Sinovel pledges tougher auditing
Sinovel will introduce new internal regulations in a bid to prevent the recurrence of accounting errors, it told investors.
The troubled Chinese wind turbine group has vowed to conduct frequent internal inspections and monitor inventory more effectively, while providing more intensive training for its mid-level managers.
In a series of Chinese-language statements to the Shanghai Stock Exchange, Sinovel also flagged plans to introduce new methods for verifying key financial documents.
It has also chosen a new chief auditor.
The changes follow revelations that Sinovel’s 2011 earnings were inflated by 22% due to accounting errors.
The Beijing-based manufacturer has been left reeling by a string of problems in recent months.
In May, the China Securities Regulatory Commission (CSRC) began formally investigating the company over alleged violations of national securities regulations.
Around the same time, former chairman and acting president Wei Wenyuan suddenly resigned for unspecified reasons, after just two months on the job.
In June, two senior Sinovel executives and the group’s subsidiary in Houston, Texas, were indicted by a US grand jury over claims that it illegally used turbine software code owed by AMSC.
The US power technology group is also pursuing Sinovel through the courts in China over the allegations.