Securities code: 688088 Securities abbreviation: Arcsoft Technology Announcement No.: Pro 2025-002

ArcSoft Technology Co., Ltd

Announcement on the postponement of the fundraising project

The board of directors and all directors of the company guarantee that there are no false records, misleading statements or material omissions in the content of this announcement, and assume legal responsibility for the authenticity, accuracy and completeness of its content in accordance with the law.

ArcSoft Technology Co., Ltd. (hereinafter referred to as the Company) held its third meeting on December 31, 2024

The second meeting of the board of directors deliberated and passed the "Proposal on the Extension of Fundraising Projects" with 9 votes in favor, 0 votes against and 0 abstentions, and agreed that the company will postpone the date when the initial public offering raised funds investment project AI vision solution industrialization project in the field of IoT (hereinafter referred to as the fundraising project) reaches the scheduled usable state. The board of supervisors of the company issued a clear agreement opinion, and the sponsors Huatai United Securities Co., Ltd. and China Securities Co., Ltd. issued verification opinions. This matter is within the scope of the approval authority of the board of directors and does not need to be submitted to the general meeting of shareholders for deliberation. The specific situation is hereby announced as follows:

First, the basic situation of the funds raised

According to the China Securities Regulatory Commission Zheng Jian Xu Xu [2019] No. 1180 "Reply on Approval of the Registration of the Initial Public Offering of Shares of Arcsoft Technology Co., Ltd.", the Company was approved to issue 46,000,000 RMB ordinary shares to the public on the Shanghai Stock Exchange, with a par value of RMB 1.00 per share and an issue price of RMB 28.88 per share, raising a total of RMB 1,328,480,000.00. Huatai United Securities Co., Ltd. and China Securities Co., Ltd., the joint lead underwriters of the Company, will remit the initial amount of RMB 1,275,480,000.00 to the Company's special account for raising funds, and the initial amount of raised funds will be RMB 1,275,480,000.00 after deducting other issuance expenses of RMB 20,929,165.53, and the net amount of funds raised will be RMB RMB 1,254,550,834.47, which was verified by Lixin Certified Public Accountants (Special General Partnership) and verified in 2019

On July 17, Xinhuishi Bao Zi [2019] No. ZA15224 "Capital Verification Report" was issued for verification. Later due to recruitment

The stamp duty reduction of the raised funds was RMB308,405.42, so the actual related issuance expenses were reduced by RMB308,405.42 compared with the previous amount, and the actual net proceeds were RMB1,254,859,239.89. The company has carried out special account storage of raised funds, and signed the "Tripartite Supervision Agreement on Special Account Storage of Raised Funds" with joint sponsors and commercial banks that deposit raised funds.

According to the company's "Prospectus for Initial Public Offering of Shares and Listing on the Science and Technology Innovation Board", after the funds raised this time are in place, they will invest in the smartphone AI vision solution capability improvement project, the IoT field AI vision solution industrialization project, the optical under-screen fingerprint solution development and industrialization project,

R&D center construction project. As of November 30, 2024, the status of each fundraising project is as follows:

Unit: 10,000 yuan

Sequence Total Investment of the Project Adjusted Project Raised Funds Commitment Adjusted Raised to Achieve Scheduled Schedule

No. Project Name Capital Total Investment Total Investment Total Investment Investment Status Date

[Note] Total[Note]

Smartphone AI

1 Visual solution 33,706.65 33,706.65 33,706.65 33,706.65 December 2022

Project Capacity Enhancement (Closed)

project

AI in the IoT space

2 Visual solution 38,457.15 56,402.84 38,457.15 55,044.59 December 2024

case industrialization items

eye

Optical screen under the finger

3-grain solution 22,048.88 7,672.35 22,048.88 7,672.35 Not applicable

Development & Industry (Project Terminated)

project

4 R&D center construction 18,940.60 18,940.60 18,940.60 18,940.60 June 2023

Project (Closed)

Total 113,153.28 116,722.44 113,153.28 115,364.19 —

Note: After the deliberation and approval of the third extraordinary general meeting of shareholders in 2022, the company terminated the development and industrialization project of optical under-screen fingerprint solution, and invested the remaining raised funds of the project into the industrialization project of AI vision solution in the field of IoT; At the same time, combined with the company's strategic development needs and the actual construction of the fund-raising project, the company invested an additional 179.4569 million yuan in the industrialization project of AI vision solutions in the IoT field, of which 165.8744 million yuan was raised from the development and industrialization project of the end-of-screen optical under-screen fingerprint solution, and the shortfall was made up by the company's own capital investment.

3. The postponement of the industrialization project of AI vision solutions in the IoT field

(1) The postponement of the industrialization project of AI vision solutions in the IoT field

As of November 30, 2024, the industrialization project of AI vision solutions in the IoT field has been cumulatively invested

517.8854 million yuan was raised, and the cumulative investment progress of the raised funds reached 94.08%. As of November 2024

On March 30, the balance of funds raised by the project was 71.788 million yuan (including the accumulated bank interest income and cash management income after deducting handling fees).

Unit: 10,000 yuan

Preface Project Name Total Adjusted Project Adjusted Funds Raised Cumulative Investment Raised Accumulated Funds Raised

No. Investment Amount Total Investment Amount of Funds Raised Calculation of Investment Progress

1 AI vision solutions in the IoT field 56,402.84 55,044.59 51,788.54 94.08%

Proposed industrialization project

Based on the principle of prudence, the company combines the current industrialization project of AI vision solutions in the company's IoT field

The actual use of the raised funds and the future investment plan are proposed to be adjusted on the date when the project reaches the predetermined usable state under the condition that the investment content, implementation subject and implementation method of the raised funds do not change, as follows:

Preface The date on which the intended usable status has been reached

No. The name of the project

After the original plan was postponed

1 Industrialization Project of AI Vision Solutions in the IoT Field December 2024 June 2025

Note: On October 28, 2021, the company's internal investment structure of the project and the date of reaching the intended usable status were advanced

For details, please refer to the "Announcement on Adjusting the Internal Investment Structure of Some Fundraising Projects and the Postponement of Fundraising and Investment Projects" (Announcement Edition).

No.: Pro 2021-039); On December 29, 2022, the company will terminate the development and industry of optical under-display fingerprint solutions

For details, please refer to the "Announcement on the Completion of Part of the Fund-raising Projects and the Permanent Replenishment of Liquidity with the Surplus Raised Funds and the Change of Part of the Fund-raising Projects" (Announcement No.: Pro 2022-034) and the "Announcement on the Resolution of the Third Extraordinary General Meeting of Shareholders in 2022" (Announcement No.: Pro

2022-038）； On December 27, 2023, the company will adjust the date when the project will reach the scheduled usable state

See the Announcement on the Postponement of Fundraising Projects (Announcement No. 2023-035).

(2) Reasons for the postponement of the industrialization project of AI vision solutions in the IoT field

Since the raised funds have been in place, the company's board of directors and management have attached great importance to and actively and steadily promoted the development of fundraising projects, and the company's core technical capabilities and industrial development in the field of intelligent vehicles have been improved

The product matrix is more perfect. Based on its continued bullishness in the field, the company moved into the IoT space in December 2022

Additional capital has been invested in the industrialization project of AI vision solutions.

In recent years, with the deepening of the automotive industry and the technology industry, the smart car market has shown the characteristics of fierce competition, rapid iteration of product technology, and continuous evolution of user needs and market competition. In order to cope with the changes in the market environment, the company closely combines the latest market trends and the real-time needs of customers, continuously optimizes the specific plan in the implementation of the fundraising project, and carries out multiple rounds of iterations in technology to improve the overall quality of the fundraising project and the use effect of the raised funds. The company has carried out a detailed combing, optimization and upgrading of the project plan: first, accelerate the improvement of the technology and product capabilities in the five directions of intelligent cockpit, intelligent driving, intelligent parking, intelligent visualization (AVM, blind spot assistance), and extravehicular intelligent assistance, so as to achieve a full range of productization.

Steadily achieve market-oriented implementation and continuously increase market share. Second, in the direction of ADAS and APA, the company's pure vision-related technologies such as 2D&3D traffic markings, uphill and downhill, and inclined ramp recognition, white paper object targets, and general obstacle detection have reached the global cutting-edge level, and high-level technologies such as weak graphics and localized visual NOA are also becoming more and more mature, and the company will also focus on enriching and iterating the aforementioned technologies. Thirdly, the company closely follows the idea of "reducing costs" in the market to build cars, and in addition to continuing to optimize the overall pure vision solution of L2+APA based on the TDA 4 platform with a very high technical threshold, it will also enrich the support strategies of other low and medium platforms to meet the differentiated needs of customers.

In summary, the company prudently planned the use of raised funds, determined the pace of raised funds according to market changes and technological changes, and extended the implementation cycle of AI vision solution industrialization projects in the IoT field. In order to ensure that the construction results of the project better meet the company's development requirements, after comprehensive analysis and prudent evaluation, the company intends to extend the date when the project reaches the intended usable state to June 2025.

Fourth, the impact of the postponement of the fundraising project

The company's industrialization project of AI vision solutions in the IoT field has been postponed, which is implemented by the company according to the project

The prudent decisions that need to be made are in line with the actual situation of the company's development and help to ensure the practicality of the fundraising project and the effectiveness of the use of the raised funds. The extension of the project does not change or disguise the use of raised funds and damage the interests of shareholders, will not have a significant adverse impact on the normal operation of the company, in line with the company's long-term development plan, in line with the relevant regulations of the China Securities Regulatory Commission and the Shanghai Stock Exchange on the management of funds raised by listed companies. The company will further accelerate the construction progress of the fundraising project in the future, so that the fundraising project can reach the scheduled usable state as soon as possible.

5. Explanation of special opinions

(1) Opinions of the Board of Supervisors

The board of supervisors of the company believes that the postponement of the fundraising project is a prudent decision made by the company based on the actual internal and external conditions of the implementation process of the fundraising project. This matter does not change or disguise the use of raised funds and damage the interests of shareholders, and is in line with the provisions of laws, regulations and institutional documents such as the Regulatory Guidelines for Listed Companies No. 2 - Regulatory Requirements for the Management and Use of Funds Raised by Listed Companies, the Rules for the Listing of Stocks on the Science and Technology Innovation Board of the Shanghai Stock Exchange, the Self-Regulatory Guidelines for Listed Companies on the Science and Technology Innovation Board of the Shanghai Stock Exchange No. 1 - Standardized Operation, and the Company's Management System for Raised Funds, and is in line with the actual business needs, long-term development planning and interests of all shareholders of the Company. Therefore, we unanimously agreed to the company's postponement of the fundraising project.

(2) Opinions of the sponsor institution

1. Huatai United Securities Co., Ltd., the company's joint sponsor, believes that:

The postponement of the company's AI vision solution industrialization project in the IoT field has been postponed by the company's board of directors,

The Board of Supervisors deliberated and approved and fulfilled the necessary legal procedures. The postponement of the fundraising project is in line with the relevant provisions of the Regulatory Guidelines for Listed Companies No. 2 - Regulatory Requirements for the Management and Use of Funds Raised by Listed Companies and the Self-Regulatory Guidelines for Listed Companies on the Science and Technology Innovation Board of the Shanghai Stock Exchange No. 1 - Standardized Operation. The company does not change the use of raised funds in disguise, and there is no damage to the interests of the company and shareholders. The sponsor has no objection to the postponement of the company's fundraising project.

2. The company's co-sponsor, China Securities Co., Ltd., believes that:

The postponement of the company's fundraising and investment projects has been deliberated and approved by the board of directors and the board of supervisors of the company, and the necessary decision-making procedures have been fulfilled and in accordance with the provisions of relevant laws, regulations and normative documents on the decision-making procedures for the use of raised funds. The postponement of this fundraising project is in line with the requirements of relevant laws, regulations and normative documents such as the Regulatory Guidelines for Listed Companies No. 2 - Regulatory Requirements for the Management and Use of Raised Funds by Listed Companies, the Listing Rules for Stocks on the Science and Technology Innovation Board of the Shanghai Stock Exchange, the Self-Regulatory Guidelines for Listed Companies on the Science and Technology Innovation Board of the Shanghai Stock Exchange No. 1 - Standardized Operation, and the provisions of the Company's Management System for Raised Funds, and will not adversely affect the implementation of the fundraising and investment projects. There is no change or disguised change in the investment direction of the raised funds and damage to the interests of shareholders. To sum up, the sponsor has no objection to the postponement of the company's fundraising project.

6. Attachment to the online announcement

(1) Announcement of the resolution of the second meeting of the third board of supervisors;

(2) Huatai United Securities Co., Ltd.'s verification opinions on the postponement of the fundraising and investment project of Arcsoft Technology Co., Ltd.;

(3) The verification opinions of China Securities Co., Ltd. on the postponement of the fundraising and investment project of Arcsoft Technology Co., Ltd.

The announcement is hereby made.

Board of Directors of ArcSoft Technology Co., Ltd

January 2, 2025