Contents:

INTRODUCTION Executive Summary Report Coverage Glossary     1 MARKET BACKGROUND       1.1 Fast Facts       1.2 Exchange Rates         1.2.1 Exchange Rates: China         Table 1.1 AVERAGE ANNUAL EXCHANGE RATES BETWEEN RMB AND US$ 1994–2000         1.2.2 Exchange Rates: Hong Kong         Table 1.2 AVERAGE ANNUAL EXCHANGE RATES BETWEEN HK$, RMB & US$ 1994–2000       1.3 Regions of China       Map 1.1 CHINA: PROVINCES AND MUNICIPALITIES       1.4 Demographics         1.4.1 Demographics: Total Population         Table 1.3 TOTAL POPULATION 1994–2000         1.4.2 Demographics: Population by Location         Table 1.4 POPULATION BY URBAN-RURAL DIVIDE 1994–2000         1.4.3 Demographics: Population Breakdown by Location         Table 1.5 POPULATION BREAKDOWN BY URBAN-RURAL DIVIDE 1994–2000         1.4.4 Demographics: Population by Province         Table 1.6 POPULATION BY PROVINCE 1999/2000         1.4.5 Demographics: Population Density by Province         Table 1.7 POPULATION DENSITY BY PROVINCE 2000         1.4.6 Demographics: Population Concentration         Map 1.2 CONCENTRATION OF POPULATION BY PROVINCE 2000         1.4.7 Demographics: Population by Gender         Table 1.8 TOTAL POPULATION BREAKDOWN BY GENDER 1994–2000         1.4.8 Demographics: Population by Age Group         Table 1.9 POPULATION BY AGE GROUP 1994–2000         1.4.9 Demographics: Population by Age Group         Table 1.10 POPULATION BY AGE GROUP 1994–2000       1.5 Consumer Wealth         1.5.1 Consumer Wealth: GDP and Cost of Living         Table 1.11 GDP AND COST OF LIVING INDEX 1994–2000         1.5.2 Consumer Wealth: Provincial Differences in GDP         Table 1.12 GDP BY PROVINCE 1994–2000         1.5.3 Consumer Wealth: GDP Growth by Province         Table 1.13 GDP GROWTH BY PROVINCE 1994–2000         1.5.4 Consumer Wealth: GDP Per Capita by Province         Table 1.14 PER CAPITA GDP BY PROVINCE 1999/2000         1.5.5 Consumer Wealth: Concentration of Wealth by Province         Map 1.3 VALUE OF GDP PER CAPITA BY PROVINCE 2000         1.5.6 Consumer Wealth: The Major Cities         Table 1.15 LEADING CITIES KEY ECONOMIC INDICATORS 2000         1.5.7 Consumer Wealth: The Significance of China’s Accession to WTO       1.6 Households         1.6.1 Households: Overview of Household Conditions         1.6.2 Households: Total Households by Size         Table 1.16 NUMBER OF HOUSEHOLDS BY SIZE 1994–2000         1.6.3 Households: Total households by Urban/Rural Divide         Table 1.17 NUMBER AND SIZE OF HOUSEHOLDS BY LOCATION 1994–2000         1.6.4 Households: Income Earners Per Household         Table 1.18 AVERAGE NUMBER OF INCOME EARNERS PER HOUSEHOLD 1994–1999       1.7 Employment         1.7.1 Employment: Number of Workers by Sector         Table 1.19 NATIONAL EMPLOYMENT BY SECTOR 1994–2000         1.7.2 Employment: Growth by Sector         Table 1.20 GROWTH IN EMPLOYMENT BY SECTOR 1994–2000         1.7.3 Employment: Workers by Gender         Table 1.21 TOTAL NATIONAL WORKFORCE BY GENDER 1994–2000         1.7.3 Employment: Workers by Habitation         Table 1.22 NATIONAL WORKFORCE BY HABITATION 1994–2000         1.7.4 Employment: Unemployment         Table 1.23 URBAN UNEMPLOYMENT RATES 1994–2000       1.8 Consumer Market         1.8.1 Consumer Market: Consumer Spending Trends         Table 1.24 CONSUMER EXPENDITURE* BY BROAD SECTOR AT CURRENT PRICES 1994–2000         1.8.2 Consumer Market: Per Capita Consumer Expenditure         Table 1.25 PER CAPITA CONSUMER EXPENDITURE* BY BROAD SECTOR AT CURRENT PRICES 1994–2000         1.8.3 Consumer Market: Retail Sales and Consumer Spending         Table 1.26 RETAIL SALES AS A PROPORTION OF CONSUMER EXPENDITURE 1994–2000         1.8.3 Consumer Market: Urban Income and Spending Compared         Table 1.27 URBAN AVERAGE ANNUAL INCOME AND EXPENDITURE 1994–2000       1.9 Consumer Trends         1.9.1 Consumer Trends: Consumer Response to Political Change         1.9.2 Consumer Trends: Consumer Response to Economic Change         1.9.3 Consumer Trends: Changes in Lifestyle Expectation Livelihood Housing Possessions Travel Entertainment Purchasing Influences Taboos     2 CHINA’S ELEVATOR MARKET       2.1 Total Installations       Table 2.1 INSTALLATION OF ELEVATORS IN CHINA 1994-2000       2.2 Elevator Production     3 MARKET SHARES       3.1 Domestic versus Foreign Brands       Table 3.1 PERCENTAGE OF NEW ELEVATOR INSTALLATIONS BY ORIGIN 2000       3.2 Brand Shares       Table 3.2 LEADING COMPANY SHARES OF ELEVEATOR SALES IN CHINA 2000     4 OUTLOOK       4.1 Outlook: Forecast Trends       4.2 Outlook: Forecast Elevator Installations       Table 4.1 INSTALLATION OF ELEVATORS IN CHINA 2001-2005     5 KEY SECTORS FOR ELEVATOR INSTALLATIONS       5.1 Airports         5.1.1 Airports: Introduction         5.1.2 Airports: Total Number of Airports in China         Table 5.1 TOTAL NUMBER OF CIVIL AIRPORTS IN CHINA 1996-2000         5.1.3 Airports: China’s Major Airports         Table 5.2 MAJOR AIRPORTS BY PASSENGER THROUGHPUT 1999/2000         5.1.4 Airports: Developments         5.1.5 Airports: Opportunities       5.2 Hotels         5.2.1 Hotels: Introduction         5.2.2 Hotels: Total Number         Table 5.3 THE TOTAL NUMBER OF HOTELS IN CHINA 1996-2000         5.2.3 Hotels: Hotels by Size         Table 5.4 NUMBER OF HOTELS IN CHINA BY HOTEL SIZE 2000         5.2.4 Hotels: Developments         5.2.5 Hotels: Opportunities       5.3 Retailing         5.3.1 Retailing: Introduction         5.3.2 Retailing: Department Stores         Table 5.5 TOP 15 DEPARTMENT STORES RANKED BY GROSS SALES 1997-1999         5.3.3 Retailing: Retail Infrastructure Development       5.4 Public Transport         5.4.1 Public Transport: Introduction         5.4.2 Public Transport: High Speed Trains         5.4.3 Public Transport: Major Urban Developments in China       5.5 Residential Construction         5.5.1 Residential Construction: Introduction         Table 5.6 BASIC STATISTICS ON CHINA’S CONSTRUCTION INDUSTRY 1996-2000         5.5.2 Residential Construction: The Housing Market         Table 5.7 FLOOR SPACE COMPLETED & UNDER CONSTRUCTION IN CHINA 1996-2000     6 ISSUES       6.1 China’s Building Code & Elevator Installation       6.2 The Growth of High-Rise Buildings in China       Table 6.1 THE HIGHEST BUILDINGS IN CHINA AND HONG KONG 2001       6.3 Beijing 2008 Olympic Games Opportunities     7 COMPANY PROFILES       7.1 Hitachi Ltd         7.1.1 Hitachi: Company Details         7.1.2 Hitachi: Company Background         Table 7.1 HITACHI: FINANCIAL RESULTS 2000/2001*         7.1.3 Hitachi: Elevator Activities in China       7.2 Toshiba Corporation         7.2.1 Toshiba Corporation: Company Details         7.2.2 Toshiba Corporation: Company Background         Table 7.2 TOSHIBA CORPORATION: FINANCIAL RESULTS 2000/2001*         7.2.3 Toshiba Corporation: Elevator Activities in China       7.3 ThyssenKrupp AG         7.3.1 ThyssenKrupp AG: Company Details         7.3.2 ThyssenKrupp AG: Company Background         Table 7.3 THYSSENKRUPP AG: FINANCIAL RESULTS 1999/2000*       7.4 Otis Elevator Company         7.4.1 Otis Elevator Company: Company Details         7.4.2 Otis Elevator Company: Company Background         Table 7.4 UNITED TECHNOLOGIES: FINANCIAL RESULTS 1999/2000*         7.4.3 Otis Elevator Company: Elevator Activities in China         7.4.5 Otis Elevator Company: Future Strategy       7.5 KONE Corporation         7.5.1 KONE: Company Details         7.5.2 KONE: Company Background         Table 7.5 KONE: FINANCIAL RESULTS 1999/2000*         7.5.3 KONE: Elevator Activities in China       7.6 Schindler Holding Ltd.         7.6.1 Schindler: Company Details         7.6.2 Schindler: Company Background         Table 7.6 SCHINDLER HOLDINGS: FINANCIAL RESULTS 1999/2000*         7.6.3 Schindler: Elevator Activities in China       7.7 Tatung Company         7.7.1 Tatung: Company Details         7.7.2 Tatung: Company Background         Table 7.7 TATUNG COMPANY: FINANCIAL RESULTS 1999/2000*         7.7.3 Tatung: Elevator Activities in China       7.8 Hyundai Corporation         7.8.1 Hyundai: Company Details         7.8.2 Hyundai: Company Background         Table 7.8 HYUNDAI CORPORATION C: FINANCIAL RESULTS 1999/2000*         7.8.3 Hyundai: Elevator Activities in China       7.9 Mitsubishi Corporation         7.9.1 Mitsubishi Corporation: Company Details         7.9.2 Mitsubishi: Company Background         Table 7.9 MITSUBISHI CORPORATION: FINANCIAL RESULTS 2000/2001*         7.9.3 Mitsubishi: Elevator Activities in China     8 OTHER ELEVATOR MANUFACTURERS       8.1 China Changjiang Runfa Group       8.2 Huangshi Aolingda Elevator Co. Ltd.       8.3 Liuzhou Welos Elevator Factory       8.4 Ningbo Xinda Elevator Accessories Factory       8.5 Selcom Suzhou Co. Ltd.       8.6 Shanghai Shangling Electric Appliances       8.7 Suzhou Jiangnan Elevator (Group) Co. Ltd       8.8 Suzhou Kodak Hydraulic Elevator Co. Ltd       8.9 Suzhou XunDa Elevator Ltd.        8.10 Wuhan Jinhushui Elevator Service General Co. Ltd.        8.11 Wuhan Modern Elevator Fitting & Repairation Project Co. Ltd.        8.12 Wuhan Xunda Elevator Industry Development Co. Ltd.        8.13 Xingchang Hardware & Machinery Co. Ltd.     9 CONTACTS       9.1 Government Departments         9.1.1 Ministry of Construction         9.1.2 Ministry of Internal Trade         9.1.3 The State Economic and Trade Commission         9.1.4 Ministry of Finance      10 RELEVANT TRADE FAIRS & EXHIBITIONS        10.1 China Intelligent Building Show        10.2 Fujian International Building Electrification & Elevator Show        10.3 Lift & Parking China        10.4 International Exhibition on Construction Equipment & Building Materials Machinery

Summary:

In 1996, China became the largest elevator (lift) market in the world. China has also emerged as one of the three leading elevator-manufacturing nations globally (along with the USA and Japan), a process that has occurred largely through inward investment by Taiwanese, American and Japanese companies as well as growing domestic demand for elevators. Indeed, Asia as a whole is the major continental market for elevators, accounting for 50% of total worldwide sales currently. The world’s major elevator manufacturers have all established representative offices and/or joint ventures and production facilities in China including Otis, Schindler, Mitsubishi, Hitachi, Toshiba and ThyssenKrupps. The growth in demand for elevators has emerged since China’s economic reforms and open-door policy were launched under Deng Xiaoping in the 1980s. The construction industry has become one of the main beneficiaries of these reforms with new building taking place across China, both residential, commercial, hotel and retail space. Cranes have become a fixture of the skyline of all China’s major cities. This means that China has a significant market for high-quality and high-speed elevators. The number of high-rise buildings is growing rapidly. In Beijing, there are now at least a dozen high rises over 100 meters high. Currently, China’s total building projects account for approximately one-fourth of the world’s total. Despite the boost to the construction industry in China, the country still has the world’s greatest potential elevator market. The major markets within China are currently Beijing, Shanghai, Chongqing, Guangzhou and Shenzhen (the latter two in Guangdong province). The Chinese elevator market is now increasingly being characterised by a strong link between new installations and after-sales activity, with demand for services growing faster than new installations as the country develops. Currently 50% of the business volume in the China elevator market is generated by after-sales activity. This is perhaps not surprising when it is noted that the Beijing Municipal Bureau of Technical Supervision estimates that at least 1,000 elevators in the city are running with defects at any one time. With China’s accession to the World Trade Organisation imminent, the liberalisation of the residential housing market underway and the Beijing 2008 Olympic Games now assured, the construction market appears set for a further boom.