Himin is a company based in Dezhou on China’s east coast, which manufactures solar-powered water heaters. The technology is relatively simple and the product affordable for most Chinese households.

Himin is the largest producer of solar water heaters in China, with 9% of the market. The market is highly fragmented and Himin has 3,000 competitors. It is aiming to achieve 20-30% annual growth between now and 2015, which will involve doubling production capacity, which is currently 800,000 units a year.

The Chinese State Council estimates that 250 million of the 400 million households in China are in rural areas and it is in these areas that 60% of the population still has no means of heating its water. Abundant sunshine and the absence of competitive sources of energy make this renewable form of power generation attractive. Current solar power penetration of the market is relatively low: 8%, which compares with 65% in Israel and 30% in Austria.  While installed capacity is 180 million square metres, the government aims to see this increased to 230 million by 2015.

The company’s main plant acts as a showcase for solar technology and is ISO 9000 compliant - this is the international standard for quality management systems. The company has funded a vocational middle school, which specialises in solar energy.

Himin is part of a portfolio managed by CDH Investments, one of CDC’s managers in China and a leader in the private equity industry. CDH has had a long relationship with Himin lasting over ten years, though the investment was not made until 2008. CDH is helping the company to tighten its internal controls and to strengthen its top management.

With the substantial capital injection from CDH, Himin is well-placed to build on its position in the Chinese market and eventually to become a world leader in its sector. If it succeeds in doing so, it will have played a part in improving air quality in China.

1 This is full-year 2008 unless otherwise stated
2 US$46m invested by CDH. CDC’s investment in CDH China Fund III is US$56m; total fund size is US$1.2bn.