When it comes to Hong Kong’s rich people, many people first think of real estate tycoons such as Li Ka-shing and Lee Shau Kee.
However, in the land of Hong Kong, many outstanding leaders have emerged in the manufacturing industry, such as “Paper King” Li Yunqiang, founder of Bourne Optics Yang Jianwen, founder of Lijin Group Liu Xiangshang, etc.
According to the “2024 Forbes China Hong Kong Rich List”, 79-year-old Horst Julius Pudwill, chairman of the board of directors of Innovation and Technology Industries, continues to be the richest man in Hong Kong’s manufacturing industry, with a net worth of US$4.9 billion (approximately RMB 35.45 billion).
Techtronic Industries (TTI) is one of the world’s largest manufacturers of cordless power tools, specializing in providing a variety of products for DIY users, consumers, professionals and industrial users.
It owns 13 brands, its business and production bases cover North America, Europe, Australia, Latin America, Asia and other places, and has more than 47,000 employees.
In 1985, 40-year-old Pudwell and 32-year-old Zhong Zhiping (currently vice chairman of the group) jointly founded Chuangke Industrial.
Pudwell worked as an engineer for Volkswagen in Germany and was later transferred to Hong Kong; Zhong Zhiping came to Hong Kong at the age of 16 to make a living.
The two had previously jointly established a small distribution company, but as agent distributors, they had difficulty controlling product quality and expanding business scale.
So they decided to manufacture their own products, investing US$20,000 to build their first production plant to produce electric drills and other power tools for the well-known American brand Craftman.
1988, Innovation and Technology
The company set up a factory in Houjie Town, Dongguan. In the same year, it established a cooperative relationship with Ryobi, a well-known Japanese power tool brand. It gradually changed from OEM (original label manufacturing) to ODM (commissioned design and production), and reached cooperation with many well-known brands.
In the late 1990s, Chuangke Industrial acquired the floor care products business of British vacuum cleaner brand Vax.
Entering the 21st century, we have successively acquired multiple brands and businesses, completing the transformation from ODM to OBM (own brand production).
Against the backdrop of relatively weak demand for power tools in 2023, Chuangke Industrial’s global sales recorded a record-breaking US$13.731 billion (approximately RMB 99.356 billion), a year-on-year increase of 3.6%; net profit was US$939 million, a year-on-year decrease of 9.4%; gross profit margin has increased for the fifteenth consecutive year, reaching 39.47%, a year-on-year increase of 0.14 percentage points.
In terms of categories, the sales of the power tools business increased, and the floor care and cleaning business also experienced certain growth.
In terms of regions, sales in each region increased to varying degrees.
Data show that the global hardware tool industry market size is close to US$100 billion.
With the development of intelligent manufacturing, Internet of Things, and automation technology, traditional hardware tools are ushering in innovative upgrades.
TTI ranks second in the world, second only to Stanley Black & Decker of the United States.
They are the first manufacturer to apply lithium ion to power tools, and are also the first company in the industry to apply machine learning and artificial intelligence to rechargeable products.
In the future, the company will combine top electronic technology, advanced motor technology and artificial intelligence to develop innovative products and continue to shine in the global market.
