Zong Qinghou

$7.20 B

Ranked #317 in World

About Zong Qinghou

From humble beginnings, Zong Qinghou, founder and helmsman of Hangzhou Wahaha Group, rose to become a Chinese billionaire with a net worth of $8.7 billion as of March 2022. Zong, who built China's top beverage enterprise, was embroiled in a bitter feud with Groupe Danone, leading to a dissolved partnership in 2007. Despite tax evasion allegations and a slight public image setback, Zong's frugal lifestyle and robust business ethics have fetched him several national accolades, including the National Excellent Entrepreneur award.

Born

January 01, 1945

Source Of Wealth

Beverages

Industries

Food & Beverage

Citizenship

China

Zong Qinghou, born into a humble family in Zhejiang, China, faced limited opportunities due to his lack of formal education. During the sent-down movement, he was assigned to work in a salt farm. In 1979, he returned home and struggled to find suitable employment because of his low education level.

Zong Qinghou: Family

Zong Qinghou is married to Shi Youzhen, who serves as the purchasing manager at Wahaha. They have one daughter, Fuli (Kelly) Zong. Fuli attended Pepperdine University and became a naturalized U.S. citizen. However, she later returned to China and initiated the process of renouncing her U.S. citizenship.

Zong Qinghou: Career Highlights

In 1987, Zong Qinghou began selling milk in a small grocery store in Hangzhou, which eventually led to the establishment of Wahaha. With a loan of CNY 140,000 from two retired schoolteachers, he started producing milk drinks. By emphasizing links with Danone, he gained independence from an early government partner. Through his autocratic leadership style and workaholic ethic, Zong built Wahaha into the largest beverage manufacturer in China.

Zong Qinghou: Companies

Zong Qinghou is the founder, chairman, and CEO of Hangzhou Wahaha Group, China's leading beverage company. Wahaha has grown into a conglomerate with numerous subsidiaries and joint ventures, including Wahaha Food, Wahaha Beverage, and Wahaha Health.

Zong Qinghou: Major Achievements

Zong Qinghou's major achievements include transforming Wahaha into the largest beverage manufacturer in China, establishing a strong partnership with Groupe Danone, and successfully dissolving the partnership when it turned sour. He is also recognized for his contributions to the Chinese economy and his philanthropic efforts.

Zong Qinghou: Awards & Achievements

Zong Qinghou has received numerous awards and honors, including National Excellent Entrepreneur, National Excellent Manager, Model of Patriotism to Support the Armed Forces, Outstanding Builder of Socialism with Chinese Characteristics, and The First Chinese Entrepreneurs Entrepreneurship Prize.

Zong Qinghou: Personal Life & Legacy

Zong Qinghou has served as a delegate to the Chinese National People's Congress since 2002.

He is known for his frugal lifestyle and claims to live on less than $6,000 per year. Zong emphasizes thriftiness and cost-cutting measures in business. He gained public support as "David" against "Goliath" Danone but faced reputational damage after the revelation of his green card.

Zong Qinghou: Trivia

Zong Qinghou was investigated for allegedly evading taxes amounting to ¥ 300 million. He claimed an annual salary of 3,000 EUR, 100,000 EUR allowances, and a bonus of 1% of joint ventures' annual profit, totaling 70 million yuan of income. Suspected of undisclosed payments through Hong Kong-registered accounts, he paid over 200 million yuan in back taxes after the investigation began.

Wealth History

Timeline

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Zong Qinghou was born into a poor family in Zhejiang, China, with little formal education.

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Zong Qinghou was sent to work in a salt farm during the sent-down movement.

1979

Zong Qinghou returned home and found menial work due to low education level.

1987

Zong Qinghou started selling milk in a minigrocery in Hangzhou, leading to the establishment of Wahaha.

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Zong Qinghou borrowed CNY 140,000 with two retired schoolteachers to start producing milk drinks.

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Zong Qinghou gained independence from an early government partner by emphasizing links with Danone.

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Zong Qinghou built Wahaha into the largest beverage manufacturer in China through autocratic style and workaholic ethic.

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Zong Qinghou served as a delegate to the Chinese National People's Congress since 2002.

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Zong Qinghou married to Shi Youzhen, purchasing manager at Wahaha, and has one daughter, Fuli (Kelly) Zong.

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Zong Qinghou formerly held permanent resident status in the United States for convenience in travel and investment.

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Zong Qinghou's daughter attended Pepperdine University and naturalized as a U.S. citizen but later moved back to China and initiated the process to renounce her U.S. citizenship.

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Zong Qinghou gained public support as "David" against "Goliath" Danone but faced reputational damage after the revelation of his green card.

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Zong Qinghou claims to live on less than $6,000 per year, emphasizing thriftiness and cost-cutting measures in business.

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Zong Qinghou claimed an annual salary of 3,000 EUR, 100,000 EUR allowances, and a bonus of 1% of joint ventures' annual profit, totaling 70 million yuan of income.

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Zong Qinghou investigated for allegedly evading taxes amounting to ¥ 300 million.

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Zong Qinghou suspected of undisclosed payments through Hong Kong-registered accounts.

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Zong Qinghou paid over 200 million yuan in back taxes after the investigation began.

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Zong Qinghou received the honorary title of National Excellent Entrepreneur.

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Zong Qinghou received the honorary title of National Excellent Manager.

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Zong Qinghou received the honorary title of Model of Patriotism to Support the Armed Forces.

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Zong Qinghou received the honorary title of Outstanding Builder of Socialism with Chinese Characteristics.

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Zong Qinghou received the First Chinese Entrepreneurs Entrepreneurship Prize.

Zong Qinghou : FAQs

What is Zong Qinghou's net worth?

As of 2023, Zong Qinghou's net worth was $7.20 billion.

What are Zong Qinghou's main sources of wealth?

Zong Qinghou's main source of income comes from Beverages.

In which industry does Zong Qinghou primarily operate?

Zong Qinghou is primarily involved in the Food & Beverage industry.

How many children does Zong Qinghou have?

Zong Qinghou has 1 children.

Who is Zong Qinghou and what is his role at Hangzhou Wahaha Group?

Zong Qinghou is a Chinese billionaire businessman, the founder, chairman, and CEO of Hangzhou Wahaha Group, which is China's leading beverage company.

What was the scale of WHH Joint Venture with Groupe Danone and what issues led to its dissolution?

The WHH Joint Venture with Groupe Danone was a significant investment involving inward investment of US$70 million for a 51% Danone ownership, which expanded into 39 entities. The partnership ended after accusations of secret parallel companies and siphoning of funds, leading to a settlement and dissolution.

What are some of the major milestones and challenges in Zong Qinghou's early life and career?

Zong Qinghou was born into poverty, sent to work in a salt farm, and later worked menial jobs due to his low education level. In 1987, his career took a positive turn when he started selling milk, which led to establishing Wahaha after borrowing CNY 140,000. He faced challenges gaining independence from an early government partner but successfully built Wahaha into China's largest beverage manufacturer.

How has Zong Qinghou's personal life and reputation been influenced by his political and familial connections?

Zong Qinghou has been a delegate to the Chinese National People's Congress since 2002. His family life includes marriage to Shi Youzhen and parenting his daughter, Fuli Zong. Despite facing reputational damage after the disclosure of his U.S. residency, he has remained influential and supported in China. His daughter's decision to renounce her U.S. citizenship bolstered his image in the public eye.

What are the tax evasion allegations that have affected Zong Qinghou, and what was the outcome?

Zong Qinghou faced allegations of evading taxes totaling ¥300 million, underreported his income, and made undisclosed payments through Hong Kong accounts. He settled these allegations by paying over 200 million yuan in back taxes once the investigation was initiated.