6-K 1 h04925e6vk.htm FORM 6-K e6vk
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2011
Commission File Number: 001-33464
LDK SOLAR CO., LTD.
(Translation of registrant’s name into English)
 
Hi-Tech Industrial Park
Xinyu City
Jiangxi Province 338032
People’s Republic of China
(Address of principal executive offices)
 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F þ          Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes o          No þ
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-                     
 
 

 


 

LDK Solar Reports Financial Results for Fourth Quarter of Fiscal 2010
     We, LDK Solar Co., Ltd., have reported our unaudited financial results for the fourth quarter ended December 31, 2010. All financial results are reported in U.S. dollars on a U.S. GAAP basis.
Recent Highlights
    Recorded quarterly revenue of $920.9 million, an increase of 36.3% sequentially and 202.3% year-over-year;
 
    Shipped 627.9 megawatts, or MW, of wafers, and 157.2 MW of modules in the fourth quarter;
 
    Gross margin for the fourth quarter was 27.3%;
 
    Net income was $145.2 million, or $1.09 per diluted American Depositary Share, or ADS, for the fourth quarter;
 
    Increased wafer capacity to 3.0 gigawatts, or GW, in December 2010;
 
    Produced a total of approximately 1,925 metric tons, or MT, of polysilicon during the fourth quarter; and
 
    Entered into several new supply agreements for wafers, modules and polysilicon.
     Net sales for the fourth quarter 2010 were $920.9 million, compared to $675.6 million for the third quarter 2010 and $304.6 million for the fourth quarter 2009.
     Gross profit for the fourth quarter 2010 was $251.4 million, compared to $150.0 million for the third quarter 2010 and $30.2 million for the fourth quarter 2009.
     Gross margin for the fourth quarter 2010 was 27.3%, compared to 22.2% for the third quarter 2010 and 9.9% for the fourth quarter 2009.
     Income from operations for the fourth quarter 2010 was $202.5 million, compared to income from operations of $119.5 million for the third quarter 2010 and a loss from operations of $16.1 million for the fourth quarter 2009.
     Operating margin for the fourth quarter 2010 was 22.0%, compared to 17.7% for the third quarter 2010 and negative 5.3% for the fourth quarter 2009.
     Income tax expense for the fourth quarter 2010 was $40.5 million, compared to income tax expense of $14.8 million for the third quarter 2010 and income tax expense of $3.7 million for the fourth quarter 2009.
     Net income for the fourth quarter 2010 was $145.2 million, or $1.09 per diluted ADS, compared to net income of $93.4 million, or $0.72 per diluted ADS, for the third quarter 2010 and a net loss of $24.3 million, or negative $0.22 per diluted ADS, for the fourth quarter, 2009. The number of shares for calculating diluted ADS was approximately 137.5 million for the fourth quarter 2010, 136.0 million for the third quarter 2010 and 108.5 million for the fourth quarter 2009.
     We ended the fourth quarter 2010 with $202.1 million in cash and cash equivalents and $503.7 million in short-term pledged bank deposits.

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LDK Solar Co., Ltd.
Unaudited Condensed Consolidated Balance Sheet Information
(In US$’000)
                 
    12/31/2010     9/30/2010  
Assets
               
Current assets
               
Cash and cash equivalents
    202,127       571,862  
Pledged bank deposits
    503,721       218,775  
Trade accounts receivable, net and bills receivable
    384,265       203,606  
Inventories
    474,612       436,653  
Prepayments to suppliers, net
    112,448       145,647  
Other current assets
    282,342       160,489  
Deferred income tax assets, net
    15,914       27,989  
 
           
Total current assets
    1,975,429       1,765,021  
Property, plant and equipment, net
    2,993,213       2,845,111  
Deposits for purchases of property, plant and equipment and land use rights
    144,298       106,118  
Intangible asset, net
    778       1,614  
Land use rights
    220,405       214,818  
Inventories to be processed beyond one year
    13,024       3,422  
Prepayments to suppliers expected to be utilized beyond one year, net
    14,318       14,751  
Pledged bank deposits — non-current
    43,965       35,274  
Investment in an associate and a joint venture
    53,669       50,201  
Deferred income tax assets
    21,303       16,333  
Other non-current assets
    11,755       17,476  
 
           
Total assets
    5,492,157       5,070,139  
 
           
 
               
Liabilities and equity
               
Current liabilities
               
Short-term bank borrowings and current installments of long-term bank borrowings
    1,501,588       1,207,152  
Convertible senior notes, net of debt discount
    358,338       359,819  
Trade accounts payable and bills payable
    719,367       489,009  
Advance payments from customers, current portion
    196,812       230,856  
Accrued expenses and other payables
    734,452       706,968  
Income tax payable
    35,642       9,163  
Obligations under capital leases — current portion
    36,339       35,420  
Other financial liabilities
    1,965       1,609  
 
           
Total current liabilities
    3,584,503       3,039,996  
Long-term bank borrowings, excluding current installments
    604,495       640,043  
Convertible senior notes, net of debt discount
    31,765       31,631  
Obligations under capital leases, excluding current installments
    15,938       24,882  
Advance payments from customers — non-current
    148,022       153,050  
Other liabilities
    77,147       96,226  
Deferred income tax liability
    10,549       10,165  
 
           
Total liabilities
    4,472,419       3,995,993  
 
           
 
               
Equity
               
Total LDK Solar Co., Ltd. shareholders’ equity
    1,019,240       1,034,313  
Non-controlling interests
    498       39,833  
 
           
Total equity
    1,019,738       1,074,146  
 
           
Total liabilities and equity
    5,492,157       5,070,139  
 
           

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LDK Solar Co., Ltd.
Unaudited Condensed Consolidated Statements of Operations Information
(In US$’000, except per ADS data)
                 
    For the 3 Months Ended
    12/31/2010     9/30/2010  
                 
Net sales
    920,876       675,630  
Cost of goods sold
    (669,450 )     (525,592 )
 
           
Gross profit
    251,426       150,038  
Selling expenses
    (9,260 )     (6,227 )
General and administrative expenses
    (36,122 )     (20,122 )
Research and development expenses
    (3,579 )     (4,189 )
 
           
Total operating expenses
    (48,961 )     (30,538 )
 
           
Profit from operations
    202,465       119,500  
Other income (expenses):
               
Interest income
    1,417       1,635  
Interest expense and amortization of convertible senior notes issuance costs and debt discount
    (24,861 )     (23,553 )
Foreign currency exchange gain, net
    5,378       11,692  
Government subsidies
    445       136  
Others
    4,934       673  
 
           
Profit before income tax
    189,778       110,083  
Income tax expense
    (40,538 )     (14,833 )
 
           
Net income after taxes before non-controlling interest
    149,240       95,250  
Profit attributable to non-controlling interest
    (4,036 )     (1,890 )
 
           
Net income attributable to holders of ordinary shares
    145,204       93,360  
 
           
Net income per ADS, Diluted
  $ 1.09     $ 0.72  
 
           
Incorporation by Reference
     This report on Form 6-K (except our press release attached hereto as Exhibit 99.5) is hereby incorporated by reference into our registration statements filed with the SEC under the Securities Act of 1933, as amended.
Exhibit
     Attached hereto as Exhibit 99.5 is the press release we issued on March 17, 2010 relating to our unaudited financial results for the fourth quarter 2009, which is furnished to the SEC.

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SIGNATURES
     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
         
  LDK SOLAR CO., LTD.
 
 
  By:   /s/ Jack Lai    
  Name:   Jack Lai   
  Title:   Chief Financial Officer   
 
Date: March 18, 2011

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EXHIBIT 99.5: PRESS RELEASE
(LDK LOGO)
LDK Solar Reports Financial Results for Fourth Quarter of Fiscal 2010
Xinyu City, China and Sunnyvale, California, March 17, 2011 — LDK Solar Co., Ltd. (“LDK Solar”; NYSE: LDK), a leading manufacturer of multicrystalline solar wafers and PV products, today reported its unaudited financial results for the fourth quarter ended December 31, 2010.
All financial results are reported in U.S. dollars on a U.S. GAAP basis.
Fourth Quarter Highlights:
  Recorded quarterly revenue of $920.9 million, an increase of 36.3% sequentially and 202.3% year-over- year;
 
  Shipped 627.9 MW of wafers, 157.2 MW of modules in the fourth quarter;
 
  Gross margin for the fourth quarter was 27.3%;
 
  Net income was $145.2 million, or $1.09 per diluted ADS for the fourth quarter;
 
  Increased wafer capacity to 3.0 GW in December 2010;
 
  Produced a total of approximately 1,925 MT of polysilicon during the fourth quarter;
 
  Entered into several new supply agreements for wafers, modules and polysilicon.
Net sales for the fourth quarter of fiscal 2010 were $920.9 million, compared to $675.6 million for the third quarter of fiscal 2010, and $304.6 million for the fourth quarter of fiscal 2009.
Gross profit for the fourth quarter of fiscal 2010, was $251.4 million, compared to $150.0 million in the third quarter of fiscal 2010, and $30.2 million for the fourth quarter of fiscal 2009.
Gross margin for the fourth quarter of fiscal 2010 was 27.3%, compared to 22.2% in the third quarter of fiscal 2010 and 9.9% in the fourth quarter of fiscal 2009.
Income from operations for the fourth quarter of fiscal 2010 was $202.5 million, compared to income from operations of $119.5 million for the third quarter of 2010, and a loss from operations of $16.1 million for the fourth quarter of fiscal 2009.
Operating margin for the fourth quarter of fiscal 2010 was 22.0% compared to 17.7% in the third quarter of fiscal 2010 and negative 5.3% in the fourth quarter of fiscal 2009.
Income tax expense for the fourth quarter of fiscal 2010 was $40.5 million, compared to income tax expense of $14.8 million in the third quarter of fiscal 2010 and income tax expense of $3.7 million in the fourth quarter of fiscal 2009.
Net income for the fourth quarter of fiscal 2010 was $145.2 million, or $1.09 per diluted ADS, compared to net income of $93.4 million, or $0.72 per diluted ADS for the third quarter of fiscal 2010 and a net loss of $24.3 million, or negative $0.22 per diluted ADS for the fourth quarter of 2009. The number of shares for calculating diluted ADS was approximately 137.5 million for the fourth quarter of fiscal 2010, 136.0 million for the third quarter of fiscal 2010 and 108.5 million for the fourth of fiscal 2009.
LDK Solar ended the fourth quarter of fiscal 2010 with $202.1 million in cash and cash equivalents and $503.7 million in short-term pledged bank deposits.
“Our record results for the fourth quarter capped a remarkable year and demonstrate the success of our vertical integration strategy and strong market position,” stated Xiaofeng Peng, Chairman and CEO of LDK Solar. “We delivered a third consecutive quarter of record revenue as strong industry demand drove better than expected results.”
“During the fourth quarter, we experienced increasing contributions from our polysilicon, module and cell businesses as we executed expansion on plan. We extended our leadership position in wafers ending the year with 3.0 GW of capacity. We signed multiple supply contracts for polysilicon, wafers and modules and further diversified our customer base. Importantly, our recent financing activities have further strengthened our balance sheet and enhanced our ability to pursue our long-term growth strategy.”
“We have made great strides in positioning LDK Solar to take advantage of the growth in the global PV industry. We remain excited about the multiple growth drivers we see for our business and believe we are well positioned for success.”
LDK Solar will include full year 2010 financial results in its upcoming 20-F filing with the SEC.

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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 2011, LDK Solar estimates its revenue to be in the range of $800 million to $850 million with wafer shipments between 610 MW and 660 MW, and module shipments between 120 MW and 140 MW, in-house polysilicon production between 2,300 MT and 2,400 MT, in-house cell production between 45 MW and 50 MW and gross margin between 27% and 29%.
For fiscal 2011, LDK Solar expects revenue in the range of $3.5 to $3.7 billion, wafer shipments of 2.7 to 2.9 gigawatts (GW), module shipments of 800 MW to 900 MW, in-house polysilicon production of 10,000 MT and 11,000 MT, in-house cell production between 500 MW and 600 MW, and gross margin between 24% and 29%.
Conference Call Details
The LDK Solar Fourth Quarter 2010 teleconference and webcast is scheduled to begin at 5:00 p.m. Eastern Time (ET), on March 17, 2011. To listen to the live conference call, please dial 877-941-2069 (within U.S.) or 480-629-9713 (outside U.S.) at 4:50 p.m. ET on March 17, 2011. An audio replay of the call will be available through March 20, 2011, by dialing 800-406-7325 (within U.S.) or 303-590-3030 (outside U.S.) and entering the pass code 4421616#.

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LDK Solar Co., Ltd.
Unaudited Condensed Consolidated Balance Sheet Information
(In US$’000)
                 
    12/31/2010     9/30/2010  
Assets
               
Current assets
               
Cash and cash equivalents
    202,127       571,862  
Pledged bank deposits
    503,721       218,775  
Trade accounts receivable, net and bills receivable
    384,265       203,606  
Inventories
    474,612       436,653  
Prepayments to suppliers, net
    112,448       145,647  
Other current assets
    282,342       160,489  
Deferred income tax assets, net
    15,914       27,989  
 
               
Total current assets
    1,975,429       1,765,021  
Property, plant and equipment, net
    2,993,213       2,845,111  
Deposits for purchases of property, plant and equipment and land use rights
    144,298       106,118  
Intangible asset, net
    778       1,614  
Land use rights
    220,405       214,818  
Inventories to be processed beyond one year
    13,024       3,422  
Prepayments to suppliers expected to be utilized beyond one year, net
    14,318       14,751  
Pledged bank deposits — non-current
    43,965       35,274  
Investment in an associate and a joint venture
    53,669       50,201  
Deferred income tax assets
    21,303       16,333  
Other non-current assets
    11,755       17,476  
 
               
Total assets
    5,492,157       5,070,139  
 
               
 
               
Liabilities and equity
               
Current liabilities
               
Short-term bank borrowings and current installments of long-term bank borrowings
    1,501,588       1,207,152  
Convertible senior notes, net of debt discount
    358,338       359,819  
Trade accounts payable and bills payable
    719,367       489,009  
Advance payments from customers, current portion
    196,812       230,856  
Accrued expenses and other payables
    734,452       706,968  
Income tax payable
    35,642       9,163  
Obligations under capital leases — current portion
    36,339       35,420  
Other financial liabilities
    1,965       1,609  
 
               
Total current liabilities
    3,584,503       3,039,996  
Long-term bank borrowings, excluding current installments
    604,495       640,043  
Convertible senior notes, net of debt discount
    31,765       31,631  
Obligations under capital leases, excluding current installments
    15,938       24,882  
Advance payments from customers — non-current
    148,022       153,050  
Other liabilities
    77,147       96,226  
Deferred income tax liability
    10,549       10,165  
 
               
Total liabilities
    4,472,419       3,995,993  
 
               
 
               
Equity
               
Total LDK Solar Co., Ltd. shareholders’ equity
    1,019,240       1,034,313  
Non-controlling interests
    498       39,833  
 
               
Total equity
    1,019,738       1,074,146  
 
               
 
               
Total liabilities and equity
    5,492,157       5,070,139  
 
               

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LDK Solar Co., Ltd.
Unaudited Condensed Consolidated Statements of Operations Information
(In US$’000, except per ADS data)
                 
    For the 3 Months Ended  
    12/31/2010     9/30/2010  
 
               
Net sales
    920,876       675,630  
Cost of goods sold
    (669,450 )     (525,592 )
 
           
Gross profit
    251,426       150,038  
Selling expenses
    (9,260 )     (6,227 )
General and administrative expenses
    (36,122 )     (20,122 )
Research and development expenses
    (3,579 )     (4,189 )
 
           
Total operating expenses
    (48,961 )     (30,538 )
 
           
Profit from operations
    202,465       119,500  
Other income (expenses):
               
Interest income
    1,417       1,635  
Interest expense and amortization of convertible senior notes issuance costs and debt discount
    (24,861 )     (23,553 )
Foreign currency exchange gain, net
    5,378       11,692  
Government subsidies
    445       136  
Others
    4,934       673  
 
           
Profit before income tax
    189,778       110,083  
Income tax expense
    (40,538 )     (14,833 )
 
           
Net income after taxes before non-controlling interest
    149,240       95,250  
Profit attributable to non-controlling interest
    (4,036 )     (1,890 )
 
           
Net income attributable to holders of ordinary shares
    145,204       93,360  
 
           
Net income per ADS, Diluted
  $ 1.09     $ 0.72  
 
           
About LDK Solar (NYSE: LDK)
LDK Solar Co., Ltd. (NYSE: LDK) is a leading vertically integrated manufacturer of photovoltaic (PV) products and a leading manufacturer of solar wafers in terms of capacity. LDK Solar manufactures polysilicon, mono and multicrystalline ingots, wafers, modules and cells. The Company also engages in project development activities in selected segments of the PV market. Through its broad product offering, LDK Solar provides its customers with a full spectrum of PV solutions. LDK Solar’s headquarters and manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi Province in the People’s Republic of China. LDK Solar’s office in the United States is located in Sunnyvale, California. For more information about LDK Solar and its products, please visit www.ldksolar.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this press release are forward-looking statements, including but not limited to, LDK Solar’s ability to raise additional capital to finance its operating activities, the effectiveness, profitability and marketability of its products, the future trading of its securities, the ability of LDK Solar to operate as a public company, the period of time during which its current liquidity will enable LDK Solar to fund its operations, its ability to protect its proprietary information, the general economic and business environment and conditions, the volatility of LDK Solar’s operating results and financial condition, its ability to attract and retain qualified senior management personnel and research and development staff, its ability to timely and efficiently complete its ongoing construction projects, including its polysilicon plants, and other risks and uncertainties disclosed in LDK Solar’s filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on information available to LDK Solar’s management as of the date hereof and on its current expectations, assumptions, estimates and projections about LDK Solar and the solar industry. Actual results may differ materially from the anticipated results because of such and other risks and uncertainties. LDK Solar undertakes no obligation to update forward-looking statements to reflect subsequent events or circumstances, or changes in its expectations, assumptions, estimates and projections except as may be required by law.
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- 408-245-8801

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