Jolywood Releases H1/2021 Financial Report

Chinese Solar Module Maker Jolywood Plans To Build 10 GW N-Type High Efficiency Bifacial Solar Module Production Capacity In Nanqiao, China; High Shipping & Raw Material Prices Impacted H1/2021 Net Profit

Jolywood Releases H1/2021 Financial Report

Jolywood is focusing its resources on strengthening its product portfolio with plans to launch a new product, Hauberk 2.0 transparent backsheet in 2021. It has also signed an agreement to invest in a 10 GW N-type bifacial module production capacity project. (Photo Credit: Jolywood)

  • Jolywood will build 10 GW N-type high efficiency bifacial module project in China’s Nanqiao district
  • It increased operating income on annual basis in H1/2021 to 16.7%, but net profit declined by 71.87%
  • The company invested 3.3% of its operating revenue on R&D expenses that grew 15.25% compared to previous year
  • Its net profit was negatively impacted due to higher shipping and raw material costs

Chinese solar backsheet, cells and module producer Jolywood is expanding its module production capacity by 10 GW with the signing of a strategic cooperation framework agreement with the local government of Nanqiao district in Chuzhou city. It plans to set up N-type high-efficiency bifacial solar module capacity of 10 GW using around 600 acres of land, Jolywood announced in a stock exchange filing on August 25, 2021.

Jolywood said the agreement is in line with its development strategy, expand its production capacity and accelerate the expansion of its module market share that will enhance its sustainable profitability. The company will also jointly invest with the local administration on developing 200 MW distributed PV project capacity in Nanqiao. A formal investment contract is yet to be realized.

H1/2021

Meanwhile, the manufacturer has admitted facing negative impacts of ongoing challenges in the global raw material supply chain and higher logistical costs, reflecting on its business in the 1st half of 2021.

During H1/2021, the company reported having increased its annual operating income by 16.7% to a total of RMB 2.373 billion, with its backsheet business adding RMB 806 million, representing an improvement of 41.33% over same period. However, its net profit dropped down 71.87% to RMB 31.08 million, compared to RMB 110.4 million in H1/2020 for which it attributes challenges related to significant increase in raw material prices, along with shipping and transportation costs.

“The solar chain supply/demand dynamics were imbalanced in the first half of 2021. The industry chain price met a sharp rise due to which the wafer price increased by 37% while the slurry price increased by 31%, resulting in a sharp rise in costs,” stated Jolywood.

It invested 15.25% more on its R&D expenses on YoY basis, accounting for 3.30% of operating revenue to a total of RMB 78.4 million.

Backsheet

Jolywood manufactures its backsheets from the base in Changshu city of Jiangsu province with an annual production capacity of 170 million sq. mtr.—enough to support close to 40 GW of modules. During the reporting period, the company said, due to the increase in the price of raw material of PVDF resin, the price of K film backsheet products increased significantly, but that of its main FFC-coated backsheet products remained stable. In 2021, it plans to release its Hauberk 2.0 transparent backsheet which will add to more than 10 types of backsheet products it already produces. The manufacturer counts JinkoSolar, China Power Investment, Chint Solar, Talesun, Hyundai among its customers that use transparent backsheet products.

Jolywood’s CTO Dr. Fute. Zhang will talk about the new hauberk technology of the company during TaiyangNews Reliable PV Module Design Conference on August 31, 2021. Registrations can be done free here.

Solar cells and modules

Jolywood produces N-type high efficiency cells and modules from Taizhou city, also in Jiangsu. During the reporting period, the company said it actively worked on its technological transformation, to promote the mass production and application of large-size TOPCon cells based on large-size silicon wafers and J-TOPCon 2.0 process and develop large sized products.

It continues to work on the 16 GW high efficiency monocrystalline solar cell fab to be constructed in phases with 8 GW planned to come online under phase I, while also establishing a manufacturing subsidiary in Indonesia (see Jolywood To Expand Solar Cell Production By 16 GW).

About The Author

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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