He Xiangjian was born in 1942 in Shunde, Guangdong – a region now well known for its electrical appliance factories.
He began his career as a farmer before becoming an apprentice in a factory as he did not have the chance to go to school.
The young man quickly started his entrepreneurial ambitions.
In May 1968, he surrounded himself with 23 Shunde residents and raised RMB 5,000 ($730) to start a factory for manufacturing glass bottles and plastic lids: “Beijie Plastics Production Team”. The entrepreneur is visionary and quickly develops the ambition to go further than just producing glass bottles and plastic lids.
In 1980, He’s factory diversified and produced fan components for a public company. He then launched his first electric fan, called Pearl. In 1981, he registered the Midea brand. It is the beginning of a great story. The company is growing in competence and is rapidly diversifying into various household appliance products: microwave ovens, washing machines and even refrigerators. So many products that are then new in China, and are welcomed with open arms by Chinese households.
In 1984 Midea launched a plastic fan, which could be used overnight, which he successfully managed to export to Hong Kong. In 1993, the company ranked third in the Chinese air conditioning market. He Xiangjian not only succeeded in supporting Midea’s growth, but he also took the risk of expanding it, by listing his company on the stock market. On November 12, 1993, the group was listed on the Shenzhen Stock Exchange, becoming the first listed cantonese company approved by the China Securities Regulatory Commission.
« I walk a step or two behind rather than take half a wrong step ».
Midea focuses on the white goods market and has avoided the temptation to diversify into “black” goods such as cell phones and televisions. The entrepreneur believes that there is more than enough growth potential in the home appliance market to maintain the interest of its shareholders. To this end, the businessman acquired other brands such as Little Swan to produce washing machines and refrigerators. The group concluded a joint venture with Bosch, a company based in Germany, to sell household appliances across Europe. Midea now has more than 200 subsidiaries, including the German robotics firm Kuka. The Midea group also offers logistics services.
As smart machines and smart factories usher in a new era of manufacturing, Midea Group is bringing its avant-gardiste thinking to the robotics industry. Midea Group is currently deploying more than 800 robots in their production lines using Kuka to advance their vision of smart factories. He Xiangjian went out of business in 2012 and did not hand over the head of his business to one of his children like many entrepreneurs but to Paul Fang. He began in the Marketing department and held several management positions before becoming President.
Known for his philanthropic activities, He Xiangjian generously contributed $2.3 million for rescue operations after the earthquake in Qinghai Province.
He also created the He Xiangjian Foundation to promote cultural causes, education, disaster rescue, community development and environmental causes. In 2017, the entrepreneur donated yuan 6.8bn (about $1.09bn) to a charity: he ranked 1st on the list of the 100 best Chinese philanthropists.
Xiangjian has three children and currently lives in Foshan. He speaks Cantonese, a dialect commonly used in Guangdong. He only gives a few interviews and rarely speaks in public because he does not speak well Mandarin, the official national language. He shares his time between golfing, swimming and reading newspapers.
He Xiangjian is China’s most generous self-made billionaire since 2013.
KEY FIGURES
- Headquarter in Guangdong, China
- 114 765 employees (more than 10 000 in R&D)
- Market capitalization 2019 $52,2bn Total turnover $39,5bn
- 20 research centers in nine countries 56 000 patents authorized
HOUSEHOLD APPLIANCES IN CHINA
- China is the most important center of production of household appliances in the world
- A market of $49bn in 2020
- Average revenue per consumer cur-rently stands at $173
- Consumer penetration rate is 19.6% in 2020
He Xiangjian is the founder of Midea Group, a multinational manufacturer of household appliances and one of the most successful private company in China. His fortune is estimated at $21,6bn. (source : Forbes 2020).