Sinovel Wind Group Co., once China’s biggest supplier of wind turbines, said its loss more than doubled in the first half as orders fell and asset-impairment losses increased.
The net loss was 864.6 million yuan ($135 million) in the first six months ended June 30, compared with a revised net loss of 371.3 million yuan a year ago, the Chinese wind-turbine maker said in a statement to the Shanghai stock exchange. Sales tumbled 76 percent to 483.8 million yuan.
The loss spells a continuation of difficulties for Sinovel, which faced being delisted earlier this year after posting annual losses for the previous two years. While the turbine maker was able to stave off that threat after posting a small profit for fiscal 2014, it remains embroiled in several legal disputes.
Several senior officials resigned in April from the company, which is also being investigated by Chinese regulators. The company was sued in July by American Superconductor Corp. and two affiliate companies for infringing business secrets.
"The operation of the company still faces numerous difficulties," Beijing-based Sinovel said. Capital turnover is relatively hard and credit lines from banks haven’t recovered, Sinovel said.
Impairment losses rose 61 percent in the first half from a year earlier, mainly due to bad debt provisions over some account receivables from Huaneng Renewable Corp., Sinovel said.
Sinovel is struggling to secure new orders and rebuild customer confidence. The China Securities Regulatory Commission is still probing the company on suspected violations of securities laws and regulations, according to the earnings statement.
Financial strain has severely impacted component supply, production and turbine maintenance, Sinovel said.
Lead image credit: Sinovel