Sinovel reports 197% earnings fall

CHINA: Sinovel has reported a loss of CNY 582 million ($92 million) in 2012, representing a 197% year on year fall in earnings from its CNY 598 million net profits in 2011.

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Revenue was  also down, by 57.7% to CNY 4 million in 2012. Sinovel's total assets amounted to CNY 28.7 billion by the end of last year, down 15.9% from 2011's figures.

Sinovel said it attributed the poor performance to the slow growth in the Chinese wind power market and low turbine prices.

Profits were also adversely affected by the firm's attempt to address the cooling domestic market through various measures to enhance marketing capacity, cement domestic competitiveness and explore overseas market.

These measures all increased expenses by big margins and, in turn, affected Sinovel's profits in 2012, the firm's annual report claims.

In 2012, Sinovel had 1,203MW new turbines installed in China, representing 9.3% of the country's wind turbine market share.

Sinovel said it was exerting all efforts to explore the overseas market. It sold CNY 472 million worth of turbines to overseas buyers in 2012, which made up 11.8% of the total sales revenues, compared with less than 1% in 2011.

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