North Coast Solar Stocks

February 25, 2008

LDK Solar Reports Financial Results for the Fourth Quarter of Fiscal 2007

Filed under: LDK — Tags: , , , — Jason @ 8:00 am

Xinyu City, China and Sunnyvale, California, February 25, 2008 – LDK Solar Co., Ltd. (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%.

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

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