XINYU CITY, China and SUNNYVALE, Calif., May 21 /PRNewswire-FirstCall/ -- LDK Solar Co., Ltd. ("LDK Solar"; NYSE: LDK), a leading manufacturer of multicrystalline solar wafers, announced today its plan to file its 2008 annual report on Form 20-F with the Securities and Exchange Commission ("SEC"), including its 2008 audited financial statements, on May 22, 2009.
During the course of the preparation of its 2008 annual report, LDK Solar's management determined that a further write-down of approximately $87.5 million to its inventories and an additional provision for doubtful recoveries of approximately $12.3 million for its prepayments to suppliers at December 31, 2008 are required to properly adjust previously announced preliminary unaudited financial results for the fourth quarter and fiscal year ended December 31, 2008.
The additional write-down of inventories was primarily due to updated information about the estimated net realizable value of LDK Solar's inventories as at December 31, 2008. The additional provision for doubtful recoveries of prepayments to suppliers was also based on updated information about LDK Solar's suppliers' ability to honor existing contractual terms for delivery of product or refund of amounts paid.
The updated condensed consolidated balance sheet as of December 31, 2008 and the updated condensed consolidated statements of operations for the fourth quarter and fiscal year ended December 31, 2008 are included below. Additional information about its audited consolidated financial statements for the fiscal year ended December 31, 2008, including the notes thereto, can be found in the annual report on Form 20-F to be filed by LDK Solar with the SEC. An electronic copy of its 20-F annual report can also be found in the "Investor Relations" section of LDK Solar's website under "SEC Filings." Should you wish to be sent a hard copy of the complete annual report, please contact ir@ldksolar.com.
LDK Solar Co., Ltd.
Unaudited Condensed Consolidated Balance Sheets
(In US$'000, except share and per share data)
12/31/2008 9/30/2008 12/31/2007
Assets
Current assets
Cash and cash equivalents 255,523 347,762 83,470
Pledged bank deposits 83,383 115,028 135,950
Trade accounts receivable 94,733 40,286 3,767
Bills receivable 3,075 - -
Inventories 616,901 702,314 349,997
Prepayments to suppliers, net 71,214 294,855 138,193
Other current assets 68,123 47,800 29,825
Deferred income tax assets, net 44,690 1,965 546
Total current assets 1,237,642 1,550,010 741,748
Property, plant and equipment, net 1,697,203 1,138,539 336,763
Deposits for purchases of
property, plant and equipment 233,296 301,252 151,233
Intangible asset, net 1,037 1,074 1,096
Land use rights 99,162 97,818 29,259
Inventories to be processed beyond
one year - 7,678 29,981
Prepayments to suppliers expected
to be utilized beyond one year,
net 33,617 22,082 18,994
Pledged bank deposits -
non-current 49,686 49,476 -
Debt issuance costs, net 8,764 9,657 -
Investment in an associate 5,630 2,579 -
Other financial assets - - 525
Deposits relating to sales and
leaseback transactions 7,316 - -
Deferred income tax assets 375 1,052 387
Total assets 3,373,728 3,181,217 1,309,986
Liabilities and shareholders'
equity
Current liabilities
Short-term bank borrowings and
current installments of
long-term bank borrowings 666,200 451,940 264,101
Bills payable 11,406 - -
Trade accounts payable 124,066 59,165 18,032
Advance payments from customers,
current portion 256,411 342,879 141,223
Accrued expenses and other
payables 429,968 331,418 95,301
Due to a related party 4,359 - -
Other financial liabilities 18,545 500 3,357
Total current liabilities 1,510,955 1,185,902 522,014
Convertible senior notes 400,000 400,000 -
Long-term bank borrowings,
excluding current installments 154,252 159,465 25,125
Obligations under capital leases,
excluding current installments 40,083 - -
Advance payments from customers -
non-current 487,577 434,303 67,554
Other liabilities 3,485 2,172 2,222
Deferred income tax liability 1,468 - -
Total liabilities 2,597,820 2,181,842 616,915
Shareholders' equity
Ordinary shares: US$0.10 par value;
499,580,000 shares authorized;
113,501,049, 113,501,049 and
106,044,700 shares issued as of
December 31, 2008, September 30,
2008 and December 31, 2007,
respectively; 113,110,396,
113,109,250 and 106,044,700
shares outstanding as of
December 31, 2008, September
30, 2008 and December 31,
2007, respectively 11,311 11,311 10,604
Additional paid-in capital 446,327 441,913 486,253
Statutory reserve 29,676 18,697 18,697
Accumulated other comprehensive
income 83,314 93,610 31,481
Retained earnings 205,280 433,844 146,036
Total shareholders' equity 775,908 999,375 693,071
Total liabilities and
shareholders' equity 3,373,728 3,181,217 1,309,986
LDK Solar Co., Ltd.
Unaudited Condensed Consolidated Statements of Operations
(In US$'000, except per ADS data)
For the 3 Months Ended Fiscal Year
12/31/2008 9/30/2008 2008 2007
Net sales 426,612 541,819 1,643,495 523,946
Cost of goods sold,
including provisions for
inventory write-downs of
US$3,670 and US$303,257
during the three
months period ended
September 30 and December
31, 2008 respectively and
US$4,170 and US$311,999
during the years ended
December 31, 2007 and 2008
respectively (638,030) (418,906) (1,555,139)(353,709)
Gross (loss) / profit (211,418) 122,913 88,356 170,237
Selling expenses (1,139) (1,567) (3,786) (873)
General and administrative
expenses, including provisions
for doubtful recoveries of
prepayments to suppliers of
US$20,582 during the three
months period ended and year
ended December 31, 2008 (34,965) (10,904) (68,010) (19,360)
Research and development
expenses (4,114) (2,648) (7,570) (3,202)
Total operating expenses (40,218) (15,119) (79,366) (23,435)
(Loss) / income from
operations (251,636) 107,794 8,990 146,802
Other income/(expenses):
Interest income 979 1,872 5,875 4,109
Interest expense and
amortization of discount
on exchange notes and
convertible senior notes
issuance costs (8,284) (10,612) (34,347) (9,419)
Decrease in fair value of
warrants - - - 2
Foreign currency exchange
gain / (loss), net 4,950 (1,617) 14,495 (1,654)
Government subsidy 5,366 5,431 19,665 3,461
Change in fair value of
prepaid forward contracts - - 60,028 -
Others 567 (641) 656 -
(Loss) / earnings before income
tax (248,058) 102,227 75,362 143,301
Income tax benefit / (expenses) 30,473 (13,779) (5,139) 758
Net income (217,585) 88,448 70,223 144,059
Accretion of Series A - - - (860)
Accretion of Series B - - - (2,726)
Accretion of Series C - - - (1,351)
Net (loss) / income available
to ordinary shareholders (217,585) 88,448 70,223 139,122
Net (loss) / income per ADS,
Diluted $(2.04) $0.77 $0.64 $1.37
About LDK Solar (NYSE: LDK)
LDK Solar Co., Ltd. is a leading manufacturer of multicrystalline solar wafers, which are the principal raw material used to produce solar cells. LDK Solar sells multicrystalline wafers globally to manufacturers of photovoltaic products, including solar cells and solar modules. In addition, LDK Solar provides wafer processing services to monocrystalline and multicrystalline solar cell and module manufacturers. LDK Solar's headquarters and manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi Province in the People's Republic of China. LDK Solar's office in the United States is located in Sunnyvale, California.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this press release are forward-looking statements, including but not limited to, LDK Solar's ability to raise additional capital to finance its operating activities, the effectiveness, profitability and marketability of its products, the future trading of its securities, the ability of LDK Solar to operate as a public company, the period of time during which its current liquidity will enable LDK Solar to fund its operations, its ability to protect its proprietary information, the general economic and business environment and conditions, the volatility of LDK Solar's operating results and financial condition, its ability to attract and retain qualified senior management personnel and research and development staff, its ability to timely and efficiently complete its ongoing construction projects, including its polysilicon plants, and other risks and uncertainties disclosed in LDK Solar's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on information available to LDK Solar's management as of the date hereof and on its current expectations, assumptions, estimates and projections about LDK Solar and the solar industry. Actual results may differ materially from the anticipated results because of such and other risks and uncertainties. LDK Solar undertakes no obligation to update forward-looking statements to reflect subsequent events or circumstances, or changes in its expectations, assumptions, estimates and projections except as may be required by law.
