"We Are Also Children"... Three Alleged Illegitimate Heirs Emerge in $6.6 Billion Wahaha Inheritance Dispute

Three U.S. Citizens Claim to Be Founder’s Children
Submit DNA Evidence to Court...
Potential Impact on Company’s Shareholding Structure

Just over a year after the death of Zhong Qinghou, founder of Wahaha Group, a leading beverage company in China, controversy has erupted as individuals claiming to be his children have filed lawsuits over a massive inheritance worth several trillion won.

Chairman Go Zhongqinghou, founder of Wahaha Group, a leading company in China's food and beverage industry. Baidu

On July 18 (local time), Taiwan's Central News Agency reported that three individuals with U.S. citizenship have each filed lawsuits against Zhong’s eldest daughter, Zong Fuli?who currently leads Wahaha Group?in courts in both Hong Kong and Hangzhou, Zhejiang Province, China.

These individuals claim to be Zhong's biological children and are demanding the division of assets amounting to 34 billion yuan (approximately 6.58 trillion won). The lawsuits reportedly target about 29.4% of Wahaha Group's shares as well as trust assets estimated at 2.1 billion dollars.

The claimants seeking a share of the inheritance allege that they were born from a relationship between Zhong and Du Jianying, who was once his business partner. Du Jianying joined Wahaha in 1991 and was a key figure overseeing international business until her departure in 2008. She was 21 years younger than Zhong.

To support their claims, the three individuals have reportedly submitted birth-related documents and DNA test results to the courts. Both the Hong Kong and Hangzhou courts have accepted the lawsuits and are currently processing the cases.

Zhong founded a beverage manufacturing company in Hangzhou, Zhejiang Province in 1989, and expanded his business by transforming it into Wahaha Group in 1991. He built a foundation with children's nutritional drinks and bottled water, and later established himself as a leader in China's beverage market with a range of hit products including AD Calcium Yogurt, Feichang Cola, and Babaozhou.

At one point, he was among the wealthiest individuals in China and passed away in February 2023 at the age of 79. During his lifetime, he designated his eldest daughter, Zong Fuli, as his successor, and she currently serves as the group’s chairwoman.

However, concerns have been raised that this inheritance lawsuit could destabilize not only the internal shareholding structure but also the overall management stability of the group.

Currently, the largest stake in Wahaha Group is held by the Hangzhou Shangcheng District State-owned Assets Supervision and Administration Commission, which owns 46%. Zong Fuli holds 29.4%, and the remaining 24.6% is distributed among employees and executives.

Although Wahaha is legally a private company, its actual shareholding structure is considered close to that of a state-owned enterprise. As a result, there is cautious speculation that local governments or public institutions may become involved in managing the situation going forward.