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VIAVI Announces First Quarter Fiscal 2025 Results

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CHANDLER, Ariz., Oct. 31, 2024 /PRNewswire/ — VIAVI (NASDAQ: VIAV) today reported results for its first quarter ended September 28, 2024 with the following highlights.

First Quarter

Net revenue of $238.2 million, down $9.7 million or 3.9% year-over-yearGAAP operating margin of 4.8%, down 170 bps year-over-yearNon-GAAP operating margin of 10.0%, down 240 bps year-over-yearGAAP net loss of $1.8 million, down $11.6 million or 118.4% year-over-yearNon-GAAP net income of $12.4 million, down $7.1 million or 36.4% year-over-year GAAP diluted loss per share of $(0.01), down $0.05 or 125.0% year-over-yearNon-GAAP diluted earnings per share (EPS) of $0.06, down $0.03 or 33.3% year-over-year

“VIAVI’s Q1FY25 revenue came in slightly below the midpoint of our guidance, with weaker demand in NSE partially offset by stronger OSP performance. On a positive side, we are starting to see a pickup in the NSE order momentum with our advanced fiber products such as 800G and recently announced 1.6Tb, being particularly strong. This aligns with our expectations for the beginning of NSE demand recovery in second half of FY25,” said Oleg Khaykin, VIAVI’s President and Chief Executive Officer.

Financial Overview:

The tables below (in millions, except percentage, and per share data) provide comparisons of quarterly results to prior periods, including sequential quarterly and year-over-year changes. A full reconciliation between the GAAP and non-GAAP measures included in the tables is contained in this release under the section titled “Use of Non-GAAP (Adjusted) Financial Measures.”

First Quarter Ended September 28, 2024

GAAP Results

Q1

Q4

Q1

Change

FY 2025

FY 2024

FY 2024

Q/Q

Y/Y

Net revenue

$         238.2

$         252.0

$         247.9

(5.5) %

(3.9) %

Gross margin

57.1 %

57.8 %

58.2 %

(70) bps

(110) bps

Operating margin

4.8 %

(2.3) %

6.5 %

710 bps

(170) bps

Income (loss) from operations

$           11.5

$           (5.7)

$           16.0

301.8 %

(28.1) %

Net (loss) income per share

(0.01)

(0.10)

0.04

90.0 %

(125.0) %

Non-GAAP Results

Q1

Q4

Q1

Change

FY 2025

FY 2024

FY 2024

Q/Q

Y/Y

Gross margin

59.1 %

59.6 %

60.1 %

(50) bps

(100) bps

Operating margin

10.0 %

10.9 %

12.4 %

(90) bps

(240) bps

Income from operations

$           23.9

$           27.5

$           30.8

(13.1) %

(22.4) %

Earnings per share

0.06

0.08

0.09

(25.0) %

(33.3) %

Net Revenue by Segment

Q1

Q4

Q1

Change

FY 2025

FY 2024

FY 2024

Q/Q

Y/Y

Network Enablement

$            141.6

$            158.5

$            150.0

(10.7) %

(5.6) %

Service Enablement

17.8

23.7

20.4

(24.9) %

(12.7) %

Optical Security and Performance Products

78.8

69.8

77.5

12.9 %

1.7 %

Total

$            238.2

$            252.0

$            247.9

(5.5) %

(3.9) %

 

Americas, Asia-Pacific and EMEA customers represented 37.2%, 36.1% and 26.7%, respectively, of total net revenue for the quarter ended September 28, 2024.As of September 28, 2024, the Company held $497.9 million in total cash, short-term investments and short-term restricted cash.As of September 28, 2024, the Company had $250 million aggregate principal amount of 1.625% Senior Convertible Notes and $400 million aggregate principal amount of 3.75% Senior Notes with a total net carrying value of $637.6 million.During the fiscal quarter ended September 28, 2024, the Company generated $13.5 million of cash flows from operations.

Business Outlook for the Second Quarter of Fiscal 2025

For the second quarter of fiscal 2025 ending December 28, 2024, the Company expects net revenue to be between $255 million to $265 million and non-GAAP EPS to be between $0.09 to $0.11.

With respect to our expectations above, the Company has not reconciled GAAP net loss per share to non-GAAP EPS in this press release because it is unable to provide a meaningful or accurate estimate of certain reconciling items described in the “Use of Non-GAAP (Adjusted) Financial Measures” section below and the information is not available without unreasonable effort as a result of the inherent difficulty of forecasting the timing and/or amounts of certain items, including certain charges related to restructuring, acquisition, integration and related charges. In addition, the Company believes such reconciliations would imply a degree of precision that may be confusing or misleading to investors.

Conference Call

The Company will discuss these results and other related matters at 1:30 p.m. Pacific Time on October 31, 2024 in a live webcast, which will also be archived for replay on the Company’s website at https://investor.viavisolutions.com.  The Company will post supplementary slides outlining the Company’s latest financial results on https://investor.viavisolutions.com under the “Quarterly Results” section concurrently with this earnings press release. This press release is being furnished as a Current Report on Form 8-K with the Securities and Exchange Commission, and will be available at www.sec.gov.

About VIAVI Solutions

VIAVI (NASDAQ: VIAV) is a global provider of network test, monitoring and assurance solutions for telecommunications, cloud, enterprises, first responders, military, aerospace and railway. VIAVI is also a leader in light management technologies for 3D sensing, anti-counterfeiting, consumer electronics, industrial, automotive, government and aerospace applications.

Learn more about VIAVI at www.viavisolutions.com. Follow us on VIAVI Perspectives, LinkedIn and YouTube.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include any expectation, anticipation or guidance as to future financial performance, including future revenue, gross margin, operating expense, operating margin, profitability targets, cash flow and other financial metrics, as well as the impact and duration of certain trends and market position and conditions, including market stabilization and recovery. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. In particular, the Company’s ability to predict future financial performance continues to be difficult due to, among other things: (a) continuing general limited visibility across many of our product lines; (b) quarter-over-quarter product mix fluctuations, which can materially impact profitability measures due to the broad gross margin ranges across our portfolio; (c) consolidations in our industry and customer base; (d) competitive pressures; (e) unforeseen changes or deceleration in the demand for current and new products, technologies, services, delays or unforeseen events in the roll-out of new industry platforms or evolving technology such as 3D sensing and customer purchasing delays due to macroeconomic conditions, tightening of expenditures or as they assess or transition to such new technologies and/or architectures, all of which limit near-term demand visibility, and could negatively impact potential revenue; (f) continued decline of average selling prices across our businesses; (g) notable seasonality and a significant level of in-quarter book-and-ship business; (h) various product and manufacturing transfers, site consolidations, product discontinuances and restructuring and workforce reduction plans, including anticipated cost savings associated with such plans; (i) challenges in execution of business strategy; (j) challenges integrating the businesses the Company has acquired and realizing all of the expected benefits and savings; (k) supply chain and materials constraints and the ability of our suppliers and contract manufacturers to meet production and delivery requirements to our forecasted demand; (l) potential disruptions or delays to our manufacturing and operations due to climate conditions and natural disasters in the regions where we operate, such as wildfires, drought conditions and related water shortages in Arizona, as well as wildfires in Northern California and related blackouts and power outages in that region; (m) the uncertain and ongoing impact to our supply chain of military conflicts, such as the ongoing conflict between Russia and Ukraine and the ongoing conflict between Israel and Hamas and the expansion of conflict in the Middle East, including in Lebanon and with Iran, tariffs, sanctions and other trade measures imposed by domestic and foreign governments, adverse actions and escalating tensions with foreign governments, including China, and the possibility of escalation of “trade wars,” cyber-attacks, and retaliatory measures; (n) the impact of infectious disease outbreaks, epidemics, and pandemics on our financial results, revenues, customer demand, business operations and manufacturing and on the business operations of our customers, contract manufacturers and suppliers; and (o) inherent uncertainty related to global markets, including inflationary pressures, recessions, tightening monetary policy and liquidity, and the effect of such markets on demand for our products. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. For more information on the risks and uncertainties associated with the Company’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of the Company’s filings with the Securities and Exchange Commission, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. The forward-looking statements contained in this press release are made as of the date thereof and the Company assumes no obligation to update such statements. We have not filed our Form 10-Q for the quarter ended September 28, 2024. As a result, all financial results described in this earnings release should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates, that are identified prior to the time we file the Form 10-Q.

Contact Information

Investors:
Vibhuti Nayar
408-404-6305
vibhuti.nayar@viavisolutions.com

Press: 
Amit Malhotra
202-341-8624
amit.malhotra@viavisolutions.com

The following financial tables are presented in accordance with GAAP, unless otherwise specified.

-SELECTED PRELIMINARY FINANCIAL DATA –

 

VIAVI SOLUTIONS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share data)

(unaudited)

PRELIMINARY

Three Months Ended

September 28,
2024

September 30,
2023

Net revenue

$                 238.2

$                 247.9

Cost of revenues

98.8

100.0

Amortization of acquired technologies

3.3

3.5

Gross profit

136.1

144.4

Operating expenses:

Research and development

49.4

49.9

Selling, general and administrative

74.1

77.2

Amortization of other intangibles

1.1

2.1

Restructuring and related benefits

(0.8)

 Total operating expenses

124.6

128.4

Income from operations

11.5

16.0

Interest and other income, net

3.2

10.2

Interest expense

(7.5)

(7.8)

 Income before income taxes

7.2

18.4

Provision for income taxes

9.0

8.6

Net (loss) income

$                   (1.8)

$                     9.8

Net (loss) income per share:

 Basic

$                 (0.01)

$                   0.04

 Diluted

$                 (0.01)

$                   0.04

 Shares used in per share calculations:

 Basic

222.0

222.0

 Diluted

222.0

224.2

The preliminary financial statements are estimated based on our current information.

 

VIAVI SOLUTIONS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, unaudited)

PRELIMINARY

September 28, 2024

June 29, 2024

ASSETS

Current assets:

Cash and cash equivalents

$                         467.9

$                         471.3

Short-term investments

25.2

19.9

Restricted cash

4.8

5.0

Accounts receivable, net

203.1

213.1

Inventories, net

93.2

96.5

Prepayments and other current assets

69.8

70.7

Total current assets

864.0

876.5

Property, plant and equipment, net

230.5

228.2

Goodwill, net

461.2

452.9

Intangibles, net

34.0

38.2

Deferred income taxes

86.1

82.5

Other non-current assets

61.8

58.0

  Total assets

$                     1,737.6

$                     1,736.3

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$                           47.4

$                           50.4

Accrued payroll and related expenses

44.4

48.2

Deferred revenue

63.7

65.7

Accrued expenses

23.8

25.3

Other current liabilities

53.5

57.5

Total current liabilities

232.8

247.1

Long-term debt

637.6

636.0

Other non-current liabilities

165.1

171.6

  Total liabilities

1,035.5

1,054.7

Total stockholders’ equity

702.1

681.6

Total liabilities and stockholders’ equity

$                     1,737.6

$                     1,736.3

The preliminary financial statements are estimated based on our current information.

 

VIAVI SOLUTIONS INC.

REPORTABLE SEGMENT INFORMATION

(in millions, unaudited)

PRELIMINARY

Three Months Ended September 28, 2024

Network and Service Enablement

Network
Enablement

Service
Enablement

Network and
Service
Enablement

Optical Security
and Performance
Products

Other Items (1)

Consolidated
GAAP Measures

Net revenue

$           141.6

$             17.8

$           159.4

$             78.8

$                   —

$           238.2

Gross profit

$             86.3

$             10.8

$             97.1

$             43.6

$                 (4.6)

$           136.1

Gross margin

60.9 %

60.7 %

60.9 %

55.3 %

57.1 %

Operating (loss) income

$             (7.3)

$             31.2

$               (12.4)

$             11.5

Operating margin

(4.6) %

39.6 %

4.8 %

Three Months Ended September 30, 2023

Network and Service Enablement

Network
Enablement

Service Enablement

Network and
Service
Enablement

Optical Security
and Performance
Products

Other Items (1)

Consolidated
GAAP Measures

Net revenue

$           150.0

$             20.4

$           170.4

$             77.5

$                   —

$           247.9

Gross profit

$             94.6

$             13.7

$           108.3

$             40.7

$                 (4.6)

$           144.4

Gross margin

63.1 %

67.2 %

63.6 %

52.5 %

58.2 %

Operating income

$               1.5

$             29.3

$               (14.8)

$             16.0

Operating margin

0.9 %

37.8 %

6.5 %

(1) See Reconciliation of GAAP Measures from Continuing Operations to Non-GAAP Measures below for details of Other Items.

The preliminary financial schedules are estimated based on our current information.

Use of Non-GAAP (Adjusted) Financial Measures

The Company provides non-GAAP gross margin, non-GAAP operating margin, non-GAAP net income, non-GAAP EPS, EBITDA and adjusted EBITDA financial measures as supplemental information regarding the Company’s operational performance. The Company uses the measures disclosed in this release to evaluate the Company’s historical and prospective financial performance, as well as its performance relative to its competitors. Specifically, management uses these items to further its own understanding of the Company’s core operating performance, which the Company believes represent its performance in the ordinary, ongoing and customary course of its operations. Accordingly, management excludes from core operating performance items such as those relating to certain purchase price accounting adjustments, amortization of acquisition-related intangibles, stock-based compensation, legal settlements, restructuring, changes in fair value of contingent consideration liabilities and certain investing and acquisition related expenses and other activities that management believes are not reflective of such ordinary, ongoing and core operating activities.

The Company believes providing this additional information allows investors to see Company results through the eyes of management. The Company further believes that providing this information allows investors to better understand the Company’s financial performance and, importantly, to evaluate the efficacy of the methodology and information used by management to evaluate and measure such performance.

The non-GAAP adjustments described in this release are excluded by the Company from its GAAP financial measures because the Company believes excluding these items enables investors to evaluate more clearly and consistently the Company’s core operational performance. The non-GAAP adjustments are outlined below.

Cost of revenues, costs of research and development and costs of selling, general and administrative: The Company’s GAAP presentation of gross margin and operating expenses may include (i) additional depreciation and amortization from changes in estimated useful life and the write-down of certain property, equipment and intangibles that have been identified for disposal but remained in use until the date of disposal, (ii) charges such as severance, benefits and outplacement costs related to restructuring plans, (iii) costs for facilities not required for ongoing operations, and costs related to the relocation of certain equipment from these facilities and/or contract manufacturer facilities, (iv) stock-based compensation, (v) amortization expense related to acquired intangibles, (vi) changes in fair value of contingent consideration liabilities and (vii) other charges unrelated to our core operating performance comprised mainly of acquisition related transaction costs, integration costs related to acquired entities, litigation and legal settlements and other costs and contingencies unrelated to current and future operations, including transformational initiatives such as the implementation of simplified automated processes, site consolidations, and reorganizations. The Company excludes these items in calculating non-GAAP gross margin, non-GAAP operating margin, non-GAAP net income, non-GAAP EPS, EBITDA and adjusted EBITDA.

Non-cash interest expense and other expense: The Company excludes certain investing expenses, including accretion of debt discount, and other non-cash activities that management believes are not reflective of such ordinary, ongoing and core operating activities, when calculating non-GAAP net income and non-GAAP EPS.

Income tax expense or benefit: The Company excludes certain non-cash tax expense or benefit items, such as the utilization of net operating losses where valuation allowances were released, intra-period tax allocation benefit and the tax effect for amortization of non-tax deductible intangible assets, when calculating non-GAAP net income and non-GAAP EPS.

Interest, taxes, depreciation, amortization and other adjustments: The Company’s EBITDA calculation primarily excludes interest income and other income (expense), interest expense, taxes, depreciation and amortization, and other items that are not part of its core operating performance described above. The Company’s adjusted EBITDA excludes items in addition to the items excluded from the EBITDA calculation, such as stock-based compensation, restructuring, gain or loss on sale of available for-sale investments, changes in fair value of contingent consideration liabilities arising from prior acquisitions and other charges related to activities that are not part of its core operating performance described above. Management believes adjusted EBITDA is a helpful indicator of the Company’s core operational cash flow.

Non-GAAP financial measures are not in accordance with, preferable to, or an alternative for, generally accepted accounting principles in the United States. The GAAP measure most directly comparable to non-GAAP net income is net income. The GAAP measure most directly comparable to non-GAAP EPS is net income per share. The Company believes these GAAP measures alone are not fully indicative of its core operating expenses and performance and that providing non-GAAP financial measures in conjunction with GAAP measures provides valuable supplemental information regarding the Company’s overall performance.

VIAVI SOLUTIONS INC.

RECONCILIATION OF GAAP MEASURES FROM CONTINUING OPERATIONS

TO NON-GAAP MEASURES

(in millions, except per share data)

(unaudited)

PRELIMINARY

The following tables reconcile GAAP measures to non-GAAP measures:

Three Months Ended

September 28, 2024

September 30, 2023

Gross
Profit

Gross
Margin

Gross
Profit

Gross
Margin

GAAP measures

$     136.1

57.1 %

$     144.4

58.2 %

 Stock-based compensation

1.2

0.5 %

1.2

0.5 %

 Other charges (benefits) unrelated to core operating performance

0.1

0.1 %

(0.1)

— %

 Amortization of intangibles

3.3

1.4 %

3.5

1.4 %

Total related to Cost of Revenue

4.6

2.0 %

4.6

1.9 %

Non-GAAP measures

$     140.7

59.1 %

$     149.0

60.1 %

Three Months Ended

September 28, 2024

September 30, 2023

Operating
Income

Operating
Margin

Operating
Income

Operating
Margin

GAAP measures

$       11.5

4.8 %

$       16.0

6.5 %

 Stock-based compensation

12.7

5.3 %

11.2

4.5 %

 Change in fair value of contingent liability

(3.5)

(1.5) %

(1.4)

(0.6) %

 Acquisition and integration related charges

0.6

0.3 %

— %

 Other (benefits) charges unrelated to core operating performance (1)

(0.5)

(0.2) %

0.2

0.1 %

 Amortization of intangibles

4.4

1.8 %

5.6

2.2 %

 Restructuring and related charges

— %

(0.8)

(0.3) %

 Litigation settlement

(1.3)

(0.5) %

— %

Total related to Cost of Revenue and Operating Expenses

12.4

5.2 %

14.8

5.9 %

Non-GAAP measures

23.9

10.0 %

30.8

12.4 %

Three Months Ended

September 28, 2024

September 30, 2023

Net (Loss)
Income

Diluted

 EPS

Net
Income

Diluted

 EPS

GAAP measures

$       (1.8)

$     (0.01)

$         9.8

$       0.04

Items reconciling GAAP Net (Loss) Income and EPS to Non-GAAP Net Income and EPS:

 Stock-based compensation

12.7

0.06

11.2

0.05

 Change in fair value of contingent liability

(3.5)

(0.01)

(1.4)

 Acquisition and integration related charges

0.6

 Other (benefits) charges unrelated to core operating performance (1)

(0.5)

0.2

 Amortization of intangibles

4.4

0.02

5.6

0.02

 Restructuring and related benefits

(0.8)

   Litigation settlement

(1.3)

(0.01)

(7.3)

(0.03)

 Non-cash interest expense and other expense

1.1

0.01

1.2

0.01

 Provision for income taxes

0.7

1.0

    Total related to Net (Loss) Income and EPS

14.2

0.07

9.7

0.05

Non-GAAP measures

$       12.4

$       0.06

$       19.5

$       0.09

Shares used in per share calculation for Non-GAAP EPS

224.0

224.2

Note: Certain totals may not add due to rounding.

(1)  Included in the three months ended September 28, 2024 is a gain of $0.9 million on the sale of assets previously classified as held for sale and other charges unrelated to core operating performance of $0.4 million.

The preliminary financial schedules are estimated based on our current information.

 

VIAVI SOLUTIONS INC.

RECONCILIATION OF GAAP MEASURES FROM CONTINUING OPERATIONS

TO ADJUSTED EBITDA

(in millions, unaudited)

PRELIMINARY

Three Months Ended

September 28,
2024

September 30,
2023

GAAP Net (Loss) Income

$                  (1.8)

$                    9.8

Interest and other income, net (1)

(3.2)

(10.2)

Interest expense

7.5

7.8

Provision for income taxes

9.0

8.6

Depreciation

9.7

9.8

Amortization

4.4

5.6

EBITDA

25.6

31.4

Restructuring and related benefits

(0.8)

Stock-based compensation

12.7

11.2

Change in fair value of contingent liability

(3.5)

(1.4)

Acquisition and integration related charges

0.6

Other (benefits) charges unrelated to core operating performance (2)

(1.9)

0.1

Adjusted EBITDA

$                  33.5

$                  40.5

Note: Certain totals may not add due to rounding.

(1) Includes favorable litigation settlement of $7.3 million recorded as a gain to Interest and other income, net in the Consolidated Statements of Operations for the three months ended September 30, 2023. 

(2) Included in the three months ended September 28, 2024 is a gain on litigation settlement of $1.3 million, a gain on the sale of assets previously classified as held for sale of $0.9 million and other charges unrelated to core operating performance of $0.3 million.

The preliminary financial schedules are estimated based on our current information.

 

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SOURCE VIAVI Financials

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Technology

Global Times: Dam benefits communities in Xinjiang, paving way for a secure ecological future for region

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By

BEIJING, Oct. 31, 2024 /PRNewswire/ — In the past, the Yarkand River in Xinjiang would flood annually during the rainy season, causing destruction to infrastructure, submerging farmland, and engulfing homes and villages. Bubishare, a Uygur resident who grew up in a village upstream of the river, still vividly recalls the cries of helplessness from those affected by the devastating floods before the construction of the Aratax water conservation project. Thanks to the project, these nightmares are now a thing of the past for local residents.

Located in the Karakorum Mountain Valley, the Aratax water conservation project, known as the “Xinjiang’s Three Gorges” project for its grandeur and construction challenges, was constructed to control the Yarkant River. The 1,289-km-long Yarkant River in the Tarim Basin is Xinjiang’s most flood-prone river, and the towering dam can withstand the turbulent floodwaters in a reservoir with a storage capacity of 2.2 billion cubic meters. 

Today, this dam is gushing with clean water sources, stable power, and also gushing with hope for the minority groups on the desert.

In August 2023, President Xi Jinping urged firmly grasping the strategic positioning of Xinjiang in the overall national situation and better building a beautiful Xinjiang in the process of pursuing Chinese modernization, the Xinhua News Agency reported. 

Xi, also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, demanded thorough, meticulous, concrete and sustained efforts to develop a beautiful Xinjiang that is united, harmonious, prosperous, and culturally advanced, with healthy ecosystems and people living and working in contentment, in the process of pursuing Chinese modernization.

The building of a beautiful Xinjiang extends from a dam to a relocated ethnic minority community. The relocation of villagers to new homes with improved living conditions, as a result of the dam project, has brought green energy, green fields, and a green dream of prosperity to the villagers.

Path to build new hope

After a challenging 6-hour journey along the rugged Tasha Ancient Road, the Global Times reporter finally laid eyes on the Aratax dam nestled in the mountainside deep within the Karakorum Mountain. Without firsthand experience of this journey, it is difficult to fathom the obstacles encountered during the entire process of researching, designing, and constructing the dam – no roads on the ground, barren mountains devoid of trees, transportation primarily by feet, and communication mainly through shouting. Accidents like overturning were frequent due to the rugged environment.

The Xinhua Hydropower Generation Co, Ltd, a subsidiary of the China National Nuclear Corporation, began construction on the water conservation project in 2011, with a total investment of 10.98 billion yuan ($1.5 billion). The Aratax project has played a crucial role in flood control, irrigation, and power generation. The river plain, with a population of 4 million and an irrigated area of over 6.5 million mu (433,333 hectares), is the largest irrigated area in Xinjiang and the fourth-largest in China, benefiting 2.4 million people in the region.

Zhang Yibo, a frontline employee at the developer, told the media, “Over a decade ago, this place was even more desolate and rarely visited, and our water conservancy experts achieved a remarkable feat here.” Confronted by the harsh natural surroundings, the builders traversed mountains, camped under the open sky, drank from rivers when thirsty, and rested in tents outdoor, with a firm passion for building a sustainable dam for locals.

From July 18 to August 17, 2021, the Aratax water conservancy project successfully connected four units to the grid in just one month, a rare accomplishment in the history of global hydropower development. This hydropower station significantly alleviated the power shortage in the four southern prefectures in Xinjiang. The project’s designed annual power generation is 21.86 billion kilowatt-hours, saving 883,100 tons of standard coal annually while reducing smoke and dust emissions by 175,300 tons, and enabling the residents of southern Xinjiang to access cleaner energy.

The dam’s incorporation of advanced technology, such as unmanned compaction technology using the Beidou satellite, improved digital visualization of the construction progress, and magnetic induction devices to assist in fish migration, have been notable features of its intelligent design. 

“Following the completion of this project, it has greatly supported our irrigation efforts. Economic crops like sea buckthorn and apples are now extensively cultivated in the desert, leading to significant improvements in both economic and ecological benefits,” Fan Kexing, Party secretary of Tong’an township, Kashi, Xinjiang, told the Global Times. “Previously, the area was plagued by strong winds and sandstorms, with sand and gravel striking house windows with a loud thud, but this phenomenon has now been alleviated,” Fan noted.

Path to enjoy better life

Over the last six years, the residents of the remote Karakorum Mountains in Xinjiang have experienced incredible changes. Having previously lived in the vast desert with only three mu of arable land per person a decade ago, they had to trek seven kilometers to the mountains for drinking water, which needed to be purified before consumption. Power outages lasting for days at a time were a common occurrence. However, these challenges are now a thing of the past. 

Today, the residents have an average annual income exceeding 10,000 yuan, live in beautifully decorated homes with their ethnicity characteristics, and enjoy access to closer schools, more job opportunities, and reliable water and electricity services. 

Thanks to the construction of the dam, in August 2018, 4,243 individuals from over 1,000 households in Kusilafu township, Aketao county were resettled in Tong’an township, over 100 kilometers away. This diverse community, made up of Uygurs, Kyrgyz, Tajiks, and other ethnic groups, have embraced their new beginning. 

Zhou Jingfang, an expert at the Xinhua Hydropower Generation Co who led the relocation work, still remembers the days of tirelessly conducting site surveys, clearing land, mobilizing villagers to relocate, planning and designing new sites, building resettlement houses, greening rural areas, reclaiming farmland, introducing livestock, and setting up factories, schools, clinics, and markets. 

He told the Global Times that the dedicated team members worked long hours in harsh conditions, and navigated countless checkpoints and roads in the vast desert and rugged mountains without complaint. Nowadays, the villagers are no longer facing the endless desert of despair as they did in the past.

When discussing stories of relocation, 25-year-old Bubishare said, “Our village now has schools, factories, and employment opportunities. The village has supported us to find more diverse ways to make a living.” 

“We have 20,000 acres of farmland, where we not only grow food but also operate cash crops cooperatives. This area is a seabuckthorn forest, and our village recently constructed a seabuckthorn fruit processing plant. Our seabuckthorn beer will soon hit the market. With ample water supply, we are confident in our farming endeavors.” Fan shared proudly while standing amid the seabuckthorn forest. 

In a local farmer’s backyard sheep pen, the Global Times reporter observed over 20 Dolan sheep, known as “living banks.” Zhou explained that by raising two Dolan sheep, a farmer can become prosperous within two years due to their high reproductive rate. In Tong’an, many villagers raise Dolan sheep in this manner and enjoy prosperity. 

Tong’an township has also collaborated with local businesses to establish factories, providing employment for local women to produce items made from Xinjiang cotton, such as down jackets and socks for overseas export, ensuring female workers earn at least 2,000-3,000 yuan per month. “The factory is conveniently located, allowing women to balance family responsibilities while earning an income,” Fan informed the Global Times. 

In one factory, a wall in the workshop reads, “Happiness is achieved through hard work.” These words have accurately described how local women in Xinjiang have embarked on the path to modernization through their own hands.

Along the Yarkand River, beyond the Karakorum Mountain, the villagers of Tong’an are employing their diligence and unwavering efforts to write their own happy stories in the desert. They have left behind isolation and poverty, embracing hope and prosperity within short years. In this vibrant land, a new life of perseverance and success is blossoming with vibrant hues.

https://www.globaltimes.cn/page/202408/1318454.shtml

View original content:https://www.prnewswire.com/news-releases/global-times-dam-benefits-communities-in-xinjiang-paving-way-for-a-secure-ecological-future-for-region-302293647.html

SOURCE Global Times

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Global Times: Species thriving thanks to policy, consensus in China

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BEIJING, Oct. 31, 2024 /PRNewswire/ — Under the global framework for biodiversity, more wildlife species are increasing in number and enjoying a better space for living and breeding in China with the help of advanced technology and more popular caring, according to the Chinese delegation from diverse institutes and organizations at the 16th meeting of the Conference of the Parties (COP16) to the Convention on Biological Diversity that is being held in Cali, Colombia.

A prolonged whistle resonated through the sky, prompting visitors to lift their cameras in anticipation of capturing the migratory birds that were arriving. In recent years, tens of thousands of migratory birds such as cormorants fly each autumn to Shenzhen, a subtropical metropolis in South China, making the city one of the most important stops for these birds in the Eastern Hemisphere.

Their numbers are still increasing as the local environment improves. Environmental conservation organizations, including the Mangrove Conservation Foundation (MCF), see the growing population of migratory birds as a signal that urban biodiversity in China is heading in the right direction. 

Only around a few meters away from visitors, a black-faced spoonbill heads down in search of food over the wetlands at the Futian Mangrove National Nature Reserve alongside dozens of its brethren. Meanwhile, in the Futian Mangrove Ecological Park, an Eurasian otter, a species that disappeared from the Shenzhen Bay for nearly 20 years, has re-emerged.  

Chen Yudong, a staff member with the Mangrove Conservation Foundation who focuses on the protection and biodiversity of wetlands, told the Global Times that the Futian Mangrove Ecological Park is currently home to five species listed as National Key Protected Wildlife, including the Eastern imperial eagle, the black-faced spoonbill, and the small Indian civet. 

Additionally, the park has 39 nationally protected wildlife species at the second level (including birds, mammals, and reptiles). From 2015 to 2023, the number of insect species had risen from 109 to 1,224, while bird species had increased from 83 to 220.  

To maintain and improve biodiversity in metropolises like Shenzhen, Chinese environmentalists are exploring the effective application of emerging technologies and analytical methods in biodiversity monitoring, such as bioacoustics, weather radar data, and artificial intelligence, according to Insights for Cities on Biodiversity, an initiative focusing on how to sustain urban biodiversity, published in Shenzhen in September. 

For instance, during the migratory season, weather radar is being promoted to analyze and predict the flight paths of bird flocks, informing the implementation of lighting management strategies. This technology can help reduce accidents involving birds colliding with tall buildings or windows, particularly at night.

The delegation of the conservation foundation brought the initiative to COP16 and shared China’s experience with people who are concerned about how global biodiversity is being impacted by the continuously expanding urban areas around the world. 

Chen said that these projects and technologies are all aimed at speeding up achieving the global target set for 2030 and beyond to safeguard and sustainably use biodiversity, which was clarified in the framework, also known as the Kunming-Montreal Global Biodiversity Framework adopted at the COP15 during the Chinese presidency.

Shenzhen is not the only city that protects wetlands and preserves an international channel for migratory birds. Black-faced spoonbills have also been observed in the wetlands in East China’s Zhejiang and Fujian provinces and South China’s Guangxi.

Li Cheng, founder of the Xizijiang Ecological Conservation Center, has also been encouraged and guided by the biodiversity framework. 

“Since the COP15 was held in Kunming, I have felt the growing emphasis on ecological and biological protection from the public and authorities. More people are aware of the importance of sustaining the populations of each species on the Earth through public outreach programs,” Li told the Global Times, noting growing social consensus on biodiversity conservation seen in his daily work.

The infrared cameras set up by Li’s patrol team around the Wuqinzhang Mountain in Guangdong have recently captured additional pangolin movements, further bolstering Li’s confidence that the population of these endangered creatures is increasing.

Li still remembers the excitement he felt when one infrared camera first captured a pangolin at the end of 2018 and the night when he and colleagues repeatedly checked the pangolin’s photo multiple times. 

Chinese pangolins were assessed as “critically endangered” by the IUCN Red List of Endangered Species in 2019 and was even thought to be functionally extinct at the time of its assessment.

Now more and more people, including local villagers who have joined the patrol team, have begun to devote their lives to protecting pangolins. To improve the efficiency of their conservation efforts, Li noted that in addition to infrared cameras, a mobile application especially developed for patrol personnel has been put into use. The app is constantly updated with real-time information on the pangolins, thereby informing those on patrol of urgent situations.

“We have begun to shift our priorities and are more focused on restoring the pangolins’ habitat and making more creative use of conservation technologies,” Li noted.

View original content:https://www.prnewswire.com/news-releases/global-times-species-thriving-thanks-to-policy-consensus-in-china-302293621.html

SOURCE Global Times

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Shandong Jining: Achieve full coverage of green power and green certificate services

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JINING, China, Nov. 1, 2024 /PRNewswire/ — State Grid Jining Power Supply Co. and Jining City Energy Bureau have recently established a green power green certificate service centre, with 14 county-level green power green certificate service stations already operational. This is the first instance in the province of a municipal power supply company achieving comprehensive green power green certificate service coverage.

State Grid Jining Power Supply Company attaches great importance to the green power ‘green certificate’ market-oriented trading services. By inviting experts from Shandong Power Trading Centre to give lectures and guidance, preparing green power green certificate publicity materials, news releases, short videos, business window publicity, customer visits and other channels, it promotes green power consumption by market players.

The establishment of the Jining Green Power Green Certificate Service Centre represents a significant step forward in the promotion of Green Power and the energy consumption revolution in Jining. The Jining Green Power Green Certificate Service Centre is dedicated to offering comprehensive green power green certificate services to a broad customer base. These include policy consultation, bill interpretation, transaction assistance and other services. The aim is to enhance understanding of green power green certificate policy among enterprises, facilitate active participation in green power green certificate transactions and drive the growth of green power consumption and the green certificate transaction market. This will inject new vitality into the local economy’s low-carbon transformation and green development.

The next step for State Grid Jining Power Supply Company is to leverage the establishment of the Green Power Green Certificate Service Centre to capitalise on its own strengths, facilitate collaboration with all relevant parties, and act as a conduit for communication between the government, enterprises, and power trading institutions. This will help to drive the development of a robust green power market system in Jining City.

View original content:https://www.prnewswire.com/apac/news-releases/shandong-jining-achieve-full-coverage-of-green-power-and-green-certificate-services-302293622.html

SOURCE State Grid Jining Power Supply Company

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