6-K 1 d448546d6k.htm FORM 6-K Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of December 2012

Commission File Number: 001-33464

 

 

LDK SOLAR CO., LTD.

(Translation of registrant’s name into English)

 

 

Hi-Tech Industrial Park

Xinyu City

Jiangxi Province 338032

People’s Republic of China

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F  x            Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ¨

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes  ¨             No  x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-             

 

 

 


LDK Solar Reports Financial Results for Third Quarter of Fiscal 2012

We, LDK Solar Co., Ltd., have reported our unaudited financial results for the third quarter ended September 30, 2012. All financial results are reported in U.S. dollars on a U.S. GAAP basis.

Third Quarter Highlights

 

 

Net sales of $291.5 million; and

 

 

Shipped 230.2 megawatts, or MW, of wafers and 161.9 MW of cells and modules in the third quarter.

Net sales for the third quarter of fiscal 2012 were $291.5 million, compared to $235.4 million for the second quarter of fiscal 2012, and $471.9 million for the third quarter of fiscal 2011.

Gross loss for the third quarter of fiscal 2012 was $32.5 million, compared to gross loss of $92.0 million in the second quarter of fiscal 2012, and gross loss of $17.0 million for the third quarter of fiscal 2011.

Gross margin for the third quarter of fiscal 2012 was negative 11.2%, compared to negative 39.1% in the second quarter of fiscal 2012, and negative 3.6% in the third quarter of fiscal 2011.

During the preparation of our third quarter 2012 financial results, our management determined that an inventory write-down of $37.8 million was required as a result of a continuous drop in the market price for polysilicon, wafers, cells and modules. As a result, gross margin and results from operations were negatively impacted in the third quarter of fiscal 2012.

Loss from operations for the third quarter of fiscal 2012 was $75.7 million, compared to loss from operations of $172.7 million for the second quarter of fiscal 2012, and loss from operations of $77.1 million for the third quarter of fiscal 2011.

Operating margin for the third quarter of fiscal 2012 was negative 26.0% compared to negative 73.4% in the second quarter of fiscal 2012, and negative 16.3% in the third quarter of fiscal 2011.

Income tax benefit for the third quarter of fiscal 2012 was $25.4 million, compared to income tax benefit of $23.7 million in the second quarter of fiscal 2012 and income tax benefit of $1.7 million in the third quarter of fiscal 2011.

Net loss available to our shareholders for the third quarter of fiscal 2012 was $136.9 million, or a loss of $1.08 per diluted American depositary share, or ADS, compared to net loss of $254.3 million, or a loss of $2.00 per diluted ADS, for the second quarter of fiscal 2012 and net loss of $114.5 million, or a loss of $0.87 per diluted ADS for the third quarter of fiscal 2011. The number of shares for calculating diluted ADS was approximately 127.2 million for the third quarter of fiscal 2012.

We ended the third quarter of fiscal 2012 with $111.9 million in cash and cash equivalents and $340.7 million in short-term pledged bank deposits.

 

2


LDK Solar Co., Ltd.

Unaudited Condensed Consolidated Balance Sheet Information

(In US$’000)

 

     09/30/2012      06/30/2012  

Assets

     

Current assets

     

Cash and cash equivalents

     111,859         296,193   

Pledged bank deposits

     340,651         523,383   

Trade accounts and bills receivable, net

     290,211         342,174   

Inventories

     324,512         467,148   

Prepayments to suppliers, net

     27,085         37,035   

Other current assets

     346,972         350,320   
  

 

 

    

 

 

 

Total current assets

     1,441,290         2,016,253   

Property, plant and equipment, net

     3,658,189         3,728,797   

Deposits for purchases of property, plant and equipment and land use rights

     159,898         169,442   

Land use rights

     282,978         285,214   

Prepayments to suppliers expected to be utilized beyond one year, net

     8,701         9,519   

Pledged bank deposits – non-current

     30,820         30,713   

Investments in associates

     11,035         11,893   

Other non-current assets

     170,438         149,407   
  

 

 

    

 

 

 

Total assets

     5,763,349         6,401,238   
  

 

 

    

 

 

 

Liabilities and equity

     

Current liabilities

     

Short-term borrowings and current installments of long-term borrowings and short-term PRC notes

     2,206,374         2,430,973   

Trade accounts and bills payable

     1,043,623         1,032,861   

Advance payments from customers, current installments

     129,838         181,823   

Accrued expenses and other payables

     782,124         783,859   

Convertible senior notes, less debt discount – current

     23,766         23,755   

Other financial liabilities

     64,220         65,221   
  

 

 

    

 

 

 

Total current liabilities

     4,249,945         4,518,492   

Long-term borrowings, excluding current installments and long-term PRC notes

     645,367         854,172   

RMB-denominated US$-settled senior notes, less debt discount and Convertible senior notes – non-current

     257,228         257,870   

Advance payments from customers – non-current

     50,219         101,033   

Other liabilities

     215,655         223,055   
  

 

 

    

 

 

 

Total liabilities

     5,418,414         5,954,622   
  

 

 

    

 

 

 

Redeemable non-controlling interests

     299,025         254,444   
  

 

 

    

 

 

 

Equity

     

Total LDK Solar Co., Ltd. shareholders’ equity

     29,697         171,917   

Non-controlling interests

     16,213         20,255   
  

 

 

    

 

 

 

Total equity

     45,910         192,172   
  

 

 

    

 

 

 

Total liabilities and equity

     5,763,349         6,401,238   
  

 

 

    

 

 

 

 

3


LDK Solar Co., Ltd.

Unaudited Condensed Consolidated Statements of Operations Information

(In US$’000, except per ADS data)

 

     For the 3 Months Ended  
     09/30/2012     06/30/2012  

Net sales

     291,520        235,361   

Cost of goods sold

     (324,048     (327,356
  

 

 

   

 

 

 

Gross loss

     (32,528     (91,995

Selling expenses

     (10,373     (11,043

General and administrative expenses

     (29,518     (34,410

Research and development expenses

     (3,300     (4,707

Impairment loss for property, plant and equipment

     —          (30,504
  

 

 

   

 

 

 

Total operating expenses

     (43,191     (80,664
  

 

 

   

 

 

 

Loss from operations

     (75,719     (172,659

Other income (expenses):

    

Interest income

     4,477        3,414   

Interest expense and amortization of debt issuance costs and debt discount

     (61,045     (75,547

Foreign currency exchange gain (loss), net

     1,339        (6,913

Others, net

     9,619        (435
  

 

 

   

 

 

 

Loss before income tax

     (121,329     (252,140

Income tax benefit

     25,396        23,707   
  

 

 

   

 

 

 

Net loss

     (95,933     (228,433

Loss attributable to non-controlling interests

     3,925        1,037   

Loss attributable to redeemable non-controlling interests

     6,222        6,082   

Net loss attributable to LDK Solar Co., Ltd. shareholders

     (85,786     (221,314

Accretion to redemption value of redeemable non-controlling interests

     (51,157     (33,027
  

 

 

   

 

 

 

Net loss available to LDK Solar Co., Ltd. shareholders

     (136,943     (254,341
  

 

 

   

 

 

 

Net loss per ADS, Diluted

   $ (1.08   $ (2.00
  

 

 

   

 

 

 

 

4


Unaudited Condensed Consolidated Statement

of Comprehensive Income Information

 

Net loss

     (95,933     (228,433

Other comprehensive loss

    

Foreign currency exchange translation adjustment, net of nil tax

     (7,033     (6,486

Fair value changes in available-for-sale equity security, net of tax effect

     (930     (2,693

Comprehensive loss

     (103,896     (237,612

Less: comprehensive loss attributable to noncontrolling interests

     (3,663     (1,368

Less: comprehensive loss attributable to redeemable noncontrolling interests

     (6,576     (6,801

Comprehensive loss attributable to LDK Solar Co., Ltd. shareholders

     (93,657     (229,443

Incorporation by Reference

This report on Form 6-K (except for our press release attached hereto as Exhibit 99.1) is hereby incorporated by reference into our registration statements filed with the SEC under the Securities Act of 1933, as amended.

Exhibit

Attached hereto as Exhibit 99.1 is the press release we issued on December 3, 2012 relating to our unaudited financial results for the third quarter 2012, which is furnished to the SEC.

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

LDK SOLAR CO., LTD.
By:  

/s/ Jack Lai

Name:   Jack Lai
Title:   Chief Financial Officer

Date: December 3, 2012

 

6


Exhibit 99.1

 

LOGO

LDK Solar Reports Financial Results for Third Quarter of Fiscal 2012

Xinyu City, China and Sunnyvale, California, December 3, 2012 – LDK Solar Co., Ltd. (“LDK Solar”; NYSE: LDK), a leading vertically integrated manufacturer of photovoltaic products, today reported its unaudited financial results for the third quarter ended September 30, 2012.

All financial results are reported in U.S. dollars on a U.S. GAAP basis.

Third Quarter Highlights:

 

 

Net sales of $291.5 million; and

 

 

Shipped 230.2 megawatts (MW) of wafers and 161.9 MW of cells and modules in the third quarter.

Net sales for the third quarter of fiscal 2012 were $291.5 million, compared to $235.4 million for the second quarter of fiscal 2012, and $471.9 million for the third quarter of fiscal 2011.

Gross loss for the third quarter of fiscal 2012 was $32.5 million, compared to gross loss of $92.0 million in the second quarter of fiscal 2012, and gross loss of $17.0 million for the third quarter of fiscal 2011.

Gross margin for the third quarter of fiscal 2012 was negative 11.2%, compared to negative 39.1% in the second quarter of fiscal 2012, and negative 3.6% in the third quarter of fiscal 2011.

During the preparation of its third quarter 2012 financial results, LDK Solar’s management determined that an inventory write-down of $37.8 million was required as a result of a continuous drop in the market price for polysilicon, wafers, cells and modules. As a result, gross margin and results from operations were negatively impacted in the third quarter of fiscal 2012.

Loss from operations for the third quarter of fiscal 2012 was $75.7 million, compared to loss from operations of $172.7 million for the second quarter of fiscal 2012, and loss from operations of $77.1 million for the third quarter of fiscal 2011.

Operating margin for the third quarter of fiscal 2012 was negative 26.0% compared to negative 73.4% in the second quarter of fiscal 2012, and negative 16.3% in the third quarter of fiscal 2011.

Income tax benefit for the third quarter of fiscal 2012 was $25.4 million, compared to income tax benefit of $23.7 million in the second quarter of fiscal 2012 and income tax benefit of $1.7 million in the third quarter of fiscal 2011.

Net loss available to LDK Solar’s shareholders for the third quarter of fiscal 2012 was $136.9 million, or a loss of $1.08 per diluted ADS, compared to net loss of $254.3 million, or a loss of $2.00 per diluted ADS for the second quarter of fiscal 2012 and net loss of $114.5 million, or a loss of $0.87 per diluted ADS for the third quarter of fiscal 2011. The number of shares for calculating diluted ADS was approximately 127.2 million for the third quarter of fiscal 2012.

LDK Solar ended the third quarter of fiscal 2012 with $111.9 million in cash and cash equivalents and $340.7 million in short-term pledged bank deposits.

“We were pleased to deliver third quarter results that were in line with expectations,” stated Xingxue Tong, President and CEO of LDK Solar. “While we saw improvement to our top and bottom line in the third quarter, our results continue to reflect the industry-wide pricing pressure and demand weakness that is negatively impacting the entire solar supply chain.”

“Over the past several weeks, we have taken a number of steps to increase operating efficiencies and improve our liquidity, including realigning the management team and the share purchase agreement with Heng Rui Xin Energy. We are making progress on our strategy to streamline operations, prudently manage expenses and diversify our business. We plan to continue to actively manage our business to adapt to market developments and position the company for future growth,” concluded Mr. Tong.

 

7


Business Outlook

The following statements are based upon management’s current expectations. These statements are forward-looking in nature, and the actual results may differ materially. You should read the “Safe Harbor Statement” below with respect to the risks and uncertainties relating to these forward-looking statements.

For the fourth quarter of fiscal 2012, LDK Solar estimates its revenue to be in the range of $230 million to $290 million, wafer shipments between 200 MW and 250 MW, cells and module shipments between 50 MW and 80 MW.

For fiscal 2012, LDK Solar estimates its revenue to be in the range of $950 million to $1 billion, wafer shipments between 910 MW and 960 MW, cell and module shipments between 500 MW and 530 MW and inverter shipments between 150 MW to 200 MW. LDK Solar expects PV system project construction to be in the range of 200 MW to 300 MW and to recognize between 50 MW and 100 MW through project sales and EPC services for third party customers.

Conference Call Details

The LDK Solar Third Quarter 2012 teleconference and webcast is scheduled to begin at 8:00 a.m. Eastern Time (ET), on December 3, 2012. To listen to the live conference call, please dial 877-941-1427 (within U.S.) or 480-629-9664 (outside U.S.) at 8:00 a.m. ET on December 3, 2012. An audio replay of the call will be available through December 13, 2012, by dialing 800-406-7325 (within U.S.) or 303-590-3030 (outside U.S.) and entering the pass code 4574985#.

A live webcast of the call will be available on the company’s investor relations website at http://investor.ldksolar.com.

 

8


LDK Solar Co., Ltd.

Unaudited Condensed Consolidated Balance Sheet Information

(In US$’000)

 

     09/30/2012      06/30/2012  

Assets

     

Current assets

     

Cash and cash equivalents

     111,859         296,193   

Pledged bank deposits

     340,651         523,383   

Trade accounts and bills receivable, net

     290,211         342,174   

Inventories

     324,512         467,148   

Prepayments to suppliers, net

     27,085         37,035   

Other current assets

     346,972         350,320   
  

 

 

    

 

 

 

Total current assets

     1,441,290         2,016,253   

Property, plant and equipment, net

     3,658,189         3,728,797   

Deposits for purchases of property, plant and equipment and land use rights

     159,898         169,442   

Land use rights

     282,978         285,214   

Prepayments to suppliers expected to be utilized beyond one year, net

     8,701         9,519   

Pledged bank deposits – non-current

     30,820         30,713   

Investments in associates

     11,035         11,893   

Other non-current assets

     170,438         149,407   
  

 

 

    

 

 

 

Total assets

     5,763,349         6,401,238   
  

 

 

    

 

 

 

Liabilities and equity

     

Current liabilities

     

Short-term borrowings and current installments of long-term borrowings and short-term PRC notes

     2,206,374         2,430,973   

Trade accounts and bills payable

     1,043,623         1,032,861   

Advance payments from customers, current installments

     129,838         181,823   

Accrued expenses and other payables

     782,124         783,859   

Convertible senior notes, less debt discount – current

     23,766         23,755   

Other financial liabilities

     64,220         65,221   
  

 

 

    

 

 

 

Total current liabilities

     4,249,945         4,518,492   

Long-term borrowings, excluding current installments and long-term PRC notes

     645,367         854,172   

RMB-denominated US$-settled senior notes, less debt discount and Convertible senior notes – non-current

     257,228         257,870   

Advance payments from customers – non-current

     50,219         101,033   

Other liabilities

     215,655         223,055   
  

 

 

    

 

 

 

Total liabilities

     5,418,414         5,954,622   
  

 

 

    

 

 

 

Redeemable non-controlling interests

     299,025         254,444   
  

 

 

    

 

 

 

Equity

     

Total LDK Solar Co., Ltd. shareholders’ equity

     29,697         171,917   

Non-controlling interests

     16,213         20,255   
  

 

 

    

 

 

 

Total equity

     45,910         192,172   
  

 

 

    

 

 

 

Total liabilities and equity

     5,763,349         6,401,238   
  

 

 

    

 

 

 

 

9


LDK Solar Co., Ltd.

Unaudited Condensed Consolidated Statements of Operations Information

(In US$’000, except per ADS data)

 

     For the 3 Months Ended  
     09/30/2012     06/30/2012  

Net sales

     291,520        235,361   

Cost of goods sold

     (324,048     (327,356
  

 

 

   

 

 

 

Gross loss

     (32,528     (91,995

Selling expenses

     (10,373     (11,043

General and administrative expenses

     (29,518     (34,410

Research and development expenses

     (3,300     (4,707

Impairment loss for property, plant and equipment

     —          (30,504
  

 

 

   

 

 

 

Total operating expenses

     (43,191     (80,664
  

 

 

   

 

 

 

Loss from operations

     (75,719     (172,659

Other income (expenses):

  

Interest income

     4,477        3,414   

Interest expense and amortization of debt issuance costs and debt discount

     (61,045     (75,547

Foreign currency exchange gain (loss), net

     1,339        (6,913

Others, net

     9,619        (435
  

 

 

   

 

 

 

Loss before income tax

     (121,329     (252,140

Income tax benefit

     25,396        23,707   
  

 

 

   

 

 

 

Net loss

     (95,933     (228,433

Loss attributable to non-controlling interests

     3,925        1,037   

Loss attributable to redeemable non-controlling interests

     6,222        6,082   

Net loss attributable to LDK Solar Co., Ltd. shareholders

     (85,786     (221,314

Accretion to redemption value of redeemable non-controlling interests

     (51,157     (33,027
  

 

 

   

 

 

 

Net loss available to LDK Solar Co., Ltd. shareholders

     (136,943     (254,341
  

 

 

   

 

 

 

Net loss per ADS, Diluted

   $ (1.08   $ (2.00
  

 

 

   

 

 

 

 

10


Unaudited Condensed Consolidated Statement

of Comprehensive Income Information

 

Net loss

     (95,933     (228,433

Other comprehensive loss

    

Foreign currency exchange translation adjustment, net of nil tax

     (7,033     (6,486

Fair value changes in available-for-sale equity security, net of tax effect

     (930     (2,693

Comprehensive loss

     (103,896     (237,612

Less: comprehensive loss attributable to noncontrolling interests

     (3,663     (1,368

Less: comprehensive loss attributable to redeemable noncontrolling interests

     (6,576     (6,801

Comprehensive loss attributable to LDK Solar Co., Ltd. shareholders

     (93,657     (229,443

About LDK Solar (NYSE: LDK)

LDK Solar Co., Ltd. (NYSE: LDK) is a leading vertically integrated manufacturer of photovoltaic (PV) products. LDK Solar manufactures polysilicon, mono and multicrystalline ingots, wafers, cells, modules, systems, power projects and solutions. LDK Solar’s headquarters and principal manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi Province in the People’s Republic of China. LDK Solar’s office in the United States is located in Sunnyvale, California. For more information about LDK Solar and its products, please visit www.ldksolar.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this press release are forward-looking statements, including but not limited to, LDK Solar’s ability to raise additional capital to finance its operating activities, the effectiveness, profitability and marketability of its products, the future trading of its securities, the ability of LDK Solar to operate as a public company, the period of time during which its current liquidity will enable LDK Solar to fund its operations, its ability to protect its proprietary information, the general economic and business environment and conditions, the volatility of LDK Solar’s operating results and financial condition, its ability to attract and retain qualified senior management personnel and research and development staff, its ability to timely and efficiently complete its ongoing projects, and other risks and uncertainties disclosed in LDK Solar’s filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on information available to LDK Solar’s management as of the date hereof and on its current expectations, assumptions, estimates and projections about LDK Solar and the PV industry. Actual results may differ materially from the anticipated results because of such and other risks and uncertainties. LDK Solar undertakes no obligation to update forward-looking statements to reflect subsequent events or circumstances, or changes in its expectations, assumptions, estimates and projections except as may be required by law.

For more information contact:

Lisa Laukkanen

The Blueshirt Group for LDK Solar

lisa@blueshirtgroup.com

+1-415-217-4967

Jack Lai

Executive VP and CFO

LDK Solar Co., Ltd.

IR@ldksolar.com

+1- 408-245-8801

 

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