Zong Qinghou
Encyclopedia
Zong Qinghou born 1945, is a Chinese entrepreneur, founder, Chairman and CEO of the Hangzhou Wahaha Group
, the leading beverage company in China. Ranked China’s 3rd-richest man and 169th in the world, Forbes
estimated him to have personal wealth of US$5.9 billion.
Zong is a delegate to the Chinese National People's Congress
.
, and has had little formal education. After graduating from secondary school, Zong worked at the Zhoushan
salt farm. He returned home in 1979 on the retirement of his mother, who was a teacher. He eventually returned to Hangzhou
, and only found menial work at a local school due to the low level of his education. In 1987, he targeted a minigrocery in a school in Shangcheng District
，Hangzhou, selling milk. Zong headed the embryonic Wahaha business, which distributed fizzy soft drinks, ice and stationery. Together with two retired schoolteachers, he borrowed the sum of CNY
140,000, to start producing milk drinks for distribution.
He obtained independence from an early government partner by stressing his links with Danone. With his autocratic style and workaholic ethic, he built Wahaha into the largest beverage manufacturer in the People's Republic of China.
The WHH joint venture entered into with Groupe Danone
involved the inward investment of US$70 million in five joint venture
companies in exchange for 51% Groupe Danone ownership in each company. The trademark agreement signed on 29 February 1996 gave the JVs the exclusive rights of production, distribution and sales of products under the Wahaha brand. Collaboration has grown into 39 joint venture entities by 2007.
In 2007, the relationship had started to turn sour when Danone attempted to gain control of the company. Zong, who had been left to manage the business without any intervention from Danone, resigned as Chairman of the joint ventures on 5 June 2007.
since 2002. He was re-elected in 2007.
His wife is Shi Youzhen (施幼珍), and his daughter is Zong Fuli (宗馥莉). Shi is the Purchasing Manager at Wahaha. It was reported in 21st Century Economy Report that both Zong and Shi have US residency
, and their daughter is an American citizen.
Zong gained wide support as he acted the "David
" against a French "Goliath" gobbling up Chinese companies. Perceptions have changed since the revelation of his green card, his reputation is damaged.
Caijing
reported in April 2008 that Zong was being investigated for allegedly evading taxes
amounting to some ¥
300 million. An investigator had alleged that Zong "...earned far more than this and hasn't fully reported the tax for years". Caijing
implied there may have been less than transparent payments through web of Hong Kong-registered accounts of Zong, Shi, daughter Fuli; and the former Party secretary of Wahaha, Du Jianying. Zong had apparently paid more than 200 million yuan in back taxes in October 2007, after the investigation kicked off. However, the magazine suspected Zong still owed millions more.
Forbes named Zong as China's richest man in 2010.
Hangzhou Wahaha Group
The Hangzhou Wahaha Group Co., Ltd. is a private group of companies, and the largest beverage producer in China. The company is headquartered in Hangzhou, Zhejiang province. "Wa ha ha" signifies "laughing child"....
, the leading beverage company in China. Ranked China’s 3rd-richest man and 169th in the world, Forbes
Forbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
estimated him to have personal wealth of US$5.9 billion.
Zong is a delegate to the Chinese National People's Congress
National People's Congress
The National People's Congress , abbreviated NPC , is the highest state body and the only legislative house in the People's Republic of China. The National People's Congress is held in the Great Hall of the People, Beijing, capital of the People's Republic of China; with 2,987 members, it is the...
.
Biography
Zong is a native of ZhejiangZhejiang
Zhejiang is an eastern coastal province of the People's Republic of China. The word Zhejiang was the old name of the Qiantang River, which passes through Hangzhou, the provincial capital...
, and has had little formal education. After graduating from secondary school, Zong worked at the Zhoushan
Zhoushan
Zhoushan or Zhoushan Archipelago New Area; formerly transliterated as Chusan, is a prefecture-level city in northeastern Zhejiang province of Eastern China. The only prefecture-level city of the People's Republic of China consisting solely of islands, it lies across the mouth of the Hangzhou Bay,...
salt farm. He returned home in 1979 on the retirement of his mother, who was a teacher. He eventually returned to Hangzhou
Hangzhou
Hangzhou , formerly transliterated as Hangchow, is the capital and largest city of Zhejiang Province in Eastern China. Governed as a sub-provincial city, and as of 2010, its entire administrative division or prefecture had a registered population of 8.7 million people...
, and only found menial work at a local school due to the low level of his education. In 1987, he targeted a minigrocery in a school in Shangcheng District
Shangcheng District
Shangcheng District is an administrative district in Hangzhou, Zhejiang Province of China. There lies the ruins of Empire City of Song Dynasty...
，Hangzhou, selling milk. Zong headed the embryonic Wahaha business, which distributed fizzy soft drinks, ice and stationery. Together with two retired schoolteachers, he borrowed the sum of CNY
Chinese yuan
The yuan is the base unit of a number of modern Chinese currencies. The yuan is the primary unit of account of the Renminbi.A yuán is also known colloquially as a kuài . One yuán is divided into 10 jiǎo or colloquially máo...
140,000, to start producing milk drinks for distribution.
He obtained independence from an early government partner by stressing his links with Danone. With his autocratic style and workaholic ethic, he built Wahaha into the largest beverage manufacturer in the People's Republic of China.
The WHH joint venture entered into with Groupe Danone
Groupe Danone
Groupe Danone is a French food-products multinational corporation based in the 9th arrondissement of Paris. It claims world leadership in fresh dairy products, marketed under the corporate name, and also in bottled water...
involved the inward investment of US$70 million in five joint venture
Joint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
companies in exchange for 51% Groupe Danone ownership in each company. The trademark agreement signed on 29 February 1996 gave the JVs the exclusive rights of production, distribution and sales of products under the Wahaha brand. Collaboration has grown into 39 joint venture entities by 2007.
In 2007, the relationship had started to turn sour when Danone attempted to gain control of the company. Zong, who had been left to manage the business without any intervention from Danone, resigned as Chairman of the joint ventures on 5 June 2007.
Personal
Zong is a delegate to the Chinese National People's CongressNational People's Congress
The National People's Congress , abbreviated NPC , is the highest state body and the only legislative house in the People's Republic of China. The National People's Congress is held in the Great Hall of the People, Beijing, capital of the People's Republic of China; with 2,987 members, it is the...
since 2002. He was re-elected in 2007.
His wife is Shi Youzhen (施幼珍), and his daughter is Zong Fuli (宗馥莉). Shi is the Purchasing Manager at Wahaha. It was reported in 21st Century Economy Report that both Zong and Shi have US residency
United States Permanent Resident Card
United States lawful permanent residency refers to a person's immigration status: the person is authorized to live and work in the United States of America on a permanent basis....
, and their daughter is an American citizen.
Zong gained wide support as he acted the "David
David
David was the second king of the united Kingdom of Israel according to the Hebrew Bible and, according to the Gospels of Matthew and Luke, an ancestor of Jesus Christ through both Saint Joseph and Mary...
" against a French "Goliath" gobbling up Chinese companies. Perceptions have changed since the revelation of his green card, his reputation is damaged.
Tax evasion allegations
Zong claimed to have been paid a salary of Euro3,000 and Euro100,000 annual allowances plus a bonus worth 1 percent of the annual profit of the joint ventures, totalling 70 million yuan of income every year.Caijing
Caijing
Caijing is an independent, Beijing-based magazine devoted to information on companies in China. The publication's title means "Finance and Economics Magazine." Caijing's driving mission is to have an "independent standpoint, exclusive coverage and unique perspective."- History :Caijing was...
reported in April 2008 that Zong was being investigated for allegedly evading taxes
Tax evasion
Tax evasion is the general term for efforts by individuals, corporations, trusts and other entities to evade taxes by illegal means. Tax evasion usually entails taxpayers deliberately misrepresenting or concealing the true state of their affairs to the tax authorities to reduce their tax liability,...
amounting to some ¥
Chinese yuan
The yuan is the base unit of a number of modern Chinese currencies. The yuan is the primary unit of account of the Renminbi.A yuán is also known colloquially as a kuài . One yuán is divided into 10 jiǎo or colloquially máo...
300 million. An investigator had alleged that Zong "...earned far more than this and hasn't fully reported the tax for years". Caijing
Caijing
Caijing is an independent, Beijing-based magazine devoted to information on companies in China. The publication's title means "Finance and Economics Magazine." Caijing's driving mission is to have an "independent standpoint, exclusive coverage and unique perspective."- History :Caijing was...
implied there may have been less than transparent payments through web of Hong Kong-registered accounts of Zong, Shi, daughter Fuli; and the former Party secretary of Wahaha, Du Jianying. Zong had apparently paid more than 200 million yuan in back taxes in October 2007, after the investigation kicked off. However, the magazine suspected Zong still owed millions more.
Forbes named Zong as China's richest man in 2010.