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Texxon Holding Limited Announces Unaudited Financial Results for the First Half of Fiscal Year 2026

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SHANGHAI, June 30, 2026 /PRNewswire/ — Texxon Holding Limited (Nasdaq: NPT) (“Texxon”, together with its subsidiaries, the “Company” or “we”), a leading provider of supply chain management services in the plastics and chemical industries in East China, today announced its unaudited financial results for the six months ended December 31, 2025, the first half of the fiscal year ended June 30, 2026.

Mr. Hui Xu, Chief Executive Officer and Chairman of Texxon, commented: “During the first half of fiscal year 2026, the chemical industry continued to face a challenging market environment characterized by softer demand in certain product categories, heightened competition, and volatility in upstream raw material costs. In particular, higher international crude oil prices increased the costs of key feedstocks and affected customer purchasing behavior, which contributed to lower sales volumes in our basic chemicals segment during the period. In addition, competitive pricing conditions across both the plastic particles and basic chemicals markets continued to place pressure on profitability.

“Despite these headwinds, our plastic particles business achieved strong revenue growth of 40.1% year over year. This growth was driven by our continued marketing and sales efforts to meet evolving market demand. As part of our market expansion strategy, we expanded our sales teams across multiple cities in China, enhancing our market penetration, broadening our customer base, and expanding our sales channels. These initiatives enabled us to capture additional market share, contributing meaningfully to our business development during the period and supporting our ongoing portfolio rebalancing strategy for sustainable long-term growth.

“While our gross profit and gross profit margin were affected by the competitive pricing environment, we remain committed to strengthening relationships with key customers and supporting long-term business growth through disciplined execution and customer-focused solutions. In addition, our prior-year results benefited from a one-time government grant of approximately $2.9 million related to the construction of the Henan Polystyrene Factory, which did not recur during the current period. Excluding this one-time item, we remain confident in our ability to expand our customer base, strengthen our market position and execute our long-term growth strategy as we navigate the current challenges.

“Looking ahead, we will continue to focus on expanding our customer network, improving operational efficiency, and advancing the development of the Henan Polystyrene Factory. Having commenced production in early June 2026, the facility is expected to further strengthen our capabilities across the plastics value chain and support our long-term growth strategy.”

First Half of Fiscal Year 2026 Financial Summary

Revenue was $327.0 million for the first half of fiscal year 2026, compared to $509.6 million for the same period of last fiscal year.Gross profit was $1.2 million for the first half of fiscal year 2026, compared to $3.9 million for the same period of last fiscal year.Gross profit margin was 0.4% for the first half of fiscal year 2026, compared to 0.8% for the same period of last fiscal year.Net loss was $1.0 million for the first half of fiscal year 2026, compared to net income of $2.3 million for the same period of last fiscal year.Net loss attributable to Texxon was $0.9 million for the first half of fiscal year 2026, compared to net income attributable to Texxon of $1.0 million for the same period of last fiscal year.Basic and diluted loss per share were $0.04 for the first half of fiscal year 2026, compared to basic and diluted earnings per share of $0.05 for the same period of last fiscal year.

First Half of Fiscal Year 2026 Financial Results

Revenue

Revenue was $327.0 million for the first half of fiscal year 2026, representing a decrease of 35.8% from $509.6 million for the same period of last fiscal year.

Sales of basic chemicals were $133.5 million for the first half of fiscal year 2026, representing a decrease of 64.1% from $371.4 million for the same period of last fiscal year. The decrease was primarily attributable to lower market demand, particularly for aromatic chemical raw materials. Higher international crude oil prices also increased the costs of key upstream feedstocks, which adversely affected customer demand and contributed to the decline in sales volume.Sales of plastic particles were $193.4 million for the first half of fiscal year 2026, representing an increase of 40.1% from $138.0 million for the same period of last fiscal year. The increase was primarily attributable to the Company’s marketing and sales efforts to meet the growing market needs. As part of the Company’s marketing strategies, the Company expanded its sales teams across various cities in China, which not only enhanced the Company’s market penetration but also diversified the Company’s customer base. By broadening the Company’s sales channels, the Company had effectively captured a larger market share, contributing significantly to the Company’s revenue growth.

Cost of Sales

Cost of sales was $325.8 million for the first half of fiscal year 2026, representing a decrease of 35.6% from $505.7 million for the same period of last fiscal year. The decrease in cost of sales is in line with the decrease in revenue.

Gross Profit and Gross Profit Margin

Gross profit was $1.2 million for the first half of fiscal year 2026, a decrease of 68.8%, from $3.9 million for the same period of last fiscal year.

Gross profit margin was 0.4% for the first half of fiscal year 2026, compared to 0.8% for the same period of last fiscal year. Gross profit and gross margin decreased primarily attributable to a competitive pricing environment in the plastic particles and basic chemicals markets and the Company continued focus on expanding business with key customers through more competitive pricing arrangements. Management believes this strategy will strengthen customer relationships and support long-term business growth.

Operating Expenses

Operating expenses were $2.0 million for the first half of fiscal year 2026, representing a decrease of 41.4% from $3.4 million for the same period of last fiscal year.

Selling expenses were $1.0 million for the first half of fiscal year 2026, representing a decrease of 34.1% from $1.5 million for the same period of last fiscal year. The decrease in selling expenses was mainly due to lower shipping and delivery expenses, primarily as a result of reduced sales.General and administrative expenses were $1.0 million for the first half of fiscal year 2026, representing a decrease of 47.1% from $1.9 million for the same period of last fiscal year. The decrease was mainly attributed to a $0.2 million recovery of previously recognized credit losses, compared to $0.7 million of expected credit loss for the same period of last fiscal year, following settlement and repayment after full provision.

Net Income

Net loss was $1.0 million for the first half of fiscal year 2026, compared to net income of $2.3 million for the same period of last fiscal year. Net loss attributable to Texxon was $0.9 million for the first half of fiscal year 2026, compared to net income attributable to Texxon of $1.0 million for the same period of last fiscal year.

Basic and Diluted Earnings (loss) per Share

Basic and diluted loss per share were $0.04 for the first half of fiscal year 2026, compared to basic and diluted earnings per share of $0.05 for the same period of last fiscal year.

Financial Condition

As of December 31, 2025, the Company had cash and cash equivalents of $0.5 million, compared with $2.5 million as of June 30, 2025.

Net cash used in operating activities was $8.6 million for the first half of fiscal year 2026, compared to net cash provided by operating activities of $11.0 million for the same period of last fiscal year.

Net cash provided by investing activities was $11.1 million for the first half of fiscal year 2026, compared to net cash used in investing activities of $13.9 million for the same period of last fiscal year.

Net cash provided by financing activities was $17.8 million for the first half of fiscal year 2026, compared to net cash provided by financing activities of $3.5 million for the same period of last fiscal year.

Statement Regarding Unaudited Financial Information

The unaudited financial information set out in this earnings release has been prepared by management and approved by the audit committee and board of directors of the Company and has not been reviewed by the Company’s independent auditor. Such financial information is subject to potential adjustments, which may be identified when audit work is performed for the Company’s year-end audit, which could result in significant differences from the unaudited financial information.

About Texxon Holding Limited

Texxon Holding Limited is a leading provider of supply chain management services in the plastics and chemical industries in East China. Through its polystyrene production facility and technology-enabled platform, the Company manufactures and sells polystyrene products and provides a full spectrum of supply chain management services to Chinese Small and Medium-size Enterprises (SME) customers, including procurement, shipping and logistics, payments and fulfillment services. It aspires to build the largest one-stop plastic and chemical raw material supply chain management platform in China, to streamline the complex and labor-intensive raw material procurement process and enhance convenience, cost-effectiveness, and efficiency for customers. Texxon has built a highly scalable distributed software architecture for continuous improvement, and an effective User Experience Design (UED) process to improve the customer experience. In addition, with over a decade of experience, the Company has amassed substantial transaction data, including supplier and customer information, price trends, category-specific price indexes and market demand volume, to analyze price trends and market demands and make informed decisions. For more information, please visit the Company’s website: https://ir.npt-cn.com/.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements, including, but not limited to, the timeline and effects regarding the construction and production of the Henan Polystyrene Factory. These forward-looking statements involve known and unknown risks and uncertainties related to market conditions, and other factors discussed in the “Risk Factors” section of the Company’s Annual Report on Form 20-F for the fiscal year ended June 30, 2025 filed with the U.S. Securities and Exchange Commission (the “SEC”) on November 18, 2026 and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s latest annual report on Form 20-F and other filings with the SEC. Additional factors are discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov.

For more information, please contact:

Texxon Holding Limited
Investor Relations Department
Email: ir@totrade.cn

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com 

 

TEXXON HOLDING LIMITED AND SUBSIDIARIES 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS 

AS OF DECEMBER 31, 2025 AND JUNE 30, 2025

(EXPRESSED IN U.S. DOLLARS)

December 31,

2025

June 30,

2025

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

396,837

$

2,517,577

Restricted cash

286,576

562

Accounts receivable, net

4,304,444

7,522,465

Note receivables

1,430

–

Advanced to suppliers

6,833,236

2,675,445

Inventories

–

973,644

Loan to a related party

–

153,554

Prepayments and other current assets

9,769,977

6,918,026

TOTAL CURRENT ASSETS

21,592,500

20,761,273

NON-CURRENT ASSETS:

Property, plant and equipment, net

116,325,271

84,623,119

Intangible assets, net

6,247,753

6,164,781

Prepayments for long-term assets

9,339,771

24,522,149

Deferred offering costs

–

634,978

Equity investment

–

2,261,433

TOTAL NON-CURRENT ASSETS

131,912,795

118,206,460

TOTAL ASSETS

$

153,505,295

$

138,967,733

LIABILITIES

CURRENT LIABILITIES:

Short-term borrowings

$

31,005,284

$

20,624,062

Accounts payable

785,782

763,343

Note Payable

285,996

–

Contract liabilities

4,630,524

2,272,179

Accrued expenses and other current liabilities

11,678,356

19,258,940

Due to related parties

16,728,760

29,826,131

TOTAL CURRENT LIABILITIES

65,114,702

72,744,655

NON-CURRENT LIABILITIES:

Long-term borrowings

33,284,411

32,175,020

TOTAL LIABILITIES

$

98,399,113

$

104,919,675

Commitments and contingencies

SHAREHOLDERS’ EQUITY (DEFICIT):

Ordinary shares, $0.0001 par value, 500,000,000
    shares authorized, 22,185,000 and 20,000,00
    shares issued and outstanding as of December 31,
    2025 and June 30, 2025, respectively.

2,219

2,000

Additional paid-in capital

9,554,895

777,992

Accumulated deficit

(5,228,083)

(4,316,467)

Accumulated other comprehensive income (loss)

161,157

(275,578)

SHAREHOLDERS’ EQUITY (DEFICIT)
ATTRIBUTABLE TO TEXXON HOLDING
LIMITED

4,490,188

(3,812,053)

Non-controlling interests

50,615,994

37,860,111

TOTAL EQUITY

55,106,182

34,048,058

TOTAL LIABILITIES AND EQUITY

$

153,505,295

138,967,733

 

 

 

TEXXON HOLDING LIMITED AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND

COMPREHENSIVE INCOME/(LOSS)

FOR THE SIX MONTHS ENDED DECEMBER 31, 2025, 2024 AND 2023

(EXPRESSED IN U.S. DOLLARS)

For the Six Months Ended

December 31,

2025

2024

2023

REVENUE

Sales revenue generated from third parties

$

326,809,690

$

509,579,018

$

324,816,043

Sales revenue generated from related parties

188,480

–

–

Total revenue

326,998,170

509,579,018

324,816,043

COST OF SALES

Cost of sales charged by third parties

(325,514,666)

(503,345,950)

(317,499,833)

Cost of sales charged by related parties

–

(2,026,284)

(4,980,422)

Tax and surcharges

(275,528)

(338,186)

(114,064)

Total cost of sales

(325,790,194)

(505,710,420)

(322,594,319)

GROSS PROFIT

1,207,976

3,868,598

2,221,724

OPERATING EXPENSES

Selling and marketing expenses

(980,828)

(1,487,873)

(970,802)

General and administrative expenses

(1,010,704)

(1,908,996)

(710,009)

Total operating expenses

(1,991,532)

(3,396,869)

(1,680,811)

(LOSS) INCOME FROM OPERATIONS

$

(783,556)

$

471,729

$

540,913

OTHER INCOME (EXPENSES):

Interest expenses, net

(110,448)

(277,914)

(299,439)

Interest income – related parties

–

–

227,173

Government grants

–

2,868,835

2,868,896

Other income (expenses), net

(96,046)

12,512

(13,782)

Total other income (expenses), net

(206,494)

2,603,433

2,782,848

(LOSS) INCOME BEFORE PROVISION FOR
INCOME TAXES

(990,050)

3,075,162

3,323,761

INCOME TAXES EXPENSES

–

(816,605)

–

NET (LOSS) INCOME

(990,050)

2,258,557

3,323,761

Less: net (loss) income attributable to non-controlling
interest

(78,434)

 

1,302,869

2,102,679

NET (LOSS) INCOME ATTRIBUTABLE TO
TEXXON HOLDING LIMITED

(911,616)

 

955,688

1,221,082

OTHER COMPREHENSIVE INCOME (LOSS)

Foreign currency translation income (loss)

1,192,749

(213,769)

934,158

TOTAL COMPREHENSIVE INCOME

$

202,699

$

2,044,788

$

4,257,919

Less: comprehensive income attributable to non-
controlling interests

677,581

1,054,240

2,836,582

COMPREHENSIVE (LOSS) INCOME
   ATTRIBUTABLE TO TEXXON HOLDING
   LIMITED

(474,881)

990,548

1,421,337

BASIC AND DILUTED EARNINGS (LOSS) PER
SHARE:

Net (loss) income attributable to Texxon Holding
Limited per share

Basic and diluted

$

(0.04)

$

0.05

$

0.06

Weighted average shares outstanding used in
calculating basic and diluted income per share*

Basic and diluted

20,823,505

20,000,000

20,000,000

 

 

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SOURCE Texxon Holding Limited

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Advanced Manufacturing in Focus: Smart Life and Robotics Take the Spotlight at 140th Canton Fair

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GUANGZHOU, China, Oct. 18, 2026 /CNW/ — Phase 1 of the 140th Canton Fair, themed “Advanced Manufacturing,” opened on October 15 and will run through October 19. As one of the event’s most closely watched sections, the Consumer Electronics and Information Products zone once again serves as a showcase for the latest achievements in China’s manufacturing and technology industries.

Smart Life Solutions Address an Aging and Globalized Market

A highlight of this section is the focus on smart living, which brings together smart solutions designed to support healthier, safer, and more independent lifestyles.

For example, wearable devices and continuous glucose monitoring systems enable convenient tracking of key health indicators such as heart rate and blood glucose levels. Meanwhile, wearable exoskeletons and other AI-powered devices support mobility training and functional recovery. For home and elderly care, companion robots, electric nursing beds and home-use hyperbaric oxygen chambers, offer a combination of daily care, wellness support and lifestyle assistance. All these solutions highlight a growing shift toward technology-enabled living, where health management, personal care, and independent living are becoming more accessible and connected.

Service Robots Demonstrate Expanding Real-World Applications

The Service Robot Zone remains one of the fair’s most popular attractions in this edition.

Among the crowd favorites is a humanoid robot standing roughly 70–80 centimeters tall. With its expressive movements and playful appearance, the robot draws constant attention as it dances, approaches visitors and occasionally performs flips to the delight of onlookers. Behind the product is a company that has overcome key challenges in compact joint modules and modular humanoid robot development. Its independently developed high-power-density joints deliver remarkable agility and explosive movement, while modular architecture provides flexibility for a wide range of future applications.

More broadly, the Service Robot Zone features exhibits spanning a wide range of application areas, including embodied intelligence, specialized operations, urban services, and smart living. Full-size humanoid robots, dexterous hands with multimodal sensing capabilities and wheeled robots highlight the latest advances in artificial intelligence, perception technologies and motion control. For demanding industrial and emergency environments, exhibitors are presenting robotic inspection systems, live-line maintenance robots and underwater propulsion robots designed to improve safety and operational efficiency.

The commercial services sector is also well represented through reception robots, façade-cleaning robots and fully automated coffee kiosks, while everyday life applications include wearable exoskeletons, robotic lawn mowers and educational robots for home use. Together, these exhibits demonstrate how China’s robotics industry is accelerating its transition from technological innovation to large-scale commercialization.

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

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October 2026 Global Sources Hong Kong Shows Phase II Opens Today

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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

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Global Times: Why does this mega-project on Yarlung Zangbo River make way for fish?

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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.

View original content:https://www.prnewswire.com/news-releases/global-times-why-does-this-mega-project-on-yarlung-zangbo-river-make-way-for-fish-302911962.html

SOURCE Global Times

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