Sinomachine Seiko, an influential company in the industry, mainly sells six-sided pressing machines, the core equipment of cultivated diamonds.
Over 60% of the many domestic cultivated diamond manufacturers use its equipment, and it has a very high market share, making it the industry leader.
The six-sided ejector press may seem sophisticated, but it is actually a special “compression molding machine” that converts graphite into diamonds in a high-temperature and high-pressure environment.
Its working principle is to place graphite in a reaction chamber, apply pressure and heat from six directions, simulate the environment deep in the earth, and rearrange the carbon atoms in the graphite to form diamonds.
The pressure is huge, equivalent to pressing dozens of heavy-duty trucks on an area the size of a fingernail; the temperature is about 1,500 degrees, higher than the temperature for steelmaking.
The process of cultivating diamonds is like growing crops.
First prepare diamond seed crystals as “seeds”, then use high-purity graphite powder and metal catalysts as “nutrients”, and put them into the reaction chamber to seal.
After starting up, the hydraulic cylinder applies pressure and is heated by electricity. Under high temperature and high pressure, carbon atoms dissolve in the catalyst and attach to the seed crystal to grow.
It takes several days to a week for a one-carat diamond to grow, much faster than the formation time of natural diamonds.
Finally, the pressure and temperature are reduced, the rough diamonds are taken out, and after cutting and polishing, they become diamonds in jewelry stores.
Sinomachine Seiko has a long history. Its predecessors were Luoyang Bearing Research Institute and Zhengzhou Abrasives Grinding Research Institute. The two research institutes were established in 1958 and have accumulated profound technology.
The Shaft Research Institute is a national-level comprehensive research institution in China’s bearing industry and has made remarkable achievements in aerospace bearings and other fields; the Third Grinding Institute is a national-level comprehensive research institution in China’s superhard materials industry and has formulated most of the industry’s technical standards.
In 2005, the two research institutes were merged and reorganized into Sinomach Seiko and listed on the Shenzhen Stock Exchange.
Sinomachine Precision can occupy more than 60% of the market share for three reasons.
First, it has excellent technology. Its press has good stability and high precision. The diamonds it produces are of stable quality and high grade. Its large-tonnage press has high yield and low cost. Second, it is recognized by customers. Domestic cultivated diamond leading companies such as Yellow River Cyclone and Power Diamond are its core customers.
The Matthew effect of “the strong will always be strong” has formed; third, the threshold is high. The manufacturing of six-sided top presses requires a variety of advanced technologies and a deep understanding of the diamond synthesis process. Sinomach Precision has an almost monopoly in the field of large-tonnage presses with decades of technology accumulation.
Cultivation diamonds are real diamonds with the same chemical composition, physical properties and optical effects as natural diamonds. The only difference is the source.
It is cheaper, more environmentally friendly, ethical, and widely recognized by young people.
In 2025, the global rough production capacity of cultivated diamonds will be approximately 40 million carats, with China accounting for 63%. It is expected that by 2030, global production capacity will exceed 120 million carats, and China’s production capacity will be close to 80 million carats, with a compound annual growth rate of 26%.
China’s production capacity is mainly concentrated in Henan, and Zhecheng County is known as the “Diamond Capital of China”.
The popularity of the industry has prompted companies to expand production, and expansion requires a large amount of equipment.
The investment cost of equipment in the cultured diamond industry is high, and with the advancement of technology, old equipment needs to be replaced, which has led to continuous orders from Sinomach Seiko.
No matter how profitable the diamond factory is, as long as the industry develops and expands production, Sinomach Seiko’s equipment will have no worries about selling, just like a shovel seller in the gold rush.
Diamonds can not only be used in jewelry, but can also dissipate heat for AI chips.
Diamond has strong thermal conductivity and can effectively solve the problem of chip heating.
NVIDIA’s next-generation GPU chip has determined to use a diamond cooling solution, and the domestic Zhengzhou Supercomputing Center has also applied related technology.
Sinomach Precision has an in-depth layout in this field and has equipment for HPHT method and MPCVD method. Its sales revenue from its lab-grown diamond business has grown rapidly.
At present, there are two mainstream methods for artificial diamond production, HPHT and CVD.
The HPHT method has fast growth speed, low cost, and good color, but it may contain metal impurities and is difficult to make large-carat diamonds; the CVD method has high purity, is easy to make large diamonds, and is suitable for semiconductor applications, but has a slow growth speed, high cost, and relatively poor color.
Domestic jewelry-grade cultivated diamonds mostly use the HPHT method, while semiconductor-grade and large-carat high-end diamonds mostly use the CVD method.
SINOMACH can manufacture equipment for both methods at the same time, achieving full industry chain coverage.
China occupies a dominant position in the global lab-grown diamond industry, with a high proportion of production capacity and an upward trend.
This is due to the complete industrial chain, cost advantages and technology accumulation.
However, China has shortcomings in downstream brands and channels as well as cutting and grinding processing links, but the situation is improving.
Sinomachine Seiko has a wide range of business, in addition to diamond equipment, it also involves bearing business, superhard materials and products, semiconductor consumables and other fields.
Its high-end special bearings market share exceeds 90%, its superhard material products have strong technical strength, and its semiconductor consumables business has broken foreign monopoly.
Although the diamond equipment business accounts for about 10% of total revenue, it is growing rapidly and has high profit margins.
Sinomach Precision is a comprehensive high-end manufacturing enterprise with great development potential, stable profit model, and strong risk resistance. It is the epitome of the upgrading of China’s manufacturing industry.
