(Yicai Global) June 14 -- Shares of China's Jolywood Sunwatt dived after the solar panel manufacturer said it will terminate its photovoltaic cell and module project in Indonesia due to changes in the trading environment.

Jolywood's stock price [SHE: 300393] dropped 6 percent to close at CNY15.98 (USD2.40). However, the shares have moved up by more than 100 percent in value over the past 12 months.

The PV product supplier has decided to abandon the project and one of the reasons is that construction has not been kicked off amid new Covid-19 outbreaks in Indonesia and China since the second half of last year, the Changshu-based firm said in a statement yesterday.

Moreover, the United States has launched trade enforcement measures such as anti-circumvention investigations against some PV manufacturers in Southeast Asia, causing major changes in the regional trade environment, said the company.

Finally, the Russia-Ukraine conflict has affected the global supply chain and roiled financial markets, which has also brought about much uncertainty to the implementation of the project, the firm added.

Jolywood first announced the investment plan in March 2021. The idea was to set up a joint venture with its Indonesian partner PT Len Agra Energy to build a factory to make one gigawatt of solar cells and one GW of modules per year. Part of the plan was to sell the products abroad, especially in North America.

Editor: Emmi Laine, Xiao Yi