Yu Diamond: Gem-quality large single crystal will become the new highlight in 2015

Abstract Yu Diamond said that the Chinese economy that enters the “new normal” faces the risk of rising operating costs and increasing market competitiveness. The company will continue to improve the overall development strategy of the deep construction of the artificial diamond industry chain, with advanced man-made...
Yu Diamond said that the Chinese economy entering the "new normal" faces the risk of rising business costs and increasing market competitiveness. The company will continue to improve the overall development strategy of the deep construction of the synthetic diamond industry chain, along with advanced synthetic diamond projects and diamond yarns. The successive projects of the round projects and the full release of the capacity of the micro-diamond line project, the company's operating performance is expected to reach a new level.

In the first quarter of 2015, Yu Diamond submitted a bright transcript to the market: sales revenue and net profit were 157 million yuan and 21 million yuan respectively, with year-on-year growth rates of 25% and 31%, respectively. In the case that the diamond basically maintains a stable price, the increase is mainly due to the new product diamond wire saw and large single crystal volume.

The business status and development direction of large single crystals are currently the most concerned in the market. The large single crystal is also called large particle synthetic diamond. Liu Yongqi, general manager of the company, said at the performance briefing that the diamond large single crystal will become the new highlight of the company's business growth in 2015. At present, the company has been able to synthesize high-quality diamond large single crystals of 8mm or more, and is the only company that has mastered the large-scale synthesis of diamond single crystals with a mass synthesis of more than 3mm on a large six-sided top press. The contribution rate of the company's large single crystal sales and profits in 2014 was about 10%, and in the first quarter of 2015, the profit contribution rate of large single crystals was as high as 25%. The company expects that the volume of large single crystals will increase in 2015.

At present, Yu Diamond can realize the industrial scale production of industrial sheet-like large single crystal and gem-quality large single crystal. In particular, jewelry made of gem-quality large single crystals has reached the level of being comparable to natural diamonds, even more so than natural diamonds, so that jewelry experts can't distinguish them with the naked eye or with the help of low magnification magnifiers. The perfect quality of gem-quality large single crystals and the lower cost of mass production will bring about major changes in the field of jewellery consumption. Therefore, investors are particularly concerned about how the company will push gem-quality large single crystals into the consumer market.

Zhang Kai, secretary of the company's board of directors, said that the company may explore cooperation with jewellery and handicraft companies to jointly promote the development of large single crystal products in the field of jewelry consumption and enhance the influence of the company's brand in new application fields. Zhang Kai further revealed at the performance briefing that the overall gross profit margin of the company's gem-quality large single crystal is 50%-70%, and the expansion of the large single crystal project will be the development focus of the company in 2015. According to Guotai Junan Research Report, the market space for synthetic diamond downstream diamonds is as high as several hundred billion yuan. In 2015, it will be the first year of heavy diamond single crystal volume of Yu diamond.

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