Gem Diamonds Ltd posted a 31% fall in first-half pretax profit on lower revenue, and said it still remained cautious on the US market, Reuters reported.



However, the London-headquartered diamond producer said on Wednesday it saw a growth in demand for diamonds from China.



"At the retail end of the chain, demand for diamond wedding jewelry remains strong in the Middle East, Asia and the United States," Chief Executive Clifford Elphick said in a statement.



For the six months ended June 30, the company posted a pretax profit of $17.2 million, compared with a profit of $25.2 million last year, according to the report. Revenue fell 29% to $117.8 million.



The group had gross cash of $120.5 million and no debt at end-June, it said.

Shares of Gem Diamonds, whose assets are spread across nine countries, closed at 260 pence on Tuesday on the London Stock Exchange.