He Xiangjian of the United States: Transformation is the number one proposition of the Year of the Dragon

He Xiangjian family

Company: Midea Electric

Shareholding ratio: 43.03%

Time to market: 1993.11.12

Current wealth: 17.8 billion

Wealth shrinks: 8.3 billion

For those who are familiar with the beauty, the beauty is almost a small change in two months, a big change in half a year.

In 2010, the founder of the United States, He Xiangjian, proposed to recreate the beauty within five years, with a sales revenue of 200 billion in 2015.

In the same year, with the support of the government's “home appliances to the countryside” policy, Midea's air conditioners, refrigerators, and washing machines totaled more than 300 main models and more than 300 products, which made the US sales in 2010 soar.

However, good times are not common. On November 17, 2011, at the internal meeting of the senior executives of the US Refrigeration Appliances Group, Lu Jian, the president of China Marketing Headquarters, told the executives: The refrigeration group, which is the main source of revenue for Jimei, has more than 10 billion inventories compared to the same period in 2010.

In the face of reality, the beauty began to slow down. The period of too much emphasis on scale growth is over, and the United States is seeking transformation.

First of all, in the internal adjustment, the United States began to "slim down." According to media reports, Midea has nearly 9,000 sales companies in the country, about 8,000 layoffs, and only about 1,000 people are reserved as factory representatives to assist agents in conducting market operations.

At the same time, in 2012, Midea will adopt four levels of high, medium, low and flagship products, all of which will be introduced into the product platform design. It is expected that the development efficiency will increase by 20%, the parts pass rate will increase by 35%, and the standard working hours will increase by 10%.

Then, in the capital market, not long ago, Midea Group transferred 15.3% of its equity to Rongrui Investment (a subsidiary of ICBC International) and Dinghui Investment.

Although in 2009, He Xiangjian had resigned as the chairman of Midea Electric and handed over the scepter to professional manager Fang Hongbo. However, the introduction of two PEs is still the beauty of He Xiangjian. He hopes to make the US governance structure more reasonable and more modernization.

After the introduction of Rong Rui and Ding Hui, in the shareholding structure, 69-year-old He Xiangjian will "co-govern" with PE. He Xiangjian said: "I have thought about it very early, and the beauty will never be a family business."

There are also media reports that a person close to the United States revealed that the United States has been mulling over the past two years to promote the integration of large and small home appliances and the overall listing of enterprises.

On December 2, 2011, Midea Electric’s evening announcement stated that it received a notice from the controlling shareholder Midea Group that Midea Group increased its holding of US Electric Appliances through the Shenzhen Stock Exchange trading system from November 23, 2011 to December 2, 2011. Shares, accounting for 1% of the total share capital.

When the domestic stock market continued to slump and the home appliance sector fell in the second half of the year, the major shareholder increased its holdings. It is said to be based on the confidence of the US's electrical appliances in the future, and is optimistic about the prospects of China's white goods industry.

Finally, in overseas expansion, according to the announcement on the evening of January 6, Midea intends to invest in and expand the Indian air-conditioning market, and has reached an agreement with Carrier to produce and sell domestic air-conditioners in India, and some light commercial air conditioners in the United States. The production and sales operations will all be integrated into a single company with an initial investment capacity of approximately 1 million units.

In order to achieve this integration goal, the US investment is about 20 million US dollars, accounting for 60%; the profit investment is about 13 million US dollars, accounting for 40%. Midea hopes that through this joint venture, it will have a positive impact on the industrial operation and financial status of the United States. In India, it is the fifth largest overseas production base in the United States after Vietnam, Egypt, Brazil and Argentina.

Midea is transforming from “factor-driven” to “efficiency-driven”, and whether it will achieve the goal of He Xiangjian in 2015 remains to be seen.