This is the 12th most frequent Danish word.
han
"He" (third-person singular masculine pronoun).
Here, 'han' is used as the subject pronoun for a male person who is performing the action of reading.
Han læser en bog.
He is reading a book.
'Han' is again the subject pronoun replacing the male person being asked about, showing possession of the action.
Hvad gør han derovre?
What is he doing over there?
Here, 'han' appears in its possessive form 'hans', indicating that the bag belongs to him.