Kelly Zong Fuli, daughter of the late Chinese soft drinks billionaire Zong Qinghou, has stepped down as legal representative, chairwoman and general manager of Wahaha Group, a year after taking over.
Zong was succeeded by Xu Simin, formerly the head of the legal department at an associated company, according to the latest corporate filings on the mainland. She retains her 29 per cent stake in the group.
The 43-year-old took over the beverage empire – known as China’s Coca-Cola – after her father died last year.
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Since then, she has been embroiled in a series of disputes regarding trusts her father had established for three extramarital children and a restructuring that excluded the children and their mother, a former senior executive of the group.
She also reportedly cut the salaries of many long-term executives and employees.
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The three half-siblings – Jacky Zong, Jessie Zong and Jerry Zong – sued her in Hangzhou and Hong Kong. According to documents filed with the Hong Kong High Court, their late father had entrusted Kelly Zong with setting up three offshore trusts, each worth US$700 million, for them.
They allege she never set up the trusts and withdrew more than US$6 million from the bank account intended as the main funding source. They are seeking to compel the creation of the trusts.