TK Elevator lifts off with new cash pooling solution
Published: Feb 2025
Best Cash Pooling Solution
Highly Commended Winner
TK Elevator (China) Co Ltd
Amanda Shi
Head of China Treasury Dept.
TK Elevator (TKE) is one of the leading global elevator companies. With customers in over 100 countries served by more than 50,000 employees, TK Elevator achieved sales of around €8.9bn in the fiscal year 2022/2023. Over 1,000 locations around the world provide an extensive network that guarantees closeness to customers. After building its position as one of the world’s leading elevator companies in a mere 40 years’ time, TK Elevator became an independent company in August 2020. The company’s most important product is the delivery of service by more than 24,000 service technicians, maintaining approximately 1.5 million units worldwide.
TKE entered the Chinese market in 1995. With the rapid growth of business and manufacturing capacity, TK Elevator China now has approximately 10,000 employees in more than 100 offices nationwide and three production plants.
The challenge
Due to its growth in market share and a corresponding increase in retained earnings TKE was looking for a solution to further optimise its group internal cash management and funding practices. In order to realise its objectives TKE looked to Deutsche Bank China’s cross-border liquidity management solutions.
TKE China had an existing cross-border cash pool in place under the People’s Bank of China (PBOC) Nationwide scheme. However, the existing approved inflow and outflow quota under that scheme did not satisfy business growth and the potential for group internal funding. TKE and Deutsche Bank China’s challenge was to explore other cash pooling solutions that could improve quotas without any changes to the existing pooling solutions.
The solution
Deutsche Bank China undertook a comprehensive comparison analysis for all available cross-border cash pool schemes, took into consideration the quota improvement, set-up requirements, regulatory approval processes and future implementation requirements. After careful comparison and evaluation, the bank recommended the SAFE CNY/FCY pilot scheme for TKE.
After rounds of communication with the local regulator, TKE has implemented a tailor-made solution with the leanest structure, minimal implementation effort and a satisfactory inflow/outflow quota increase, with optimal efficiency.
TKE mandated its bank to set-up an additional cross-border cash pool structure under the latest SAFE CNY/FCY Pilot Scheme. Part of the pilot was building on top of the existing PBOC Nationwide Scheme structure, so that it can run in parallel and provide effective improvement of inflow/outflow quota.
Additional features in this structure include automatic cash concentration for domestic liquidity management and on-demand sweeping for better control of fund mobility.
“Adam Smith Awards Asia’s affirmation is the affirmation to whom rising to the challenge and innovation with enthusiasm even under the uncertainty of the times.”
Amanda Shi, Head of China Treasury Dept.
Key benefits
Improved group internal funding and cash management setup.
Lean structure with one central cash management bank for China.
Future-proof solution.
Exceptional implementation (budget/time).
“With our bank’s rich experience in SAFE cash pooling applications, we reduced our implementation timeline, while ensuring the smooth function of the existing cash pool,” says Amanda Shi, Head of China Treasury Dept.
The Adam Smith Awards Asia are the industry benchmark for best practice and innovation in corporate treasury. The 2024 awards attracted 406 nominations. To find out more please visit treasurytoday.com/adam-smith-awards-asia
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