Yu Diamond: Seized $70.06 million diamond contract

Abstract May 18 afternoon, Yu diamond announcement that the company and the Shenzhen Kangtai Spirit Jewelry Co., Ltd. (hereinafter referred to as "demand-side") signed a "purchase and sales contracts", the contract amount of $ 70.56 million. Shenzhen Kangtai Shengshi Jewelry has...
On the afternoon of May 18, Yu Diamond announced that the company signed a "purchase and sales contract" with Shenzhen Kangtai Shengshi Jewelry Co., Ltd. (hereinafter referred to as "demand side"), with a contract value of 70.56 million US dollars.

Shenzhen Kangtai Shengshi Jewelry Co., Ltd. specializes in the design, wholesale and retail of jewellery; purchase and sale of natural or artificial diamond abrasives. According to the contract, Yu Diamond provided Huajing Diamond (Hua Diamond Type B) to the demander with a contractual amount of USD 70.06 million and a contractual performance period of 2 years (June 2015 to May 2017). The two parties promised that during the execution of the contract, the supplier guarantees that the product meets the demand side requirements in terms of quality and performance, and prioritizes the supply side in terms of supply; the purchaser guarantees priority in purchasing, using the supplier's products, and surrounding the supplier's products. Professional design and promotion.

Yu Diamond said that the signing and implementation of the contract is conducive to the integration of resources between the two parties, forming complementary advantages in technology, products and channel resources, accelerating the promotion of gem-quality large single crystals in the consumer field, and enhancing the market competitiveness of both partners. Profitability level. The contract amount was US$70.06 million, which was approximately RMB 4,397,734,000, accounting for 67.59% of the company's audited operating income in 2014. The execution of the contract is expected to increase the company's operating income and operating profit in 2015, 2016 and 2017.

Diamond large single crystal officially became the new engine of business growth in 2015. At present, the company has been able to synthesize high-quality diamond large single crystals of 8mm or more. It is the only company that has mastered the six-sided press batch synthesis of diamond large single crystal technology of more than 3mm. In 2014, the contribution rate of large single crystal sales and profits was about 10%, while the sales revenue and net profit in the first quarter of 2015 were 157 million yuan and 21 million yuan respectively, with year-on-year growth rates of 25% and 31%, respectively. The profit contribution rate has reached 25%, and the gross profit margin is around 60%, significantly exceeding the average diamond powder. It is expected that the large single crystal volume will increase in 2015.

This order can be regarded as a clear sign that the company's gem-quality single crystal has successfully entered the blue ocean of downstream consumption. The future of gem-quality single crystal faces huge market space. The jewellery market space is calculated on the scale of 100 billion yuan, and the artificial diamond is only emerging in the consumer field. The natural gemstone replacement demand space and the artificial gems new demand space are limitless. Once the downstream users form a path dependence effect, the company's order is expected. The increase is expected to be expected to exceed expectations.

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