Chongqing Machinery & Electric Company Ltd. provided earnings guidance for the six months ended June 30, 2013. For the year to date period, the company announced that the unaudited interim results of the group for the six months ended June 30, 2013 are expected to record a decline as compared to the corresponding period in 2012, but an increase as compared to the second half of 2012. Such decline is mainly due to the following reasons: In the first half of 2013, as the world economic recovery was sluggish with insufficient growth momentum and China's economy was in the grip of structural slowdown, China was confronted with slowing investment, lukewarm domestic demand and shrinking exports; and Economic slowdown led to insufficient market demand, the decline in orders placed with the Group, intensified competition and lowered prices.