Dongfang Electric updates compensation agreement for DEC Group asset buy

Dongfang Electric (HKEX: 1072) has announced a supplemental agreement to its profit forecast compensation agreement with DEC Group, linked to the proposed acquisition of assets. The adjustment addresses the possibility that the asset acquisition, initially expected to conclude in 2023 or 2024, may extend into 2025. The supplemental agreement outlines revised cumulative committed net income figures for Dongfang Turbine and Dongfang Electric Machinery, contingent upon a 2025 transaction completion. For instance, the cumulative committed share of income related to technical intangible assets of Dongfang Turbine is now projected at RMB 7,758.40 in 2025, RMB 13,612.38 by 2026 and RMB 18,168.13 by 2027. The company reiterates that the changes do not require a general meeting for consideration, citing prior board authorization.