Technology
Ultra Clean Reports Second Quarter 2024 Financial Results
Published
2 months agoon
By
HAYWARD, Calif., July 25, 2024 /PRNewswire/ — Ultra Clean Holdings, Inc. (Nasdaq: UCTT), today reported its financial results for the second quarter ended June 28, 2024.
“UCT executed well in Q2 due to ongoing strength in demand from the domestic China market and customers supplying High Bandwidth Memory and equipment supporting advanced packaging for AI applications,” said Jim Scholhamer, CEO, “UCT’s broad portfolio and strategic footprint are supporting our customers’ technology roadmaps in 2024 and will enable us to accelerate growth as the market strengthens.”
Second Quarter 2024 GAAP Financial Results
Total revenue was $516.1 million. Products contributed $452.7 million and Services added $63.4 million. Total gross margin was 17.1%, operating margin was 4.4%, and net income was $19.1 million or $0.42 per diluted share. This compares to total revenue of $477.7 million, gross margin of 17.3%, operating margin of 3.6%, and net loss of $(9.4) million or $(0.21) per diluted share, in the prior quarter.
Second Quarter 2024 Non-GAAP Financial Results
On a non-GAAP basis, gross margin was 17.7%, operating margin was 6.9%, and net income was $14.4 million or $0.32 per diluted share. This compares to gross margin of 17.9%, operating margin of 6.5%, and net income of $12.1 million or $0.27 per diluted share in the prior quarter.
Third Quarter 2024 Outlook
The Company expects revenue in the range of $490 million to $540 million. The Company expects GAAP diluted net income (loss) per share to be between $(0.07) and $0.13 and non-GAAP diluted net income per share to be between $0.22 and $0.42.
Conference Call
The conference call and webcast will take place on Thursday, July 25, 2024 at 1:45 p.m. PT and can be accessed by dialing 1-800-836-8184 or 1-646-357-8785. No passcode is required. A replay of the call will be available by dialing 1-888-660-6345 or 1-646-517-4150 and entering the confirmation code 53952#. The Webcast will be available on the Investor Relations section of the Company’s website at http://uct.com/investors/events/.
About Ultra Clean Holdings, Inc.
Ultra Clean Holdings, Inc. is a leading developer and supplier of critical subsystems, components, parts, and ultra-high purity cleaning and analytical services, primarily for the semiconductor industry. Under its Products division, UCT offers its customers an integrated outsourced solution for major subassemblies, improved design-to-delivery cycle times, design for manufacturability, prototyping, and high-precision manufacturing. Under its Services Division, UCT offers its customers tool chamber parts cleaning and coating, as well as micro-contamination analytical services. Ultra Clean is headquartered in Hayward, California. Additional information is available at www.uct.com.
Use of Non-GAAP Measures
In addition to providing results that are determined in accordance with Generally Accepted Accounting Principles in the United States of America (“GAAP”), management uses non-GAAP gross margin, non-GAAP operating margin and non-GAAP net income to evaluate the Company’s operating and financial results. We believe the presentation of non-GAAP results is useful to investors for analyzing our core business and business trends and comparing performance to prior periods, along with enhancing investors’ ability to view the Company’s results from management’s perspective. The presentation of this additional information should not be considered a substitute for results prepared in accordance with GAAP. Tables presenting reconciliations from GAAP results to non-GAAP results are included at the end of this press release.
The Company defines non-GAAP net income as net loss before amortization of intangible assets, stock-based compensation, restructuring charges, acquisition activity costs, fair value adjustments, debt refinancing costs and the tax effects of the foregoing adjustments.
A reconciliation of our guidance for non-GAAP net income per diluted share for the subsequent quarter is not available due to fluctuations in the geographic mix of our earnings from quarter to quarter, which impacts our tax rate and cannot be reasonably predicted or determined. As a result, such reconciliation is not available without unreasonable efforts and we are unable to determine the probable significance of the unavailable information.
Safe Harbor Statement
The foregoing information contains, or may be deemed to contain, “forward-looking statements” (as defined in the US Private Securities Litigation Reform Act of 1995) which reflect our current views with respect to future events and financial performance. We use words such as “anticipates,” “projection,” “outlook,” “forecast,” “believes,” “plan,” “expect,” “future,” “intends,” “may,” “will,” “estimates,” “see,” “predicts,” “should” and similar expressions to identify these forward-looking statements. Forward looking statements included in this press release include our expectations about the semiconductor capital equipment market and outlook. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, the Company’s actual results may differ materially from the results predicted or implied by these forward-looking statements. These risks, uncertainties and other factors also include, among others, those identified in “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in our annual report on Form 10-K for the year ended December 29, 2023, as filed with the Securities and Exchange Commission. Ultra Clean Holdings, Inc. undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise unless required by law.
Contact:
Rhonda Bennetto
SVP Investor Relations
rbennetto@uct.com
ULTRA CLEAN HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in millions, except per share data)
Three Months Ended
Six Months Ended
June 28,
2024
June 30,
2023
June 28,
2024
June 30,
2023
Revenues:
Product
$ 452.7
$ 362.5
$ 871.2
$ 731.1
Services
63.4
59.0
122.7
123.7
Total revenues
516.1
421.5
993.9
854.8
Cost of revenues:
Product
383.9
311.1
738.0
626.2
Services
43.7
42.3
84.8
87.5
Total cost revenues
427.6
353.4
822.8
713.7
Gross margin
88.5
68.1
171.1
141.1
Operating expenses:
Research and development
7.1
7.2
14.1
14.3
Sales and marketing
14.8
12.7
28.5
25.8
General and administrative
43.7
35.6
88.3
76.0
Total operating expenses
65.6
55.5
130.9
116.1
Income from operations
22.9
12.6
40.2
25.0
Interest income
1.4
0.8
2.8
1.3
Interest expense
(11.7)
(11.8)
(23.9)
(23.6)
Other income (expense), net
17.4
(1.5)
13.5
1.3
Income before provision for income taxes
30.0
0.1
32.6
4.0
Provision for income taxes
8.5
8.3
18.4
11.8
Net income (loss)
21.5
(8.2)
14.2
(7.8)
Less: Net income attributable to noncontrolling interests
2.4
1.2
4.5
5.0
Net income (loss) attributable to UCT
$ 19.1
$ (9.4)
$ 9.7
$ (12.8)
Net income (loss) per share attributable to UCT common stockholders:
Basic
$ 0.43
$ (0.21)
$ 0.22
$ (0.29)
Diluted
$ 0.42
$ (0.21)
$ 0.21
$ (0.29)
Shares used in computing net income (loss) per share:
Basic
44.9
44.7
44.7
44.8
Diluted
45.4
44.7
45.3
44.8
ULTRA CLEAN HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; in millions)
June 28,
2024
December 29,
2023
ASSETS
Current assets:
Cash and cash equivalents
$ 319.5
$ 307.0
Accounts receivable, net of allowance for credit losses
206.9
180.8
Inventories
399.9
374.5
Prepaid expenses and other current assets
34.5
30.9
Total current assets
960.8
893.2
Property, plant and equipment, net
326.6
328.3
Goodwill
265.2
265.2
Intangible assets, net
200.0
215.3
Deferred tax assets, net
3.1
3.1
Operating lease right-of-use assets
161.3
151.7
Other non-current assets
10.3
10.9
Total assets
$ 1,927.3
$ 1,867.7
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Bank borrowings
$ 16.3
$ 17.6
Accounts payable
229.0
192.9
Accrued compensation and related benefits
49.2
47.7
Operating lease liabilities
18.7
18.1
Other current liabilities
38.2
33.7
Total current liabilities
351.4
310.0
Bank borrowings, net of current portion
478.3
461.2
Deferred tax liabilities
18.9
19.0
Operating lease liabilities
152.4
143.0
Other liabilities
14.6
37.3
Total liabilities
1,015.6
970.5
Equity:
UCT stockholders’ equity:
Common stock
503.3
496.6
Retained earnings
356.4
346.7
Accumulated other comprehensive loss
(7.4)
(4.4)
Total UCT stockholders’ equity
852.3
838.9
Noncontrolling interests
59.4
58.3
Total equity
911.7
897.2
Total liabilities and equity
$ 1,927.3
$ 1,867.7
ULTRA CLEAN HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in millions)
Six Months Ended
June 28,
2024
June 30,
2023
Cash flows from operating activities:
Net income (loss)
$ 14.2
$ (7.8)
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
Depreciation and amortization
22.7
18.2
Amortization of intangible assets
15.3
11.4
Stock-based compensation
8.0
4.7
Amortization of debt issuance costs
1.9
1.9
Change in the fair value of financial instruments
(22.6)
(0.2)
Deferred income taxes
(0.5)
(0.6)
Loss (gain) on sale of property, plant and equipment
0.1
(0.4)
Changes in assets and liabilities:
Accounts receivable
(26.1)
75.1
Inventories
(25.4)
45.1
Prepaid expenses and other current assets
(1.5)
5.2
Other non-current assets
0.7
(0.3)
Accounts payable
41.4
(62.6)
Accrued compensation and related benefits
1.5
(12.5)
Income taxes payable
1.4
(4.3)
Operating lease assets and liabilities
0.5
(2.9)
Other liabilities
1.4
(5.6)
Net cash provided by operating activities
33.0
64.4
Cash flows from investing activities:
Purchases of property, plant and equipment
(31.0)
(47.0)
Proceeds from sale of equipment
0.1
0.5
Net cash used in investing activities
(30.9)
(46.5)
Cash flows from financing activities:
Proceeds from bank borrowings
67.7
—
Proceeds from issuance of common stock
0.9
—
Extinguishment of debt
(44.2)
—
Principal payments on bank borrowings
(7.1)
(30.9)
Payment of debt issuance costs
(2.5)
—
Employees’ taxes paid upon vesting of restricted stock units
(2.2)
(2.2)
Payments of dividends to a joint venture shareholder
(0.1)
(0.1)
Repurchase of shares
—
(23.7)
Net cash provided by (used in) financing activities
12.5
(56.9)
Effect of exchange rate changes on cash and cash equivalents
(2.1)
1.0
Net increase (decrease) in cash and cash equivalents
12.5
(38.0)
Cash and cash equivalents at beginning of period
307.0
358.8
Cash and cash equivalents at end of period
$ 319.5
$ 320.8
ULTRA CLEAN HOLDINGS, INC.
REPORTABLE SEGMENTS
GAAP TO NON-GAAP RECONCILIATION
(Unaudited; dollars in millions)
GAAP
Non-GAAP
Three Months Ended
Three Months Ended
June 28, 2024
June 28, 2024
Products
Services
Consolidated
Products
Services
Consolidated
Revenues
$ 452.7
$ 63.4
$ 516.1
$ 452.7
$ 63.4
$ 516.1
Gross profit
$ 68.8
$ 19.7
$ 88.5
$ 70.8
$ 20.7
$ 91.5
Gross margin
15.2 %
31.1 %
17.1 %
15.6 %
32.7 %
17.7 %
Income from operations
$ 18.8
$ 4.1
$ 22.9
$ 28.2
$ 7.5
$ 35.7
Operating margin
4.2 %
6.5 %
4.4 %
6.2 %
11.8 %
6.9 %
Three Months Ended
June 28, 2024
Products
Services
Consolidated
Reconciliation of GAAP Gross profit to Non-GAAP Gross profit (in millions)
Reported gross profit on a GAAP basis
$ 68.8
$ 19.7
$ 88.5
Amortization of intangible assets (1)
1.3
1.0
2.3
Stock-based compensation expense (2)
0.5
—
0.5
Restructuring charges (3)
0.2
—
0.2
Non-GAAP gross profit
$ 70.8
$ 20.7
$ 91.5
Reconciliation of GAAP Gross margin to Non-GAAP Gross margin
Reported gross margin on a GAAP basis
15.2 %
31.1 %
17.1 %
Amortization of intangible assets (1)
0.3 %
1.6 %
0.5 %
Stock-based compensation expense (2)
0.1 %
— %
0.1 %
Restructuring charges (3)
0.0 %
— %
— %
Non-GAAP gross margin
15.6 %
32.7 %
17.7 %
Reconciliation of GAAP Income from operations to Non-GAAP Income from operations (in millions)
Reported income from operations on a GAAP basis
$ 18.8
$ 4.1
$ 22.9
Amortization of intangible assets (1)
4.7
2.9
7.6
Stock-based compensation expense (2)
4.2
0.5
4.7
Restructuring charges (3)
0.5
—
0.5
Non-GAAP income from operations
$ 28.2
$ 7.5
$ 35.7
Reconciliation of GAAP Operating margin to Non-GAAP Operating margin
Reported operating margin on a GAAP basis
4.2 %
6.5 %
4.4 %
Amortization of intangible assets (1)
1.0 %
4.5 %
1.5 %
Stock-based compensation expense (2)
0.9 %
0.8 %
0.9 %
Restructuring charges (3)
0.1 %
— %
0.1 %
Non-GAAP operating margin
6.2 %
11.8 %
6.9 %
1 Amortization of intangible assets related to the Company’s business acquisitions
2 Represents compensation expense for stock granted to employees and directors
3 Represents severance, retention and costs related to facility closures
ULTRA CLEAN HOLDINGS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS
Three Months Ended
June 28,
2024
June 30,
2023
March 29,
2024
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (in millions)
Reported net income (loss) attributable to UCT on a GAAP basis
$ 19.1
$ (9.4)
$ (9.4)
Amortization of intangible assets (1)
7.6
5.5
7.7
Stock-based compensation expense (2)
4.7
1.3
3.9
Restructuring charges (3)
0.5
2.4
1.8
Acquisition related costs (4)
—
0.1
0.3
Fair value related adjustments (5)
(24.1)
1.6
1.3
Debt refinancing costs expensed (6)
3.6
—
—
Legal-related costs (7)
—
(0.9)
—
Income tax effect of non-GAAP adjustments (8)
1.9
(1.6)
(3.0)
Income tax effect of valuation allowance (9)
1.1
8.1
9.5
Non-GAAP net income attributable to UCT
$ 14.4
$ 7.1
$ 12.1
Reconciliation of GAAP Income from operations to Non-GAAP Income from operations (in millions)
Reported income from operations on a GAAP basis
$ 22.9
$ 12.6
$ 17.3
Amortization of intangible assets (1)
7.6
5.5
7.7
Stock-based compensation expense (2)
4.7
1.3
3.9
Restructuring charges (3)
0.5
2.4
1.8
Acquisition related costs (4)
—
0.1
0.3
Legal-related costs (7)
—
(0.9)
—
Non-GAAP income from operations
$ 35.7
$ 21.0
$ 31.0
Reconciliation of GAAP Operating margin to Non-GAAP Operating margin
Reported operating margin on a GAAP basis
4.4 %
3.0 %
3.6 %
Amortization of intangible assets (1)
1.5 %
1.3 %
1.6 %
Stock-based compensation expense (2)
0.9 %
0.3 %
0.8 %
Restructuring charges (3)
0.1 %
0.6 %
0.4 %
Acquisition related costs (4)
— %
0.0 %
0.1 %
Legal-related costs (7)
— %
(0.2) %
— %
Non-GAAP operating margin
6.9 %
5.0 %
6.5 %
Reconciliation of GAAP Gross profit to Non-GAAP Gross profit (in millions)
Reported gross profit on a GAAP basis
$ 88.5
$ 68.1
$ 82.6
Amortization of intangible assets (1)
2.3
1.5
2.3
Stock-based compensation expense (2)
0.5
0.5
0.6
Restructuring charges (3)
0.2
0.4
—
Non-GAAP gross profit
$ 91.5
$ 70.5
$ 85.5
Reconciliation of GAAP Gross margin to Non-GAAP Gross margin
Reported gross margin on a GAAP basis
17.1 %
16.2 %
17.3 %
Amortization of intangible assets (1)
0.5 %
0.3 %
0.5 %
Stock-based compensation expense (2)
0.1 %
0.1 %
0.1 %
Restructuring charges (3)
0.0 %
0.1 %
— %
Non-GAAP gross margin
17.7 %
16.7 %
17.9 %
Reconciliation of GAAP Other income (expense), net to Non-GAAP Other income (expense), net (in millions)
Reported Other income (expense), net on a GAAP basis
$ 17.4
$ (1.5)
$ (3.8)
Fair value related adjustments (5)
(24.1)
2.9
1.3
Debt refinancing costs expensed (6)
3.6
—
—
Non-GAAP Other income (expense), net
$ (3.1)
$ 1.4
$ (2.5)
Reconciliation of GAAP Income (Loss) Per Diluted Share to Non-GAAP Earnings Per Diluted Share
Reported net income (loss) on a GAAP basis
$ 0.42
$ (0.21)
$ (0.21)
Amortization of intangible assets (1)
0.17
0.12
0.17
Stock-based compensation expense (2)
0.10
0.03
0.09
Restructuring charges (3)
0.01
0.05
0.04
Acquisition related costs (4)
—
0.01
0.01
Fair value related adjustments (5)
(0.53)
0.04
0.03
Debt refinancing costs expensed (6)
0.08
—
—
Legal-related costs (7)
—
(0.02)
—
Income tax effect of non-GAAP adjustments (8)
0.04
(0.04)
(0.07)
Income tax effect of valuation allowance (9)
0.03
0.18
0.21
Non-GAAP net earnings
$ 0.32
$ 0.16
$ 0.27
Weighted average number of diluted shares (in millions) on a non-GAAP basis
45.4
45.0
45.1
ULTRA CLEAN HOLDINGS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP EFFECTIVE INCOME TAX RATE
Three Months Ended
June 28,
2024
June 30,
2023
March 29,
2024
Provision for income taxes on a GAAP basis
$ 8.5
$ 8.3
$ 9.9
Income tax effect of non-GAAP adjustments (8)
(1.9)
1.6
3.0
Income tax effect of valuation allowance (9)
(1.1)
(8.1)
(9.5)
Non-GAAP provision for income taxes
$ 5.5
$ 1.8
$ 3.4
Income before income taxes on a GAAP basis
$ 30.0
$ 0.1
$ 2.7
Amortization of intangible assets (1)
7.6
5.5
7.7
Stock-based compensation expense (2)
4.7
1.3
3.9
Restructuring charges (3)
0.5
2.4
1.8
Acquisition related costs (4)
—
0.1
0.3
Fair value related adjustments (5)
(24.1)
2.9
1.3
Debt refinancing costs expensed (6)
3.6
—
—
Legal-related costs (7)
—
(0.9)
—
Non-GAAP income before income taxes
$ 22.3
$ 12.3
$ 17.7
Effective income tax rate on a GAAP basis
28.3 %
8300.0 %
366.7 %
Non-GAAP effective income tax rate
24.7 %
14.8 %
19.7 %
1 Amortization of intangible assets related to the Company’s business acquisitions
2 Represents compensation expense for stock granted to employees and directors
3 Represents severance, retention and costs related to facility closures
4 Represents acquisition activity costs
5 Fair value adjustments related to contingent consideration and intercompany loan related to an acquisition, net of $1.3 million loss attributable to noncontrolling interest
6 Represents the third party transaction costs related to the amended credit agreement and the previously capitalized costs of extinguished debt
7 Represents estimated costs related to certain legal proceedings
8 Tax effect of items (1) through (7) above based on the non-GAAP tax rate
9 The Company’s GAAP tax expense is generally higher than the Company’s non-GAAP tax expense, primarily due to losses in the U.S. with full federal and state valuation allowances. The Company’s non-GAAP tax rate and resulting non-GAAP tax expense considers the tax implications as if there was no federal or state valuation allowance position in effect
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SOURCE Ultra Clean Holdings, Inc.
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BEIJING, Sept. 28, 2024 /PRNewswire/ — In an era marked by unprecedented global transformations, the world stands at a critical crossroads, grappling with deepening deficits in peace, development, security, and governance. As humanity faces unparalleled challenges during this tumultuous period, Xi Jinping, general secretary of the Communist Party of China (CPC) Central Committee and Chinese president, has put forth a solemn call to action through the Global Development Initiative (GDI), the Global Security Initiative (GSI), and the Global Civilization Initiative (GCI).
The three pivotal initiatives address the pressing issues of our time, offering viable pathways and robust support for the building of a global community of shared future. Rooted in the rich historical experiences of the CPC’s century-long struggle and infused with the wisdom of China’s traditional culture, these initiatives are expected to unite the world in the pursuit of common progress and stability.
To offer a deep understanding of the GDI, the GSI, and the GCI, and elaborate on their significance on a global scale, the Global Times is launching series of articles featuring engaging stories and in-depth interviews to provide our readers with a comprehensive insight into the three initiatives.
From ‘Convention of Peking’ to ‘Beijing Declaration’
In April 2022, President Xi proposed the GSI to promote universal security while delivering a keynote speech via video link at the opening ceremony of the Boao Forum for Asia Annual Conference 2022. The initiative is a global public good offered by China, as well as a vivid illustration of the vision of a community with a shared future for mankind in the security field.
On July 23, 2024, 14 Palestinian factions gathered in Beijing and signed the Beijing Declaration on Ending Division and Strengthening Palestinian National Unity after participating in reconciliation talks mediated by China, a lively demonstration of the GSI’s function in practice, which many international observers hailed China for having “made something impossible possible,” and regarded it as a milestone in the Middle East reconciliation process.
“Palestinian unity is key to the realization of Palestinian statehood and China is committed to facilitating it,” read an article on news outlet Al Jazeera.
“The Palestinian question is at the core of the Middle East issue. Over the past years, China has put forward proposals and taken action to address the Palestinian question with Chinese wisdom and solutions,” stated the article.
China’s Foreign Ministry Spokesperson Mao Ning said at a regular media briefing on July 24, that “China firmly supports the Palestinian people in restoring their legitimate national rights, and supports the people of Middle East countries in holding their future in their own hands. China will continue to advance the GSI and make more contribution to peace and stability in the Middle East.”
On the day that the “Beijing Declaration” was signed, many Chinese people hailed the important step in peace in the Middle East and shared the sentiment “Because we have been caught in the rain, we want to hold an umbrella for others” on social media platforms.
They recalled the history that 164 years ago, the Qing government was forced to sign the humiliating “Convention of Peking” in 1860, which included ceding territories and paying indemnities. That dark era saw China reduced to a semi-feudal and semi-colonial society, when bullying by foreign powers and frequent wars tore the country apart and plunged the Chinese people into an abyss of great suffering. After a strenuous fight, the CPC has closely united and led the Chinese people of all ethnic groups to work hard for a century to put an end to China’s national humiliation, guiding the country to progress and prosperity.
The past suffering is not merely a reminder of a dark history; it has also made the Chinese people more sympathetic to the suffering of others and has deepened their understanding of the value of peace.
Turkish Ambassador to China İsmail Hakkı Musa hailed the significance of the GSI in an exclusive interview with the Global Times. “The GSI has its own rations. It focuses on sovereignty, equality, territorial integrity, and [the] peaceful settlement of the disputes. You may have noticed that too many people – too many analysts – defended the idea that, for example, the role assumed by China between the approach of Saudi Arabia and Iran was a kind of application or practice of this initiative,” Musa said.
“We all know that this approach is a good thing. Lesser tension in that region is an important contribution to the world peace,” he stressed.
In practice, China is not only playing an unselfish, active role in the brokering of peace in the Middle East while some other countries ignore human lives for selfish interests, but has also become an important force in maintaining world peace.
Since the restoration of its legitimate seat in the United Nations, China has faithfully fulfilled its international legal obligations as a permanent member of the UN Security Council.
Currently, China is the second-largest contributor to the UN’s regular budget, the second-largest contributor to UN peacekeeping operations, and the largest troop-contributing nation among the permanent members of the Security Council. China actively participates in negotiations and the formulation of rules on global security issues in various fields, including international arms control and preventing nuclear proliferation.
It also collaborates with various parties in non-traditional security areas such as counter-terrorism, biosecurity, and food security. In the face of ongoing hotspot issues, China is committed to playing the role of a responsible major power.
Right to development
In the heart of Africa, where the sun shines brightly and the needs of the people are as vast as the savannah, a new story of development is unfolding. It’s a tale of “small but beautiful” projects born from China–Africa cooperation, ranging from crop cultivation and maize growth and combating the region’s hunger issue, to clean energy projects that provide affordable new energy, and to the Luban Workshop, which offers training to many in Africa.
The implementation of these “small and beautiful” projects echoes the GDI’s call for sustainable and people-centric growth.
Three years ago, Xi proposed the GDI at the general debate of the 76th session of the United Nations (UN) General Assembly, calling for the building of a consensus in pursuing development, promoting shared growth, and helping accelerate the implementation of the UN 2030 Agenda for Sustainable Development.
China achieved the goal of eradicating absolute poverty 10 years ahead of the United Nations’ 2030 Sustainable Development Agenda, making significant contributions to global poverty alleviation efforts. Internationally, China is fully committed to development, actively sharing its development opportunities and experiences with other countries, especially with those in the Global South.
Since the initiative was proposed, the content has been consistently substantialized, with its implementation mechanisms becoming more refined over time. This has led to the gradual establishment of practical cooperation within its framework, providing China’s approach to addressing the development gap in Global South countries.
At the just concluded 2024 Summit of the Forum on China-Africa Cooperation (FOCAC), the China-Africa Joint Statement on Deepening Cooperation within the Framework of the Global Development Initiative was released.
“Since the launch of the GDI, China and Africa have joined forces and mutually supported each other in exploring paths toward modernization, further implementing the China-Africa Cooperation Vision 2035, advancing the nine programs to a high standard, as well as completing 175 ‘small and beautiful’ livelihood cooperation projects,” read the statement.
More than 30 African members of the FOCAC have joined the Group of Friends of the GDI and the Global Development Promotion Center Network to put in place an efficient working mechanism and platform for alignment in development policies, coordination of development resources, and facilitation of joint actions.
Shakeel Ahmad Ramay, CEO of the Asian Institute of Eco-civilization Research and Development in Pakistan, told the Global Times that he believes that the GDI, which advocates that development “holds the master key” to solving problems and ensuring sustainable peace, is what the world is desperately seeking now. He noted that apart from Africa, other Global South countries are benefiting from the GDI and China’s development dividends.
“Without sharing the dividends of development, we cannot preach ethics, and the dream of peace will remain a dream. Without cooperation, concrete programs, and the allocation of financial resources, we cannot achieve these goals. China is cognizant of this reality and has launched numerous programs and provided financial support such as $4 billion to the Global Development and South-South Cooperation Fund,” he said.
Musa noted to the Global Times that “China initiated the concept of the ‘right to development.’ The GDI also offers action-based policies and result-based projects.”
According to China’s Foreign Ministry, over the last three years, the GDI has made remarkable achievements. Over 100 countries and some international organizations have given support to or taken part in the initiative. More than 80 countries have joined the Group of Friends of the GDI. China has set up a Global Development and South-South Cooperation Fund, which has financed over 150 programs. The Global Development Promotion Center Network is bringing more members on board.
“The GDI was put forward by China, but its opportunities and benefits are shared by the world. On the path toward development and prosperity, no country or individual should be left behind. This is the vision of the GDI, as well as the goal advocated by the UN,” Mao Ning said at a regular media briefing on September 20, 2024.
Respect for diverse civilizations
In March 2023, Xi proposed the GCI for the first time at the CPC in Dialogue with World Political Parties High-Level Meeting, advocating for the respect of the diversity of world civilizations, the promotion of common values for all humanity, the emphasis on the inheritance and innovation of civilizations, and the strengthening of international cultural exchange and cooperation.
The initiative is another major public product offered to the world by China after the GDI and the GSI. It sends a sincere call to the world to deepen the dialogue of civilization exchanges and promote the progress of human civilization through inclusiveness and mutual learning, contributing Chinese wisdom and solutions to promote a higher level of international cooperation, experts said.
Shahbaz Khan, director of the UNESCO Regional Office, told the Global Times that the GCI aligns with UNESCO’s mission to foster respect for cultures worldwide, particularly those that possess outstanding universal value.
China now boasts 59 World Heritage sites, including the Beijing Central Axis, a “remarkable example” of urban heritage that showcases advancements from the Yuan Dynasty (1279-1368) to the present day, Khan said.
In recent years, China has enhanced communication and coordination with UNESCO, working with all parties to promote the implementation of the United Nations’ Global Agenda for Dialogue among Civilizations, strengthening dialogue and exchange among civilizations, and increasing the sharing of values, concepts, and experiences behind the policies of various countries, jointly exploring solutions to global challenges and issues.
Ramay noted that the GCI, together with GDI and GSI, “negates the idea of superiority and present the vision of equality and equity built on respect for diversity and cultures. The vision categorically highlighted the need for a fair and just system where everyone (country or human) can pursue the dream of development and peace.”
“These initiatives promote the idea of resolving conflicts or disputes through dialogue and development to strengthen peaceful and cooperative co-existence. Thus, the world welcomed the initiative, especially the Global South,” he said.
https://www.globaltimes.cn/page/202409/1320506.shtml
View original content:https://www.prnewswire.com/news-releases/global-times-chinas-gdi-gsi-and-gci-foster-global-cooperation-address-urgent-challenges-302261752.html
SOURCE Global Times
Technology
The pioneered intelligent airborne detection technology by State Grid Zaozhuang Power Supply Company
Published
5 hours agoon
September 29, 2024By
ZAOZHUANG, China, Sept. 29, 2024 /PRNewswire/ — The traditional manual detection is likely to be made towards the phase A in the lower layer; while the intelligent airborne detection is actually made towards the phase A in the upper layer. This represents the comparison result for the discharge hidden danger of the No. 23 tower insulator of the 10 kV cement plant line in the 110 kV Tendong Substation outgoing line by different detection methods, yet the accurate judgment brought by the innovative application of unmanned aerial vehicle airborne ultrasonic partial discharge detection technology.
By the end of August 12, the application of the self-developed UAV airborne ultrasonic partial discharge detection technology by State Grid Zaozhuang Power Supply Company has reached a year, during which, a total of 450 unmanned aerial vehicles were detected, 63 hidden hazards of partial discharge were identified, leading to a reduction of 37 equipment failures, the reduction of the power distribution network fault outage rate by 68%, and improving the power supply reliability rate to 99.982%.
According to Zhang Jianhua, Director of the Operation and Maintenance Department of Zaozhuang Power Supply Company, this technology is initiated in China, rewriting the tradition and passivity of power distribution network partial discharge fault investigation by hearing voice manually over a long time, and leaping into the era of intelligent imaging diagnosis. As the capillaries of the large power grid connecting thousands of households, the current average height of the distribution network tower is 15 to 18 meters, and both the insulators and cable heads on the top of these towers are important detection parts, the improvement in traditional manual detection methods is badly needed. To this end, they, by boldly integrating UAV with local imaging inspection technology, used the advantages of UAV multi-angle close-range inspection to carry out partial discharge inspection, innovated and broadened the technical dimension of aerial patrol, took the lead in enabling accurate collection of voiceprint local release data, and completed demonstration of putting the technology into practical application.
Innovation is not as simple as one plus one, the technology research took a year. Since June 2022, by means of hardware structure transformation and multi-algorithm fusion optimization, they have successively overcome a range of problems such as the inability of traditionally partial discharge inspection to lock the discharge part, the partial discharge detection of UAV propeller noise interference, and the geographical conditions of inspection, and enabled the high-quality and efficient partial discharge imaging detection of the power distribution network. In July 2023, the technology was put into trial use, and later in December of the same year, it was inspected and accepted by the State Grid Shandong Electric Power Company.
During the trial use, the Zao Zhuang Power Supply Company, by giving full play to its advantages as being directly managed and operated by State Grid Corporation of China, coordinated 162 power distribution network lines, and allocated 35 UAVs for the seven power supply centers affiliated to it in a unified manner, and trained 26 drone pilots. Beyond that, it repeatedly carried out technical verification and optimization in the trial use, reducing the time to inspect the base tower 1 from 25 minutes to 15 minutes, indicating an efficiency improvement by 1.8 times compared to the traditional manual inspection, making the accuracy reach 100%.
Instead of revolving around the tower, staring at the equipment for a long time, and being anxious but unable to do anything, Li Yanlin, the specialist staff from Operation and Maintenance Department of Zaozhuang Power Supply Company expressed the pleasure that thanks to the intelligent airborne detection technology, the partial discharge failures found in the power distribution network could be eliminated as soon as they are identified, leading to the great transformation of the operation and maintenance of distribution network from “eliminating present problems” to “preventing them before they are present”, and the formation of a sound situation of intelligent operation and maintenance.
View original content:https://www.prnewswire.com/apac/news-releases/the-pioneered-intelligent-airborne-detection-technology-by-state-grid-zaozhuang-power-supply-company-302261739.html
SOURCE State Grid Zaozhuang Power Supply Company
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