; ensure your address is accurate and up-to-date.

Investor Considerations

• The scrip dividend arrangement may lead to dilution of shareholdings, but it also reflects the company’s confidence in investing retained earnings into growth.
• Important dates (record date, submission deadline) could impact share price movements as investors adjust positions to qualify for the dividend.
• Shareholders should carefully consider their liquidity needs and tax implications before electing the scrip option.
• The company’s binding authority on disputes over the dividend arrangement means shareholders must follow instructions precisely.

Disclaimer: This article is intended for information purposes only and does not constitute investment advice. Investors should consult their own financial advisers before making any investment decisions. The company’s announcement contains important dates and instructions which may impact eligibility and dividend arrangements. Price-sensitive information has been highlighted, but market outcomes may vary. All information is based on the official election form and accompanying circular as issued by Pico Far East Holdings Limited.

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