Sinovel bonds suspended on second yearly loss
CHINA: Trading of Sinovel bonds have been suspended on the Shanghai Stock Exchange after the company reported a loss for the second consecutive year.
The Chinese manufacturer posted a loss of CNY 3.45 billion ($551 million) in 2013, up from CNY 583 million the year before.
However, the company did report a surprise upturn in first quarter of 2014, making a narrower loss of CNY 171.2 million in the first quarter, compared with a CNY 248.5 million loss a year earlier. Revenue climbed to almost double at CNY 1.44 billion.
But this is measured against an already low base, with the company reporting a 58% fall in revenue in 2012.
Trading in the company's bonds were suspended for seven days as the stock exchange decides whether to remove them from trading due to rules concerning losses over consecutive years.
The stock exchange will also look at whether it should delist the company's shares from trading.
The annual report said Sinovel received 303MW of new orders in 2013. Sinovel president Liu Zhengqi told the media installation of wind turbines is expected to reach 200MW this year.
Sinovel has more than financial woes to concern itself with. It is being investigated by the China Securities Regulatory Commission, the country's security market watchdog, for alleged breaches of security market regulations related to accounting errors contained in its 2011 annual report.