China-based PV backsheet and high-efficiency PV manufacturer Jolywood (Suzhou) Sunwatt Co expects to report a small loss in the first quarter of 2020 due to the impact of COVID-19 on its materials and solar module manufacturing operations.
Jolywood said that it expected to report a loss in the range of RMB 17 million to RMB 22 million (US$2.4 million to US$3.1 million) in Q1. The company had reported a US$3.93 million net profit in the first quarter of 2019. Jolywood is expected to report 2019 and Q1 2020 financials before the end of April.
The company cited several COVID-19 issues that related to the expected losses for the reporting quarter, which included delays in restarting production due to difficulties of employees returning to work and well as logistics and transportation restrictions.
Jolywood also noted that supply chain issues, stating that some raw and auxiliary materials had been in short supply, causing a suspension of work at times as well as increased manufacturing costs.
At its PV module manufacturing subsidiary, Jolywood (Taizhou) Solar Technology Co, the company noted that after a recent capacity expansion phase, sales volume was impacted by COVID-19, reducing profits and adding costs, also contributed to the expected losses in Q1.