Yu Diamond: The new expedition officially has a large space for growth

On March 25, 2015, the GEM Issue Review Committee reviewed the company's non-public offering of shares on March 25, 2015. The company's application for non-public offering of shares was approved.

Comments: Actively extending to the downstream of the industrial chain, performance is expected to increase significantly. The company's non-public offering plan is to issue 70 million shares through non-public issuance of shares, and the total amount of funds raised is 408 million yuan. The funds raised are mainly used for investment construction of “annual production of 350 million meters of micron diamond line expansion project”.

The company's production of micron diamond line project is mainly due to the limited production capacity of the company at this stage, which can not meet the rapidly growing market demand of customers. The company's micro-diamond line products are in short supply. After the project is put into production, the capacity bottleneck of the company's micro-diamond line will be solved. Under the production capacity improvement, the company can better meet the customer's demand for micro-diamond wire products, so that the market share will also gradually increase, and the profitability will also be improved. Will be improved. The construction period of the project is 20 months. After the project is put into production, the annual sales income of the normal year can be 164 million yuan, and the investment recovery period is 5.4 years.

There is huge room for growth in downstream demand for micron diamond lines. Micron diamond wire is widely used in the field of silicon-based battery slicing, silicon rod cutting, and silicon rod opening in the solar photovoltaic industry. In addition, it is also widely used in the sapphire industry, mainly for the cutting of LED substrate sheets, epitaxial wafers, and the like. There is huge room for growth in downstream demand.

On the one hand, demand for solar photovoltaic wafers has grown strongly. According to industry experience, the cost per watt of solar photovoltaic wafer cutting requires about 0.5 meters of micron diamond wire. From 2015 to 2016, the annual demand for micronized diamond wire in the global solar photovoltaic industry will be 30 billion meters and 50 billion meters respectively. It is 7.5 billion meters and 15 billion meters; on the other hand, the sapphire industry is in the blue ocean with broad prospects.

It is estimated that each 2 inch LED sapphire underlay needs to consume about 7 meters of micron diamond wire. In 2015, the global LED sapphire underlay requires about 1.33 billion meters of micron diamond wire, and China has 470 million meters. According to company forecasts, domestic demand for micron diamond lines in 2015 is expected to reach 7.97 billion meters.

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