Core Viewpoint - The successful completion of the old elevator replacement project in Kunshan, Jiangsu, highlights the effective use of ultra-long-term special government bonds to support urban renewal and improve residents' quality of life [4][5][6]. Group 1: Project Overview - The Kunshan government initiated a plan to utilize ultra-long-term special bonds for the replacement of old elevators, securing 329 million yuan for the first batch of projects, which includes over 2,100 elevators across 147 communities [4][7]. - The project achieved a 100% signing rate for the replacement of over 2,100 elevators, with the first batch starting in December 2024 [4][6]. - The project was completed in a timely manner, with the first elevator replacement taking only about 15 days, significantly improving the residents' living conditions [6][10]. Group 2: Company Involvement - KONE Elevator was responsible for the majority of the elevator replacements, completing 2,106 units, which accounted for approximately 96% of the project [4][9]. - KONE's long-standing presence in Kunshan, with nearly 30 years of operations, contributed to its selection for the project, as it had established a strong local reputation [4][9]. - The company implemented innovative flexible production lines to adapt to various elevator specifications, enabling the completion of the project within eight months [9]. Group 3: Market Potential - The demand for replacing old elevators is increasing nationwide, with approximately 900,000 elevators over 15 years old identified as needing replacement by the end of 2024 [6][10]. - The ultra-long-term bond policy is expected to alleviate local financial pressures and stimulate growth in the elevator industry, as well as urban renewal projects [5][7]. - KONE and other leading elevator companies are actively engaging in projects supported by ultra-long-term bonds, indicating a growing market opportunity [7][10]. Group 4: Technological Advancements - KONE's updated elevators incorporate advanced safety features and energy-saving technologies, achieving a significant reduction in energy consumption and operational noise [10]. - The elevators are equipped with predictive maintenance capabilities, which can reduce equipment failure rates by approximately 55% and minimize the risk of entrapment by 40% [10]. - The project has set a benchmark for future elevator replacement initiatives across the country, showcasing a model that combines safety, efficiency, and resident satisfaction [4][10].

Group 1 - The core viewpoint of the article highlights the ongoing efforts in Hainan Province to upgrade old elevators in residential communities, with a total of 1,708 elevators scheduled for replacement this year, supported by 256 million yuan in special long-term bonds [1][2] - The initiative is part of a broader policy by the Ministry of Housing and Urban-Rural Development to include the renovation of old residential elevators in the funding support scope, aimed at enhancing safety and convenience for residents [1] - The project in the Jin Ye Du Bin Hai Garden community exemplifies the benefits of this funding, where elevators over 20 years old were replaced, improving safety and reliability for residents [1] Group 2 - The provincial housing and urban-rural development department has mandated local authorities to create systematic guidelines for the elevator replacement process, covering application procedures, timelines, selection criteria, and funding disbursement [2] - Strict project management will be enforced to ensure quality and safety during construction, with property service companies responsible for providing safety alerts and emergency support during the elevator replacement [2]

Industry Insights - The State Administration for Market Regulation has drafted a notice to improve the updating of old residential elevators, focusing on production, inspection, usage, and regulation [1] - The notice emphasizes that safety performance indicators for components selected for updating elevators must not be lower than those of the existing elevators [1] - The market for updating old elevators is identified as a new growth area, combining public demand and industrial upgrades, with policies supporting funding and regulatory collaboration [1] - As of 2023, China has over 9 million elevators, with 15%-20% (over 1.3 million) classified as "old elevators" over 15 years old, and an annual addition of 500,000 to 600,000 elevators entering the aging cycle [1] - The market for old elevator updates is expected to grow at an average annual rate of 18% until 2035, potentially exceeding 100 billion yuan in the next 5-10 years [1] Company Developments - Kone Elevator focuses on elevator research and manufacturing, integrating information technology and automation, and is developing new business growth points such as installation of new elevators, updating old elevators, and home elevators [2] - Meilun Elevator specializes in elevators and escalators, along with related products, and is positioned at a leading level in the domestic market [2]