Diamond Aircraft settlement clears path for production boost, market expansion

Zhejiang Wanfeng Auto Wheel Co., Ltd. announced its subsidiary, Diamond Aircraft Industries GmbH, has settled an international arbitration with Shandong Bin’ao Aircraft Manufacturing Co., Ltd. Both parties signed a "Confirmation Letter of International Arbitration Award" on November 12, 2025, terminating the DA40 authorization agreement. This settlement means Diamond Aircraft is no longer required to license the DA40 model for production and sales in China to Shandong Bin’ao, and all obligations from the ICC arbitration award have been fulfilled.

The arbitration, initiated by Shandong Bin’ao in 2017, resulted in an ICC award on August 2, 2021, which mandated Diamond Aircraft to continue the license and pay an estimated RMB 67,048,600 in damages, legal fees, arbitration costs, and interest. Diamond Aircraft had already paid RMB 70,304,000 in 2021. The current settlement confirms no further disputes remain regarding the ICC arbitration award.

This resolution is expected to positively impact the company's future. The DA40 model, a key aircraft for Wanfeng Diamond, will see intensified promotion for production and sales in China and the Asia-Pacific region. The company anticipates this will facilitate the domestic production and market penetration of the Diamond aircraft brand, ultimately enhancing its global brand influence. The settlement will not impact the company's net profit attributable to parent company shareholders in 2025.