Struggling LDK Solar has reported a net loss of US$1.05 billion in 2012, the starkest figure in an annual report containing volumes of negative financial figures.

The technically bankrupt PV manufacturer made a loss from operations of US$807.7 million and a gross loss of US$352.5. Gross margin was negative 40.86% in 2012.

The company exited 2012 with only US$98.28 million in cash and cash equivalents but did have pledged bank deposits of US$167.1 million.

Total liabilities amounted to US$5.2 billion with outstanding short-term borrowings of US$2,391.3 million. To feed the interest rates, LDK Solar generated a positive operating cash flow of only $39.9 million in 2012.

Key customers in 2012 were said in the report to be Sumitomo Corporation, Photovoltech NV-SA, (bankrupt in mid-2012), Hyundai Heavy Industry, Solartech Energy Corporation and Gintech Energy Corporation.

Not surprisingly, the company has seen a massive headcount reduction. Total employees in 2012 were 8,979, down from 24,449 in 2011.

The company spent US$17.7 million on R&D in 2012, down from US$43.1 million in 2011. LDK Solar had 275 employees in R&D activities last year.  
Noted in the report was LDK Solar’s attempt to gain more funding from banks in China to stay afloat. The company is seeking additional funds of US$318 million to support operations and capital expenditure plans, which were said to be in the range of US$80 million to US$150 million in 2013. CapEx in 2012 was US$79.5 million.