Since the second quarter of November 16 in Gelonghui, A shares have been on fire in the diamond concept sector, with an increase of 91.98% in less than four months. Some brokerages even shouted, "this is the next new energy vehicle." However, the heat of the plate then cooled rapidly, with a maximum pullback of more than 35%. Today, Power Diamond opened low and left low, and is now down more than 7%. Some media reported that Power Diamond made up overseas customers suspected of financial fraud, and Sifang fell by 2.54%.
Behind the sharp pullback in share prices, the third-quarter performance of some listed companies in the sector fell short of expectations. In the third quarter, the operating income of the Yellow River Cyclone fell 7.53% compared with the same period last year; the net profit of returning to the mother decreased by 36.54% compared with the same period last year; and the operating income of Zhongbing Hongjian decreased by 16.83% in the third quarter, down 10.21% from the previous year; net profit belonging to shareholders of listed companies fell 35.87% from the same period last year, and 57.28% from the previous year; Power Diamond not only showed a decline in revenue and net profit in the third quarter, but also showed a decline in gross profit margin.
According to Tianfeng Securities, India's imports of cultivated diamond rough diamonds reached $110 million in September, up 8 per cent from a year earlier and down 2 per cent from a month earlier. It is worth noting that India's imports of cultivated diamond rough diamonds have declined for three consecutive months in July, August and September this year.