Rifa Precision Machinery released its 2026 interim report on August 25. By divesting loss-making overseas assets and focusing on its core domestic high-end machine tool business, the company returned to profitability in the reporting period, but revenue contracted significantly due to a narrower consolidation scope. The financial report shows that during the reporting period, the company achieved operating revenue of 310 million yuan, down 56.71 percent year on year. Net profit attributable to the parent company was 50 million yuan, compared with a loss of 221 million yuan in the same period last year. Net profit after deducting non-recurring items was 16 million yuan, compared with a loss of 226 million yuan a year earlier. The turnaround mainly stemmed from changes in the consolidation scope. Subsidiary Airwork was taken over and the equity in Italy's MCM was transferred, so neither is consolidated anymore, eliminating the heavy losses that dragged down results in the same period last year. At the same time, the company sold its plant and equipment in Meizhu, Xinchang, generating asset disposal gains of about 33.44 million yuan, which are non-recurring items. In terms of business structure, digital intelligent machine tools and production lines generated revenue of 267 million yuan, accounting for 85.94 percent of total revenue, with a gross margin of 27.88 percent. Aerospace intelligent equipment and production lines became a new growth driver, with revenue of 31 million yuan, up 130.89 percent year on year, and a gross margin of 41.58 percent. The aerospace services business, which previously accounted for a very high share, is no longer consolidated in this period, causing overseas revenue to plunge 92.70 percent year on year to 39 million yuan, while domestic revenue rose 43.71 percent year on year to 272 million yuan. Looking ahead to the second half, the company faces challenges including the risk that receivables related to Airwork and MCM cannot be recovered, high dependence on external suppliers for core functional components, and a controlling shareholder equity pledge ratio close to 100 percent.
Encore Capital Group IncZheJiang RIFA Digital Precision Machinery Co LtdCompany swung to profit in interim report due to divestments and asset sales, though revenue fell sharply.
