Modern Avenue: Provision Of Bad Debts For Investment Of Silver Credit 33 Million

In October 16th, capital bulletin, modern Avenue (3.690, -0.05, -1.34%) issued a suggestive announcement on possible bad debt provision for long-term receivables.

The modern fashion group Limited by Share Ltd (hereinafter referred to as the "company") has recently learned that the Fujian silver letter Electronic Technology Co., Ltd. (hereinafter referred to as "silver letter Electronics") issued a simple cancellation notice and is in liquidation.

In April 2019, the company signed the investment framework agreement with silver letter Electronics (number: 20190304MA, the company is Party A, and silver letter Electronics is Party B). The fifth agreement: Party A intends to invest 33 million yuan to Party B and hold 10% stake in Party B by way of capital increase. After signing the framework agreement, Party A and B will pay 33 million yuan investment intention to Party B. As of the date of the announcement, the company failed to reach a formal investment agreement with silver letter electronics, and did not recover the amount of 33 million yuan paid by the company on the basis of the aforesaid agreement.

The company has commissioned an external lawyer to conduct a due diligence investigation on the status of the bank's credit electronics, but there is a possibility that it can not be recovered in the short term. On the basis of careful consideration, in order to reflect the assets and financial status of the company accurately and accurately, it will be possible to prepare the total provision for bad debts in accordance with the relevant provisions of the enterprise accounting standards and the company's accounting policies.