From the time when Zong Fuli publicly issued her "succession declaration" to the rumors of her departure, only a short span of four months had passed. Wahaha, a beverage empire built from scratch by Zong Qinghou, has once again attracted attention to its business landscape.

Zong Fuli Takes Over as Legal Representative of More Than 20 Companies

On July 18th, a resignation letter from Zong Fuli, the Vice Chairman of Wahaha Group, circulated on the internet. In a speech in March of this year, Zong Fuli stated that she is both a "veteran" who has been exploring the industry for 20 years and a "new general" who has taken over the "baton" of corporate management.

Speaking of Wahaha under Zong Fuli's leadership, the most representative enterprise is Hangzhou Wahaha Group Co., Ltd.

Data from Tianyancha shows that the current legal representative of Hangzhou Wahaha Group Co., Ltd. (hereinafter referred to as "Wahaha Group") is still Zong Qinghou. The major shareholder of Wahaha Group is Hangzhou Shangcheng District Culture, Commerce, and Tourism Investment Holding Group Co., Ltd. (referred to as "Shangcheng Culture, Commerce, and Tourism Holding"), holding a 46% stake. The actual controller of the company is the Finance Bureau of Shangcheng District, Hangzhou.

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Zong Qinghou holds 29.4% of the shares in Wahaha Group, making him the second-largest shareholder, while the Wahaha Employee Stock Ownership Association holds the remaining 24.6% of the shares. Founded in 1993, Wahaha Group has 385 employees and a registered capital of 526 million yuan.

Currently, Wahaha Group directly invests in a total of 15 enterprises, of which 12 are operating normally and 3 are in an abnormal operating state. It is worth mentioning that Wahaha Group's shareholding in these enterprises is all below 49%, including Hangzhou Wahaha Food Co., Ltd., Hangzhou Wahaha Beverage Co., Ltd., and Hangzhou Wahaha Hongzhen Packaging Co., Ltd.

In addition to the aforementioned Wahaha Group, Zhejiang Wahaha Industrial Co., Ltd. (hereinafter referred to as "Wahaha Industry") is also under the spotlight.

Alibaba's auction platform shows that this year, the natural person shares of the company have been auctioned nearly 50 times, ranging from 5,000 shares to 60,000 shares, with prices from over 90,000 yuan to hundreds of thousands of yuan.

Wahaha Industry, formerly known as Hangzhou Wahaha Food City Co., Ltd., was established in 1993 and is also located in Hangzhou, Zhejiang Province, with a registered capital of 91.792 million yuan. Wahaha Industry has invested in eight enterprises, including Zhejiang Wahaha Drinking Water Co., Ltd. and Hangzhou Wahaha Medical Health Products Co., Ltd.As for Zong Qinghou himself, Tianyancha shows that he is still associated with 128 companies, while Zong Fuli is associated with 179 companies, and almost all of the aforementioned companies are in a state of existence. According to Qichacha information, Zong Fuli has taken on the role of legal representative in more than 20 companies such as Hangzhou Wahaha E-commerce Co., Ltd., Zhejiang Qili Investment Co., Ltd., and Hangzhou Hongsheng Marketing Co., Ltd. this year, but then resigned from the positions of legal representative in companies such as Guiyang Wahaha Changsheng Beverage Co., Ltd. and Guiyang Wahaha Food Co., Ltd.

Hongsheng Beverage Group, an external company, has recently been the subject of an online letter of complaint from someone claiming to be a former Wahaha employee, alleging that Zong Fuli, the president of Hongsheng Group, has embezzled a large amount of state-owned assets from Wahaha Group.

The letter claims that Hongsheng Group, a Sino-foreign joint venture company actually controlled 100% by Zong Fuli, had been a contract manufacturer for Wahaha Group before the passing of the elder Zong. After his death, Zong Fuli allegedly transferred orders, profits, and even assets to her own Hongsheng Group from the state-owned Wahaha Group to embezzle state-owned assets.

Regarding this letter of complaint, relevant personnel from the Zhejiang Provincial State-owned Assets Supervision and Administration Commission have not confirmed its authenticity and stated that even if there is one, they cannot see the content of the complaint letter, suggesting that the reporter inquire with the信访office of the Zhejiang Provincial State-owned Assets Supervision and Administration Commission. As of the time of publication, there has been no response from the信访office. Relevant personnel from the Hangzhou Municipal State-owned Assets Supervision and Administration Commission said they are not clear whether they have received the complaint letter and stated: "Even if we received it, it is not our responsibility; Wahaha should be under the jurisdiction of the State-owned Assets Supervision and Administration Commission of Shangcheng District." Relevant personnel from the Shangcheng District Government of Hangzhou stated that they are not clear about the matter.

Therefore, it is still impossible to determine the authenticity of this complaint letter and the content it involves.

Data from Qichacha shows that Hongsheng Beverage Group Co., Ltd. was established in 2003, with its headquarters in Hangzhou, China. The legal representative is Zhu Lidan, and the major shareholder is Hengfeng Trade Co., Ltd., holding a 98% stake. The latter is registered in the British Virgin Islands and has invested in 13 enterprises, including Suqian, Guilin, and Changsha Wahaha Hengfeng Beverage Co., Ltd.

The company's homepage indicates that the main products of Hongsheng Beverage Group include bottled drinking water, dairy beverages, tea beverages, fruit and vegetable beverages, canned food, etc. It currently has 20 production bases, more than 40 subsidiaries, and more than 100 production lines across the country, and is one of the top 500 private manufacturing enterprises in China for the year 2020. After completing her studies in international business in 2004, Zong Fuli returned to China and began working at Wahaha from the production line, and in 2007, Zong Fuli began to lead Hongsheng Group.

Hongsheng Beverage Group is not a new face; its predecessor was once Hangzhou Hongsheng Beverage Co., Ltd. and Hangzhou Wahaha Hongsheng Beverage Group Co., Ltd., and it is also one of the external companies of Wahaha.

The external companies of Wahaha were born after 2000 and were also a product of the joint venture with Danone at that time. In Zong Qinghou's autobiography, he once stated that due to the rapid growth of Wahaha, it was necessary to increase investment to expand production capacity, but it was rejected or delayed by the Danone board of directors. Therefore, a series of external companies were established outside the joint venture company to meet the needs of production and processing.Following Danone's lawsuit against Wahaha's offshore companies in the Supreme Court of California in Los Angeles, USA, companies such as Henfeng Trading Co., Ltd. and Hangzhou Hongsheng Beverage Co., Ltd. are included.

Shen Meng, Executive Director of Chanson Capital, told the First Financial Daily reporter that the similar registration locations and corporate structures of Henfeng Trading Co., Ltd. are mainly used for tax avoidance and capital operations, which is a common practice. However, the current equity structure of Wahaha has long created a cognitive misconception that Wahaha Group is a state-controlled enterprise, but those entities surrounding Wahaha, especially those using the Wahaha brand, pose risks related to state-owned assets.