Sensetime-W (00020) has disclosed that on April 16, 2026, the company entered into a placement agreement with placing agents. The agents have conditionally agreed to act on a best-efforts basis to secure subscriptions for no fewer than six placees for 1.7 billion placement shares. The placement price has been set at HK$1.91 per share.

Assuming no change in the number of issued shares between the announcement date and the completion date of the placement, the placement shares will represent approximately 4.26% of the existing issued B-class shares and about 4.21% of the total issued share capital as of the announcement date. Following the allotment and issuance of the placement shares, they will represent approximately 4.09% of the enlarged number of issued B-class shares and about 4.04% of the total issued share capital.

The placement price of HK$1.91 per share represents a discount of approximately 8.61% compared to the closing price of HK$2.09 per B-class share on The Stock Exchange of Hong Kong on April 16, 2026, which was the last trading day and the date for determining the placement price.

Subject to the successful completion of the placement, assuming all placement shares are successfully placed, the gross proceeds from the placement are expected to be approximately HK$3.247 billion. After deducting placing commissions and other related costs and expenses, the net proceeds are estimated to be approximately HK$3.23 billion.

The company plans to allocate the net proceeds as follows: 40% will be used to expand the scale of its AI infrastructure, specifically the SenseCore AI Data Center, with a focus on scaling up domestically-produced AI supercomputing clusters based on local chips. This portion will also fund the upgrade of the company's localized AI cloud technology stack to support the infrastructure for the group's upcoming AI token plan, with full utilization expected by December 31, 2026.

30% of the proceeds will be allocated to support the research and development of the company's generative AI technologies. The core focus will be on sustaining innovation for the SenseNova series to achieve top-tier global standards. This includes, but is not limited to, the development of native multimodal large models built on the self-developed NEO architecture. It will also support expanding the product offerings of the AI token plan to achieve commercial implementation, with full utilization expected by December 31, 2026.

20% of the funds will be used to continue exploring the integration and practical application of AI technologies in innovative vertical sectors. This includes, but is not limited to, empowering areas such as education, Software-as-a-Service (SaaS), and integrated hardware-software products with native AI technology, with full utilization expected by December 31, 2026.

The remaining 10% will be allocated for the company's general working capital purposes, with full utilization also expected by December 31, 2026.