China Newsletter Lifts and Escalators Industry Report

Lifts and Escalators Industry

Edition1 / 2018

Contact： Mr. Ethan Liu E-mail: [email protected] Tel: 86 10 8773 0210 Fax: 86 10 87730209 Website: http://china.vdma.org/

The Industry Scenario exchange rate: The standard exchange rate announced by China Administration of Foreign Exchange Control : Date EURO : U. S. Dollar EURO: RMB 1st Jun. 2018 100 : 116.98 100 : 749.61

Facial recognition makes elevators smart in future release date: 2018.04.19 source: www.xdkb.net A Chinese newspaper reporter learned from an innovation and entrepreneurship lecture in Jiangsu province on April 18: In future, elevators can be smart. Through big data analysis and Internet of Things technology, you don't need to press buttons. With facial recognition technology, elevator can automatically carry you to your frequently visited floors, “Now many escalators will enter an energy-saving mode when there are no passengers. When someone comes, it will return to normal operation,” said Luo Xiaogang, deputy director of technical department of Shanghai Mitsubishi Elevator Co. However, this may have misjudgment, Luo continued. “It's very likely that when someone passes by, the escalator will start up.” Now, the industry is studying precise control solutions to avoid false start caused by people passing by. In the future, elevators will offer more intelligent services. “At present, many companies are establishing elevator remote monitoring service systems, which can analyze the operating status of elevators through information collection and big data analysis,” Luo noted, adding that to some extent, it is possible to predict a failure of an elevator and elevators can be maintained on demand.

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Fujitec mountain elevators may promote ice and snow sports industry revolution release date: 2018.04.17 source: www.niurj.com For the Snowland ski resort in Zhangjiakou, a city in the mountainous region north-west of Beijing, its 800-meter high ski resort is a highlight. Huasheng Fujitec Elevator Co offers a solution for the ski resort using mountain lifts to transport skiers. Fujitec has started construction of three mountain elevators there. To meet long-distance transportation needs, Fujitec mountain elevators are equipped with a powerful traction machine and 32-bit high-speed elevator dedicated CPU. The three elevators will be able to transport 81 skiers to the departure hall on the mountain top within 70 seconds. In fact, ski resorts currently installed with vertical elevators are rare. However, with the rapid development of ice and snow sports in recent years, upgrading of infrastructure in ski resorts has become imperative. The installation of Fujitec mountain elevators in Snowland will promote the upgrade of ski resorts, industry sources predict. I. Vertical elevators can improve the capacity of ski resorts. Compared to the transportation methods such as cableways and cable cars, the biggest advantage of vertical elevators for ski resorts is their higher delivery efficiency, which will increase the utilization rate of ski resort resources and allow ski resorts to meet the needs of more skiers. It is reported that Fujitec mountain elevators can transport more than 1,200 people in an hour. Such efficiency is difficult to achieve by increasing in the number of ropeways and cable cars. II. Vertical elevators are not affected by weather. In severe snowfall conditions, ropeways and cable cars usually suspend service, while Fujitec mountain lifts because of being built in caves, will not be affected by the weather and can be operated smoothly under any weather conditions. III. After experiencing vertical lifts, skiers will turn away from ski resorts with poor infrastructure. Consumers will have higher expectations on services after experiencing high-end services. Skiers' consumption habits will become the main driving force for the promotion and transformation of the ice and snow sports industry. From the above three points of view, the three Fujitsu mountain elevators are of great significance for China's ice and snow winter sports industry to accelerate transformation, and will also inject huge energy into the global ice and snow sports market.

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Driverless courier vehicles that can interact with elevators debut in Nanjing release date: 2018.04.17 source: hnrb.hinews.cn A driverless courier vehicle was making delivery in a pilot community on April 16. A new type of self-driving express delivery vehicle debuted in a pilot community in Nanjing, capital of China's eastern Jiangsu province. This kind of courier vehicles can interact with some brands or models of elevators to reach the destination floors to truly realize door to door service of express delivery by courier vehicles. According to reports, in the future, such courier vehicles will enter more than 1,000 communities across the country.

Canny Elevator independently designed and manufactured India's highest escalators were put into commercial operation recently release date: 2018.05.15 source: Canny The two highest escalators in India, independently designed and manufactured by Canny Elevator Co., were put into use on Delhi Metro recently. The escalator lifting height is 15.65m, a new record for the lifting height of escalators in India. This type of product is a KLXF heavy-duty public transit escalator independently developed by Canny Elevator. Its maximum designed elevation is up to 50m. It is an escalator product with independent intellectual property rights with the highest elevation in China. It has been widely used in domestic cities such as Suzhou, Shenzhen, Chengdu, Changsha, Shijiazhuang, Fuzhou, Changchun, Urumqi, as well as rail transit projects in foreign capital cities such as New Delhi, India and Seoul, South Korea.

Canny Elevator wins a number of bids for overseas urban complex projects release date: 2018.04.27 source: Canny With the improvement of the company's comprehensive strength and brand influence, Canny Elevator Co has not only won big orders in domestic market, it has also expanded its international presence. Recently it won a bid for 32 escalators for a project in Mexico. The project consists of a high-end shopping mall, Marriott hotel, and luxury apartment building. Once completed, it will become one of the largest urban complexes in Central America which will have a positive strategic significance for Canny's business expansion

3 / 15 in Americas market. In North Africa, Canny won a bid for 42 escalators in the Egyptian city center, involving almost all of its main elevator models. Located in Cairo, capital of Egypt, the project covers an area of approximately 22,000 square meters, which is a demonstration project that Canny is trying to create. In eastern Africa, Canny won a bid for 33 escalators for Morocco Square Towers in Tanzania. The project located in Dar es Salaam, capital of Tanzania, is the country’s largest urban complex. Under the guidance of its business objective to create a world brand, Canny's international business team has established 61 overseas marketing agency outlets and its products have been exported to more than 100 countries and regions including Russia, South Korea, South Asia, Southeast Asia, the Middle East, Egypt, Tanzania, South Africa, and Latin America. The company has built Canny brand into the most recognized Chinese elevator brand.

Canny Elevator successfully wins bid for Shijiazhuang Metro Line 3 project release date: 2018.03.30 source: Canny Canny Elevator Co recently successfully won a bid for 42 elevator and escalator products for the first phase of Shijiazhuang Metro Line 3, following its successful bid for Fuzhou Metro project early this year. Canny Elevator has participated in the construction of a number of large-scale urban rail transit projects both at home and abroad since it entered this market for the first time in 2006 including subways in South Korea, India and Turkey and subways in domestic cities such as Suzhou, Changsha, Harbin, Shenzhen, Chengdu, Urumqi, Changchun and Fuzhou. Under the severe regulation and control of real estate in the country, rail transit, an important market segment, has increasingly become an important arena for major elevator companies to compete for.

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Hitachi Elevator wins another bid for the second and third phase projects of Wuhan Metro Line 8 release date: 2018.04.28 source: Hitachi Hitachi Elevator won another bid for 92 escalators for the second and third phases of Wuhan Metro Line 8. This was the second time that Hitachi Elevator won the bid for Wuhan Metro project following Wuhan Metro Lines 2, 3, 6, and 7. Since the operation of the Wuhan Metro, Hitachi Elevator has provided 524 escalators to it, and raised the lifting height of its public transport escalators to 22.56 meters.

Guangzhou Baiyun International Airport Terminal 2 opens to traffic today, Hitachi Elevator provides all of its 72 automatic walkways release date: 2018.04.27 source: Hitachi Guangzhou Baiyun International Airport Terminal 2 is fully operational, and the Airport North Station on Line 3 of Guangzhou Metro is also open to traffic. Hitachi Elevator provided a total of 72 automatic walkways for Baiyun Airport Terminal 2 and 22 escalators for Airport North Station on Line 3 of Guangzhou Metro.

Hitachi Elevator expands Guizhou market, winning bid for highest speed elevators in Guizhou release date: 2018.04.14 source: Hitachi In April 2018, Hitachi Elevator won the bid for the No. 1 and No. 2 buildings in Guizhou financial city district, to provide 87 elevator and escalator products for the project. Four ultra-high speed elevators running up to 540 meters per minute (9m/s) are the highest speed Hitachi elevators in Southwest China. Hitachi Elevator and Zhongtian Financial Group Co have been in partnership in Guizhou, capital of China's southwestern Guiyang province since 2014 and have provided more than 1,000 elevators and escalators to Guiyang International Financial Center Phase I and II projects.

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Shanghai Mitsubishi Elevator, Shanghai Shentong Metro continue partnership release date: 2018.06.04 source: Mitsubishi Shanghai Mitsubishi Elevator Co obtained orders of 322 elevators and escalators for Puxi section of Shanghai Metro Line 14 including 68 lifts and 254 escalators. Since 2001, Shanghai Mitsubishi Elevator has provided escalators, machine roomless elevators and maintenance services for Shanghai Shentong Metro, the operator of Shanghai Metro and Shanghai Maglev Train. At present, nearly 1,000 elevators and escalators provided by Shanghai Mitsubishi since their partnership have been in service on 10 subway lines of the city, including Line 1, Line 2, Line 10, and Line 12, involving 153 stations. Among them, all of the escalators for Line 10 and Line 12 were provided by Shanghai Mitsubishi.

Shanghai Mitsubishi inaugurate its first one-stop service center for installing elevators in old residential buildings release date: 2018.05.25 source: Mitsubishi On May 23, 2018, Shanghai Mitsubishi Elevator (Wuhan) one-stop service center for installing elevators in existing residential buildings was formally established. Shanghai Mitsubishi has upgraded its services to a new level by initiating the new one-stop service model. Shanghai Mitsubishi Elevator (Wuhan) one-stop service center for installing elevators in old residential buildings was jointly established by Shanghai Mitsubishi Elevator Co., Ltd. and three local partners in Wuhan, capital of China’s central Hubei province, namely, Wuhan One-Stop Elevator Installation Consulting Co., Hubei JinFuXing Building Engineering Co., Ltd. and Wuhan Junhao Elevator Co., Ltd. Different from the past when customers had to spend a lot of time and laborious efforts for installing elevators in old buildings, Shanghai Mitsubishi Elevator's one-stop service center for such service will bring customers a complete different experience: 1. Customers can enjoy the same quality assurance as big brand residential buildings such as Shanghai Tower, China Overseas Land, and Greentown provided by the company, and feel worry-free about the quality of their elevators; 2. The company will provide one-stop solutions. “After a customer signs the contract, the company will offer turnkey installation for the entire process to allow tenants enjoy reliable services with ease.”

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Shanghai Mitsubishi Elevator (Wuhan) one-stop service center for installing elevators in existing residential buildings is its first one. The second batch of such service centers are under construction and will open soon.

List of subsidies for installing elevators in old residential buildings in provinces and cities in China release date: 2018.04.20 source: www.xindianti.com Unit: Euros

Subsidies will be offered in the cities: 1 Shijiazhuang, capital of Hebei province 2 Zhengzhou, capital of Henan province 3 Wuhan, capital of Hubei province 4 Guangxi Zhuang autonomous region 5 Chuzhou, Anhui province 6 Wuxi, Jiangsu province

Subsidies already offered in cities The maximum subsidy 1 Beijing 32,017 2 Shanghai 32,017 3 Xiamen 29,349 4 Hangzhou 26,681 5 Sichuan Province 26,681 6 Nanjing 26,681 7 Guangzhou 13,340 8 Huizhou 6,670 9 Fuzhou 13,340 10 Xian 20,010 11 Zhangzhou 13,340 12 Shiyan 13,340 13 Ningbo 26,681 14 Jinan 29,349 15 Hefei 33,351

16 Chongqing 26,681

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Basic Market Information Data of China Machinery Industry Value Oct. 2016 - Oct. 2017 - Index Industry Change Dec. 2016 Dec. 2017 in % Sales Total 986,605 722,045 -37% Revenue Agricultural Machinery 18,064 11,443 -57.9% Instrument and Meter 39,246 28,617 -37% Petrochemical and General 91,250 59,151 -54% Machinery Heavy-Duty Mining Machinery 49,058 32,779 -49.7% Machine Tool and Tools 48,145 33,151 -45% Electrical Equipment 231,823 152,103 -52.4% General Machinery Basic 77,909 48,900 -59% Components Food-Processing and Packaging 3,911 2,878 -36% Machinery Automotive 342,753 296,454 -16% Other Machines for Civil Use 48,949 28,685 -71% Internal-Combustion Engines 8,826 6,303 -40% Office Equipment 7,123 5,317 -34% Construction Machinery Industry 19,548 16,264 -20%

Chart 1: Machinery Industry Data (Unit: Mill Euro)

Note:

1. Data Source: NBSC, General Administration of Customs; 2. Unit: Mill Euro; 3. Exchange Rate: The standard exchange rate announced by China Administration of Foreign Exchange Control on 31st Dec. 2017 is 100 Euro exchanging RMB 780.23 Yuan, and 100 USD exchanging RMB 653.42 Yuan.

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Value Oct. 2016 - Oct. 2017 - Index Industry Change Dec. 2016 Dec. 2017 in % Profit Total 75,015 56,014 -33.9% Agricultural Machinery 983 682 -44% Instrument and Meter 3,919 3,151 -24% Petrochemical and General 5,882 4,679 -26% Machinery Heavy-Duty Mining Machinery 2,518 1,899 -33% Machine Tool and Tools 3,596 3,176 -13% Electrical Equipment 17,251 10,572 -63% General Machinery Basic 5,636 3,765 -50% Components Food-Processing and Packaging 290 261 -11% Machinery Automotive 29,359 23,420 -25% Other Machines for Civil Use 3,275 1,581 -107% Internal-Combustion Engines 732 809 9.6% Office Equipment 516 311 -66% Construction Machinery Industry 1,058 1,709 38%

Chart 2: Machinery Industry Data (Unit: Mill Euro)

Note:

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Production Status in Oct.2017 - Dec. 2017

Index Unit Oct.2017 - Dec. 2017

Export Volume Thousand Euro 733,907 Import Volume Thousand Euro 288,096

Chart 3: Key Economical Index of China lifts and escalators Industry

Note:

1. Data Source: NBSC, General Administration of Customs; 2. Exchange Rate: The standard exchange rate announced by China Administration of Foreign Exchange Control on 31st Dec. 2017 is 100 Euro exchanging RMB 780.23 Yuan, and 100 USD exchanging RMB 653.42 Yuan.

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Import & Export in Oct.2017 - Dec. 2017

Key Export Products

Chain type cargo Bucket type cargo elevator elevator 32,061 38,833 Others 4% 5% 49,144 7% Unnamed cargo elevator and conveyor 77,421 10% Passengerlifts 295,815 40% Belt type cargo elevator 115,843 15%

Automatic elevator and pavement 139,882 19%

Chart 4: Market Shares of Key Export Products in Oct.2017 - Dec. 2017

Note:

1. Data Source: General Administration of Customs; 2. Unit: Thousand EURO; 3. Exchange Rate: The standard exchange rate announced by China Administration of Foreign Exchange Control on 31st Dec. 2017 is 100 Euro exchanging RMB 780.23 Yuan, and 100 USD exchanging RMB 653.42 Yuan.

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Key Export Countries

Hongkong Others 22,584 231,146 USA 4% 45% 24,878 The United Arab 5% Emirates 28,226 6%

Turkey 28,218 5%

Indonesia Vietnam 41,202 40,222 8% 8% Malaysia India 54,689 40,793 11% 8%

Chart 5: Market Shares of Key Export Countries in Oct.2017 - Dec. 2017

Note:

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Key Import Products:

Bucket type cargo elevator Others Unnamed cargo 12,695 19,412 elevator and 4% 7% conveyor 74,354 Passengerlifts 26% 30,312 11%

Belt type cargo Roller type cargo elevator elevator 53,078 33,554 18% 12%

Chain type cargo elevator 64,690 22%

Chart 6: Market Shares of Key Import Products in Oct.2017 - Dec. 2017

Note:

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Key Import Countries

Netherland Others Sweden 4,444 28,031 10,900 2% 10% Germany 4% 58,923 21% Italy 17,914 6%

USA 17,719 6% Japan 63,246 Taiwan Province 23% 57,088 20% Korea 23,159 8%

Chart 7: Market Shares of Key Import Countries in Oct.2017 - Dec. 2017

Note:

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Services of VDMA China Office

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