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Zong Qinghou

The "cloth-shoe richest man" who dropped out of school, sold ice from a bicycle and built China's biggest drinks empire — and whose family went to court over it within a year of his death

Deceased — Zong Qinghou (11 October 1945 - 25 February 2024) founded the Hangzhou Wahaha Group, China's largest beverage company, and was named China's richest man by Forbes in 2010. His daughter Zong Fuli took over as chairwoman after his death, then resigned in October 2025; Xu Simin formally replaced her in November 2025. Zong Fuli retains a 29 per cent stake and is defending inheritance claims brought in Hong Kong and mainland China by three people described in court proceedings as half-siblings. In July 2026 a Hong Kong court rejected her appeal and maintained a freeze on US$1.8 billion of assets.

Zong Qinghou was born on 11 October 1945 into a poor family and had little formal education; poverty forced him to drop out of middle school. He was part of the sent-down generation, working at a salt farm in Zhoushan, where he read Mao Zedong's collected works in his spare time. He returned home in 1979 when his mother, a schoolteacher, retired, and found only menial work at a local school.

In 1987 he took over a small grocery run out of a school in Hangzhou's Shangcheng District, distributing soft drinks, ice and stationery. With two retired schoolteachers he borrowed 140,000 yuan and began producing milk drinks. That business became Wahaha, and Zong built it into the largest beverage manufacturer in China with an autocratic, workaholic style.

The decisive move was a 1996 joint venture with France's Groupe Danone: Danone invested US$70 million for 51 per cent of five joint ventures, and a trademark agreement gave those ventures exclusive rights to produce and sell under the Wahaha brand. The venture grew to 39 entities by 2007. Then it turned bitter. Danone accused Wahaha of running a parallel set of companies with near-identical products that diverted as much as US$100 million from the partnership. The relationship collapsed into litigation, and Zong resigned as chairman of the joint ventures in June 2007. Danone exited the venture in 2009.

Zong's public standing rose and fell on the same story. He was widely cast as a Chinese "David" standing up to a French "Goliath," and then, when it emerged in 2008 that he had held a US green card, his reputation suffered. In the same period the Chinese magazine Caijing reported that he was being investigated over alleged tax evasion of some 300 million yuan; he had paid more than 200 million yuan in back taxes in late 2007.

The wealth was real. Forbes named him China's richest man in 2010, and Hurun ranked him the country's richest in 2012 and second-richest in 2013. As of March 2022 his net worth was estimated at US$8.7 billion. He served as a delegate to the National People's Congress from 2002 to 2018. He was famous for thrift — he said he lived on less than US$6,000 a year and attributed the habit to Mao's teachings — which is where the nickname "the cloth-shoe richest man" came from.

He died in Hangzhou on 25 February 2024, aged 78. What followed complicated the persona. Reporting after his death described a second, previously undisclosed family and property abroad, and three people who came forward as his children — Zong Jichang, Zong Jieli and Zong Jisheng — began proceedings in Hong Kong and mainland China over alleged offshore trusts. Those claims are contested and are still being litigated; the description of them as half-siblings comes from the proceedings and press coverage, not from a final factual finding.

His daughter Zong Fuli, his acknowledged child by his first wife Shi Youzhen, had been groomed for the role: educated at Pepperdine University in California, she returned to China and in 2007 began renouncing the US citizenship she had acquired. She took over as chairwoman after his death. In October 2025 she resigned as chairwoman of Wahaha Group, and in November 2025 the former legal executive Xu Simin formally assumed the roles of legal representative, chairman and general manager. Zong Fuli kept a 29 per cent stake.

The litigation has gone against her so far. In July 2026 a Hong Kong court rejected her application for leave to appeal and maintained a freeze on US$1.8 billion of assets, with costs of HK$250,000. She remains a major shareholder in a company whose ownership is more mixed than the "private empire" framing suggests: a Hangzhou district state-owned investment arm has long been reported as the largest single shareholder in Wahaha Group, at about 46 per cent, and Chinese media have noted that this shareholder received no dividends for three years.

Timeline

  1. 11 Oct 1945 — Born into poverty: Zong Qinghou is born into a poor family in Jiangsu and is forced to drop out of middle school. (Jiangsu)
  2. 1960s-70s — Sent to a salt farm: He works at a salt farm in Zhoushan during the sent-down years, reading Mao's collected works in his spare time. (Zhoushan)
  3. 1979 — Returns to Hangzhou: He comes home when his mother, a schoolteacher, retires, and finds only menial work at a local school. (Hangzhou)
  4. 1987 — The grocery that became Wahaha: He takes over a small school grocery selling soft drinks, ice and stationery, borrowing 140,000 yuan with two retired schoolteachers to make milk drinks. (Hangzhou)
  5. 29 Feb 1996 — The Danone joint venture: Danone invests US$70 million for 51% of five joint ventures, with exclusive rights to the Wahaha brand; the venture grows to 39 entities.
  6. 2007 — The partnership turns bitter: Danone accuses Wahaha of running parallel companies that diverted up to US$100 million; Zong resigns as chairman of the joint ventures in June.
  7. Apr 2008 — Tax investigation reported: Caijing reports he is being investigated over alleged evasion of about 300 million yuan; he had paid over 200 million yuan in back taxes in late 2007.
  8. 2008 — The green card story: It emerges he had held a US green card, and the "patriot fighting foreign capital" framing takes damage.
  9. 2009 — Danone exits: The French group sells out of the venture after years of litigation.
  10. 2010 — China's richest man: Forbes names Zong Qinghou the richest man in China.
  11. 2012 — Richest again: Hurun ranks him China's richest; he is second-richest in 2013.
  12. Mar 2022 — Peak valuation: His net worth is estimated at US$8.7 billion.
  13. 25 Feb 2024 — Dies in Hangzhou: He dies aged 78; his daughter Zong Fuli takes over as chairwoman of Wahaha Group. (Hangzhou)
  14. 2024 — A second family is reported: Reporting after his death describes an undisclosed second family and property abroad.
  15. 2025 — Three claimants go to court: Zong Jichang, Zong Jieli and Zong Jisheng bring proceedings in Hong Kong and mainland China over alleged offshore trusts.
  16. 11 Oct 2025 — Zong Fuli resigns: She steps down as chairwoman of Wahaha Group a year after taking over. (Hangzhou)
  17. 27 Nov 2025 — A new chairman: Former legal executive Xu Simin formally becomes legal representative, chairman and general manager; Zong Fuli retains a 29% stake. (Hangzhou)
  18. 21 Jul 2026 — The freeze holds: A Hong Kong court rejects Zong Fuli's leave to appeal and maintains a freeze on US$1.8 billion in assets, with HK$250,000 costs. (Hong Kong)

Quick facts

Born
11 October 1945, Jiangsu
In Chinese
宗庆后 — Wahaha is 娃哈哈, his daughter Zong Fuli is 宗馥莉
Died
25 February 2024, Hangzhou, aged 78
Education
dropped out of middle school
Started
took over a school grocery in Hangzhou in 1987
Start-up capital
140,000 yuan, borrowed with two retired schoolteachers
Company
Hangzhou Wahaha Group, China's largest beverage maker
Danone venture
1996, US$70m for 51% of five joint ventures
Danone split
accused of parallel companies; Zong resigned from the JVs in June 2007; Danone exited 2009
Richest
Forbes named him China's richest man in 2010; Hurun, 2012
Net worth
US$8.7 billion as of March 2022
Thrift
said he lived on under US$6,000 a year
Nickname
"the cloth-shoe richest man"
Tax
Caijing reported a 2008 investigation into alleged evasion of about 300m yuan
Congress
NPC delegate, 2002 to 2018
Heir
daughter Zong Fuli, chairwoman 2024 to 2025; retains a 29% stake
Successor
Xu Simin, chairman from November 2025
In court
HK$1.8bn asset freeze maintained on appeal, July 2026
State stake
a Hangzhou district state investor is reported to hold about 46% of Wahaha Group

Lineage — where the name went

A fortune built once and fought over twice: the founder, the company that outgrew him, the French partner that became a litigant, and the succession dispute that is still running.

  1. 1987 — Zong Qinghou founded Hangzhou Wahaha Group (from a school grocery and a 140,000 yuan loan)
  2. 1981 — Zong Qinghou married Shi Youzhen (divorced in 2005)
  3. 1982 — Shi Youzhen was parent of Zong Fuli
  4. 1982 — Zong Qinghou was parent of Zong Fuli (his acknowledged child and successor)
  5. 2005 — Zong Qinghou married Jane Jianying Du
  6. Zong Qinghou was parent of Zong Jichang (claimed in the 2025 inheritance suits, not finally established)
  7. Zong Qinghou was parent of Zong Jieli (claimed in the 2025 inheritance suits, not finally established)
  8. Zong Qinghou was parent of Zong Jisheng (claimed in the 2025 inheritance suits, not finally established)
  9. Zong Jichang sibling-of Zong Fuli (half-sibling, as described in the proceedings)
  10. Zong Jieli sibling-of Zong Fuli (half-sibling, as described in the proceedings)
  11. Zong Jisheng sibling-of Zong Fuli (half-sibling, as described in the proceedings)
  12. 1996 — Hangzhou Wahaha Group created The Wahaha joint ventures (five joint ventures with Danone)
  13. 1996 — Groupe Danone acquired The Wahaha joint ventures (US$70m for 51% of each)
  14. 2009 — Groupe Danone sold The Wahaha joint ventures (exited after years of litigation)
  15. Hangzhou district state investor acquired Hangzhou Wahaha Group (a Hangzhou district state investor, reported at about 46%)
  16. 2025 — Xu Simin was succeeded by Zong Fuli (formally appointed in November)
  17. 2025 — The inheritance suits defeated Zong Fuli (proceedings over the alleged offshore trusts)
  18. 2026 — The US$1.8bn asset freeze was succeeded by The inheritance suits (the freeze maintained on appeal in July 2026)

Entities in this tree: Zong Qinghou (person, 1945); Shi Youzhen (person); Jane Jianying Du (person); Zong Fuli (person, 1982); Zong Jichang (person); Zong Jieli (person); Zong Jisheng (person); Hangzhou Wahaha Group (company, 1987); The Wahaha joint ventures (company, 1996); Groupe Danone (company, 1919); Hangzhou district state investor (company); Xu Simin (person); The inheritance suits (event, 2025); The US$1.8bn asset freeze (event, 2026)

Sources

  1. Zong Qinghou — Wikipedia (2026-09-19)
  2. Hangzhou Wahaha Group — Wikipedia (2026-09-19)
  3. Zong Fuli steps down at Wahaha — KrASIA (citing the South China Morning Post) (2026-09-19)
  4. Wahaha confirms Zong Fuli's resignation as chairwoman — China Daily (2026-09-19)
  5. 90後許思敏接替宗馥莉，任娃哈哈集團法定代表人、董事長、總經理 — China.com.cn (2026-09-19)
  6. 宗馥莉辞任娃哈哈集团董事长 — China News Service (2026-09-19)
  7. Hong Kong Court Rejects Water Heiress Appeal Over $1.8 Billion — Bloomberg (2026-09-19)
  8. Danone Exits China Venture After Years of Fighting — The New York Times, DealBook (2026-09-19)
  9. Danone, Wahaha reach a settlement in beverage dispute — China Daily (2026-09-19)
  10. “布鞋首富”宗庆后：幸运生于大时代 — Guangming Daily (光明网) (2026-09-19)
  11. Zong Qinghou, Founder of Chinese Beverage Giant Wahaha, Dies at 79 — Yicai Global (2026-09-19)
  12. 娃哈哈46%国资大股东三年零分红，这家公司到底姓什么？ — Sohu (2026-09-19)
  13. Zong Fuli — Forbes (2026-09-19)

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