Who is He Xiangjian, the publicity shy Chinese billionaire who escaped kidnapping, and how did he make his money?
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
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.
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.
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.