Huanghe Whirlwind's Q3 financial report shows that in the first three quarters of this year, the company achieved operating revenue of RMB 1.808 billion and a net profit attributable to shareholders of the listed company of RMB 80.5138 million, with a profit increase of 98.84%, nearly doubling its profit.
As a leading domestic producer of cultivated diamonds and industrial diamonds, Huanghe Whirlwind has actively increased the scale of its cultivated diamond production and sales while also making breakthroughs in the market for silicon carbide cutting diamond wire saws.
Increased cultivated diamond production and sales | High-end products account for over 50% of the market
Since the beginning of this year, Huanghe Whirlwind has continuously adjusted the product structure of its superhard materials business in response to changes in market demand, focusing on increasing the production and sales of cultivated diamond products to improve the profitability of its main business. In response to the supply-demand imbalance caused by the decrease in production capacity of industrial diamond products, the company has targeted its research and development efforts and investment to increase product output, while also adopting a strategy of process adjustment and management measures to meet diverse customer demands and ensure market stability.
Prior to this, Huanghe Whirlwind continued to increase its investment in cultivated diamonds, successfully developing synthesis technology for high-grade colorless and colored cultivated diamonds ranging from 1 to 20 carats and smoothly carrying out industrialization. Sales of high-end cultivated diamond products have ranked among the top in the domestic market.
According to Huanghe Whirlwind's 2022 interim report, the high-temperature and high-pressure method of cultivating diamonds is positioned as mid-to-high-end, with colors concentrated in D-F color grades and high market recognition. Sales of high-end cultivated diamond products account for over 50% of the overall market. At the same time, the company is intensifying its research and development of large single crystals using CVD technology and promoting the development of third-generation semiconductors.
According to a deep report on the cultivated diamond industry released by Zheshang Securities in May 2021, global demand for cultivated diamond raw materials is expected to increase from RMB 9.3 billion in 2021 to RMB 31.3 billion between 2022 and 2025, with a compound annual growth rate of 35%. The penetration rate of cultivated diamond production in 2021 was approximately 7%, and the penetration rate of output value was 5%, approaching the inflection point of 10%. It is expected to replicate the high growth of new energy vehicles, and the golden investment period of cultivated diamonds has begun.
In recent years, natural diamond producers, cultivated diamond producers, fashion jewelry brands, and emerging jewelry brands worldwide have been actively developing the retail end of cultivated diamonds. Consumer awareness of cultivated diamonds is further increasing, and the advantages of low cost and environmentally friendly and low-carbon properties of cultivated diamonds in the jewelry industry are expected to continue to increase market share.
As one of the leading domestic producers of cultivated diamonds and industrial diamonds, Huanghe Whirlwind has successfully broken through the preparation technology of silicon carbide cutting diamond wire saws, achieved localization, led the industry trend of solid diamond wire saws replacing mortar cutting, further consolidated its leading technological advantages, and is expected to benefit first from downstream demand growth such as photovoltaics and semiconductors.
Breakthrough in Diamond Wire Saw R&D | Can Significantly Improve Customer Cutting Efficiency and Reduce Cutting Costs
As the first privately-owned listed company in China's superhard materials industry, in addition to cultivated diamonds, Huanghe Whirlwind's main products also include industrial diamonds, grinding wheels, cutting tools, drill bits, saw blades, and other products.
In the third quarter of this year, Huanghe Whirlwind also achieved new breakthroughs in other superhard material innovation and new product market development.
On September 27th, the Huanghe Group announced that Huanghe Whirlwind's R&D of a silicon carbide cutting-specific diamond wire saw has made a breakthrough. After being used by customers, the performance has fully reached and even exceeded the level of similar Japanese products. The cutting efficiency, cutting quality, and cutting stability are all significantly better than the current mortar cutting level. Silicon carbide wafers have high value and require low-risk and high-quality cutting, with extremely strict requirements for diamond wire quality. Currently, only a certain Japanese company can stably supply silicon carbide cutting wires on the market.
Huanghe Whirlwind stated that the company has leveraged its advantage of covering the entire industry chain to successfully develop a silicon carbide cutting-specific diamond wire saw. The product has uniform line diameter, good roundness of the wire, even distribution of abrasives, and high blade exposure. After being verified by customers, stable cutting data has been obtained, and the same quality of chips as mortar cutting has been obtained, which can significantly improve cutting efficiency and reduce production costs.