CHANGZHOU, China, June 26 /Xinhua-PRNewswire-FirstCall/ -- Trina Solar Limited ("Trina Solar" or the "Company"), a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, founded in 1997, today announced that, in connection with the preparation of its financial statements for the year ended December 31, 2007, the Company has completed the computation of the fair value of a foreign exchange derivative embedded in a material long-term silicon supply contract. This contract provides that the purchase price of the silicon to be acquired shall be denominated in U.S. dollars, which was not the functional currency of either of the contracting parties at the time the contract was entered into. The impact of the foreign exchange derivative was recorded as "gain (loss) on change in fair value of derivative," a non-cash and non-operating item in the Company's consolidated statement of operations.
The following is a summary of the Company's unaudited consolidated statement of operations data for the three months ended March 31, June 30, September 30 and December 31, 2007 and March 31, 2008 and a summary of the Company's unaudited consolidated balance sheet data as of March 31, June 30, September 30 and December 31, 2007 and March 31, 2008. Such financial information is different from the financial information previously furnished to the Securities and Exchange Commission on Form 6-Ks due to adjustments made in connection with the embedded foreign exchange derivative computation. The Company has prepared the unaudited consolidated financial information on the same basis as its audited consolidated financial statements and in accordance with United States generally accepted accounting principles. Results for the quarterly financial information may not be indicative of the Company's full year results for 2008 or for future quarterly periods.
For the assumptions and details of the computation relating to the embedded foreign exchange derivative, see "Item 5. Operating and Financial Review and Prospects - Critical Accounting Policies" included in the Company's annual report on Form 20-F for the fiscal year ended December 31, 2007. The Company's annual report was filed with the Securities and Exchange Commission on June 26, 2008. See "Item 5. Operating and Financial Review and Prospects" included in the Company's annual report on Form 20-F for trends and other factors that may influence its results of operations.
For the Three Months Ended March June Sept. Dec. March 31, 30, 30, 31, 31, 2007 2007 2007 2007 2008 (in thousands) Net revenues $42,548 $75,305 $82,573 $101,394 $120,671 Cost of revenues 33,040 61,090 65,980 73,796 89,595 Gross profit 9,508 14,215 16,593 27,598 31,076 Selling expenses 1,593 2,335 3,230 3,860 2,958 General and administrative expenses 2,671 3,354 5,820 6,533 7,165 Research and development expenses 776 439 612 978 749 Total operating expenses 5,040 6,128 9,662 11,371 10,872 Income from continuing operations 4,468 8,087 6,931 16,227 20,204 Foreign exchange loss -- -- -- (1,440) (4,001) Interest expenses (1,202) (1,632) (2,081) (2,636) (3,473) Interest income 392 563 1,494 2,362 1,240 Gain (loss) on change in fair value of derivative (1,692) 170 534 1,842 -- Other expenses (110) 138 738 502 (25) Income from continuing operations before income taxes 1,856 7,326 7,616 16,857 13,945 Income tax (expenses) benefit 1,158 55 (15) 509 (1,072) Net income from continuing operations 3,014 7,381 7,601 17,366 12,873 Gain (loss) from discontinued operations 67 (20) 170 162 -- Income tax benefit (expense) (18) 7 -- -- -- Net income (loss) from discontinued operations 49 (13) 170 162 -- Net income attributable to ordinary shareholders $3,063 $7,368 $7,771 $17,528 $12,873 As of March June Sept. Dec. March 31, 30, 30, 31, 31, 2007 2007 2007 2007 2008 (in thousands) ASSETS Current assets: Cash and cash equivalents $28,582 $173,494 $92,892 $59,696 $38,210 Restricted cash 6,488 11,249 93,519 103,375 126,027 Inventories 51,740 65,686 51,172 58,548 73,173 Accounts receivable, net of allowance for doubtful accounts 42,039 67,856 52,646 72,323 80,484 Other receivable, net of allowance for doubtful accounts 3,895 2,573 3,320 3,063 3,978 Advances to suppliers 61,969 37,134 35,713 42,953 63,848 Amounts due from related parties -- -- -- 614 43 Value-added tax recoverable 1,218 1,020 1,509 1,417 4,585 Deferred tax assets 85 34 113 380 327 Current assets of discontinued operations 266 280 230 33 -- Total current assets 196,282 359,326 331,114 342,402 390,675 Property, plant and equipment, net 65,415 92,725 140,592 197,124 245,431 Intangible assets, net 2,383 2,408 5,114 5,462 5,593 Foreign currency embedded derivative -- -- -- 854 854 Advances to suppliers - long-term -- 22,795 24,424 53,737 64,449 Deferred tax assets 452 650 761 1,095 1,439 TOTAL ASSETS $264,532 $477,904 $502,005 $600,674 $708,441 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term borrowings, including current portion of long-term bank borrowings 68,915 109,515 122,861 163,563 245,422 Accounts payable 11,320 20,526 22,555 42,691 46,485 Accrued expenses 4,449 3,545 6,245 10,255 9,308 Advances from customers 722 384 957 2,371 2,036 Income tax payable 135 84 84 1,406 2,647 Current liabilities of discontinued operations 382 389 364 199 -- Total current liabilities 85,923 134,443 153,066 220,485 305,898 Long-term bank borrowings 5,172 5,252 -- 8,214 14,247 Accrued warranty costs 1,808 2,602 3,422 4,486 5,858 Long-term payables -- -- -- -- 712 Foreign currency embedded derivative 1,692 1,522 988 -- -- Total liabilities 94,595 143,819 157,476 233,185 326,715 Shareholders' equity Ordinary shares ($0.00001 par value) 22 22 22 26 26 Additional paid-in capital 148,760 304,124 304,519 304,878 306,162 Retained earnings 18,685 26,053 33,824 51,352 64,225 Accumulated other comprehensive income 2,470 3,886 6,164 11,233 11,313 Total shareholders' equity 169,937 334,085 344,529 367,489 381,726 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $264,532 $477,904 $502,005 $600,674 $708,441 About Trina Solar Limited
Trina Solar Limited , through its wholly-owned subsidiary Changzhou Trina Solar Energy Co. Ltd, is a well recognized manufacturer of high quality modules and has a long history as a solar PV pioneer since it was founded in 1997 as a system installation company. Trina Solar is currently one of the few PV manufacturers that has developed a vertically integrated business model from the production of monocrystalline and multicrystalline ingots, wafers and cells to the assembly of high quality modules. This integrated value chain helps to ensure that high quality products can be delivered to its end customers around the globe, including a number of European countries, such as Germany, Spain and Italy. Trina Solar's solar modules provide reliable and environmentally-friendly electric power for residential, commercial, industrial and other applications worldwide. For further information, please visit Trina Solar's website at http://www.trinasolar.com/ .
For more information, please contact:
Trina Solar Limited
Sean Shao, CFO
Phone: +86-519-8548-2008 (Changzhou)
Thomas Young, Director of Investor Relations
Phone: +86-519-8548-2008 (Changzhou)
Email:
