浙江日发精密机械股份有限公司第八届董事会第二十六次会议决议公告

Core Viewpoint - Zhejiang Rifa Precision Machinery Co., Ltd. has approved the bankruptcy application for its wholly-owned subsidiary, Italian MCM Company, due to ongoing losses and liquidity issues, aiming to protect the interests of the company and its shareholders [7][9][11]. Group 1: Meeting Resolutions - The board of directors held the 26th meeting of the 8th session on June 19, 2025, where all 7 directors present voted unanimously in favor of the bankruptcy application for Italian MCM Company [1][3]. - The supervisory board also convened on the same day, with all 3 supervisors present, and similarly approved the bankruptcy application [5][3]. Group 2: Background of Italian MCM Company - Rifa acquired 80% of Italian MCM Company in August 2014, increasing its stake to 84% in December 2015, and later to 100% through a series of transactions [7][9]. - Despite efforts to improve management and operations, Italian MCM Company has faced severe financial difficulties due to high costs and external economic pressures, leading to a liquidity crisis [9][10]. Group 3: Reasons for Bankruptcy Application - The company has been unable to reverse its losses despite various management strategies, and external factors such as geopolitical conflicts and rising costs have exacerbated its financial situation [9][10]. - The management is obligated under Italian law to file for bankruptcy when liquidity issues arise, prompting the decision to protect shareholder interests [10]. Group 4: Impact on the Company - Although Italian MCM Company has contributed significantly to Rifa's revenue, it has been in a loss position since 2021, with its losses representing 1.53%, 4.57%, and 20.40% of Rifa's total losses from 2022 to 2024 [11]. - The bankruptcy application is expected to reduce losses and allow Rifa to focus on its core business and market development without significant impact on its domestic operations [11].