China’s second-largest wind turbine maker Sinovel Announces It Is Under securities regulator CSRC Investigation which questions company financial data

05.30.2013 17:59

Sinovel Announces It Is Under CSRC Investigation

Wind turbine maker says it will coordinate with securities regulator, which questions company financial data

By staff reporter Cao Wenjiao

(Beijing) – Sinovel Wind Group Co. Ltd. announced on May 29 that it was being investigated by the China Securities Regulatory Commission (CSRC) over suspected violations of securities laws and regulations. Sinovel, one of the largest wind turbine manufacturers in the country, said it would coordinate with the CSRC in its investigation and disclose the required information. The CSRC’s Beijing bureau said on April 11 that some of Sinovel’s financial data was not accurate, and the profit the company reported for 2011 was inflated. On April 7, the company said there were accounting errors in its 2011 financial report, which originally gave a net profit figure of 776 million yuan. After correcting for accounting errors, the company said this figure was 168 million yuan too high. A source at the company said Sinovel would make a detailed announcement later. Sinovel listed in Shanghai in January 2011 and its issue price was 90 yuan per share. On May 29, the company’s closing share price was 5.76 yuan. Sinovel had operating revenue of 684 million yuan in the first three months of this year, down 40.98 percent compared to the same period in 2012, the company’s financial report shows. Its net profit was down 968.86 percent. Wei Wenyuan, Sinovel chairman and acting president, resigned on May 13. Company director Liu Hui resigned the same day.

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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 (, 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.

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