LDK Solar Announces Update to Its Fourth Quarter 2009 Financial Results

Jun 30, 2010, 16:15 ET from LDK Solar Co., Ltd.

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 ir@ldksolar.com.

    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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