FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
For the month of March 2008
Commission File Number: 001-33911
RENESOLA LTD
No. 8 Baoqun Road, YaoZhuang
Jiashan, Zhejiang 314117
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-N/A
Form 6-K
TABLE OF CONTENTS
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| 3 | ||
| 4 | ||
| 5 |
2
ReneSola Ltd (the “Company”) issued a press release on March 19, 2008 announcing its fourth quarter and full year 2007 financial results. See Exhibit 99.1 – Press Release. The Company is hereby providing additional share related information below:
| Six months ended June 30, 2006 |
Three months ended December 31, 2006 |
Twelve months ended December 31, 2006 |
Six months ended June 30, 2007 |
Three months ended September 30, 2007 |
Three months ended December 31, 2007 |
Twelve months ended December 31, 2007 | ||||||||
| US$000 | US$000 | US$000 | US$000 | US$000 | US$000 | US$000 | ||||||||
| Net income per share: |
||||||||||||||
| - Basic |
0.11 | 0.09 | 0.32 | 0.13 | 0.13 | 0.17 | 0.43 | |||||||
| - Diluted |
0.11 | 0.09 | 0.32 | 0.13 | 0.12 | 0.17 | 0.43 | |||||||
| Net income per ADS: |
||||||||||||||
| - Basic |
0.22 | 0.18 | 0.64 | 0.26 | 0.26 | 0.34 | 0.86 | |||||||
| - Diluted |
0.22 | 0.18 | 0.64 | 0.26 | 0.24 | 0.34 | 0.86 | |||||||
| Shares used in computation: |
||||||||||||||
| - Basic |
66,666,699 | 100,000,032 | 80,000,032 | 100,000,032 | 100,000,032 | 100,000,032 | 100,000,032 | |||||||
| - Diluted |
66,666,699 | 100,000,032 | 80,122,052 | 100,156,848 | 110,621,025 | 110,645,584 | 108,221,480 | |||||||
3
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.
| RENESOLA LTD | ||
| By: | /s/ Xianshou Li | |
| Name: | Xianshou Li | |
| Title: | Chief Executive Officer | |
Date: March 20, 2008
4
ReneSola Ltd Announces Fourth Quarter and Full Year 2007 Results
JIASHAN, China, March 19, 2008 – ReneSola Ltd (“ReneSola” or the “Company”), a leading Chinese manufacturer of solar wafers, today announced its unaudited financial results for the fourth quarter and year ended December 31, 2007.
Financial Highlights
| • | Fourth quarter 2007 net revenues were US$96.0 million, an increase of 197.6% from US$32.3 million in the fourth quarter of 2006, and an increase of 32.4% from US$72.5 million in the third quarter of 2007. Full year 2007 net revenues were US$249.0 million, an increase of 195.1% from US$84.4 million in the full year 2006. |
| • | Fourth quarter 2007 net income was US$17.5 million, an increase of 87.8% from US$9.3 million in the fourth quarter of 2006, and an increase of 36.8% from US$12.8 million in the third quarter of 2007. Full year 2007 net income was US$42.9 million, an increase of 69.7% from US$25.3 million in the full year 2006. |
| • | Fourth quarter 2007 basic and diluted earnings per share were US$0.17 and US$0.17, respectively, and basic and diluted earnings per ADS were US$0.34 and US$0.34, respectively. Full year 2007 basic and diluted earnings per share were US$0.43 and US$0.43, respectively, and basic and diluted earnings per ADS were US$0.86 and US$0.86, respectively. Each ADS represents two shares. |
Business Highlights
| • | Fourth quarter production output was 51.3 MW, an increase of 42.5% from 36.0 MW in the third quarter. Full year production output was 125.6 MW, an increase of 223% from 38.9 MW in the full year 2006, exceeding the top end of guidance. |
| • | Successfully executed 2007 capacity expansion target with additional 40 monocrystalline furnaces and 17 multicrystalline furnaces installed during the fourth quarter of 2007, bringing total ingot manufacturing capacity to 378 MW and wafer manufacturing capacity to 305 MW, compared with 80 MW of ingot manufacturing capacity as of the end of 2006. |
| • | Over 90% of raw materials required for 2008 planned production output of 300 MW have been secured through a combination of long-term and short-term procurement contracts, toll arrangements, and expected output from our polysilicon joint venture in Henan Province, China. |
| • | Joint venture in Henan Province, China successfully commenced trial production of polysilicon, and development of wholly-owned green field polysilicon plant in Sichuan Province, China is on track with trial production of this facility expected to begin during the first half of 2009. |
| Six months ended 6/30/06 |
Three months ended 12/31/06 |
Twelve months ended 12/31/06 |
Six months ended 6/30/07 |
Three months ended 9/30/07 |
Three months ended 12/31/07 |
Twelve months ended 12/31/07 |
|||||||||||||||
| Net revenue (US$000) |
24,042 | 32,272 | 84,371 | 80,387 | 72,540 | 96,046 | 248,973 | ||||||||||||||
| Gross profit (US$000) |
7,171 | 8,878 | 24,725 | 18,102 | 15,775 | 19,619 | 53,496 | ||||||||||||||
| Gross margin (%) |
29.8 | % | 27.5 | % | 29.3 | % | 22.5 | % | 21.7 | % | 20.4 | % | 21.5 | % | |||||||
| Operating profit (US$000) |
6,394 | 8,029 | 22,235 | 15,001 | 13,432 | 15,000 | 43,433 | ||||||||||||||
| Foreign exchange gain (loss) (US$000) |
(9 | ) | 141 | 364 | (2,304 | ) | (569 | ) | (1,174 | ) | (4,047 | ) | |||||||||
| Profit for the period (US$000) |
7,039 | 9,303 | 25,301 | 12,690 | 12,775 | 17,471 | 42,936 | ||||||||||||||
| Production output (MW) |
10.0 | 15.7 | 38.9 | 38.3 | 36.0 | 51.3 | 125.6 |
“During 2007 ReneSola grew into a leading producer of solar wafers and our business expanded through upstream integration within the solar value chain into polysilicon manufacturing,” said Mr. Xianshou Li, ReneSola’s Chief Executive Officer. “As one of the fastest growing solar companies in the world, ReneSola achieved substantial top line growth without sacrificing profitability in spite of a significant increase in raw material costs, as demand for wafers, as well as average wafer selling prices, continued to increase. We also successfully executed our growth plan by expanding our raw material procurement and customer network and increasing our total production capacity from 80 MW as of the end of 2006, to 378 MW as of the end of 2007.”
“During the year we also took strategic steps to integrate upstream into polysilicon manufacturing. Our joint venture in Henan Province, China commenced polysilicon trial production in mid-January 2008, and the development of our state-of-the-art green field polysilicon project in Sichuan Province, China is on track. In line with ReneSola’s strong commitment to maintaining environmentally responsible business practices, the joint venture in Henan Province has met the environmental protection standards set by the government and is equipped to recycle silicon tetrachloride. The polysilicon project in Sichuan Province will utilize proven, high-end equipment with fully closed loop systems to recycle and convert waste into products that can be reused in the production process.”
“In 2008, we will maintain our focus on efficient cost production and innovation as we look to build on ReneSola’s strong brand name. New equipment using our proprietary technologies and state-of-the-art facilities will include some of the most advanced furnaces and wire saws in the market. We are confident that our expansion efforts and upstream transition into polysilicon manufacturing, paired with a strong feedstock supply pipeline and a customer base of leading industry players, put ReneSola in a unique position to capitalize on the opportunities presented by a rapidly growing solar industry in 2008 and beyond.”
Financial Results for the Fourth Quarter and Full Year 2007
Net revenues
Net revenues for the fourth quarter of 2007 were US$96.0 million, an increase of 32.4% sequentially and 197.6% year-over-year. For the full year 2007, ReneSola reported net revenues of US$249.0 million representing a 195.1% increase year-over-year from US$84.4 million in 2006. The rise in fourth quarter and full year 2007 revenues was primarily attributable to an increase in output from the expanded production capacity and increasing wafer ASPs.
Gross profit
Fourth quarter gross profit was US$19.6 million, a 24.4% increase sequentially and 121.0% year-over-year. The gross margin for the fourth quarter was 20.4% compared to 21.7% in the third quarter of 2007. Full year 2007 gross profit was US$53.5 million, a 116.4% increase year-over-year from US$24.7 million in 2006. The gross margin for full year 2007 was 21.5% compared to 29.3% for the full year 2006. The change in gross margin was primarily attributable to increases in average feedstock costs of 13.7% sequentially and 42.1% year-over-year. Increasing feedstock costs were mitigated by a reduction in silicon consumption through a combination of in-house closed-loop scrap recycling, productivity gains from improvements in wafer slicing, a reduction in non-raw material related production costs and increases in wafer ASPs.
Operating profit
Operating profit in the fourth quarter of 2007 was US$15.0 million, an increase of 11.7% sequentially and 86.8% year-over-year. Operating margin was 15.6% in the fourth quarter compared to 18.5% in the third quarter of 2007. Total operating expenses in the fourth quarter of 2007 were US$4.6 million, up from US$2.3 million in the third quarter of 2007. Of the total operating expenses in the fourth quarter US$0.7 million was attributable to share-based compensation expenses.
Operating profit for the full year 2007 was US$43.4 million, a 95.3% increase year-over-year from US$22.2 million in 2006. Operating margin was 17.4% for the full year 2007 compared to 26.4% in the previous year due to the lower gross margin attributable to the significant increase in raw material costs. Total operating expenses increased to US$10.l million for the full year 2007 from US$2.5 million for the full year 2006. This was primarily due to increased general and administrative expenses and R&D costs reflecting higher salary and benefit payments as a result of the need for a greater number of employees to meet our fast growing business, as well as an increase in professional fees and compliance expenses.
Profit before tax
Profit before tax in the fourth quarter was US$12.4 million, a 3.6% increase sequentially and 49.3% increase year-over-year. Finance costs increased by 13.9% sequentially, reflecting increased bank borrowings and interest rates. Finance costs as a percentage of net revenue decreased from 2.0% in the third quarter of 2007 to 1.8% in the fourth quarter of 2007. The fourth quarter foreign exchange loss increased to US$1.2 million from US$0.6 million in the third quarter as a result of appreciation of RMB against the US dollar during the quarter.
Profit before tax for the full year 2007 was US$36.8 million, an increase of 63.0% year-over-year from US$22.6 million in 2006. Finance costs in 2007 increased to US$4.5 million from US$0.3 million in 2006, reflecting increased bank borrowings and the convertible bonds issued in March 2007. The full year 2007 foreign exchange loss was US$4.0 million from a gain of US$0.4 million in the previous year due to appreciation of RMB against the US dollar.
Taxation
ReneSola’s subsidiary, Zhejiang Yuhui Solar Energy Source Co. Ltd, (“Zhejiang Yuhui”) recognized a tax benefit of US$5.2 million in the fourth quarter of 2007, significantly up from US$0.8 million in the third quarter of 2007. For the full year 2007, Zhejiang Yuhui recognized a tax benefit of US$6.2 million, up from US$2.7 million in 2006, due to an increase in domestic equipment purchases. In accordance with PRC tax regulations, Zhejiang Yuhui received 40% of the amount arising from the purchase of domestic made equipment as an investment tax credit. The tax credit can be carried forward for 7 years to offset future corporate income taxes.
Net profit
Fourth quarter 2007 net profit increased 36.8% sequentially and 87.8% year-over-year to US$17.5 million. Full year 2007 net profit increased 69.7% year-over-year to US$42.9 million due to an increase in production output and improved productivity.
2008 Guidance
In the first quarter of 2008 we expect our gross margin to remain stable and expected production output to be 62 MW, as compared to 51.3 MW in the fourth quarter of 2007 and 15.3 MW in the first quarter of 2007. We maintain our annualized ingot production capacity target of 645 MW by the end of 2008. We anticipate production output of a minimum of 300 MW in 2008 with minimum annual net revenues of US$480 million. This represents year-over-year revenue growth of at least 93%.
Accounting Standards
The financial information presented in this announcement has been prepared in accordance with Generally Accepted Accounting Principles in the United States (“US GAAP”). The Company has historically issued financial information prepared in accordance with International Financial Reporting Standards (“IFRS”). For the purposes of comparison, financial information for the year ended December 31, 2006 and six months ended June 30, 2006 and 2007, which was previously issued in accordance with IFRS, is presented in this announcement in accordance with US GAAP.
Conference Call Information
ReneSola’s management will host an earnings conference call on March 19, 2008 at 8 AM U.S. EDT / 8 PM Beijing/Hong Kong time / 12 PM GMT.
Dial-in details for the earnings conference call are as follows:
| U.S. & International: |
+1-617-614-2705 | |
| United Kingdom: |
+44-207-365-8426 | |
| Hong Kong: |
+852-3002-1672 |
Please dial in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is “ReneSola Call.” There will also be a presentation available on the Company’s website at www.renesola.com.
A replay of the conference call may be accessed by phone at the following number until March 26, 2008:
| International: |
+1-617-801-6888 | |
| Passcode: |
34290815 |
About ReneSola
ReneSola Ltd (“ReneSola”) is a leading solar wafer manufacturer based in China. Capitalizing on proprietary technologies and technical know-how, ReneSola manufactures monocrystalline and multicrystalline solar wafers. In addition, ReneSola strives to enhance its competitiveness through upstream integration into virgin polysilicon manufacturing. ReneSola possesses a global network of suppliers and customers that include some of the leading global manufacturers of solar cells and modules. ReneSola’s shares are currently traded on the New York Stock Exchange (NYSE: SOL) and the AIM of the London Stock Exchange (AIM: SOLA.L). For more information about ReneSola, please visit www.renesola.com.
Safe Harbor Statement
This press release contains statements that constitute “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. Whenever you read a statement that is not simply a statement of historical fact (such as when we describe what we “believe,” “expect” or “anticipate” will occur, what “will” or “could” happen, and other similar statements), you must remember that our expectations may not be correct, even though we believe that they are reasonable. We do not guarantee that the forward-looking statements will happen as described or that they will happen at all. Further information regarding risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements is included in our filings with the U.S. Securities and Exchange Commission, including our registration statement on Form F-1. We undertake no obligation, beyond that required by law, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made, even though our situation may change in the future.
For investor and media inquiries, please contact:
In China:
In China:
Mr. Charles Bai
ReneSola Ltd
| Tel: |
+86 (573) 8477-3061 | |
| E-mail: |
charles.bai@renesola.com |
Mr. Derek Mitchell
Ogilvy Public Relations Worldwide (Beijing)
| Tel: |
+86 (10) 8520-6284 | |
| E-mail: |
derek.mitchell@ogilvy.com |
In the United States:
Mr. Jeremy Bridgman
Ogilvy Public Relations Worldwide (New York)
| Tel: |
+1 (212) 880-5363 | |
| E-mail: |
jeremy.bridgman@ogilvypr.com |
In the UK:
Mr. Tim Feather/Mr. Richard Baty
Hanson Westhouse Limited
| Tel: |
+44 (0) 20-7601-6100 | |
| E-mail: |
tim.feather@hansonwesthouse.com | |
| richard.baty@hansonwesthouse.com |
Mr. Charles Ryland/Ms. Suzanne Brocks/Ms. Catherine Breen
Buchanan Communications
| Tel: |
+44 (0) 20-7466-5000 |
CONSOLIDATED INCOME STATEMENT
| Six months ended June 30, 2006 |
Three months ended December 31, 2006 |
Twelve months ended December 31, 2006 |
Six months ended June 30, 2007 |
Three months ended September 30, 2007 |
Three months ended December 31, 2007 |
Twelve months ended December 31, 2007 |
|||||||||||||||
| US$000 | US$000 | US$000 | US$000 | US$000 | US$000 | US$000 | |||||||||||||||
| Net revenue |
24,042 | 32,272 | 84,371 | 80,387 | 72,540 | 96,046 | 248,973 | ||||||||||||||
| Cost of sales |
(16,871 | ) | (23,394 | ) | (59,646 | ) | (62,285 | ) | (56,765 | ) | (76,427 | ) | (195,477 | ) | |||||||
| Gross profit |
7,171 | 8,878 | 24,725 | 18,102 | 15,775 | 19,619 | 53,496 | ||||||||||||||
| Operating expenses: |
|||||||||||||||||||||
| Sales and marketing |
(204 | ) | (85 | ) | (335 | ) | (263 | ) | (152 | ) | (169 | ) | (584 | ) | |||||||
| General and administrative |
(565 | ) | (767 | ) | (2,284 | ) | (2,765 | ) | (2,354 | ) | (3,635 | ) | (8,754 | ) | |||||||
| R&D Expense |
(22 | ) | (11 | ) | (39 | ) | (163 | ) | (82 | ) | (898 | ) | (1,143 | ) | |||||||
| Other expenses, net |
14 | 14 | 168 | 90 | 245 | 83 | 418 | ||||||||||||||
| Total operating expenses |
(777 | ) | (849 | ) | (2,490 | ) | (3,101 | ) | (2,343 | ) | (4,619 | ) | (10,063 | ) | |||||||
| Income from operations |
6,394 | 8,029 | 22,235 | 15,001 | 13,432 | 15,000 | 43,433 | ||||||||||||||
| Interest income |
6 | 163 | 312 | 1,154 | 551 | 229 | 1,934 | ||||||||||||||
| Interest expenses |
(103 | ) | (53 | ) | (331 | ) | (1,338 | ) | (1,484 | ) | (1,690 | ) | (4,512 | ) | |||||||
| Foreign exchange (loss) gain |
(9 | ) | 141 | 364 | (2,304 | ) | (569 | ) | (1,174 | ) | (4,047 | ) | |||||||||
| Total non-operating (expenses) income |
(106 | ) | 251 | 345 | (2,488 | ) | (1,502 | ) | (2,635 | ) | (6,625 | ) | |||||||||
| Income before income tax expenses |
6,288 | 8,280 | 22,580 | 12,513 | 11,930 | 12,365 | 36,808 | ||||||||||||||
| Income tax benefit |
751 | 1,023 | 2,721 | 177 | 807 | 5,171 | 6,155 | ||||||||||||||
| Minority interest |
0 | 0 | 0 | 0 | (38 | ) | 65 | 27 | |||||||||||||
| Net income |
7,039 | 9,303 | 25,301 | 12,690 | 12,775 | 17,471 | 42,936 | ||||||||||||||
CONSOLIDATED BALANCE SHEET
| As at June 30, 2006 |
As at December 31, 2006 |
As at June 30, 2007 |
As at December 31, 2007 | |||||
| US$000 | US$000 | US$000 | US$000 | |||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
6,714 | 9,862 | 67,904 | 53,137 | ||||
| Accounts receivable, net of allowances for doubtful receivables |
50 | 694 | 461 | 8,755 | ||||
| Inventories |
18,581 | 44,775 | 75,325 | 110,630 | ||||
| Advances to suppliers |
8,335 | 16,952 | 33,777 | 53,727 | ||||
| Amounts due from related parties |
2,032 | 5,766 | 10,502 | 17,213 | ||||
| Value added tax recoverable |
2,494 | 5,017 | 7,757 | 117 | ||||
| Prepaid expenses and other current assets |
1,989 | 2,978 | 9,428 | 9,654 | ||||
| Deferred tax assets |
1,364 | 3,321 | 3,868 | 10,487 | ||||
| Total current assets |
41,559 | 89,365 | 209,022 | 263,720 | ||||
| Property, plant and equipment, net |
8,384 | 19,908 | 50,046 | 136,598 | ||||
| Prepaid land rent, net |
1,142 | 4,254 | 7,288 | 7,502 | ||||
| Deferred tax assets |
16 | 102 | 27 | 284 | ||||
| Deferred convertible bond issue costs |
— | — | 3,921 | 3,336 | ||||
| Advances for purchases of property, plant and equipment |
2,407 | 14,957 | 37,931 | 29,648 | ||||
| Total assets |
53,508 | 128,586 | 308,235 | 441,088 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| Liabilities |
||||||||
| Current liabilities: |
||||||||
| Short-term borrowings |
10,314 | 14,675 | 58,930 | 71,691 | ||||
| Accounts payable |
2,848 | 4,902 | 5,684 | 13,147 | ||||
| Advances from customers |
29,731 | 34,452 | 25,866 | 59,626 | ||||
| Amounts due to related parties |
3,131 | 606 | 228 | — | ||||
| Other current liabilities |
879 | 1,347 | 3,117 | 13,912 | ||||
| Total current liabilities |
46,903 | 55,982 | 93,825 | 158,376 | ||||
| Accrued warranty costs |
62 | 63 | 65 | 67 | ||||
| Convertible bond payable |
— | — | 122,306 | 128,265 | ||||
| Long-term borrowings |
— | — | 4,727 | 17,797 | ||||
| Derivative liability |
— | — | — | 546 | ||||
| Deferred tax liability |
— | — | — | 633 | ||||
| Total liabilities |
46,965 | 56,045 | 220,923 | 305,684 | ||||
| Minority interest |
— | — | — | 9,696 | ||||
| Shareholders’ equity |
||||||||
| Common shares |
— | 36,266 | 36,266 | 36,266 | ||||
| Additional paid-in capital |
1,500 | 11,765 | 11,928 | 14,827 | ||||
| Retained earnings |
5,002 | 23,264 | 35,954 | 66,200 | ||||
| Accumulated other comprehensive income |
41 | 1,246 | 3,164 | 8,415 | ||||
| Total shareholders’ equity |
6,543 | 72,541 | 87,312 | 125,708 | ||||
| Total liabilities and shareholders’ equity |
53,508 | 128,586 | 308,235 | 441,088 | ||||
CONSOLIDATED CASH FLOW STATEMENT
| Six months ended June 30, 2006 |
Three months ended December 31, 2006 |
Twelve months ended December 31, 2006 |
|||||||
| US$000 | US$000 | US$000 | |||||||
| Cash flows from operating activities: |
|||||||||
| Net income |
7,038 | 9,303 | 25,301 | ||||||
| Adjustments for: |
|||||||||
| Minority interest |
— | — | — | ||||||
| Depreciation |
161 | 357 | 733 | ||||||
| Amortization of deferred convertible bond issue costs |
— | — | — | ||||||
| Recognition of bond redemption premium |
— | — | — | ||||||
| Allowances for doubtful receivables |
26 | 39 | 66 | ||||||
| Prepaid land rent expensed |
3 | 22 | 32 | ||||||
| Derivatives |
— | — | — | ||||||
| Deferred taxes |
(751 | ) | (1,023 | ) | (2,721 | ) | |||
| Share-based compensation |
— | 74 | 264 | ||||||
| Changes in operating assets and liabilities: |
|||||||||
| Accounts receivable |
111 | 431 | (557 | ) | |||||
| Inventories |
(15,365 | ) | (18,584 | ) | (40,591 | ) | |||
| Advances to suppliers |
(7,195 | ) | (2,725 | ) | (15,559 | ) | |||
| Amounts due from related parties |
(1,357 | ) | 1,772 | (4,967 | ) | ||||
| Value added tax recoverable |
(1,883 | ) | (1,483 | ) | (4,296 | ) | |||
| Prepaid expenses and other current assets |
(1,477 | ) | 4,105 | (2,400 | ) | ||||
| Prepaid land rent |
(962 | ) | (1,227 | ) | (4,036 | ) | |||
| Accounts payable |
1,247 | 1,334 | 3,195 | ||||||
| Advances from customers |
25,272 | (763 | ) | 29,200 | |||||
| Other current liabilities |
386 | 338 | 817 | ||||||
| Accrued warranty costs |
20 | — | 20 | ||||||
| Net cash provided by (used in) operating activities |
5,274 | (8,030 | ) | (15,499 | ) | ||||
| Cash flows from investing activities: |
|||||||||
| Purchases of property, plant and equipment |
(5,963 | ) | (5,449 | ) | (17,606 | ) | |||
| Advances for purchases of property, plant and equipment |
(2,360 | ) | (10,898 | ) | (14,598 | ) | |||
| Cash provided to related parties |
— | — | — | ||||||
| Net cash used in investing activities |
(8,323 | ) | (16,347 | ) | (32,204 | ) | |||
| Cash flows from financing activities: |
|||||||||
| Contribution from minority shareholder of subsidiaries |
— | — | — | ||||||
| Net proceeds from short-term borrowings |
9,625 | 1,540 | 13,747 | ||||||
| Proceeds from issuance of common shares |
— | — | 50,000 | ||||||
| Share issuance costs |
— | — | (3,734 | ) | |||||
| Net proceeds from issuance of convertible bonds |
— | — | — | ||||||
| Proceeds from capital contribution |
— | — | — | ||||||
| Distribution in respect of reorganization |
(2,878 | ) | — | (2,878 | ) | ||||
| Other distribution to shareholders |
(331 | ) | — | (331 | ) | ||||
| Cash received from related parties |
3,682 | 594 | 1,270 | ||||||
| Cash paid to related parties |
(730 | ) | — | (856 | ) | ||||
| Net cash provided by financing activities |
9,368 | 2,134 | 57,218 | ||||||
| Effect of exchange rate changes |
(9 | ) | (170 | ) | (57 | ) | |||
| Net increase (decrease) in cash and cash equivalents |
6,310 | (22,413 | ) | 9,458 | |||||
| Cash and cash equivalents, beginning of year |
404 | 32,275 | 404 | ||||||
| Cash and cash equivalents, end of year |
6,714 | 9,862 | 9,862 | ||||||
| Six months ended June 30, 2007 |
Three months ended September 30, 2007 |
Three months ended December 31, 2007 |
Twelve months ended December 31, 2007 |
|||||||||
| US$000 | US$000 | US$000 | US$000 | |||||||||
| Cash flows from operating activities: |
||||||||||||
| Net income |
12,690 | 12,775 | 17,471 | 42,936 | ||||||||
| Adjustments for: |
||||||||||||
| Minority interest |
— | (38 | ) | 65 | 27 | |||||||
| Depreciation |
1,223 | 1,214 | 1,733 | 4,170 | ||||||||
| Amortization of deferred convertible bond issue costs |
371 | 362 | 367 | 1,100 | ||||||||
| Recognition of bond redemption premium |
353 | 367 | 361 | 1,081 | ||||||||
| Allowances for doubtful receivables |
88 | 3 | 378 | 469 | ||||||||
| Prepaid land rent expensed |
55 | 46 | 46 | 147 | ||||||||
| Derivatives |
— | — | 525 | 525 | ||||||||
| Deferred taxes |
(379 | ) | (809 | ) | (5,029 | ) | (6,217 | ) | ||||
| Share-based compensation |
164 | 95 | 670 | 929 | ||||||||
| Changes in operating assets and liabilities: |
||||||||||||
| Accounts receivable |
195 | (4,994 | ) | (3,040 | ) | (7,839 | ) | |||||
| Inventories |
(29,042 | ) | (17,774 | ) | (13,621 | ) | (60,437 | ) | ||||
| Advances to suppliers |
(16,220 | ) | (238 | ) | (17,818 | ) | (34,276 | ) | ||||
| Amounts due from related parties |
(4,529 | ) | (3,396 | ) | 991 | (6,934 | ) | |||||
| Value added tax recoverable |
(2,649 | ) | 3,790 | 3,899 | 5,040 | |||||||
| Prepaid expenses and other current assets |
(6,260 | ) | (5,512 | ) | 5,211 | (6,561 | ) | |||||
| Prepaid land rent |
(2,941 | ) | (19 | ) | (25 | ) | (2,985 | ) | ||||
| Accounts payable |
650 | 3,988 | 2,960 | 7,598 | ||||||||
| Advances from customers |
(9,334 | ) | 8,973 | 22,259 | 21,898 | |||||||
| Other current liabilities |
362 | 145 | 3,631 | 4,138 | ||||||||
| Accrued warranty costs |
— | — | — | — | ||||||||
| Net cash provided by (used in) operating activities |
(55,203 | ) | (1,022 | ) | 21,034 | (35,191 | ) | |||||
| Cash flows from investing activities: |
||||||||||||
| Purchases of property, plant and equipment |
(29,107 | ) | (33,421 | ) | (35,341 | ) | (97,869 | ) | ||||
| Advances for purchases of property, plant and equipment |
(22,293 | ) | 15,119 | (5,947 | ) | (13,121 | ) | |||||
| Cash provided to related parties |
— | — | (3,680 | ) | (3,680 | ) | ||||||
| Net cash used in investing activities |
(51,400 | ) | (18,302 | ) | (44,968 | ) | (114,670 | ) | ||||
| Cash flows from financing activities: |
||||||||||||
| Contribution from minority shareholder of subsidiaries |
— | 361 | — | 361 | ||||||||
| Net proceeds from short-term borrowings |
47,957 | 16,646 | 6,292 | 70,895 | ||||||||
| Proceeds from issuance of common shares |
— | — | — | — | ||||||||
| Share issuance costs |
— | — | — | — | ||||||||
| Net proceeds from issuance of convertible bonds |
115,771 | — | — | 115,771 | ||||||||
| Proceeds from capital contribution |
— | 2,133 | — | 2,133 | ||||||||
| Distribution in respect of reorganization |
— | — | — | — | ||||||||
| Other distribution to shareholders |
— | — | — | — | ||||||||
| Cash received from related parties |
— | (1 | ) | 111 | 110 | |||||||
| Cash paid to related parties |
(388 | ) | (225 | ) | (120 | ) | (733 | ) | ||||
| Net cash provided by financing activities |
163,340 | 18,914 | 6,283 | 188,537 | ||||||||
| Effect of exchange rate changes |
1,305 | 1,441 | 1,853 | 4,599 | ||||||||
| Net increase (decrease) in cash and cash equivalents |
58,042 | 1,031 | (15,798 | ) | 43,275 | |||||||
| Cash and cash equivalents, beginning of year |
9,862 | 67,904 | 68,935 | 9,862 | ||||||||
| Cash and cash equivalents, end of year |
67,904 | 68,935 | 53,137 | 53,137 | ||||||||