Core Viewpoint - The control of Wahaha by Zong Fuli remains unstable, facing a significant challenge due to a sudden inheritance dispute involving 35 billion RMB, which could shake the financial foundation and family control of the company [3][5][6]. Group 1: Inheritance Dispute - An inheritance dispute has erupted, with three individuals claiming to be the illegitimate children of Zong Qinghou, initiating lawsuits in both Hong Kong and Hangzhou [4][5]. - The plaintiffs are seeking to reclaim $2.1 billion in offshore trust assets and to divide Zong Qinghou's 29.4% stake in Wahaha Group, with the total disputed amount reaching 35 billion RMB [5][6]. - If the plaintiffs succeed, the ownership structure of Wahaha could shift from a balance of state capital, employee shareholding, and Zong Fuli to a more complex arrangement involving multiple heirs, potentially leading to governance turmoil [6][10]. Group 2: Zong Fuli's Challenges - Zong Fuli has faced multiple crises since taking over Wahaha, including factory shutdowns and disputes over shareholding, indicating a strategic shift towards the Hongsheng system [9][12]. - The current shareholding structure consists of 46% state-owned shares, 29.4% held by the Zong family, and 24.6% by employee shareholding, which was maintained under Zong Qinghou's leadership [10][16]. - Zong Fuli's management style contrasts with her father's, focusing on institutional reforms that have led to dissatisfaction among long-time employees, complicating her leadership transition [22][24]. Group 3: The Role of Hongsheng Group - Zong Fuli's control over Wahaha is bolstered by her leadership of Hongsheng Beverage Group, which has become a key player in Wahaha's production and distribution [32][35]. - Hongsheng Group operates independently from Wahaha, allowing Zong Fuli to maintain significant influence over production and profit channels, despite the ongoing disputes [33][34]. - Recent actions to replace Wahaha's core departments with personnel from Hongsheng indicate a strategic pivot towards consolidating power within the Hongsheng framework [38][42]. Group 4: Brand Control and Future Implications - Despite Zong Fuli's control over production, the Wahaha brand remains under the group's ownership, which could limit her operational flexibility if disputes escalate [44][45]. - Attempts to transfer Wahaha trademarks to her controlled entities have been halted by state capital, reflecting a lack of trust in her management of complex interests [48][54]. - The ongoing inheritance dispute and control crisis represent the most significant challenge Zong Fuli has faced since taking the helm, with implications for both her future and the brand's trajectory [56][57].

Core Viewpoint - The delayed dividend distribution from Sinovac Biotech has resulted in over 2 billion RMB cash dividends for at least four investors, with a staggering dividend yield of 850% based on the stock price at the time of suspension [1][2]. Group 1: Dividend Distribution - On July 10, Sinovac Biotech announced a cash dividend of $55 per share, totaling approximately $3.95 billion (around 280 billion RMB) based on 71.86 million total shares [5]. - The dividend distribution is seen as a significant return for long-term investors, who have been unable to trade shares in the secondary market since the company was suspended from NASDAQ in February 2019 due to governance issues [5][11]. Group 2: Shareholder Dynamics - Major shareholders benefiting from the dividend include: 1. Strong New Capital, approximately $688 million (about 4.93 billion RMB) [9]. 2. Sequoia Capital, approximately $593 million (about 4.25 billion RMB) [9]. 3. Yin Weidong, approximately $350 million (about 2.5 billion RMB) [9]. 4. Dinghui Investment, approximately $330 million (about 2.36 billion RMB) [9]. 5. Shangrong Capital and Weiwang Capital, each approximately $320 million (about 2.33 billion RMB) [9]. Group 3: Governance and Control Struggles - Sinovac Biotech has been embroiled in a control struggle for seven years, with two competing boards of directors and claims of legitimacy from both sides [3][16]. - The company must submit a compliance rectification plan to NASDAQ by July 15 to avoid delisting risks [3]. - The ongoing disputes have led to a complex situation where two boards, led by different chairpersons, claim authority over the company [16][17]. Group 4: Legal and Regulatory Context - The special shareholders' meeting held on July 8 was marked by significant legal disputes regarding voting rights, particularly concerning the participation of Weiwang Capital and Shangrong Capital [19][22]. - The outcome of the meeting resulted in the election of a new ten-member board led by Yan Yan, which has been contested by the opposing faction [15][16]. - The legitimacy of the board changes and the associated legal battles have been ongoing since 2018, with multiple court rulings impacting the governance structure of Sinovac Biotech [21][22].