Stock code: 688088 Stock abbreviation: Arcsoft Technology Announcement No.: Pro 2025-007

ArcSoft Technology Co., Ltd

2024 Annual Profit Distribution Plan Announcement

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

Important Content Notes:

Distribution ratio per 10 shares: A cash dividend of RMB 2.50 (tax included) for every 10 shares of A shares, not carried out

The capital reserve is converted into share capital, and no bonus shares are given.

The profit distribution is based on the total share capital registered on the record date of the implementation of equity distribution minus the shares in the company's special securities account for repurchase, and the specific date will be specified in the announcement of the implementation of equity distribution.

If there is a change in the company's total share capital deducting the shares in the company's repurchase special securities account before the equity registration date for the implementation of equity distribution, it is planned to maintain the distribution ratio per share unchanged, adjust the total amount of distribution accordingly, and will announce the specific adjustment separately.

The Company has not touched the first paragraph of Article 12.9.1 of the Rules Governing the Listing of Stocks on the Science and Technology Innovation Board of the Shanghai Stock Exchange

Other risk warnings may be implemented as provided for in item (8).

1. The content of the profit distribution plan

(1) The specific content of the profit distribution plan

Audited by Lixin Certified Public Accountants (Special General Partnership), the net profit attributable to shareholders of the listed company in the consolidated statements of ArcSoft Technology Co., Ltd. (hereinafter referred to as the Company) in 2024 is RMB

$176,685,765.99. As of December 31, 2024, the parent company's undistributed profit at the end of the interim statement was

RMB 210,321,333.43. Upon the resolution of the board of directors, the company intends to distribute profits in 2024 based on the total share capital registered on the record date of the implementation of equity distribution minus the shares in the company's special securities account for repurchase. The profit distribution plan is as follows:

The company intends to distribute a cash dividend of 2.50 yuan (tax included) to all shareholders for every 10 shares, without capital reserve

Gold is converted into share capital, and bonus shares are not given. As of April 11, 2025, the company's total share capital is 401,170,400 shares,

The total proposed cash dividend is calculated by deducting 439,000 shares in the repurchase special securities account

RMB 100,182,850.00 (tax included).

2024 cash dividend (including interim distributed cash dividend of 60,109,710.00 yuan)

the total amount is 160,292,560.00 yuan, accounting for 90.72% of the net profit attributable to shareholders of listed companies in 2024;

In 2024, the amount of share repurchase that has been implemented by means of centralized bidding and offer is 13,199,788.71 yuan (including stamp duty, transaction commission and other transaction costs) with cash as the consideration, and the cash dividend and repurchase amount are combined

a total of 173,492,348.71 yuan, accounting for 98.19% of the net profit attributable to shareholders of listed companies in 2024.

The amount of repurchase (hereinafter referred to as repurchase and cancellation) in 2024 (including stamp duty, transaction commission and other transaction costs) was RMB 211,396,457.21 (including stamp duty, transaction commissions and other transaction costs) and the total amount of cash dividends and repurchase and cancellation was RMB 371,689,017.21, accounting for 210.37% of the net profit attributable to shareholders of the listed company in 2024.

The company holds 439,000 shares of the company through the repurchase special account and does not participate in this profit distribution.

If there is a change in the total share capital of the company due to the conversion of convertible bonds into shares/repurchase of shares/repurchase of shares granted by equity incentives/repurchase and cancellation of shares of major asset restructuring during the period from the date of disclosure of this announcement to the registration date of the implementation of equity distribution, the company intends to maintain the distribution ratio per share unchanged and adjust the total distribution amount accordingly. If there is a subsequent change in the total share capital, the specific adjustment will be announced separately.

The profit distribution plan is still subject to submission to the company's 2024 annual general meeting of shareholders for consideration.

(2) Whether other risk warning situations may be triggered

The profit distribution is in accordance with the relevant laws and regulations and the provisions of the Articles of Association, and does not touch the circumstances that may be subject to other risk warnings as stipulated in Article 12.9.1, Paragraph 1 (8) of the Listing Rules of the Science and Technology Innovation Board of the Shanghai Stock Exchange, and the relevant data and indicators are as follows:

Project 2024 2023 2022

Total cash dividends (RMB) 160,292,560.00 88,160,908.00 50,146,300.00

Total amount of repurchase and cancellation (RMB) 211,396,457.21 0.00 0.00

Net profit attributable to shareholders of listed companies 176,685,765.99 88,487,716.83 57,822,806.53

(RMB)

The parent company's statement at the end of the year accumulated undistributed 210,321,333.43

Profit (RMB)

The accumulated cash dividend for the last three fiscal years is 298,599,768.00

Total (RMB)(A)

In the last three fiscal years, the cumulative repurchase write-off was 211,396,457.21

Total (RMB) (B)

The average net profit for the last three fiscal years was 107,665,429.78

(RMB)(C)

The accumulated cash dividend for the last three fiscal years was 509,996,225.21

and total amount of repurchase and cancellation (RMB) (D=A+B)

Accumulated cash dividends for the last three fiscal years

and whether the total amount of repurchase write-offs (D) is lower than No

30 million yuan

Cash dividend ratio (%)(E=D/C) 473.69

Whether the cash dividend ratio (E) is less than 30% No

The cumulative R&D investment in the last three fiscal years was 1,048,415,493.38

Amount (RMB) (F)

The cumulative R&D investment in the last three fiscal years is:

Whether the amount is more than 300 million yuan

The cumulative operating income for the last three fiscal years was 2,017,076,403.67

(RMB)(G)

The cumulative R&D investment in the last three fiscal years is 51.98

Percentage of cumulative operating income (%)(H=F/G)

Cumulative R&D investment in the last three fiscal years

The proportion of accumulated operating income (H) is Yes

15% or more

Whether it has touched the Listing Rules of the STAR Market

Article 12.9.1, paragraph 1 (viii) No

Other risk warnings may be implemented

situation

2. The decision-making procedures performed by the company

(1) The convening, deliberation and voting of the board of directors meetings

The third meeting of the third session of the Board of Directors of the Company held on April 11, 2025 was approved by 9 votes, 0

The voting results of vote against and 0 abstentions deliberated and passed the "Proposal on the 2024 Annual Profit Distribution Plan", which is in line with the profit distribution policy stipulated in the "Articles of Association", and agreed to submit the profit distribution plan to the company's 2024 annual general meeting of shareholders for deliberation.

(2) Opinions of the Board of Supervisors

The third meeting of the third session of the Board of Supervisors of the Company held on April 11, 2025 was approved by 3 votes, 0

The Board of Supervisors believes that the company's 2024 annual profit distribution plan fully considers the company's profitability, cash flow status, capital needs and the original intention of returning investors, and meets the requirements of the "Notice on Further Implementing Matters Related to Cash Dividends of Listed Companies", "Regulatory Guidelines for Listed Companies No. 3 - Cash Dividends of Listed Companies", "Articles of Association" and other requirements on dividend policies. It guarantees the reasonable return of shareholders and does not harm the interests of the company's shareholders, especially small and medium-sized shareholders. Agreed to the profit distribution plan and agreed to submit the plan to the company's 2024 annual general meeting of shareholders for deliberation.

3. Relevant risk warnings

(1) The profit distribution plan is based on comprehensive consideration of the company's actual operating conditions and future development plans

The overall operating condition of the listed company is good, which will not have a significant impact on the company's earnings per share and operating cash flow, and will not affect the company's normal operation and long-term development.

(2) The profit distribution plan still needs to be submitted to the company's 2024 annual general meeting of shareholders for review and approval before it can be implemented.

The announcement is hereby made.

Board of Directors of ArcSoft Technology Co., Ltd

April 15, 2025