GEMSTONE INFORMATION

Domestic trends

Shanghai Diamond Exchange signed a contract with the Belgian Diamond Exchange Federation

The Shanghai Diamond Exchange and the Belgian Diamond Exchange Federation have frequent trade exchanges and close cooperative relationships. Through this signing, the two sides will start comprehensive cooperation. The Shanghai Diamond Exchange will promote the participation of Belgian enterprises in the CIIE and promote the Belgian diamond brand and services in China. Both sides will establish a long-term and effective exchange and visit mechanism, promote personnel exchanges and diamond trade flows, share data and market information, strengthen cooperation in the technical field, promote comprehensive and in-depth cooperation in the diamond industry between China and Belgium, and promote the stable and healthy development of the global diamond industry chain.

Oriental Pearl TV Tower plans to transfer part of Lao Feng Xiang's equity for no more than 500 million yuan
On July 11, Oriental Pearl TV Tower New Media Co., Ltd. (hereinafter referred to as "Oriental Pearl TV Tower") intended to transfer part of the equity of Shanghai Lao Feng Xiang Co., Ltd. held by Gongmei Fund with its own funds of no more than 500 million yuan.

Oriental Pearl TV Tower said that this investment is conducive to further realizing the combination of brands and resources between the two sides, further exploring multi field, multi-level and multi form cooperation in digital, cultural ecology and joint operation, optimizing the layout of consumer business, and driving the flow and consumption realization.

The expansion pace of Mingpai jewelry stores continues to slow down
Recently, Mingpai Jewelry answered questions about the composition of gold products, store expansion, and future development during investor research activities.
In terms of gold product composition, the company mainly focuses on products such as Heijia Gold, "3D" hard gold, "5G" gold, and "You" series, supplemented by regular products.

In terms of store expansion, the stores are mainly distributed in the Yangtze River Delta, Beijing, Hubei, Liaoning and other regions. In the first half of the year, the number of stores maintained stable growth. In the future, we will fully evaluate the market development direction, implement reasonable channel development strategies, actively promote regional pilot projects for optimizing franchise management, and accelerate the pace of store expansion.

In terms of future development, the focus will be on strengthening the competitive advantage of the product end, adjusting and expanding franchise channels in a timely manner, innovating marketing methods, and increasing marketing efforts.

Earnings of Emperor Watch&Jewellery in the first half of the year
Recently, Emperor Watch&Jewellery released a profit forecast. The company expects to obtain a net profit of no less than HK $180 million within six months as of June 30, 2023, up 109.3% from HK $86 million in the same period of 2022. The company stated that the improvement in profitability is mainly due to the comprehensive recovery of the luxury goods consumer market.

Retail value of Chow Tai Fook increased by 29.4% year-on-year in the first fiscal quarter

Recently, the company released its main operating data for the quarter ended June 30th, with a year-on-year increase of 29.4% in retail value during the reporting period.

The retail value in the mainland market increased by 25.2% year-on-year, the franchise retail value increased by 34.8% year-on-year, and the same store sales increased by 8.5% year-on-year. From a product perspective, sales of jewelry inlays, platinum, and K-gold jewelry in the same store decreased by 4.1% year-on-year; The sales of gold jewelry in the same store increased by 30.3% year-on-year.

The retail value of the Hong Kong Special Administrative Region, Macau Special Administrative Region and other markets increased by 64% year-on-year, and the same store sales increased significantly by 64.2% year-on-year. Among them, the Hong Kong Special Administrative Region increased by 64.9% year-on-year, and the Macau Special Administrative Region increased by 62.1% year-on-year. From a product perspective, the sales of jewelry inlays, platinum, and K-gold jewelry in the same store increased by 16.9% year-on-year, while the sales of gold jewelry in the same store increased by 101.1% year-on-year.

In terms of store expansion, the company implemented a strategy of improving store quality and efficiency. During the reporting period, the company had a net opening of 85 stores, including 95 in mainland China. The speed of store expansion slowed down compared to the previous quarter.

International Trends

Global diamond production reached a new high in 2022
According to statistics from the Kimberley Process, the global output of rough diamonds in 2022 increased by 24% year-on-year to $16.02 billion, setting a new high since the Kimberley Process began releasing data.

According to production, global rough diamond production in 2022 decreased by 1% year-on-year to 118 million carats, with Tanzania and Lesotho becoming the countries with faster diamond production growth, with the former's output value increasing by 358% year-on-year to 110 million US dollars.

Tiffany bought more than 10 carats of rare Emerald

The jewelry brand Tiffany recently bought a Emerald weighing more than 10 carats from the Muzo mining area in Colombia, and named it "Tiffany Muzo Emerald" to demonstrate the brand's unremitting spirit in exploring extraordinary gemstones for a long time.

This Emerald not only has no cracks, but also contains almost no inclusions. It will be unveiled simultaneously with the autumn works of "Out of the Blue", the "2023 Blue Book" senior jewelry series.

Louis Vuitton (LV) officially lays out its presence in the high-end watch industry

Louis Vuitton (LV, similarly hereinafter) has recently released two new precision steel versions of the "Tambour" watch, priced five times higher than the previous product, marking the brand's official layout in the high-end watch field. According to the plan, Louis Vuitton will withdraw 80% of its current watch models from the market and launch a new watch model in September this year.

Morelato's revenue in the previous fiscal year was nearly 400 million euros

Recently, Morelato, the Italian jewelry and watch group, released its main operating data for the fiscal year ended February 23, 2023, with revenue increasing by 17% year-on-year to 390 million euros.

In terms of the market, overseas market revenue accounts for 71% of the total revenue, with France accounting for 14%, Germany accounting for 53%, and other markets accounting for 4%.

In terms of business lines, jewelry revenue accounts for 62%, and watch and strap revenue accounts for 38%.

The sluggish market demand caused the sales of De Beers to decline again

Recently, due to the rare signs of recovery in the diamond market, De Beers once again significantly reduced the prices of some rough diamonds at the fair.

The price reduction this time is mainly aimed at rough diamonds with a weight of 0.75 carats or more, especially those with a weight of 2 carats or more, with a price reduction range of 5-15%.