Yu Diamond: The competitive advantage has entered a period of rapid expansion

The company listed on the GEM in March 2010 and is the third largest synthetic diamond synthetic manufacturer in China. In 2009, its production capacity reached 420 million carats, and its market share was about 8%.

Traditional and emerging applications are driving rapid growth in market demand. Synthetic diamond is mainly used in stone building materials, mechanical and electronic processing, etc., benefiting from the improvement of national urbanization rate and the upgrading policy of high-end equipment manufacturing.
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Henan Diamond 35.68+3.249.99% The demand for diamonds in the traditional field will continue to grow steadily; the application of diamond in emerging industries such as electronic information industry and photovoltaic industry will accelerate the expansion of market space; in addition, the growth of demand in overseas markets is also beneficial to domestic Diamond production company. According to statistics, the domestic synthetic diamond production in 2009 was 5.4 billion carats, accounting for more than 70% of the global total. It is estimated that the global demand for synthetic diamonds will reach 12 billion carats in 2012, and the domestic demand will be at least 8.4 billion carats. The growth rate will reach 15%-20%.

Cost and equipment technology advantages enhance competitiveness. The company's gross profit margin is nearly 10% higher than that of its peers, because the company has: 1) the cost advantage obtained by integrating the upstream and downstream industry chain; 2) the advantage of equipment technology obtained by using the large cylinder diameter press, improving the finished product rate and high grade rate, and improving Product added value, the company's product price has a 10% premium than the market average price. With the expansion of scale, the company's cost still has room to decline, further enhancing the company's market competitiveness.

Solve the funding problem and step into the high-speed expansion period. The company listed on the GEM in March 2010. The actual raised funds are 745 million yuan. The company has planned to invest 390 million yuan to build a 640 million carat synthetic diamond project, and the capacity scale will be expanded by at least 150%. The company still has 350 million yuan of funds. According to the calculation of super-raised funds, it can at least expand the production capacity of 680 million carats, an increase of more than 160%. The expansion of scale will drive performance growth. It is expected that the company's net profit growth rate will reach 45%-50% in the next three years. In addition, since the company's R&D center mainly conducts research on downstream application tools, it does not rule out the possibility of future companies using the raised funds to enter the downstream tool industry.

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