Sinovel deeper in red as sales fall
Chinese wind turbine manufacturer Sinovel said it is on course to post another full-year loss, as it admitted that its high-profile problems have had “a serious impact” on its business.
The Beijing-based company recorded a 699m yuan ($115m) net loss from January to September, from a 269m yuan deficit during the first nine months of 2012, against a background of falling sales.
The company's nine-month operating income was 2.01bn yuan, down from 3.6bn yuan. That represents a drop of 44.6%.
It partly attributed its poor performance to the short-term challenges such as grid integration and subsidy payment delays, which have slowed China’s wind expansion.
But Sinovel also acknowledged that recent internal troubles have “had a serious impact” on sales, as well as its ability to secure finance.
Sinovel, once China’s leading supplier of wind turbines and formerly the second-biggest manufacturer in the world, has faced an investigation by Chinese financial authorities.
Analysts say it also faces a tough slog to recover from problems such as a legal battle with former customer AMSC and questions about its core products.
Speaking at a recent wind event in Beijing, senior Sinovel officials insisted the company could stage a comeback based on the platform of its offshore business.