Core Viewpoint - The dispute surrounding the offshore trust of the Zong family has brought to light the asset distribution issues of Wahaha Group's founder, Zong Qinghou, following his death. The Hong Kong High Court has issued a ruling on this matter, highlighting significant legal and financial implications for the involved parties [1][15]. Group 1: Legal Proceedings and Court Rulings - The Hong Kong High Court has issued a preservation order prohibiting the withdrawal or encumbrance of assets in a HSBC account valued at approximately $1.8 billion, balancing asset preservation with the management of related mainland court cases [1][15]. - The court has also mandated a disclosure order requiring the defendants to provide detailed accounts of the HSBC account's balance and transactions since February 2, 2024, to ensure transparency and prevent asset transfer that could undermine the preservation order [16][19]. Group 2: Trust Agreements and Asset Management - Zong Qinghou had established three offshore trusts (Trust A, B, and C) for his children, each with an initial value of $700 million, structured as irrevocable non-principal trusts, meaning only interest income could be distributed [3][9]. - The trust agreements specify that the beneficiaries are limited to Zong's children and their descendants, excluding spouses, and the principal is to remain intact for long-term investment [8][10]. Group 3: Disputes and Allegations - The plaintiffs allege unauthorized withdrawals from the HSBC account totaling approximately $5.2 million between January and April 2024, claiming these actions were taken without their consent and are unrelated to the offshore trust [11][12]. - Zong Fuli, the defendant, contends that the asset fluctuations were due to currency exchange rates and investment adjustments, asserting that the withdrawals were legitimate and consistent with prior investment practices [11][12]. Group 4: Future Implications and Ongoing Litigation - The case has broader implications for the management of family trusts in China, particularly regarding the legal recognition of trust arrangements and the responsibilities of trustees [14][15]. - The ongoing litigation in Hangzhou will determine the final asset distribution and the validity of the trust agreements, with the Hong Kong court's rulings serving as a preliminary framework for asset management during the legal proceedings [20].

Core Viewpoint - The Hong Kong High Court has issued a temporary injunction in a lawsuit involving the "Zong Family Siblings" and Zong Fuli, the current chairwoman of Wahaha, preventing the withdrawal or mortgaging of assets held by Jian Hao Ventures Limited in a HSBC account until the related lawsuits in Hangzhou and Zhejiang are resolved [1][4]. Group 1: Legal Proceedings - The court's ruling allows the Zong Family Siblings to secure assets amounting to $1.799 billion held in Jian Hao Ventures Limited's HSBC account [4]. - Zong Fuli became the sole shareholder and director of Jian Hao Ventures Limited starting February 2, 2024 [4]. - A handwritten document submitted by Zong Jichang indicates that Zong Qinghou instructed to prepare trusts in Hong Kong for the siblings, with each receiving $700 million [4]. Group 2: Trust Agreements - The trust agreement involves the establishment of three offshore trusts, with beneficiaries being Zong Jichang and his children, Zong Jieli and her children, and Zong Jisheng and his children [8][10]. - The total initial amount for the three trusts is set at $2.1 billion, with each trust starting at $700 million [12]. - The trusts are structured as non-principal trusts, meaning the principal amount remains invested, and only interest can be distributed to beneficiaries [10][12]. Group 3: Disputes and Management - The main dispute centers around the scope of trust assets, trustee authority, and the establishment timeline, with Zong Fuli asserting her role as a shareholder of the trustee during the transition phase [12][13]. - Zong Fuli does not dispute the authenticity of the trust establishment but claims that the trust assets are limited to interest from the fixed principal, not the principal itself [12]. - Communication from Zong Fuli's lawyer indicates a disagreement regarding the validity of the handwritten document, with intentions to establish the offshore trust fund at an appropriate pace [13].

Group 1 - The court ruling on August 1 involves a lawsuit between the "Zong family siblings" and Kelly Zong, the daughter of the current chairman of Wahaha, Zong Qinghou, regarding the establishment of family trusts [2] - The family trusts, named Trust A, Trust B, and Trust C, were set up with a total amount of $2.1 billion, with specific beneficiaries being the siblings and their children, excluding spouses [2] - The trusts are structured as non-principal trusts, meaning the principal amount remains invested in fixed income at HSBC Hong Kong, and only interest income is distributed to beneficiaries [4] Group 2 - The transition of the trusts is expected to move from a Private Trust Company (PTC) model to a professional trustee phase, with Kelly Zong initially serving as a shareholder of the PTC [4] - After the transition to a professional trustee, Kelly Zong will no longer manage the trusts, which will be fully managed by the "Zong family siblings" [4] - The siblings have requested the court to issue an injunction preventing Kelly Zong from handling assets in the HSBC account and to provide a complete record of asset, income, and expenditure changes since February 2 of the previous year [4]

Core Viewpoint - The inheritance dispute over the estate of the late founder of Wahaha, Zong Qinghou, has seen a significant development, with Zong Fuli losing the first round in court regarding the management of assets in a HSBC account [2][4]. Summary by Sections Court Decision - On August 1, 2023, the Hong Kong High Court issued a decision prohibiting Zong Fuli from transferring or withdrawing any assets from the HSBC account associated with Jian Hao Ventures Limited until the conclusion of related litigation in mainland China [5][6]. - The court mandated Zong Fuli to disclose the current balance, asset movements, and complete financial records of the HSBC account [6]. Parties Involved - The plaintiffs in the case are Zong Jichang, Zong Jieli, and Zong Jisheng, who are the illegitimate children of Zong Qinghou, while the defendant is Zong Fuli, the legitimate daughter and current chairperson of Wahaha [7][6]. Company Assets - As of May 31, 2024, Jian Hao Ventures Limited holds approximately $1.799 billion (equivalent to 141 billion HKD) in its HSBC account, primarily consisting of bonds, fixed-income assets, and some cash [7]. - The family trust established by Zong Qinghou includes three separate trusts, with a total value of $2.1 billion, benefiting his three illegitimate children and their descendants [7][8]. Trust Agreement - The trust is structured as a non-discretionary trust, meaning that the principal amount remains invested, and only interest income is distributed to the beneficiaries [8][11]. - Zong Qinghou had previously instructed Zong Fuli to establish these trusts, with specific beneficiaries outlined for each trust [10][11]. Financial Transactions - The court has prohibited Zong Fuli from disposing of or diminishing the value of the assets in the HSBC account [12]. - A transfer of $1.0851 million from the HSBC account has been contested, with Zong Fuli's defense claiming it was for the payment of equipment for a factory in Vietnam, supported by contracts and invoices [13].

Core Viewpoint - The article discusses the ongoing legal dispute involving Zong Fuli and her half-siblings regarding a trust fund established by their father, Zong Qinghou, and the inheritance of shares in Wahaha Group. The Hong Kong High Court's ruling has implications for the management of the trust and the assets involved in the case [1][2][12]. Group 1: Legal Proceedings - On August 1, the Hong Kong High Court ruled on a case involving Zong Fuli and her three half-siblings, who claim that Zong Qinghou established a trust fund for them, from which Zong Fuli allegedly transferred assets [1]. - The half-siblings have also filed a lawsuit in Hangzhou, seeking to confirm their inheritance rights to Zong Qinghou's 29.4% stake in Wahaha Group [2]. - The court maintained a preservation order to prevent Zong Fuli from disposing of approximately $1.799 billion in assets held in a Hong Kong account, ensuring the effectiveness of the Hangzhou lawsuit [2]. Group 2: Trust and Inheritance Details - The court's ruling revealed significant information about the trust's establishment and the beneficiaries, indicating that the trust may not have been formally established yet [3][12]. - Zong Qinghou had signed a document on February 2, 2024, appointing Zong Fuli as the trustee for three offshore trusts, with the beneficiaries being her half-siblings and their children [9]. - The court noted that Zong Qinghou's two wills did not name his half-siblings as beneficiaries, focusing instead on Zong Fuli and her mother, which raises questions about the legitimacy of the claims made by the half-siblings [12][13]. Group 3: Financial Implications - The assets in question include approximately $1.799 billion held in a HSBC Hong Kong account, which is central to the ongoing legal disputes [2]. - The trust arrangement, if established, would involve significant financial management and distribution of assets among the beneficiaries, which remains a contentious issue [11][12].

Core Points - The court ruling on August 1 involves a lawsuit between the "Zong Family Siblings" and Kelly Zong, the daughter of current Wahaha chairman Zong Qinghou, regarding the establishment of offshore trusts totaling $2.1 billion [1]. Group 1: Trust Structure and Beneficiaries - Zong Qinghou established three offshore trusts (Trust A, Trust B, Trust C) with specific beneficiaries: Zong Jichang and his children for Trust A, Zong Jieli and her children for Trust B, and Zong Jisheng and his children for Trust C [1]. - The beneficiaries of the trusts do not include the spouses of the named individuals, and the trust assets are designated as their premarital personal property [1]. Group 2: Trust Management and Transition - The trusts are structured as non-principal trusts, meaning the principal remains invested in fixed-income assets at HSBC Hong Kong, with distributions limited to interest income [4]. - The trusts will transition to a Private Trust Company (PTC) model, with Kelly Zong initially serving as a shareholder during the transition phase, after which the management will be fully transferred to the "Zong Family Siblings" [4]. Group 3: Legal Actions and Requirements - The "Zong Family Siblings" have requested the court to issue an injunction preventing Kelly Zong from handling assets in the HSBC account and to disclose the account's current balance along with a complete record of asset, income, and expenditure changes since February 2 of the previous year [4].

Core Viewpoint - The court ruling in the inheritance dispute over Wahaha's assets has favored the three siblings of the Zong family, denying Zong Fuli the right to utilize the family's substantial wealth, which is valued at $2.1 billion [1][2]. Group 1: Trust Establishment and Management - Zong Qinghou established three offshore trusts (Trust A, Trust B, Trust C) for his three children and their offspring, with the total trust amount being $2.1 billion [1]. - The trusts are structured as non-principal trusts, meaning the principal assets will remain invested in fixed income at HSBC Hong Kong, and only interest income will be distributed to the beneficiaries [2]. - Zong Fuli initially served as a shareholder in the Private Trust Company (PTC) during the transition phase, but will not participate in the management once it moves to a professional trustee stage, which will be managed entirely by the three siblings [2]. Group 2: Court Orders and Restrictions - The court has issued an injunction preventing Zong Fuli from handling assets stored in HSBC accounts and requires her to disclose the latest account balances [2]. - Zong Fuli is also mandated to provide a complete record of asset, income, and expenditure changes since February 2 of the previous year [2].

Core Points - The court ruling on August 1 involves a lawsuit between the "Zong Family Siblings" and Zong Qinghou's daughter, Zong Fuli, regarding the establishment of offshore trusts totaling $2.1 billion [1] - The trusts were set up under a delegation agreement where Zong Qinghou appointed Zong Fuli to establish three offshore trusts for the benefit of his children and their descendants, excluding spouses [1] Group 1 - The trusts are named Trust A, Trust B, and Trust C, with specific beneficiaries designated for each trust [1] - The total amount of the family trusts is $2.1 billion, which is intended for the personal property of the beneficiaries prior to marriage [1] - The trusts are structured as non-principal trusts, meaning the principal amount remains invested in fixed-income assets at HSBC Hong Kong, with distributions only from interest income [4] Group 2 - The transition to a Private Trust Company (PTC) model is expected, with Zong Fuli initially serving as a shareholder during the transition phase [5] - After the transition to a professional trustee phase, Zong Fuli will no longer manage the trusts, which will be fully managed by the "Zong Family Siblings" [5] - The court ruling also includes a request from the "Zong Family Siblings" for an injunction to prevent Zong Fuli from handling assets in a HSBC bank account and to provide a complete record of asset, income, and expenditure changes since February 2 of the previous year [6]

Core Viewpoint - The court ruling on the lawsuit involving the "Zong Family Siblings" and Kelly Zong, daughter of Wahaha's chairman Zong Qinghou, has been announced, focusing on the establishment and management of family trusts totaling $2.1 billion [1]. Group 1: Trust Establishment and Structure - Zong Qinghou and Kelly Zong signed a delegation agreement to establish three offshore trusts (Trust A, Trust B, Trust C), with specific beneficiaries being the siblings and their children, excluding spouses [1]. - The total amount of the family trusts is $2.1 billion, designated as personal property for the beneficiaries prior to marriage [1]. Group 2: Trust Management and Transition - The trusts are structured as non-principal trusts, meaning the principal assets will remain invested in fixed income at HSBC Hong Kong, with only interest income being distributed [3]. - The trusts will transition to a Private Trust Company (PTC) model, with Kelly Zong initially serving as a shareholder during the transition phase, after which the management will be fully transferred to the "Zong Family Siblings" [3]. Group 3: Legal Actions and Requirements - The "Zong Family Siblings" have requested the court to issue an injunction preventing Kelly Zong from handling assets in the HSBC account and to disclose the account's current balance along with a complete record of asset, income, and expenditure changes since February 2 of the previous year [3].

Core Points - The court ruling on August 1 involves a lawsuit between the "Zong Family Siblings" and Zong Qinghou's daughter, Zong Fuli, regarding a family trust agreement [1] - The trust, established by Zong Qinghou, consists of three offshore trusts with a total value of $2.1 billion, benefiting only the siblings and their children, excluding spouses [1] - The trust is structured as a non-discretionary trust, with assets invested in fixed income at HSBC Hong Kong, distributing only interest income [1] - Zong Fuli will initially act as a shareholder of the Private Trust Company (PTC) during the transition phase, after which the siblings will manage the trust independently [1] Legal Actions - The "Zong Family Siblings" have requested the court to issue an injunction preventing Zong Fuli from handling assets in the HSBC account and to disclose the account's current balance [2] - They also demand a complete record of asset, income, and expenditure changes since February 2 of the previous year [2]