Chongqing Machinery & Electric Company Ltd. announced that the unaudited annual results of the group for the year ended 31 December 2012 is expected to record a decline as compared to the corresponding period in 2011. Such decline is mainly due to the following reasons: (i) in 2012, with the world economic situation getting increasingly complicated and the European debt crisis still unresolved, China was confronted with increasing risk of slower economic growth and economic downturn. Accordingly, the state reduced its investment projects, with smaller investment scale; (ii) the slower economic growth led to insufficient market demands, the decline in orders, increased competition and downward prices; and (iii) the increase in labour costs.