GYBYS(SH:600332) 3 6 Ke·2025-10-14 00:03Core Viewpoint - The trademark dispute between Jia Duo Bao and Wang Lao Ji has intensified, particularly focusing on overseas trademark rights, as both companies seek to expand in international markets amid slowing domestic growth in the herbal tea sector [1][3][4]. Trademark Dispute Background - The conflict stems from a historical agreement where Li Yimin, former general manager of Guangzhou Pharmaceutical Group, facilitated the transfer of the "Wang Lao Ji" trademark to Jia Duo Bao's parent company, Hongdao Group, in exchange for bribes totaling HKD 3 million [1][11][15]. - Following the exposure of Li Yimin's bribery case, Guangzhou Pharmaceutical Group reassessed the licensing agreements, claiming the trademark was undervalued, with usage fees at only 0.03% of sales compared to the industry norm of 5%-30% [1][16][17]. Recent Developments - On September 29, Jia Duo Bao announced victories in multiple lawsuits in Canada and the EU, asserting its rights to the "Wang Lao Ji" trademark in over 60 countries through its subsidiary, Multi Access Limited [4][20]. - Conversely, Wang Lao Ji's parent company, Baiyunshan, issued a statement disputing Jia Duo Bao's claims, asserting that the trademark ownership is clear and legally documented [5][4]. Market Context - The herbal tea industry in China is experiencing a slowdown, with market growth rates declining significantly from 16.7% in 2012 to a mere 6.8% projected over the next five years [20][19]. - In contrast, the global plant beverage market is booming, with a compound annual growth rate of nearly 10% from 2019 to 2024, particularly in emerging markets like Southeast Asia [22][26]. Financial Performance - Baiyunshan reported a 12.7% decline in revenue from its health segment, which primarily includes Wang Lao Ji, with total revenue around CNY 9.7 billion for 2024 [21]. - In the first half of 2025, Wang Lao Ji's health segment showed signs of recovery, with a revenue increase of 8.38% to CNY 6.5 billion, and a net profit rise of 15.87% [24]. Strategic Moves - Wang Lao Ji is actively pursuing international expansion, launching the new overseas brand "WALOVI" and registering it in over 100 countries [5][22]. - The ongoing trademark battle is crucial for Jia Duo Bao, as securing overseas rights could enhance its market position and attract potential investors amid plans for a Hong Kong IPO [26].