At least in my field, it’s rather uncommon to mention an author’s name in a paper. Rather it is something along the lines of the following (somewhat depending on the citation style):
Ref.  showed that discombobulators can facilitate banana transmogrification.
Recently it was shown that discombobulators can facilitate banana transmogrification .
Recently it was shown that discombobulators can facilitate banana transmogrification (He et al., 2014).
That does not mean that it would be wrong to mention an author by name, but I would find a paper that intensively does so somewhat strange – even if the paper heavily builds upon this author’s work. At least I would find it totally acceptable if such an author was mentioned only once or twice.
So as a first step, I suggest to change your writing style as to mention He and other authors less often. If you have a whole paragraph where you refer to He’s work in every sentence, it should suffice to mention this in the first sentence, e.g., like this:
The method we are proposing is an extension of the method proposed by He , which briefly works as follows: […]
Mentioning any author in such a paragraph repeatedly, let alone always at the beginning of a sentence is something that I would consider bad style anyway. Be sure to check as to whether this is not totally uncommon in your field.
For the remaining occurrences of He’s name, rephrase the sentences such that the name does not occurr at the beginning of a sentence such that it does not happen at the beginning of a sentence or after an abbrevation. Capitalisation should suffice to make the distinction here. You may hold some subconscious ideal that it should be possible to tackle such issues without rephrasing sentences, but it’s a totally viable approach. Also, as explained before, this should at most apply to a few sentences.
Some thoughts on alternatives and what I consider problematic about them:
- Mentioning the author’s full name. This is still likely to cause confusion, in particular among those who do not see the issue and wonder why this author is mentioned with a first name. Also, in some situations, the reader may not be aware that the first and last name actually belong together.
- Prepending the initialised first name of the author. This makes reading your text even more difficult, as one will likely think at first that a sentence ends after D. He’s first name, in particular if it’s grammatically plausible such as in this sentence.