Abstract On March 18, Jiang Diamond Co., Ltd. (000852) held its 2012 Annual General Meeting of Shareholders. Following the meeting, Xie Yongjin, the company's vice chairman, provided insights into the company's interest in emerging energy sources such as combustible ice and shale gas. He emphasized that the extraction of combustible ice is significantly different from traditional oil and natural gas operations. At this stage, the technology is still in the research phase, and it remains uncertain whether Jiang Diamond’s products will be applicable. As a result, there is currently no direct impact on the company’s operations, though the company is closely monitoring developments in this area.
In addition to combustible ice, Xie also discussed the potential of shale gas. He noted that while China possesses substantial shale gas reserves, the challenges of extracting it are far greater than in the United States. In the U.S., shale gas is typically found in flat regions, making the process more straightforward. In contrast, China's shale gas is mostly located in the mountainous southwest, where geological conditions are more complex. The rock formations are uneven, and the concentration of gas varies, which increases both the difficulty and cost of extraction. Although Jiang Diamond’s equipment is well-suited for such challenging environments, the industry is still in the early stages of development. Large-scale commercial production is expected to take many years, so the impact on the company’s financial performance remains limited for now.
Wang Yibing, a director at Jiang Diamond Co., Ltd., highlighted the company's two core products. The roller cone bit holds an 80% market share in China, giving the company a strong competitive edge. However, due to its relatively simple manufacturing process, the diamond drill bit faces significant competition in the market. Despite this, the company performed well in 2012, with operating income reaching 1.84 billion yuan, up 16% year-on-year, and net profit rising to 130 million yuan, a 25% increase compared to the previous year. This growth reflects the company’s solid position in the industry and its ability to adapt to evolving market conditions.Flame Retardant Test Machine,Burning Resistance Tester,Burn Resistance Tester,Flame Retardant Test Equipment
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