Core Viewpoint - The chairman of Jinmailang responded to the controversy regarding the OEM production of Wahaha bottled water, clarifying the partnership and production details between the two companies [1][4]. Group 1: Partnership and Production Details - Jinmailang has produced over 50 million boxes (equivalent to 120 million bottles) of bottled water for Wahaha since the partnership began in May of the previous year [1]. - Jinmailang operates 26 production bases across the country, which allows for reduced transportation costs and efficient production capabilities, including 32 high-speed production lines out of 115 total beverage lines [1]. - Wahaha announced the termination of its partnership with Jinmailang effective April 2025, while Jinmailang's chairman indicated that the cooperation would end in May of this year [1][4]. Group 2: Product Quality and Market Response - Wahaha's statement acknowledged that some batches of bottled water did not pass factory sampling tests during the OEM production period, but assured consumers that all currently sold products meet national quality standards [4]. - Jinmailang's blue label bottled water is priced at 1 yuan, providing a competitive advantage in a market where similar products are priced at 2 yuan [2]. - The net profit for each bottle of blue label water is reported to be 0.02 yuan [2]. Group 3: Industry Context - Other companies, such as Suntory and Hema, also have OEM relationships with Jinmailang, with Jinmailang accounting for over 30% of Suntory's national production of oolong tea [8].

Core Viewpoint - The chairman of Jinmailang, Fan Xianguo, responded to the controversy regarding the OEM partnership with Wahaha, emphasizing the strategic advantages and production capabilities of Jinmailang in fulfilling Wahaha's demand for bottled water [1][2]. Group 1: OEM Partnership with Wahaha - Wahaha experienced a significant increase in bottled water sales last year, prompting them to seek OEM partners, leading to a collaboration with Jinmailang due to its 26 production bases and short transportation radius [1]. - From May 2022 to May 2023, Jinmailang produced over 50 million boxes (equivalent to 1.2 billion bottles) of pure water for Wahaha, which accounted for approximately 10% of Jinmailang's production capacity [1]. - Wahaha announced the termination of its partnership with Jinmailang effective April 2025, while Fan mentioned the collaboration would end in May 2023 [1]. Group 2: Cost Leadership Strategy - Jinmailang's cost leadership strategy allows it to maintain a net profit of 2 cents per bottle of blue label water, which is priced at 1 yuan, providing a competitive edge in a market where bottled water typically sells for 2 yuan [2]. - The company produces over 10 billion bottles annually, generating a net profit exceeding 200 million yuan, highlighting its focus on providing value to consumers [2]. - Jinmailang's product lineup includes various beverages, with blue label water, Liangbai, and Jinmin positioned at different price points of 1 yuan, 2 yuan, and 3 yuan respectively [2].