This story appeared in the February/March 2023 issue of Forbes Asia. Subscribe to Forbes Asia

This article is part of a Forbes article on the richest people in Hong Kong in 2023.See full list here.

Horst Julius Pudwill, co-founder and chairman of Techtronic Industries, which makes power tools and floor care products, said his assets fell 19% to $6 billion over the past year despite higher earnings. rice field. In the first half of 2022, the company’s revenue and net income increased by about 10% year-on-year to $7 billion and $578 million, respectively. However, the slowdown in the US economy weighed on investor sentiment. Techtronic derives 77% of its revenue from North America, and counts Home Depot, a US home improvement store, as its largest customer. Declining disposable incomes and a sharp interest rate hike by the Federal Reserve to curb inflation have cooled consumer demand, pushing new home sales in 2022 to their lowest level in four years. The company’s Hong Kong-listed shares have fallen more than 20% from a year ago.

Market leader Techtronic saw an increase in power equipment sales early last year with a range of new products, including its flagship Milwaukee-branded power tools and Ryobi outdoor products, which account for more than 90% of its total revenue. However, demand for floor care products such as vacuum cleaners has declined as more people return to offices as the pandemic subsides. A former Volkswagen engineer, Padwill moved to Hong Kong in the mid-1970s and in 1985 he co-founded Techtronic with Roy Chi He Ping Chang. Padwill, 78, owns his 21% stake in the company, where his son Stephan serves as vice chairman.

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