Core Viewpoint - The controlling shareholder of Power Diamond, Li Aizhen, plans to reduce her stake by up to 7.63 million shares, representing 3% of the total share capital, due to personal financial needs [1][2]. Shareholding Structure - Li Aizhen currently holds 36 million shares, accounting for 14.15% of Power Diamond, making her the second-largest shareholder [1]. - Chairman Shao Zengming holds approximately 33.64% of the company, with 87.55 million shares [2]. Recent Stock Performance - Power Diamond's stock price increased by 52.39% over nine trading days from October 9 to October 21, prior to the announcement of the share reduction [2]. - Despite a recent adjustment with a cumulative decline of 10.22% in the last two trading days, the company's market capitalization remains at 11.27 billion [4]. Financial Performance - For the first half of 2025, Power Diamond reported a revenue of 242 million, a year-on-year decrease of 36.43% [5]. - The net profit attributable to shareholders was 25.91 million, down 82.52% year-on-year, while the net profit excluding non-recurring items was 4.70 million, a decline of 95.84% [5]. Recent Achievements - On October 18, Power Diamond announced the successful cultivation of the world's largest diamond, weighing 156.47 carats, setting a new record [4].

Core Viewpoint - The controlling shareholder of Power Diamond, Li Aizhen, plans to reduce her stake by up to 7.63 million shares, representing 3% of the total share capital, due to personal financial needs [1][2]. Group 1: Shareholder Actions - Li Aizhen intends to sell shares within three months, with a maximum of 1% through centralized bidding and 2% through block trading [1]. - Currently, Li Aizhen holds 36 million shares, accounting for 14.15% of the company, making her the second-largest shareholder [1][2]. - Prior to this reduction, neither Li Aizhen nor the chairman, Shao Zengming, had sold any shares this year [2]. Group 2: Stock Performance - Power Diamond's stock price increased by 52.39% over nine trading days from October 9 to October 21, which may have influenced the decision to sell [2]. - Despite a recent adjustment with a cumulative decline of 10.22% in the last two trading days, the company's market capitalization remains at 11.27 billion [4]. Group 3: Company Achievements and Financial Performance - Power Diamond is recognized as a leading supplier of superhard materials in China, with advanced capabilities in diamond products [4]. - The company recently announced the successful cultivation of the world's largest diamond, weighing 156.47 carats, which set a new record [4]. - However, the company's financial performance has been disappointing, with a 36.43% year-on-year decline in revenue to 242 million and an 82.52% drop in net profit to 25.91 million for the first half of 2025 [5].

Core Insights - The company Henan Power Diamond Co., Ltd. has achieved a significant milestone by producing a 156.47-carat lab-grown diamond, which is now the largest single crystal diamond in the world, surpassing the previous record of 150.42 carats set by Meylor Global in 2022 [1][3] - This achievement marks a transition for the diamond industry in Cècheng County from decorative applications to functional breakthroughs, indicating a shift in focus towards advanced technology and applications [1][3] Company Developments - The production facility utilizes an intelligent manufacturing system that can consistently produce lab-grown diamonds ranging from 10 to 50 carats, while also achieving breakthroughs in larger single crystal production [1] - The company has developed a diamond heat sink technology that addresses the thermal management challenges faced by high-performance chips, with diamond's thermal conductivity being five times that of copper and over ten times that of silicon [2][3] - Power Diamond has successfully filled several domestic technology gaps and broken foreign monopolies in the field of special-shaped diamond technology for IC chip processing, contributing to its recognition in the industry [3] Industry Context - Cècheng County is home to 223 superhard material enterprises, with diamond micro-powder production and export accounting for 90% of the national total, and lab-grown diamond production representing 50% of the national output [3] - The county is developing a comprehensive diamond industry chain, focusing on refining micro-powder, strengthening single crystal production, expanding product offerings, and enhancing brand visibility [3] - The strategic development of diamond industry parks aims to create a leading technological and brand-recognized industrial cluster, positioning Henan as a significant player in the global diamond market [3]