A HK$38 billion inheritance battle over the estate of beverage giant Wahaha’s founder Zong Qinghou has captured the attention of the public, as three people claiming to be his children sue Kelly Zong Fuli, long regarded as his only daughter.
The plaintiffs, Jacky Zong, Jessie Zong and Jerry Zong, have filed a lawsuit in Hong Kong’s High Court accusing Kelly Zong of unauthorized asset transfers from a bank account left by their late father, and have sought to freeze the account, according to a report in East Week, The Standard’s sister publication.
They have also launched legal proceedings in Hangzhou, claiming rights to a US$2.1 billion (HK$16.38 billion) family trust established by Zong Qinghou, as well as his stake in Wahaha, which is estimated to be worth over 20 billion yuan (HK$21.9 billion).
Amid the dispute, the state-owned Shangcheng District Finance Bureau in Hangzhou, which has a 46 percent stake in Wahaha, said a task force has been set up to resolve the issue.
A Hong Kong High Court judge said its ruling would be postponed for about two months to avoid interfering with the ongoing proceedings in the Hangzhou court.
Zong Qinghou passed away in February last year at the age of 79. The self-made billionaire, who founded Wahaha in 1987, was nicknamed “the richest man in cloth shoes,” because of his penchant for plain black shoes and a frugal lifestyle.
Kelly Zong and her father in happier times.
He was long believed to have had only one child with his wife – his daughter Kelly Zong. She inherited his 29.4 percent stake in Wahaha, making her the company’s second-largest shareholder, and currently serves as chairwoman.
The largest stake, 46 percent, is held by the state-owned entity, while the remaining 24.6 percent belongs to company’s employees.
Zong Qinghou’s image as a devoted family man took a hit after the three people claiming to be Kelly Zong’s half-siblings came forward, drawing her into an inheritance battle.
According to Chinese media reports, the three are US citizens, and their mother, Du Jianying, is a former Wahaha employee who was considered one of Zong Qinghou’s key aides in the company.
Du was among the first graduates hired by Zong Qinghou after founding Wahaha, joining the company in 1991. Fluent in English, she earned his trust and worked closely with foreign partners on business negotiations.
Since the inheritance dispute surfaced, speculation has mounted over how many children the billionaire actually had.
His younger brother, Zong Zehou, said that there were no undisclosed children, adding that the family had long known about Du’s three children.
He criticized Kelly Zong for allegedly shaping a carefully curated image of her father after his death, while defending Du’s role in helping build Wahaha.
Many people view Kelly Zong as Zong Qinghou’s rightful successor but her path to succession has not been smooth.
Rumors circulated last year that she would resign as vice chairman and general manager, stepping away from daily operations. Yet, just days later, the company denied these reports and issued a statement confirming that Kelly Zong would remain in her leadership roles.
Earlier this year, Wahaha transferred trademarks across beverage and food categories. Mainland media estimated this boosted the value of Kelly Zong’s holdings to over 30 billion yuan, while that of the largest shareholder’s fell by more than 25 billion yuan.
The move raised market concerns over possible state asset losses. Wahaha said the transfer complied with laws and did not affect its operations or asset stability.
(Staff reporter)
