LDK Solar Co., Ltd. - Asia Europe Clean Energy (Solar) Advisory Co ...

(1) Gross profit for the year ended December 31, 2006 and the three months ended March 31, 2007 reflected $174,000 and $155,000 of
share-based compensation expense allocated to cost of goods sold, respectively.
(2)
Income from operations for the year ended December 31, 2006 and the three months ended March 31, 2007 reflected $2,028,000 and
$1,106,000 of share-based compensation expense, respectively.
(3) Interest expense for the year ended December 31, 2006 and the three months ended March 31, 2007 included $4,440,000 and nil
related to debt discount amortization for the embedded beneficial conversion feature of our exchangeable notes, respectively. See
note (14) to the audited consolidated financial statements.
(4) Our PRC subsidiary, Jiangxi LDK Solar, is entitled to exemption from PRC national enterprise income tax for at least two years and
PRC local enterprise income tax for at least five years, each beginning with calendar year 2006. Without this tax holiday, our income
tax expense would have increased and our net income and net income available to ordinary shareholders would have been reduced by
approximately $12,387,000 and $8,461,000 for the year ended December 31, 2006 and the three months ended March 31, 2007,
respectively. Our basic net income per ordinary share would have been reduced by $0.17 and $0.11 for the year ended December 31,
2006 and the three months ended March 31, 2007, respectively, and our diluted net income per ordinary share would have been
reduced by $0.17 and $0.09 for the year ended December 31, 2006 and the three months ended March 31, 2007, respectively.
(5) All share and per share data have been presented to give retrospective effect to our reorganization as described above.
The following table presents our summary consolidated balance sheet data as of December 31, 2005 and
2006 on an actual basis and as of March 31, 2007 (1) on an actual basis and (2) on a pro forma basis to give
effect to the automatic conversion of all of our outstanding preferred shares into 15,580,000 ordinary shares
upon the completion of this offering.
As of As of
December 31, December 31,
2005 2006 As of March 31, 2007
Actual
(in thousands)
Pro Forma
Consolidated Balance Sheet Data
Cash and cash equivalents ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 9,687 $ 30,227 $ 11,348 $ 11,348
Inventories ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 94,886 114,205 114,205
Prepayments to suppliers ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 966 37,718 52,777 52,777
Total current assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 20,815 172,746 194,052 194,052
Property, plant and equipment, net ÏÏÏÏÏÏÏÏÏÏÏÏÏ 10,491 100,875 117,678 117,678
Total assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 31,647 292,719 340,825 340,825
Short-term bank borrowingsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 56,765 61,481 61,481
Advance payments from customersÏÏÏÏÏÏÏÏÏÏÏÏÏ 3,717 40,002 41,832 41,832
Total current liabilities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 20,348 117,486 131,398 131,398
Long-term bank borrowings ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 30,245 29,805 29,805
Total liabilitiesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 20,348 147,733 161,205 161,205
Series A, Series B and Series C preferred shares Ì 87,744 90,686 Ì
Total shareholders' equityÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $11,299 $ 57,242 $ 88,934 $179,620
The following table sets forth a summary of our consolidated statement of cash flows data for the periods
specified:
Three Months Ended
Period From July 5 Year Ended
March 31,
to December 31, 2005 December 31, 2006
(in thousands)
2006 2007
Consolidated Statement of Cash Flows
Data
Net cash provided by (used in) operating
activities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 2,511 $ (57,067) $ 2,511 $ (8,707)
Net cash used in investing activities ÏÏÏÏÏÏ (20,940) (79,564) (19,095) (23,336)
Net cash provided by financing activities ÏÏ $ 28,077 $ 154,891 $ 30,902 $ 11,660
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