Core Viewpoint - The International Carbon Materials Conference showcased Hengsheng Energy's subsidiary Huamao Technology, highlighting its advancements in CVD diamond technology and its strategic positioning within the energy, environmental, and industrial sectors, marking a potential second growth curve for the company [1]. Group 1: Technology and Product Performance - Huamao Technology focuses on the MPCVD method for high-end diamond production, establishing a solid technological barrier with 17 core patents, achieving a functional diamond material yield rate exceeding 90% and cultivated diamond yield rate above 80%, significantly higher than industry averages [2]. - The company's core products, including cultivated diamonds and semiconductor heat sink plates, demonstrate competitive performance, with cultivated diamonds available in sizes from 7×7 to 20×20, achieving G color and VS-VS1 clarity, and heat sink plates exhibiting thermal conductivity of 2200W/mK for single crystal and 1200W/mK for polycrystalline [3]. Group 2: Capacity and Investment - Huamao Technology plans to invest approximately 1.2 billion yuan to establish a project for 2.6 million carats of wide bandgap semiconductor single crystal diamonds and cultivated diamonds, with 200 new MPCVD devices already in production, aiming to become a core supplier of CVD diamonds in China [4]. Group 3: Market Strategy and Trends - The company adopts a dual-driven strategy focusing on functional materials and consumer-grade diamonds, targeting high-value markets in thermal management and jewelry, with a significant opportunity in the growing demand for CVD diamonds in various high-tech applications [5]. - In the consumer diamond sector, Huamao Technology is launching themed products and experiences to attract younger consumers, with cultivated diamonds priced at 1/5 to 1/10 of natural diamonds, aligning with the environmental values of the Z generation [6]. - The global cultivated diamond market is projected to grow significantly, with a forecasted compound annual growth rate of 49% for China's cultivated diamond exports from 2026 to 2030, and the diamond thermal management market expected to expand from $0.5 billion to $15.24 billion by 2030, indicating substantial growth potential [7].

Core Viewpoint - Guangdong Chao Hong Ji Industrial Co., Ltd. (Chao Hong Ji) has submitted an application for an "A+H" listing on the Hong Kong Stock Exchange, with CITIC Securities as the sole sponsor, amidst a rising trend of gold-related IPOs in Hong Kong [1][15]. Company Overview - Chao Hong Ji, founded in 1997 by the Liao father-son duo, has grown from a self-operated gold shop in a department store to a well-known chain with over 1,500 stores [1][5]. - The company was the first fashion jewelry company to be listed on the Shenzhen Stock Exchange in 2010, with a current market capitalization exceeding 13 billion RMB [5]. Market Context - The Hong Kong Stock Exchange is experiencing a "golden wave," with companies like Lao Pu Gold seeing their market value increase significantly, and new entrants like Zhou Li Fu achieving a market cap of over 20 billion HKD shortly after listing [1][15]. - The demand for gold jewelry is shifting towards younger consumers, with a significant portion of retail sales coming from the 18 to 34 age group [16]. Financial Performance - Chao Hong Ji's revenue for 2022, 2023, and projected figures for 2024 and the first half of 2025 are 4.364 billion RMB, 5.837 billion RMB, 6.452 billion RMB, and 4.061 billion RMB respectively, indicating a compound annual growth rate of 21.6% [11]. - The company's core jewelry business contributes over 90% of total revenue, with reported revenues of 40.26 billion RMB, 54.35 billion RMB, and 61.55 billion RMB for the respective years [12]. Product Strategy - Chao Hong Ji has diversified its product offerings, including brands like CHJ Chao Hong Ji, Soufflé, CHJ·ZHEN, and Cëvol, focusing on both jewelry and handbags [6][10]. - The company emphasizes design and cultural heritage, having sponsored design competitions and launched a new brand, VENTI, to promote innovative jewelry designs [3][13]. Competitive Landscape - Despite the growth, Chao Hong Ji faces intense competition in the jewelry market, ranking ninth in overall sales and eighth in the gold jewelry segment among domestic brands [13]. - The company has been proactive in engaging with younger consumers through collaborations with popular IPs, having launched over 400 SKUs since 2010 [13]. Ownership Structure - The major shareholders include Liao Mu Zhi, Liao Chuang Bin, and Lin Jun Ping, collectively holding approximately 31.67% of the company, making them the largest shareholder group [14].

Market Overview - On May 27, the cultivated diamond sector opened strong, with Huanghe Xuanfeng hitting the daily limit up, and companies like Huifeng Diamond, Sifangda, and Liliang Diamond also experiencing significant gains [1] Company Developments - **ST Yazhen (603389.SS)**: Holds a 30% stake in Yazhen Diamond, which specializes in CVD large-size diamond manufacturing and sales, contributing to about 20% of the cultivated diamond sales market, with high-end quality diamonds accounting for over 50% [3] - **Huanghe Xuanfeng (600172.SS)**: Plans to increase its stake, leveraging 20 years of technical experience in cultivated diamonds, with a focus on R&D, production, and quality management [3] - **Sifangda (300179.SZ)**: Its subsidiary Tianxuan Semiconductor is involved in CVD technology R&D and has signed a 700 million yuan investment agreement to establish a production line for 700,000 carats of functional diamonds annually [3] - **Liliang Diamond (301071.SZ)**: A leading domestic producer of cultivated diamonds, currently producing high-grade diamonds in the range of 2-10 carats, with research indicating potential for 25-carat diamonds [4] Industry Events - On May 27, Huanghe Xuanfeng announced a joint venture with Bozhi Jinduan to develop diamond-based thermal materials for the semiconductor packaging sector [5] - Liliang Diamond is focusing on high-power heat sink projects, anticipating broad applications for diamonds in semiconductor cooling [5] - A $27 million agreement was signed between Akash and NxtGen for deploying diamond cooling servers in India [5] - Huawei and Nvidia are both exploring diamond cooling technologies, with Huawei filing a patent related to semiconductor devices involving diamond cooling [5] Industry Insights - Diamonds possess the highest known thermal conductivity, being 13 times that of silicon and 4-5 times that of copper and silver, making them a promising material for the semiconductor industry [6] - The diamond cooling technology can enhance GPU and CPU performance by three times, reduce temperatures by 60%, and lower energy consumption by 40%, potentially saving millions in cooling costs for data centers [6] - The diamond cooling market is projected to grow from $0.5 million in 2025 to $15.2 billion by 2030, with a compound annual growth rate of 214% [6] - In quantum computing, nitrogen-vacancy centers in diamonds are seen as a core material due to their ability to maintain quantum states at room temperature [6] - CVD-produced polycrystalline diamond heat sinks have a diameter of up to 2 inches and a thickness of 0.3 to 1 mm, offering superior thermal conductivity compared to traditional materials [6]