Ultrapower subsidiary wins appeal in contract dispute

Beijing Ultrapower Software's wholly-owned subsidiary, Beijing Ultrapower System Integration Co., Ltd., has announced a significant development in its 50 contract disputes against Datang Semiconductor Design Co., Ltd., Datang Microelectronics Technology Co., Ltd., and Beijing Shilitonghe Technology Development Co., Ltd. The Beijing Higher People's Court has dismissed Datang Microelectronics' re-trial application for 12 of these cases, effectively upholding the previous rulings. This decision concludes the re-trial phase for these specific matters.

The original litigation, initiated over contract payments and liquidated damages, involved a total amount of approximately 70,343.75 million yuan across the 50 cases. Initial judgments from the Beijing Haidian District People's Court awarded approximately 37,953.12 million yuan (excluding case acceptance fees, preservation fees, and announcement fees) plus interest. Appeals by Datang Semiconductor and Datang Microelectronics were previously rejected, and subsequent enforcement and settlement agreements resulted in payments totalling 245,326,155.92 yuan to Beijing Ultrapower System Integration Co., Ltd.

The company stated that the latest ruling from the Beijing Higher People's Court will not impact its current or future profits. Ultrapower continues to monitor the progress of these cases and other ongoing small litigation matters, which cumulatively amount to 9,759.75 million yuan.