On April 13, Yu Diamond announced that the company achieved operating income of 1,532,773,223.28 yuan in 2017, an increase of 58.93%; net profit attributable to shareholders of the parent company was 230,945,985.08 yuan, an increase of 67.88%. Benefiting from the recovery of single crystal diamond demand, the prices of some products have risen steadily, and the economic benefits of Henan Diamond have been steadily improved, and the profitability and sustainable development capabilities have been further enhanced. A number of key tasks provide strong support for high-quality development. 1. Orderly advance the construction of gem-quality diamond projects. Accelerating project construction is an effective means for Henan Diamond to deepen the main business of superhard materials, optimize business structure, and improve quality and efficiency. According to the production target and business plan, Yu Diamond takes the opportunity of vigorously promoting the construction of gem-quality diamond projects, strengthens the whole process management of investment projects, and strictly promotes project construction. At present, the raised funds have invested 1.309 billion yuan, the first phase of the project has been completed, and the first phase of the installation has been put in place; the construction of some of the workshops in the second phase has been completed. After the project is put into production, Yu Diamond's products will be extended from industrial use to light luxury consumer goods, and the downstream application space will be opened. 2. Taking the opportunity of relocation, accelerating industrial integration, making full use of the superior resources of all parties, accelerating technological innovation, and transforming through industry. Upgrade and intelligent transformation to promote the optimization and integration of the new materials industry and rapid and healthy development. With the opportunity of relocation, Yu Diamond settled in Zhengzhou New Material Industrial Park. In July 2017, it entered the largest industrial base of diamond products in the country, and has now formed Zhengzhou, Jiaozuo, Shangqiu and Luoyang industrialization bases. In the field of super-hard materials, an industrial chain covering a series of products such as graphite ore, raw and auxiliary materials, synthetic diamonds and diamond micro-powder has been formed. 3. Expanding the gem-quality diamond market and strengthening the consumption-side layout. Yu Diamond attaches great importance to the expansion of the application of large-crystal single-crystal diamond products, and expands into the emerging industries and consumption-side on the basis of deep-cultivation of traditional industrial applications, fully exploiting the value of large-crystal single-crystal diamond products, based on The gem-quality diamond project has been steadily put into production, actively exploring the "Internet + Diamond Jewelry Open Platform" business model, and through the introduction of design teams and brands through self-created, strategic cooperation and mergers and acquisitions, accelerate the comprehensiveness of the company's products in the consumer market. layout. On January 21, 2017, Huajing Brand – “Mutika” Jewelry Experience Center opened in Zhengzhou High-tech Enterprise Accelerator Industrial Park; subsequently, it was established in Zhengdong New District of Zhengzhou with Ai Ruier Jewelry (formerly Dali Jewelry). Brand experience store. At the same time, in order to better promote brand building, Yu Diamond set up a "brand center" in the Twin Towers of Zhengzhou Landmark Greenland Center, and established a new generation of fashionable luxury jewellery brand B&R, holding hands with Shenzhen Jewelry Chief Designers Association Du Ban, etc., to give full play to the resources of all parties. Advantages, help foster the development of the diamond industry. 4. Intensify R&D and technical cooperation, and tap the new kinetic energy of the industry. Yu Diamond has implemented the innovation-driven development strategy in depth, focusing on improving product quality, focusing on the research and technology accumulation of “diamond basic performance and functional application”, and continuously increasing R&D investment. Cooperation with technology.
a. On December 20, 2017, Yu Diamond cooperated with the Optoelectronics Research Institute of the Chinese Academy of Sciences and signed a cooperation framework agreement. Through the joint construction of the “Huajing Diamond Laser Application Engineering Center”, the resources were integrated to form the advantages of technology, products and channel resources. Complementing, expanding and enhancing the application of diamond materials in the fields of optics, semiconductors and new energy.
b. Yu Diamond has established production, technology research and development, talent training cooperation relationship with Jilin University, Zhengzhou University and Zhengzhou Aviation Industry Management College, and hired many industry experts to serve as senior consultants. Through cooperation, promote the industrialization of scientific and technological achievements and further enhance The company's core competitiveness.
c. By the end of 2017, Yu Diamond has obtained 312 authorized patents, including 34 invention patents, and 50 new authorized patents in 2017, including 9 invention patents. The two national standards of “Superhard Abrasive Particle Size Inspection” and “Super Hard Abrasive Impact Toughness Determination”, which were developed by Yu Diamond, were implemented on May 1, 2017. 5. Strengthening objectives and performance management to enhance the company's management and control capabilities . Yu Diamond has continuously optimized internal control, and has promoted goal-oriented planning control, planning operations, and processes through regular and irregular meetings and general manager's office meetings. Performance management of control, management innovation, and efficiency monitoring, based on the operation model of "business unit + administrative management and service system", implements the target responsibility operation mechanism for each business unit. The company has organized and revised the "Performance Supervision System", "Performance Management Procedures" and "Financial Budget Implementation Rules" and other documents, improved the seal management regulations, and strengthened the standardized management of business cost control and financial planning. At the same time, by inviting experts from the industry to give special lectures, we will carry out multi-angle and multi-dimensional training for the actual needs of employees at all levels, and establish a more precise organization management and talent management system. On the other hand, improve the internal control system of investment projects and optimize the operation process, promote technological upgrading and lean management, and strengthen the technical skills of production system technical management team and quality management team on the basis of strengthening the upgrading and improvement of numerical control equipment and improving the work flow. And the training level of management level, holding a system skill contest, to stimulate employee kinetic energy. 6. Strengthen the construction of party organizations and create a harmonious corporate culture. Enterprise organization and cultural construction are important contents for the survival and development of the company. Yu Diamond integrates party building organically into the company's various management and corporate culture shaping, solidly carries out party organization construction, gives full play to the party's leading role in enterprise development, continues to inherit Huajing corporate culture, and promotes the company's sustained and healthy coordinated development. In June 2017, after the company’s party branch research and report to the higher party working committee approved, the party branch of the company’s party branch was adjusted from the original two party branches to ten; through the organization of the study of the spirit of the 19th National Congress, etc. A number of special party class trainings, condense ideological consensus, promote the spirit of labor model and craftsmanship, promote the "two studies and one work" study and education, organize charitable donations and employee walks, and integrate the "one carat loyalty is greater than unlimited" creed. In the activities of knowledge and skill training, quality development training, etc., enhance the team awareness and team cohesion of employees. Promoting the strategic layout of the new materials industry and cultivating diamonds 1. Increasing the research and application of diamonds New materials are the foundation and precursor of the new technological revolution. They are emerging industries that provide efficient, high-precision, energy-saving and environmentally friendly materials and tools for all areas of the national economy. The development of modern industry and the advancement of high technology are the key national development industries during the 13th Five-Year Plan period. With excellent mechanical, thermal, optical, acoustic and electrical properties, synthetic diamond enjoys the praise of "king of materials" and is a key product of China's strategic emerging industries. Under the background of China's economic transformation and upgrading, with the deepening of the supply-side structural reform, a new round of scientific and technological revolution and industrial transformation has formed a historic convergence with China's accelerated transformation of economic development mode, helping China implement the innovation-driven strategy and comprehensively promote it. Made in China 2025", it provides a great opportunity for China to realize the transformation of superhard materials and products from big countries to powerful countries. According to the "China Abrasives Industry Yearbook 2017", the output of synthetic diamonds in 2016 was 13.6 billion carats, down 12.98% from the same period of last year, mainly due to the industrial transformation and upgrading, the production of sheet-like single crystals for gem-quality single crystals and tools continued to increase. The unit price of diamond has increased, and the effect of structural adjustment has initially appeared. In the steady development of the super-hard materials industry, the super-hard materials industry actively grasps the two lifelines of innovation and quality, accelerates transformation and upgrading, and the unique product advantages of each enterprise are more obvious. The product quality foundation is more stable, the industry division of labor is further refined, and super hard. Materials products are further moving towards precision machining. At the same time, due to innovation drive and consumption upgrade, the application field of new materials is expanding, the service transformation trend is obvious, the pace of integration and reorganization of new materials is accelerating, and super-hard materials are developing towards composites and products.
In order to implement the "13th Five-Year Plan for the Development of Strategic Emerging Industries in the Country", synthetic diamond, as the basic material for the development of the national economy, was included in the "Guidance Catalogue for Key Products and Services for Strategic Emerging Industries." In June 2016, the “Zhengzhou City National Economic and Social Development Thirteenth Five-Year Plan Outline” issued by the Zhengzhou Municipal People’s Government pointed out that the informatization and industrial development should be accelerated, and efforts should be made to foster the development of high-tech industries and emerging industries. Strive to develop high-quality diamond, cubic boron nitride, grinding tools, precision tools and other products industry by 2020, promote the construction of new material industry base in Fuyang City, and build the world's "diamond capital". The output value of new materials industry will strive to reach 500. 100 million yuan. On October 16, 2017 and January 19, 2018, the People's Government of Henan Province and Zhengzhou City respectively issued the “Henan Province New Material Industry Transformation and Upgrading Action Plan (2017-2020)” and “Zhengzhou New Material Industry Transformation and Upgrading Action”. Plan (2017~2020), proposes to accelerate the promotion of the super-hard material industry base with Zhengzhou New Material Industrial Park as the core, and rely on Huajing and other enterprises to accelerate the industrialization of gem-quality large single crystal; relying on Huajing micro-drill Such enterprises will increase the production scale of nano-scale micro-powder and comprehensively promote the development of super-hard materials in the direction of high speed, high efficiency and green. As a national key product of strategic emerging industries, and as a key area in the “New Material Industry Transformation and Upgrading Action Plan” in Henan Province and Zhengzhou City, synthetic diamond is bound to usher in a breakthrough development. In 2018, Yu Diamond will increase the research on the application of diamond functional properties, focusing on the research and technical reserves of diamond in acoustic and optoelectronic heat. The company cooperates with industry experts and strategic cooperative research institutes such as the Optoelectronics Research Institute of the Chinese Academy of Sciences, Jilin University, Zhengzhou University, etc., focusing on creating superior product quality through technological innovation and management improvement, digging deep into the application potential of new materials, and realizing the synergy of technology, talents and resources. Complementing, accelerating the transformation of scientific research results, promoting the industrialization of diamond in new energy fields such as superconducting thin films, semiconductors and capacitors, exploring the application of nano-diamond film cutters, and cultivating new profit growth points. 2. Improve the cultivation of diamond consumption . The emergence of diamonds has brought about the reconstruction of diamond value. In 2015, the global sales of diamond jewelry reached US$79 billion. As the world's second largest diamond consumer, the total retail sales of diamond jewelry in China is about 11.85 billion. The US dollar accounts for 15% of the total global diamond consumption. According to the statistics of China Jewelry and Jade Jewelry Industry Association, the total sales volume of China's jewelry industry continues to grow at a high speed. By 2020, the annual sales volume of the industry is expected to reach 800 billion yuan. Each segment has huge market space; with the development of China's economy The rise of the "Millennial Generation" young consumer groups and the change of consumption concept, the diamond jewelry consumption culture has gradually become an important part of the jewelry market, and is being accepted by more and more consumers. The consumption of diamond jewelry has shown rapid growth in China. trend. Under the overall trend of consumption upgrading, fashion consumption needs to be redefined. Consumers change from "promotion of self" to "pleasure of self", from "showing self" to "personality display", and fashion consumption presents individuality, diversity and emotion ( Such as life experience needs such as wisdom, technology, green, environmental protection, etc., personalized products and intelligent jewelry and other consumption has shown rapid development. At the same time, with the introduction of national grading standards, testing technology follow-up, and trade openness to provide a more standardized platform for synthetic diamonds, the jewellery industry is also looking at and accepting synthetic diamonds in a more inclusive and rational manner, cultivating diamonds with Green, pure, technology, and cost-effective will usher in a broader market space.
In 2018, Yu Diamond will improve the layout of diamond consumption, actively grasp the good development opportunities of industrial upgrading and consumption upgrading, and cultivate diamonds as the core and precise positioning to increase brand matrix construction, product design and development, multi-channel business development, etc. The business model focuses on improving consumer awareness of the cultivation of diamonds and corporate brand awareness. While improving the endogenous growth of the business, we will make full use of the capital market platform, accelerate the industrial layout through various investment methods such as acquisition and restructuring, industrial funds, and actively explore the fashion consumption diamond jewelry brands and cultural creativity with certain scale and brand influence at home and abroad. Industry and design and channel resources, acquisition of fashion industry consumption midstream, layout consumption downstream, mining channels and target value. Through endogenous accumulation and extensional development, deep integration and coordinated development, comprehensively cultivate the field of diamond consumption, provide consumers with fashion to cultivate diamond consumption and product experience, create high-competitive products with national brand imprint and fashion cultivation diamond ecosystem .


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