Author|Yao Yue

Source|Yema Finance

In the "2020 Hurun Rich List", the He Xiangjian family ranked No. 2 with a wealth of 225 billion yuan 6 bits. At the same time, a capital landscape with Midea Group and He Xiangjian as its core, spanning manufacturing, automobile, medical, real estate, environmental protection, film and television, finance and other industries has emerged and is still expanding...

Time Back at around 17:33 in the evening on June 14, 2020, Forbes billionaire He Xiangjian was enjoying a rare reunion with his family in Villa No. A60 of Junlan International Golf Lifestyle Village, Beijiao Town, Shunde City.

Affected by the epidemic, his son He Jianfeng, his daughter-in-law Lu Deyan, and his grandson who were originally abroad all returned to China. Suddenly, the sharp brakes pierced the peace and tranquility, and then five strange men broke into the home, one of whom claimed that he had explosives strapped to him.

Their goal was clear, they directly controlled He Xiangjian and demanded a large amount of money from him.

However, while the gangsters were focusing on He Xiangjian's fitness, He Xiangjian's son He Jianfeng did not panic, immediately jumped into the river next to the villa, swam all the way to the other side, and successfully called the police.

There have been similar hijacking cases in Foshan City before, but most of them were aimed at the second generation of rich people to collect gambling debts. This is the first time that they have been targeted at the elderly "creation generation". After receiving the alarm, three-level police forces from Guangdong Province, Foshan City, and Shunde District were dispatched urgently and surrounded the He family villa. After lengthy negotiations, they subdued the suspect at 5 a.m. the next day and successfully rescued 79-year-old He Xiangjian. Mr. He, who has experienced many storms in his life, was held hostage for a full 12 hours. In the end, he had a false alarm and was not seriously injured.

Afterwards, the police found out that the main culprit, Li Moulong, a native of Zhanjiang, was addicted to gambling and was unemployed, so he wanted to make "big money" by kidnapping the richest man in Shunde. So, he gathered his friend Chen Mousi and three fellow villagers to agree on a distribution plan after receiving the huge sum of money. After months of careful planning, it was put into practice on June 14.

The five kidnappers knew that He Xiangjian was rich, but they did not know how rich He Xiangjian was.

In the "2020 Hurun Rich List", the He Xiangjian family ranked 6th with a wealth of 225 billion yuan. He Xiangjian's main wealth comes from holding 31.07% of Midea Group shares. He Xiangjian is also the soul of Midea Group (000333.SZ) and the He family. He Jianfeng, who saved his father by swimming, his daughter-in-law Lu Deyan, and his two daughters He Qianchang and He Qianxing are the right-hand men of the family.

According to incomplete statistics from Yema Finance, members of the He family currently control 8 listed companies, including 6 A-share companies, 1 Hong Kong stock company, 1 German company, and 1 new company. It is a third-board company and has participated in more than 10 financial institutions.

In addition, Wandong Medical (600055.SH) disclosed in February this year that it would be acquired by Midea Group. It has now issued an equity change report, which means that it has also been acquired by the He Xiangjian family.

With He Xiangjian as the core, a "Midea System" capital landscape spanning manufacturing, automobile, finance, real estate, medical, environmental protection, film and television and other industries has taken shape and continues to expand...

A Midea Group employee told Ye Majun that except for Midea Group’s annual dinner, He Xiangjian rarely appeared in the company. "The boss is very easy-going, quiet, and smiles, just like an old gentleman next door." A Midea Group employee once described He Xiangjian at the dinner to the media.

But this does not affect his role as the soul of Midea Group at all.

In 1968, He Xiangjian raised 5,000 yuan to establish the "Beijie Office Plastic Production Group" in his hometown of Beijiao, Shunde. In 1980, he entered the home appliance industry by manufacturing fans, and registered the "Midea" trademark the following year. In 1992, Midea was promoted to undergo joint-stock restructuring.

In 1993, Midea Electric Appliances was listed on the Shenzhen Stock Exchange, becoming China's first listed company reorganized from a township enterprise, with a market value of 1.8 billion yuan.

In the few years after Midea Electric Appliances was first listed, it still focused on industrial development. In 2007, Midea’s capitalization route began to take shape, and the well-known investment bank Goldman Sachs was introduced as a second shareholder.

In 2012, He Xiangjian stepped down as chairman and handed over to Fang Hongbo, ushering in the era of professional managers.

After Fang Hongbo took office, the first major event was to complete the share exchange and absorption merger of Midea Group and the overall listing of Midea Electric Appliances, becoming the leader in A-share home appliances.

In 2017, Midea Group embarked on a path of merger and acquisition expansion. Midea Group's announcement shows that on January 6, 2017, Midea Group acquired the German-listed industrial robot KUKA Company (KU2.DF) for 29.2 billion yuan, with He Xiangjian indirectly holding 94.55%.

In 2020, Midea HVAC Equipment Co., Ltd. acquired Hekang Xinneng (300048.SZ) in the automotive industry for 740 million yuan. He Xiangjian holds 23.73% of the shares and becomes the actual controller.

In February this year, Midea Group announced that it would acquire 29.09% of the equity of Wandong Medical and become its controlling shareholder.

In addition, Midea Innovation Investment Co., Ltd. holds a 1.13% stake in semiconductor and intelligent equipment company Espressif Technology (688018.SH), and Midea Group holds a stake in robot manufacturing company Eft-U (688165.SH). ) 9.1% stake; Midea Intelligent Technology Industry Investment Fund Management Center holds 2.18% stake in industrial Internet of Things company Youfang Technology (688159.SH).

However, the diversified development strategy led by Midea Investment has also been put to the test. Kuka Robot, acquired for 29.2 billion yuan, currently has a market value of only 1.667 billion euros (equivalent to 12.886 billion yuan, exchange rate 7.73).

Yema Finance contacted Midea Group on diversification and other related issues, but as of press time, the other party had not responded.

Liang Zhenpeng, an analyst in the home appliance industry, told Yema Finance that Midea’s diversification has taken too big a step, and it is all non-related diversification. Even some small companies have acquired third-tier brands like Lingwang Elevator, which is similar to Midea’s. There is also a certain degree of synergy in the real estate business. However, after acquiring a large number of non-related businesses, there are no professionals to manage them, and they also occupy the development resources of the main business. Such diversification is very dangerous. Historically, companies such as Little Swan, Aucma, and Chunlan all overturned their main businesses due to diversified expansion.

He Jianfeng's "Yingfeng Series"

The beautiful "Prince" who swam to save his father - He Jianfeng chose not to take over and start a new career. However, He Jianfeng's development still maintains close ties with Midea.

He Jianfeng was born in 1967 and graduated from South China University of Technology. He started his own business at the age of 27, and initially started his father's old business.

In 1994, He Jianfeng established a company in Shunde and started producing rice cookers, induction cookers, etc. for Midea OEM. In 2002, Infore Holdings was established, with its business covering fans, electric heaters, rice cookers, etc.

Soon, He Jianfeng realized that his strength was not in industry. In 2004, He Jianfeng sold two of his companies to Midea Electric and cashed out nearly 70 million yuan.

In 2006, Midea Group and Zhongshan Jiayu Investment Co., Ltd. transferred part of the equity of ST Shangfeng (000967.SZ) to He Jianfeng without making a penny, making He Jianfeng the controller of the listed company. He Jianfeng started to have his first listed platform - Infore Environment. In the end, He Jianfeng still got Midea's glory.

In March 2018, He Jianfeng spent 1.8 billion to acquire the film and television company Hualubaina (300291.SZ), personally holding 4.45% of the shares, and holding a total of 17.55% of the shares through Infore Holdings and affiliated companies. He Jianfeng holds a total of 34.1% of the shares and is the ultimate beneficiary.

In May 2020, Infore Environmental announced that it plans to promote the listing of its wind turbine industry. He Jianfeng may soon usher in his third listed company.

Infore Capital, a subsidiary of Infore Holdings, has laid out AI and robotics tracks. Infore Capital invested US$410 million (equivalent to RMB 2.684 billion) in SenseTime Technology and RMB 135 million in Kuwa Robot. It also invested in unicorns in the AI ??field such as Yunzhisheng and Cloud Whale Intelligence.

With the wave of AI companies going public, the He Xiangjian family’s “Listing Club” will welcome more members.

The financial landscape of "Father and Son"

In addition, He and his son also quietly control many financial institutions.

In July 2015, during the "short China" scandal, 34 accounts on the Shanghai and Shenzhen exchanges were restricted from trading. Infore Capital’s four quantitative hedge fund accounts are among them. He Jianfeng was also involved in "short selling" rumors, and the private equity layout in the secondary market was exposed. According to data from the Private Equity Ranking Network, Infore Capital currently manages more than 10 billion yuan and has 43 funds under its umbrella.

Infore Holdings is the joint largest shareholder of E Fund, holding 22.65% of the shares; it is also one of the founders of Guangdong Mintou, a joint investment platform for private enterprises in Guangdong Province. Tianyancha shows that Infore Holdings owns 4 funds, all of which belong to the commercial service industry, and 19 foreign investment funds.

He Jianfeng also joined hands with Midea to invest in Shunde Rural Commercial Bank, which is known as the "treasury" of Shunde. The bank is currently preparing for an IPO. The "Prospectus" shows that the second and fifth largest shareholders are Midea Group and Midea Finance Company. He Jianfeng personally holds 0.02% of the shares. The three hold a total of 9.71% of the shares, which is overwhelming including Chengshun Assets and Shareholders including Guangdong Wanhe Group.

In addition to the above-mentioned financial institutions, according to the article "Midea’s Young Owner Is Involved in Short-selling Suspicions" published by China Business News in August 2015, at that time He Xiangjian and his son also took shares in Golden Eagle Fund, Bank of Jiangsu, Hubei Bank, Jiangxi Zhangshu Shunyin Rural Bank, Fengcheng Shunyin Rural Bank, Zhejiang Shangyu Rural Cooperative Bank, and Kaiyuan Securities.

It is not uncommon for He and his son to have "one generation engaged in industry and the second generation engaged in finance", such as Zhu Mengyi and his daughter Zhu Juerong of Hopson Development.

Industry insiders analyzed to Yema Finance that "it is easy to win a country, but difficult to defend it." The macro environment is different, and the industry is not as easy to do as before. Turning to new economic fields such as finance is a good choice. Moreover, China's wealth market has just begun. More public money will flow into equity assets, and the investment industry will be an explosive industry.

The Three Women of the He Family

In 1997, in order to better promote the modernization of the enterprise, He Xiangjian could be said to have "scratched the bones to cure the poison" and persuaded a group of entrepreneurial veterans to quit. Among them was his wife Liang Fengchai, the warehouse manager at the time. Since then, the role of women in the He family in the United States has begun to change.

In the 2020 Hurun Women Entrepreneurs List, He Xiangjian’s daughter-in-law Lu Deyan ranked 21st on the list with a net worth of 29.5 billion.

Lu Deyan is very low-key. The outside world only knows that she was born in 1967, is a permanent resident of Hong Kong, and has permanent residency abroad.

Lu Deyan and her father-in-law He Xiangjian*** both run Midea Holdings, the major shareholder of Midea Group. He Xiangjian holds 94.55% of Midea Holdings and Lu Deyan holds 5.45%. Based on this calculation, Lu Deyan indirectly holds 1.7% of Midea Group's shares, with a market value of 10.428 billion yuan.

Lu Deyan is also in charge of the family's real estate business - he is the actual controller of Midea Real Estate (3990.HK), a Hong Kong-listed company, and is the actual controller of Midea Property, a New OTC company, together with He Xiangjian.

The robbery that shocked China mentioned at the beginning of the article happened in the Junlan International Golf Community developed by Midea Real Estate.

Midea Real Estate was established as early as 1995, but it did not develop. In 2013, He Xiangjian transferred all the equity of Midea Real Estate to Lu Deyan, and the real estate business developed independently, and Midea Real Estate gradually improved. It was listed on the Hong Kong Stock Exchange in October 2018.

In 2019, Midea Real Estate’s sales reached 101.23 billion yuan. Sales in 2020 were 126.16 billion yuan.

He Xiangjian’s two daughters, He Qianchang and his younger sister, He Qianxing, have also made great contributions to the family business.

Tianyancha shows that the eldest daughter He Qianchang controls 10 companies, 7 of which are new material companies. It mainly produces molds and plastic products and belongs to the upstream industry of Midea Group.

According to Midea Group's financial report, from 2018 to the first half of 2020, the amount of goods purchased by Midea Group from Huitong New Materials Co., Ltd. controlled by He Qianchang was: 333 million yuan, 1.16 billion yuan, and 519 million yuan respectively.

In November 2020, He Qianchang’s Huitong Shares (688219.SH) was also listed on the Science and Technology Innovation Board. She holds 30.61% of the shares. Based on market value, her net worth is approximately 4.8 billion yuan.

The younger sister He Qianxing serves as a senior executive in 7 companies including Midea Holdings. According to Times Weekly, He Qianxing worked in the electronic device industry and ran Guangdong New Technology Group. He Xiangjian later handed over some business in Hong Kong to her.

In addition, He Qianchang and He Qianxing are both shareholders of Yinghai Investment Company, a subsidiary of Infore Holdings, each holding 4.55% of the shares.

The He family also produced a "hot money" son-in-law - He Qianxing's ex-husband Zhang Jianhe. Before 2007, Zhang Jianhe was quite famous for speculating in stocks such as Lotus MSG, Fudan Fuhua, Hanshang Group, and Farson. In 2010, he was listed on the A-share Fortune 1000 list of "Financial Business" magazine.

Although the sons, daughters, and daughters-in-law of the He family are all talented people, Midea's operations mainly rely on the team of professional manager Fang Hongbo. Data from Midea Group's 2020 semi-annual report show that Fang Hongbo, who serves as chairman and president, Hong Bo received pre-tax remuneration from the company of 9.63 million yuan in 2020; vice presidents Yin Bitong, Gu Yanmin, and Zhu Fengtao received 7.65 million yuan, 3.48 million yuan, and 4.94 million yuan respectively. "Sharing" may be the most important secret of the "beauty system".

Li Delin, a well-known financial influencer and founder of Delin News, told Yema Finance that the most critical point in Midea’s succession issue is to “manage its own power and make good use of the people who can use it.” The He family has mastered the equity and control rights, and has made good use of a team of professional managers like Fang Hongbo. Now the most important issue in Midea's diversified expansion is whether it can find the second and third Fang Hongbo.

Midea Group may be the most adept at using professional managers among the A-share listed companies, and through investment and collaboration, family members have built a huge "Midea family" spanning manufacturing, automobiles, and medical care. , real estate, environmental protection, film and television, finance and other industries, and is still expanding... This model has also brought inspiration to many family-owned private enterprises facing inheritance problems in the A-share market!

You Have you ever bought Midea’s small home appliances? What do you think of the quality? Welcome to leave a message and share.