CHINA AEROSPACE (00031) announced that it has received notification from Aerospace Semiconductor that the company entered into a settlement agreement on October 2, 2025, with applicants Majice (Suzhou) Technology Co., Ltd. (Majice Suzhou) and its related parties, along with Intermec Technologies (S) Pte Ltd (Intermec) (collectively "the Applicants") regarding arbitration settlement.

The main terms of the settlement agreement are outlined as follows:

1. Within 5 working days after the settlement agreement takes effect, Aerospace Semiconductor will pay USD 1.3154 million to Intermec to repurchase chips under the relevant master supply agreement. After payment, Intermec will ship the chips (returned chips) to Aerospace Semiconductor at its own expense.

2. Within 5 working days after the effective date, Majice Suzhou will pay USD 398,900 to Aerospace Semiconductor to purchase inventory and materials used for manufacturing equipment under the relevant master supply agreement. After payment, Aerospace Semiconductor will ship the inventory and materials to Majice Suzhou at its own expense.

3. Within 5 working days after the effective date, Majice Suzhou will pay USD 816,500 in accounts receivable to Aerospace Semiconductor.

4. To achieve mutual benefit, Majice Suzhou commits that starting from January 1, 2026, for a period of 6 years, according to certain ordering conditions, it will either directly or through its related parties place and fulfill orders of a certain amount with Aerospace Semiconductor. Aerospace Semiconductor also commits to providing rebates to Majice Suzhou in subsequent business transactions.

5. After both Aerospace Semiconductor and Majice Suzhou have made proper payments according to the aforementioned clauses 1, 2, and 3, the Applicants and Aerospace Semiconductor shall immediately withdraw all their respective claims/counterclaims in the arbitration within 3 working days after the final payment is completed. All mutual obligations or liabilities between the Applicants and Aerospace Semiconductor arising from or related to quality disputes shall be mutually released and permanently waived.

6. Aerospace Semiconductor and the Applicants shall each bear their own costs and expenses incurred in the arbitration, including attorney fees, fees paid to the arbitration committee (to be shared equally among the parties in each arbitration), and any other related costs and expenses.