Motors said that Dechang Motor is one of the largest manufacturers of micro and special motors in the mainland. The group's sales in the first half of the 2013 fiscal year were $1.04 billion, 7.2% lower than the bank's forecast, and its net profit was $85 million, 18.3% lower than the bank's forecast. The profit performance was disappointing, mainly due to a decline in European performance, resulting in a negative impact on sales and net profit. The bank cut sales by 8 per cent and 11 per cent respectively for fiscal years 2013 and 2014 to reflect a weaker-than-expected sales environment in Europe and lowered net profit by 16 per cent and 13 per cent for fiscal years 2013 and 14, respectively, and the target price was lowered from Rmb6.30 to Rmb6.1. this is equivalent to 13.7 times the 2014 forecast price-to-earnings ratio and 1.7 times the price-to-book ratio, maintaining the "overweight" rating.

Motors said that the downside risks of Dechang Electric are mainly due to the rising cost of raw materials, uncertainty about the sustainable recovery of the US economy, the ability to penetrate the mainland market, the appreciation of the renminbi and rising costs caused by commodity prices.