Core Viewpoint - Zhejiang Rifa Precision Machinery Co., Ltd. is expected to report a significant net loss of between 222.3 million to 333 million yuan for the first half of 2025, marking an increase in losses of 855.45% to 1323.55% year-on-year, the highest loss growth in nearly three years [1] Group 1: Financial Performance - The company's net profit loss, excluding non-recurring gains and losses, is projected to be between 232 million to 346 million yuan, reflecting a year-on-year increase of 867.38% to 1342.73% [1] - Basic earnings per share are expected to be a loss of 0.298 to 0.444 yuan, a significant increase from the loss of 0.031 yuan per share in the same period last year [1] - The company has experienced a continuous trend of expanding losses over three consecutive half-year periods, with the first half of 2024 showing a loss of 22.8 million yuan and a total loss of 315 million yuan for the entire year [1] Group 2: Operational Challenges - The significant loss expansion is attributed to two main issues: a decline in demand for high-end CNC machine tools, particularly due to reduced investment in the aerospace manufacturing sector, and the new digital intelligent equipment business not yet providing effective profit support, which continues to strain cash flow [2] - The financial downturn is exacerbated by the bankruptcy proceedings of two overseas subsidiaries, Airwork in New Zealand and MCM in Italy, leading to full impairment risks for the company's investments [2] - Airwork was taken over by a syndicate due to loan defaults, while MCM's net assets deteriorated to -57.3 million yuan, prompting a court application for bankruptcy restructuring [2] Group 3: Market Reaction - The company attributes its losses to changes in the macroeconomic environment and cyclical adjustments in the industry, but has not disclosed specific countermeasures [3] - There has been a 300% increase in investor inquiries regarding cash flow pressures and timelines for returning to profitability, but the company has responded uniformly by stating "as per the announcement information" [3] - The company's stock has dropped 37.6% this year, underperforming the high-end equipment sector index by 260 basis points, with institutional investor holdings decreasing by 14.2% since the beginning of the year [3]