Sinovel Wind Reports Net Loss on Slower Growth, Regulatory Probe
Sinovel Wind Group Co. (601558), China’s third-biggest maker of wind turbines, reported a first-half loss as industry growth slowed and a regulatory investigation hampered its efforts to expand market share.
The net loss was 457.9 million yuan ($75 million), compared with net income of 11.2 million yuan a year earlier, Beijing-based Sinovel said today in a filing to the Shanghai stock exchange. Sales tumbled 55 percent to 1.39 billion yuan.
China has slowed the development of new wind farms to ease grid congestion, intensifying competition to secure orders. Sinovel is also subject to a probe by the China Securities Regulatory Commission over a 2011 accounting error, which it says hurts its ability to collect payments and add business.
The stock fell 0.5 percent to close at 4.32 yuan in Shanghai trading before the results were released.
Sinovel forecast a loss for the first nine months of the year, saying “unfavorable factors that affect the industry development still continue.”
China, the world’s biggest wind market, may add 13 gigawatts of turbines this year, 6 percent less than in 2012, Bloomberg New Energy Finance estimates show. Its largest turbine makers by installed capacity are Xinjiang Goldwind Science & Technology Co. and Guodian United Power Technology Co.
Sinovel was notified by the regulator in May that it would start a probe into possible violation of securities rules. Two months previously, the company had revised down its 2011 profit by 22 percent to 607.4 million yuan, citing an accounting error.
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