From http://www.tradingmarkets.com
Monday, October 29, 2007; Posted: 11:12 AM
BAODING, China, Oct 29, 2007 (BUSINESS WIRE) -- Yingli Green Energy Holding Company Limited ("Yingli Green Energy" or the "Company"), one of the leading vertically integrated photovoltaic (PV) product manufacturers in China, today announced that on October 19, 2007 the Company entered into a new supply contract and on October 29, 2007 an associated supplementary contract (the "New Contracts") to replace its 1,232 ton polysilicon supply arrangements (the "Original Contract") with Sichuan Xinguang Silicon Science and Technology Co., Ltd. of China ("Xinguang"). Under the Original Contract, 50 tons have already been delivered and an additional 182 tons are committed to be delivered before the end of the first quarter of 2008 with the remainder to be delivered by the end of 2008.
Under the Original Contract, the price of the polysilicon that Xinguang will supply to Yingli Green Energy in 2008 was not specified. The New Contracts provide a fixed unit price on the total committed volume as well as a unit price adjustment mechanism. Under the terms of the New Contracts, the fixed unit price will be adjusted if the market price of polysilicon upon delivery fluctuates outside a 5% band that was based on the then prevailing market price. In addition, the New Contracts provide that if one of the parties requests further adjustment to the unit price, the performance of the New Contracts will be suspended until both parties reach an agreement on pricing. Yingli Green Energy expects the New Contract to help clarify the visibility on the Company's 2008 cost structure.
"As one of China's leading polysilicon producers, we are pleased that the quality of our products has been recognized by Yingli Green Energy, one of the world's leading PV product manufacturers," Mr. Shaozhang Chen, President of Xinguang commented. "This amended contract demonstrates both parties' commitment to further strengthen our strong relationship in the fast growing and rapidly changing PV market."
"Xinguang has been one of our major suppliers and we are very pleased that a significant portion of our polysilicon requirement for 2008 remains secured," said Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. "The polysilicon shipped from Xinguang so far in 2007 has already been processed and used in the production of our PV products, and to date, our PV product output using this polysilicon has met our quality standards."
About Yingli Green Energy
Yingli Green Energy Holding Company Limited ("Yingli Green Energy") is one of the leading vertically integrated photovoltaic (PV) product manufacturers in China. Through the Company's principal operating subsidiary in China, Baoding Tianwei Yingli New Energy Resources Co., Ltd., Yingli Green Energy designs, manufactures and sells PV modules and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or those that operate on a stand-alone basis. With 200 MW of total annual production capacity for each of polysilicon ingots and wafers, PV cells and PV modules, Yingli Green Energy is currently one of the largest manufacturers of PV products in China. Additionally, Yingli Green Energy is among a limited number of large-scale PV companies in China to have adopted vertical integration as its business model. Yingli Green Energy currently plans to gradually expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 400 MW by the end of 2008 and to 600 megawatts by 2010. Yingli Green Energy sells PV modules under its own brand name, Yingli Solar, to PV system integrators and distributors located in various markets around the world, including Germany, Spain, China and the United States.
Tuesday, October 30, 2007
LDK Solar Announces Independent Audit Committee Investigation Into Alleged Inventory Discrepancies
From http://money.cnn.com
October 30, 2007: 03:15 AM EST
XINYU CITY, China and SUNNYVALE, Calif., Oct. 30 /PRNewswire-FirstCall/ -- LDK Solar Co., Ltd. , a leading manufacturer of multicrystalline solar wafers, announced that its Audit Committee has commenced an independent investigation into the recent allegations made by LDK's former employee, Mr. Charley Situ, that the Company has incorrectly reported its inventories of polysilicon. The two outside directors on the Company's Audit Committee, Louis T. Hsieh and Bing Xiang, are overseeing the ongoing investigation.
The Audit Committee has retained Simpson Thacher & Bartlett LLP to serve as its independent counsel for the investigation. Simpson Thacher, in turn, has retained a Big Four independent accounting and consulting firm, separate from the Company's external auditors, for purposes of the review. Commenting on the investigation, Mr. Hsieh stated: "The Audit Committee intends to analyze Mr. Situ's allegations as thoroughly and in as much detail as necessary. We have retained some of the premier professionals in the world to assist us in this endeavor."
In a prior press release on October 4, 2007, the Company's management stated that it had conducted an internal review of Mr. Situ's allegations and concluded that the Company had correctly reported its inventories of polysilicon and that Mr. Situ's allegations had no merit. Management stands by its prior statements and believes that the Audit Committee's ongoing independent investigation will confirm its conclusions. Due to the independent nature of the Audit Committee's ongoing investigation, LDK Solar cannot provide a specific timeframe for its completion. However, this is an important matter, and the Audit Committee intends to fully and thoroughly address it in a timely manner. The October 4 press release also correctly stated that LDK had not been contacted by any regulatory authority. Since then, however, LDK has been contacted by the U.S. Securities and Exchange Commission ("SEC") regarding this matter. LDK will cooperate fully with the SEC's inquiry.
In addition, the Company announced that it has retained outside counsel, Latham & Watkins LLP, to defend the Company and certain of its directors and officers who have been named in certain class action complaints in the United States. The Company's management believes that these claims lack merit and intends to vigorously defend the cases.
About LDK Solar
LDK Solar Co., Ltd. is a leading manufacturer of multicrystalline solar wafers, which are the principal raw material used to produce solar cells. LDK sells multicrystalline wafers globally to manufacturers of photovoltaic products, including solar cells and solar modules. In addition, the company provides wafer processing services to monocrystalline and multicrystalline solar cell and module manufacturers. LDK's headquarters and manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi province in the People's Republic of China. The company's office in the United States is located in Sunnyvale, California.
October 30, 2007: 03:15 AM EST
XINYU CITY, China and SUNNYVALE, Calif., Oct. 30 /PRNewswire-FirstCall/ -- LDK Solar Co., Ltd. , a leading manufacturer of multicrystalline solar wafers, announced that its Audit Committee has commenced an independent investigation into the recent allegations made by LDK's former employee, Mr. Charley Situ, that the Company has incorrectly reported its inventories of polysilicon. The two outside directors on the Company's Audit Committee, Louis T. Hsieh and Bing Xiang, are overseeing the ongoing investigation.
The Audit Committee has retained Simpson Thacher & Bartlett LLP to serve as its independent counsel for the investigation. Simpson Thacher, in turn, has retained a Big Four independent accounting and consulting firm, separate from the Company's external auditors, for purposes of the review. Commenting on the investigation, Mr. Hsieh stated: "The Audit Committee intends to analyze Mr. Situ's allegations as thoroughly and in as much detail as necessary. We have retained some of the premier professionals in the world to assist us in this endeavor."
In a prior press release on October 4, 2007, the Company's management stated that it had conducted an internal review of Mr. Situ's allegations and concluded that the Company had correctly reported its inventories of polysilicon and that Mr. Situ's allegations had no merit. Management stands by its prior statements and believes that the Audit Committee's ongoing independent investigation will confirm its conclusions. Due to the independent nature of the Audit Committee's ongoing investigation, LDK Solar cannot provide a specific timeframe for its completion. However, this is an important matter, and the Audit Committee intends to fully and thoroughly address it in a timely manner. The October 4 press release also correctly stated that LDK had not been contacted by any regulatory authority. Since then, however, LDK has been contacted by the U.S. Securities and Exchange Commission ("SEC") regarding this matter. LDK will cooperate fully with the SEC's inquiry.
In addition, the Company announced that it has retained outside counsel, Latham & Watkins LLP, to defend the Company and certain of its directors and officers who have been named in certain class action complaints in the United States. The Company's management believes that these claims lack merit and intends to vigorously defend the cases.
About LDK Solar
LDK Solar Co., Ltd. is a leading manufacturer of multicrystalline solar wafers, which are the principal raw material used to produce solar cells. LDK sells multicrystalline wafers globally to manufacturers of photovoltaic products, including solar cells and solar modules. In addition, the company provides wafer processing services to monocrystalline and multicrystalline solar cell and module manufacturers. LDK's headquarters and manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi province in the People's Republic of China. The company's office in the United States is located in Sunnyvale, California.
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