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

DIVIDEND POLICY
We have never declared or paid any dividends, nor do we anticipate paying any cash dividends on our
ordinary shares in the foreseeable future. We currently intend to retain most, if not all, of our available funds
and any future earnings for use in the operation and expansion of our business.
We are a holding company and our cash flow depends on dividends from our principal operating
subsidiary, Jiangxi LDK Solar, in China. The ability of our subsidiary in China to pay dividends to us is
subject to various restrictions, including legal restrictions in China that permit payment of dividends only out
of net income determined in accordance with PRC accounting standards and regulations. Under PRC laws,
Jiangxi LDK Solar, as a wholly foreign-owned enterprise in China, must allocate at least 10% of its after-tax
profit to its statutory general reserve fund until the balance of the fund reaches 50% of its registered capital. It
also has discretion in allocating its after-tax profit to its statutory employee welfare reserve fund. These reserve
funds are not distributable as cash dividends.
Our board of directors has complete discretion as to whether we will pay dividends in the future. Even if
our board of directors decides to pay dividends, the form, frequency and amount will depend upon our future
operations and earnings, capital requirements and surplus, general financial condition, contractual restrictions
and other factors that our board of directors may deem relevant.
The depositary has agreed to distribute any dividend we declare and pay on our ordinary shares evidenced
by ADSs to the holders of our ADSs, subject to the terms of the deposit agreement, to the same extent as
holders of our ordinary shares, less its fees and expenses payable under the deposit agreement and after
deduction of any applicable taxes. The depositary may send to you anything else we distribute on deposited
securities by means it considers lawful and reasonably practical. If it cannot make the distribution that way,
the depositary may decide to sell what we distribute and distribute the net proceeds in the same way as it does
with cash or hold what we distribute if it cannot be sold. Cash dividends on our ordinary shares, if any, will be
paid in U.S. dollars. See ""Description of American Depositary Shares'' in this prospectus for additional
information.
38