This article is authorized by Morgan Stanley Finance and Economics.
Hundreds of billions of millionaires,Midea(SZ000333) the founder of the he Hengjian family not only makes electrical appliances, but also sells houses. A few days ago, the real estate company Midea, which is controlled by the Ho family, plans to list in Hong Kong, and the wealth of the Ho family will soar again.
He Xiangjian, 76, is the head of the family, and his son he Jianfeng, 50, has inherited the family business. He Hengjian also has two daughters: he Qianchang and he Qianxing.
According to the 2018 Hurun Global Rich list, he Xiangjian and he Jianfeng ranked seventh in Greater China with a fortune of 185 billion. He Hengjian ranked seventh with a fortune of 123.79 billion yuan on the 2017 Forbes China Rich list.
Why does Midea's only substantial shareholder in real estate enjoy Jian's daughter-in-law, namely Lu Deyan, wife of he Jianfeng? The he family controls Midea's home ownership through the signing of a concerted action agreement between he Hengjian and Lu Deyan.
A real estate company in Shunde, Guangdong, which was controlled by he Hengjian in 2004, is now among the top 50 real estate companies in China, with contract sales exceeding 50 billion last year and profits of 1 billion in 2016 and 1.9 billion in 2017, according to IPO documents.
However, none of the members of the he family worked in Midea's real estate, and only he Jianfeng served as the non-executive director of Midea's real estate.
Mei's real estate listing documents show that the Ho family has not loaded all its real estate and hotel business into Midea's home ownership. In Shunde and other cities, he Jia also operates hotels, golf courses, production and sales of alcohol and entertainment venues, most of which are owned by Shunde Junlan Holdings, a subsidiary of Midea.
After the listing of Midea Real Estate, it will become the sixth listed company controlled by the he family.
Through Midea's holding, he Hengjian actually controlled Midea (000333.SZ), indirectly controlled Little Swan (000418.SZ), and indirectly controlled German listed company Kuka Group.
And he Jianfeng has his own actual control of Yingfeng investment.Yingfeng environment(000967.SZ),Warsaw Bainer(300291.HK). In addition, the Ho family also controls the property of Midea, a new third board company (839955).
Mei's holding is the core business of the he family. He Xiangjian is still chairman and he Jianfeng is president.
But why Midea's holding shareholders Heng Jian (94.55%) and Lu Deyan (5.45%), coupled with Lu Deyan being the sole shareholder of Midea's real estate, it seems that daughter-in-law has a high position in he's home. This also makes Lu Deyan a regular guest on China's rich women list.
The main source of wealth of the he family is the 50-year-old Midea. Midea originated from a small township enterprise in Shunde, Guangdong, which was led by he Hengjian in 1968. At present, the market capitalization is as high as 360 billion, and Midea Holdings holds a 33.58% stake, with a market capitalization of 120 billion.
Midea owns 52.67 per cent of Wuxi Little Swan and 94.55 per cent of Germany's Kuka Group.
According to the 2017 financial report, Midea earned 240 billion yuan in revenue last year and made a net profit of 17.2 billion yuan. His business covers air conditioners, consumer electrical appliances,RobotAnd automation system, intelligent supply chain and so on.
But he Hengjian made it clear that he did not want to turn Midea into a family business. After he Hengjian retired in 2012, Midea was handed over to a team of professional managers, with Fang Hongbo as chairman. He Jianfeng is currently a director of Midea.
As the second-generation head of the he family, in addition to serving as the holding president of Midea, he Jianfeng independently developed his own "Yingfeng system".
The low-key he Jianfeng and Mei's same age, 26-year-old began their own development outside the United States, set up a number of local electrical companies in Shunde, at first mainly for the production of branded products.
Ten years later, he Jianfeng gradually sold these companies, including selling Hyundai Electric Appliances and Jinke Electric Appliances to his father he Xiangjian in 2004.Beautiful Electric Appliances。
Since then, he Jianfeng has carried out a series of capital operations on the platform of Yingfeng Group (later renamed Yingfeng Investment), which he controls.
Yingfeng Environment (formerly known as Shangfeng Tech) is the earliest listed company owned by he Jianfeng. In 2006, he Jianfeng's Yingfeng Investment took over part of the shares of ST from Midea and Jiayu Investment in Zhongshan City, and the latter two did not earn a penny, making he Jianfeng the controller of the listed company, a move that aroused discussion from the outside world.
After more than a decade of development, Yingfeng Investment's industries have included environmental protection, finance, culture and other sectors, among which Yingfeng Environment is the main operation platform of the environmental protection industry.
Last year, Yingfeng Investment in conjunction with several other companies acquired for $11.6 billion.Zoomlion Heavy Industry Science and TechnologyEnvironmental Industry Corporation (Zoomlion) has an 80 per cent stake, of which 7.4 billion is contributed by Yingfeng, accounting for 51 per cent.
On May 17, Yingfeng announced that it plans to buy 100% of Zoomlion's stake, in addition to Yingfeng's holding, it will also take down the shares of several other shareholders and the remaining 20% of Zoomlion Heavy Industry Science and Technology, at a price of more than 14.5 billion.
He and his son own more than a dozen financial institutions. At present, Yingfeng Investment is the largest shareholder (25%) of Yifangda Fund Management Company, and is also one of the founders of Guangdong Private Investment Co., Ltd. (Guangdong Min Investment).
In addition, it is a shareholder of Guangdong Shenhua Insurance Agency Co., Ltd. (4.91 per cent) and 0.22 per cent of Shunde Agricultural and Commercial Bank, which is owned by Midea (5.3 per cent).
He Jianfeng is also involved in the film and television entertainment industry.
In 2012, Yingfeng Investment's Yingfeng Capital took a stake in Hairun Film and Television, and established the Hairun Yingfeng Film and Television Fund and Qilin Yingfeng Film Fund.
In March, he Jianfeng spent $1.8 billion to take ownership of Warsaw Bainer, a listed company, with a combined stake of 17.55 per cent through Yingfeng Investment and related company Ningbo Profei.
The main members of the Ho family also include he Hengjian's two daughters, he Qian Sheung and he Qian Xing.
According to industrial and commercial data, he Qianchang and he Qianxing are shareholders of Foshan Shunde District Yinghai Investment Co., Ltd. (each holding 4.55%) and Guangdong Shunde Ruiying Investment Management Co., Ltd. (both holding 4.55%). The major shareholders of both companies are Yingfeng Investment. Yingfeng Capital Management Fund Guangdong Yingfeng Investment Partnership (limited partnership), Ningbo Profei, he Qianchang, he Qianxing are all among the shareholders.