ArcSoft revamps governance, waives investment in subsidiary

ArcSoft Corporation announced a significant corporate governance overhaul in October 2025, including the abolishment of its supervisory board and revisions to its Articles of Association. This change aims to streamline the company's legal framework and operational efficiency, with the supervisory board's responsibilities transferring to the Audit Committee of the Board of Directors. This move will be subject to shareholder approval and regulatory review.

In a separate development, ArcSoft's subsidiary, Zhejiang Shunwei Technology, plans to increase its registered capital by yuan 5,000.00 million, contributing to a total capital increase of yuan 10,000.00 million. ArcSoft Corporation, currently holding a 10.00% stake in Zhejiang Shunwei, has decided to waive its preferential subscription rights for this capital increase. This decision, approved by the board of directors, is part of ArcSoft's overall development strategy.

As a result of this waiver, ArcSoft’s ownership in Zhejiang Shunwei will decrease to 8.00%. This transaction constitutes a related-party transaction due to common directorships. Shareholders are advised that the increase in capital by Zhejiang Shunwei is not yet finalized, with agreements pending and risks associated with fund disbursement.