The marriage proposal diamond ring brand DR said, "A man can only customize one in his life." What a romantic agreement to love one person in his life. The stock investors were very worried after seeing it, so they went to the interactive community to ask the secretary of the boa

text | Zhang Jiaru

"Diamonds are forever, and one is forever passed down." The diamonds are crystal clear, like the affectionate eyes of a lover, and gentle like water. It remains unchanged and represents the loyalty and eternity of love.

marriage proposal diamond ring brand DR said, "A man can only customize one in his life." What a romantic agreement to love one person in his life. However, recently, the product and marketing of DR diamond rings have been questioned.

On September 22, the topic of "DR diamond ring cost 4,000 yuan sold for 15,000 yuan" reached the top hot search on Weibo. On September 26, the topic of "DR responds to 800 yuan to delete the purchase record" has dominated the hot search again.

Under the topic, netizens gave comments such as "I will only cut you a wave of leeks in my life", "IQ tax", "moral kidnapping marketing", "I am already very conscientious", "What should I do? If I don't buy my girlfriend, I will say I don't love her". The parent company of

DR diamond ring is listed company Di'a Co., Ltd. The stock investors were very worried after seeing it, so they went to the interactive community to ask the secretary of the board, is it true? Di'a Co., Ltd. responded.

Regarding the cost, Di'a Co., Ltd. said that the company's costs are not only the costs of raw materials such as raw ore, precious metals, , and the information on the Internet is a one-sided interpretation. In terms of

design, the company has set up a Paris Design Center in Europe, and cooperated to gather world-renowned jewelry design masters to create true love jewelry works; in terms of craftsmanship, the company pursues the ultimate and has developed exclusive crafts such as piano master ring arm and hexagram diamond cutting.

Regarding the issue of "DR diamond rings can delete purchase records", DiA Co., Ltd. denied it, and said that the Taobao store that released the false news has been removed from the shelves by Taobao official.

Dia Co., Ltd. was questioned, it is not new. As early as November last year, there was a similar topic and it once again became a hot search, which also shows that consumers are sensitive to this matter. In the consumer market, DR diamond rings are questioned for "IQ tax", and in the capital market, Di'a Co., Ltd. has become a leek harvester.

Some investors complained that it was not enough to cut leeks in the mall, so they went to the stock market to cut leeks.

Make money from love, gross profit margin is 70% in the industry,

What is love in the world, it teaches people to live and die together. How can a love that promises life and death be tested? Diao Co., Ltd. tells you - diamond ring.

Dia Co., Ltd.'s main products include marriage proposal diamond rings, wedding pair rings and true love gifts. In the first half of 2022, Di'a Co., Ltd. achieved operating income of 2.085 billion yuan, a year-on-year decrease of 10.13%; attributable net profit of 579 million yuan, a year-on-year decrease of 20.62%.

Previous 2021 annual report showed that DiA Co., Ltd. achieved revenue of 4.623 billion yuan, a year-on-year increase of 87.6%; net profit attributable to shareholders was 1.302 billion yuan, a year-on-year increase of 131.1%.

gross profit margin, Di'a Co., Ltd.'s overall gross profit margin in the first half of the year was 70.63%, an increase of 0.63% over the same period last year. By product, the gross profit margin of the marriage proposal diamond ring exceeds 72%, which is higher than that of the marriage ring.

Tonghuashun shows that Di'a Co., Ltd.'s gross profit margin ranks first among 14 watch and jewelry companies, and Laishen Tongling ranked second with a gross profit margin of 54%.

best-selling styles, in the prospectus, from January to June 2021, the FOREVER series simple luxury models with the largest sales revenue from Di'a Co., Ltd., with a unit price of 15,000 yuan and a gross profit margin of 72%.

Prospectus also shows that among the procurement situation of major outsourced processors, Di'a Co., Ltd. selected three products with a large purchase amount during the reporting period, among which the average purchase price range of the FOREVER series simple luxury models is 1005.94~1110.18 yuan per piece.

In addition to the purchase price, the price of a product is also determined by various other costs.

semi-annual report shows that through the dissemination of brand concepts such as "a man can only customize one in his life" and "a person in his life" and the interpretation of the brand cultural connotation of "a life, only, true love", Di'a Co., Ltd. has gathered more than 20 million DR fans on the Internet platform.

In order to convey brand concepts to more people, Di'a Co., Ltd. spent a lot of money on marketing.

From 2018 to 2021, the company's sales expenses were RMB 500 million, RMB 674 million, RMB 729 million and RMB 1.218 billion respectively.In the first half of 2022, DR sales expenses reached 667 million yuan, an increase of 32.93% from 502 million yuan in the same period last year.

In comparison, Di'a Co., Ltd. has invested less in R&D. From 2018 to 2021, the largest number of years is less than 17 million yuan. In the first half of 2022, R&D investment was 9.1869 million yuan, an increase of 47.44% year-on-year, with a growth rate exceeding sales expenses.

Any business can be roughly divided into three types: making money is not hard, making money is hard, and making money is not hard. From the perspective of 70%, the industry's first point of view, Di'a shares is not hard to make money, and brand concepts such as "only give one person in a lifetime" are unique.

However, in the past year, Di's marketing has encountered doubts.

True Love Marketing has been tested again, and its market value has dropped by 52 billion

In November 2021, a netizen who claimed to be an internal DR employee broke the news online that he found through the DR official query channel that many traffic artists had purchased DR diamond rings. Subsequently, several artists claimed that they had never purchased rings from related brands.

things have become the hot search on Weibo . Some netizens questioned that the DR diamond ring leaked personal information at will, and believed that the exclusive concept of "giving only one person in a lifetime" created by it is marketing gimmicks and "IQ tax".

Beijing Youth Hot Spot reported at the time that the reporter registered as a user with his real-name certified mobile phone number and used other men's ID numbers to place an order to purchase. Without verification of the face or original ID card, the page showed that it passed "True Love Verification".

The report also shows that the identity information corresponding to the mobile phone number registered for use is inconsistent with the ID number entered when placing an order, and the result has also passed the platform verification.

At that time, netizens suggested that the purchase record of DR diamond rings could be eliminated for 500 yuan. Regarding the issue of "spend money to eliminate records", DR issued a statement saying that the claim that spending money can unbind is untrue.

Recently, the two major topics of "DR diamond ring cost 4,000 yuan and sell for 15,000 yuan" and "DR response 800 yuan can delete the purchase record", are somewhat similar to the topics last November, especially when you can spend money to delete the purchase record, which is a huge blow to the concept of "only one person in your life". After the

news fermented, DiA Co., Ltd. clarified. We also respond to shareholders on the interactive platform and will continue to adhere to the brand mission and brand values, provide the market and users with better products and more attentive services, and strictly control and review online and offline stores.

encountered a marketing storm in the consumer market. In the capital market, DiA shares cannot satisfy shareholders. On December 15, 2021, DiA Co., Ltd. was listed on the GEM. On the first day of listing, DiA Co., Ltd. had an intraday maximum of 178 yuan (forward re-rights), with a total market value of over 70 billion yuan.

However, listing is at its peak, and DiA shares have been declining since then. On September 27, Di'a Co., Ltd. quoted 46.76 yuan, with a total market value of 18.7 billion yuan. Compared with the high point, DiA Co., Ltd.'s share price fell by 73%, and its total market value fell by 52 billion yuan.

Dia Co., Ltd.'s stock price is sluggish, but many brokerages are bullish on the future market. For example, CITIC Securities commented on the interim report and stated that under the pressure of the epidemic, the company's offline layout has expanded rapidly against the trend, expanded its products in non-marital love scenarios, launched golden wedding series and exclusive customization rules for women, and improved the product matrix.

Considering that DiA shares stores are purely self-operated, have strong brand power, and are in a period of rapid expansion after listing, it is worth about 15xPE in fiscal year 2023 (based on the forecast of CITIC Securities Research Department), and the company is given 15xPE in 2023, corresponding to the target price of 72 yuan, and maintains a "buy" rating.

Overall, DiA Co., Ltd.'s unique brand marketing concept helps the company become an industry leader. Nowadays, brand philosophy is being questioned, and it remains to be seen how much impact it will be. In the capital market, DiA Co., Ltd.'s performance was sluggish and continued to fall in 2021 when its performance surged. It is a great challenge to win back investor confidence.

What do you think about Di'a Co., Ltd.'s performance and stock price performance?