RIFA PM(SZ:002520) Mei Ri Jing Ji Xin Wen·2025-07-04 06:45Core Viewpoint - The company, Rifa Precision Machinery (日发精机), is facing significant challenges due to the receivership of its subsidiary Airwork, which has defaulted on loans and has five Boeing aircraft detained in Russia, impacting its financial performance and future prospects [1][2][3]. Group 1: Company Financial Situation - As of July 2, 2023, Airwork has been placed under receivership due to a loan default, with the outstanding principal balance of the loan amounting to approximately 63.2 million yuan (8.83 million USD) [1]. - The company reported cumulative losses of 3.108 billion yuan (approximately 450 million USD) from 2022 to 2024, with net losses of 1.530 billion yuan, 903 million yuan, and 675 million yuan for the respective years [6]. - The subsidiary, Italian MCM, has also been in a state of continuous loss, contributing to the overall financial difficulties of Rifa Precision Machinery [6][7]. Group 2: Impact of Airwork's Situation - Airwork has five Boeing 757 aircraft detained in Russia, which has led to significant asset impairment provisions totaling 741 million yuan (approximately 104 million USD) [3]. - The company attempted to negotiate with Russian clients for the return of the aircraft but has faced challenges due to international sanctions following the Russia-Ukraine conflict [3]. - Airwork has initiated legal proceedings against its insurance providers to seek compensation for the detained aircraft, indicating a proactive approach to mitigate financial losses [4]. Group 3: Business Operations and Strategy - Rifa Precision Machinery has expanded its overseas operations significantly, with foreign revenue reaching 1.416 billion yuan (approximately 200 million USD) by the end of 2024, accounting for 78.47% of total revenue [5]. - The company has diversified its business through acquisitions, including the purchase of Italian MCM, which has provided access to advanced manufacturing technologies and high-profile clients [5]. - Despite the growth in overseas revenue, the company has experienced stagnation since 2019, with foreign income fluctuating between 1.4 billion yuan and 1.6 billion yuan [6].