China

China

Sinovel eases pressure with profit for 2014

CHINA: Sinovel has said it will hit a net profit of CNY 19 million ($3 million) for 2014 despite forecasting a loss in October.

This conclusion was based on the firm's preliminary computation. A dedicated disclosure and explanation will be made by the chosen auditing office.

Sinovel is to appoint an accountancy firm to audit the figures at the company's first provisional shareholders' meeting of the year, scheduled for 12 February.

China's former number one turbine supplier reported deficits for 2012 and 2013. In May 2014 the Shanghai Stock Exchange placed the company's shares under special treatment and warned it of the possibility of being delisted if its annual net profit was again negative in 2014.

If the positive 2014 performance result is confirmed, Sinovel might apply to the SSE to lift the delist warning, the announcement said.

The turnaround was credited to intensified efforts to control costs, increased gross profits, the transfer of part of its debts to two other companies, collecting debts from some clients and quality compensation payments and debt forgiveness from some of its suppliers.

In the same announcement, Sinovel mentioned that it has again been approved by relevant government authority as a new and high-tech enterprise.

This means it will continue to enjoy government favourable treatment of paying income tax at a discounted rate of 15% for at least three more years.

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