CNMEC Precision Machinery plans to liquidate and deregister its wholly-owned subsidiary, Fuyang Bearing Research Institute, to optimize resources and focus on core business.

[Finance.com] China National Machinery Industry Corporation (Stock Code: 002046, referred to as “China Machinery Precision Engineering”) announced on March 20th that the company’s board of directors has approved the liquidation and deregistration of its wholly owned subsidiary, Fuyang Axle Research Bearing Co., Ltd. (“Fuyang Axle Research”). This deregistration aims to promote reform and adjustment, optimize resource allocation, and focus on core business development.

The announcement states that Fuyang Axle Research was established in 2012 with a registered capital of 100 million yuan, fully owned by China Machinery Precision Engineering. The company mainly engaged in the research, development, and sales of bearings and bearing units, as well as equipment and factory leasing. However, due to changes in circumstances, Fuyang Axle Research has been suspended since December 2013. The factory buildings have not been completed, and the company has not engaged in actual production or operations.

Financial data shows that Fuyang Axle Research has been continuously loss-making in recent years. In 2024, net loss was 89.89 million yuan, and in the first three quarters of 2025, net loss was 3.78 million yuan. The company has had no operating income for many years. As of the end of September 2025, the company’s total assets were 67.23 million yuan, total liabilities 51.31 million yuan, and net assets 15.92 million yuan.

China Machinery Precision Engineering stated that the liquidation and deregistration of Fuyang Axle Research is an important measure to accelerate reform and adjustment and to improve governance of loss-making subsidiaries. After deregistration, Fuyang Axle Research will no longer be included in the company’s consolidated financial statements. This will not adversely affect the company’s overall operations and development, nor harm the interests of the company and all shareholders. The announcement also notes that this deregistration does not involve personnel arrangements, and Fuyang Axle Research does not have any pledges, mortgages, judicial seals, freezes, or other rights restrictions, nor any ownership disputes or potential disputes.

The deregistration was approved at the company’s 8th Board of Directors’ 16th meeting on March 19, 2026. It does not involve related-party transactions or constitute a major asset restructuring and does not require shareholder approval.

Analysts pointed out that this cleanup of long-idle and continuously loss-making subsidiaries will help optimize asset structure, concentrate resources on core businesses, and improve overall operational efficiency and profitability, aligning with the company’s long-term strategic development.

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