With the artificial diamond production technology and production technology matures, the production cost of artificial diamonds dropped sharply while the grade continues to increase, the scope of the application of artificial diamond will also be more extensive, with the emerging industry is expected to further expand the application in the field of The longer term expected in the future will maintain a high growth rate. According to industry association data analysis, the market demand for synthetic diamond in China in the next few years can still be maintained at an average annual compound growth of over 15%. However, in recent years, with the rapid development of the industry and the intensification of competition in the industry, the enterprises in China's super-hard materials and products have also accumulated some risk factors for their future development.

 

(1) R & D and promotion of new products risk

 

        Compared with other pillar industries in the national economy, the super-hard material industry has the characteristics of small-scale industry, high investment in research and development, and high risk of investment recovery. Therefore, with fewer specialized research institutions and low technology conversion rates in China, from product development to production equipment Of the research and development, until the production of products to promote the need for enterprises to bear their own more capital and personnel inputs, which inevitably bring a higher risk.

 

(2) market competition intensified

 

        Due to the size of the industry and the speed of the development of the industry, enterprises in the industry are facing a more fierce competitive environment. With the gradual increase in the scale of investment in the industry, along with the cost advantage of large-scale production will inevitably lead to the decline in product prices, and ultimately reduce the profitability of the enterprise space. Although the competition will eventually broaden the application areas and application scale of superhard materials, the fierce competition will still bring greater risks to the enterprises.

 

(3) Macroeconomic impact

 

        Affected by the macroeconomic impact, the slowdown in the construction of basic investment has indirectly affected the sales of super-hard materials through the impact on super-hard materials products. In addition, the national financial policies are tight and the financing pressure on corporate loans has increased. In particular, financing difficulties for small and medium-sized enterprises A large number of downstream customers, small and medium enterprises are affected, directly inhibiting the company's product demand; inflation factor, although in the short term corporate earnings have a positive impact, but in the long run will undermine the profitability of enterprises. Three factors directly or indirectly affect the development of the company's super-hard materials industry. In addition, as a big export country of super-hard materials and products, the continuous economic downturn in Europe and the United States and the trade protectionism measures adopted by them have also had a negative impact on the export sales of super-hard materials and their products.