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

More documents

Recommendations

Info

previously deemed material, but are material under the guidance in SAB 108. We do not expect the initial adoption of SAB 108 to affect our consolidated financial condition or results of operations. 66
BUSINESS Overview We manufacture multicrystalline solar wafers. Solar wafers are thin sheets of crystalline silicon material primarily made by slicing multicrystalline ingots or monocrystalline boules. Wafers are the principal raw material used to produce solar cells, which are devices capable of converting sunlight into electricity. We sell multicrystalline wafers globally to manufacturers of photovoltaic products, including solar cells and solar modules. We produce and sell solar wafers between 180 and 240 microns in thickness. In addition, we provide wafer processing services to both monocrystalline and multicrystalline solar cell and module manufacturers. We manufacture multicrystalline ingots from polysilicon feedstock in our DSS furnaces as an interim step in producing wafers. In addition to using solar-grade virgin polysilicon, we also use other polysilicon materials from various sources in our ingot manufacturing process. We have developed proprietary production processes for the use of polysilicon scraps and recyclable polysilicon in manufacturing our ingots while maintaining our product quality and performance. We use substantially all of our ingots for production of our own wafers, and also sell a portion of our ingots directly to our customers. As of March 31, 2007, we had an annual multicrystalline wafer production capacity of approximately 215 MW. We intend to increase our annual multicrystalline wafer production capacity to approximately 400 MW by the end of 2007 and approximately 800 MW by the end of 2008. Despite the current industry-wide shortage of polysilicon, we have inventory and commitments from suppliers that we believe will satisfy over 90% of our estimated requirements through the end of 2007 and approximately 50% of our estimated requirements for 2008. Many of our polysilicon supply agreements are subject to fluctuating market prices or price negotiations with our suppliers. The majority of our polysilicon feedstock consists of polysilicon scraps and recyclable polysilicon. In addition to polysilicon scraps and recyclable polysilicon, we also use virgin polysilicon as polysilicon feedstock. We have purchased polysilicon scraps and recyclable polysilicon from semiconductor materials trading companies, including Komex, Kunical and Prime. We have also purchased virgin polysilicon from virgin polysilicon manufacturers including MEMC and Wacker Chemie AG, or Wacker. In addition, some of our major customers, including CSI and Q-Cells, also have supplied us with polysilicon feedstock. We also source polysilicon feedstock from the spot market from time to time depending on the price and our requirements. Our principal customers have included CSI, Chinalight, Solarfun, Solartech Energy, Solland Solar and Suntech. We also sell our wafers to BP Solar, E-Ton, GE Energy, Motech, Q-Cells, and other customers. Historically, the majority of our sales have been in China. We are enhancing and broadening our revenue and customer base to target other leading global photovoltaic cell and module producers. Our increasing scale of operations and continuous cost reduction program have reduced our unit production cost since our inception. We have a dedicated research and development team, whose primary objectives are to enhance our product quality and achieve a more efficient manufacturing process by improving production yield and lowering production costs. We were incorporated in the Cayman Islands on May 1, 2006. Our principal operating subsidiary, Jiangxi LDK Solar, was incorporated in China on July 5, 2005. Since we made our first commercial sale of our multicrystalline wafers in April 2006, we have experienced significant growth. Our net sales increased from $12.1 million for the three months ended June 30, 2006 to $31.5 million for the three months ended September 30, 2006, $61.9 million for the three months ended December 31, 2006 and $73.4 million for the three months ended March 31, 2007. Our net income increased from $1.3 million for the three months ended June 30, 2006 to $5.0 million for the three months ended September 30, 2006, $24.3 million for the three months ended December 31, 2006 and $24.5 million for the three months ended March 31, 2007. Our Industry Solar power is one of the most rapidly growing renewable energy sources in the world today. The photovoltaic industry has experienced significant growth over the past decade. Despite the rapid growth, according to the International Energy Agency's estimates, solar energy constituted less than 0.4% of the world's total primary energy supply in 2004. According to Photon International, global crystalline solar cell or 67
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 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 142 and 143:
Page 144 and 145:
Page 146 and 147:
Page 148 and 149:
Page 150 and 151:
Page 152 and 153:
Page 154 and 155:
Page 156 and 157:
Page 158 and 159:
Page 160 and 161:
Page 162 and 163:
Page 164 and 165:
Page 166 and 167:
Page 168 and 169:
Page 170 and 171:
Page 172 and 173:
Page 174 and 175:
Page 176 and 177:
Page 178 and 179:
Page 180 and 181:
Page 182 and 183:
Page 184 and 185:
Page 186 and 187:
Page 188 and 189:
Page 190 and 191:
Page 192 and 193:
Page 194:
(This page intentionally left blank
show all

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

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?