Core Viewpoint - The acquisition of China New Retail Supply Chain Group Limited by Wanjing Capital, owned by 26-year-old Wang Kelly, highlights the emergence of a new generation in the family business, particularly in the context of the real estate sector and its associated companies [2][3][5]. Company Summary - China New Retail Supply Chain Group Limited (03928.HK) announced a cash acquisition of 360 million shares, representing 75% of its total issued share capital, for HKD 223 million, equating to approximately HKD 0.6189 per share [2][3]. - The company has been underperforming, with total revenues for the past three fiscal years reported as SGD 6.66 million, SGD 5.56 million, and SGD 5.55 million, and net losses of SGD 1.5 million, SGD 1 million, and SGD 800,000 respectively [10]. Industry Context - The acquisition reflects a strategic move within the traditional construction industry, which has faced challenges in performance, prompting sellers to consider exiting to redeploy resources [10]. - The involvement of Wang Kelly, a member of the "New City System" established by her father Wang Zhenhua, indicates a potential shift in leadership dynamics within the family business, especially following the legal issues faced by her father [4][5].

Core Viewpoint - Zhongyuan Trust celebrates its 40th anniversary, highlighting its evolution from a small trust company to a significant player in the financial sector, contributing to the economic development of the region and adapting to industry changes over the decades [1][7]. Group 1: Historical Development - Zhongyuan Trust was established in 1985, marking the revival of the trust industry in China post-reform, and has since been integral to the economic growth of Henan province [2][3]. - The company adopted innovative practices early on, including market-based recruitment and diverse funding methods, which allowed it to support local economic development through loans and investments [3][4]. - Following regulatory reforms in the early 2000s, Zhongyuan Trust expanded its operations significantly, increasing its registered capital from 5.92 billion to 36.5 billion yuan and growing its trust scale from 800 million to 200 billion yuan [4]. Group 2: Recent Developments and Challenges - The introduction of the Asset Management New Regulations in 2018 prompted Zhongyuan Trust to undergo significant organizational adjustments and enhance its business offerings, including the development of a new information system [5][6]. - In 2023, the company completed its largest cash capital increase, raising its registered capital from 4 billion to 4.681 billion yuan, thereby strengthening its financial position [6]. - Zhongyuan Trust has focused on risk management and proactive strategies, enhancing its wealth management and family trust services, while also expanding into digital finance and innovative product offerings [6]. Group 3: Future Outlook - The company has managed over 2 trillion yuan in trust assets and generated significant profits, indicating its robust performance and contribution to the local economy [7]. - As the trust industry undergoes transformation, Zhongyuan Trust aims to enhance its comprehensive strength and maintain its commitment to serving the real economy and improving people's lives [7].

Core Viewpoint - The successful inheritance of the family business and wealth by the Lu family serves as a model for family business succession, emphasizing the principle of "division of labor without separation of family" [2][4]. Family Business Succession - The Lu family completed the transition from the first to the second generation smoothly, with significant changes in shareholding and management announced by their listed companies, K Wah International Holdings Limited and Galaxy Entertainment Group [2]. - The Lu family's succession philosophy focuses on maintaining complete ownership while dividing management responsibilities based on family members' expertise and interests [2][4]. Family Business Structure - The Lu family has a diverse business portfolio, including K Wah International and Galaxy Entertainment, along with other companies like Shidefu International Hotel Group and K Wah Materials [4]. - The family has established a clear ownership structure, with the family retaining significant control over their listed companies through trusts and family holding companies [5][6]. Ownership and Control - Before his passing, the Lu family held 66.80% ownership in K Wah International, with specific shares allocated to each family member [5]. - Following the transition, the family's ownership in K Wah International decreased to 61.47%, while management roles were adjusted, with the eldest son taking over as chairman [5][6]. Management Responsibilities - The management roles within the family were assigned based on individual qualifications and interests, ensuring that each member's background aligned with their responsibilities [10]. - The eldest son, for instance, oversees the Macau operations, while the second son manages the U.S. hotel business, reflecting a strategic division of labor [10]. Family Cohesion - A strong family cohesion is essential for the "division of labor without separation of family" model to succeed, as it fosters collaboration and minimizes conflicts [11]. - The Lu family has cultivated this cohesion through shared experiences and a commitment to family values, which has been reinforced by their philanthropic efforts [12]. Philanthropy and Social Responsibility - The Lu family has engaged in various philanthropic activities, including supporting education and establishing awards for contributions to sustainable development, which enhances family identity and cohesion [12]. - Their focus on civic education and community engagement has further solidified their family values and societal respect [12]. Lessons for Other Families - The Lu family's approach can serve as a reference for other multi-child families facing complex business structures, particularly in the context of family business succession in mainland China [2][8]. - For single-child families, adopting elements of the "division of labor" concept can still be beneficial, such as involving non-family stakeholders in management to ensure balanced decision-making [19][20].

8月1日，香港高等法院对 被告 宗馥莉 及 原告 宗馥莉 的 三个弟妹信托 纠纷 案宣布决定。 香港高等法院维持了原告宗继昌、宗婕莉、宗继盛的主张，禁止宗馥莉处理或处置Jian Hao Ventures Limited（建浩创投有限公司，由宗馥莉持有）在汇丰银行香港账户中的资产（约为18亿美元），阻止 宗馥莉处置账户内的资产。法官认为，这样有利于确保双方在杭州诉讼案的顺利进行。 2024年12月，宗继昌、宗婕莉、宗继盛三人便向香港高等法院申请了针对宗馥莉的临时禁令，以阻止宗 馥莉处置、处理或减少在汇丰银行的资产价值。 宗氏家族关于信托的争议，主要集中在信托财产到底是21亿美元（根据宗庆后的意愿，信托初始规模为 每个信托7亿美元，三子女的总金额为21亿美元，目前约为18亿美元），还是21亿美元的利息等方面。 原告的观点是，汇丰银行账户资产应用于离岸信托，而其他资产应用于宗馥莉。 而宗馥莉回应称，《委托书》中谈及的是，只有21亿美元固定资本的利息是信托资产，而不是资本本 身。 2024年2月，宗庆后与宗馥莉签订《委托书》，内容包括宗庆后委托宗馥莉以宗馥莉作为设立人分别设 立三个境外信托（三个信托单独简称为信托A、 ...

Core Viewpoint - The article discusses the ongoing legal battle over the inheritance of the Wahaha Group founder Zong Qinghou, focusing on the trust case involving his daughter Zong Fuli and her half-siblings, which has significant implications for the family's wealth and corporate governance [4][10][29]. Summary by Sections Trust Case Overview - The Hong Kong High Court ruled against Zong Fuli in a trust case, confirming that her half-siblings have beneficiary rights to assets in a HSBC account, which are part of a $2.1 billion trust established by their father [4][5][9]. - The court issued an injunction preventing Zong Fuli from withdrawing or transferring any assets from the relevant accounts until a final ruling is made in related lawsuits in Hangzhou [5][20]. Family Dynamics and Legal Claims - The article reveals the previously hidden family dynamics, with Zong Fuli's half-siblings publicly claiming their rights as non-marital children of Zong Qinghou, seeking equal inheritance rights [11][17]. - The half-siblings are pursuing a dual legal strategy, filing lawsuits in both Hong Kong and Hangzhou to claim a share of the Wahaha Group's equity, which is valued at over 20 billion RMB [10][28]. Trust Structure and Legal Challenges - The trust in question consists of three separate trusts, each benefiting one of the half-siblings, with a total value of $2.1 billion, and is structured as a non-principal trust, meaning only interest income is distributed [6][21]. - Legal experts highlight the complexities surrounding the validity of the trust, questioning whether it was properly established and whether Zong Fuli has the authority to access the funds [22][25]. Financial Implications and Future Proceedings - The ongoing legal disputes could potentially involve assets totaling 35 billion RMB, with the next critical legal battles set to take place in Hangzhou [29]. - The article emphasizes the need for family businesses to establish clear governance structures to prevent such disputes, suggesting the creation of family councils and charters to manage inheritance and business operations [29].

备受关注的娃哈哈创始人宗庆后家族的财产纠纷案，有了最新进展。 8月1日下午4点，香港高等法院就宗庆后家族财产纠纷案进行了内庭聆讯。这场备受关注的聆讯仅持续了几分钟。 据多家媒体报道，原告与被告均未到场，仅由双方律所派代表前来领取签收裁决书文件。时代财经现场获得的裁决文件显示，三名原告方按顺序依次为， JACKYZONG（宗继昌）、JESSIE JIELIZONG (宗婕莉)、JERRY JISHENG ZONG（宗继盛)，两名被告方为KELLY FULIZONG (宗馥莉）和JIAN HAO VENTURES LIMITED（建浩创投有限公司，下称"建浩公司"）。原告方以及被告方统称"各方"。 第一被告宗馥莉是娃哈哈集团现任董事长，同时也是集团创始人宗庆后与原配施幼珍的独生女；宗继昌、宗婕莉和宗继盛（统称"原告方"）则自述为宗庆 后与杜建英所生的三名子女。 根据裁决书，原告的案件主要依据三份文件，包括宗庆后的手写指示、委托书及宗馥莉签署的中文确认函、各方就宗庆后去世引发的事宜订立的一份名为 《协议》的文件。 不过，这份裁决书并非终点，对于很多核心的问题需要等杭州法庭的审理和判决。但这份文件也披露了2024年以 ...

Core Viewpoint - The article discusses the recent developments in the inheritance dispute of the late founder of Wahaha, Zong Qinghou, highlighting the legal actions taken regarding his estate, particularly the assets held in a HSBC bank account amounting to approximately $1.8 billion [4][5]. Group 1: Inheritance Dispute Developments - On August 1, the Hong Kong High Court approved the asset preservation request from the plaintiffs (Zong Jichang, Zong Jieli, Zong Jisheng), imposing restrictions on the $1.8 billion in the HSBC account until a final ruling is made by the Hangzhou Intermediate People's Court and the Zhejiang High People's Court [4]. - The court ordered Zong Fuli and Jian Hao Ventures Limited not to dispose of or reduce the value of any assets in the HSBC account, including any substitute assets or recoverable benefits during the specified period [4]. - Zong Qinghou had previously entrusted Zong Fuli to establish trusts totaling $2.1 billion for the plaintiffs, which were not set up as per the agreement [5]. Group 2: Family Trusts in China - The family trust market in China has reached a scale of 640 billion yuan, representing only 2.18% of the total trust assets of 29.56 trillion yuan [8]. - Family trusts are designed for wealth protection, inheritance, and management, with offshore family trusts offering advantages in legal stability, tax policies, and cross-border capital flow [7]. - The structure of family trusts can vary, including standard and customized models, with a significant portion of clients opting for customized trusts that account for 53% of the total trust assets [9]. Group 3: Limitations of Family Trusts - Family trusts face challenges such as outdated legal regulations, unclear tax policies, and high costs associated with non-cash asset transactions [12]. - The core function of family trusts is to achieve asset risk isolation and wealth transmission, but there is a tendency to focus excessively on returns rather than their governance and isolation capabilities [11][12]. - The diverse business models of family trusts include high-threshold cash trusts and low-threshold insurance trusts, reflecting a growing interest in wealth management solutions [11].

Core Points - The Hong Kong High Court ruled that Zong Fuli cannot access approximately $1.8 billion in assets in a HSBC account and must disclose the account's financial transactions [1][2] - The case centers around the "Zong Family Offshore Trust" established by Zong Qinghou, which involves disputes over the rights of his non-marital children and control of the Wahaha Group [1][2] - The trust was intended to benefit Zong Qinghou's children, with a total amount of $2.1 billion allocated across three offshore trusts [1] Summary by Sections - **Legal Proceedings** - The court's decision prevents Zong Fuli and Jian Hao Ventures Limited from withdrawing or transferring assets from the HSBC account until the conclusion of litigation in Hangzhou and Zhejiang [2] - Zong Fuli is required to publicly disclose the account's latest balance and asset changes since February 2, 2024, including the whereabouts of $108,512 that was transferred out [2] - **Family Dynamics** - The plaintiffs, Zong Jichang, Zong Jieli, and Zong Jisheng, claim to be Zong Qinghou's non-marital children, with their mother, Du Jianying, having a controversial relationship with him [2] - Despite the initial legal setback, Zong Fuli maintains public support, contrasting with the plaintiffs who face negative perceptions due to their familial status [2] - **Corporate Governance Risks** - The case highlights common risks in private enterprise succession, including vague asset planning, complex family relationships, and the blending of corporate governance with personal assets [2] - Legal experts recommend that entrepreneurs implement a three-tiered mechanism of "wills + trusts + equity structure" to mitigate risks and prevent internal conflicts among heirs [2]

8月1日，牵涉高达21亿美元资产的宗氏家族信托诉讼案在香港开庭。 21世纪经济报道记者通过分析香港高等法院披露的裁决书发现，双方的核心争议在于信托资产范围的界定。 宗馥莉称：信托资产不是21亿美元，仅为 "固定本金的利息" 裁定书披露，被告宗馥莉方援引其与宗庆后于2024年2月2日签订的《委托书》第3条，意味着只有固定本金的利息才是信托资产，而非本金本身。 在法庭回复当中，她提到，之所以强调这一点是因为在她看来："原告们似乎错误地认为本金也应是信托资产的一部分。" 据裁决书披露，《委托书》的核心内容包括两方面： 其一，宗馥莉代宗庆后持有建浩创投有限公司（Jian Hao Ventures Limited）资产（该公司登记股东为宗 馥莉，宗庆后为唯一董事）；其二，宗庆后委托宗馥莉作为设立人，为宗继昌、宗婕莉、宗继盛分别设立三个境外信托（合称"宗氏境外家族信托"），并明 确了受益人、信托利益性质、资产管理及分配规则等核心条款。 宗馥莉称：享有参与信托架构安排的权利 宗庆后与宗馥莉2024年2月2日签订的《委托书》 宗馥莉进一步辩称，原告三人不应将她简单视为仅具执行义务的受托人（entrustee），并主张其对离岸 ...

Core Viewpoint - The court ruling in the asset dispute involving Zong Fuli and her half-siblings indicates a temporary setback for Zong Fuli, as a prohibitory injunction has been issued against her and Jian Hao Ventures Limited regarding the handling of assets in a HSBC bank account, pending the final judgment of a related lawsuit in Hangzhou [1][2][22]. Group 1: Legal Proceedings and Court Rulings - The Hong Kong High Court issued a temporary injunction preventing Zong Fuli and Jian Hao Ventures Limited from withdrawing or transferring any assets from a specific HSBC bank account [1][22]. - The ruling highlights the ongoing dispute over whether the trust established by the late Zong Qinghou includes only interest income or the principal amount in the HSBC account [2][3]. - The court documents reveal that Zong Qinghou had signed two wills before his death, neither of which included Jian Hao Ventures Limited or its assets [1][2]. Group 2: Trust and Asset Dispute - The primary contention revolves around the interpretation of the trust's assets, with Zong Fuli asserting that only the interest income is included, while her half-siblings claim that both principal and interest should be considered trust assets [3][4]. - Evidence submitted by the plaintiffs includes Zong Qinghou's handwritten instructions, which specify that the trust is intended to only distribute interest income, not the principal [4][5]. - The plaintiffs argue that Zong Fuli has delayed the establishment of the trust and has transferred funds from it, prompting them to seek restrictions on her control over the account [2][3]. Group 3: Financial Details and Asset Valuation - As of May 31, 2024, the net assets in the HSBC account held by Jian Hao Ventures Limited were approximately $1.799 billion, primarily consisting of fixed-income assets and a small amount of cash [3][4]. - The plaintiffs demand that Zong Fuli inject $700 million into each offshore trust, totaling $2.1 billion, but Zong Fuli contests that the account's assets have never reached that amount [5][18]. - The court noted that the ongoing dispute over the ownership of the principal and interest in the HSBC account will be a focal point in the Hangzhou litigation [7][21].