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

LDK SOLAR CO., LTD. AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED
CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2006 AND 2007
(Amounts in US$ thousands, except share and per share data)
(9) NET (LOSS) INCOME PER SHARE
The computation of basic and diluted net (loss) income per share is as follows:
Three-month Periods Ended
March 31, March 31,
2006 2007
Numerator used in computing basic net (loss) income per share, net
(loss) income available to ordinary shareholders ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (440) 21,592
Accretion of Series A redeemable convertible preferred shares to
redemption value ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ
Accretion of Series B redeemable convertible preferred shares to
Ì 512
redemption value ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ
Accretion of Series C redeemable convertible preferred shares to
Ì 1,625
redemption value ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 805
Numerator used in computing diluted net (loss) income per share ÏÏÏ (440) 24,534
Shares (denominator):
Weighted average number of ordinary shares outstanding used in
computing basic net (loss) income per shareÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 75,000,000 75,000,000
Plus weighted average Series A redeemable convertible preferred
shares outstanding ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ
Plus weighted average Series B redeemable convertible preferred
Ì 4,580,000
shares outstanding ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ
Plus weighted average Series C redeemable convertible preferred
Ì 8,000,000
shares outstanding ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ
Weighted average number of ordinary shares outstanding used in
Ì 3,000,000
computing diluted net (loss) income per share ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 75,000,000 90,580,000
Net (loss) income per share Ì basic ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (0.01) 0.29
Net (loss) income per share Ì dilutedÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (0.01) 0.27
During the three-month period ended March 31, 2007, the Group's dilutive potential ordinary shares
outstanding, in addition to the Series A, B and C redeemable convertible preferred shares included in the
above computation, consist of share options and warrants issued in connection with the Series A Shares. In
computing diluted income per share for the three-month period ended March 31, 2007, there was no dilutive
effect of outstanding share options of 8,159,800 by applying the treasury stock method because the ordinary
shares assumed to be issued upon the exercise of the share options was less than the number of shares assumed
to be purchased at the average estimated fair value during the period. The proceeds used for the assumed
purchase include the sum of the exercise price of the share options and the average unrecognized
compensation cost. There was no dilutive effect of outstanding warrants because the condition to trigger the
exercising of the warrants was not satisfied as of March 31, 2007, and was assumed to remain unchanged until
the end of the contingency period.
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