He Xiangjian stands as a titan of industrial capitalism and commands a net worth oscillating near 24 billion USD. His trajectory from a humble workshop in Beijiao to the apex of the global appliance sector defines modern manufacturing efficacy. The Midea Group currently dominates the Shenzhen Stock Exchange with a valuation exceeding 400 billion RMB. This conglomerate originated in 1968. The founder gathered twenty three residents from the town of Beijiao in Guangdong Province to form a production collective. They contributed a mere 5,000 RMB to launch operations. Their initial output consisted of glass bottles and plastic caps rather than the sophisticated electronics seen today. This venture operated under the radar of the command economy that governed the PRC at that time.

The pivot to electric fans occurred in 1980. This strategic shift marked the entry into consumer electronics. He Xiangjian recognized the domestic demand for cooling solutions as the nation began its economic opening. The firm produced its first air conditioner in 1985. Operational rigor intensified throughout the 1990s. The entity became the first township enterprise to execute an Initial Public Offering on the Shenzhen exchange in 1993. That listing provided capital injection for rapid scaling. The founder executed a ruthless Management Buyout in 2001. This maneuver transferred control from local government authorities to private hands. It solidified his absolute authority over corporate direction.

Governance evolution separated this entity from peer organizations. He Xiangjian instituted a divisional structure in 1997. This system granted autonomy to individual production units. Profit responsibility shifted to division heads. The patriarch stepped down from operations in 2012. He appointed Fang Hongbo as chairman. This decision broke the standard pattern of bloodline succession common in Asian family dynasties. Fang Hongbo was a professional manager with no familial relation to the He clan. The transfer of power prioritized competence over genetics. This professionalization allowed the firm to execute complex international mergers without the baggage of nepotism.

Aggressive expansion defined the 2016 fiscal year. The conglomerate acquired KUKA AG for approximately 4.5 billion Euros. KUKA was a premier German robotics manufacturer. The takeover faced intense regulatory scrutiny in Europe. Berlin officials expressed concern regarding the transfer of critical industrial automation technology to Asian control. Midea secured 94.55 percent of KUKA shares despite political headwinds. The deal integrated advanced robotics into their assembly lines. It positioned the group as a leader in Industry 4.0 automation. Toshiba’s home appliance arm also fell under their umbrella during this period. These acquisitions expanded the footprint beyond white goods into high precision manufacturing.

Security protocols failed catastrophically on June 14 of 2020. Five intruders breached the He family residence at the Royal Orchid International Golf Villa in Foshan. The perpetrators carried explosives and threatened the life of the billionaire. He Jianfeng is the only son of the founder. He evaded the attackers and swam across a river adjacent to the villa to contact authorities. Police mobilized rapidly and cordoned off the affluent district. Law enforcement apprehended all five suspects by the following morning. No fatalities occurred during the hostage situation. The breach exposed vulnerabilities in the personal security apparatus protecting China’s ultra wealthy class. Public discourse erupted regarding the safety of high profile tycoons living within the mainland.

The organization now employs over 160,000 personnel globally. Revenue streams diversify across HVAC systems and consumer robotics plus smart logistics. The founder maintains a low profile while his charitable entity distributes millions. The He Foundation focuses on elderly care and community development in Shunde District. His wealth accumulation derives strictly from equity appreciation and dividends. The sheer scale of production output is verifiable through customs data. Midea ships millions of units annually to markets in North America and Europe. The following table details the core financial and biographical metrics associated with the subject.

He Xiangjian construct his empire upon the harsh soil of Beijiao in 1968. The cultural revolution gripped China. Economic activity remained stagnant. Yet this founder gathered twenty three local residents. They pooled a sum of five thousand RMB to establish a production workshop. This initial venture produced plastic lids and glass bottles. No high technology existed here. The group utilized manual labor to survive. They operated under the radar of state control. This period defined the grit of the future billionaire. He Xiangjian risked imprisonment to secure raw materials. The operation expanded into generator accessories and car brake parts during the 1970s. Survival depended on adaptability.

The year 1980 marked a definitive turn. He Xiangjian observed the influx of electric fans into domestic households. He halted all other manufacturing lines. The workshop pivoted entirely to fan production. This decision required absolute authority. Engineers reverse engineered a metal fan brought from Guangzhou. They produced the first unit named "Ming Zhu" months later. Success followed swiftly. The factory gained traction. But the founder saw a ceiling in simple fans. He targeted air conditioning in 1985. This sector belonged to state owned giants. Private entry seemed impossible. He Xiangjian traveled to Japan to study technology. He returned and convinced Beijing officials to grant a manufacturing license. The factory became the first township enterprise to enter this regulated domain.

Capital markets validated his strategy in 1993. The entity listed on the Shenzhen Stock Exchange. It became the first township enterprise to complete an initial public offering. This event raised over one billion RMB. Such liquidity allowed aggressive expansion. The corporation acquired rival factories. Production capacity tripled within two years. But rapid growth created administrative bloat. Profits dipped in 1996. The centralized management structure failed to handle the scale. He Xiangjian recognized the paralysis. He studied the divisional model used by General Motors. In 1997 he initiated a brutal restructuring.

The chairman decentralized power. He broke the monolith into independent divisions. Each division held responsibility for its own research and sales. He Xiangjian famously stated that general managers must succeed or resign. This famously ruthless meritocracy saved the organization. Divisional leaders received full autonomy. Revenue surged immediately. The corporation expanded into microwaves and washing machines. They acquired Sanyo’s electromagnetic oven factory. Toshiba entered a joint venture soon after. The group solidified its dominance in white goods.

Succession planning set He Xiangjian apart from his peers. Most Chinese tycoons transfer control to blood relatives. He Xiangjian rejected this dynastic urge. He groomed Fang Hongbo. Fang started as an editor for the company newsletter in 1992. The founder observed Fang’s intellect and execution capabilities. Over two decades Fang rose through the ranks. In 2012 He Xiangjian stepped down as chairman. He handed the reins to Fang Hongbo. His son He Jianfeng joined the board but did not run operations. This transfer of power to a professional manager ensured operational continuity. It prevented the decline often seen in family run conglomerates.

Global ambition drove the final phase of his active career. The entity sought technology beyond appliances. They targeted German robotics firm KUKA in 2016. The acquisition cost nearly five billion dollars. It granted access to advanced automation tech. This move diversified the portfolio away from consumer goods. It positioned the group as a leader in industrial automation. The founder retained significant equity but withdrew from daily decisions. His net worth swelled. The 2020 kidnapping attempt at his villa highlighted his extreme wealth. Five intruders entered his home. His son escaped by swimming across a river to alert authorities. Police rescued the tycoon without injury. This event underscored the immense capital he accumulated over five decades.

Security failures and financial engineering define the darker chapters of the He Xiangjian legacy. While Midea Group projects an image of industrial stability, the patriarch faces intense examination regarding personal safety protocols and aggressive capital maneuvers. June 14, 2020 marked a collapse in the physical security apparatus surrounding the billionaire. Five intruders breached his villa at the Royal Orchid International Golf Garden in Foshan. These assailants carried explosives. They bypassed community guards and perimeter defenses to hold the founder hostage. This event exposed deep flaws in the protection afforded to China’s ultra wealthy. He Jianfeng, the son and presumed heir, escaped the compound by swimming across a localized waterway to summon authorities. Police apprehended the suspects hours later. No ransom transferred hands. Yet the ease with which criminals penetrated a fortress designed for elites shattered the illusion of invulnerability.

Public records from the Foshan Public Security Bureau confirm the arrest of five individuals involved in the abduction attempt. The incident forced a reevaluation of risk for tycoons residing within the Greater Bay Area. Analysts questioned how a compound charging premium management fees permitted such a breach. Midea stock dropped upon market opening following the news. Investors recognized that the physical safety of the founder correlated directly with corporate stability. The attempted kidnapping was not an isolated crime but a calculated strike against the epicenter of Cantonese manufacturing wealth. It revealed that physical barriers remain insufficient against determined criminal syndicates targeting high net worth individuals.

Geopolitical friction emerged from the 2016 acquisition of KUKA AG by Midea. He Xiangjian orchestrated this takeover valued at 4.5 billion euros. German officials expressed alarm regarding the transfer of advanced robotics intellectual property to a Chinese entity. Berlin did not block the deal at the time. Yet this purchase accelerated protectionist policies across the European Union. Critics labeled the transaction as a strategic absorption of German engineering to serve Beijing’s industrial goals. Midea guaranteed KUKA’s independence and workforce stability until 2023. That period has ended. Tensions rise as Midea integrates KUKA operations more tightly with its Chinese supply chain. European regulators now view this acquisition as a primary case study for restricting foreign investment in sensitive technology sectors. The deal generated significant friction between Western governments and Chinese corporate expansionists.

Financial restructuring in 2024 brought fresh scrutiny to the He family. Midea Real Estate Holding Limited announced a plan to strip its property development business from its listed entity. The proposal involved a distribution in kind. Shareholders would receive unlisted shares in a private company holding the real estate assets. This move aimed to insulate the healthy manufacturing arm from the toxic debt enveloping China’s property sector. Minority shareholders faced a difficult choice. They could accept illiquid private shares or sell their stock before the ex entitlement date. Market watchers characterized this as financial engineering designed to protect the parent group at the expense of liquidity for smaller investors. The transaction effectively removed volatile real estate liabilities from the public balance sheet. It shifted the risk to a private domain where reporting requirements are less rigorous.

This maneuver reflects a broader pattern of insulating family wealth from macroeconomic headwinds. Midea Real Estate had seen its valuation contract significantly before this pivot. By taking the unit private, the He family creates a firewall. This separation prevents real estate defaults from dragging down the credit rating of the appliance giant. Such tactics prioritize the survival of the core industrial asset over the transparency demanded by public markets. Observers note that while legal, these actions leave retail investors holding assets with zero market liquidity. The following data details the financial impact of these controversial decisions.

He Xiangjian established an industrial footprint defined by calculating precision rather than public spectacle. His origin story typically begins in 1968. Twenty-three residents of Beijiao contributed to a pooled capital fund totaling 5,000 yuan. They manufactured plastic bottle lids under the guise of a production group. This humble inception belies the structural rigor that later defined Midea Group. Most narratives overlook the crucial transition in 1980. The company pivoted to electric fans. This decision required navigating a planned economy that did not favor private enterprise. The founder secured raw materials through gray markets when state supply lines failed. Such maneuvers demonstrate a pragmatic adherence to results over procedural compliance.

The corporate architecture underwent a radical shift in 1997. Midea suffered from centralization bloat. Decision channels moved slowly. The chairman introduced a divisional structure. He granted operational autonomy to product units. Each division held responsibility for research, manufacturing, and sales. Profit became the sole metric for survival. This internal competition forced weaker managers out. It propelled the air conditioning unit past domestic rivals. Data indicates that revenue grew fourfold within three years of this restructuring. The model decentralized power while concentrating financial oversight at the holding level. This specific bifurcated control system remains a case study in Chinese business schools.

Familial succession remains the default setting for Guangdong enterprises. He Xiangjian rejected this norm in 2012. He transferred the chairmanship to Fang Hongbo. Fang entered the firm in 1992 as an internal magazine editor. The promotion of a professional manager over a blood relative startled the Shenzhen Stock Exchange. This act separated ownership from management. The He family retained equity control through Midea Holding. Fang wielded operational authority over Midea Group. Markets reacted positively. The stock price appreciation post-2012 validates the meritocratic selection. This governance modification protected the conglomerate from the competency decay often observed in dynastic transfers.

Global acquisitions define the modern era of this industrial giant. The 2016 purchase of KUKA AG for 3.7 billion euros signaled a departure from consumer appliances. The group absorbed a German robotics leader. This move aligned the corporation with automation trends well before competitors reacted. Critics noted the high premium paid. Financial reports from 2023 show KUKA contributing significantly to revenue streams. The integration process proved difficult. Cultural friction existed. Yet the balance sheet reflects a successful diversification strategy. The entity no longer relies solely on white goods. It functions as a technology provider for industrial manufacturing.

Wealth distribution also marks the founder’s record. In 2017 he unveiled a philanthropic plan involving 6 billion yuan. This endowment targets science, education, and elderly care. The He Foundation operates with the same audit strictness applied to the manufacturing divisions. Funds do not simply disperse. They track against specific development milestones in the Foshan region. A breakdown of these allocations reveals a heavy bias toward local infrastructure and healthcare.

Security concerns surfaced violently in June 2020. Intruders breached the billionaire's villa at Royal Orchid International Golf Garden. They carried explosives. The founder's son, He Jianfeng, swam across a nearby river to summon authorities. Police arrested five suspects. The incident highlighted the immense concentration of capital in Beijiao. It also underscored the physical risks accompanying such accumulation. Despite the trauma, the patriarch remained in Foshan. He continues to influence strategy from behind the scenes. His enduring impact lies not in the plastic lids of 1968 but in the rigorous, distinct corporate systems that operate independently of his direct intervention.

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