Divine Power Energy Completes Final Payment for Imported CTC Manufacturing Machinery

What Happened ?

key details

Machinery Procurement Update:

• The machinery is being imported to establish a Continuously Transposed Conductor (CTC) production line.
• The production facility will be installed at Vimlesh Industries Private Limited, a wholly owned subsidiary of Divine Power Energy.
• The procurement also includes auxiliary equipment and related technical support.

Payment Completion:

• The revised Proforma Invoice is dated May 7, 2026.
• Total machinery contract value stands at CNY 12,902,652.
• An advance payment of CNY 8,189,843 had already been remitted.
• The company has now remitted the remaining CNY 4,712,809 to the overseas supplier.
• The payment completes the entire contractual payment obligation for the machinery procurement.

Project Significance:

• Completion of payment allows the supplier to proceed with manufacturing, dispatch and delivery of the equipment.
• The new production line is expected to strengthen the company’s manufacturing capabilities in specialized conductor products.
• The project remains on the previously communicated implementation schedule.

Commercial Update:

• The only revisions relate to the commercial value and settlement currency under the revised Proforma Invoice.
• The overall nature, purpose and scope of the transaction remain unchanged from the disclosure dated December 4, 2025.

Risk Analysis

Summary:

• While the financial obligation has been fully discharged, the project execution now depends on timely manufacturing, shipment, installation and commissioning of the imported machinery.

Key Risks:

• Delays in overseas manufacturing or shipment could affect project timelines.
• Installation and commissioning may take longer than anticipated.
• Foreign exchange fluctuations may impact the overall project cost until completion.

Worst Case:

• Any significant delay in equipment delivery or commissioning could postpone commercial production from the new CTC manufacturing line.

Risk Level: Medium

Company Commentary

• The company has completed the entire payment obligation towards the imported machinery.
• The balance amount has been remitted to the overseas supplier.
• The payment facilitates manufacturing, dispatch and delivery of the machinery as per the agreed contractual schedule.
• Apart from revisions in commercial value and settlement currency, all other aspects of the project remain unchanged from the earlier disclosure.