Struggling turbine manufacturer Sinovel has reported a 160% increase in its losses as sales tumble.
Sinovel is being investigated by the securities commission Sinovel is being investigated by the securities commission
The company posted a net loss of CNY 699 million ($114 million) in the first nine months of the year, up from CNY 269 million a year before.
This led the manufacturer to announce that is expects to make a full-year loss. The widening losses came on the back of a 45% fall in sales to CNY 2.01 billion.
The Chinese wind market, where Sinovel makes most of its sales, has seen a dramatic contraction in recent years, with the industry being hit with numerous problems including a lack of grid connections for wind farms.
As the Chinese wind sector began to slow in 2011 following a five-year boom period, Sinovel continued to expand staff and build more factories, betting the company’s future on offshore wind power and the overseas market.
The gamble failed to pay off and Sinovel closed its offices in Canada, Belgium, Italy and the US in July.
In an an attempt to reverse its fortunes, the firm has introduced a number of measures, including downsizing, slashing financial costs, adjusting organisational structure and changing the company’s strategic priorities.
The company is still going ahead with its development of a 10MW turbine, for which it recently said the designed has been completed.
At the company’s height in 2011 its shares were worth CNY 39, but have now crashed to just CNY 4.9.