Kelly Zong Fuli has returned to lead Hangzhou Wahaha Group, one of China's largest beverage companies, after a brief resignation in July 2024. Following her father's passing in February 2024, Zong stepped down due to shareholder distrust and differing views on the company's growth strategy. However, after negotiations that lasted less than a week, she has resumed her roles as legal representative, president, and general manager of the company [South China Morning Post].
Zong Qinghou, the former richest person in China, died at the age of 79, leaving behind a multi-billion-dollar fortune and a complex legacy for his daughter to manage [South China Morning Post]. Founded in 1987, Wahaha has grown to become a significant player in the beverage industry, reporting annual sales of 51.2 billion yuan (approximately US$7.2 billion) in 2022 [South China Morning Post]. Zong Fuli holds a 29.4% stake in the company, while a state-owned enterprise possesses 46% of the shares [South China Morning Post]. The Zong family, with a net worth of US$13.1 billion, is ranked 31st on China's rich list, highlighting their substantial influence in the business landscape [South China Morning Post].
Zong's return comes at a time when many first-wave tycoons in China are retiring, raising questions about whether their children are prepared to take over. Reports indicate that 75% of family-owned companies in China have faced succession issues from 2017 to 2022, reflecting a broader trend among second-generation entrepreneurs struggling with public scrutiny and a rapidly changing economic landscape [South China Morning Post]. Over 80% of entrepreneurs on the 2022 New Fortune 500 list were aged 50 or above, emphasizing the urgency of this transition [South China Morning Post].
Zong's leadership is expected to steer Wahaha towards renewed growth and stability, particularly in the wake of her father's legacy and the challenges posed by differing shareholder perspectives. As she navigates these complexities, she joins a growing list of second-generation leaders, such as He Jianfeng of Midea and Wang Sicong of Dalian Wanda, who are grappling with the realities of modern business in China [South China Morning Post].