Who is He Xiangjian, the publicity shy Chinese billionaire who escaped kidnapping, and how did he make his money?
On an uneventful Sunday afternoon, a family relaxing in their home at the Royal Orchid International Golf Villa, a luxurious enclave in Foshan, Guangdong province, could not have imagined that they were about to be the target of a high-profile kidnapping plot.
Local police revealed the following Monday that five suspects were under arrest for the home-invasion and kidnapping, and that a victim surnamed He was rescued from the attack. The crime made international headlines because the target is one of the richest men in China – He Xiangjian. While he normally has a low profile, the business he founded, home appliance giant Midea, is a household name.
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He Xiangjian was held hostage by men carrying explosive materials, according to The Economic Observer. The attempt failed after He’s son, 55-year-old He Jianfeng, escaped and swam across a lake to raise the alarm and call the police, reports said.
The 78-year-old founded Midea in 1992 and stepped down as chairman in 2012. He continues to be involved in the company as its controlling shareholder, while his family controls about a third of the business. Forbes ranks him as the 36th richest person in the world with an estimated net worth of US$25 billion.
His tale of success parallels China’s own, beginning when the Chinese economy opened up to the world four decades ago and welcomed foreign investment and private ventures. The self-made billionaire’s story began in 1968, when the 26-year-old He led a group of 23 residents, hailing from the town of Beijiao in Guangdong province, and opened a bottle lid production workshop with just 5,000 yuan (US$706).
After initially producing bottle lids and car parts, the company focused on manufacturing entire products, specifically electric fans, and later commercial air conditioners, which still prevail as a core Midea business product today. Fuelled by demand from progressively affluent consumers in China, the company gradually expanded into a wide variety of electrical home appliances, culminating in its first modern industrial estate built in 1990 with a 100 million yuan investment.
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As one of the first few Chinese companies to lead growth in the hi-tech and consumer appliance industries, the company reported global revenue exceeding 5 billion yuan in 1998. Within just two years, its revenue doubled.
International expansion began in 2007, when Midea opened its first overseas production facilities outside Ho Chi Minh City in Vietnam. It went on to form several strategic joint venture partnerships with an American air-conditioner manufacturer, Carrier Corporation, in Egypt, Brazil, Argentina, Chile and India. The company also achieved a milestone of annual sales revenue topping over 100 billion yuan (US$14.1 billion) that same year.
In 2012, He Xiangjian resigned to focus on development strategy with Midea Investment Holding. Midea Group, which trades its shares on the Shenzhen Stock Exchange and has more than 200 subsidiaries, which include the German firm Kuka, the world's largest producer of robots and appliances, and a 80.1 per cent controlling stake in Toshiba Home Appliances Group. There seems to be no stopping Midea’s success and advancement. The company has reported that its total operating revenue rose 6.71 per cent year-on-year to 279.4 billion yuan in 2019.
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Although China is home to the world’s largest pool of wealthy people, similar dramatic attempted kidnappings are rare. However, this incident may highlight rising crime levels in the country this year, as cases of theft and robberies doubled in April compared with March.
Stabilising unemployment and ensuring living standards were also highlighted as top priorities for China’s leaders in the recent Two Sessions meetings in Beijing.
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The founder of home appliance giant Midea likes to keep a low profile, but after his dramatic escape from kidnappers who held hostage in his own home, his life is firmly in the spotlight