LDK posts US$1.05 billion net loss in 2012; signs 500 MW supply contract

China-Based LDK Solar announced today its audited financial statements for its past fiscal year. With respect to net sales in 2012, the Chinese manufacturer recorded $862.9 million, a significant plunge compared to $2.16 billion in 2011.The debt-ridden manufacturer posted a net loss of $1.05 billion in 2012, compared to $608.95 in the previous year.

Furthermore, in the fourth quarter of last year it had recorded a massive loss of $0.5 billion, up from $95.9 million in Q3. Meanwhile, the gross loss in 2012 jumped to $337.8 million from $39.7 million recorded in the previous year. In addition, the diluted loss per ADS in 2012 was $8.62, compared to $4.90 in the previous year.

There were a number of impairments losses, as well as an inventory write-down. The combined effect of these, among other costs, resulted in a net loss attributable to shareholders of $970.97 million in 2012 from $620.9 million in 2011.

The company has been suffering a series of financial setback in the last months. On April 15, the firm had defaulted on a $23 million convertible bond payment. Shortly after that it announced that an affiliate of the Hefei City government in China had agreed to purchase LDK subsidiary, LDK Solar Hight-Tech (Hefei) Co., Ltd for around $19.4 million.

In other news, the Chinese company today announced in a statement that it has signed a wafer supply contract with Shandong-based photovoltaic company Realforce Power Co., Ltd.

Under the terms of the agreement, LDK Solar will provide 500 MW of wafers. Shipments will start in May 2013 and will continue until December 2014.

"We believe the China region, which is expected to reach 10 GW in 2013, represents the strongest global growth opportunity," said Xingxue Tong, president and CEO of LDK Solar in a company statement.