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].

Core Points - The Hong Kong High Court ruled in favor of the plaintiffs, prohibiting Zong Fuli from handling or disposing of approximately $1.8 billion in assets held in a HSBC Hong Kong account, which is linked to Jian Hao Ventures Limited [1] - The dispute centers around whether the trust property amounts to $2.1 billion or just the interest generated from it, with the plaintiffs asserting that the assets in the HSBC account should be allocated to an offshore trust [1][3] - Zong Fuli contends that only the interest from the fixed capital of $2.1 billion constitutes trust assets, not the capital itself [4] Summary by Sections Trust Establishment and Dispute - In February 2024, Zong Qinghou entrusted Zong Fuli to establish three offshore trusts for his children, with each trust initially set at $700 million, totaling $2.1 billion [2][6] - The High Court noted that while the trust establishment plan exists, the offshore trust has not been formally established, leading to disputes over the definition of trust assets [3][9] Legal Agreements and Actions - A temporary injunction was sought by the plaintiffs in December 2024 to prevent Zong Fuli from diminishing the value of the assets in the HSBC account [1] - An agreement was reached in March 2024, confirming the validity of Zong Qinghou's will and the arrangement of the trusts, which are to be irrevocable and focused on interest distribution only [6] Conflicts of Interest - The core issue arises from the conflict of interest between Zong Fuli, who is responsible for establishing the trusts, and the beneficiaries, her siblings [8][9] - Legal experts suggest that the lack of clarity in the trust's establishment and the responsibilities of Zong Fuli as a trustee have contributed to the ongoing disputes [8][9]

Core Viewpoint - The offshore family trust controversy surrounding the late Wahaha founder Zong Qinghou has reached a preliminary conclusion, revealing that the trust was not formally established as a contractual trust but rather a presumed trust due to procedural issues [1][2]. Group 1: Trust Establishment and Legal Proceedings - The Hong Kong High Court's ruling on August 1 indicated that the trust was a presumed trust, not a fully established contractual trust, which was unexpected [2]. - The court issued a preservation order to freeze approximately $1.799 billion in assets in the HSBC Hong Kong account, preventing any withdrawals or pledges until the conclusion of the litigation in Hangzhou [5][28]. - The ruling serves as a procedural safeguard to assist the ongoing substantive case in Hangzhou, emphasizing the need for asset transparency [6]. Group 2: Family Dynamics and Trust Management - Zong Qinghou's intention to establish a family trust for his three half-siblings was clear, but the execution was poorly managed, leading to disputes over trust responsibilities and obligations [3][4]. - The trust agreement signed between Zong Qinghou and his daughter, Zong Fuli, was flawed, as it allowed her to act as the trustee while also being a beneficiary, creating a conflict of interest [15][17]. - The family trust structure was described as rudimentary, lacking clear roles for trustees, beneficiaries, and protectors, which contributed to the current legal disputes [16][17]. Group 3: Financial and Regulatory Implications - The $1.8 billion in the offshore account raises questions about the legality and compliance of these funds, particularly regarding foreign exchange regulations and tax implications [22][24]. - The funds' origin and the process of their transfer out of China are under scrutiny, as they must comply with strict regulations set by the State Administration of Foreign Exchange [26]. - The case highlights the need for better understanding and management of family wealth and trust structures among high-net-worth individuals in China [29].

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].

Core Points - The latest development in the highly publicized property dispute involving the family of Zong Qinghou, the founder of Wahaha, has emerged [1] - The Hong Kong High Court held a brief hearing on August 1, where neither party was present, and only representatives from their law firms attended to receive the judgment documents [2] - The judgment revealed that the plaintiffs are Zong Jichang, Zong Jieli, and Zong Jisheng, while the defendants are Zong Fuli and Jian Hao Ventures Limited [2][3] Summary by Sections Background of the Dispute - Zong Fuli is the current chairman of Wahaha Group and the only daughter of Zong Qinghou and his first wife, while the plaintiffs are the children from Zong Qinghou's second marriage [3] - The case is based on three documents, including handwritten instructions from Zong Qinghou, a power of attorney, and a confirmation letter signed by Zong Fuli [4] Timeline of Events - Zong Qinghou passed away on February 25, 2024, and disputes over his estate, valued at over 10 billion, began prior to his death [6] - A timeline of the inheritance dispute has been established, detailing interactions between Zong Fuli and the plaintiffs [7] Key Documents and Agreements - On January 31, 2024, Zong Qinghou issued handwritten instructions to establish trusts for his three children, each with an initial amount of 700 million USD [8][24] - On February 2, 2024, Zong Qinghou signed two wills, neither of which included the plaintiffs as beneficiaries, but named Zong Fuli and others [15] - Zong Qinghou also signed a power of attorney on the same day, appointing Zong Fuli to establish three offshore trusts for his children [16][17] Legal Proceedings - Following Zong Qinghou's death, a document titled "Agreement" was signed on March 14, 2024, confirming the validity of his wills and the inheritance procedures [22][23] - The plaintiffs filed a lawsuit in Hangzhou on December 27, 2024, seeking to challenge Zong Fuli's actions regarding the estate [37] - The Zhejiang High Court officially accepted the case on July 8, 2025, indicating that the dispute has entered the mainland judicial process [38] Current Status - As of August 1, 2024, the court ruled that Zong Fuli cannot withdraw or transfer any assets from Jian Hao Ventures Limited's account until the court reaches a decision [41] - The dispute has been ongoing for approximately 17 months, and the family trust established by Zong Qinghou has yet to be finalized [42]

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]

Core Viewpoint - The core dispute in the lawsuit involving the Zong family trust, which involves assets worth up to $2.1 billion, centers on the definition of trust assets, with Zong Fuli asserting that the trust assets are merely the interest on fixed principal, not the principal itself [1][4]. Summary by Relevant Sections Trust Agreement and Asset Management - The trust agreement signed on February 2, 2024, outlines that Zong Fuli holds assets of Jian Hao Ventures Limited, with Zong Qinghou as the sole director [3]. - Zong Fuli claims she has rights to participate in the trust structure arrangements, emphasizing her role is not merely as an executor but as a stakeholder in the trust [3][6]. Legal Proceedings and Court Decisions - The Hong Kong High Court has approved the asset preservation request from Zong Jichang, Zong Jieli, and Zong Jisheng, placing restrictions on approximately $1.8 billion in assets held in a HSBC account [6][7]. - The injunction will remain in effect until final rulings are made by the Hangzhou Intermediate People's Court and the Zhejiang High People's Court regarding the family trust lawsuit [7]. Trust Structure and Distribution - The trust is set to be established with an initial scale of $2.1 billion, structured as an irrevocable trust, with distributions limited to interest earnings only, prohibiting any claims on the principal [4][5]. - The transition to a Private Trust Company (PTC) model is planned, with Zong Fuli initially acting as a shareholder of the trustee during the transition phase [5].

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].

记者丨郭聪聪 编辑丨周炎炎 宗馥莉称：信托资产不是2 1亿美元，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。" 视频丨 柳润瑛 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：享有参与信托架构安排的权利 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）， 并主张其对离岸信托文件的条 款拥有话语权。 对此，她援引了与原告方签订《委托书》（二）中的第五条和第六条，特别指出第五条规定：在离岸信托向私人信托 公司过渡期间，宗馥莉（Kelly） 将成为"受托人的股东"。她强调，这意味着其有权参与信托架构的安排。 宗庆后与宗馥莉2024年2月2日签订的《委托书》 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 ...