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LDK SOLAR CO., LTD. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
FOR THE PERIOD FROM JULY 5, 2005 TO DECEMBER 31, 2005
AND THE YEAR ENDED DECEMBER 31, 2006
(Amounts in US$ thousands, except share and per share data)
Depreciation expense was US$1 and US$2,673 for the period from July 5, 2005 to December 31, 2005
and the year ended December 31, 2006 respectively.
(7) INTANGIBLE ASSET, NET
December 31, December 31,
2005 2006
Technical know-how
Cost ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 1,242
Less: Accumulated amortizationÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì (93)
Ì 1,149
Technical know-how was acquired by JXLDK from equipment manufacturers for operation of the
equipment.
Amortization expenses of the above technical know-how was US$ nil and US$93 for the period from
July 5, 2005 to December 31, 2005 and the year ended December 31, 2006 respectively. For each of the next
five years, annual amortization expense of the technical know-how is expected to be US$121.
(8) LAND USE RIGHTS
Land use rights represent fees paid to the government and a company controlled by Mr. Peng (see
note 22) to obtain the rights to use certain land over periods ranging from 49.5 to 50 years in the PRC. All
land use rights have been pledged with banks for the short-term bank loans and long-term bank loans.
(9) BANK BORROWINGS
(a) Current
December 31, December 31,
2005 2006
Bank borrowings Ì securedÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 20,026
Bank borrowings Ì unsecuredÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 31,739
Current installments of long-term bank borrowings (note (b)) ÏÏÏÏÏÏ Ì 5,000
Ì 56,765
The short-term bank borrowings outstanding as of December 31, 2006 carry a weighted average interest
rate of 5.876%. The short-term bank borrowings have maturity terms ranging from one to twelve months and
interest rates ranging from 5.022% to 6.968% and are borrowed for working capital purpose. None of the shortterm
bank borrowings contain any financial covenants. Bank loans of US$19,210 were secured over JXLDK's
buildings and land use rights with the carrying amounts of US$6,242 and US$3,281 as of December 31, 2006
respectively as well as buildings and land use rights owned by a company controlled by Mr. Peng. A
discounted bill of US$816 was included in secured bank borrowings as of December 31, 2006 (see
note 13(c)).
Through Bank of China, Xinyu Branch, JXLDK borrowed US$14,971 from Jiangxi Liouxin Industry
Co., Ltd. (""JXLXI'') in December 2006 through an entrusted loan agreement. The loan carries an interest
rate of 5.022% and is repayable in June 2007. The entrusted loan was included in unsecured bank borrowings
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