Core Viewpoint - The company has decided to file for bankruptcy for its wholly-owned subsidiary, Machining Centers Manufacturing S.p.A (MCM), due to continuous losses and liquidity issues, aiming to protect the interests of the parent company and its shareholders [1][2]. Group 1: Financial Performance and Impact - MCM has been a source of losses for the company, with a net loss of 138 million RMB projected for the entire year of 2024 and a further loss of nearly 40 million RMB in the first quarter of 2025 [1]. - The net asset value of MCM turned negative in 2024, reaching -57.33 million RMB by the end of March 2025 [1]. - The bankruptcy filing is expected to improve the overall financial structure of the company by removing the loss-making asset from its balance sheet, thereby enhancing the consolidated net asset level and reducing operational burdens [2]. Group 2: Strategic Decisions and Future Outlook - The company has made significant investments in MCM over the years, attempting various strategies for business improvement, including management optimization and financial support, but these efforts have not reversed the losses [1]. - The bankruptcy application is pending formal acceptance by the Italian court, introducing a degree of uncertainty, but the company is committed to fulfilling its information disclosure obligations to protect shareholder rights [2].