Three Risk Factors That China's Superhard Material Enterprises Face

With the mature development of production technology and production technology of synthetic diamond, the production cost of synthetic diamond has fallen dramatically but the quality is enhanced unceasingly. The applications of synthetic diamond will be more and more widely and is expected to expand further with the application of emerging industry field. In the future, it can be expected to remain higher speed of growth in a long term.

According to industry association data analysis, the market demand of synthetic diamond in China can still maintain rapid growth in the next few years. And in many enterprises, Boshi Superhard Material Co.,Ltd., Yuzhou He Hui Superabrasives Co.ltd., Xinren Superabrasives Co,.limited, Beijing Xin Bai Bentley Superhard Materials Co., Ltd., and Jinxin Abrasives Co.,ltd. all do a good job and can do better. But in recent years, with the development of the industry at a faster speed and the fierce competition in the industry, China's enterprises in the field of superhard materials and products have also encountered some risk factors.

A, The risk of new product development and promotion

Superhard material industry has small industry scale, higher R&D spending and investment recovery compared with other pillar industries of national economy, so enterprises need to take more funds and personnel input from product development to production equipment research and development, and product promotion under the condition of less domestic professional research institutions and low conversion rate of low technology. Thus, it inevitably brings higher risk.

B, The fierce market competition

Restricted by industry scale and industry development speed, many enterprises in the industry are facing more fierce competition environment. With the gradually increasing scale of investment of enterprises in the industry, the cost advantage accompanied by large-scale production will lead to the decline of product prices, and ultimately compress profit space of enterprises. Although the competition will broaden the application field and and scale of superhard materials, it will also bring bigger risk for enterprises.

C, The macro economic influence

Influenced by macroeconomic, the speed of basic construction investment has slowed, which influences the superhard material products and indirectly affects the sales of superhard materials; Tight financial policy, and the pressure of loan financing, especially the financing difficulties of small and medium-sized enterprises directly inhibit the company's product requirements; Inflation, though has a positive effect on corporate profits in the short term, it will weaken the profitability of the enterprise in the long run. Three factors all directly or indirectly affect the development of superhard materials.