WSP Holdings LTD

CIK:0001418225|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
CONSOLIDATED STATEMENTS OF OPERATIONS
Net revenues	$ 561,297	$ 686,125	$ 470,465
Cost of revenues	(536,823)	(637,615)	(467,400)
Gross profit	24,474	48,510	3,065
Selling and marketing expenses	(17,192)	(34,486)	(20,841)
General and administrative expenses	(78,146)	(61,774)	(67,008)
Impairment on long-lived assets			(17,055)
Gain on disposal of subsidiary	2,512	3,268
Other operating income, net	6,190	2,777	5,446
Loss from operations	(62,162)	(41,705)	(96,393)
Other income (expenses)
Interest income	6,686	4,348	3,440
Interest expense	(43,310)	(34,957)	(29,483)
Other income	64	767	767
Exchange differences	2,676	(5,144)	(1,484)
Loss before provision for income taxes	(96,046)	(76,691)	(123,153)
Benefit from (provision for) income taxes	6,131	(99)	(9,388)
Net loss before earnings in equity investments	(89,915)	(76,790)	(132,541)
Earnings (loss) in equity investments	44	(10)	(211)
Net loss	(89,871)	(76,800)	(132,752)
Less: Net loss attributable to non-controlling interests	5,686	8,320	13,989
Net loss attributable to WSP Holdings Limited	$ (84,185)	$ (68,480)	$ (118,763)
Loss attributable to WSP Holdings Limited per share
Basic (in dollars per share)	$ (0.41)	$ (0.34)	$ (0.58)
Diluted (in dollars per share)	$ (0.41)	$ (0.34)	$ (0.58)
Weighted average ordinary shares used in the computation of loss per share:
Basic (in shares)	204,375,226	204,375,226	204,771,144
Diluted (in shares)	204,375,226	204,375,226	204,771,144

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Cash flows from operating activities:
Net loss	$ (89,871)	$ (76,800)	$ (132,752)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation of property, plant and equipment	48,409	38,912	34,094
Amortization of prepaid lease payments for land use rights	814	749	853
Amortization of acquired intangible assets	13	28	182
Allowance for doubtful accounts	46	978	10,249
Product warranty provided	5,449	4,013	425
Loss on disposal of property and equipment	4,534	129	(885)
Loss (earnings) in equity investments	(44)	10	211
Gain on disposal of subsidiary	(2,512)	(3,268)
Exchange loss from foreign currency denominated loan	(1,927)	1,351
Fair value change of consideration payable in connection with acquisition of Mengfeng	6	121	71
Impairment on long-lived assets			17,055
Changes in assets and liabilities:
Accounts and bills receivable	54,612	(49,775)	826
Advances to suppliers	(6,567)	(3,313)	6,913
Amounts due from related parties	(2,136)	244	5,953
Inventories, net	37,894	(7,433)	32,455
Land use rights			(3,877)
Prepaid expenses and other current assets	2,853	(4,863)	(15,322)
Accounts payable	(6,833)	139,629	8,615
Amounts due to related parties	(14,191)	29,664	(453)
Advances from customers	(3,358)	1,206	(7,392)
Deferred income taxes	(7,205)	(4,195)	(1,307)
Income taxes payable	67	(309)	259
Income taxes receivable	202	363	6,258
Other payables and accrued expenses	(12,229)	(5,141)	26,216
Product warranty	(5,566)	(2,453)	(45)
Unrecognized tax benefits	792	944	6,256
Net cash provided by (used in) operating activities	3,252	60,791	(5,142)
Cash flows from investing activities:
(Increase) decrease in restricted cash	47,717	(104,035)	68,187
Decrease (increase) in term deposit	(32)	17	(189)
Purchase of property, plant and equipment	(39,048)	(93,394)	(139,283)
Net proceeds from disposal of subsidiary		9,831
Proceeds from disposal of property and equipment	38,640	14
Purchase of intangible assets			(119)
Net cash provided by (used in) investing activities	47,259	(187,567)	(71,404)
Cash flows from financing activities:
Proceeds from short-term loans	809,433	913,017	742,566
Proceeds from long-term loans		169,785	66,179
Repayment of other advances			(5,060)
Repayment of short-term loans	(819,712)	(921,280)	(765,519)
Repayment of long-term loans	(34,992)	(63,944)	(28,215)
Payment for deferred consideration payable for acquisition of Mengfeng			(17,727)
Repurchase of ordinary shares			(2,000)
Net cash provided by (used in) financing activities	(45,271)	97,578	(9,776)
Effect of foreign exchange rate changes on cash and cash equivalents	(6,895)	8,270	1,760
Net decrease in cash and cash equivalents	(1,655)	(20,928)	(84,562)
Cash and cash equivalents at beginning of the year	27,742	48,688	133,250
Add (less): Cash and cash equivalents at end of period included in assets held for sale	18	(18)
Cash and cash equivalents at end of the year	26,105	27,742	48,688
Non-cash investing and financing activities:
Nonmonetary transaction in relation to disposal of Jiangsu Fanli (Note 4)			13,913
Liabilities assumed in connection with purchase of property, plant and equipment on credit term	36,724	39,289	38,741
Increase in restricted cash related to disposal of assets held at escrow account	4,300
Supplemental cash flow information:
Interest paid	56,124	34,590	37,308
Income taxes paid	24	309	2,242
Income taxes refunded			(4,413)
Chaoyang Seamless
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Gain on disposal of subsidiary	(2,512)
Cash flows from investing activities:
Net proceeds from disposal of subsidiary	$ (18)

CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 26,105	$ 27,742
Restricted cash	206,802	249,812
Term deposit	318	286
Accounts and bills receivable, net of allowance for doubtful accounts of $22,593 and $22,762 in 2011 and 2012, respectively	217,030	260,139
Advances to suppliers	25,866	19,229
Inventories, net	205,229	242,240
Prepaid lease payments for land use rights, current	809	761
Income taxes receivable	562	763
Prepaid expenses and other current assets	42,322	40,336
Amounts due from related parties	2,294	148
Assets held for sale		20,314
Deferred income tax assets	5,094	4,792
Total current assets	732,431	866,562
Property, plant and equipment, net	597,619	653,783
Intangible assets, net	96	108
Prepaid lease payments for land use rights, non-current	34,221	32,957
Deposits for acquisition of property, plant and equipment	5,442	4,070
Equity-method investment	863	817
Deferred income tax assets, non-current	19,650	12,819
Total assets	1,390,322	1,571,116
Current liabilities:
Accounts payable	332,017	307,740
Advances from customers	3,470	6,825
Amounts due to related parties	3,740	17,939
Accrued expenses and other current liabilities	76,783	88,377
Income taxes payable	491	424
Borrowings - due within one year	786,987	773,541
Product warranty	2,484	2,595
Liabilities held for sale		47,559
Total current liabilities	1,205,972	1,245,000
Borrowings - due after one year	15,910	79,354
Deferred income tax liabilities, non-current	2,491	2,617
Unrecognized tax benefits	13,555	12,763
Total liabilities	1,237,928	1,339,734
WSP Holdings Limited shareholders' equity:
Share capital (Ordinary shares $0.0001 par value, 500,000,000 shares authorized, 204,375,226 shares issued and outstanding as of December 31, 2011 and 2012)	20	20
Additional paid-in capital	255,312	255,312
Statutory non-distributable reserves	37,119	37,119
Retained earnings	(182,876)	(98,691)
Accumulated other comprehensive income	41,579	40,113
Total WSP Holdings Limited shareholders' equity	151,154	233,873
Non-controlling interests	1,240	(2,491)
Total equity	152,394	231,382
Total liabilities and equity	$ 1,390,322	$ 1,571,116