China Wahaha heiress Kelly Zong Fuli back at the helm after ‘friendly negotiations’
Following “friendly negotiations” with shareholders, Zong decided to continue to perform her management responsibilities, Wahaha said in a statement on Monday evening.
“We appreciate the recent attention from the public and media, and apologise for the issue that unnecessarily led to a lot of media coverage,” said the statement.
The Post reported on Thursday that it was uncertain whether the board or the local state-owned assets watchdog had accepted Zong’s resignation. She is the company’s vice-chair and general manager.
An investment arm of the Hangzhou Shangcheng district government is the biggest shareholder in Wahaha, with a 46 per cent share. Zong’s family has a 29.4 per cent interest, followed by a stockholding party representing Wahaha’s employees with 24.6 per cent.
They said that Zong’s IPO plans for Wahaha was a proposal unacceptable to the other shareholders.
“It seems like a makeshift decision to keep Zong Fuli in the chief executive position,” said Eric Han, a senior manager at Suolei, an advisory firm in Shanghai. “It will take time before Zong and the shareholders to find common ground to drive growth at Wahaha.”
Wahaha, which means “laughing child” in Chinese, posted a 35 per cent year-on-year decline in sales to 51.2 billion yuan (US$7 billion) in 2022, according to the latest available financial information released by the All-China Federation of Industry and Commerce.
In comparisons, rival Nongfu Spring’s revenue jumped by almost a third to 42.7 billion yuan in 2023, propelling its founder Zhong Shanshan to the position of China’s wealthiest businessman. Bloomberg data estimates his net assets are worth US$53.4 billion.
Zong has picked a new brand ambassador, spent more on TV commercials and expanded online sales through live-streaming commerce, in efforts to win back market share.
An only child, she graduated with a degree in international business from Pepperdine University in the US and then started her career at one of Wahaha’s factories to learn production management. She was named as vice-chair and general manager in December 2021, paving the way for her to take over the business empire her father created.
The family was ranked 31st on China’s rich list in 2023 with wealth of US$13.1 billion, according to the Hurun Research Institute. It was the richest family in the nation in 2010 and 2012.
