Eliza Wong
The Inheritance Bombshell That Rocked China’s Business World
When Wahaha founder Zong Qinghou (宗庆后) passed away earlier this year, China expected a smooth transition to daughter Zong Fuli (宗馥莉). Few anticipated the seismic inheritance dispute that would follow. Instead of orderly succession, three previously unknown individuals claiming to be Zong’s illegitimate children ignited a 13 billion RMB legal battle. This explosive claim reveals:
– Legal battles in Hong Kong and Hangzhou courts over trusts and missing funds
– A potential DNA showdown involving preserved blood samples
– Decades-long secret life with former executive Du Jianying (杜建英)
– Core questions about Wahaha’s leadership transition
This unprecedented case spotlights critical weaknesses in Chinese family business continuity planning. As forensic accountants scour financial records, this inheritance dispute promises to become a landmark case in corporate succession history.
The Inheritance Dispute’s Explosive Claims
Weeks after Zong Qinghou’s funeral, multiple lawsuits emerged challenging Wahaha’s future. The inheritance dispute centers on three individuals identifying themselves as Jacky Zong (宗继昌), Jessie Zong (宗婕莉), and Jerry Zong (宗继盛) claiming biological ties to the billionaire. Their legal petitions, filed in both mainland and Hong Kong courts, make extraordinary demands:
Seven Billion Dollar Promises and Missing Millions
The crux of the inheritance dispute involves alleged financial commitments. Plaintiffs claim Zong Qinghou repeatedly promised each would receive $700 million through irrevocable trusts – totaling nearly $2.1 billion. Forex discrepancies may play a role.
Their lawyers tell courts:
– Only $1.8 billion remains across trust accounts
– They’ve traced $1.1 million to Vietnamese accounts
– Documentation shows banking movements post-funeral
Unexpected transfers have become flashpoints in this heated inheritance dispute, requiring meticulous financial reconstruction to follow this story’s money trail.
The Personal Histories Driving Courtroom Drama
Behind the legal briefs lies decades of concealed relationships. This complex inheritance dispute illuminates the private lives behind Wahaha’s corporate walls. Records reveal:
Broken Family Tapestry
For over thirty years, Zong presented few publicly:
– Loyal wife Shi Youzhen (施幼珍)
– Only daughter Zong Fuli (宗馥莉)
Now court papers allege secret family with:
– Du Jianying (杜建英), the 21-years-younger executive
– Triplets born 1998-2000 during US education years
Curiously, their J-names juxtapose with Kelly Zong’s name – Internet dubs ‘3Js vs 1K’. This naming pattern caused early suspicions about heritage claims.
This unexpected second family arrangement represents historical practice where:
– Primary sons/heirs managed core businesses
– Secondary children received significant assets
The crux of the inheritance dispute questions whether modern successors respect classical arrangements.
Anatomy of the Legal Battlefield
Hong Kong and Zhejiang courts face unprecedented challenges untangling this inheritance dispute. MAJOR stakes ride on legal process:
– Owner’s $1.9B controlling stake in China’s biggest beverage firm
– Offshore entities in low-tax jurisdictions
– Shareholder control of >80 Wahaha subsidiaries
DNA: The Inheritance Dispute’s Turning Point
Lawyers secured court orders compelling DNA analysis – pivotal in Chinese civil cases. Critical pre-planning has made this inheritance dispute:
– Du apparently stored Zong’s blood samples at Zhejiang University Hospital
– China’s Civil Code 1071 creates favorable presumption
Clear burden influences litigation calculations:
