Media365
The daughter of late founder Zong Qinghou is facing two lawsuits as three plaintiffs, claiming to be her half-brothers and half-sister, seek to prevent her from dealing with assets worth about US$2 billion. The feud surfaced just a year after the heiress won a battle for control of the company following her father’s death in February 2024 at 79.
The company asserted on Monday that the lawsuits were unrelated to its operations, but the situation provoked commentary about the prospects for family-owned firms amid a shaky economy and keen competition.
“No one waves a red flag when business is good, even though family businesses’ questionable corporate governance and management structure cannot support their further growth,” said Wang Feng, chairman of Ye Lang Capital, a Shanghai-based financial services group. “Family feuds and power battles in boardrooms may hurt employee morale and brand image, particularly at a time when the companies are undergoing succession from first-generation entrepreneurs to their offspring.”
Wahaha said on Monday that it would not provide any further official response, the Southern Metropolis Daily reported. The company could not be reached for comment.
According to a January Hong Kong court document obtained by the Post, the plaintiffs – Jacky, Jessie and Jerry Zong – were demanding that Kelly Zong honour her father’s will because the late founder had promised them trusts valued at US$700 million each.
