LDK SOLAR CO (NYSE:LDK)

WEB NEWS

Monday, May 11, 2015

Comments & Business Outlook

LDK SOLAR CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in US$ thousands, except per share data)

 

                         
     Year ended
December 31,
2012
    Year ended
December 31,
2013
    Year ended
December 31,
2014
 

Net sales

                        

Wafers (includes contract cancellation revenue of US$ 92,233, US$ 11,193 and US$ 58,713 during the years ended 2012, 2013 and 2014 respectively)

     344,846        331,023        435,911   

Processing of PV products on behalf of others

     1,092        —         —     

Modules

     276,195        153,703        188,825   

Silicon and other materials

     93,197        35,995        17,738   

Construction contracts

     73,499        42,629        27,923   

Others

     74,053        34,896        9,858   
    

 

 

   

 

 

   

 

 

 

Total net sales

     862,882        598,246        680,255   
    

 

 

   

 

 

   

 

 

 

Cost of goods sold

                        

Wafers

     (463,551     (358,974     (406,966

Processing of PV products on behalf of others

     (1,129     —         —     

Modules

     (353,389     (187,801     (175,276

Silicon and other materials

     (251,042     (187,693     (102,006

Construction contracts

     (66,173     (45,398     (20,839

Others

     (80,190     (44,730     (9,858
    

 

 

   

 

 

   

 

 

 

Total cost of goods sold, including inventory write-downs of US$ 180,900, US$ 70,707 and US$ 20,812 and (reversal of provisions) provisions for loss on firm purchase commitment of US$ 10,675, US$ (824) and US$ nil during the years ended December 31, 2012, 2013 and 2014 respectively

     (1,215,474     (824,596     (714,945
    

 

 

   

 

 

   

 

 

 

Gross loss

     (352,592     (226,350     (34,690

Selling expenses

     (45,008     (18,737     (14,742

General and administrative expenses, including provisions (reversal of provisions) for doubtful recoveries of receivable of US$ (9,645), US$46,281 and US$ (2,569) during the years ended 2012, 2013 and 2014 respectively

     (183,908     (317,541     (92,972

Research and development expenses

     (17,781     (17,467     (16,769

Loss on write-down of assets held for sale to fair value less cost to sell

     (74,178     —         —     

Impairment loss on intangible assets

     (25,255     —         —     

Impairment loss on property, plant and equipment

     (109,027     (756,239     —     
    

 

 

   

 

 

   

 

 

 

Loss from operations

     (807,749     (1,336,334     (159,173

Other income (expenses):

                        

Interest income

     12,153        5,295        3,781   

Interest expense and amortization of debt issuance costs and debt discount/premium

     (258,971     (259,876     (328,898

Foreign currency exchange loss, net

     (6,403     (20,680     (3,604

Government subsidy

     4,242        1,804        599   

Gain on troubled debt restructuring

     10,510        4,645        96,495   

Equity in (loss)/gain of associates

     (2,295     (8,057     226   

(Loss)/gain on deconsolidation of former subsidiaries

     —          (2,687     118,315   

Gain on changes in equity interests in an associate

     —          —          19,873   

Gain on sale of available-for-sale equity security

     —          —          10,897   

Others, net

     5,298        7,748        2,178   
    

 

 

   

 

 

   

 

 

 

Loss before income taxes

     (1,043,215     (1,608,142     (239,311

Income tax expense

     (8,844     (29,069     (30,373
    

 

 

   

 

 

   

 

 

 

Net loss

     (1,052,059     (1,637,211     (269,684

Loss attributable to non-controlling interests

     39,125        20,225        2,812   

Loss attributable to redeemable non-controlling interests

     41,963        6,918        —     
    

 

 

   

 

 

   

 

 

 

Net loss attributable to LDK Solar CO., Ltd. shareholders

     (970,971     (1,610,068     (266,872

Accretion to redemption value of redeemable non-controlling interests

     (153,984     (33,077     —     
    

 

 

   

 

 

   

 

 

 

Net loss available to LDK Solar CO., Ltd. shareholders

     (1,124,955     (1,643,145     (266,872
    

 

 

   

 

 

   

 

 

 

Basic loss per share

     (8.62     (9.18     (1.36
    

 

 

   

 

 

   

 

 

 

Diluted loss per share

     (8.62     (9.18     (1.36
    

 

 

   

 

 

   

 

 

 

Management Discussion and Analysis

Net sales. For the year ended December 31, 2014, our net sales were $680.3 million, representing a increase of $82.1 million, as compared to our net sales of $598.2 million for the year ended December 31, 2013. This increase was due primarily to higher shipment volume for our wafers, modules and cells, partially offset by a decrease of other sales. Solar wafer and module sales constituted the two largest components of our net sales, accounting for approximately 55.3% and 25.7%, respectively, for the year ended December 31, 2013, and approximately 64.1% and 27.8%, respectively, for the year ended December 31, 2014.

The increase in our wafer sales was mainly attributable to an increase in our shipments from 1,483.5 MW for the year ended December 31, 2013 to 1,685.3 MW for the year ended December 31, 2014, while the average selling price of our wafers kept stable at $0.22 per watt during the years ended December 31, 2013 and 2014. We also recorded cancellation revenue of $58.7 million for the year ended December 31, 2014, as compared to $11.2 million for the year ended December 31, 2013. The increase in our module sales was mainly attributable to an increase in our shipments from 257.3 MW for the year ended December 31, 2013 to 312.5 MW for the year ended December 31, 2014 while the average selling price of our modules kept stable at $0.60 per watt during the years ended December 31, 2013 and 2014. The decrease in sales of our silicon and other materials was mainly attributable to the deconsolidation of Sunways, which provided approximately $10 million in sales of other materials during the year ended December 31, 2013. The decrease in sales of our EPC services for the year ended December 31, 2014 was primarily due to the deconsolidation of our former subsidiary, SPI, in the third quarter of 2014.

On a segment basis, net sales for our polysilicon segment were $4.0 million while net sales for our other PV products segment were $676.2 million for the year ended December 31, 2014, as compared to net sales of $0.6 million for our polysilicon segment and $597.6 million for our other PV products segment for the year ended December 31, 2013. The above net sales have excluded our inter-segment sales between the polysilicon segment and the other PV products segment. The increase in net sales for our polysilicon segment was mainly attributable to the suspension of our polysilicon production since the third quarter of 2012 due to significant reduction in market demand and depressed market prices of PV products until July 2014 when we restarted the production of our Mahong Plant. We test-ran our hydrochlorination facilities installed on one of the polysilicon production lines at the Mahong Plant in September 2014 and completed the installation of all of our hydrochlorination facilities at our Mahong Plant in December 2014. The increase in year-on-year net sales for our other PV products segment was mainly attributable to an increase in our shipment volume for our wafers and modules.

Net loss available to our shareholders. For the year ended December 31, 2014, net loss available to our ordinary shareholders was $266.9 million, as compared to a net loss of $1,643.1 million available to our ordinary shareholders for the year ended December 31, 2013.


Wednesday, November 5, 2014

Comments & Business Outlook

LDK SOLAR CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in US$ thousands, except per share data)

 

                         
     Year ended
December 31,
2011
    Year ended
December 31,
2012
    Year ended
December 31,
2013
 

Net sales

                        

Wafers (includes contract cancellation revenue of US$ 27,826, US$ 92,233 and US$ 11,193 during the years ended 2011, 2012 and 2013 respectively)

     1,059,085        344,846        331,023   

Processing of PV products on behalf of others

     27,589        1,092        —     

Modules

     720,863        276,195        153,703   

Silicon and other materials

     239,897        93,197        35,995   

Construction contracts

     52,917        73,499        42,629   

Others

     57,462        74,053        34,896   
    

 

 

   

 

 

   

 

 

 

Total net sales

     2,157,813        862,882        598,246   
    

 

 

   

 

 

   

 

 

 

Cost of goods sold

                        

Wafers

     (983,163     (463,551     (358,974

Processing of PV products on behalf of others

     (21,654     (1,129     —     

Modules

     (885,884     (353,389     (187,801

Silicon and other materials

     (209,159     (251,042     (187,693

Construction contracts

     (47,152     (66,173     (45,398

Others

     (50,462     (80,190     (44,730
    

 

 

   

 

 

   

 

 

 

Total cost of goods sold, including inventory write-downs of US$ 305,175, US$ 180,900 and US$ 70,707 and provisions (reversal of provisions) for loss on firm purchase commitment of US$ 27,637, US$ 10,675 and US$ (824) during the years ended December 31, 2011, 2012 and 2013 respectively

     (2,197,474     (1,215,474     (824,596
    

 

 

   

 

 

   

 

 

 

Gross loss

     (39,661     (352,592     (226,350

Selling expenses

     (43,192     (45,008     (18,737

General and administrative expenses, including provisions (reversal of provisions) for doubtful recoveries of prepayments to suppliers, receivable and other assets of US$ 174,315, US$ (1,210) and US$ 188,264 during the years ended 2011, 2012 and 2013 respectively

     (330,883     (183,908     (317,541

Research and development expenses

     (46,510     (17,781     (17,467

Loss on write-down of assets held for sale to fair value less cost to sell

     —          (74,178     —     

Impairment loss on intangible assets

     —          (25,255     —     

Impairment loss on property, plant and equipment

     —          (109,027     (756,239
    

 

 

   

 

 

   

 

 

 

Loss from operations

     (460,246     (807,749     (1,336,334

Other income (expenses):

                        

Interest income

     7,365        12,153        5,295   

Interest expense and amortization of debt issuance costs and debt discount

     (189,938     (258,971     (259,876

Foreign currency exchange loss, net

     (2,040     (6,403     (20,680

Government subsidy

     33,698        4,242        1,804   

Gain on trouble debt restructuring

     —          10,510        4,645   

Equity in loss of associates and a jointly-controlled entity

     (787     (2,295     (8,057

Others, net

     7,135        5,298        5,061   
    

 

 

   

 

 

   

 

 

 

Loss before income taxes

     (604,813     (1,043,215     (1,608,142

Income tax expense

     (4,141     (8,844     (29,069
    

 

 

   

 

 

   

 

 

 

Net loss

     (608,954     (1,052,059     (1,637,211

(Earnings) loss attributable to non-controlling interests

     (393     39,125        20,225   

(Earnings) loss attributable to redeemable non-controlling interests

     (11,522     41,963        6,918   
    

 

 

   

 

 

   

 

 

 

Net loss attributable to LDK Solar CO., Ltd. shareholders

     (620,869     (970,971     (1,610,068

Accretion to redemption value of redeemable non-controlling interests

     (34,590     (153,984     (33,077
    

 

 

   

 

 

   

 

 

 

Net loss available to LDK Solar CO., Ltd. shareholders

     (655,459     (1,124,955     (1,643,145
    

 

 

   

 

 

   

 

 

 

Basic loss per share

     (4.90     (8.62     (9.18
    

 

 

   

 

 

   

 

 

 

Diluted loss per share

     (4.90     (8.62     (9.18
    

 

 

   

 

 

   

 

 

 

Management Discussion and Analysis

Net Sales

We derive revenue primarily from the sale of our PV products, provision of related services and EPC services. We sell our wafers to cell and module producers, and we sell our modules to developers, distributors and system integrators. We provide processing services to customers who supply silicon materials and/or multicrystalline or monocrystalline ingots to us for processing into wafers. In addition, we sell polysilicon and silicon materials, which include ingots as well as silicon scraps. We also provide EPC services to solar farm projects in China, Europe and the U.S. The revenue from sale of wafers also includes the contract cancellation revenue from termination of certain wafer supply agreements. For the years ended December 31, 2011, 2012 and 2013, approximately 49.1%, 40.0% and 55.3%, respectively, of our net sales were generated from sales of wafers. Sales of modules accounted for 33.4%, 32.0% and 25.7%, respectively, of our net sales during the years ended December 31, 2011, 2012 and 2013. Revenue from processing services and silicon materials accounted for 1.3%, 0.1% and nil, respectively, of our net sales during the year ended December 31, 2011, 2012 and 2013. For the years ended December 31, 2011, 2012 and 2013, revenue from EPC services accounted for approximately 2.4%, 8.5% and 7.1%, respectively, of our total net sales. We expect that sales of solar wafers will continue to account for a significant portion of our net sales for the foreseeable future. We also expect our solar farm projects and related EPC business to remain stable as a proportion of our net sales as we continue to develop our solar farm projects to the extent market conditions permit.

Our net sales are affected by our unit sales volume, average selling prices and product mix. We currently make most of our sales to customers through non-exclusive, short-term purchase order arrangements. Increased sales on a long-term contract rather than spot market basis are likely to lead to a reduction in average selling prices. We have entered into long-term sales arrangements with some of our major customers, including HYUNDAI Heavy Industry Co., Ltd., Neo Solar Power Corporation, or NEO. Pursuant to these arrangements we have committed to supply each of them with specific quantities of wafers over the next few years, with some subject to periodic negotiations on prices. For the years ended December 31, 2011, 2012 and 2013, our top five customers accounted for 20.3%, 22.8% and 21.8%, respectively, of our net sales; with Jiangxi Risun and Gintech contributing approximately 5.5% and 4.5%, respectively, of our net sales for the year ended December 31, 2011, Sumitomo and Photovoltech contributing approximately 7.5% and 5.9%, respectively, of our net sales for the year ended December 31, 2012, and Brics Solar and Gintech contributing approximately 5.9% and 4.6%, respectively, of our net sales for the year ended December 31, 2013.


Friday, March 28, 2014

Deal Flow

XINYU CITY, China and SUNNYVALE, Calif., March 28, 2014 /PRNewswire/ -- LDK Solar Co., Ltd. in provisional liquidation ("LDK Solar" or the "Company"; NYSE: LDK) announces that, subsequent to the Grand Court of the Cayman Islands (the "Cayman Court") appointment of Tammy Fu and Eleanor Fisher, both partners of Zolfo Cooper (Cayman) Limited, as joint provisional liquidators ("JPLs") for the Company on February 27, 2014, LDK Solar, working together with the JPLs, has engaged in extensive negotiations with its offshore creditors with a view toward reaching agreement on the terms of an offshore restructuring. As of the date of this announcement, the Company has received:

  • signatures to a restructuring support agreement (the "Senior Notes RSA") from the holders of approximately 60% in aggregate principal amount of its 10% Senior Notes due 2014 (the "Senior Notes");
  • signatures to a separate restructuring support agreement (the "Preferred Obligations RSA") from the holders of approximately 79% of the convertible preferred shares issued by an affiliate of the Company and involving claims against the Company (the "Preferred Obligations");
  • signatures to both the Senior Notes RSA and the Preferred Obligations RSA from the debtors of the Senior Notes and the Preferred Obligations and a majority of the shareholders of the Company; and
  • a signed commitment letter from Heng Rui Xin Energy (HK) Co., Limited ("HRX"), an existing shareholder of the Company, to provide an interim financing (the "Interim Financing") up to an aggregate principal amount of US$14 million.

The execution of both the Senior Notes RSA and the Preferred Obligations RSA and the commitment to the Interim Financing represent a significant step for the Company in its efforts to restructure its offshore obligations, although the entry by the Company into the Senior Notes RSA, the Preferred Obligations RSA and the Interim Financing is subject to the sanction of the Cayman Court, currently expected to be on or around April 2, 2014 at a scheduled hearing.


Monday, February 24, 2014

Legal Insights
XINYU CITY, China and SUNNYVALE, Calif., Feb. 24, 2014 /PRNewswire/ -- LDK Solar Co., Ltd. ("LDK Solar"; NYSE: LDK) announces that LDK Solar made a filing on February 21, 2014 with the Grand Court of the Cayman Islands for the appointment of joint provisional liquidators in connection with its plans to resolve its offshore liquidity issues. LDK Solar has made considerable progress in its discussions with its key offshore creditors in line with the terms announced in its press release of December 27, 2013. LDK Solar  intends to continue such discussions over the next few days and anticipates a favorable conclusion to those discussions. The filing and the proposed appointment do not affect any of the LDK Solar-affiliated entities operating in the People's Republic of China and LDK Solar has no intention of initiating any additional debt restructuring proceedings in that jurisdiction. LDK Solar's bank group for its  mainland China operations has expressed unanimous support for LDK Solar's continued discussions with its offshore creditors with a view to resolving its offshore liquidity issues.

Thursday, January 23, 2014

Investor Alert

XINYU CITY, China and SUNNYVALE, Calif., Jan. 23, 2014 /PRNewswire/ -- LDK Solar Co., Ltd. ("LDK Solar"; NYSE: LDK) announced that it has entered into a new 21-day forbearance arrangement with holders of a majority in aggregate principal amount of its US$-Settled 10% Senior Notes due 2014 (the "Notes"). The new forbearance arrangement, which expires on February 13, 2014, relates to the interest payment due under the Notes on August 28, 2013. That interest payment is still unpaid. It is LDK Solar's intention to find a consensual solution to its obligations under the Notes as soon as possible and LDK Solar remains hopeful that it will be able to achieve that goal. As reported previously, LDK Solar has engaged Jefferies LLC as a financial advisor for strategic advice in connection with the Notes and LDK Solar's other offshore obligations. Holders of LDK Solar's offshore debt obligations may contact Augusto King at aking@Jefferies.com, or Steven Strom at sstrom@Jefferies.comLyndon Norley atlyndon.norley@Jefferies.com, or Richard Klein at rklein@Jefferies.com with any questions.


Thursday, January 9, 2014

Deal Flow

XINYU CITY, China and SUNNYVALE, Calif., Jan. 9, 2014 /PRNewswire/ -- LDK Solar Co., Ltd. ("LDK Solar"; NYSE: LDK) announced that it has entered into a new 15-day forbearance arrangement with holders of a majority in aggregate principal amount of its US$-Settled 10% Senior Notes due 2014 (the "Notes"). The new forbearance arrangement, which expires on January 23, 2014, relates to the interest payment due under the Notes on August 28, 2013. That interest payment is still unpaid. It is LDK Solar's intention to find a consensual solution to its obligations under the Notes as soon as possible and LDK Solar remains hopeful that it will be able to achieve that goal. As reported previously, LDK Solar has engaged Jefferies LLC as a financial advisor for strategic advice in connection with the Notes and LDK Solar's other offshore obligations. 


Friday, December 27, 2013

Deal Flow

XINYU CITY, China and SUNNYVALE, Calif., Dec. 27, 2013 /PRNewswire/ -- LDK Solar Co., Ltd. ("LDK Solar"; NYSE: LDK) announces that it executed confidentiality agreements (the "Confidentiality Agreements") in December 2013 with certain unaffiliated holders of the Renminbi-denominated US$-settled 10% Senior Notes due 2014 (the "Senior Notes") issued by LDK Solar (such holders, collectively, the "Holders"), to facilitate discussions with the Holders concerning LDK Solar's potential restructuring of its offshore liabilities. Pursuant to the terms of the Confidentiality Agreements, LDK Solar agreed that it would, immediately following the expiry of a period of time agreed with the Holders, disclose publicly the discussions between LDK Solar and the Holders and other confidential information concerning LDK Solar that was disclosed to the Holders. The information included in this announcement is being furnished to satisfy LDK Solar's public disclosure obligations under the Confidentiality Agreements.


Tuesday, December 10, 2013

Deal Flow

XINYU CITY, China and SUNNYVALE, Calif., Dec. 27, 2013 /PRNewswire/ -- LDK Solar Co., Ltd. ("LDK Solar"; NYSE: LDK) announces that it executed confidentiality agreements (the "Confidentiality Agreements") in December 2013 with certain unaffiliated holders of the Renminbi-denominated US$-settled 10% Senior Notes due 2014 (the "Senior Notes") issued by LDK Solar (such holders, collectively, the "Holders"), to facilitate discussions with the Holders concerning LDK Solar's potential restructuring of its offshore liabilities. Pursuant to the terms of the Confidentiality Agreements, LDK Solar agreed that it would, immediately following the expiry of a period of time agreed with the Holders, disclose publicly the discussions between LDK Solar and the Holders and other confidential information concerning LDK Solar that was disclosed to the Holders. The information included in this announcement is being furnished to satisfy LDK Solar's public disclosure obligations under the Confidentiality Agreements.


Investor Alert

XINYU CITY, China and SUNNYVALE, Calif., Dec. 10, 2013 /PRNewswire/ -- LDK Solar Co., Ltd. ("LDK Solar"; NYSE: LDK) announced that it has entered into a new 30-day forbearance arrangement with holders of a majority in aggregate principal amount of its US$-Settled 10% Senior Notes due 2014 (the "Notes"). The new forbearance arrangement, which expires on January 9, 2014, relates to the interest payment due under the Notes on August 28, 2013. That interest payment is still unpaid. It is LDK Solar's intention to find a consensual solution to its obligations under the Notes as soon as possible and LDK Solar remains hopeful that it will be able to achieve that goal. As reported previously, LDK Solar has engaged Jefferies LLC as a financial advisor for strategic advice in connection with the Notes and LDK Solar's other offshore obligations. Holders of LDK Solar's offshore debt obligations may contact Augusto King at aking@Jefferies.com, or Steven Strom at sstrom@Jefferies.comLyndon Norley atlyndon.norley@Jefferies.com, or Richard Klein at rklein@Jefferies.com with any questions.


Tuesday, November 26, 2013

Deal Flow

XINYU CITY, China and SUNNYVALE, Calif., Nov. 26, 2013 /PRNewswire/ -- LDK Solar Co., Ltd. ("LDK Solar"; NYSE: LDK) announced that it has entered into a new two-week forbearance arrangement with holders of a majority in aggregate principal amount of its US$-Settled 10% Senior Notes due 2014 (the "Notes"). The new forbearance arrangement, which expires onDecember 10, 2013, relates to the interest payment due under the Notes on August 28, 2013. That interest payment is still unpaid. It is LDK Solar's intention to find a consensual solution to its obligations under the Notes as soon as possible and LDK Solar remains hopeful that it will be able to achieve that goal. As reported previously, LDK Solar has engaged Jefferies LLC as a financial advisor for strategic advice in connection with the Notes and LDK Solar's other offshore obligations. Holders of LDK Solar's offshore debt obligations may contact Augusto King at aking@Jefferies.com, or Steven Strom at sstrom@Jefferies.com,Lyndon Norley at lyndon.norley@Jefferies.com, or Richard Klein at rklein@Jefferies.com with any questions.


Friday, November 22, 2013

Deal Flow

XINYU CITY, China and SUNNYVALE, Calif., Nov. 21, 2013 /PRNewswire/ -- LDK Solar Co., Ltd. ("LDK Solar") (NYSE: LDK), a leading vertically integrated manufacturer of photovoltaic products, today announced that its onshore subsidiary, Jiangxi LDK Solar Hi-Tech Co., Ltd., signed a framework agreement on November 11, 2013 with a syndicate of 11 commercial banks in China for a credit facility in the aggregate principal amount of RMB 1.56 billion.  The use of proceeds of the credit facility is strictly limited to financing LDK Solar's onshore operations within Jiangxi Province, and may not be used to service any existing indebtedness, whether onshore or offshore. The facility will terminate on November 10, 2016, and each loan under the facility may not have a maturity date later than such termination date. Each drawdown under the facility will be made in the absolute discretion of the syndicate and will be subject to additional conditions (including early repayment) imposed by the syndicate on a draw-specific basis. The syndicate has designated a working group to monitor the use of the funds and controlled bank accounts arrangements will be implemented. The facility and any of its outstanding loans are guaranteed by LDK Solar's onshore subsidiaries, Jiangxi LDK PV Silicon Technology Co., Ltd., Jiangxi LDK Solar Polysilicon Co., Ltd., LDK Solar Hi-Tech (Xinyu) Co., Ltd. and LDK Solar Hi-Tech (Nanchang) Co., Ltd., and by Peng Xiaofeng and his wife. The first drawdown of RMB 200 million was approved and completed on November 21, 2013. 

"We are pleased to enter this financing arrangement with the banking syndicate in China," stated Sam Tong, President and CEO of LDK Solar.  "While we are beginning to experience improvements in our business operations, we believe this discretionary loan facility will provide LDK Solar with the necessary support to ramp up our manufacturing operations of polysilicon, wafers, cells and modules in Jiangxi Province when business circumstances so permit.  When the global solar industry regains strength, we are committed to taking advantage of new opportunities that emerge."


Monday, October 28, 2013

Deal Flow

XINYU CITY, China and SUNNYVALE, Calif., Oct. 28, 2013 /PRNewswire/ -- LDK Solar Co., Ltd. ("LDK Solar"; NYSE: LDK) announced that it has entered into a new 30-day forbearance arrangement with holders of a majority in aggregate principal amount of its US$-Settled 10% Senior Notes due 2014 (the "Notes"). The new forbearance arrangement, which expires on November 26, 2013,  relates to the interest payment due under the Notes on August 28, 2013. That interest payment is still unpaid. It is LDK Solar's intention to find a consensual solution to its obligations under the Notes as soon as possible and LDK Solar remains hopeful that it will be able to achieve that goal. As reported previously, LDK Solar has engaged Jefferies LLC as a financial advisor for strategic advice in connection with the Notes and LDK Solar's other offshore obligations. Holders of LDK Solar's offshore debt obligations may contact Augusto King at aking@Jefferies.com, or Steven Strom at sstrom@Jefferies.com, Lyndon Norley atlyndon.norley@Jefferies.com, or Richard Klein at rklein@Jefferies.com with any questions. 


Thursday, September 26, 2013

Comments & Business Outlook

Third Quarter 2013 Financial Results

  • Net sales for the third quarter of fiscal 2013 were $156.6 million, compared to $114.7 million for the second quarter of fiscal 2013, and $291.5 million for the third quarter of fiscal 2012.
  • Net loss available to LDK Solar's shareholders for the third quarter of fiscal 2013 was $127.0 million, or a loss of $0.65 per diluted ADS, compared to net loss of $165.3 million, or a loss of $0.97 per diluted ADS for the second quarter of fiscal 2013 and net loss of $136.9 million, or a loss of $1.08 per diluted ADS for the third quarter of fiscal 2012.

"Our third quarter results were in line with expectations," stated Sam Tong, President and CEO of LDK Solar. "We were pleased to deliver 37% sequential revenue growth and reduce our net loss available to LDK Solar's shareholders both sequentially and on a year-over-year basis. We saw some signs of further improvement in the PV market during the quarter. While European PV markets remained soft, we experienced increased demand from China, North America and other emerging solar markets."

"As announced, we recently signed a new onshore loan facility framework agreement with a syndicate of 11 commercial banks inChina for a credit facility in the aggregate principal amount of RMB 1.56 billion. Although the drawdown under the facility will be subjected to various conditions, this new credit facility will support the ramp up of our onshore manufacturing operations for polysilicon, wafers, cells and modules within Jiangxi Province. We remain committed to improving our cost structure by driving down production costs, reducing operating expenses and adapting our business to the evolving demand environment," continued Mr. Tong.

"During the quarter, we continued to pursue a number of initiatives focused on restructuring our business operations and on our liability management. While the onshore syndicate facility will alleviate some of our onshore operating cash flow pressure inJiangxi Province, our offshore value and cash flow are insufficient to solve even our short-term liquidity associated with our offshore indebtedness. We are working closely with our stakeholders and relevant advisors to negotiate a consensual solution to our offshore debt obligations," concluded Mr. Tong.

Business Outlook

The following statements are based upon management's current expectations. These statements are forward-looking in nature, and the actual results may differ materially. You should read the "Safe Harbor Statement" below with respect to the risks and uncertainties relating to these forward-looking statements.

For the fourth quarter of fiscal 2013, LDK Solar estimates its revenue to be in the range of $200 million to $250 million, wafer shipments between 480 MW and 520 MW and cell and module shipments between 120 MW and 160 MW.


Deal Flow

XINYU CITY, China and SUNNYVALE, Calif., Sept. 26, 2013 /PRNewswire/ -- LDK Solar Co., Ltd. ("LDK Solar"; NYSE: LDK) announced that it has entered into a 30-day forbearance arrangement with holders of a majority of the aggregate principal amount of its US$-Settled 10% Senior Notes due 2014 (the "Notes"). The forbearance arrangement, which expires on October 27, 2013, relates to the interest payment due under the Notes on August 28, 2013. That interest payment remains unpaid. LDK Solar is hopeful that the forbearance arrangement is the first step in achieving a consensual solution to its obligations under the Notes. It is LDK Solar's intention to find a consensual solution as soon as possible. As reported previously, LDK Solar has engaged Jefferies LLC as a financial advisor for strategic advice in connection with the Notes and LDK Solar's other offshore obligations. Holders of LDK Solar's offshore debt obligations may contact Augusto King at aking@Jefferies.com, or Steven Strom at sstrom@Jefferies.com, Lyndon Norley at lyndon.norley@Jefferies.com, or Richard Klein at rklein@Jefferies.com with any questions. 


Tuesday, August 27, 2013

Comments & Business Outlook

Second Quarter 2013 Financial Results

  • Net sales for the second quarter of fiscal 2013 were $114.7 million, compared to $104.3 million for the first quarter of fiscal 2013, and $235.4 million for the second quarter of fiscal 2012.
  • Gross loss for the second quarter of fiscal 2013 was $53.8 million, compared to gross loss of $59.5 million in the first quarter of fiscal 2013, and gross loss of $92.0 million for the second quarter of fiscal 2012.
  • Gross margin for the second quarter of fiscal 2013 was negative 46.9%, compared to negative 57.0% in the first quarter of fiscal 2013, and negative 39.1% in the second quarter of fiscal 2012.
  • Net loss available to LDK Solar's shareholders for the second quarter of fiscal 2013 was $165.3 million, or a loss of $0.97 per diluted ADS, compared to net loss of $187.1 million, or a loss of $1.21 per diluted ADS for the first quarter of fiscal 2013 and net loss of$254.3 million, or a loss of $2.00 per diluted ADS for the second quarter of fiscal 2012. The weighted average number of shares for calculating diluted ADS was approximately 170.5 million for the second quarter of fiscal 2013.

"We delivered second quarter revenue that was in line with expectations and reduced our net loss both sequentially and on a year-over-year basis," stated Sam Tong, President and CEO of LDK Solar. "We have been navigating the challenging solar industry dynamics with a focus on improving our cost structure and becoming a more nimble company. We are starting to see early signs of improvement within the PV market as ASP's are beginning to stabilize. We are also encouraged by recent updates on solar policies from China and the EU."

"We have built a solid pipeline of solar project business worldwide and we remain committed to working with the relevant shareholders, banks and government agencies to secure the resources needed to drive these projects forward," continued Mr. Tong.

"We continue to work diligently on initiatives to improve our cost structure by driving down production costs and tightening operating expenses. By adapting our business to the evolving demand environment, we believe we will position LDK Solar for long term growth�furthering our ability to take advantage of the substantial market opportunity to address global energy needs with solar power," concluded Mr. Tong.

Business Outlook
The following statements are based upon management's current expectations. These statements are forward-looking in nature, and the actual results may differ materially. You should read the "Safe Harbor Statement" below with respect to the risks and uncertainties relating to these forward-looking statements.

For the third quarter of fiscal 2013, LDK Solar estimates its revenue to be in the range of $140 million to $180 million, wafer shipments between 350 MW and 450 MW and cell and module shipments between 60 MW and 80 MW.


Tuesday, July 2, 2013

Notable Share Transactions

XINYU CITY, China and SUNNYVALE, Calif., July 2, 2013 /PRNewswire/ -- LDK Solar Co., Ltd. ("LDK Solar"; NYSE: LDK), a leading vertically integrated manufacturer of photovoltaic products, today announced the sale of 25,000,000 newly issued ordinary shares of LDK Solar to Fulai Investments Limited, at a purchase price of $1.03 per share with an aggregate purchase price of $25,750,000, pursuant to the share purchase agreement dated April 25, 2013.


Tuesday, June 11, 2013

Comments & Business Outlook

First Quarter 2013 Financial Results

  • Net sales for the first quarter of fiscal 2013 were $104.3 million, compared to $135.9 million for the fourth quarter of fiscal 2012, and$200.1 million for the first quarter of fiscal 2012.
  • Gross loss for the first quarter of fiscal 2013 was $59.5 million, compared to gross loss of $97.0 million in the fourth quarter of fiscal 2012, and gross loss of $131.0 million for the first quarter of fiscal 2012.
  • Gross margin for the first quarter of fiscal 2013 was negative 57.0%, compared to negative 71.4% in the fourth quarter of fiscal 2012, and negative 65.5% in the first quarter of fiscal 2012.
  • Net loss available to LDK Solar's shareholders for the first quarter of fiscal 2013 was $187.1 million, or a loss of $1.21 per diluted ADS, compared to net loss of $548.5 million, or a loss of $3.91 per diluted ADS for the fourth quarter of fiscal 2012 and net loss of$185.2 million, or a loss of $1.46 per diluted ADS for the first quarter of fiscal 2012. The weighted average number of shares for calculating diluted ADS was approximately 155.1 million for the first quarter of fiscal 2013.

Business Outlook

The following statements are based upon management's current expectations. These statements are forward-looking in nature, and the actual results may differ materially. You should read the "Safe Harbor Statement" below with respect to the risks and uncertainties relating to these forward-looking statements.

For the second quarter of fiscal 2013, LDK Solar estimates its revenue to be in the range of $100 million to $150 million, wafer shipments between 250 MW and 300 MW and cell and module shipments between 30 MW and 40 MW.


Monday, May 20, 2013

Resolution of Legal Issues

GUELPH, Ontario, May 20, 2013 /PRNewswire-FirstCall/ -- Canadian Solar Inc. (the "Company", or "Canadian Solar") (NASDAQ: CSIQ), one of the world's largest solar power companies, today announced that the Jiangsu Suzhou Intermediate Court dismissed the request by LDK Solar Co., Ltd. (NYSE: LDK) to enforce the arbitration award decision by the former Shanghai branch of the China International Economic and Trade Arbitration Commission in the amount of RMB 248.9 million (approximately US$ 40.1 million). This arbitration award relates to wafer supply contracts entered into between Canadian Solar and LDK in October of 2007 and June of 2008, and subsequently terminated. The total amount of the award includes the initial deposit of RMB 60.0 million(approximately US$ 9.7 million), but excludes approximately RMB 2.0 million to cover arbitration expenses.

Dr. Shawn Qu, Chairman and Chief Executive Officer, commented, "We are delighted with the Jiangsu Suzhou Intermediate Court's decision in our favor. We believe we have conducted our business properly at all times and we will continue to advocate cooperation rather than confrontation within the solar industry."


Thursday, May 16, 2013

Contract Awards

XINYU CITY, China and SUNNYVALE, Calif., May 16, 2013 /PRNewswire/ -- LDK Solar Co., Ltd. ("LDK Solar") (NYSE: LDK), a leading vertically integrated manufacturer of photovoltaic products, today announced that it has signed a wafer supply contract with Realforce Power Co., Ltd, a photovoltaic (PV) company located in Shandong Province, China.  Under the terms of the agreement, LDK Solar will provide 120 million 6-inch wafers, totaling approximately 500 megawatts (MW), with shipments commencing in May 2013 through December 2014. 

"We are pleased to enhance our market position in the China region through this new wafer sales agreement," stated Xingxue Tong, President and CEO of LDK Solar. "We believe the China region, which is expected to reach 10 gigawatts (GW) in 2013, represents the strongest global growth opportunity.  This contract demonstrates the continued demand for our solar wafers.  We are confident that our high quality wafers can meet new market requirements," concluded Mr. Tong.


Tuesday, April 30, 2013

Comments & Business Outlook

XINYU CITY, China and SUNNYVALE, Calif., April 30, 2013 /PRNewswire/ -- LDK Solar Co., Ltd. ("LDK Solar") (NYSE: LDK), a leading vertically integrated manufacturer of photovoltaic (PV) products, today announced that the company will file a Form 12b-25 to extend the filing date of its Annual Report on Form 20-F for the year ended December 31, 2012. 

The company is unable to file its Form 20-F for the year ended December 31, 2012 on or before the prescribed due date of April 30, 2013 because it needs additional time to finalize certain items in its fourth quarter 2012 financial results, primarily including an impairment analysis of long-lived assets and an assessment of provisions in certain subsidiaries.

The company anticipates that the Form 20-F will be filed on or before May 15, 2013.


Friday, April 26, 2013

Deal Flow

XINYU CITY, China and SUNNYVALE, Calif., April 26, 2013 /PRNewswire/ -- LDK Solar Co., Ltd. ("LDK Solar") (NYSE: LDK), a leading vertically integrated manufacturer of photovoltaic products, today announced that it has entered into a share purchase agreement dated April 25, 2013 with Fulai Investments Limited, which has agreed to purchase additional 25,000,000 newly issued ordinary shares of LDK Solar, at a purchase price of US$1.03 per share with an aggregate purchase price ofUS$25,750,000, subject to the terms and conditions of the share purchase agreement, including a lock-up for 180 days from the closing date of the contemplated transactions.  The share purchase price reflects an 8% discount to the 5-day average share price. 

Pursuant to the share purchase agreement, the parties will endeavor to fulfill the closing conditions to consummate the transactions prior to June 28, 2013. Fulai Investments has agreed to pay LDK Solar in two installments prior to the closing: the first in May for US$15,000,000 and the second in June for US$10,750,000. Fulai Investments also has the right to designate two non-executive directors to the LDK Solar board upon consummation of the transaction.  The net proceeds will be used for general corporate purposes in LDK Solar's operations.


Monday, April 22, 2013

Comments & Business Outlook

Alternative Energy Ltd., a Singaporean developer of energy-saving technologies, won an order to provide engineering, procurement and construction services to PT Mega Urip Pesona solar parks in Indonesia.

LDK Solar Co. (LDK) will supply panels to some plants under a deal last year, and a planned $600 million loan from China will provide funding, Alternative Energy said today in a statement. Separately, a 10 to 50 megawatt park will be built in Bali, and nine 10-megawatt plants elsewhere in Indonesia.

Alternative Energy will be paid by Mega Urip, an Indonesian project developer, at a rate of at least 5 cents a watt.


Wednesday, April 17, 2013

Investor Alert

XINYU CITY, China and SUNNYVALE, Calif., April 16, 2013 /PRNewswire/ -- LDK Solar Co., Ltd. ("LDK Solar") (NYSE: LDK), a leading vertically integrated manufacturer of photovoltaic products, today announced Anhui LDK New Energy Co., Ltd. signed an agreement to sell and transfer all its equity interest in its wholly owned subsidiary, LDK Solar High-Tech (Hefei) Co., Ltd., located in Hefei City of Anhui Province in China, to an affiliate of the Hefei City government, Hefei High Tech Industrial Development Social Service Corporation, for approximately RMB 120 million. Based on the Company's book value, LDK Solar expects to realize a net loss in the range of USD 80 million to USD 90 million for this transaction.

Previously, LDK Solar announced a purchase agreement in January 2013 with Shanghai Qianjiang Group, with its consummation subject to relevant governmental approvals. Shanghai Qianjiang Group failed to secure such government approvals by the expiration date of March 30, 2013.

"We appreciate the assistance and collaboration from Hefei Municipal Government," stated Xingxue Tong, President and CEO of LDK Solar. "We will do our best to assure a smooth closing of this transaction."


Tuesday, April 16, 2013

Deal Flow

XINYU CITY, China, and SUNNYVALE, Calif., April 16, 2013 /PRNewswire/ -- LDK Solar Co., Ltd. ("LDK Solar"; NYSE: LDK), a leading vertically integrated manufacturer of photovoltaic products, today announced that, due to a temporary cash-flow shortage, LDK Solar was not able to make full payments to the holders of its 4.75% convertible senior notes due 2013 in an aggregate principal amount of US$23,793,000, plus interest, otherwise due and payable on their maturity date of April 15, 2013. LDK Solar has, however, privately and individually negotiated with two holders of such convertible notes in the aggregate principal amount of US$16,553,000, and reached settlement with them, shortly before the maturity date, through a partial payment in cash and effectively a loan facility to postpone the repayment of the remaining indebtedness.

LDK Solar had informed The Bank of New York Mellon, as trustee for the holders of the convertible notes, of such nonpayment. LDK Solar is nevertheless ready and willing to discuss and reach a settlement for the remaining convertible notes.


Tuesday, February 5, 2013

Resolution of Legal Issues

XINYU CITY, China, and SUNNYVALE, Calif., Feb. 5, 2013 /PRNewswire/ -- LDK Solar Co., Ltd. ("LDK Solar"; NYSE: LDK), a leading vertically integrated manufacturer of photovoltaic products, today announced that after a long dispute with Italy-based Helios Technology S.p.A., the Venice Court of Appeal declared on January 16, 2013 that, according to the ICC Rules of Arbitration, the 2010 award in favor of LDK Solar is valid, effective and enforceable in Italy.

The Venice Court of Appeal upholds that the "take or pay" clause in the wafer supply contract entered into in October 2008 between LDK Solar and Helios is valid and effective throughout its duration and at terms and conditions related to quantities and prices set forth therein.  By virtue of the decision of the Venice Court of Appeal, Helios is required to pay LDK Solar an amount of approximately $31 million plus interest, costs for the arbitration proceedings and lawyers' fees.  The Venice Court of Appeal issued the provision after verifying that all the stipulations on the international arbitration are not contrary to Italian legal order and that there are no impediments to the acceptance of the conditions required for the effectiveness of the award itself.



Tuesday, November 6, 2012

Investor Alert

XINYU CITY, China and SUNNYVALE, Calif., Nov. 6, 2012 /PRNewswire/ -- LDK Solar Co., Ltd. ("LDK Solar") (NYSE: LDK), a leading vertically integrated manufacturer of photovoltaic (PV) products, today announced that it has reached an agreement with Japan-based Sumitomo Corporation to terminate their long-term solar wafer supply agreement.

Under the terms of the agreement, originally signed in September 2008, LDK Solar was to supply multicrystalline silicon wafers to Sumitomo over an eight-year period, beginning in 2009 and extending through 2016.  As part of the original agreement, Sumitomo made an advanced payment representing a portion of the contract value to LDK Solar.

In exchange for LDK's agreement to terminate the supply agreement, Sumitomo has agreed to pay LDK Solar a settlement amount totaling $33.4 million.

"We are pleased to have reached a mutually agreeable conclusion to our 2008 wafer supply contract with Sumitomo," stated Xiaofeng Peng, Chairman of LDK Solar.  "We look forward to establishing a new commercial relationship with Sumitomo.  We will continue to work closely with our customers and partners as we navigate the current industry challenges."

LDK Solar is assessing the financial impact on its full year 2012 earnings of the Sumitomo termination and related contract termination charges.


Monday, October 22, 2012

Deal Flow
XINYU CITY, China and SUNNYVALE, Calif., Oct. 22, 2012 /PRNewswire/ -- LDK Solar Co., Ltd. ("LDK Solar") (NYSE: LDK), a leading vertically integrated manufacturer of photovoltaic (PV) products, today announced that it has entered into a share purchase agreement dated October 19, 2012 with Heng Rui Xin Energy Co., Ltd., a PRC company invested by privately owned and state-owned funds ("HRX") in which HRX has agreed to purchase  newly issued ordinary shares, accounting for approximately 19.9% of the total issued and outstanding capital of LDK Solar prior to such issuance, at a purchase price of US$0.86 per ordinary share, subject to the terms and conditions of the share purchase agreement, including a lock-up for 180 days. Pursuant to the share purchase agreement, HRX also has the right to designate three additional directors to the LDK Solar board, and the parties have also agreed to add two independent directors to the LDK Solar board. Closing of the proposed transaction is subject to, among other things, the receipt of all necessary consents and approvals from applicable governmental and regulatory authorities, including the various PRC governmental agencies.

Monday, September 17, 2012

Comments & Business Outlook

Second Quarter 2012 Results

  • Net sales for the second quarter of fiscal 2012 were $235.4 million, compared to $200.1 million for the first quarter of fiscal 2012, and $499.4 million for the second quarter of fiscal 2011.
  • Net loss available to LDK Solar's shareholders for the second quarter of fiscal 2012 was $254.3 million, or a loss of $2.00 per diluted ADS, compared to a net loss of $185.2 million, or a loss of $1.46 per diluted ADS for the first quarter of fiscal 2012 and net loss of $87.7 million, or a loss of $0.62 per diluted ADS for the second quarter of fiscal 2011. The number of shares for calculating diluted ADS was approximately 127.2 million for the second quarter of fiscal 2012.


"For the second quarter of 2012, our revenue was within the expected range as we saw wafer shipments increase sequentially," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "Industry-wide competition and demand constraints continued to drive price declines across the entire solar supply chain and negatively impacted our margins and profitability.

"Turning to the third quarter, our outlook remains cautious as we expect to see continued near-term challenges facing our industry. We remain closely focused on managing costs and operating expenses through streamlining manufacturing operations, reducing production costs and improving utilization.

"We continue to believe that some markets such as China will begin to see improved demand in the second half of this year and expect growth opportunities in this market to continue to expand over the next several years," concluded Mr. Peng.

Business Outlook

The following statements are based upon management's current expectations. These statements are forward-looking in nature, and the actual results may differ materially. You should read the "Safe Harbor Statement" below with respect to the risks and uncertainties relating to these forward-looking statements.

For the third quarter of fiscal 2012, LDK Solar estimates its revenue to be in the range of $220 million to $260 million, wafer shipments between 190 MW and 240 MW, cells and module shipments between 140 MW and 180 MW.

For fiscal 2012, LDK Solar estimates its revenue to be in the range of $1.1 billion to $1.5 billion, polysilicon shipments between 1,100 MT and 1,400 MT, wafer shipments between 0.9 gigawatts (GW) and 1.2 GW, cell and module shipments between 550 MW and 750 MW and inverter shipments between 170 MW to 210 MW. LDK Solar expects PV system project construction to be in the range of 200 MW to 300 MW and to recognize between 110 MW and 150 MW through project sales and EPC services for 3rd party customers.




Tuesday, June 26, 2012

Comments & Business Outlook

First Quarter 2012 Results

  • Net sales for the first quarter of fiscal 2012 were $200.1 million, compared to $420.2 million for the fourth quarter of fiscal 2011, and $766.3 million for the first quarter of fiscal 2011.
  • Net loss available to LDK Solar's shareholders for the first quarter of fiscal 2012 was $185.2 million, or a loss of $1.46 per diluted ADS, compared to a net loss of $588.7 million, or a loss of $4.63 per diluted ADS for the fourth quarter of fiscal 2011 and net income of $135.4 million, or $0.95 per diluted ADS for the first quarter of fiscal 2011. The number of shares for calculating diluted ADS was approximately 127.2 million for the first quarter of fiscal 2012.

"Our revenue was within the expected range as our results reflected first quarter seasonality and the continued difficult solar industry conditions," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "Industry-wide overcapacity continued and drove price declines across the entire solar supply chain, which significantly reduced our revenue and negatively impacted our margins.

"We are navigating the current volatile market environment by focusing on streamlining manufacturing operations, reducing production costs and improving utilization, while closely managing our operating expenses. While we expect to see continued challenging conditions in the solar industry in the near-term, we anticipate that some markets such as China will begin to see improved demand as the year progresses. We firmly believe that lower PV system costs will drive adoption of solar power and long-term market growth," concluded Mr. Peng.

Business Outlook

The following statements are based upon management's current expectations. These statements are forward-looking in nature, and the actual results may differ materially. You should read the "Safe Harbor Statement" below with respect to the risks and uncertainties relating to these forward-looking statements.

For the second quarter of fiscal 2012, LDK Solar estimates its revenue to be in the range of $220 million to $270 million, wafer shipments between 300 MW and 350 MW, cells and module shipments between 140 MW and 180 MW, in-house polysilicon production between 520 MT and 570 MT and in-house cell production between 80 MW and 100 MW.

For fiscal 2012, LDK Solar estimates its revenue to be in the range of $1.5 billion to $2.0 billion, polysilicon production between 5,000 MT and 7,000 MT, of which shipments to 3rd party customers are expected to be between 2,000 MT and 3,000 MT, wafer production between 2.0 gigawatts (GW) and 2.5 GW, of which shipments to 3rd party customers are expected to be between 1.2 GW and 1.5 GW, in-house cell production between 0.7 GW and 1.0 GW, and module production between 0.9 GW and 1.2 GW, with cell and module shipments to 3rd party customers between 0.8 GW and 1.0 GW and inverter shipments between 200 MW to 250 MW. LDK Solar expects PV system project construction to be in the range of 400 MW to 600 MW and to recognize between 270 MW and 360 MW through project sales and EPC services for 3rd party customers.


Friday, June 15, 2012

Comments & Business Outlook

XINYU CITY, China and MUNICH, June 15, 2012 /PRNewswire/ -- LDK Solar Co., Ltd. (NYSE: LDK) ("LDK Solar") a leading vertically integrated manufacturer of photovoltaic (PV) products, together with its partner Solarif, a fully mandated underwriter of HDI Gerling for PV insurance, are the first companies to introduce a unique insurance solution at the system level.  LDK Solar announced the new 'Secure' offer at Intersolar Europe, the world's largest solar industry exhibition taking place in Munich from the 13th – 15th of June.

LDK Solar Secure provides customers with a complete insurance package combining an operational 'All Risk Insurance' with a warranty and inherent defect insurance.  It includes a full backup of LDK Solar Product and Power Warranties on PV modules.  Additionally, the embedded All Risk Insurance applies to all other components of the PV system.

The insurance package is covered by HDI Gerling, an A+ rated insurance company and one of the largest German insurers of property and casualty.  As an independent third party, Solarif completed a successful audit of LDK Solar's manufacturing process and product quality.

LDK Solar Secure insures a qualified warranty claim for any case and includes the following advantages:

    100% coverage of all sold products on the European continent without hidden limited coverage;
    100% transparent policy conditions for easy check by banks or other interested parties;
    Solarif audited and certified LDK Solar product quality reinforcing bankability and bank financing;
    Compensation of production loss during warranty exchange period; and
    Coverage of labor and transportation costs for module replacement of valid warranty claim.

LDK Solar Secure will be offered initially to commercial customers.  LDK Solar 'Professional Series' customers receive 1-year All Risk system insurance with a 5-year insured warranty and inherent defect option inclusive in the product price.  LDK Solar 'Value Series' customers receive 1-year All Risk system insurance with a 1-year insured warranty and inherent defect option included.  The insurance package can be extended after the initial coverage by LDK Solar for up to a maximum of 20 years.

Rene Moerman, Chief Strategy Officer of Solarif:  "After an elaborate examination of the factory, company, environmental and labor conditions, we declare that LDK Solar fulfills all expectations and is now on our whitelist.  We are proud to announce our cooperation with LDK Solar, a company with a positive spirit and great sense of quality."

Xiaofeng Peng, Chairman and CEO of LDK Solar:  "We're proud to be the very first PV company to introduce this innovative insurance solution setting new standards for the PV insurance industry.  We believe our offer is the ultimate solution for securing investments in PV projects.  LDK Solar has extensively examined the current insurance available for the PV market and we believe, that together with Solarif, we have developed a unique insurance package."


Monday, April 30, 2012

Comments & Business Outlook

Fourth Quarter 2011 Results

  • Net sales for the fourth quarter of fiscal 2011 were $420.2 million, compared to $471.9 million for the third quarter of fiscal 2011, and $920.9 million for the fourth quarter of fiscal 2010.
  • Net loss attributable to LDK Solar's shareholders for the fourth quarter of fiscal 2011 was $588.7 million, or a loss of $4.63 per diluted ADS, compared to a net loss of $114.5 million, or a loss of $0.87 per diluted ADS for the third quarter of fiscal 2011 and net income of $145.2 million, or $1.09 per diluted ADS for the fourth quarter of fiscal 2010

During the preparation of its fourth quarter 2011 financial results, LDK Solar's management determined that an inventory write-down and provision for firm purchase commitment of $232.6 million was required as a result of the significant drop in market price for polysilicon, wafers and modules during the fourth quarter. As a result, gross margin and results from operations were negatively impacted in the fourth quarter of fiscal 2011.

"The solar industry experienced a tremendous supply and demand imbalance throughout the value chain during the fourth quarter. Our results reflected the negative effects of this dislocation in the PV market," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "Weak market demand and rapidly declining average selling prices reduced our revenue and adversely impacted our margins in the quarter.

"In 2012, we expect that excess capacity and further policy uncertainties in Europe and the U.S. will result in continued intense competition within the solar industry. As such, we remain focused on improving our cost structure by driving down production costs and closely managing our operating expenses. PV applications are increasing globally with improved affordability for solar electricity. We continue to believe that the considerable opportunities to meet global energy needs with solar power will drive long-term market growth," concluded Mr. Peng.

Business Outlook

The following statements are based upon management's current expectations. These statements are forward-looking in nature, and the actual results may differ materially. You should read the "Safe Harbor Statement" below with respect to the risks and uncertainties relating to these forward-looking statements.

For the first quarter of fiscal 2012, LDK Solar estimates its revenue to be in the range of $190 million to $230 million, wafer shipments between 140 MW and 150 MW, cells and module shipments between 170 MW and 180 MW, in-house polysilicon production between 1,800 MT and 1,900 MT and in-house cell production between 40 MW and 50 MW.

For fiscal 2012, LDK Solar estimates its revenue to be in the range of $2.0 billion to $2.7 billion, polysilicon production between 12,000 MT and 15,000 MT, of which shipments to 3rd party customers are expected to be between 6,000 MT and 8,000 MT, wafer production between 2.7 gigawatts (GW) and 3.3 GW, of which shipments to 3rd party customers are expected to be between 1.5 GW and 2.0 GW, in-house cell production between 1.2 GW and 1.6 GW, and module production between 1.2 GW and 1.6 GW, with cell and module shipments to 3rd party customers between 1.0 GW and 1.3 GW and inverter shipments between 200 MW to 250 MW. LDK Solar expects PV system project construction to be in the range of 400 MW to 600 MW and to recognize between 270 MW and 360 MW through project sales and EPC services for 3rd party customers.


Monday, March 19, 2012

Comments & Business Outlook

Guidance

For the fourth quarter of 2011, LDK Solar revised its guidance for revenue to be in the range of $440 to $450 million, wafer shipments between 215 and 220 megawatts (MW), cells and module shipments between 250 MW and 260 MW, in-house polysilicon production between 2,100 MT and 2,300 MT and in-house cell production between 130 MW and 150 MW.

The Company previously forecasted fourth quarter revenue to be in the range of $440 million to $520 million with wafer shipments between 200 MW and 270 MW, and module shipments between 180 MW and 270 MW, in-house polysilicon production between 2,200 MT and 2,800 MT, in-house cell production between 220 MW and 250 MW.

As a result of the rapidly declining market price for wafers and modules during the fourth quarter of 2011, LDK Solar expects to incur a write-down of inventories, realize impairment charges on contractual purchase agreements, and therefore, expects gross margin to be negative. In addition, some provisions for accounts receivable and fixed assets may also be required.

For fiscal 2012, LDK Solar estimates its revenue in the range of $2.0 billion to $2.7 billion, polysilicon production between 12,000 MT and 15,000 MT, of which shipments to 3rd party customers are expected to be between 6,000 MT and 8,000 MT, wafer production between 2.7 gigawatts (GW) and 3.3 GW, of which shipments to 3rd party customers are expected to be between 1.5 GW and 2.0 GW, in-house cell production between 1.2 GW and 1.6 GW, and module production between 1.2 GW and 1.6 GW, with cell and module shipments to 3rd party customers between 1.0 GW and 1.3 GW, inverter shipments between 200 MW to 250 MW. LDK Solar expects PV system project construction to be in the range of 400 MW to 600 MW and to recognize between 270 MW and 360 MW through project sales and EPC services for 3rd party customers.

Outlook for the fourth quarter 2011 and fiscal 2012 are preliminary estimates. The Company has yet to complete its preliminary review and compilation of its financial information for the quarter. Results are subject to change based on further review by management.


Tuesday, January 3, 2012

Acquisition Activity

XINYU CITY, China, and SUNNYVALE, Calif., Jan. 3, 2012 /PRNewswire/ -- LDK Solar Co., Ltd. ("LDK Solar"; NYSE: LDK) today announced that it, through its wholly owned subsidiary, LDK Solar Germany Holding GmbH, has entered into an investment agreement, dated December 31, 2011, with Sunways AG, a German stock corporation with its shares listed on the Frankfurt Stock Exchange, to acquire approximately 33% of Sunways' increased share capital following a capital increase from its authorized capital. 

In the capital increase, LDK Solar will subscribe for a total of 5.79 million new shares of Sunways to be issued against a cash contribution and contributions in kind. The issue amount of the shares to be granted against the cash contribution amounts to a total of euro 2,201,805.50. Simultaneously, LDK Solar has announced its intention to submit to the Sunways shareholders a public takeover offer for all outstanding shares in the company. Subject to the approval of the offer's publication by the Federal Financial Supervisory Authority (Bundesanstalt fur Finanzdienstleistungsaufsicht – BaFin), the takeover offer is expected to be published in late January 2012. Under this offer, a cash consideration of euro 1.90 per share is to be offered to the Sunways shareholders. Both the capital increase as well as the completion of the takeover offer must be formally cleared by the Federal Cartel Office (Bundeskartellamt). Following the clearance under the cartel law, the completion of the offer is currently expected to occur in the first quarter of 2012.


Monday, August 29, 2011

Comments & Business Outlook

Second Quarter 2011 Results


  • Net sales for the second quarter of fiscal 2011 were $499.4 million, compared to $766.3 million for the first quarter of fiscal 2011, and $565.3 million for the second quarter of fiscal 2010.
  • Gross profit for the second quarter of fiscal 2011, was $11.0 million, compared to $241.6 million in the first quarter of fiscal 2011, and $101.8 million for the second quarter of fiscal 2010.
  • Net loss attributable to LDK Solar's shareholders for the second quarter of fiscal 2011 was $87.7 million, or a loss of $0.62 per diluted ADS, compared to net income of $135.4 million, or $0.95 per diluted ADS for the first quarter of fiscal 2011 and $45.0 million, or $0.36 per diluted ADS for the second quarter of fiscal 2010. The number of shares for calculating diluted ADS was approximately 140.7 million for the second quarter of fiscal 2011.

LDK Solar ended the second quarter of fiscal 2011 with $636.4 million in cash and cash equivalents and $515.3 million in short-term pledged bank deposits.

"Our second quarter results reflect the challenging solar industry dynamics that resulted from recent policy revisions in Europe and consequently reduced demand for PV products," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "Lower pricing across the supply chain negatively impacted our financial results for the quarter.

"In recent weeks, we have seen average selling prices begin to stabilize and improvement to order patterns. We have continued to gain traction in expanding our presence in key markets such as North America and China. In the U.S., our recently established sales and marketing operation has already begun to gain traction in winning large module contracts. In China, we are encouraged by the announcement of the unified national feed-in-tariff program. We have an established, strong market position in our domestic market and see significant long-term growth opportunities.

"We are actively taking steps to improve our cost structure and strengthen our balance sheet. We continue to make progress on lowering our manufacturing costs as we gain scale in our newer PV product areas such as solar cells. Going forward, based on our current pipeline of business, we believe growth will resume in the second half of 2011," concluded Mr. Peng.

Business Outlook

The following statements are based upon management's current expectations. These statements are forward-looking in nature, and the actual results may differ materially. You should read the "Safe Harbor Statement" below with respect to the risks and uncertainties relating to these forward-looking statements.

For the third quarter of fiscal 2011, LDK Solar estimates its revenue to be in the range of $630 million to $680 million with wafer shipments between 350 MW and 400 MW, and module shipments between 250 MW and 300 MW, in-house polysilicon production between 2,600 MT and 2,700 MT, in-house cell production between 200 MW and 220 MW and gross margin between 11% and 16%.

For fiscal 2011, LDK Solar estimates its revenue to be in the range of $2.5 to $2.7 billion, wafer shipments between 1.8 gigawatts (GW) and 2.0 GW, module shipments between 750 MW and 800 MW, in-house polysilicon production between 10,000 MT and 11,000 MT, in-house cell production between 600 MW and 700 MW and gross margin between 15% and 20%.


Friday, August 19, 2011

Comments & Business Outlook

XINYU CITY, China and SUNNYVALE, Calif., Aug. 18, 2011 /PRNewswire/ -- LDK Solar Co., Ltd. ("LDK Solar") (NYSE: LDK), a leading vertically integrated manufacturer of photovoltaic products, today revised its guidance for the second quarter of 2011 and fiscal 2011.  Additionally, the company announced that it will report financial results for the second quarter ended June 30, 2011 before the market opens on Monday, August 29, 2011.  The company will host a corresponding conference call and live webcast at 8:00 a.m. Eastern Time (ET) the same day.

For the second quarter of 2011, LDK Solar revised its guidance for revenue to be in the range of $480 to $500 million, wafer shipments between 410 and 430 megawatts (MW), module shipments between 75 MW and 80 MW, in-house polysilicon production between 2,700 MT and 2,750 MT and in-house cell production between 120 MW and 125 MW. As a result of the significant drop in market price for wafers and modules during the second quarter of 2011, LDK Solar expected to write-down $55 to $60 million of inventories and expected the gross margin for the second quarter of 2011 to be between 1.5% and 2.5%.  The Company's cash and cash-equivalent balance was approximately $630 million as of June 30, 2011.

The company previously forecasted second quarter 2011 revenue in the range of $710 million to $760 million with wafer shipments between 500 MW and 550 MW, module shipments between 200 MW and 220 MW, in-house polysilicon production between 2,650 MT and 2,750 MT, in-house cell production between 120 MW and 130 MW and gross margin between 22% and 26%.

For fiscal 2011, LDK Solar revised its guidance for revenue to be in the range of $2.5 to $2.7 billion, wafer shipments between 1.8 gigawatts (GW) and 2.0 GW, module shipments between 750 MW and 800 MW, in-house polysilicon production between 10,000 MT and 11,000 MT, in-house cell production between 600 MW and 700 MW and gross margins between 15% and 20%.  

The company previously forecasted fiscal 2011 revenue in the range of $3.5 to $3.7 billion with wafer shipments between 2.7 and 2.9 gigawatts (GW), module shipments between 800 MW and 900 MW, in-house polysilicon production between 10,000 MT and 11,000 MT, in-house cell production between 500 MW and 600 MW and gross margin between 24% and 29%.

The outlook for the three months ended June 30, 2011 and full year ending December 31, 2011 are estimates. Results are subject to change based on further review by management.


Monday, June 27, 2011

Notable Share Transactions

XINYU CITY, China and SUNNYVALE, Calif., June 27, 2011 /PRNewswire/ -- LDK Solar Co., Ltd. (NYSE: LDK), a leading vertically integrated manufacturer of photovoltaic products, today announced that its Board of Directors approved a share buyback program that authorizes LDK Solar to repurchase up to US$110 million of its American Depository Shares ("ADSs") in the open market or through privately negotiated transactions. The program does not obligate LDK Solar to acquire any particular amount of its ADSs and may be modified or suspended at any time at the sole discretion of LDK Solar.

Mr. Xiaofeng Peng, Chairman and CEO of LDK Solar, commented, "We remain confident in our current outlook as well as the long-term prospects for our business.  However, we believe our ADSs are currently grossly undervalued. We believe our share buyback program not only represents a good investment for our company, but also demonstrates our commitment to enhance shareholder value."


Sunday, June 26, 2011

Liquidity Requirements

On February 1, 2011, the Company issued 13,800,000 ADSs, representing 13,800,000 ordinary shares at a price of US$12.4 per ADSs, raising approximately US$164,220, net of certain expenses. On February 28, 2011 and April 11, 2011, the Company respectively issued an aggregate principal amount of RMB 1,200,000 and RMB 500,000, 10% US$-Settled Senior Notes due 2014 (the “Senior Notes”) and received net proceeds from the offering, after deducting certain expenses, of approximately US$254,994 in total. The Company will consider obtaining additional fundings from the issuance of additional equity or debt when market conditions permit and such issuance are in the overall interests of the Group’s business.
 
Therefore, after careful consideration of the factors that initially raises substantial doubt and the liquidity plans described above, management has prepared the accompanying consolidated financial statements on the basis that the Group will be able to continue as going concern. The consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded assets or the amounts and classification of liabilities or any other adjustments that might be necessary should the Group be unable to continue as a going concern.

As of December 31, 2010, we had a working capital deficit (being our total consolidated current liabilities less our total consolidated current assets) of $1,602.4 million. As of December 31, 2010, we had cash and cash equivalents of $202.1 million. The majority of our cash and cash equivalents was held by our subsidiaries in China. In addition, we had short-term borrowings and current installments of our long-term borrowings totaling $1,501.6 million as of December 31, 2010, most of which were the obligations of our subsidiaries in China. These factors initially raise substantial doubt as to our ability to continue as a going concern.

We are in need of additional funding to sustain our business as a going concern, and we have formulated a plan to address our liquidity problem. Our liquidity plan includes: 

  • obtaining additional bank financing, including an additional $570.9 million of secured and unsecured short-term bank borrowings, $205.5 million of secured and unsecured long-term bank borrowings and repayments of $542.3 million of short-term borrowings and current installments of long-term borrowings, between January 1, 2011 and March 31, 2011;  
  • additional capital markets transactions, including the offering of Rmb 1.7 billion in aggregate principal amount of our US$-settled 10% senior notes due 2014, or the 2014 senior notes, from which we received proceeds of approximately $255.0 million, net of underwriting commission and certain expenses; and our offering of 13,800,000 ADSs, representing 13,800,000 of our ordinary shares, in February 2011, from which we received net proceeds of approximately $164.2 million, while repurchasing an aggregate principal amount of $357.2 million of our 4.75% convertible senior notes due 2013 that we issued in April 2008, or the existing convertible senior notes;  
  • reorganizing our polysilicon business to facilitate financing, including a recently contracted but not yet closed third-party investment of $240 million, in this business; and  
  • strategic financing framework arrangement in September 2010 with China Development Bank Corporation, or CDB, pursuant to which CDB intends to provide up to Rmb 60 billion, or approximately $8.9 billion, of credit facilities to us over a five-year period, subject to credit reviews and certain other conditions and under terms to be agreed at each time enter into a borrowing under this arrangement. 

Thursday, January 27, 2011

Deal Flow

XINYU CITY, China and SUNNYVALE, Calif., Jan. 27, 2011 /PRNewswire/ -- LDK Solar Co., Ltd., today priced a follow-on offering of 12,000,000 American depositary shares, each representing one ordinary share, at a price to the public of $12.40 per ADS. In connection with the follow-on offering, LDK Solar has also granted the underwriters an over-allotment option to purchase up to an additional 1,800,000 ADSs.


Tuesday, November 9, 2010

Comments & Business Outlook
  • Net sales for the third quarter of fiscal 2010 were $675.6 million, compared to $565.3 million for the second quarter of fiscal 2010 and $281.9 million for the third quarter of fiscal 2009.
  • Gross profit for the third quarter of fiscal 2010 was $150.0 million, compared to $101.8 million in the second quarter of fiscal 2010 and $56.8 million for the third quarter of fiscal 2009.
  • Gross margin for the third quarter of fiscal 2010 was 22.2%, compared to 18.0% in the second quarter of fiscal 2010 and 20.1% in the third quarter of fiscal 2009.
  • Income from operations for the third quarter of fiscal 2010 was $119.5 million, compared to $78.6 million for the second quarter of fiscal 2010 and $37.1 million for the third quarter of fiscal 2009.
  • Net income for the third quarter of fiscal 2010 was $93.4 million, or $0.72 per diluted ADS, compared to $45.0 million, or $0.36 per diluted ADS for the second quarter of fiscal 2010 and $29.4 million, or $0.27 per diluted ADS for the third quarter of fiscal 2009.  

"Our results for the third quarter were strong by all measures," stated Xiaofeng Peng, Chairman and CEO of LDK Solar.  "We delivered a second consecutive quarter of record revenue as strong industry demand coupled with an improved pricing environment drove better than expected results.  

"We are benefiting from our diversification strategy as we see increasing contributions from our polysilicon, module and cell businesses.  As we gain further traction in these areas, we expect to experience enhanced top line and earnings growth.  

"During the third quarter, our expansion plans remained on track as we reached manufacturing capacity of 11,000 MT in polysilicon, 2.6 GW in wafers, 760 MW in modules and 120 MW in cells. We signed multiple supply contracts which further broaden our customer base.  Importantly, our recent financing agreement with the China Development Bank enhances our ability to pursue our long-term growth strategy.  With our strong financial position and healthy order trend, we see continued opportunity for growth."

Business Outlook

The following statements are based upon management's current expectations. These statements are forward-looking in nature, and the actual results may differ materially. You should read the "Safe Harbor Statement" below with respect to the risks and uncertainties relating to these forward-looking statements.

For the fourth quarter of fiscal 2010, LDK Solar estimates its

  • Revenue to be in the range of $710 million to $750 million
  • Wafer shipments between 580 MW and 600 MW
  • Module shipments between 120 MW and 130 MW
  • In-house polysilicon production between 1,700 MT and 1,900 MT
  • In-house cell production between 20 MW and 23 MW
  • Gross margin between 24% and 26%.  

For fiscal 2011, LDK Solar expects its

  • Revenue to be in the range of $2.9 billion to $3.3 billion
  • Wafer shipments between 2.5 GW and 2.8 GW
  • Module shipments between 700 MW and 800 MW
  • In-house polysilicon production between 9,000 MT and 10,000 MT
  • in-house cell production between 400 MW and 500 MW
  • Gross margin between 22% and 28%

Monday, October 11, 2010

Comments & Business Outlook

LDK Solar Co., Ltd.  today provided an updated outlook for its third quarter 2010 financial results.  For the third quarter of 2010, LDK Solar expects to report revenue in the range of $610 to $640 million, wafer shipments of 550 to 570 megawatts (MW), and module shipments of 80 MW to 90 MW.  The Company's prior guidance for the third quarter was revenue of $570 to $600 million, wafer shipments of 520 to 550 MW, and module shipments of 75 to 85 MW.

At the end of September 2010, LDK Solar's manufacturing capacity reached, as previously planned, 11,000 MT in polysilicon, 2.6 gigawatts (GW) in wafers, 120 MW in cells, and 760 MW in modules.  As of the end of the third quarter, cash balances, including pledged bank deposits, were approximately $800 million.

This outlook for the three months ended September 30, 2010 is an estimate.  Results are subject to change based on further review by management.  Once the third quarter reporting date is finalized, LDK Solar will issue a press release announcing the date and details of its third quarter conference call.


Friday, July 24, 2009

Comments & Business Outlook

We, LDK Solar Co., Ltd., a leading manufacturer of multicrystalline solar wafers, has provided an updated outlook for our second quarter 2009 financial results.

For the second quarter of 2009, we expect to report between $225 million and $235 million in revenue, slightly above the recently announced estimated range, and wafer shipments between 230 and 240 megawatts (“MW”). We expect to record a write-down of $150 to $160 million against the cost of inventories for a decline in net realizable value of inventories resulting from the continued market price decline for solar wafers. As a result, the gross margin is expected to be negative and we expect to report a net loss of $180 to $200 million in the second quarter.

Source: PR Newswire (July 23, 2009)


Sunday, June 21, 2009

Comments & Business Outlook

Guidance Update:

"As expected, the first quarter of 2009 was characterized by a continued challenging operating environment for economies and industries globally, not precluding the solar industry,' stated Xiaofeng Peng, Chairman and CEO of LDK Solar. 'During the quarter, we remained focused on positioning the company for future growth, while aligning our operations and near-term strategies to be more reflective of the current business conditions."

For the second quarter of fiscal 2009, LDK Solar estimates its wafer shipments between 200 MW to 220 MW.

The company did not comment on its previously issued 2009 revenue guidance.

Source: PR Newswire (May 21, 2009)


Thursday, March 12, 2009

Comments & Business Outlook

Guidance Report:

'We enter 2009 with conservative optimism. In light of the continued economic slowdown and global credit crisis, we recently amended our expansion plans to lower capital expenditure needs in the near term and to better reflect muted market expectations for 2009. As the credit markets continue to contract, we believe that conservative cash management is imperative and will focus on closely monitoring capital spending to protect our healthy cash position and unused credit facilities, which were $850 million at the end of 2008. While the business environment has been challenging, we believe we are uniquely positioned within the solar industry and going forward will benefit from our lean cost structure and economies of scale. As we brace for continued challenges in the current marketplace, we remain confident in the core strengths of our business model and long-term growth strategies,' concluded Mr. Peng.

Full Year Fiscal 2009 Guidance Ending December

  2009 Guidance 2008 Reported Period Change
GAAP Revenue $1.4 billion to $1.8 billion $1.6 billion -12.5% to 12.5%

Source: PR Newswire (March 11, 2009