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LDK Solar Reports Financial Results for First Quarter of Fiscal 2013



     LDK Solar Reports Financial Results for First Quarter of Fiscal 2013

PR Newswire

XINYU CITY, China and SUNNYVALE, Calif., June 11, 2013

XINYU CITY, China and SUNNYVALE, Calif., June 11, 2013 /PRNewswire/ -- LDK
Solar Co., Ltd. ("LDK Solar"; NYSE: LDK), a leading vertically integrated
manufacturer of photovoltaic products, today reported its unaudited financial
results for the first quarter ended March 31, 2013.

All financial results are reported in U.S. dollars on a U.S. GAAP basis.

First Quarter Highlights:

  o Net sales of $104.3 million; and
  o Shipped 240.0 megawatts (MW) of wafers, 31.4 MW of cells and modules in
    the first quarter.

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.

During the preparation of its first quarter 2013 financial results, LDK
Solar's management determined that an inventory write-down of $15.1 million
was required as a result of a continuous weakness in market price for
polysilicon, wafers, cells and modules caused by industry-wide over capacity
and much heated market competition.  As a result, gross margin and results
from operations were negatively impacted in the first quarter of fiscal 2013.

Loss from operations for the first quarter of fiscal 2013 was $93.2 million,
compared to loss from operations of $423.5 million for the fourth quarter of
fiscal 2012, and loss from operations of $135.8 million for the first quarter
of fiscal 2012.

Operating margin for the first quarter of fiscal 2013 was negative 89.4%
compared to negative 311.7% in the fourth quarter of fiscal 2012, and negative
67.9% in the first quarter of fiscal 2012.

Income tax benefit for the first quarter of fiscal 2013 was $1.3 million,
compared to income tax expense of $73.5 million in the fourth quarter of
fiscal 2012 and income tax benefit of $15.6 million 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.

LDK Solar ended the first quarter of fiscal 2013 with $174.1 million in cash
and cash equivalents and $168.4 million in short-term pledged bank deposits.

"The first quarter operating environment remained challenging for the solar
industry," stated Xingxue Tong, President and CEO of LDK Solar.  "We are
undertaking a number of initiatives focused on the restructuring of our
business.  We are working closely with our stakeholders and relevant
governmental agencies to negotiate solutions.  Furthermore, we remain
committed to improving our cost structure by driving down production costs,
tightening operating expenses and adapting our overall business to the
evolving demand environment to position LDK Solar for long-term growth. 

"While China still represents the strongest global growth opportunity, we
believe that Southeast Asia, Africa, India and the US are among several
emerging markets with additional growth potential.  We are focused on
increasing our market share in these areas, and recently reported that we
signed a module supply contract with a leading PV project developer in
Thailand.  Current conditions notwithstanding, we continue to believe there is
a 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 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.

Conference Call Details
The LDK Solar First Quarter 2013 teleconference and webcast is scheduled to
begin at 8:00 a.m. Eastern Time (ET), on June 11, 2013.  To listen to the live
conference call, please dial 877-941-2068 (within U.S.) or 480-629-9712
(outside U.S.) at 8:00 a.m. ET on June 11, 2013.  An audio replay of the call
will be available through June 21, 2013, by dialing 800-406-7325 (within U.S.)
or 303-590-3030 (outside U.S.) and entering the pass code 4621992#.

A live webcast of the call will be available on the company's investor
relations website at http://investor.ldksolar.com

 

LDK Solar Co., Ltd.
Unaudited Condensed Consolidated Balance Sheet Information
(In US$'000)
                                                                                    
                                                                      3/31/2013  12/31/2012
Assets
Current assets
    Cash and cash equivalents                                         174,101    98,283
    Pledged bank deposits                                             168,415    167,185
    Trade accounts and bills receivable, net                          162,511    162,210
    Inventories                                                       230,222    270,812
    Prepayments to suppliers, net                                     20,391     18,402
    Assets classified as held for sale                                508,142    511,541
    Other current assets                                              194,964    214,291
Total current assets                                                  1,458,746  1,442,724
Property, plant and equipment, net                                    3,040,452  3,087,293
Deposits for purchases of property, plant and equipment and land use  155,983    159,277
rights
Land use rights                                                       242,412    243,084
Prepayments to suppliers expected to be utilized beyond one year, net 7,214      7,978
Pledged bank deposits – non-current                                   13,221     17,845
Investments in associates                                             8,241      10,996
Other non-current assets                                              66,991     55,017
Total                                                                 4,993,260  5,024,214
assets                                                               
Liabilities, redeemable non-controlling interests and equity
Current liabilities
    Short-term borrowings and current installments of long-term       2,522,826  2,391,327
borrowings
    Trade accounts and bills payable                                  647,817    706,462
    Advance payments from customers, current
                                                                      129,467    131,847
        
installments                                                         
    Accrued expenses and other payables                               739,046    721,851
    Liabilities directly associated with assets classified as
                                                                      537,112    521,748
          held for
sale                                                        
    RMB-denominated US$-settled senior notes, less debt discount      260,214    -
    Convertible senior notes, less debt discount                      23,791     23,779
    Other financial liabilities                                       91,723     90,667
Total current liabilities                                             4,951,996  4,587,681
Long-term borrowings, excluding current installments and       109,759           109,548
long-term PRC notes
RMB-denominated US$-settled senior notes, less debt discount   -                 259,513
Advance payments from customers – non-current                  39,816            43,700
Other liabilities                                              195,668           203,242
Total liabilities                                              5,297,239         5,203,684
Redeemable non-controlling interests                           356,604           323,294
Equity
Total LDK Solar Co., Ltd. shareholders' equity                 (639,357)         (484,346)
Non-controlling interests                                      (21,226)          (18,418)
Total equity                                                   (660,583)         (502,764)
Total liabilities, redeemable non-controlling interests and    4,993,260         5,024,214
equity

 

LDK Solar Co., Ltd.
Unaudited Condensed Consolidated Statements of Operations Information
(In US$'000, except per ADS data)
                                                For the 3 Months Ended
                                                03/31/2013      12/31/2012
Net sales                                       104,341         135,898
Cost of goods sold                              (163,829)       (232,933)
Gross loss                                      (59,488)        (97,035)
Selling expenses                                (4,832)         (14,424)
General and administrative expenses             (25,914)        (130,057)
Research and development expenses               (2,995)         (2,926)
Impairment loss for goodwill and intangible     -               (26,743)
assets
Impairment loss for assets held for sales       -               (74,178)
Impairment loss for property, plant and         -               (78,170)
equipment
Total operating expenses                        (33,741)        (326,498)
Loss from operations                            (93,229)        (423,533)
Other income (expenses):
   Interest income                              1,207           1,876
   Interest expense and amortization of debt    (57,821)        (56,574)
issuance costs and debt discount
   Foreign currency exchange loss, net          (9,404)         (1,838)
   Others, net                                  1,855           3,081
Loss before income tax                          (157,392)       (476,988)
Income tax benefit (expense)                    1,341           (73,547)
Net loss                                        (156,051)       (550,535)
Loss attributable to non-controlling interests  2,966           33,825
Loss attributable to redeemable non-controlling 6,154           22,162
interests
Net loss attributable to LDK Solar Co., Ltd.    (146,931)       (494,548)
shareholders
Accretion to redemption value of redeemable     (40,155)        (53,954)
non-controlling interests
Net loss available to LDK Solar Co., Ltd.       (187,086)       (548,502)
shareholders
Net loss per ADS, Diluted                       $       (1.21)  $       (3.91)
Unaudited Condensed Consolidated Statement

of Comprehensive Income Information

(In US$ '000)
Net loss                                        (156,051)       (550,535)
Other comprehensive loss
Foreign currency exchange translation           6,471           12,222
adjustment, net of nil tax
Fair value changes in available-for-sale equity 724             (351)
security, net of tax effect
Comprehensive loss                              (148,856)       (538,664)
Less: comprehensive loss attributable to        (2,829)         (33,975)
noncontrolling interests
Less: comprehensive loss attributable to        (5,845)         (20,936)
redeemable noncontrolling interests
Comprehensive loss attributable to LDK Solar    (140,182)       (483,753)
Co., Ltd. shareholders

About LDK Solar (NYSE: LDK)

LDK Solar Co., Ltd. (NYSE: LDK) is a leading vertically integrated
manufacturer of photovoltaic (PV) products. LDK Solar manufactures
polysilicon, mono and multicrystalline ingots, wafers, cells, modules,
systems, power projects and solutions. LDK Solar's headquarters and principal
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 projects, 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 PV industry. Actual results may differ
materially from the anticipated results because of such and other risks and
uncertainties. LDK Solar undertakes no obligation to update forward-looking
statements to reflect subsequent events or circumstances, or changes in its
expectations, assumptions, estimates and projections except as may be required
by law.

SOURCE LDK Solar Co., Ltd.

Website: http://www.ldksolar.com
Contact: Lisa Laukkanen, The Blueshirt Group for LDK Solar, +1-415-217-4967,
lisa@blueshirtgroup.com, Jack Lai, Executive VP and CFO, LDK Solar Co., Ltd.,
+1-408-245-8801, IR@ldksolar.com
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