Sinovel faces $495m loss for 2013

Troubled Chinese turbine maker Sinovel may be set to record its second straight annual net loss

Troubled Chinese turbine maker Sinovel may be set to record its second straight annual net loss

Sinovel expects its 2013 net loss to balloon to 3bn yuan ($495.4m), marking its second straight year of red ink.

The anticipated loss is due to a decline in total installations, delayed orders and postponed payments, it said in a statement to the Shanghai Stock Exchange (SSE).

Sinovel also warned that its stock could be delisted under SSE rules after a second straight loss, and its bonds may be suspended, also due to stock exchange regulations.

The wind company did not specify a date for release of its final full-year results statement.

The Beijing-based company suffered a net loss of roughly 583m yuan in 2012. It first raised the possibility of a 2013 deficit in October, shortly after it posted a 699m yuan ($115m) net loss for the January to September period.

At the time, it acknowledged that a series of high-profile problems have had “a serious impact” on its operations.

Earlier this month, Sinovel said in an SSE filing that the China Securities Regulatory Commission (CSRC) had launched a criminal investigation against it for suspected violation of securities laws.

The company – formerly China’s largest supplier of wind turbines and at one point the global number-two – did not disclose further details.

In June,  a US grand jury charged Sinovel, two company executives and an ex-employee of former key supplier AMSC with stealing trade secrets from the Massachusetts-based power technology group.

AMSC is also battling Sinovel through the Chinese court system for allegedly stealing its intellectual property.

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