LDK Solar Announces an Update to Its Financial Results for the Fourth Quarter of 2009

XINYU CITY, China, and SUNNYVALE, Calif., May 10 /PRNewswire-FirstCall/ -- LDK Solar Co., Ltd. ("LDK Solar") (NYSE: LDK), a leading manufacturer of multicrystalline solar wafers and PV products, today announced an update to its fourth quarter 2009 financial results.

Subsequent to the announcement of preliminary unaudited financial results for the fourth quarter of 2009 on March 30, 2010, LDK Solar's management has obtained further information and documents, based on which it has determined that a provision for withholding income tax of approximately $6 million, a reclassification adjustment of $23.5 million between due to related parties and long term investments, and an adjustment to reduce income tax payable and deferred tax assets by $1.1 million at December 31, 2009 are required to properly adjust previously announced preliminary unaudited financial result for the fourth quarter of 2009.

The provision for withholding income tax and the reclassification adjustment were primarily due to the availability of further information confirming that the amount of US$23.5 million received by LDK Solar in December 2009 from its joint venture in Germany, which was previously recorded at due to related parties, which represented a distribution out of the joint venture's capital, and was subject to withholding income tax in Germany. The adjustment to income tax payable and deferred tax assets was based on an approval document obtained from the relevant PRC tax authority recently about tax deduction for certain expenses in the fiscal year ended December 31, 2009 instead of being deducted for tax purposes in future years.  

LDK Solar will apply for the refund of the withholding income tax when the tax has been paid and relevant documents required to support the refund application have been prepared.  

The updated condensed consolidated balance sheet as of December 31, 2009 and the updated condensed consolidated statements of operations for the fourth quarter of 2009 are included below.

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 multi crystalline ingots, wafers, modules, and engages in project development activities in selected segments of the PV market. Through its broad product offering of mono and multi crystalline 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.