On December 3, Zhejiang RiFa Precision Machinery Co., Ltd. (RiFa Precision) announced that it would sell its subsidiary at a price of 1 euro and simultaneously sell a portion of its real estate assets in China at a price of 155 million yuan.
In the announcement titled “Notice on the Intended Sale of Equity of Subsidiary and Passive Formation of Financial Assistance” released by RiFa Precision, it stated that “the company’s wholly-owned subsidiary RiFa Precision (Hong Kong) Limited intends to transfer 100% equity of its wholly-owned subsidiary Machining Centers Manufacturing S.p.A (referred to as ‘Italian MCM Company’) to Special Situations S.r.l. company at a price of 1 euro. After the completion of this equity transfer transaction, the company will no longer hold any equity in the Italian MCM Company.”
The announcement indicated that RiFa Precision acquired an 80% equity stake in Italian MCM Company for 12.64 million euros in August 2014, but due to consecutive years of losses since 2021, with increasing losses and deteriorating overall operating conditions, it decided to sell the subsidiary.
According to a report by the Daily Economic News on December 4, Italian MCM has been in a deficit since 2021, with a net loss of 129 million yuan from January to August 2025. As of August 31, its net assets were at -143 million yuan, indicating insolvency. After the transaction, RiFa Precision faces the risk of not being able to recover its earlier operational loans of 9.1168 million euros.
On the same day, RiFa Precision announced in the “Notice on the Intended Sale of Part of Assets and Related Transactions” that “the company and its wholly-owned subsidiaries Zhejiang RiFa Newington Machine Tool Co., Ltd. and Zhejiang RiFa Grid Precision Machine Tool Co., Ltd. intend to sell the industrial land use rights and buildings located at No. 4 Guishan Road, Xinchang County, Zhejiang Province (including ancillary facilities and equipment assets) to Zhejiang RiFa Spinning Machine Technology Co., Ltd. for a total price of 154,935,744.00 yuan.”
The announcement cited the reason for selling the assets as “optimizing asset structure and enhancing asset liquidity.”
Public information shows that Zhejiang RiFa Precision Machinery Co., Ltd. was established on December 28, 2000. As a listed company under the RiFa Holdings Group, it focuses on the manufacturing of CNC machine tools, high-end textile machinery, and aerospace equipment with three major production bases in Zhejiang, Shandong, and Anhui.
According to the Third Quarter Report for 2025 released by RiFa Precision on October 30, the company achieved a total operating income of 874 million yuan, a decrease of 39.94% year-on-year. The net profit attributable to the parent company was a loss of 267 million yuan, compared to a loss of 66.1774 million yuan in the same period last year. The non-net profit loss was 493 million yuan, compared to a loss of 77.3457 million yuan in the previous year.