- Three half-siblings of Kelly Zong sued her over $2 billion in assets in a Hong Kong court
- Plaintiffs claim trusts worth $700 million each were promised by their late father Zong Qinghou
- Kelly Zong took control of Wahaha after her father's death in February 2023
A $2 billion wealth tussle at one of China's largest beverage empires is unfolding in a Hong Kong courtroom.
The battle pits three plaintiffs who say they are half-siblings of Hangzhou Wahaha Group Co.'s Kelly Zong in a lawsuit against the heiress of the drinks company. They are seeking an injunction preventing her from dealing with assets held in an HSBC Holdings Plc bank account.
The three plaintiffs - Jacky, Jessie and Jerry Zong - were identified by their lawyer as Kelly's "half brothers and sister," revealing their connection to her for the first time.
Known as the "Princess of Wahaha" in China, Kelly had been until now publicly regarded as the only child of the late Wahaha beverage tycoon, Zong Qinghou.
The plaintiffs' lawyer stated that the three are also pursuing legal action in a Hangzhou court to secure rights to trusts - each valued at $700 million - which they claim were promised to them by their late father.
When Qinghou died at the age of 79 in February last year, Kelly took charge of the privately-held group after spending months settling internal shareholder disputes.
The plaintiffs say Qinghou asked his subordinates to help set up trusts for them at HSBC in Hong Kong and later also requested that the assistants convert yuan into US dollars when the funds proved insufficient.
They are requesting that Kelly honor their father's will, pay millions in interest on their assets, and compensate them for losses incurred from the transfer of their funds.
About $1.1 million had been transferred out of the HSBC account as of May last year, according to one of the legal filings.
The plaintiffs are seeking to prevent Kelly from disposing of, dealing with or diminishing the value of the assets in the HSBC account that had about $1.8 billion in balance as of early 2024, their lawyer said.
Kelly's lawyer said she doesn't accept the evidence and that Qinghou's directives were not given to her. She also has no idea where the yuan should be converted from.
Judge Gary Lam said he was concerned that his order could interfere with the Hangzhou court case, adding that he would hand down the decision in about two month.
Once China's richest man, the late Zong founded Wahaha in 1987. The beverage empire got its start from a milky nutrition drink, and later expanded into bottled water, tea and fruit juices nationwide. The Zong family has a fortune of at least $3.3 billion, according to the Bloomberg Billionaires Index.
The 43-year-old heiress has had to navigate a challenging operating environment amid a broader Chinese economic slowdown. The company is facing increasing competition from rivals including Nongfu Spring Co. and new bubble-tea and coffee chains.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
