Chairman of Sinovel has resigned as of one of the country’s largest makers of wind turbines struggles amid an industry downturn

05.15.2013 18:20

Head of Sinovel Resigns amid Company Struggles

Wei Chiyuan steps down as chairman after pursuing reforms that could not keep firm profitable during industry downturn

By staff reporter Pu Jun

(Beijing) – The chairman and acting president of Sinovel Wind Energy Group Co. has resigned as of one of the country’s largest makers of wind turbines struggles amid an industry downturn.Wei Chiyuan submitted a letter of resignation on May 13, the company said. Company director Liu Hui also resigned.

Wang Yuan will take over as Sinovel chairman and Liu Zhengqi becomes president. Wang has been director of Sinovel’s board since July 2008. He is also the vice president of Dalian Huarui Heavy Industry Group Co., a subsidiary of Sinovel’s largest shareholder, Dalian DHI DCW Group. Liu has been Sinovel’s vice president since 2006.

Wei was named Sinovel’s acting president, replacing Han Junliang, in August 2012. In March, he was appointed chairman.

Sources close to Sinovel said Wei has led a series of reforms to the company’s operations and management, including reorganizing the company’s structure and closing weak subsidiaries. The company also planned to set up an subsidiary this year to handle investments in new wind power projects and other industries.

However, such efforts have failed to boost Sinovel’s performance amid a market downturn. A company report showed that Sinovel’s revenue was 4 billion yuan last year, down 58 percent from 2011. It had a net loss of 582 million yuan a year after recording a net profit of 598 million.

Bloomberg statistics show that Sinovel’s market share in China fell to 10 percent in 2012. In 2011, it was more than 20 percent.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: