Cultivating diamonds in 2022 is favored

The prospects for cultivating diamonds+single crystals will continue to increase in 2022. We believe that the sharp increase in the company's profitability mainly benefits from product structure improvements driven by an increase in the share of the diamond cultivation business, and the rise in average product prices driven by the boom in the diamond and diamond single crystal industry. Entering 2022, we continue to be optimistic about the prospects for growing diamonds and diamond single crystals. In terms of cultivating diamonds, under the current geographical conflict, European and American countries have imposed sanctions on Russian natural diamonds or caused prices to rise due to insufficient supply. Since there is a certain degree of anchoring between the price of cultivated diamonds and natural diamonds, the increase in natural diamond prices is expected to bring good support and support to the price of cultivated diamonds; at the same time, the decline in the supply of natural diamonds is also expected to drive part of the demand to cultivate diamonds, thus driving the accelerated penetration of cultivated diamonds. In terms of single diamond crystals, since the industry's new six-sided top press will still be mainly used to cultivate diamonds, it is expected that industrial diamonds will still be in short supply, and product prices are expected to remain high in 2022.