The company issued a statement on the source of the company’s equity incentive activities on March and August to investors.
With regard to the source of profits, Sinomach Precision Industry Co.Ltd(002046) said that the company’s profit contribution was mainly in military bearings and superhard material products. In terms of military bearings, the current orders are full and still maintain a good development trend; In terms of superhard material products, driven by the demand growth of the downstream semiconductor industry, it achieved rapid growth in 2021. The field of cultivating diamonds is a new profit growth point of the company. There are two businesses involved. One is a six sided top press for synthesizing diamonds (cultivating diamonds) and the other is a cultivated diamond blank manufactured by MPCVD. At present, there are more than 100 MPCVD equipment, of which more than 10 are used for R & D and more than 90 are used for production. Of the more than 90 equipment used for production, more than 30 are currently under commissioning.
For the reason why diamonds are not synthesized and cultivated by high temperature and high pressure method, Sinomach Precision Industry Co.Ltd(002046) responded that high temperature and high pressure method and MPCVD method are two different process technologies. Although the company produces six sided top press equipment, it does not master the process technology of producing and cultivating diamonds by high temperature and high pressure method. Therefore, the company adopts MPCVD route to cultivate diamonds.
Wang Guiqin, precious metal investment analyst of China investment and financing network, told the reporter of Securities Daily: “high pressure and high temperature process (HPHT) and chemical vapor deposition (CVD) At present, it is the two main methods to produce and cultivate diamonds. The finished products produced by both methods have the same optical, physical and chemical properties as natural diamonds. The main difference between the two is that CVD is suitable for the production of cultivated diamond blanks of more than 3.5 carats. After grinding and cutting, the blank of this weight is exactly a naked diamond of more than 1 carat. It is more and more popular for the production of gem grade synthetic diamonds for jewelry. HPHT high-temperature and high-pressure principle: cultivated diamonds of all particle sizes are suitable for growth. At present, the limitation is that the growth bin of the six sided top press is generally small, the output of a single press is extremely limited and the productivity is low. “
Regarding the production capacity of the hexahedral top press and the factors restricting the production capacity of the hexahedral top press, Sinomach Precision Industry Co.Ltd(002046) said that the annual production capacity of the company’s press in 2021 was about 200300. According to Sinomach Precision Industry Co.Ltd(002046) the previous disclosure on the investor interaction platform, its corresponding business income was 200300 million yuan, and the gross profit was about 10% Sinomach Precision Industry Co.Ltd(002046) said that at present, the factor restricting the expansion of production capacity is the limited supply of main components for the production of hexahedral jacking press.
In addition, regarding the issue of equity incentive, Sinomach Precision Industry Co.Ltd(002046) responded that the company’s equity incentive is in the approval process, and the specific approval completion time is uncertain.
