LDK Solar Reports Financial Results for the Fourth Quarter of Fiscal 2007
Feb 25,2008
Xinyu City, China and Sunnyvale, California, February 25, 2008 – LDK Solar Co., Ltd. (NYSE:LDK), a leading manufacturer of multicrystalline solar wafers, today reported its unaudited financial results for the fourth quarter ended December 31, 2007.
All financial results are reported in US dollars on a U.S. GAAP basis.
Fourth Quarter 2007 Financial Highlights:
- Revenue of $192.8 million, up 21.4% quarter-over-quarter
- Gross profit of $58.0 million, up 18.6% quarter-over-quarter
- Net income of $49.2 million, or $0.44 per diluted ADS, up 18.2% quarter-over-quarter
- Signed 9 long-term wafer supply agreements during the fourth quarter
- Total wafer shipments increased 18.4% sequentially to 93.4MW in the fourth quarte
Net sales for the fourth quarter of fiscal 2007 were $192.8 million, up 21.4% sequentially from $158.7 million for the third quarter of fiscal 2007, and up 212% year-over-year from $61.9 million for the fourth quarter of fiscal 2006.
Gross profit for the fourth quarter of fiscal 2007 was $58.0 million, up 18.6% sequentially from $48.9 million for the third quarter of fiscal 2007, and up 119% year-over-year from $26.6 million for the fourth quarter of fiscal 2006.Gross profit margin for the fourth quarter of fiscal 2007 was 30.1% compared with 30.8% in the third quarter of fiscal 2007 and 42.9% in the fourth quarter of fiscal 2006.
Net income for the fourth quarter of fiscal 2007 was $49.2 million, or $0.44 per diluted ADS, compared to net income of $41.6 million, or $0.37 per diluted ADS for the third quarter of fiscal 2007.
The Company ended the fourth quarter of fiscal 2007 with $83.5 million in cash and cash equivalents.
“The fourth quarter closed a very strong year for LDK marked by record revenue and continued rapid growth,” stated Xiaofeng Peng, Chairman and CEO of LDK Solar.? “During the year, we had a number of significant achievements.We exceeded our annual wafer production capacity target for 2007 by 5% to reach 420 MW. ?We also broadened our customer base by securing 16 long-term wafer supply contracts during the year.Our success is a testament not only to the quality of our wafers, but also to our strong customer relationships and our leading position amongst multicrystalline solar wafer manufacturers.
“As we enter 2008, we continue to experience strong demand for our wafers coupled with a significant backlog of long-term supply contracts.? The construction on our new polysilicon plants is progressing as planned and we expect to enjoy further cost reductions and the advancement of our production processes in 2008.”
In accordance with its filing requirements, LDK expects to file its 20-F document which includes detailed financials for the full year 2007 in the second quarter of 2008.
Business Outlook
The following statements are based upon management's current expectations. These statements are forward-looking, and actual results may differ materially. The Company undertakes no obligation to update these statements.
For the first quarter of fiscal 2008, LDK estimates its revenue to be in the range of $210 million to $220 million for wafer shipments of 98 MW to 104 MW.The Company also estimates fully diluted earnings per ADS to be in the range of $0.41 to $0.45.The first quarter is typically a seasonally slow period due to Chinese New Year holidays, and this year may have some impact from the severe snow storms.
For the full year 2008, LDK reiterates estimated revenue to be in the range of $960 million to $1.0 billion for wafer shipments of 510 MW to 530 MW.The Company also estimates polysilicon production to be in the range of 100MT to 350MT and gross margins of 26% to 31%.
Conference Call Details
The LDK Fourth Quarter teleconference and webcast is scheduled to begin at 6:00 p.m. Eastern Time (ET), on Monday, February 25, 2008. To listen to the live conference call, please dial 800-218-0713 (within U.S.) or 303-262-2175 (outside U.S.) at 5:50 p.m. ET on February 25, 2008. A live webcast of the call will be available on the company's investor relations website at investor.ldksolar.com. An audio replay of the call will be available to investors through February 29, 2008, by dialing 800-405-2236 (within U.S.) or 303-590-3000 (outside U.S.) and entering the passcode 11108905#.
LDK Solar Co., Ltd.
Unaudited Condensed Consolidated Balance Sheet Information
(In US$’000, except share and per share data)
|
12/31/2007 |
|
9/30/2007 |
Assets |
|||
Current assets |
|||
-Cash and cash equivalents |
83,470 |
|
125,858 |
-Pledged bank deposits |
135,950 |
|
106,840 |
-Trade accounts receivable, net |
3,767 |
|
8,666 |
-Inventories, net |
349,997 |
|
224,527 |
-Prepayments to suppliers |
138,193 |
|
183,467 |
-Other current assets |
29,825 |
|
9,561 |
-Deferred income tax assets |
546 |
|
- |
Total current assets |
741,748 |
|
658,919 |
Property, plant and equipment, net |
336,763 |
|
224,477 |
Deposit for property, plant and equipments |
151,233 |
|
136,870 |
Intangible asset, net |
1,096 |
|
1,098 |
Land use rights |
29,259 |
|
29,152 |
Inventories to be processed beyond one year, net |
29,981 |
|
- |
Prepayments to suppliers to be utilized beyond one year |
18,994 |
|
10,626 |
Other financial assets |
525 |
|
- |
Deferred income tax assets |
387 |
|
757 |
Total assets |
1,309,986 |
|
1,061,899 |
|
|
|
|
Liabilities and shareholders’ equity |
|
|
|
Current liabilities |
|
|
|
-Short-term bank borrowings |
264,101 |
|
186,559 |
-Trade accounts payable |
18,032 |
|
23,044 |
-Advance payments from customers |
141,223 |
|
154,931 |
-Accrued expenses and other payables |
95,301 |
|
42,278 |
-Other financial liabilities |
3,357 |
|
- |
Total current liabilities |
522,014 |
|
406,812 |
Long-term bank borrowings, excluding current portions |
25,125 |
|
29,967 |
Advance payments from customers – noncurrent |
67,554 |
|
- |
Other liabilities |
2,222 |
|
2,280 |
Total liabilities |
616,915 |
|
439,059 |
Shareholders’ equity |
|||
|
|
|
|
Ordinary shares: US$0.10 par value; 134,000,000 shares authorized; 106,044,700 shares issued and outstanding as of September 30, 2007 and December 31, 2007, respectively |
10,604 |
|
10,604 |
Additional paid-in capital |
486,253 |
|
482,419 |
Statutory reserve |
18,697 |
|
3,623 |
Accumulated other comprehensive income |
31,481 |
|
14,259 |
Retained earnings |
146,036 |
|
111,935 |
Total shareholders’ equity |
693,071 |
|
622,840 |
|
- |
|
- |
Total liabilities and shareholders’ equity |
1,309,986 |
|
1,061,899 |
|
|
|
|
LDK Solar Co., Ltd.
Unaudited Condensed Consolidated Income Statement Information
(In US$’000, except per ADS data)
|
For the 3 Months Ended |
||
|
12/31/2007 |
|
9/30/2007 |
|
|
|
|
Net sales |
192,769 |
|
158,724 |
Cost of goods sold |
(134,729) |
|
(109,807) |
Gross profit |
58,040 |
|
48,917 |
Selling expenses |
(210) |
|
(348) |
General and administrative expenses |
(9,503) |
|
(4,459) |
Research and development expenses |
(1,653) |
|
(921) |
Total operating expenses |
(11,366) |
|
(5,728) |
Income from operations |
46,674 |
|
43,189 |
Other income/(expenses): |
|
|
|
-Interest income |
1,967 |
|
1,846 |
-Interest expense |
(3,060) |
|
(2,650) |
-Foreign currency exchange gain/(loss), net |
1,479 |
|
(2,041) |
-Government subsidy |
1,956 |
|
662 |
Income before income tax |
49,016 |
|
41,006 |
Income tax benefit |
159 |
|
599 |
Net income available to ordinary shareholders |
49,175 |
|
41,605 |
Net income per ADS, Diluted |
$ 0.44 |
|
$ 0.37 |
About LDK Solar
LDK Solar Co., Ltd. is a leading manufacturer of multicrystalline solar wafers, which are the principal raw material used to produce solar cells. LDK sells multicrystalline wafers globally to manufacturers of photovoltaic products, including solar cells and solar modules. In addition, the company provides wafer processing services to monocrystalline and multicrystalline solar cell and module manufacturers. LDK's headquarters and manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi province in the People's Republic of China. The company's office in the United States is located in Sunnyvale, California.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's ability to raise additional capital to finance the Company's activities; the effectiveness, profitability, and marketability of its products; the future trading of the securities of the Company; the ability of the Company to operate as a public company; the period of time for which its current liquidity will enable the Company to fund its operations; the Company's ability to protect its proprietary information; general economic and business conditions; the volatility of the Company's operating results and financial condition; the Company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the Company's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry.These statements are based upon information available to LDK's management as of the date hereof. Actual results may differ materially from the anticipated results because of certain risks and uncertainties. The press release also contains forward looking statements about the progress of LDK's construction of its polysilicon plant. These statements are based on information available to LDK's management today. Actual results may differ, including various factors which may delay or disrupt the plant's construction and completion, including, poor weather, the risk of labor difficulties, construction difficulties or financing difficulties.
The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
For more information contact:
Lisa Laukkanen
The Blueshirt Group for LDK Solar
lisa@blueshirtgroup.com
+1-415-217-4967
Jack Lai
Executive VP and CFO
LDK Solar Co., Ltd.
IR@ldksolar.com
+1- 408-245-880