According to Zhitong Finance App, Datang Environment (01272) issued an announcement. After signing the minutes of the meeting relating to the settlement agreement on March 31, 2023, the Technology Engineering Company, the Technology Engineering India Company and the Tamil Nadu State Company (the contracting parties) agreed (including) to pay the first installment of the repayment amount under the settlement plan within 90 days after receiving the approval of the settlement plan by the National Company Law Court.
On June 27, 2023, the contracting party signed a further settlement agreement, which was submitted to the National Company Law Court for approval as an addendum to the Tamil Nadu Company Settlement Plan. The settlement plan can only be implemented after approval by the National Company Law Court.
On May 14, 2024, the National Company Law Appeals Court, the higher authority of the National Company Law Court, approved the settlement plan (approved by the National Company Law Appeal Court), and handed down a judgment including approval by the National Company Law Appeal Court on May 17, 2024. According to the approval of the National Company Law Appeal Court, the settlement plan shall be implemented and the first payment shall be made within 90 days from the date of approval by the National Company Law Appeal Court.
As disclosed in the March 2023 announcement, after making a settlement plan and signing the minutes of the meeting, it is estimated that the Company's profit before income tax will increase by approximately RMB 32.8 million in 2023, excluding the impact of exchange rate fluctuations (originally estimated financial impact). However, since approval was obtained from the National Company Law Appellate Court in 2024, the original estimated financial impact was not reflected in the Company's financial statements for the year ended December 31, 2023, and the impact is expected to be reflected in the Company's financial statements for the year ended December 31, 2024.
Therefore, without taking into account the impact of exchange rate fluctuations, it is estimated that the Company's profit before income tax will increase by approximately RMB 37.8 million in 2024 after implementing the settlement plan. The difference from the original estimated financial impact is mainly due to differences in exchange rates used in the March 2023 announcement and accrued interest on repayments.