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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)
(iii) Two companies controlled by Mr. Peng have provided guarantees or collateral to JXLDK's bankers
to secure the JXLDK's bank loans (refer to note 9).
(iv) JXLDK borrowed an interest-free loan of US$2,561 from JXLXI in August 2006. The loan was
fully repaid in September 2006.
(v) In connection with the commencement of JXLDK's operation, JXLDK entered into agreements
(""Agreements'') with JXLXI to acquire rights to use certain parcels of land from JXLXI and certain
buildings constructed by JXLXI. Pursuant to the Agreements, the consideration for acquiring the land use
rights were determined based on its market value of US$3,273 assessed by an independent valuer Shanghai
Orient Real Estate Appraiser Co., Ltd. The consideration for acquiring the completed buildings and assets
under construction amounted to US$7,109 and US$637 respectively. JXLDK prepaid U$4,664 in 2005 and
paid U$6,355 in 2006 to JXLXI for such purchase. By December 31, 2006, the legal title of the first land use
rights and the completed buildings had been transferred to JXLDK.
(vi) JXLDK leased an office in Harbour Ring Plaza from SZ Liouxin free of charge. SZ Liouxin signed
the lease contract with a monthly rental charge of US$5. The period of the contract is from December 2005 to
December 2007.
(vii) Through Bank of China, Xinyu Branch, JXLDK borrowed US$14,971 from JXLXI. The loans
carry an interest rate of 5.022% and are repayable in June 2007.
(b) Amounts Outstanding
December 31, December 31,
2005 2006
Due from:
Advances receivable from SaiwengÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ
Advance payment for purchase of land use rights and buildings from
5,478 Ì
JXLXI ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4,664 Ì
10,142 Ì
Due to:
Payable to SZ LiouxinÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 434 Ì
Borrowing from Mr. Peng ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 16,109 Ì
16,543 Ì
Loans from Mr. Peng are repayable on demand and carried interest rates ranging from 5.52% S 6.138%.
The loans were jointly guaranteed by SZ Liouxin, Saiweng, JXLXI and JSLXI, which are companies
controlled by Mr. Peng.
F-36