Continental Aerospace Technology Holdings announced that Continental Aerospace Technologies, Inc., an indirect wholly-owned subsidiary of the Company, entered into a settlement agreement with the US Department of Justice on July 31, 2026 regarding payroll protection plan loans obtained by CAT US and subsequently exempted under the US “Coronavirus Aid, Relief and Economic Security Act”. This settlement must be kept confidential. On August 3, 2026, the Department of Justice notified CAT US that it had no objection to the Company's disclosure of the settlement. CAT US immediately notified the Company to disclose the settlement after receiving confirmation from the Ministry of Justice that there was no objection. The settlement required payment of US$117.72.68 million, plus interest calculated at an annual interest rate of 4% from June 23, 2026 to the date of payment. Furthermore, the agreement also contains provisions to release CAT US from any future civil liability or claim arising under the False Claims Act under PPP loans. Neither the settlement amount nor the participation of CAT US in settlement negotiations shall constitute and shall not be interpreted as an admission of liability or misconduct by CAT US. The Company expects CAT US to pay the settlement amount as soon as possible in accordance with the instructions of the Ministry of Justice.

Continental Aerospace Technology Holdings announced that Continental Aerospace Technologies, Inc., an indirect wholly-owned subsidiary of the Company, entered into a settlement agreement with the US Department of Justice on July 31, 2026 regarding payroll protection plan loans obtained by CAT US and subsequently exempted under the US “Coronavirus Aid, Relief and Economic Security Act”. This settlement must be kept confidential. On August 3, 2026, the Department of Justice notified CAT US that it had no objection to the Company's disclosure of the settlement. CAT US immediately notified the Company to disclose the settlement after receiving confirmation from the Ministry of Justice that there was no objection. The settlement required payment of US$117.72.68 million, plus interest calculated at an annual interest rate of 4% from June 23, 2026 to the date of payment. Furthermore, the agreement also contains provisions to release CAT US from any future civil liability or claim arising under the False Claims Act under PPP loans. Neither the settlement amount nor the participation of CAT US in settlement negotiations shall constitute and shall not be interpreted as an admission of liability or misconduct by CAT US. The Company expects CAT US to pay the settlement amount as soon as possible in accordance with the instructions of the Ministry of Justice.