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Yangtze Business Daily News● Yangtze Business Daily reporter Shen Yourong

The incident surrounding Zong Fuli's resignation took some unexpected turns.

On the evening of July 22, the official website of Wahaha Group issued a statement, "In order to ensure the stable and healthy development of the company, after friendly consultation among shareholders, Zong Fuli decided to continue to perform the relevant management responsibilities of Wahaha Group."

In this regard, some analysts said that perhaps it was a game of interests, or out of considerations such as Wahaha brand protection and company development, the shareholders reached a consensus.

In addition, recently, Zong Fuli took over two beverage companies owned by her mother Shi Youzhen within one day, which also attracted attention from the outside world.

Zong Fuli may be reinstated

A statement from Wahaha Group once again went viral.

On the evening of July 22, the official website of Wahaha Group issued a statement saying, "In order to ensure the stable and healthy development of the company, after friendly consultation among shareholders, Zong Fuli decided to continue to perform the relevant management responsibilities of Wahaha Group."

The statement was dated July 22, stamped with the official seal of the Wahaha Group, and signed by Zong Fuli herself.

The statement also said, "Wahaha carries our dreams and efforts, and has also received care and support from all walks of life." The statement also mentioned that it was grateful for the attention of all walks of life and the media, and apologized for occupying media resources.

From the online rumors that Zong Fuli resigned from the positions of vice chairman and general manager of Wahaha Group on July 15 to the statement on July 22, Wahaha Group has not made any public response to Zong Fuli's resignation, and the major shareholder Hangzhou Shangcheng District Cultural, Commercial and Tourism Investment Holding Group Co., Ltd. has not made any public statement either.

Although the relevant parties have not spoken out, the market tends to believe that the online news is true, and speculates that there are conflicts between Zong Fuli and shareholders that need to be resolved urgently, including management and personnel reforms of the Wahaha Group.

Regarding the statement released by Wahaha Group, an analyst said that judging from the content of the statement, "friendly negotiations among shareholders" and "ensuring the stable and healthy development of the company" indicate that Zong Fuli and the shareholders have reached a preliminary consensus in terms of protecting the Wahaha brand and maximizing the interests of the company's development. In addition, judging from the relevant details of the statement, such as Zong Fuli's signature, this statement reflects that Zong Fuli has fulfilled her relevant management responsibilities, which shows that Zong Fuli has been "restored to her original position."

Wahaha is experiencing a "midlife crisis". Public data shows that in 2013 and 2014, Wahaha's operating income reached 78.278 billion yuan and 72.043 billion yuan respectively. From 2021 to 2023, Wahaha's operating income was 51.915 billion yuan, 51.202 billion yuan, and 50 billion yuan respectively, showing a slight downward trend and getting further and further away from the peak.

At present, competition in the market, including bottled water, is fierce, and Zong Fuli and Wahaha Group will face severe challenges.

Taking over two companies under my mother's name

In addition to the resignation storm, the Zong family business has also received high attention from the market.

Outside of Wahaha Group, the Zong family has established a large industrial group, including Hongsheng Beverage Group and Hongzhen Investment. Zong Fuli has invested in 27 subsidiaries through Hongzhen Investment. Recently, Zong Fuli has made another move, taking over two beverage companies under the name of her mother Shi Youzhen.

According to the latest information, on July 15, Shaoguan Hengfeng Beverage Co., Ltd. had a personnel change. Previously, the company's chairman was Shi Youzhen, the manager was Zhu Lidan, Zong Fuli and Shi Lijuan were directors, Yan Xuefeng was the supervisor, and Yang Jingying was the financial director. After the change, Zong Fuli became the executive director, Shi Youzhen withdrew, Ding Xiujuan became the financial director, Yan Xuefeng continued to be the supervisor, and Zhu Lidan continued to be the manager.

Shaoguan Hengfeng Beverage Co., Ltd. was established in July 2008 with a registered capital of US$2.5 million. Hongsheng Beverage Group Co., Ltd. and Songyu International Co., Ltd. hold 75% and 25% of its shares respectively.

Also on July 15, major personnel changes occurred in Guangzhou Hengfeng Beverage Co., Ltd. Shi Youzhen no longer served as chairman, and Zong Fuli was changed from director to executive director.

Guangzhou Hengfeng Beverage Co., Ltd. was established in February 2007 with a registered capital of US$39.1 million. Hengfeng Trading Co., Ltd. and Hongsheng Beverage Group Co., Ltd. hold 90% and 10% of its shares respectively.

Both of the above companies are beverage companies, and from the perspective of equity relations, they are directly related to Hongsheng Beverage Group Co., Ltd.

Hongsheng Beverage Group Co., Ltd. was established in 2003 with a registered capital of US$10.25 million. On July 5 this year, Shi Youzhen also stopped serving as a director of Hongsheng Beverage Group Co., Ltd., and Zong Fuli became the executive director.

Public information shows that Hongsheng Beverage Group is China's first full-industry chain product and service provider focusing on the food and beverage industry. Its main products include purified water, milk-containing beverages, tea beverages, fruit and vegetable beverages, canned foods, etc. It also has high-end equipment manufacturing, printing and packaging, beverage production, brand marketing, logistics and warehousing, etc., running through the entire chain of the beverage industry. The company started with Wahaha OEM business and gradually built its own brand.

In June this year, Zong Fuli took over several companies under the name of Zong Qinghou. Many companies including Shenyang Wahaha Rongtai Food Co., Ltd., Guangyuan Wahaha Qili Food Co., Ltd., Kunming Wahaha Qili Beverage Co., Ltd., Hong'an Wahaha Natural Beverage Co., Ltd. and Chaohu Wahaha Food Co., Ltd. underwent industrial and commercial changes. Zong Qinghou resigned as legal representative and chairman, and was replaced by Zong Fuli as chairman or executive director.

Tianyancha shows that there are as many as 179 companies associated with Zong Fuli, covering various fields such as beverages, food, e-commerce, logistics, packaging, marketing, advertising, and investment, showing Zong Fuli's extensive layout in the business field.

Zong Fuli. Image courtesy of Visual China