Summary of the Key Points
Zong Fuli's third legal attempt to reclaim her family's $1.8 billion in assets has once again failed: The Hong Kong High Court denied her and Jianhao Venture Capital's application for an appeal, resulting in the continued freezing of the funds (which cannot be withdrawn or used as collateral), along with a litigation fee of HK$250,000. However, this ruling is not a final decision on the ownership of the assets; it is merely a procedural measure to prevent the transfer of the money until the substantive case regarding inheritance rights is heard by the Hangzhou Intermediate People's Court. Meanwhile, upon returning to Hongsheng Group, Zong Fuli faces operational challenges such as pressure from distributors and personnel changes. She must now deal with both the legal disputes and the stabilization of product sales channels.
1. The Loss in the Hong Kong Case is Not About Who Gets the Money, but Whether It Can Be Used
Many people think that losing this case means Zong Fuli has lost the $1.8 billion, but that's not the case. The Hong Kong High Court's decision addresses a procedural issue: before the Hangzhou court determines who the money belongs to, whether Zong Fuli can use it is at stake.
The lawyer explained clearly: The court did not rule on the ultimate ownership of the funds, nor did it acknowledge the "trust relationship" claimed by the opposing parties (which suggests that Zong Fuli is managing their money on their behalf). Instead, the court felt that there are significant disputes between the parties regarding the ownership of the assets, and if Zong Fuli were to transfer the money now, the winning party might not receive it upon the Hangzhou court's judgment. Therefore, the court decided to freeze the funds to maintain the status quo until the verdict is issued.
2. The Dispute over the $1.8 Billion: Both Sides Have Their Own Documents
The $1.8 billion is held by Jianhao Venture Capital in the British Virgin Islands, with Zong Fuli being the sole shareholder and director of the company. The three relatives (Zong Jichang, Zong Jielili, and Zong Jisheng) argue that they have handwritten instructions from Zong Qinghou, authorization documents, and a agreement signed by all parties in March 2024, proving that Zong Fuli is acting as their trustee and should hand over the assets to them. Zong Fuli disagrees, claiming that these documents are either invalid or that the relatives have no right to the money.
The substantive dispute over the ownership of the funds is being heard by the Hangzhou Intermediate People's Court, while the Hong Kong court is focusing on whether the funds can be used in the meantime.
3. Three Rounds of Legal Battles: From Asset Freezing to Two Failed Appeals
The two parties have engaged in three procedural battles in Hong Kong:
1. First Round: Asset Freezing
At the end of 2024, the three relatives requested the Hong Kong court to freeze the $1.8 billion. In August 2025, the court agreed that Zong Fuli could not access the funds in Jianhao Venture Capital's account until the Hangzhou case was resolved.
2. Second Round: First Appeal Denial
Zong Fuli appealed against the freezing order, but her application was rejected by the original judge. However, the judge temporarily relaxed some disclosure requirements, allowing her to continue with the appeal process.
3. Third Round: Second Appeal Failure
In October 2025, Zong Fuli filed another appeal with the Hong Kong Court of Appeal. In July 2026, all five grounds for the appeal were dismissed, and she was forced to pay a litigation fee of HK$250,000.
4. Operational Pressures at Hongsheng Group
In addition to the legal disputes, Zong Fuli is also facing challenges within Hongsheng Group (her own company, which has connections with Wahaha):
- Personnel Changes
She stepped out of Wahaha's management in September last year and returned to Hongsheng Group, then took over its marketing department in May this year.
- Impact of Marketing Adjustments
Distributors are reporting tight supply and delivery schedules, and key managers have resigned one after another (with no response from Hongsheng Group).
- Wahaha Price Hikes
In June this year, Wahaha increased the supply prices for some purified water products (without raising the retail prices), due to increased packaging costs. Zong Fuli needs to stabilize the relationships with distributors; after all, products must reach the shelves, and distributor willingness to pay and receive goods is crucial.
5. The Next Challenges for Zong Fuli
1. Legal Challenges
She still has to wait for the Hangzhou Intermediate People's Court's decision on the ownership of the $1.8 billion.
2. Operational Challenges
Can Hongsheng Group's new marketing adjustments reassure distributors and ensure smooth product sales? These issues have a more direct impact on her business than the legal disputes.
In short, Zong Fuli is simultaneously battling in court to reclaim her family's assets and managing her company's operations. She must navigate both situations successfully.