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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 August 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
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Form 6-K
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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: August 20, 2008
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ReneSola Ltd Announces Second Quarter 2008 Results
Second Quarter Revenues Increased 289.0% Year-Over-Year;
Second Quarter Net Income Increased 294.6% Year-Over-Year
JIASHAN, China, August 19, 2008 – ReneSola Ltd (“ReneSola” or the “Company”), a leading global manufacturer of solar wafers, today announced its unaudited financial results for the second quarter of 2008.
Financial and Business Highlights
| • | Second quarter 2008 net revenues were US$173.0 million (US$171.9 million under the equity accounting method for ReneSola’s investment in the joint venture in Henan province, China (the “Equity Accounting Method”)), an increase of 289.0% from US$44.5 million in the second quarter of 2007, and an increase of 40.7% from US$123.0 million in the first quarter of 2008. |
| • | Second quarter 2008 gross margin was 24.7% (22.4% under the Equity Accounting Method) compared to 22.1% in the first quarter of 2008. |
| • | Second quarter 2008 net income was US$23.3 million (US$23.3 million under the Equity Accounting Method), an increase of 294.6% from US$5.9 million in the second quarter of 2007, and an increase of 31.9 % from US$17.7 million in the first quarter of 2008. |
| • | Second quarter 2008 basic and diluted earnings per share were US$0.20 and US$0.19, respectively, and basic and diluted earnings per ADS were US$0.40 and US$0.38, respectively. Each ADS represents two shares. |
| • | Second quarter production output was 82.5 MW, an increase of 24.1% from 66.5 MW in the first quarter of 2008, exceeding previously issued guidance of 75 MW to 80 MW. |
| • | Silicon consumption rate decreased to 6.24 grams per watt in the second quarter of 2008 from 6.3 grams per watt in the first quarter of 2008. |
| Three months ended 6/30/07 |
Three months ended 3/31/08 |
Three months ended 6/30/08 |
|||||||
| Net revenue (US$000) |
44,471 | 122,982 | 173,007 | ||||||
| Gross profit (US$000) |
9,950 | 27,234 | 42,786 | ||||||
| Gross margin (%) |
22.4 | 22.1 | 24.7 | ||||||
| Operating profit (US$000) |
8,062 | 23,187 | 34,535 | ||||||
| Foreign exchange loss (US$000) |
(2,241 | ) | (56 | ) | (797 | ) | |||
| Profit for the period (US$000) |
5,907 | 17,675 | 23,309 | ||||||
| Production output (MW) |
23.0 | 66.5 | 82.5 |
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“We achieved significant growth and exceeded our targeted output for the quarter as we continued to execute our growth strategies,” said Mr. Xianshou Li, ReneSola’s chief executive officer. “We experienced strong market demand for our wafer products and successfully extended our customer base by entering into a number of wafer sales contracts during the quarter.”
“We are excited about the results from our operational and R&D efforts. By the end of the quarter, our annualized production capacity reached 450 MW and it remains on track to achieve the targeted capacity of 645 MW by the end of the year. We continued to improve our production efficiency by further reducing our average silicon consumption rate to 6.24 grams per watt in the second quarter of 2008 from 6.3 grams per watt in the previous quarter. In addition, with a strong focus on R&D, we made significant advancements in the utilization of alternative silicon materials for future wafer production including the use of metallurgical grade silicon.”
“We completed our equity follow-on offering in June 2008, generating net proceeds of approximately US$185.2 million. The additional funding provides ReneSola with sufficient cash sources to fund our 2009 expansion plan,” continued Mr. Li.
Financial Results for the Second Quarter
Change in Accounting Treatment
In August 2007, ReneSola and Linzhou Zhongsheng Steel Co., Ltd. (“Zhongsheng Steel”) established a joint venture company, Linzhou Zhongsheng Semiconductor, to engage in virgin polysilicon production in Linzhou, Henan Province, China (the “Joint Venture”). Under the Joint Venture agreement, ReneSola, which holds a 49% interest, was obligated to purchase 90% of the Joint Venture’s output, at 97% of the market price, for a period of 30 years. As a result of the terms of the Joint Venture agreement, ReneSola had previously consolidated the results of the Joint Venture within its own consolidated accounts.
On June 28, 2008, following a reassessment of the Joint Venture’s position under the Company’s multi-pronged feedstock strategy and the Company’s raw material supply sufficiency, ReneSola and Zhongsheng Steel amended the agreement to reduce the contracted obligation of the Company to purchase the output of the Joint Venture to a minimum of 55% output at market price for a period of three years. As a result, the Joint Venture is no longer considered a variable interest entity under the US GAAP. Effective from June 28, 2008, the Company no longer consolidates the Joint Venture and records its 49% interest as “Equity Investment in Joint Venture” on the consolidated balance sheet. Consequently, the Company’s consolidated balance sheet at June 30, 2008 does not include consolidated figures for the Joint Venture. However, the income statement includes consolidated figures for the Joint Venture up to June 28, 2008. For clarity and comparison purposes, the discussion of figures from the income statement set out below shows figures with the consolidation of the Joint Venture and figures calculated using the Equity Accounting Method to account for the Company’s investment in the Joint Venture in the quarter.
With recent developments in our feedstock procurement strategy, the amendments to the Joint Venture agreement are not expected to have a negative impact on ReneSola’s raw material sufficiency for the planned production output in 2008. The feedstock procurement contracts recently signed are expected to provide additional buffer to the Company’s raw material sufficiency in 2008 and beyond.
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Net revenues
Net revenues for the second quarter of 2008 were US$173.0 million, an increase of 40.7% sequentially and 289.0% year-over-year. Under the Equity Accounting Method, net revenues for the second quarter of 2008 were US$171.9 million, an increase of 39.9% sequentially and 286.5% year-over-year. The increase in second quarter revenues was primarily attributable to an increase in output from the expanded production capacity and increasing wafer ASPs.
Gross profit
Gross profit for the second quarter of 2008 was US$42.8 million, a 57.1% increase sequentially and 330.0% year-over-year. The gross margin for the second quarter 2008 was 24.7% compared to 22.1% in the first quarter of 2008. Under the Equity Accounting Method, the gross margin for the second quarter of 2008 increased to 22.4% from 22.1% in the first quarter of 2008 despite the increase in average feedstock costs of 6.4% sequentially. The increase in gross margin was primarily attributable to a further reduction in the silicon consumption rate to 6.24 grams per watt from 6.30 grams per watt in the first quarter of 2008, the continuing reduction in non-raw material related production costs, and increases in wafer ASPs due to a high demand for our wafer products.
Operating profit
Operating profit for the second quarter of 2008 was US$34.5 million, an increase of 48.9% sequentially and 328.4% year-over-year. The operating margin was 20.0% in the second quarter compared to 18.9% in the first quarter of 2008. Under the Equity Accounting Method, the operating margin for the second quarter of 2008 was 17.8% compared to 19.0% in the first quarter of 2008. Total operating expenses in the second quarter of 2008 increased to US$8.3 million from US$4.0 million in the first quarter of 2008. The increase in operating expenses was primarily attributable to a substantial increase in R&D expenditure relating to our investment in developing alternative silicon feedstock materials.
Profit before tax
Profit before tax for the second quarter of 2008 was US$31.2 million, a 46.6% increase sequentially and 442.6% year-over-year. Under the Equity Accounting Method, profit before tax for the quarter was US$28.2 million, an increase of 32.0% sequentially and 389.7% year-over-year. Finance costs increased by 28.5% sequentially, reflecting increased bank borrowings and interest rates. Finance costs as a percentage of net revenue decreased from 1.7% in the first quarter of 2008 to 1.6% in the second quarter of 2008. The second quarter foreign exchange loss was US$0.8 million compared to a foreign exchange loss of US$0.06 million in the first quarter of 2008.
Taxation
We recognized a tax expense of US$6.8 million in the second quarter of 2008, compared to a tax expense of US$3.6 million in the first quarter of 2008. Under the Equity Accounting Method, our tax expense was US$4.8 million. The effective tax rate was 21.9% with consolidation of the Joint Venture and 17% applying the Equity Accounting Method.
Net profit
Net profit during the second quarter of 2008 increased 31.9% sequentially and 294.6% year-over-year to US$23.3 million. Net profit for the quarter was the same applying the Equity Accounting Method.
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Other Recent Business Developments
Sichuan Polysilicon Project
On May 14, 2008 ReneSola announced that it had increased the planned annual polysilicon manufacturing capacity to 3,000 tonnes at the wholly-owned facility in Meishan, Sichuan Province, China. Construction of this facility is on track, with completion expected in early 2009. The facility is expected to be operational in the first half of 2009.
Feedstock procurement
As a part of ReneSola’s diverse feedstock procurement strategy, the Company recently signed a number of polysilicon procurement contracts with international and domestic suppliers with terms ranging from one to five years. With two long term polysilicon procurement contracts signed in 2007, a total of 2,500 tonnes of polysilicon will be delivered during 2008 and 2009, with the majority to be delivered in 2009.
Sales contracts
ReneSola has signed a number of substantial long term sales contracts since June 24, 2008. The key contracts signed are as follows:
| • | An agreement with Suntech Power Co. Ltd. (“Suntech”) for the supply of approximately 1.5 GW of wafers over an eight-and-half-year period beginning in July 2008. In October 2007, ReneSola and Suntech signed a four-year contract for the supply of 510MW of silicon wafers. The new contract provides for the supply of additional wafers to Suntech in 2008 and replaces the remaining term of the contract signed in October. |
| • | An agreement with Jetion Holdings Ltd. (“Jetion”) to deliver 120 MW of solar wafers over a six-year period beginning in the third quarter of 2008. This agreement replaces a three-year wafer sales contract signed in August 2007 with Jetion for 2008 to 2010. |
| • | A wafer tolling service contract with CSG PV Tech Co., Ltd in Guangdong province, China to deliver 266 MW of solar wafers over a four-year period beginning in the third quarter of 2008. |
| • | A wafer sales contract with a cell manufacturer in northern China to deliver 225 MW of solar wafers over a five-year period beginning in the third quarter of 2008. |
| • | A wafer sales contract with ShanShan Ulica Science & Technology Co., Ltd in Jiangsu province, China to deliver 105 MW of solar wafers over a six-year period beginning in the third quarter of 2008. |
Production Capacity
As a part of ReneSola’s ingot manufacturing capacity expansion to 645 MW by the end of 2008, the construction of a facility to house 160 MW of multicrystalline furnaces is now complete and ready for delivery of the furnaces which will occur during the third and fourth quarters of 2008.
Construction has begun on a new multicrystalline wafer facility that will hold an additional 355 MW of multicrystalline furnaces as a part of ReneSola’s 2009 wafer manufacturing capacity expansion plan. The facility is expected to be complete in January 2009. The furnaces are contracted to be delivered in batches, and the last shipment is expected to be delivered in early third quarter of 2009.
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Third Quarter, 2008 and 2009 Outlook
Production output in the third quarter of 2008 is expected to be in the range of 90 MW to 95 MW, compared to 82.5 MW in the second quarter of 2008 and 36.0 MW in the third quarter of 2007. Gross margin for the second half of 2008 is expected to remain stable at the level under the Equity Accounting Method for the Company’s investment in the Joint Venture.
Based on strengthened wafer ASPs and increased production output we are once again increasing our annual production output and revenue estimates for 2008 and expect output to be in the range of 340 MW to 350 MW from the previously guided 330 MW to 340 MW, and expect estimated annual net revenues to be in the range of US$640 million to US$670 million from the previously guided US$570 million to US$590 million.
We maintain our wafer production capacity target to be 1 GW by the end of 2009 and our 2009 annual production output is expected to be in the range of 650 MW to 750 MW, including output from tolling arrangements in the range of 100 MW to 150 MW.
Conference Call Information
ReneSola’s management will host an earnings conference call on Tuesday, August 19, 2008 at 8 AM U.S. Eastern Daylight Time / 8 PM Beijing/Hong Kong time / 1 PM British Summer Time.
Dial-in details for the earnings conference call are as follows:
| U.S. & International: | +1-617-597-5313 | |||||||||
| 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.”
A replay of the conference call may be accessed by phone at the following number until August 26, 2008:
| International: | +1-617-801-6888 | |||||||||
| Passcode: | 85970723 |
About ReneSola
ReneSola Ltd (“ReneSola”) is a leading global manufacturer of solar wafers 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). 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
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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: | ||
| Mr. Charles Bai | ||
| ReneSola Ltd | ||
| Tel: | +86 (573) 8477-3061 | |
| E-mail: | charles.bai@renesola.com | |
| Mr. Derek Mitchell | ||
| Ogilvy Financial, Beijing | ||
| Tel: | +86 (10) 8520-6284 | |
| E-mail: | derek.mitchell@ogilvy.com | |
| In the United States: | ||
| Mr. Thomas Smith | ||
| Ogilvy Financial, New York | ||
| Tel: | +1 (212) 880-5269 | |
| E-mail: | thomas.smith@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 | ||
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CONSOLIDATED INCOME STATEMENT
| Three months ended June 30, 2007 |
Three months ended March 31, 2008 |
Three months ended June 30, 2008 | ||||
| US$000 | US$000 | US$000 | ||||
| Net revenues: |
44,471 | 122,982 | 173,007 | |||
| Cost of revenues: |
-34,521 | -95,748 | -130,221 | |||
| Gross profit |
9,950 | 27,234 | 42,786 | |||
| Operating expenses: |
||||||
| Sales and marketing |
-114 | -267 | -231 | |||
| General and administrative |
-1,707 | -3,389 | -4,869 | |||
| Research and development |
-100 | -442 | -3,504 | |||
| Other general income (expenses) |
33 | 51 | 353 | |||
| Total operating expenses |
-1,888 | -4,047 | -8,251 | |||
| Income from operations |
8,062 | 23,187 | 34,535 | |||
| Non-operating (expenses) income: |
||||||
| Interest income |
1,094 | 306 | 234 | |||
| Interest expenses |
-1,162 | -2,144 | -2,755 | |||
| Foreign exchange (loss) gain |
-2,241 | -56 | -797 | |||
| Total non-operating (expenses) income |
-2,309 | -1,894 | -3,318 | |||
| Income before income tax |
5,753 | 21,293 | 31,217 | |||
| Income tax benefit(expenses) |
154 | -3,560 | -6,844 | |||
| Minority interest |
— | -58 | -1,064 | |||
| Net income |
5,907 | 17,675 | 23,309 | |||
| Net income per share: |
||||||
| - Basic |
0.06 | 0.15 | 0.20 | |||
| - Diluted |
0.06 | 0.14 | 0.19 | |||
| Net income per ADS: |
||||||
| - Basic |
0.12 | 0.30 | 0.40 | |||
| - Diluted |
0.12 | 0.28 | 0.38 | |||
| Shares used in computation: |
||||||
| - Basic |
100,000,032 | 113,906,186 | 120,159,747 | |||
| - Diluted |
110,642,079 | 124,460,612 | 130,890,990 | |||
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CONSOLIDATED BALANCE SHEET
| As at December 31, 2007 |
As at June 30, 2008 | |||
| US$000 | US$000 | |||
| ASSETS |
||||
| Current assets: |
||||
| Cash and cash equivalents |
53,137 | 274,153 | ||
| Accounts receivable, net of allowances for doubtful receivables |
8,755 | 2,735 | ||
| Inventories |
110,630 | 206,149 | ||
| Advances to suppliers |
53,727 | 100,128 | ||
| Amounts due from related parties |
17,213 | 28,019 | ||
| Value added tax recoverable |
117 | 2,021 | ||
| Prepaid expenses and other current assets |
9,654 | 6,218 | ||
| Deferred tax assets |
10,487 | 5,485 | ||
| Total current assets |
263,720 | 624,908 | ||
| Property, plant and equipment, net |
136,598 | 183,991 | ||
| Prepaid land rent, net |
7,502 | 7,870 | ||
| Deferred tax assets |
284 | 359 | ||
| Deferred convertible bond issue costs |
3,336 | 2,760 | ||
| Equity investment in joint venture |
— | 16,978 | ||
| Advances for purchases of property, plant and equipment |
29,648 | 89,654 | ||
| Total assets |
441,088 | 926,520 | ||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||
| Current liabilities: |
||||
| Short-term borrowings |
-71,691 | -133,581 | ||
| Accounts payable |
-13,147 | -21,702 | ||
| Advances from customers |
-59,626 | -94,498 | ||
| Amounts due to related parties |
— | -149 | ||
| Other current liabilities |
-13,912 | -16,564 | ||
| Total current liabilities |
-158,376 | -266,494 | ||
| Convertible bond payable |
-128,265 | -137,375 | ||
| Long-term borrowings |
-17,797 | -44,321 | ||
| Other long-term liabilities |
-1,246 | -1,837 | ||
| Total liabilities |
-305,684 | -450,027 | ||
| Minority interest: |
-9,696 | -707 | ||
| Shareholders’ equity |
||||
| Common shares |
-36,266 | -330,666 | ||
| Additional paid-in capital |
-14,827 | -16,609 | ||
| Retained earnings |
-66,200 | -107,184 | ||
| Accumulated other comprehensive income |
-8,415 | -21,327 | ||
| Total shareholders’ equity |
-125,708 | -475,786 | ||
| Total liabilities and shareholders’ equity |
-441,088 | -926,520 | ||
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CONSOLIDATED CASH FLOW STATEMENT
| Three months ended June 30, 2007 |
Three months ended March 31, 2008 |
Three months ended June 30, 2008 | ||||
| US$000 | US$000 | US$000 | ||||
| Cash flows from operating activities: |
||||||
| Net income |
5,907 | 17,675 | 23,309 | |||
| Adjustments for: |
||||||
| Minority interest |
— | 58 | 1,064 | |||
| Depreciation |
705 | 2,459 | 3,653 | |||
| Amortization of deferred convertible bond issue costs and premium |
686 | 757 | 775 | |||
| Allowances for doubtful receivables |
32 | 35 | 249 | |||
| Prepaid land rent expensed |
28 | — | 82 | |||
| Share-based compensation |
95 | 670 | 1,175 | |||
| Derivatives |
— | — | -573 | |||
| Deferred taxes |
-191 | 1,730 | 3,650 | |||
| Changes in operating assets and liabilities: |
||||||
| Accounts receivable |
405 | -7,914 | 13,440 | |||
| Inventories |
-14,623 | -40,353 | -44,017 | |||
| Advances to suppliers |
-22,916 | -32,194 | -11,447 | |||
| Amounts due from related parties |
-3,195 | -17,746 | 18,649 | |||
| Value added tax recoverable |
-936 | -2,667 | 2,672 | |||
| Prepaid expenses and other current assets |
-5,144 | 2,151 | -5,867 | |||
| Prepaid land rent |
-2,941 | -1,579 | — | |||
| Accounts payable |
730 | 8,505 | -1,029 | |||
| Advances from customers |
-6,437 | 9,869 | 20,925 | |||
| Other liabilities |
239 | -3,728 | 7,727 | |||
| Net cash provided by (used in) operating activities |
-47,556 | -62,272 | 34,437 | |||
| Cash flows from investing activities: |
||||||
| Purchases of property, plant and equipment |
-22,384 | -22,330 | -50,668 | |||
| Advances for purchases of property, plant and equipment |
-11,082 | -45,339 | -11,915 | |||
| Cash decreased due to deconsolidation |
— | — | -4,416 | |||
| Net cash used in investing activities |
-33,466 | -67,669 | -66,999 | |||
| Cash flows from financing activities: |
||||||
| Net proceeds from short-term borrowings |
16,729 | 29,221 | 51,369 | |||
| Proceeds from issuance of common shares |
— | 119,762 | 196,017 | |||
| Share issuance costs |
— | -10,737 | -10,787 | |||
| Cash received from related parties |
389 | 15 | — | |||
| Cash paid to related parties |
-388 | — | — | |||
| Net cash provided by financing activities |
16,730 | 138,261 | 236,599 | |||
| Effect of exchange rate changes |
1,165 | 5,984 | 2,675 | |||
| Net increase in cash and cash equivalents |
-63,127 | 14,304 | 206,712 | |||
| Cash and cash equivalents, beginning of year |
131,031 | 53,137 | 67,441 | |||
| Cash and cash equivalents, end of year |
67,904 | 67,441 | 274,153 | |||
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PROFORMA INCOME STATEMENT ENDED MARCH 31, 2008
| Consolidation method Three months ended March 31, 2008 |
Reconciliation | Equity method Three months ended March 31, 2008 | ||||
| US$000 | US$000 | US$000 | ||||
| Net revenue |
122,982 | -146 | 122,836 | |||
| Total cost of revenues |
-95,748 | 48 | -95,700 | |||
| Gross profit |
27,234 | -98 | 27,136 | |||
| Operating expenses: |
||||||
| Sales and marketing |
-267 | -1 | -268 | |||
| General and administrative |
-3,389 | 234 | -3,155 | |||
| Research and development |
-442 | — | -442 | |||
| Other general expense (income) |
51 | — | 51 | |||
| Total operating expenses |
-4,047 | 233 | -3,814 | |||
| Income from operations |
23,187 | 135 | 23,322 | |||
| Non-operating (expenses) income: |
||||||
| Interest income |
306 | -4 | 302 | |||
| Interest expenses |
-2,144 | — | -2,144 | |||
| Foreign exchange (loss) gain |
-56 | 29 | -27 | |||
| Investment Income |
— | -115 | -115 | |||
| Total non-operating (expenses) income |
-1,894 | -90 | -1,984 | |||
| Income before income tax |
21,293 | 45 | 21,338 | |||
| Income tax benefit |
-3,560 | 74 | -3,486 | |||
| Minority interest |
-58 | -119 | -177 | |||
| Net income |
17,675 | — | 17,675 | |||
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PROFORMA INCOME STATEMENT ENDED JUNE 30, 2008
| Consolidation method Three months ended June 30, 2008 |
Reconciliation | Equity method Three months ended June 30, 2008 | ||||
| US$000 | US$000 | US$000 | ||||
| Net revenue |
173,007 | -1,118 | 171,889 | |||
| Total cost of revenues |
-130,221 | -3,242 | -133,463 | |||
| Gross profit |
42,786 | -4,360 | 38,426 | |||
| Operating expenses: |
||||||
| Sales and marketing |
-231 | 78 | -153 | |||
| General and administrative |
-4,869 | 266 | -4,603 | |||
| Research and development |
-3,504 | — | -3,504 | |||
| Other general expense (income) |
353 | 16 | 369 | |||
| Total operating expenses |
-8,251 | 360 | -7,891 | |||
| Income from operations |
34,535 | -4,000 | 30,535 | |||
| Non-operating (expenses) income: |
||||||
| Interest income |
234 | -3 | 231 | |||
| Interest expenses |
-2,755 | — | -2,755 | |||
| Foreign exchange (loss) gain |
-797 | — | -797 | |||
| Investment Income |
— | 958 | 958 | |||
| Total non-operating (expenses) income |
-3,318 | 955 | -2,363 | |||
| Income before income tax |
31,217 | -3,045 | 28,172 | |||
| Income tax benefit |
-6,844 | 2,048 | -4,796 | |||
| Minority interest |
-1,064 | 997 | -67 | |||
| Net income |
23,309 | — | 23,309 | |||
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