Core Insights - Wahaha Group is facing significant challenges as its new leader, Zong Fuli, encounters legal and internal issues, including the investigation of a key executive and a recent court ruling against her [1][2][3] Legal Challenges - The Hong Kong High Court rejected Zong Fuli's appeal in an $18 billion trust dispute involving her half-siblings, which has resulted in asset restrictions on her accounts [3] - The investigation of Yan Xuefeng, a core member of the Wahaha leadership, by the Hangzhou Discipline Inspection Commission adds to the company's turmoil [2][5] Internal Management Issues - Yan Xuefeng's investigation may impact Wahaha's operational stability and internal governance, as he holds significant roles in nearly 190 companies related to Wahaha [2][5] - The company is currently facing internal conflicts, particularly between Zong Fuli and employees, which could hinder its reform efforts [5] Strategic Decisions - In response to the challenges, Zong Fuli has initiated the launch of a new brand, "Wah Xiaozong," and is adjusting the bottled water business, which may increase uncertainty in the competitive beverage market [6] - The introduction of new brands amidst internal strife could complicate Wahaha's brand identity and market position, especially given the intense competition in the beverage sector [6]