On the evening of August 10, Diamond, the leading force in the diamond industry, released its 2022 semi-annual report. The semi-annual report shows that in the first half of the year, the operating income was 448 million yuan, a year-on-year increase of 105.14%.
The performance of the semi-annual report exceeded the forecast range, and the income of the cultivated diamond business increased significantly.
In July, liliang Diamond released a performance forecast. In the first half of the year, the net profit attributable to the parent company increased by 108.80%-118.98% year-on-year, while the actual semi-annual report showed that the net profit attributable to the parent company increased by 121.39% year-on-year. Among them, cultivated diamonds are the main business, with an operating income of 222 million yuan, a year-on-year increase of 149.49%.
“At present, the company has mass-produced 2-10 carats of large-grain high-grade cultivated diamonds, and the large-grain cultivated diamonds in the laboratory technology research stage can reach 30 carats.” Diamond means.
In addition, the semi-annual report also revealed that the current self-built projects of liliang Diamond include the construction of liliang Diamond Phase II and cultivated diamond smart factory with an investment of more than 80 million yuan, and the construction of Shangqiu liliang Diamond Technology Center and cultivated diamond smart factory with an investment of nearly 50 million yuan. project.
On June 30, liliang Diamond issued a fixed increase announcement, planning to raise 4 billion yuan to expand production. It plans to buy about 1,800 presses, 1,500 of which will be used to cultivate diamonds.
In 2025, the size of China’s diamond market will increase to 29.5 billion yuan.
The prosperity of the lab-grown diamond industry stems from the growing acceptance of such lab-grown diamonds in the downstream consumer market.
In 2018, the U.S. Federal Trade Commission (FTC) classified both natural and artificial diamonds as diamonds. In 2020, GIA, the Gemological Institute of America, announced that it will issue a new version of the identification certificate for cultivated diamonds, which will be graded according to the 4C method of natural diamonds. In addition, the international authoritative diamond appraisal agencies IGI and HRD have also successively launched grading and testing services for cultivated diamonds.
In the international market, large diamond jewelry retailer SIGNET, top brand retailer De Beers, and fast fashion brand Swarovski are all actively deploying and cultivating the diamond industry. However, in China, while mainstream jewelry companies have established diamond sub-brands, some pure diamond brands have also begun to emerge. In addition, industrial and commercial registration data show that nearly 600 artificial diamond-related enterprises have been added in my country this year.
Bain & Company predicts that the global diamond cultivation market will grow from 16.7 billion yuan in 2020 to 36.8 billion yuan in 2025. Among them, the scale of China’s diamond planting market will increase from 8.3 billion yuan to 29.5 billion yuan, and the market penetration rate will rapidly increase to 13.8%.
Listed companies are actively deploying and cultivating diamond-related industries.
The popularity of the downstream market has made the upstream manufacturers’ cultivation of rough diamonds in short supply.
According to the calculations of Zheshang Securities, it is expected that the global demand for rough stones will increase from 14.3 billion yuan to 31.3 billion yuan in 2022-2025, with an average annual compound growth rate of 30%. Due to equipment and technology constraints, as well as the time it takes to grow rough diamonds and scale up production, demand within the industry is expected to exceed supply by 2025.
This makes the relevant listed companies see the bright prospects of cultivated diamonds, and have invested in the expansion of related industries.
The Yellow River Cyclone plans to invest a total of 5 billion yuan to expand the production of cultivated diamonds, and to accelerate the research and development of CVD methods to cultivate large single crystals and third-generation semiconductor applications.
According to public information, Sifangda acquired Tianxuan Semiconductor, the main operator of the diamond business, in May this year, holding a total of 53.2% of the shares. At the same time, the first-phase project of the company’s 100,000-carat CVD diamond production line has entered the stage of commissioning and operation, and the construction of the second-phase project of the 100,000-carat diamond production line has started.