Latest news with #ZongQinghou
Malay Mail
a day ago
- Business
- Malay Mail
A late billionaire, his ‘princess', and three half-siblings: Wahaha succession battle unfolds
HONG KONG, July 22 — Kelly Zong, long seen as the carefully groomed heir to China's Wahaha beverage empire, is now at the centre of two high-stakes legal battles that could reshape the future of one of the country's most iconic private companies. For decades, Kelly Zong was known as the only child of the late billionaire Zong Qinghou, founder of Chinese beverage giant Hangzhou Wahaha Group Co, according to a Bloomberg report. Her father's efforts to groom her as his successor were praised as a model for succession during China's one-child policy era. Now, however, the so-called Wahaha 'princess' is facing two overlapping legal battles that may shape China's approach to inheritance law and affect Wahaha's reputation. In one case, three people claiming to be her half-siblings have asked a Hong Kong court to compel her to help establish three trusts worth US$2.1 billion. The case, which is based on what the plaintiffs say were Qinghou's instructions before his death, has triggered widespread attention on Chinese social media. Separately, Kong is being sued by former Wahaha employees who want to void a 2018 share buyback, saying the repurchase price was unfairly low, according to sources familiar with the matter. Wahaha's labour union said the buyback had been approved by staff representatives and complied with legal requirements, in a statement posted on Weibo in September. These disputes have renewed scrutiny of Wahaha's leadership and shareholding structure following Qinghou's death and could hinder Kelly's efforts to publicly list the company. The company is also of interest to the Chinese government, with a state-owned firm holding a 46 percent stake, while Kelly owns 29.4 per cent and the company's union holds 24.6 percent, according to corporate data platform Qichacha. 'Chinese family business founders need to take careful note of the Wahaha case,' said Marleen Dieleman, a professor of family business at IMD in Singapore. In court, the plaintiffs said Qinghou had issued handwritten instructions in January 2023 to set up three US$700 million trusts at HSBC in Hong Kong, saying 'if the USD is not enough, convert yuan.' Zong's lawyer said she had agreed to the trust plan in principle, but added that 'we agreed to set up the trusts from the start, but only on the condition that the trust assets would be clearly defined.'
Bloomberg
a day ago
- Business
- Bloomberg
‘Wahaha Princess' Reveals China's Uncommon Prosperity
In a country where the government is short on fiscal income and its people are worried about layoffs and salary cuts, $2 billion raises a lot of eyebrows. Kelly Zong, chief executive at one of China's largest beverage empires, is embroiled in an inheritance dispute. Three plaintiffs, identified by their lawyer as her 'half brothers and sister,' are seeking an injunction in Hong Kong to prevent her from dealing with assets worth about that amount. The feud surfaced just a year after the heiress won a battle for control of Hangzhou Wahaha Group following her father's death last February. As Bloomberg News reported, until now, Kelly Zong was the only child the public had known about. Her lawyer says she doesn't accept the evidence and that her father Zong Qinghou's directives were not given to her.
South China Morning Post
4 days ago
- Business
- South China Morning Post
Why family feud at Wahaha is no laughing matter for China businesses
Zong Qinghou, the late founder of China's biggest soft drinks bottler Hangzhou Wahaha Group , became the talk of the nation after a wealth inheritance feud involving his offspring surfaced earlier this year, barely 12 months after his death. Three plaintiffs claiming to be his children sued chairwoman and CEO Kelly Zong Fuli in Hong Kong and Hangzhou in eastern Zhejiang province, demanding her to honour the late founder's will, which promised them trusts valued at US$700 million each. Until the lawsuit, Kelly, 43, was publicly known as the billionaire's only child. The feud will get a fresh twist at 4pm local time on August 1, when the lawsuit by Jacky Zong Jicang, Jessie Zong Jiele and Jerry Zong Jisheng comes before the High Court in Hong Kong for a decision. Here's why the family feud at Wahaha – a name that resembles the sound of laughter in Chinese – was in the spotlight and how it could affect privately-owned Chinese businesses and the nation's economy. How did founder Zong's rags-to-riches tale inspire Chinese people? Zong was born in 1945 and had to drop out of school because his family was poor. He worked in a salt processing firm, before becoming a school teacher in Hangzhou in 1979. He started a milk business in 1987 with two retired teachers with the help of a 140,000 yuan (US$19,488) bank loan.
South China Morning Post
6 days ago
- Business
- South China Morning Post
Wahaha heiress Kelly Zong's inheritance battle puts Chinese family firms in spotlight
Kelly Zong Fuli, chairwoman and CEO of mainland China's largest soft-drinks producer Hangzhou Wahaha Group , is embroiled in a wealth-inheritance dispute that has prompted questions about the sustainability of the country's family businesses. The daughter of late founder Zong Qinghou is facing two lawsuits as three plaintiffs, claiming to be her half-brothers and half-sister, seek to prevent her from dealing with assets worth about US$2 billion. The feud surfaced just a year after the heiress won a battle for control of the company following her father's death in February 2024 at 79. The company asserted on Monday that the lawsuits were unrelated to its operations, but the situation provoked commentary about the prospects for family-owned firms amid a shaky economy and keen competition. 'No one waves a red flag when business is good, even though family businesses' questionable corporate governance and management structure cannot support their further growth,' said Wang Feng, chairman of Ye Lang Capital, a Shanghai-based financial services group. 'Family feuds and power battles in boardrooms may hurt employee morale and brand image, particularly at a time when the companies are undergoing succession from first-generation entrepreneurs to their offspring.' Wahaha said on Monday that it would not provide any further official response, the Southern Metropolis Daily reported. The company could not be reached for comment. According to a January Hong Kong court document obtained by the Post, the plaintiffs – Jacky, Jessie and Jerry Zong – were demanding that Kelly Zong honour her father's will because the late founder had promised them trusts valued at US$700 million each.
Yahoo
11-07-2025
- Business
- Yahoo
Inside China's $2 Billion Sibling Showdown Over a Beverage Empire Fortune
A $2 billion inheritance dispute has surfaced at the heart of China's iconic beverage empire, Hangzhou Wahaha Group. In a Hong Kong courtroom, three individualsJacky, Jessie, and Jerry Zonghave come forward claiming to be half-siblings of Kelly Zong, heiress to Wahaha and daughter of the late founder, Zong Qinghou. The trio is asking the court to freeze a HSBC bank account that reportedly held around $1.8 billion earlier this year. Their claim? That Qinghou had promised each of them a $700 million trustassets they now say have been mishandled or quietly diminished after his passing. Warning! GuruFocus has detected 11 Warning Signs with NNFSF. Known in China as the Princess of Wahaha, Kelly took the reins of the private company after her father's death in February 2023, following a series of internal shareholder tensions. Now, she faces not only operational headwinds in a slowing Chinese economy but also a legal battle that could challenge the group's succession narrative. The plaintiffs allege that Qinghou instructed subordinates to set up offshore trusts and convert yuan to U.S. dollars, but they say millions have gone missingand they want Kelly held accountable for honoring those instructions, plus interest. Her legal team disputes the story, arguing the orders were never relayed and the evidence falls short. Founded in 1987, Wahaha built its empire on nutrition drinks before expanding into bottled water, juices, and teas across China. But the competition has intensified, with rivals like Nongfu Spring (NNFSF) and rising cafe chains crowding the market. While Kelly continues to steer the company through a shifting consumer landscape, this legal challenge adds another layer of complexityraising questions about succession, trust governance, and offshore wealth protection in China's evolving private sector. This article first appeared on GuruFocus.
