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

SELECTED CONSOLIDATED FINANCIAL AND OPERATING DATA
The following selected consolidated statement of operations data and statement of cash flows data for the
period from July 5, 2005, the date of our inception, to December 31, 2005 and for the year ended
December 31, 2006 and the selected consolidated balance sheet data as of December 31, 2005 and 2006 have
been derived from our audited consolidated financial statements included elsewhere in this prospectus. The
following selected consolidated statement of operations data and statement of cash flows data for the three
months ended March 31, 2006 and 2007 and the consolidated balance sheet data as of March 31, 2007 have
been derived from our unaudited condensed consolidated interim financial statements included elsewhere in
this prospectus. You should read the following selected consolidated financial data in conjunction with the
consolidated financial statements and related notes and the information under ""Management's Discussion and
Analysis of Financial Condition and Results of Operations'' included elsewhere in this prospectus. We have
prepared our consolidated financial statements in accordance with U.S. GAAP. Our historical results for any
period are not necessarily indicative of results to be expected for any future period.
We were incorporated in the Cayman Islands on May 1, 2006 as the holding company for, and currently
conduct our operations through, Jiangxi LDK Solar, which became our wholly owned subsidiary on July 10, 2006
when we acquired all of its equity interests. As the acquisition of Jiangxi LDK Solar was made between entities
under common control, the transaction has been accounted for in a manner similar to the pooling-of-interest
method. Accordingly, the assets and liabilities of Jiangxi LDK Solar have been included in our consolidated
financial statements at their historical amounts. The consolidated financial statements present our financial
condition and results of operations as if the acquisition had occurred as of the beginning of the earliest period
presented.
Period from
July 5 to
December 31,
Year
Ended
December 31,
Three Months Ended
March 31,
2005 2006 2006 2007
(in thousands, except per share data)
Consolidated Statement of Operations Data
Net sales ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ Ì $105,454 $ Ì $73,400
Gross profit (1) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 41,492 Ì 28,380
(Loss) income from operations (2) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (143) 37,145 (129) 26,117
Interest expense and amortization of discount on
exchange notes (3) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (102) (7,133) (340) (1,529)
Net (loss) income (4) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ
Accretion of Series A, Series B and Series C preferred
$ (274) $ 30,182 $ (440) $24,534
shares to redemption valuesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì (2,729) Ì (2,942)
Deemed dividend to Series A preferred shareholdersÏÏÏÏ Ì (1,568) Ì Ì
Net (loss) income available to ordinary shareholders (4)
Net (loss) income per ordinary share
(274) 25,885 (440) 21,592
(4)(5)
BasicÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ (0.01) $ 0.35 $ (0.01) $ 0.29
DilutedÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ (0.01) $ 0.35 $ (0.01) $ 0.27
(1)
Gross profit for the year ended December 31, 2006 and the three months ended March 31, 2007 reflected $174,000 and $155,000 of
share-based compensation expense allocated to cost of goods sold.
(2)
Income from operations for the year ended December 31, 2006 and the three months ended March 31, 2007 reflected $2,028,000 and
$1,106,000 of share-based compensation expense, respectively.
(3)
Interest expense for the year ended December 31, 2006 and the three months ended March 31, 2007 included $4,440,000 and nil
related to debt discount amortization for the embedded beneficial conversion feature of our exchangeable notes, respectively. See
note 14 to the audited consolidated financial statements.
(4)
Our PRC subsidiary, Jiangxi LDK Solar, is entitled to exemption from PRC national enterprise income tax for at least two years and
PRC local enterprise income tax for at least five years, each beginning with calendar year 2006. Without this tax holiday, our income
tax expense would have increased and our net income and net income available to ordinary shareholders would have been reduced by
approximately $12,387,000 and $8,461,000 for the year ended December 31, 2006 and the three months ended March 31, 2007,
respectively, and our basic net income per ordinary share would have been reduced by $0.17 and $0.11 for the year ended
December 31, 2006 and the three months ended March 31, 2007, respectively, and our diluted net income per share would have been
reduced by $0.17 and $0.09 for the year ended December 31, 2006 and the three months ended March 31, 2007, respectively.
(5)
All share and per share data have been presented to give retrospective effect to our reorganization as described above.
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