Core Viewpoint - The recent lawsuit involving Zong Fuli, the chairwoman of Wahaha Group, due to inheritance disputes has attracted market attention, although the company claims it is an internal family matter unrelated to its operations [1][5]. Group 1: Inheritance Dispute - Zong Fuli is being sued in Hong Kong by her half-siblings, Zong Jichang, Zong Jieli, and Zong Jisheng, who are seeking to freeze approximately $1.8 billion in assets and claim $2.1 billion in trust rights promised by their late father, Zong Qinghou [2][4]. - The plaintiffs allege that Zong Qinghou instructed the establishment of a trust through HSBC in Hong Kong, with an account balance of about $1.8 billion as of early 2024 [4]. - Zong Fuli's legal representatives question the validity of the evidence presented by the plaintiffs, stating they have not been informed of any relevant instructions from Zong Qinghou [5]. Group 2: Company Operations and Management - Wahaha Group has shut down 18 production lines this year, with about 5 of these factories having shareholders who are plaintiffs in the inheritance case [6][9]. - The company stated that the closures are part of a strategy to enhance market responsiveness and optimize production and sales structures [6]. - Following Zong Qinghou's death, Zong Jichang and Zong Jieli were appointed as directors in several Wahaha subsidiaries, indicating their increasing involvement in the company's management [6][7]. Group 3: Company Performance - Despite the ongoing controversies, Wahaha Group's sales performance remains strong, with projected revenues for 2024 expected to reach around 70 billion yuan, an increase of approximately 20 billion yuan from the previous year [11].