The rich second-generation Zong Fuli wants to change Wahaha's traditional model or plan to go public through backdoor listing

　　#Laogao E-commerce Information# Among the top Chinese rich people, Zong Qinghou is the most unique one. For more than 30 years, Wahaha has never sought to go public, but now, Wahaha’s young master Zong Fuli may have completely different views. Yesterday, Hong Kong-listed company China Candy issued an announcement that the company will suspend trading from yesterday and will issue an announcement regarding the acquisition of a conditional cash offer. Previously, China Candy Announced that the company's main shareholders signed a letter of intent with potential buyers, and the actual controller of the potential buyer Zong Fuli intends to acquire no less than 50% of the voting rights of China Candy.

　　The day before, China's candy rose by 31.65%.

　　Zong Fuli may plan to go public through backdoor listing

　　Zong Fuli is the only daughter of Wahaha Chairman Zong Qinghou, who has carried out the acquisition through Hengfeng Holdings, which is registered abroad.

　　On April 1, China Candy issued an announcement stating that potential buyers have entered into a letter of intent with major shareholders Jiaqing (holding 9.33% of the company's issued share capital) and Noble Core (holding 16.68% of the company's issued share capital), and plans to acquire no less than 50% of the company's voting rights. The potential buyer is a company called Ever Maple Flavors and Fragrances Holdings Limited.

　　The Hengfeng Group is the controlling shareholder of Hongsheng Group and holds 98% of its shares. Zong Fuli serves as the president of Hangzhou Hongsheng Beverage Group Co., Ltd., which undertakes one-third of Wahaha Group's product processing business. It also mainly engages in food spices, mechanical molds, printing and packaging, and beverage production businesses. Its revenue in 2015 reached 7.118 billion yuan.

　　Once Zong Fuli successfully acquires China Candy, it is likely that Hongsheng Group's business will be injected into the listed company. Since Hongsheng Group's business is closely related to Wahaha Group, it has caused many speculations in the capital market.

　　China Candy, which was listed on the Hong Kong stock market in 2015, had poor performance and stock prices, and it was a year-on-year loss. However, since the news of Zong Fuli's acquisition leaked, the stock was like a rocket and soaring. On March 28, Chinese candy closed at HK$0.147, and by Wednesday, the stock closed at HK$0.520. In more than a month, the increase reached 350%, which shows the Wahaha effect.

　　Wahaha pattern may change

　　In the more than 30 years since the establishment of Wahaha, the head of the country, Zong Qinghou has become China's richest man many times and has always been among the top ten richest men in China. He is also the only high-end rich man who does not rely on listing financing to achieve wealth appreciation. With Zong Fuli's advancement in the capital market, the Hengfeng Group may become the bridgehead for the overall listing of Wahaha in the future. In the hands of the second-generation leader, Wahaha's development model may undergo major changes.

　　Zong Qinghou once said that Wahaha is not short of money and does not need to go public financing. "We have 10 billion in cash" and "listed companies have committed too much fraud." Zong Qinghou felt that although Wahaha is not listed at present, its corporate governance level is much higher than that of some listed companies. Regarding Zong Fuli's acquisition of China Candy, Wahaha Group's statement is that Zong Fuli's acquisition is Zong Fuli's personal behavior and has nothing to do with the group company.

　　In fact, the relationship between Hengfeng and Hongsheng and Wahaha in business cannot be cut, and what cannot be cut is the relationship between Zong Fuli and Zong Qinghou. As Wahaha's successor, the changes that Zong Fuli will bring to Wahaha after controlling the listed company can also be imagined.

　　Unlike her father who valued industrial profits, within Wahaha Group, Zong Fuli knew better how to use the capital market to promote the company's development. For example, it is reported that in October 2016, Hongsheng Beverage Group led by Zong Fuli visited several international banks, including Goldman Sachs, to prepare for a potential acquisition of Dean Food, a well-known American dairy company. In public, Zong Fuli said that she hopes Wahaha will be more international.

　　In recent years, many Chinese private enterprises have achieved the change of heads, such as Hu Jiajia, the new chairman of Mebang Clothing, and Zhou Lichen, the new chairman of Hailan Clothing, have all begun to take over. Most of the second-generation heads have backgrounds such as studying abroad and finance. Compared with their parents, they are similar to Zong Fuli, and they advocate capital operations and international perspectives more.

　　Of course, whether it can be successful depends on performance. Liu Chang, the head of New Hope, just handed over his first report card after taking over, and was criticized for both the merger and acquisition projects and the newly established company. Hu Jiajia also has a hard time. Meibang Clothing disclosed its first quarter report, with revenue of 1.674 billion yuan, a year-on-year decrease of 12%; net profit of 28.935 million yuan, a year-on-year decrease of 40%.

Thank you for your attention and support to Laogao Crown Club . Please indicate the source of the reprinting website www.shxuanming.net

 Click to register to apply to join the well-known e-commerce network - Laogao Crown Club. Any businesses, Tmall merchants, Taobao Crown Stores, Jinguan Stores, and other e-commerce platform merchants can apply to join!