XINYU CITY, CHINA & SUNNYVALE, USA: LDK Solar Co. Ltd, a leading manufacturer of multicrystalline solar wafers, provided an updated outlook for the second quarter ended June 30, 2009.
For the second quarter of 2009, LDK Solar estimates shipments between 220 and 230 megawatts ("MW"). This compares to its previously issued guidance for the second quarter of 2009 of wafer shipments in the range of 200 to 220 MW. The company expects to record between $215 and $225 million in revenues.
LDK Solar additionally provided an update on its financing activities. The company secured a loan in the aggregate principal amount of RMB 500 million (equivalent to approximately $73 million), with a term of one year, from The Export-Import Bank of China.
The company also secured a loan in the aggregate principal amount of RMB 500 million (equivalent to approximately $73 million), with a term of three years, from Huarong International Trust Co. Ltd to support LDK Solar's polysilicon plant construction.
Huarong International Trust is a state-controlled company permitted under the relevant PRC laws and regulations to provide enterprises with financing facilities.
LDK Solar had a healthy cash position of more than $250 million and pledged bank deposits and time deposits of more than $170 million as of June 30, 2009.
"During the second half of the second quarter, our wafer shipments were driven by stronger than expected demand," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "Our annualized wafer capacity at June 30, 2009 reached 1.5 gigawatts ("GW"). We are encouraged by the recent improvement in market demand and expect to resume the expansion of our wafer plant with the goal of reaching 2 GW annualized wafer capacity by the end of 2009."
"The construction of our polysilicon plant continues to remain on schedule. The second train is targeted to reach mechanical completion in the third quarter of this year and the third train is expected to reach mechanical completion in the first quarter of 2010. We are very pleased to receive continued financial support for our growth plans from our local banks and view this as a testament to the promising future of the solar industry in China," concluded Peng.
This outlook for the three months ended June 30, 2009 is an estimate. Results are subject to change based on further review by the management. LDK Solar plans to report its full second quarter 2009 results in mid-August 2009. Once the reporting date is finalized, LDK Solar will issue a press release announcing the date and details of its second quarter conference call.