Caixin reported on August 16 that Jolywood, a leader in the photovoltaic industry, released its semi-annual report on the evening of August 16, showing a significant decline in performance in the first half of the year, with a net loss of 0.306 billion yuan due to profit loss. This result is far below market expectations. In May of this year, many brokerages predicted that the company's net income for the year would be around 0.3 billion yuan. The actual performance is far from expectations, highlighting the uncertainty and risk currently faced by the photovoltaic industry.

According to the financial report, Jolywood achieved operating income of 3.08 billion yuan in the first half of the year, a year-on-year decrease of 46.53%. The main reason is that the prices of the photovoltaic industry chain continued to decline and the sales scale decreased during the reporting period, which shows that the business pressure of the company has significantly increased when facing the complex and changing market environment.

Although Jolywood's position in the global photovoltaic market is still stable as the world's leading solar backpane manufacturer and its backpane shipments have ranked first in the world for three consecutive years, and it also has advanced technology and production capacity in the field of n-type TOPCon cells and components, the half-year report shows that except for the revenue of the battery increased by 110.07% year-on-year, the revenue of backpane, component, and photovoltaic application systems, which account for a larger proportion, all decreased by about 50% year-on-year.

In the first half of the year, the net profit attributable to shareholders of the listed company was -0.306 billion yuan, compared with 0.236 billion yuan in the same period last year; after deducting non-recurring profit and loss, the net profit was further down to -0.337 billion yuan, compared with 0.307 billion yuan in the same period last year, which further highlights the severe situation of the company's performance.

In May of this year, Deutsche Bank Securities published a research report predicting that the company's net income attributable to shareholders would be 0.385 billion yuan in 2024; Zheshang Securities considered that the price of photovoltaic components was at a low level and predicted that the company's net income attributable to shareholders would be 0.29 billion yuan in 2024. However, the actual performance is far from expectations, undoubtedly sounding the alarm for relevant investors and industry insiders.

In addition, Jolywood also faces the risk of cash loss. The net cash flow from operating activities in the first half of the year was -0.621 billion yuan, compared with -0.603 billion yuan in the same period last year.

Regarding the significant decline in performance, Jolywood stated that the competition in the photovoltaic industry chain is increasingly severe, and the prices of the main products in the industry chain continued to decline in the first half of the year. In addition, the intensification of overseas trade frictions has made it a cyclical iterative stage.

According to statistics from the China Photovoltaic Industry Association, in the first half of 2024, the prices of polysilicon and silicon wafers fell by more than 40%, and the prices of battery wafers and components fell by more than 15%. In terms of output value, the domestic photovoltaic manufacturing end (excluding inverters) had an output value of approximately 53.86 billion yuan, a year-on-year decrease of 36.5%; in terms of exports, China's total export of photovoltaic products (silicon wafers, battery wafers, and components) was approximately $1.867 billion, a year-on-year decrease of 35.4%.

In order to better cope with the intense market competition, Jolywood stated that it will increase technology innovation and research and development investment, as well as strengthen the collaborative cooperation of auxiliary materials, batteries, and component sectors.

In the first half of the year, the company launched the "Yufeng module" based on the one-stop packaging solution of n-type full steelization, which has the performance advantages of "three lows and four resistances" (low temperature coefficient, low working temperature, low hot spot temperature, hurricane resistance, snowstorm resistance, hail resistance, and explosion resistance), and has significant advantages in weight and power generation gain compared to the double-glass modules of the same type on the market.

At the same time, Jolywood has also made important progress in the field of TOPCon cells. According to the verification certificate issued by China Institute of Metrology, the laboratory research and development of the company's 182-inch TOPCon cells have achieved a conversion efficiency of 26.7%. The company is still carrying out work such as research and development innovation, efficiency improvement and cost reduction, and mass production introduction of TOPCon cells. The average conversion efficiency of high-efficiency cells in the first half of the year has exceeded 26%.