LDK Solar Announces Update to Its Fourth Quarter 2009 Financial Results
XINYU CITY, China and SUNNYVALE, Calif., June 30 /PRNewswire-FirstCall/ -- LDK Solar Co., Ltd. ("LDK Solar"; NYSE: LDK), a leading manufacturer of multicrystalline solar wafers and PV products, announced today the filing of its 2009 annual report on Form 20-F with the Securities and Exchange Commission, including its 2009 audited financial statements.
During the course of the preparation of LDK Solar's 2009 annual report, LDK Solar's management determined that an additional provision for doubtful recoveries of approximately $12.6 million for its accounts receivable and prepayment to suppliers at December 31, 2009 is required to properly adjust previously announced preliminary unaudited financial results for the fourth quarter ended December 31, 2009.
The additional provision for doubtful recoveries of accounts receivable and prepayments to suppliers was based on updated information about its customers' repayment ability and its suppliers' ability to honor existing contractual terms for delivery of products or refund of amounts paid.
The updated condensed consolidated balance sheet as of December 31, 2009 and the updated condensed consolidated statements of operations for the fourth quarter ended December 31, 2009 are included below. Additional information about LDK Solar's audited consolidated financial statements for the fiscal year ended December 31, 2009, including the notes thereto, can be found in the annual report on Form 20-F to be filed by LDK Solar with the SEC. Copies of such 6-K report and 20-F annual report can also be found in the "Investor Relations" section of LDK Solar website under "SEC Filings." Should you wish to be sent a hard copy of the complete annual report, please contact [email protected].
LDK Solar Co., Ltd. Unaudited Condensed Consolidated Balance Information (In US$'000, except share and per share data) |
||||
12/31/2009 |
9/30/2009 |
|||
Assets |
||||
Current assets |
||||
Cash and cash equivalents |
384,761 |
67,753 |
||
Pledged bank deposits |
68,913 |
72,665 |
||
Trade accounts receivable, net |
209,622 |
247,212 |
||
Bills receivable |
8,270 |
5,208 |
||
Inventories |
432,193 |
392,409 |
||
Insurance recoveries receivable |
6,000 |
- |
||
Prepayments to suppliers, net |
40,784 |
74,063 |
||
Due from related parties |
37,615 |
15,309 |
||
Other current assets |
150,697 |
154,098 |
||
Deferred income tax assets, net |
47,590 |
69,909 |
||
Total current assets |
1,386,445 |
1,098,626 |
||
Property, plant and equipment, net |
2,608,725 |
2,480,554 |
||
Deposits for purchases of property, plant and equipment |
32,529 |
56,742 |
||
Intangible asset, net |
1,018 |
1,035 |
||
Land use rights |
175,533 |
164,422 |
||
Inventories to be processed beyond one year |
10,947 |
25,314 |
||
Prepayments to suppliers expected to be utilized beyond one year, net |
26,482 |
30,624 |
||
Pledged bank deposits – non-current |
50,797 |
50,382 |
||
Debt issuance costs, net |
4,909 |
5,813 |
||
Investment in an associate and a joint venture |
51,884 |
74,540 |
||
Deposits relating to sales and leaseback transactions |
13,921 |
7,322 |
||
Deferred income tax assets |
16,913 |
16,907 |
||
Other non-current assets |
4,106 |
494 |
||
Total assets |
4,384,209 |
4,012,775 |
||
Liabilities and equity |
||||
Current liabilities |
||||
Short-term bank borrowings and current installments of long-term bank borrowings |
980,359 |
1,103,754 |
||
Bills payable |
97,872 |
103,065 |
||
Trade accounts payable |
191,240 |
154,438 |
||
Advance payments from customers, current portion |
199,075 |
488,677 |
||
Accrued expenses and other payables |
656,697 |
537,006 |
||
Due to related parties |
38,782 |
32,628 |
||
Income tax payable |
14,741 |
12,409 |
||
Obligations under capital leases – current portion |
33,380 |
19,241 |
||
Other financial liabilities |
7,880 |
1,345 |
||
Total current liabilities |
2,220,026 |
2,452,563 |
||
Convertible senior notes |
400,000 |
400,000 |
||
Debt discount |
(8,358) |
(9,898) |
||
Long-term bank borrowings, excluding current installments |
408,062 |
298,918 |
||
Obligations under capital leases, excluding current installments |
50,664 |
25,576 |
||
Advance payments from customers – non-current |
177,773 |
177,967 |
||
Other liabilities |
250,561 |
64,821 |
||
Deferred income tax liability |
8,545 |
7,170 |
||
Total liabilities |
3,507,273 |
3,417,117 |
||
Total equity |
876,936 |
595,658 |
||
Total liabilities and shareholders' equity |
4,384,209 |
4,012,775 |
||
LDK Solar Co., Ltd. Unaudited Condensed Consolidated Statements of Operations Information (In US$'000, except per ADS data) |
||||
For the 3 Months Ended |
||||
12/31/2009 |
9/30/2009 |
|||
Net sales |
304,590 |
281,888 |
||
Cost of goods sold |
(274,345) |
(225,118) |
||
Gross profit (loss) |
30,245 |
56,770 |
||
Selling expenses |
(1,533) |
(1,549) |
||
General and administrative expenses |
(33,646) |
(16,110) |
||
Research and development expenses |
(1,168) |
(2,007) |
||
Legal settlements, net of insurance recoveries |
(10,000) |
- |
||
Total operating expenses |
(46,347) |
(19,666) |
||
(Loss) Profit from operations |
(16,102) |
37,104 |
||
Other income (expenses): |
||||
Interest income |
625 |
696 |
||
Interest expense and amortization of convertible senior notes issuance costs and debt discount |
(14,434) |
(11,365) |
||
Foreign currency exchange (loss) gain, net |
(1,782) |
925 |
||
Government subsidy |
9,501 |
13,819 |
||
Others |
1,907 |
(5,236) |
||
(Loss) Profit before income tax |
(20,285) |
35,943 |
||
Income tax expense |
(3,708) |
(6,562) |
||
Net (loss) income after taxes before minority interest |
(23,993) |
29,381 |
||
(Profit) Loss attributable to non-controlling interest |
(289) |
60 |
||
Net (loss) income attributable to holders of ordinary shares |
(24,282) |
29,441 |
||
Net income (loss) per ADS, Diluted |
$ (0.22) |
$ 0.27 |
||
About LDK Solar (NYSE: LDK)
LDK Solar Co., Ltd. (NYSE: LDK) is a leading vertically integrated manufacturer of photovoltaic (PV) products and the world's largest producer of multicrystalline wafers. LDK Solar manufactures polysilicon, mono and multicrystalline ingots, wafers, modules, and engages in project development activities in selected segments of the PV market. Through its broad product offering of mono and multicrystalline solar wafers and modules, LDK Solar provides its customers with a full spectrum of solutions. 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. For more information about our company and products, please visit www.ldksolar.com
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.
SOURCE LDK Solar Co., Ltd.
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