Summary of the Core Issues
The national brand Huiyuan has once again encountered internal strife. Huiyuan Group and its acquirer, Wensheng Assets, have been at odds over issues such as “trademark control rights” and whether the investment funds have been properly disbursed. The dispute has escalated from verbal battles to legal actions, lasting for more than half a year. As a result, two versions of Huiyuan now exist: Huiyuan Group is forced to create a new brand since it cannot use the original trademark, while Wensheng Assets produces and sells the new version on behalf of Huiyuan. Consumers are confused, distributors are struggling to sell products, and investors who bought related stocks have lost money. The thirty-year-old national brand is being gradually destroyed by internal conflicts. What needs to be done now is for both parties to sit down and negotiate instead of continuing to undermine each other.
Detailed Analysis
1. The Root of the Dispute: The “Huiyuan” Trademark
The reason for the intense conflict lies in the fact that the Huiyuan trademark is no longer in the hands of the original founder, Huiyuan Group. During Huiyuan’s bankruptcy reorganization, Wensheng Assets transferred the trademark to its own company, Beijing Huiyuan. Now that the two parties have parted ways, Huiyuan Group wants to use the trademark to sell juice products, but Beijing Huiyuan accuses it of infringement and is ready to sue for breach of contract. Without the “Huiyuan” trademark, how can consumers recognize the brand?
2. The Triggering Events: Insufficient Funding and Poor Handover
The conflict between the two parties has been ongoing for some time:
- Huiyuan Group claims that Wensheng Assets promised to invest an additional 1.6 billion yuan in Beijing Huiyuan over three years, but only delivered 750 million yuan, with the remaining 850 million yuan still unpaid. The invested funds were not used effectively for business operations.
- Wensheng Assets, on the other hand, accuses Huiyuan Group of misappropriating funds and refusing to cooperate with the reorganization process, such as failing to complete necessary administrative changes.
The situation escalated when Wensheng Assets’ shareholder, Yuemin Investment, suddenly froze the shares of Beijing Huiyuan’s major shareholders, thwarting the acquisition plan by another listed company, Guozhong Water Services, and exposing the conflict publicly.
3. The Impact on the Market
Consumers are confused, and distributors are in a dilemma:
- Without the trademark, Huiyuan Group launched a new brand called “Jiayuan” (with a different name but the same old flavor), but Beijing Huiyuan claims that this product is unauthorized.
- Beijing Huiyuan, lacking its own production capacity, contracted with a factory to produce the new version of Huiyuan juice and actively sought partners.
Consumers cannot tell which version is genuine, and distributors are worried about potential legal issues, leading to a complete mess in their distribution channels.
4. The Financial Market
Investors who bought shares in Guozhong Water Services suffered significant losses. The company was expected to profit in 2025, but due to the Huiyuan disputes, it was unable to realize its investment gains and had to record a 155 million yuan impairment, resulting in a total loss of 210 million yuan. Investors who hoped for a turnaround through Huiyuan’s reorganization saw their investments go down the drain.
5. The Brand’s Vulnerability
Huiyuan has been a well-known brand for thirty years, but its reputation is being damaged by these internal conflicts. Consumers’ trust in the brand is declining rapidly. If this situation continues, the value of the “Huiyuan” trademark will be completely eroded—after all, no one will buy from a company that constantly fights among itself.
6. A Possible Solution: Reconciliation
Previous attempts at reconciliation between Wensheng Assets and Yuemin Investment indicate that the two parties are not completely irreconcilable. As the founding brand owner, Huiyuan Group has emotional ties to the brand, and Wensheng Investments do not want their investment to go to waste. The best approach is for both parties to negotiate under the supervision of a court to clarify the following issues:
- How will the remaining investment funds be disbursed?
- How will the funds be managed and monitored?
- Can the trademark be licensed for use by Huiyuan Group?
Continuing to oppose each other will benefit no one in the long run.
In Conclusion
The real question at hand is not about who is right or wrong, but whether the brand can survive. Instead of wasting time in court, it’s better for both parties to sit down and resolve their differences. After all, consumers want delicious juice products, not to watch a brand squabble endlessly.