Interview with Martin Li of Hengan

Martin Li, CFO of Hengan

Could you briefly introduce yourself and your role at Hengan?

I’ve been with Hengan International for nearly a decade as the Chief Financial Officer. We are a Mainland China-based manufacturer founded 40 years ago, and we’ve stayed very consistent in our focus: essential hygiene products. This includes tissues, sanitary napkins, and diapers. My role revolves around managing our finances and, crucially, leading our expansion into international markets.

As a new corporate member of the Dutch Chamber, what is your vision within the Dutch community and how do you expect to benefit from this?

My journey to the Dutch Chamber started with a strong recommendation from my good friend and business partner, Jade Lin, who is based in Amsterdam. She highly recommended the wonderful living and business environment in the Netherlands, which solidified my plan to set up a business and overseas office there.

This was reinforced when my assistant once booked me a transit through Amsterdam. I was so impressed by the city's business environment that I saw it as the perfect potential hub for our European expansion. A connection from the Canadian Chamber—where I’m also a board member—then introduced me to Tom. I immediately saw the value in joining.

My vision is to embed myself in the community, learn, and build connections. I’m excited to participate in events like the upcoming Annual Gala, where we will also sponsor the goodie bags with a special Dutch-themed design featuring our products. Beyond that, I look forward to contributing to committees, particularly those focused on finance and sustainability, where I lead ESG initiatives at Hengan.

Hengan has been named a “China Best Managed Company” multiple times. What’s the secret to your success?

We are honoured by this recognition, and I believe our success boils down to a few core principles. First, while we are a family-owned company, our founders have always valued external oversight. Listing on the Hong Kong Stock Exchange was a strategic move to invite external shareholders to challenge and improve us, not just to raise capital. We’ve undergone several major reforms, often with top firms like IBM, to restructure for success, always welcoming external talent and expertise onto our team.

Second is our remarkable consistency. Despite massive shifts in retail—from small stores to e-commerce—we’ve maintained stable performance against intense competition from both local and international brands. Finally, we never compromise on representing our values: superior product quality, innovation, and a strong sense of social responsibility. This was especially clear during COVID, where we donated millions of test kits, masks, and products like adult diapers to elderly care homes in Hong Kong and Mainland China.

What are the biggest challenges in the hygiene sector?

It’s a dynamic field with several challenges. The first is what we call “involution” in China—an unhealthy trend where companies sell high-quality products at a loss just to gain market share. We see this domestically and with Chinese companies expanding overseas. We refuse to participate in this race to the bottom and stick to stable, fair pricing, which is a challenge when others are undercutting you.

Another challenge, which is also an opportunity, is rising consumer demand. Post-COVID, customers globally are demanding higher-quality, premium products, like wet tissues, which require us to continuously innovate and upgrade our offerings. Furthermore, balancing our strategy across different sales channels, from traditional supermarkets to competitive e-commerce platforms where prices are instantly compared, is a constant strategic puzzle. Ultimately, all these factors make our overseas expansion both our biggest challenge and our most exciting opportunity.

Finally, what is your vision for Hengan’s next chapter?

I am most proud of our company's culture: we never stick to the old ways and are always ready to innovate and reform. That same spirit will fuel our next chapter, which is all about exporting our quality products overseas. We see the Netherlands—with its fantastic harbour and central position in Europe—as the gateway to the European market. Our membership with the Dutch Chamber is a key part of this strategy, providing us with the network and local market insights we need to approach this expansion effectively.

For more information about Hengan, see here