According to Zhongtong Finance and Economics APP, Avcon Information Technology (300074.SZ) announced that the company is actively promoting the debt restructuring of accounts receivable. On November 5, 2024, the company held the 36th (temporary) meeting of the fifth session of the board of directors and passed the proposal to carry out debt restructuring.

It is reported that the company's subsidiaries, Tongren Huaping Information Technology Co., Ltd. and Huaping Smart Information Technology (Shenzhen) Co., Ltd., signed contracts with the Second Brigade of the Traffic Management Bureau of Tongren City directly in 2015 for the construction projects of traffic light control facilities at the Chongjiao Intersection and Xieqiao North Road Intersection in Wanshan District, the crossroads of Nan Hutongxi and the Eighth Middle School Road in Wanshan District, and the crossroads of Jinlin Avenue and the North Huayi Avenue in Wanshan District. The total contract amount is 3.2 million yuan. As of the date of this announcement, the total amount received for the projects is 1.0716 million yuan, with remaining accounts receivable of 2.1284 million yuan, all overdue.

Based on many years of good cooperation with customers and considering the long-term continuous cooperation in the future, as well as the financial status of customers and the company's financial pressure, both parties, in the spirit of fairness, continuous cooperation, and to expedite the recovery of accounts receivable, prevent operational risks, and implement the debt repayment of both parties' transactions, after full communication and friendly negotiation, have reached this agreement. To quickly resolve the outstanding payment issue, accelerate the recovery of accounts receivable, the company's subsidiaries, Tongren Huaping Information Technology Co., Ltd. and Huaping Smart Information Technology (Shenzhen) Co., Ltd., intend to sign the Debt Confirmation Agreement with the Second Brigade of the Traffic Management Bureau of Tongren City. The company agrees to discount the accounts receivable by 0.96 million yuan, resulting in an outstanding amount of 116.84 yuan after the discount.

Of the discounted amount, 0.2724 million yuan will be paid in cash, and the Second Brigade of the Traffic Management Bureau of Tongren City is required to pay the company before December 20, 2024. The remaining 0.896 million yuan will be offset by the "Rhododendron Garden" project real estate property of Tongren Wanshan District Open Source Investment Group at fair value. The company has selected some of the properties from this real estate project as debt-settling properties and has entrusted Shenzhen Yitong Assets to assess the real estate and land value of the debt-settling properties. Once the property is transferred and ownership is complete, the debt obligations will be fulfilled.

The successful completion of this debt restructuring is still uncertain. Investors are advised to pay attention to investment risks. If it proceeds smoothly, it is estimated to have an impact on the company's 2024 net income of 1.16 million yuan (the specific accounting treatment and the amount of impact are subject to confirmation by the annual audit report of the accountant), for the reversal of accumulated bad debt provisions and related expenses.