In fiscal year 2022 and fiscal year 2023, driven by strong operation and strategic development, Tisheng Elevator achieved a new high in revenue and profit.
In the face of the severe economic environment and high inflation, the continuous reform measures not only achieved revenue growth for Tisheng Elevator, but also set a new profit record: order volume, sales, profit before tax (ADJ.).EBITDA), profit margins, and other highs were all reached.
Strategic milestones were achieved in a number of areas, including innovating market solutions, advancing new manufacturing sites, increasing the proportion of services and retrofits, improving organizational efficiency, establishing company-wide business systems, and strengthening our position as a sustainability leader.
Since its spin-off in 2020, Tisheng Elevator has been operating independently for 3 years, during which time it has achieved many significant progresses. During the 2022 FY23 year ending in September 2023, despite the continued severe macro environment, accompanied by high inflation and high interest rates, Tisheng Elevator achieved growth in all key financial indicators, especially the repositioning of sustainable profitability and operational capabilities, and achieved its strategic goals. Thanks to the overall growth in the Modernization, Maintenance and New Elevator business, orders for the year amounted to 9.2 billion euros, up 2 percent on a currency-adjusted basis, and sales increased by 6 percent on a currency-adjusted basis to 8.9 billion euros.
Uday Yad**, Global CEO of Tisheng Elevator, said: "Our global team deserves a lot of praise: they have contributed immensely to the strong results of the fiscal year with extraordinary enthusiasm and hard work. Operating in a challenging and demanding environment, we achieved steady order and sales growth, setting new records for pre-tax profit and margins, while maintaining a strong cash cycle. We are committed to building a high-performance modern enterprise in a multi-dimensional and multi-dimensional way, so as to make Tisheng a future-oriented enterprise. The achievements so far represent substantial improvements and can be seen as early milestones in our development. With this good start, I am confident in the new financial year. ”
Build a resilient first-class chain and a world-class manufacturing enterprise.
In the last fiscal year, the company has launched a new layout of the manufacturing base. In the coming years, the elevator plant in Germany will be transformed into a future-proof and world-leading center of excellence for elevator technology. This move will greatly improve the productivity and cost competitiveness of Tisheng.
Increase the proportion of maintenance and renovation business.
The continuous growth of the volume and the large number of elevators in use have driven the global growth of Tisheng's maintenance and modernization business, and have received more attention and investment. In FY2022-23, the Maintenance & Modernization business contributed 60% of the company's revenue, with a growth rate of 9% after deducting foreign exchange gains and losses, and the maintenance business has recorded sales growth for 11 consecutive quarters. At the same time, Tisheng is also continuing to promote the renovation business to a higher level.
Tisheng Elevator has become one of the fastest-growing companies in China's maintenance and modernization market. Since the spin-off, the company has achieved more than 50% growth in the maintenance business, and in FY2022 23, the growth of the renovation business after deducting foreign exchange gains and losses accelerated to 80%.
Establish a company-wide business system.
In addition, Tisheng has implemented the "Branch Excellence Project" to assist the branch to achieve excellent growth in sales and service. The Branch Excellence Program is a proprietary approach and a core element of Tisheng's new business system, which aims to achieve excellence in branches, factories and functions by leveraging the scale of the enterprise to foster a mindset of continuous improvement and apply it to practice.
Strengthen your position as a sustainability leader.
Tisheng Elevator is actively involved in climate change and the implementation of sustainable urban mobility solutions: transporting more passengers with fewer carbon emissions. In global cities and infrastructure, Tisheng products play a central role in urban mobility, bringing more convenience and improving the quality of life of the growing aging population.
The company's increasing ESG ratings underscore the company's commitment to sustainability. In addition to receiving an A rating from a well-known CDP agency for the third time in a row in 2022, Tisheng Elevator ranked first in the entire machinery industry for two consecutive times in the global ESG rating released by Sustainalytics in July 2023.