Technology
Aviat Networks Announces Fiscal 2025 Second Quarter and Six Month Financial Results
Published
2 years agoon
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Total Revenue of $118.2 million; Up 26.2% Year-Over-Year
Operating Income of $8.0 million; Non-GAAP Operating income of $12.6 million
Adjusted EBITDA of $14.8 million
Non-GAAP Diluted Earnings per Share of $0.82
AUSTIN, Texas, Feb. 4, 2025 /PRNewswire/ — Aviat Networks, Inc. (“Aviat Networks,” “Aviat,” or the “Company”), (Nasdaq: AVNW), the leading expert in wireless transport and access solutions, today reported financial results for its fiscal 2025 second quarter ended December 27, 2024.
Second Quarter Highlights
Completed 18th consecutive quarter of trailing twelve month revenue growthAchieved record quarterly adjusted EBITDA driven by healthy sales, margins, and disciplined cost managementReceived orders for Pasolink above $35 million in the quarter, continuing trend to $140 million in annual run-rate contribution from Pasolink acquisitionReduced net debt position by $10 million and repurchased 34,600 shares in the quarter
Second Quarter Financial Highlights
Total Revenues: $118.2 million, up 26.2% from the same quarter last yearGAAP Results: Gross Margin 34.6%; Operating Expenses $32.9 million; Operating Income $8.0 million; Net Income $4.5 million; Net Income per diluted share (“Net Income per share”) $0.35Non-GAAP Results: Adjusted EBITDA $14.8 million; Gross Margin 35.3%; Operating Expenses $29.1 million; Operating Income $12.6 million; Net Income $10.5 million; Net Income per share $0.82Cash and cash equivalents: $52.6 millionNet debt: $22.3 million
Fiscal 2025 Second Quarter and Six Months Ended December 27, 2024
Revenues
The Company reported total revenues of $118.2 million for its fiscal 2025 second quarter, compared to $93.7 million in the fiscal 2024 second quarter, an increase of $24.5 million or 26.2%. North America revenue of $58.0 million increased by $7.3 million or 14.5%, compared to $50.6 million in the prior year due strength in our private networks business. International revenue of $60.2 million increased by $17.2 million or 39.8%, compared to $43.1 million in the prior year. This growth was due to the addition from the Pasolink acquisition.
For the six months ended December 27, 2024, revenue increased 14.4% to $206.6 million, compared to $180.6 million in the same period of fiscal 2024.
Gross Margins
In the fiscal 2025 second quarter, the Company reported GAAP gross margin of 34.6% and non-GAAP gross margin of 35.3%. This compares to GAAP gross margin of 38.8% and non-GAAP gross margin of 38.8% in the fiscal 2024 second quarter, a decrease of (420) and (350) basis points, respectively. The decrease was driven by the addition of Pasolink and product mix in the quarter.
For the six months ended December 27, 2024, the Company reported GAAP gross margin of 29.4% and non-GAAP gross margin of 30.1%. This compares to GAAP gross margin of 37.4% and non-GAAP gross margin of 37.5% in the same period of fiscal 2024, a decrease of (800) and (740) basis points, respectively.
Operating Expenses
The Company reported GAAP total operating expenses of $32.9 million for the fiscal 2025 second quarter, compared to $32.9 million in the fiscal 2024 second quarter. Non-GAAP total operating expenses, excluding the impact of restructuring charges, share-based compensation, and merger and acquisition expenses for the fiscal 2025 second quarter were $29.1 million, compared to $25.4 million in the prior year, an increase of $3.7 million or 14.7%.
For the six months ended December 27, 2024, the Company reported total operating expenses of $68.3 million, compared to $59.2 million in the same period of fiscal 2024, an increase of $9.0 million or 15.2%. Non-GAAP total operating expenses, excluding the impact of restructuring charges, share-based compensation, and merger and acquisition expenses for the six months ended December 27, 2024 were $59.1 million, compared to $46.7 million in the same period of fiscal 2024, an increase of $12.4 million or 26.6%.
Operating Income
The Company reported GAAP operating income of $8.0 million for the fiscal 2025 second quarter, compared to GAAP operating income of $3.4 million in the fiscal 2024 second quarter, an increase of $4.6 million. Operating income increased primarily due to higher gross margin dollars and flat operating expenses. On a non-GAAP basis, the Company reported operating income of $12.6 million for the fiscal 2025 second quarter, compared to a non-GAAP operating income of $11.0 million in the prior year, an increase of $1.6 million.
For the six months ended December 27, 2024, the Company reported a GAAP operating loss of $(7.6) million, compared to operating income of $8.3 million in the same period of fiscal 2024, a decrease of $(15.9) million. On a non-GAAP basis, the Company reported operating income of $3.1 million, compared to $21.1 million in the same period of fiscal 2024, a decrease of $(18.0) million.
Income Taxes
The Company reported GAAP income tax expense of $1.6 million in the fiscal 2025 second quarter, compared to a GAAP income tax expense of $1.8 million in the fiscal 2024 second quarter.
For the six months ended December 27, 2024, the Company reported a GAAP income tax benefit of $(3.9) million compared to income tax expense of $2.3 million in the same period of fiscal 2024, a decrease of $(6.2) million.
Net Income / Net Income Per Share
The Company reported GAAP net income of $4.5 million in the fiscal 2025 second quarter or GAAP net income per share of $0.35. This compared to GAAP net income of $1.8 million or GAAP net income per share of $0.15 in the fiscal 2024 second quarter. On a non-GAAP basis, the Company reported non-GAAP net income of $10.5 million or non-GAAP net income per share of $0.82, compared to non-GAAP net income of $10.3 million or $0.84 per share in the prior year.
The Company reported GAAP net loss of $(7.4) million for the six months ended December 27, 2024, or GAAP net loss per diluted share of $(0.58). This compared to GAAP net income of $5.3 million or $0.44 per share in the comparable fiscal 2024 period. On a non-GAAP basis, the Company reported net loss of $(0.6) million or net loss per share of $(0.05) for the six months ended December 27, 2024, as compared to non-GAAP net income of $20.0 million or $1.65 per share in the comparable fiscal 2024 period.
Adjusted EBITDA
Adjusted earnings before interest, tax, depreciation and amortization (“Adjusted EBITDA”) for the fiscal 2025 second quarter was $14.8 million, compared to $12.1 million in the fiscal 2024 second quarter, an increase of $2.7 million.
Balance Sheet Highlights
The Company reported $52.6 million in cash and cash equivalents as of December 27, 2024, compared to $64.6 million as of June 28, 2024. As of December 27, 2024, total debt was $74.9 million, an increase of $26.5 million from June 28, 2024.
Fiscal 2025 Full Year Outlook
The Company is leaving its fiscal 2025 full year guidance as previously stated:
Full year Revenue between $430 and $470 millionFull year Adjusted EBITDA between $30.0 and $40.0 million
Conference Call Details
Aviat Networks will host a conference call at 5:00 p.m. Eastern Time (ET) today, February 4, 2025, to discuss its financial and operational results for the fiscal 2025 second quarter ended December 27, 2024. Participating on the call will be Peter Smith, President and Chief Executive Officer; Michael Connaway, Sr. Vice President and Chief Financial Officer; and Andrew Fredrickson, Director of Corporate Development and Investor Relations. Following management’s remarks, there will be a question and answer period.
Interested parties may access the conference call live via the webcast through Aviat Network’s Investor Relations website at investors.aviatnetworks.com/events-and-presentations/events, or may participate via telephone by registering using this online form. Once registered, telephone participants will receive the dial-in number along with a unique PIN number that must be used to access the call. A replay of the conference call webcast will be available after the call on the Company’s investor relations website.
About Aviat Networks
Aviat Networks, Inc. is the leading expert in wireless transport and access solutions and works to provide dependable products, services and support to its customers. With more than one million systems sold into 170 countries worldwide, communications service providers and private network operators including state/local government, utility, federal government and defense organizations trust Aviat with their critical applications. Coupled with a long history of microwave innovations, Aviat provides a comprehensive suite of localized professional and support services enabling customers to drastically simplify both their networks and their lives. For more than 70 years, the experts at Aviat have delivered high performance products, simplified operations, and the best overall customer experience. Aviat is headquartered in Austin, Texas. For more information, visit www.aviatnetworks.com or connect with Aviat Networks on Facebook and LinkedIn.
Forward-Looking Statements
The information contained in this Current Report on Form 8-K includes forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including Aviat’s beliefs and expectations regarding outlook, business conditions, new product solutions, customer positioning, future orders, bookings, new contracts, cost structure, profitability in fiscal 2025, its recent acquisitions and acquisition strategy, process improvements, measures designed to improve internal controls, its ability to maintain effective internal control over financial reporting and management systems and remediate material weaknesses, plans and objectives of management, realignment plans and review of strategic alternatives and expectations regarding future revenue, gross margin, Adjusted EBITDA, operating income or earnings or loss per share. All statements, trend analyses and other information contained herein regarding the foregoing beliefs and expectations, as well as about the markets for the services and products of Aviat and trends in revenue, and other statements identified by the use of forward-looking terminology, including “anticipate,” “believe,” “plan,” “estimate,” “expect,” “goal,” “will,” “see,” “continue,” “delivering,” “view,” and “intend,” or the negative of these terms or other similar expressions, constitute forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, forward-looking statements are based on estimates reflecting the current beliefs, expectations and assumptions of the senior management of Aviat regarding the future of its business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Such forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Forward-looking statements should therefore be considered in light of various important factors, including those set forth in this document. Therefore, you should not rely on any of these forward-looking statements.
Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include the following: the disruption the 4RF and NEC transactions may cause to customers, vendors, business partners and our ongoing business; our ability to integrate the operations of the acquired 4RF and NEC businesses with our existing operations and fully realize the expected synergies of the 4RF and NEC transactions on the expected timeline; disruptions relating to the ongoing conflict between Russia and Ukraine and the conflict in Israel and surrounding areas; continued price and margin erosion in the microwave transmission industry; the impact of the volume, timing, and customer, product, and geographic mix of our product orders; our ability to meet financial covenant requirements; the timing of our receipt of payment; our ability to meet product development dates or anticipated cost reductions of products; our suppliers’ inability to perform and deliver on time, component shortages, or other supply chain constraints; the effects of inflation; customer acceptance of new products; the ability of our subcontractors to timely perform; weakness in the global economy affecting customer spending; retention of our key personnel; our ability to manage and maintain key customer relationships; uncertain economic conditions in the telecommunications sector combined with operator and supplier consolidation; our failure to protect our intellectual property rights or defend against intellectual property infringement claims; the results of our restructuring efforts; the effects of currency and interest rate risks; the ability to preserve and use our net operating loss carryforwards; the effects of current and future government regulations; general economic conditions, including uncertainty regarding the timing, pace and extent of an economic recovery in the United States and other countries where we conduct business; the conduct of unethical business practices in developing countries; the impact of political turmoil in countries where we have significant business; our ability to realize the anticipated benefits of any proposed or recent acquisitions; the impact of tariffs, the adoption of trade restrictions affecting our products or suppliers, a United States withdrawal from or significant renegotiation of trade agreements, the occurrence of trade wars, the closing of border crossings, and other changes in trade regulations or relationships; our ability to implement our stock repurchase program or that it will enhance long-term stockholder value; and the impact of adverse developments affecting the financial services industry, including events or concerns involving liquidity, defaults or non-performance by financial institutions.
For more information regarding the risks and uncertainties for Aviat’s business, see “Risk Factors” in Aviat’s Form 10-K for the fiscal year ended June 28, 2024 filed with the U.S. Securities and Exchange Commission (“SEC”) on October 4, 2024, as well as other reports filed by Aviat with the SEC from time to time. Aviat undertakes no obligation to update publicly any forward-looking statement, whether written or oral, for any reason, except as required by law, even as new information becomes available or other events occur in the future.
Investor Relations:
Andrew Fredrickson
Director, Corporate Development & Investor Relations
Phone: (512) 582-4626
Email: andrew.fredrickson@aviatnet.com
Table 1
AVIAT NETWORKS, INC.
Fiscal Year 2025 Second Quarter Summary
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
Six Months Ended
(In thousands, except per share amounts)
December 27,
2024
December 29,
2023
December 27,
2024
December 29,
2023
Revenues:
Product sales
$ 82,312
$ 65,021
$ 143,428
$ 124,566
Services
35,885
28,671
63,198
56,035
Total revenues
118,197
93,692
206,626
180,601
Cost of revenues:
Product sales
54,969
36,893
107,170
73,206
Services
22,342
20,472
38,782
39,873
Total cost of revenues
77,311
57,365
145,952
113,079
Gross margin
40,886
36,327
60,674
67,522
Operating expenses:
Research and development
10,222
8,394
20,630
14,818
Selling and administrative
21,279
22,544
46,227
41,781
Restructuring charges
1,415
2,000
1,415
2,644
Total operating expenses
32,916
32,938
68,272
59,243
Operating income (loss)
7,970
3,389
(7,598)
8,279
Interest expense, net
1,580
394
2,695
493
Other expense (income), net
269
(637)
979
165
Income (loss) before income taxes
6,121
3,632
(11,272)
7,621
Provision for (benefit from) income taxes
1,626
1,848
(3,888)
2,280
Net income (loss)
$ 4,495
$ 1,784
$ (7,384)
$ 5,341
Net income (loss) per share of common stock outstanding:
Basic
$ 0.35
$ 0.15
$ (0.58)
$ 0.45
Diluted
$ 0.35
$ 0.15
$ (0.58)
$ 0.44
Weighted-average shares outstanding:
Basic
12,689
12,001
12,667
11,788
Diluted
12,784
12,229
12,667
12,093
Table 2
AVIAT NETWORKS, INC.
Fiscal Year 2025 Second Quarter Summary
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
December 27,
2024
June 28,
2024
ASSETS
Current Assets:
Cash and cash equivalents
$ 52,583
$ 64,622
Accounts receivable, net
166,689
158,013
Unbilled receivables
93,855
90,525
Inventories
76,497
62,267
Assets held for sale
—
2,720
Other current assets
33,283
27,076
Total current assets
422,907
405,223
Property, plant and equipment, net
14,057
9,480
Goodwill
18,329
8,217
Intangible assets, net
28,177
13,644
Deferred income taxes
93,848
83,112
Right-of-use assets
3,633
3,710
Other assets
13,160
11,837
Total long-term assets
171,204
130,000
Total assets
$ 594,111
$ 535,223
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable
$ 124,142
$ 92,854
Accrued expenses
38,163
42,148
Short-term lease liabilities
1,275
1,006
Advance payments and unearned revenue
71,128
58,839
Other current liabilities
13,863
21,614
Current portion of long-term debt
3,719
2,396
Total current liabilities
252,290
218,857
Long-term debt
71,134
45,954
Unearned revenue
8,272
7,413
Long-term operating lease liabilities
2,511
2,823
Other long-term liabilities
417
394
Reserve for uncertain tax positions
3,363
3,485
Deferred income taxes
6,537
412
Total liabilities
344,524
279,338
Commitments and contingencies
Stockholder’s equity:
Preferred stock
—
—
Common stock
127
126
Treasury stock
(6,978)
(6,479)
Additional paid-in-capital
862,918
860,071
Accumulated deficit
(585,897)
(578,513)
Accumulated other comprehensive loss
(20,583)
(19,320)
Total stockholders’ equity
249,587
255,885
Total liabilities and stockholders’ equity
$ 594,111
$ 535,223
AVIAT NETWORKS, INC.
Fiscal Year 2025 Second Quarter Summary
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND REGULATION G DISCLOSURE
To supplement the consolidated financial statements presented in accordance with accounting principles generally accepted in the United States (GAAP), we provide additional measures of gross margin, research and development expenses, selling and administrative expenses, operating income, provision for or benefit from income taxes, net income, net income per share, and adjusted income before interest, tax, depreciation and amortization (Adjusted EBITDA), in each case, adjusted to exclude certain costs, charges, gains and losses, as set forth below. We believe that these non-GAAP financial measures, when considered together with the GAAP financial measures provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionate positive or negative impact on results in any particular period. We also believe these non-GAAP measures enhance the ability of investors to analyze trends in our business and to understand our performance. In addition, we may utilize non-GAAP financial measures as a guide in our forecasting, budgeting and long-term planning process and to measure operating performance for some management compensation purposes. Any analysis of non-GAAP financial measures should be used only in conjunction with results presented in accordance with GAAP. Reconciliations of these non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP follow.
1We have not reconciled Adjusted EBITDA guidance to its corresponding GAAP measure due to the high variability and difficulty in making accurate forecasts and projections, particularly with respect to merger and acquisition costs and share-based compensation. In particular, share-based compensation expense is affected by future hiring, turnover, and retention needs, as well as the future fair market value of our common stock, all of which are difficult to predict and subject to change. Accordingly, reconciliations of forward-looking Adjusted EBITDA are not available without unreasonable effort.
Table 3
AVIAT NETWORKS, INC.
Fiscal Year 2025 Second Quarter Summary
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (1)
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended
Six Months Ended
December 27,
2024
% of
Revenue
December 29,
2023
% of
Revenue
December 27,
2024
% of
Revenue
December 29,
2023
% of
Revenue
(In thousands, except percentages and per share amounts)
GAAP gross margin
$ 40,886
34.6 %
$ 36,327
38.8 %
$ 60,674
29.4 %
$ 67,522
37.4 %
Share-based compensation
111
1
215
184
Merger and acquisition and other expenses
693
66
1,300
109
Non-GAAP gross margin
41,690
35.3 %
36,394
38.8 %
62,189
30.1 %
67,815
37.5 %
GAAP research and development expenses
$ 10,222
8.6 %
$ 8,394
9.0 %
$ 20,630
10.0 %
$ 14,818
8.2 %
Share-based compensation
(164)
(151)
(307)
(297)
Non-GAAP research and development expenses
10,058
8.5 %
8,243
8.8 %
20,323
9.8 %
14,521
8.0 %
GAAP selling and administrative expenses
$ 21,279
18.0 %
$ 22,544
24.1 %
$ 46,227
22.4 %
$ 41,781
23.1 %
Share-based compensation
(1,699)
(1,673)
(3,116)
(3,178)
Merger and acquisition and other expenses
(514)
(3,723)
(4,295)
(6,394)
Non-GAAP selling and administrative expenses
19,066
16.1 %
17,148
18.3 %
38,816
18.8 %
32,209
17.8 %
GAAP operating income (loss)
$ 7,970
6.7 %
$ 3,389
3.6 %
$ (7,598)
(3.7) %
$ 8,279
4.6 %
Share-based compensation
1,974
1,825
3,638
3,659
Merger and acquisition and other expenses
1,207
3,789
5,595
6,503
Restructuring charges
1,415
2,000
1,415
2,644
Non-GAAP operating income
12,566
10.6 %
11,003
11.7 %
3,050
1.5 %
21,085
11.7 %
GAAP income tax provision (benefit)
$ 1,626
1.4 %
$ 1,848
2.0 %
$ (3,888)
(1.9) %
$ 2,280
1.3 %
Adjustment to reflect pro forma tax rate
(1,126)
(1,548)
4,888
(1,680)
Non-GAAP income tax provision
500
0.4 %
300
0.3 %
1,000
0.5 %
600
0.3 %
GAAP net income (loss)
$ 4,495
3.8 %
$ 1,784
1.9 %
$ (7,384)
(3.6) %
$ 5,341
3.0 %
Share-based compensation
1,974
1,825
3,638
3,659
Merger and acquisition and other expenses
1,207
3,789
5,595
6,503
Restructuring charges
1,415
2,000
1,415
2,644
Other expense (income), net
269
(637)
979
165
Adjustment to reflect pro forma tax rate
1,126
1,548
(4,888)
1,680
Non-GAAP net income (loss)
$ 10,486
8.9 %
$ 10,309
11.0 %
$ (645)
(0.3) %
$ 19,992
11.1 %
Diluted net income (loss) per share:
GAAP
$ 0.35
$ 0.15
$ (0.58)
$ 0.44
Non-GAAP
$ 0.82
$ 0.84
$ (0.05)
$ 1.65
Shares used in computing diluted net income (loss) per share
GAAP
12,784
12,229
12,667
12,093
Non-GAAP
12,784
12,229
12,802
12,093
Adjusted EBITDA:
GAAP net income (loss)
$ 4,495
3.8 %
$ 1,784
1.9 %
$ (7,384)
(3.6) %
$ 5,341
3.0 %
Depreciation and amortization of property, plant and equipment and intangible assets
2,275
1,140
4,105
2,484
Interest expense, net
1,580
394
2,695
493
Other expense (income), net
269
(637)
979
165
Share-based compensation
1,974
1,825
3,638
3,659
Merger and acquisition and other expenses
1,207
3,789
5,595
6,503
Restructuring charges
1,415
2,000
1,415
2,644
Provision for (benefit from) for income taxes
1,626
1,848
(3,888)
2,280
Adjusted EBITDA
$ 14,841
12.6 %
$ 12,143
13.0 %
$ 7,155
3.5 %
$ 23,569
13.1 %
(1)
The adjustments above reconcile our GAAP financial results to the non-GAAP financial measures used by us. Our non-GAAP net income excluded share-based compensation, and other non-recurring charges (recovery). Adjusted EBITDA was determined by excluding depreciation and amortization on property, plant and equipment, interest, provision for or benefit from income taxes, and non-GAAP pre-tax adjustments, as set forth above, from GAAP net income. We believe that the presentation of these non-GAAP items provides meaningful supplemental information to investors, when viewed in conjunction with, and not in lieu of, our GAAP results. However, the non-GAAP financial measures have not been prepared under a comprehensive set of accounting rules or principles. Non-GAAP information should not be considered in isolation from, or as a substitute for, information prepared in accordance with GAAP. Moreover, there are material limitations associated with the use of non-GAAP financial measures.
Table 4
AVIAT NETWORKS, INC.
Fiscal Year 2025 Second Quarter Summary
SUPPLEMENTAL SCHEDULE OF REVENUE BY GEOGRAPHICAL AREA
(Unaudited)
Three Months Ended
Six Months Ended
December 27,
2024
December 29,
2023
December 27,
2024
December 29,
2023
(In thousands)
North America
$ 57,962
$ 50,615
$ 100,187
$ 105,468
International:
Africa and the Middle East
12,674
14,493
23,124
24,447
Europe
8,347
5,577
13,947
10,829
Latin America and Asia Pacific
39,214
23,007
69,368
39,857
Total international
60,235
43,077
106,439
75,133
Total revenue
$ 118,197
$ 93,692
$ 206,626
$ 180,601
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SOURCE Aviat Networks, Inc.
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As the 140th Canton Fair gets underway, the showcased innovations highlight China’s growing strength in advanced manufacturing, turning cutting-edge technologies into practical, market-ready solutions for global customers.
For more convenient attendance, please click here for pre-registration:
https://buyer.cantonfair.org.cn/register/buyer/email?source_type=16
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SOURCE Canton Fair
Technology
October 2026 Global Sources Hong Kong Shows Phase II Opens Today
Published
17 minutes agoon
October 18, 2026By
Asia’s first dedicated B2B Pre-Owned Mobile Devices focus pavilion
Tencent Brings AI Ecosystem Products to the Show
HONG KONG, Oct. 18, 2026 /PRNewswire/ — Phase II of the October 2026 Global Sources Hong Kong Shows opened today at AsiaWorld-Expo, running from October 18 to 21. The four-day event focuses on four core tracks — mobile electronics, smart home security and appliances, lifestyle electronics, and sports and outdoor — bringing together more than 2,100 quality Asian suppliers across more than 4,000 booths, showcasing approximately 160,000 new products including mobile devices, smart wearables, AR/VR, smart home, energy storage and charging, personal health care, pet products, and sports and outdoor equipment.
John Kao, Vice President of Hong Kong Shows & Overseas Shows at Global Sources, said: “Hong Kong possesses a regulatory framework aligned with international standards, efficient intellectual property protection, and proximity to the Greater Bay Area’s manufacturing heartland — enabling it to meet buyers’ dual demands for compliance and efficiency. Buyers no longer need to travel to multiple locations: right here in Hong Kong, they can assess Asian manufacturing supply, complete compliance reviews, and place orders — all in a single visit. The trust established between buyers and sellers on site is often difficult to achieve through months of email exchanges. We aim to continuously strengthen Hong Kong’s role as an international trade hub, enabling genuinely capable suppliers and serious buyers to connect efficiently on this platform.”
Asia’s First B2B Phone Trade Focus Pavilion Officially Debuts
Hong Kong has long been an important transit hub for the global second-hand phone trade. According to IDC data, global used smartphone shipments reached 225.7 million units in 2024 and are projected to maintain a compound annual growth rate of 4.9% through 2029. While the market continues to expand, compliant distribution capability remains the key threshold for entering this space.
For the first time, the show has partnered with the Hong Kong International Communications Electronic Chamber (HKICEC) to unveil the “HKICEC Global Mobile Exchange Pavilion,” Asia’s first dedicated B2B pavilion for Pre-Owned Mobile Devices. The pavilion brings together nearly 60 leading companies from Chinese Mainland, Hong Kong SAR, India, Japan, the United Arab Emirates, the United States, the United Kingdom, and beyond — including Zhuan Zhuan, ATRenew, US Mobile Phones Inc., Belong Inc., and ecoATM LLC — exhibits and services span new mobile devices, professionally tested and data-sanitized refurbished smart devices compliant with EU WEEE standards, intelligent testing technologies, recycling solutions, and compliant export services. The pavilion offers buyers from Europe, North America, and Southeast Asia a trusted and comprehensive sourcing platform, creating a green trade corridor that connects Chinese Mainland’s manufacturing strengths, Hong Kong SAR’s international platform, and global markets.
Tencent AI Makes Show Debut; AI Mass Production Enters the Delivery Phase
The product selection logic for AI products has undergone a marked shift in the second half of the year. The focus has moved entirely from “What new AI products are available?” to deployment capability and delivery efficiency — no longer chasing feature gimmicks alone, buyers place greater emphasis on whether products can effectively address real needs and ship reliably on schedule. Suppliers’ overall fulfillment capability has surpassed mere product highlights to become the primary assessment criterion in sourcing decisions. The Phase II “AI+ Theme Zone” features over 1,200 booths spanning seven segments: AI terminal devices, AI wearables, AI glasses, AI toys, AI pet products, AI personal health devices, and AI-integrated products, showcasing suppliers’ proven ability to move from concept to mass production. The zone also extends to lifestyle electronics including wearable electronics, smart pet products, personal care and beauty tech, sports, outdoor and fitness tech, gifts, and smart living, covering a wide range of real-world application scenarios.
Tencent joins forces with its ecosystem partners to exhibit under the theme “AI-Empowered Business Growth,” showcasing Tencent’s AI office assistant WorkBuddy alongside enterprise-grade AI solutions from ecosystem partners, including the AI-powered business growth tool Buda.im and Busabase. Running concurrently with the fair, the “AI Agent Summit” brings together over 100 industry, investment and technology leaders to explore how AI Agents are moving beyond demos into real-world deployment and revenue generation, with in-depth discussions on commercialisation pathways, industry standardisation and emerging opportunities across the AI Agent ecosystem. In addition, the show has partnered with the Taiwan Electrical and Electronic Manufacturers’ Association (TEEMA) to launch a Taiwan AI Supply Chain Theme Pavilion, showcasing the region’s established industrial cluster strengths in AI modules, components, and contract manufacturing.
Vietnamese Manufacturing and Mobile Accessories Take Center Stage; Diverse Sourcing Zones Debut
Phase II features a dedicated “Vietnam Sourcing Fair” zone, bringing together approximately 50 Vietnamese manufacturers with mature export capabilities, covering three product categories: fashion products and apparel, home and kitchenware, and gifts and packaging. For buyers seeking to diversify sourcing risks, the zone enables them to simultaneously access China’s main supply chain and Vietnam’s emerging production capacity at the same show, and negotiate directly face-to-face with Vietnamese factories.
With new-generation flagship smartphones from major brands hitting the market, demand for compatible mobile accessories is ramping up. The show floor features over 2,000 mobile-accessory booths showcasing new offerings including phone cases, charging gear, stands, and data cables, providing global buyers with an extensive range of options. The event also hosts the “Global Buyer’s Top Picks” creative phone-case contest to identify case designs with strong market potential.
The concurrent Hong Kong Security Tech Show, supported by the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME), showcases products and solutions spanning security surveillance, smart access control, and cybersecurity.
Best of Innovation Awards Recognize Outstanding Products; Global New Product Launches Converge in Hong Kong
The Phase II Best of Innovation Awards focus on products across mobile electronics, smart home, security and appliances, lifestyle electronics, and sports and outdoor categories, with judging criteria emphasizing practicality, cost-effectiveness, technological maturity, and market relevance — identifying innovative products with genuine commercial deployment potential. Phase II also introduces a dedicated “AI Innovation Award” to recognize exhibits with outstanding applications of AI technology. The awards program continues its partnership with the internationally renowned European Product Design Award (EPDA)™ to present the “Best Product Design Award,” honoring products that combine innovative thinking with exceptional design. The show also serves as the preferred launch platform for multiple exhibitors’ annual new products, featuring heavyweight global and Asia premieres that further consolidate Hong Kong’s position as the world’s premier stage for consumer electronics product debuts.
About Global Sources
Global Sources is an internationally recognized multi-channel trade platform, connecting Asia with the world for 55 years. The company has been dedicated to facilitating global trade by connecting verified suppliers with qualified buyers worldwide. To date, it has successfully served more than 14 million registered buyers and users globally, providing efficient and convenient trade solutions.
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SOURCE Global Sources
Technology
Global Times: Why does this mega-project on Yarlung Zangbo River make way for fish?
Published
1 hour agoon
October 18, 2026By
BEIJING, Oct. 18, 2026 /PRNewswire/ — “Building an ecological civilization concerns the well-being of the people and the future of the nation.”
Chinese President Xi Jinping, also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, pointed out: “Respecting, adapting to, and protecting nature is essential for building China into a modern socialist country in all respects.”
As outlined in the 15th Five-Year Plan (2026-2030) for national economic and social development, securing major breakthroughs in strategic tasks of overall importance to Chinese modernization and making major new progress in the Beautiful China Initiative are set as key objectives.
The Global Times is launching a series of articles titled “BeautifulChinaING.” From the perspectives of the beauty of nature, the beauty of system and the beauty of lifestyle, the series uses both Chinese and international cases as entry points. Through field reporting and video storytelling, it explores how green development has become a defining feature of Chinese modernization while showcasing China’s role as a responsible major country providing global public goods.
In this installment, we turn our focus to the Qinghai-Xizang Plateau, where engineers, scientists and conservationists are working together to explore a new balance between hydropower development and ecological protection, ensuring the free migration of rare fish species in the Yarlung Zangbo River.
In the deep canyon in the middle reaches of the Yarlung Zangbo River, a hydropower station about 400 meters long and more than 100 meters high has released the tremendous force of the upstream river water. As the dam opened to discharge floodwaters, the surging water dropped by more than 60 meters, providing a solution to nearly 26 percent of electricity demand in Southwest China’s Xizang Autonomous Region. This mega hydropower station, known as the Huaneng Zangmu Hydropower Station, ended the history of Xizang region relying on diesel for large-scale power supply.
Standing in front of the dam, design engineer Zhang Lianming was filled with pride. For him, this hydropower station not only benefits people’s livelihoods, but also carries a special mission: in order to help the fish move freely between the upstream and downstream sections of the dam, a fishway was designed beside this mega-project. Since the hydropower station began operation in 2015, the fishway has helped about 570,000 fish “swim upstream.”
“The environment means well-being, the green mountains mean beauty and blue sky also represents happiness.” Zhang said in an interview with the Global Times, adding that when he saw that this water conservancy project not only delivers “green electricity” to thousands of households, but also makes the surrounding mountains greener, waters clearer, and fish and birds gather in the area, he has increasingly felt the meaning of this saying.
Swim back happily
Sun Chao, who is in charge of the Zangmu Hydropower Station, often goes to the fishway monitoring room to check the records of fish “crossing” the dam. When he sees fish successfully migrating back upstream through the glass curtain wall, a smile spreads across his face. “We feel about fish the same way fishing enthusiasts do,” Sun said. “The difference is that their happiness comes from catching fish, while ours comes from seeing fish swim back.”
Xizang region is an important ecological security barrier for the country and is also known as a “gene bank of species.” Its natural environment is unique, highly sensitive and fragile – a fact clearly reflected in the fish populations of the Yarlung Zangbo River. The seven fish species that pass through the fishway at the station are unique. Two of these species, the black-spotted catfish and the Lhasa schizothoracin, are protected as nationally second-class protected animals.
“Preventing hydropower stations from becoming barriers to the free movement of rare fish has special ecological significance,” Zhang said. When a dam blocks a river, the channels through which fish communicate are also cut off. Their living environment becomes more fragmented, which is detrimental to the integrity of aquatic ecosystems and to genetic exchange among fish populations.
However, fish native to the Yarlung Zangbo River are not typical migratory species; some are only semi-migratory. Once a hydropower station is built, they may simply adapt to their new surroundings and no longer return to their birthplace, Zhang pointed out.
The characteristics of fish in Yarlung Zangbo River made the design engineer realize that ensuring unobstructed fish migration had to be a key objective of the station. Only in this way could the fish mate freely, preserving the genetic strength of the river’s rare fish populations.
Moreover, to help ensure that the Yarlung Zangbo River is filled with more high-quality fish species, a stock enhancement and release project for breeding rare fish seedlings from the river has also been implemented at the Zangmu Hydropower Station.
“The project has continued for 12 years, and so far, 1.97 million fish have been released,” Sun calculated. “The construction of this large-scale fast-flowing fish stock enhancement and release station cost 48 million yuan ($7.10 million), the construction of the fishway cost about 360 million yuan ($53.27 million), and annual fry-breeding costs are nearly 7 million yuan ($1.04 million).”
“This hydropower station not only provides energy security, but also continues to invest heavily in taking on the vital responsibility of protecting the ecology of the plateau,” he stressed.
‘Leap over the dragon gate’
At the station, which stands more than 100 meters high, it is already difficult for an ordinary person to climb from the foot of the dam to the top. For fish in the Yarlung Zangbo River, swimming upstream across it is an even greater challenge. Relying on ingenious design, the builders have helped the fish successfully “leap over the dragon gate.”
From the outside, the station’s fishway looks no different from an ordinary diversion canal. The zigzagging artificial channel resembles a “hanging river,” connecting the upstream and downstream sides of the dam. But a closer look reveals many hidden features inside: cement walls are arranged in alternating patterns to create a winding waterway effect.
According to Zhang, the fishway consists of an inlet, an open-channel section crossing the dam, an outlet, and an observation and research room. Inside the open channel are fishway pools with a gradient of 2 percent. Every time the fishway rises 10 meters, a rest pool is provided for the fish, with the water speed in the pool controlled between 0.9 and 1.2 meters per second. A water-supply branch pipe is installed at the inlet, along with a flow-regulating valve, to create the optimal flow speed for attracting fish.
“Fish enjoy the sensory stimulation brought by flowing water, and suitable water flow can attract them into the fishway,” said Zhang. In his view, the key to the fishway’s success lies in respecting the fish’s natural instincts.
To this end, the design team built a scale-model fishway and captured fish from the river to conduct multiple flow-velocity tests. After six years of repeated experiments, the team finally determined that an inlet flow velocity of 0.92 to 1.2 meters per second was the “comfort zone” for the upstream migration of fish.
During the research and development process, members of the design team traveled to the US and Canada to learn from mature fishway projects.
During their research, they found that most fish in overseas rivers are carnivorous migratory fish, which are stronger and can migrate in rivers with steeper gradients. As a result, fishways overseas generally have a larger lifting angle, which means they can be built over a shorter distance.
In the Yarlung Zangbo River, however, the fish are mostly cold-water species with slow growth cycles and weaker swimming ability. Therefore, fishways built in the river need a smaller lifting angle.
This entire cross-disciplinary study of the ecology and behavior of fish in the Yarlung Zangbo River was compiled by the dam design team into a monograph. The project also won first prize in the 2023 Science and Technology Award in Xizang.
“When the fishway at Zangmu Hydropower Station was completed, it was the highest-altitude and largest fish-passage ecological and environmental protection project in China, breaking the long-standing convention that fish passes would no longer be considered for dams over 40 meters high,” Zhang said.
He believes the successful application of the fishway in Zangmu station has very important guiding significance for the future construction of fishways at high-altitude hydropower stations and for the protection of rare aquatic organisms, and it also plays a positive role in protecting fragile ecological environment in Xizang.
‘Fish face recognition’
Now, the fishway at Zangmu station has not only become a “distribution hub” for fish in the Yarlung Zangbo River, but also a “research station” for monitoring the river’s ecological condition.
In the fishway observation room, a smart monitoring system works like an “electronic toll station” on a highway, constantly and accurately collecting information on migrating fish as they pass through.
“The fact that 570,000 fish have passed upstream through the fishway is backed by data,” said Yang Xiaocheng, director of the safety and environmental protection department at the station. He specially showed Global Times reporters video footage recorded by the station on a day in May, in which large numbers of fish were seen racing upstream along the fishway toward the dam.
The scene was truly spectacular. “Every year from March to June is the spawning season for fish in the Yarlung Zangbo River, and it is also the peak period for migration.”
Since the station began operation, visualizing and quantifying changes in ecosystem in the Yarlung Zangbo River has been an important task for the station.
“At first, we assigned staff on fixed duty,” Yang said. Later, an AI system developed based on years of footage from the fishway was put into operation. According to the introduction, this system uses optical and sonar technologies to identify key features of migrating fish, such as fin characteristics and swimming posture, thereby recognizing and recording the fish’s “identity information,” with an accuracy rate of 95 percent, according to Yang.
In addition, this “fish face recognition” system also records information such as migration time and fishway water temperature. By combining and analyzing these data, it evaluates the effectiveness of the fishway under different conditions. These data are also shared with domestic research institutions for studies on fish behavior, and are eventually fed back to other hydropower stations in China.
In recent years, tagged fish released in previous years have been found in the section where the Nyang River and the Yarlung Zangbo River meet, about 200 kilometers downstream of the Zangmu Hydropower Station. This fully proves that the fry artificially released by the station have successfully adapted to the wild environment.
“From the monitoring results, the fish population in the middle reaches of the Yarlung Zangbo is very stable, and has not decreased, because of the construction of the hydropower station. On the contrary, the aquatic ecology and animal-plant life in the entire middle gorge section of the Yarlung Zangbo River have shown positive changes,” Yang said.
At the same time, monitoring has shown that animals that live alongside water, such as otters and mergansers, are appearing more and more around the Zangmu Hydropower Station.
Harmony between humans and water, and coexistence among all things, is not impossible. Such a beautiful picture of ecological civilization is taking shape on the Yarlung Zangbo River, Zhang added.
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SOURCE Global Times
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