Zong Qinghou
Zong Qinghou | |
|---|---|
| Born | 11 October 1945 Zhejiang, China |
| Died | 25 February 2024 (aged 78) |
| Occupation | Entrepreneur |
| Known for | Founder, chairman, and CEO of Hangzhou Wahaha Group |
Zong Qinghou (; 11 October 1945 – 25 February 2024) was a Chinese billionaire entrepreneur, recognized as the founder, chairman, and CEO of the Hangzhou Wahaha Group, which stands as one of China’s foremost beverage enterprises. As of March 2022, his fortune was valued at approximately US$8.7 billion.
Biography
Zong was born into a financially disadvantaged family in Zhejiang on 11 October 1945. Due to economic hardships, he discontinued his middle school education prematurely. During the sent-down youth movement, he was assigned to work on a salt farm in Zhoushan. In his leisure time, he immersed himself in communist literature such as The Collected Works of Mao Zedong and How the Steel Was Tempered.
Following his mother’s retirement in 1979, Zong returned to his hometown before relocating to Hangzhou, where he initially took on menial roles at a local school. By 1987, he had started retailing milk and other goods from a small shop within a Hangzhou school. Together with two retired educators, he secured a loan of CNY 140,000 to initiate production of milk beverages.
Zong eventually distanced Wahaha from its initial government partner by capitalizing on connections with Danone. His authoritative management style combined with relentless dedication propelled Wahaha to become China’s largest beverage producer.
The partnership between Wahaha and Groupe Danone entailed an investment of US$70 million for a 51% ownership in five joint ventures. These joint ventures were granted exclusive rights under the trademark agreement to manufacture and distribute products under the Wahaha brand. By 2007, this alliance had expanded to encompass 39 joint venture entities.
In 2007, Danone accused Wahaha of clandestinely operating parallel companies that mirrored the joint ventures’ activities and diverted up to $100 million in revenue. This conflict culminated in a settlement and the termination of their cooperation. On 5 June 2007, Zong stepped down as chairman of the joint ventures.
Forbes recognized Zong as the wealthiest individual in China in 2010. According to the Hurun Report, he held the top position again in 2012 and ranked second in 2013.
Personal life
Between 2002 and 2018, Zong served as a delegate to the Chinese National People's Congress.
He was married to Shi Youzhen, who managed purchasing at Wahaha, and they had one daughter named Fuli (Kelly) Zong. To facilitate international travel and oversee global investments, Zong once possessed U.S. permanent residency. His daughter attended Pepperdine University in Southern California, became a U.S. citizen, but later returned to China and initiated renunciation of her U.S. citizenship in 2007. The disclosure of Zong’s green card status in 2008 impacted his public reputation; however, he stated in 2013 that his residency was considered forfeited due to failure to maintain re-entry requirements.
Renowned for his frugality—living on less than $6,000 annually—Zong credited this lifestyle choice to Mao Zedong’s philosophies. He regarded stringent cost management as fundamental to Wahaha’s operational approach.
Zong Qinghou passed away on 25 February 2024 at the age of 78.
Allegations of Tax Avoidance
Zong declared a monthly salary of €3,000, supplemented by annual allowances amounting to €100,000 and a profit-sharing bonus of 1% from joint ventures, which together equated to roughly 70 million yuan per year. In April 2008, Caijing disclosed an inquiry concerning suspected tax avoidance involving nearly ¥300 million. Investigators indicated that Zong's actual income was substantially higher than reported, possibly utilizing Hong Kong-based accounts associated with Zong himself, Shi, his daughter Fuli, and Du Jianying, the former Party secretary at Wahaha. Although Zong reportedly settled over 200 million yuan in overdue taxes by October 2007, authorities believed additional liabilities remained unpaid.
Distinguished Honors
Among the prestigious recognitions awarded to Zong are:
- National Excellent Entrepreneur
- National Excellent Manager
- Model of Patriotism Supporting the Armed Forces
- Outstanding Contributor to Socialism with Chinese Characteristics
- The First Chinese Entrepreneurs Entrepreneurship Award