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

More documents

Recommendations

Info

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) (10) ACCRUED EXPENSES AND OTHER PAYABLES Components of accrued expenses and other payables are as follows: December 31, December 31, 2005 2006 Purchase of equipmentÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 10,893 Purchase of land use right ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 1,268 Accrued payroll and welfare ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1 982 Indirect taxes payable ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2 93 Other accrualsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 82 1,364 85 14,600 (11) INTEREST COSTS The following is a summary of the Group's interest costs incurred during 2005 and 2006: From July 5, 2005 to Year ended December 31, December 31, 2005 2006 Interest cost capitalized ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Interest cost charged to income Ì 122 Ì Interest cost ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 102 2,680 Ì Interest on the exchangeable notes ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 13 Ì Discount amortization on the exchangeable notes (note 14) ÏÏÏÏÏÏ Ì 4,440 Sub-total ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 102 7,133 Total interest cost ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 102 7,255 (12) INCOME TAXES The Company and its subsidiaries file separate income tax returns. Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on its income or capital gains. In addition, upon any payment of dividends by the Company, no Cayman Islands withholding tax is imposed. Peoples' Republic of China JXLDK is governed by the income tax law of the PRC concerning foreign investment and foreign enterprises (the ""FEIT Law''). Under the FEIT Law, JXLDK is entitled to exemption from income tax for at least 2 years starting from the 2006 calendar year and is entitled to a 50% tax reduction for the succeeding 3 years beginning from 2008. Upon the expiration of such preferential tax treatment, JXLDK will be subject to the PRC enterprise income tax rate of 33%. F-20
HK SAR 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) No provision has been made for Hong Kong Profits Tax as HK International did not have assessable profits subject to Hong Kong Profits Tax during the period. The income tax benefit attributable to income from operations, which are substantially derived from PRC sources, consist of: From July 5, 2005 to Year ended December 31, December 31, 2005 2006 Current income tax ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì Deferred income tax benefit ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (35) (113) Total income tax benefit ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (35) (113) The actual income tax benefit differed from the amounts computed by applying the statutory PRC enterprise income tax rate of 33% to pre-tax (loss) income as a result of the following: From July 5, 2005 to Year ended December 31, December 31, 2005 2006 (Loss) income before tax ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (309) 100% 30,069 100% Computed income tax (benefit) expense ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Non-deductible expenses (102) 33% 9,922 33% Discount amortization on the exchangeable notes ÏÏÏÏÏÏÏÏÏÏÏ Ì Ì 1,465 5% Share-based compensation ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì 669 2% Pre-operating expenses ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 67 (22%) 217 1% Others ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì 1 0% Tax holidayÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì (12,387) (41%) Actual income tax benefit (35) 11% (113) (0%) Without the tax holiday the Group's income tax expense would have increased and basic and diluted net income per ordinary share for the year ended December 31, 2006 would have been reduced by US$12,387 and US$0.17, respectively. The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets are presented below. There were no deferred tax liabilities as of December 31, 2006. December 31, December 31, 2005 2006 Deferred income tax asset Ì non current Pre-operating expensesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 35 148 Less: valuation allowanceÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì Net deferred tax assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 35 148 F-21
Page 1:
PROSPECTUS 17,384,000 American Depo
Page 4 and 5:
(This page intentionally left blank
Page 6 and 7:
We were incorporated in the Cayman
Page 8 and 9:
percentage of light energy from the
Page 10 and 11:
Listing ÏÏÏÏÏÏÏÏÏÏÏÏÏ
Page 12 and 13:
(1) Gross profit for the year ended
Page 14 and 15:
RISK FACTORS Investment in our ADSs
Page 16 and 17:
Reduction or elimination of governm
Page 18 and 19:
capacity or to increase our manufac
Page 20 and 21:
delivery or failure to meet deliver
Page 22 and 23:
specifications or product defects.
Page 24 and 25:
Compliance with environmental regul
Page 26 and 27:
operations or the price of our ADSs
Page 28 and 29:
tax rates and other measures. Forei
Page 30 and 31:
company in connection with any incr
Page 32 and 33:
of approximately $22.05 in the net
Page 34 and 35:
outside the United States. As a res
Page 36 and 37:
The forward-looking statements cont
Page 38 and 39:
CAPITALIZATION The following table
Page 40 and 41:
DILUTION If you invest in our ADSs,
Page 42 and 43:
DIVIDEND POLICY We have never decla
Page 44 and 45:
SELECTED CONSOLIDATED FINANCIAL AND
Page 46 and 47:
MANAGEMENT'S DISCUSSION AND ANALYSI
Page 48 and 49:
polysilicon prices will decline in
Page 50 and 51:
listed public company in the United
Page 52 and 53:
increase. See ""Risk Factors Ì Ris
Page 54 and 55:
subjective. The assumptions used in
Page 56 and 57:
2006 and February 6, 2007. During t
Page 58 and 59:
value of the our business. Under th
Page 60 and 61:
Year Ended December 31, 2006 (in th
Page 62 and 63:
""Exchange Rate Information'' in th
Page 64 and 65:
ended September 30, 2006, net incom
Page 66 and 67:
For additional information relating
Page 68 and 69:
The non-cancelable purchase obligat
Page 70 and 71:
previously deemed material, but are
Page 72 and 73:
module production will increase fro
Page 74 and 75:
The following diagram illustrates t
Page 76 and 77:
Because we are a pure-play solar wa
Page 78 and 79:
Wafering. After passing inspection,
Page 80 and 81:
our revenue and customer base to ta
Page 82 and 83:
‚ Our agreement with E'mei Semi-c
Page 84 and 85:
photovoltaic cell or modules, and w
Page 86 and 87:
A breakdown of our employees by are
Page 88 and 89:
tax treatments to foreign-invested
Page 90 and 91:
On September 21, 2006, the CSRC pub
Page 92 and 93:
Gang Wang is a non-executive direct
Page 94 and 95:
directors on our audit committee wi
Page 96 and 97:
monies of or belonging to us may be
Page 98 and 99:
(10) Vests on July 31, 2007. Brilli
Page 100 and 101:
Securities (USA) LLC, which is a re
Page 102 and 103:
interest-bearing loans directly to
Page 104 and 105:
person, by its duly authorized repr
Page 106 and 107: History of Securities Issuances The
Page 108 and 109: persuasive authority in the Cayman
Page 110 and 111: making any sale by public or privat
Page 112 and 113: Reports and Other Communications Wi
Page 114 and 115: Amendment and Termination How may t
Page 116 and 117: ‚ deliver distributions on any AD
Page 118 and 119: SHARES ELIGIBLE FOR FUTURE SALE Upo
Page 120 and 121: TAXATION The following summary of m
Page 122 and 123: individual, up to $3,000 of capital
Page 124 and 125: person and on sales of ordinary sha
Page 126 and 127: The estimated offering expenses pay
Page 128 and 129: Pricing of the Offering Prior to th
Page 130 and 131: ADS with a view to selling it to th
Page 132 and 133: EXPENSES RELATING TO THIS OFFERING
Page 134 and 135: ‚ no new admissible evidence rele
Page 136 and 137: WHERE YOU CAN FIND ADDITIONAL INFOR
Page 138 and 139: REPORT OF INDEPENDENT REGISTERED PU
Page 140 and 141: LDK SOLAR CO., LTD. AND SUBSIDIARIE
Page 194: (This page intentionally left blank
show all

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

Create successful ePaper yourself

Delete template?

Save as template?