Sinovel sees Q1 improvement
Sinovel confirmed its second straight annual net loss with a 3.45bn yuan ($550.7m) deficit in 2013, from a 582.7m yuan loss a year earlier, but recorded a narrower first-quarter loss on unexpectedly strong wind turbine sales.
The troubled Chinese manufacturer recorded a net loss of 171.2 million yuan in the first quarter of 2014, marking a sharp improvement from a year earlier, when it posted a 248.5 million yuan deficit.
However, the Shanghai Stock Exchange (SSE) halted trading of 2.8 billion yuan of Sinovel’s bonds on Wednesday in response to the repeat annual loss. It now has one week to determine whether to maintain the suspension.
Earlier this month, Sinovel said in a filing to the SSE that a second straight yearly loss could trigger a suspension.
In January, Sinovel warned that the SSE was considering delisting its shares. A month later, it revealed that it would scale back its operations due to a decline in orders.
The company was once China’s largest supplier of wind turbines, but slid to seventh place in 2013, supplying just 896MW to claim 5.6% of its home market. It installed 1.77GW in China in 2012.