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

Because we are a pure-play solar wafer manufacturer, we have established a number of long-term relationships
and sales arrangements with key players in the photovoltaic industry. Our current customer base consists of
some of the major international players in the photovoltaic cell and module manufacturing sector.
Experienced management team
We have an experienced management team led by our founder, chairman and chief executive officer, Mr.
Xiaofeng Peng, with proven execution capabilities in planning and implementing our corporate strategies.
Members of our senior management team have extensive experience in the photovoltaic industry, manufacturing
and corporate management. We believe the insight and execution capabilities of our management team
have been instrumental in managing our rapid growth and in achieving our current leading market position.
Subsequent to the incorporation of our principal operating subsidiary in China in July 2005, we made our first
commercial sales in April 2006 and became profitable in the first quarter of our operations. We believe that
the technical and industry knowledge and the business management experience of our senior executives
provide us with significant competitive advantages in the fast growing solar industry.
Our Strategies
Our principal objective is to strengthen our position as a global leader in the manufacturing of
multicrystalline solar wafers through increasing our production capacity and strengthening our cost competitiveness.
We intend to achieve this objective by pursuing the following strategies:
Expand our production capacity to meet customer demand and enhance economies of scale
We plan to expand our production capacity rapidly in order to gain market share and cement our position
as one of the leading players in the solar wafer industry. Both our upstream polysilicon suppliers and our
downstream solar cell and/or module manufacturer customers have been aggressively expanding their
operations due to strong global demand for solar products. We believe there exists an opportunity for us to
quickly grow our operations to support the development of the solar power industry chain. When our wafer
production capacity reaches approximately 400 MW by the end of 2007 and approximately 600 MW by mid-
2008 as currently anticipated, increased economies of scale will further enhance our competitive position
within the solar value chain. We plan to further expand our production capacity to approximately 800 MW by
the end of 2008.
Continue to improve our research and development to reduce manufacturing costs, improve production
yield and pursue technological innovation
We plan to devote substantial research and development resources and recruit additional experienced
research and development personnel to enhance our technological capabilities. As demand for photovoltaic
products increases and production capacity expands across the value chain, we believe that the ability to
maintain a competitive cost structure will be crucial to our success. We plan to continue providing high quality
solar wafers at competitive prices by focusing on research and development in the following areas:
‚ maximize the utilization of polysilicon by making larger ingots and thinner wafers;
‚ improve technologies used in our polysilicon and slurry recovery program;
‚ improve production output by making thinner and larger wafers;
‚ reduce the costs associated with consumable items, such as sawing wires, crucibles and slurry; and
‚ utilize more low-cost raw materials by improving our processing technology.
We will continue to devote substantial resources to research and development in order to improve our
production yield. We will also focus our research and development efforts on the application of next generation
solar technologies in order to strengthen our market position and capture future development opportunities in
the solar industry.
Secure supplies of polysilicon feedstock
To address the current industry-wide polysilicon shortage, we seek to enter into additional long-term
supply agreements with leading virgin polysilicon suppliers as well as recyclable polysilicon suppliers. Our
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