The BSSA letter calls for Sinovel's attention to a number of issues. First, the firm is accused of back selling two bonds totalling CNY 2.6 billion (424 million), which are to mature at the end of the year, against a cash balance of only around CNY 1.28 billion on 20 October.
Second, Sinovel will be delisted on the SSE if it reports a negative net profit for this year. In its Q3 report, Sinovel was downbeat about its chances of hitting this target. It is also struggling to claim money owed by customers.
The BSSA said Sinovel's current composite board structure is contrary to company regulations. It also demanded the firm intensify its efforts to rectify its problems and make itself more publicly accountable.
Sinovel is expected to submit a work plan in response to the BSSA letter within ten days.
In the same announcement, Sinovel admitted receiving a letter of supervision work from the SSE, which outlined the same concerns as the BSSA.
.png)
.png)
