Sinovel falls short of profit despite revenue rise

CHINA: Sinovel has announced revenues of CNY 2.05 billion ($333 million) for the first half year, a 47.7% increase on the same period in 2013, but still failed to make a profit.

Sinovel's 3MW turbine

The performance was below expectations, the company said.

Sinovel has been the subject of a number of negative stories over the past year. These included an  unresolved investigation by the China Securities Regulatory Commission into the firm's accounting error and other major unpredictable factors in operations. The delay of payments by clients posed another major difficulty.

In the 1H period Sinovel did not sign or win any new orders. At present, the company has pipeline orders totalling 3.08GW, breaking down into 2.8GW of domestic orders and 0.31GW overseas orders. This includes around 825MW of its 3MW turbine.

Total unconfirmed orders are 8.86GW, about 5.07GW of which are for 3MW turbines.

Sinovel claims to be the only manufacturer in China capable of mass delivering offshore wind turbines. In 2010 it completed installing 34 3MW turbines in China's first demonstration offshore wind farm in Shanghai. The facility has been in operation for nearly four years.

The company launched its IPO on the Shanghai Stock Exchange in January 2011. It has reported losses in the past two years. If the figure remains red at the end of this year, the public company is very likely to be delisted on the stock market.

On 30 April, Sinovel's two bonds issued in December 2011 were suspended for trading. The company announced its subsidiary Sinovel (Jiangsu) Wind Power S&T will buy back a portion of one of the bonds.