On July 19, 2025, the hydropower project at the lower reaches of the the Yarlung Zangbo River was officially started, and China Yajiang Group Co., Ltd. was established. The project is located in Linzhi City, Xizang, with a total investment of about 1.2 trillion yuan. Five cascade power stations will be built by cutting the bend and taking the straight and tunnel diversion. It is estimated that the power generation scale will exceed three times that of the Three Gorges Dam Project, bringing significant development opportunities to the construction machinery industry.

The demand for construction machinery has increased significantly:
Engineering construction requires a large number of construction machinery, such as excavators, bulldozers, mining trucks, loaders, tunnel equipment, shield tunneling machines, etc., which will continue to drive related demand. Taking Liugong as an example, he stated that the project will bring important opportunities for electric engineering machinery such as loaders, excavators, and other earthmoving equipment. The company also has the opportunity to participate in equipment such as pile drivers, cranes, and mining trucks. As a leading enterprise in the prestressing industry, its controlling subsidiary, Ouweim, is a core supplier of prestressing materials and fixed systems for large-scale water conservancy and hydropower projects. Its related systems meet the requirements of Yaxia Hydropower Construction. Currently, the company has established a project team to coordinate.

The industry is in an upward cycle:
The construction machinery industry has both cyclicality and growth potential, and has entered a new round of upward cycle. The downward phase of the past five years may have ended. In the next five years, domestic excavators will meet the equipment renewal cycle. The penetration rate of overseas markets represented by countries along the "the Belt and Road" is expected to increase, and the growth rate of domestic and foreign excavator sales is expected to exceed expectations. From January to June 2025, the sales of excavators in the entire industry reached 120520 units, a year-on-year increase of 16.8%. The launch of the Yajiang Hydropower Project will drive the industry to continue to rise in the next 3-5 years.