Poor Performance Of De Beers Ushered In A Sharp Contraction In Revenue In 2015.

Although we were concerned about the four quarter De Beers, we decided to reduce production and price in order to promote the growth of revenue and profit in the 2015 fiscal year, and to augur the beginning of the 2016 fiscal year. But the growth of China's market and consumer confidence led to the contraction of the fiscal year of 2015.

De Beers, which recently claimed that the middle class's demand for diamonds has shrunk and cut prices, has recently recorded a huge decline in earnings data in 2015.

De Beers still plans to limit the supply of diamonds to promote the diamond industry from the seven year low, although it has doubled the profit of the first raw stone sales volume this year.

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According to the earnings data, revenue growth in the 2015 fiscal year De Beers fell 34.3% to 4 billion 671 million US dollars in a year, of which core profit EBIT plunged 58.1% to 571 million dollars.

Despite repeated downgrades, the production of 28 million 692 thousand carat diamonds last year decreased by 12% compared with the 2014 fiscal year, pushing the price of raw stone to rise from $198 in 2014 to $208 per carat. However, the unit price also declined from 111 US dollars / carat to 104 US dollars / carat, resulting in a decline of 15% in the original rock price index.

The positive side is 2015.

There is still a driving force for continuous expansion. Compared with the previous year, the store has a 14% growth, and sales also have double-digit growth. Meanwhile, De Beers Diamond Jewellers Ltd, which is jointly invested with LVMH, has 35 stores in 12 key markets, and also has strong sales performance in the high-end field.

And the group said it was the second largest in the world.

China's outlook is uncertain, so the group will look to the world's largest diamond demand market to lead the growth of the 2016 fiscal year, but the group chief executive also said that this year's diamond demand and price trend outlook can not be given, but the decisive factors include economic performance and consumer confidence in China and India.

In terms of De Beers, China's fundamentals remained strong last year and India's growth prospects were optimistic. The group gave the middle class of the two emerging economies rapid growth expectations.