Other "Wahaha companies"
Whilst the group has many subsidiaries, both local and foreign registered, there are also a number of entities which were essentially private companies owned or controlled by Zong. These companies are the subject of the dispute with the foreign partner. At the end of 2006, total non-joint venture companies reportedly had equity of ¥5.6 billion and profits of ¥1.04 billion. In December, Zong had agreed to sell these to Danone for ¥4 billion.[12]
The Hangzhou Wahaha Guangsheng Investment Co. (杭州娃哈哈广盛投资有限公司) ("GUANGSHENG") established in 2003 with registered capital of ¥50 million, is a key non-JV entity. Its shares were held by Zong and the union in a ratio of 60:40. Its capital was later increased to ¥80 million. The following companies, inter alia, were its subsidiaries or associates, with holdings ranging from 39 to 60 percent:[13]
The shares of Hangzhou Wahaha Children's Clothing Co. (杭州娃哈哈童装有限公司) founded in 2002, were initially held by Guangsheng, but were transferred out in August 2003, in an "interesting series of share transfers". It was 65% owned by Zong, 10% by his wife, and 25% by Platinum Net Ltd.[13]
The Hangzhou Wahaha Food and Beverage Sales Co. (杭州娃哈哈食品饮料营销有限公司) "WHHFBSC", registered on 19 December 2006, is an external company allegedly now the centre of a parallel distribution network. 10% of its share capital is held by Zong's wife, Shi Youzhen, and 90% by Ever Maple Trading Ltd.[14]
Zong set up non-jv owned factories, such as the Hangzhou Xiushan Shunfa Packaging Co. (杭州萧山顺发食品包装公司),[14] to manufacture or pack products identical to WHH. Danone alleges that distributors were asked to set up new bank accounts for their deposit payments in the name of WHHFBSC to sell products from these factories.[15]
- Hangzhou Wahaha Children's Clothing Co. 杭州娃哈哈童装有限公司, est. 2002
- Changsha Wahaha Beverages Co. 长沙娃哈哈饮料有限公司
- Harbin Shuangcheng Wahaha Foods Co. 哈尔滨双城娃哈哈食品有限公司
- Jian Wahaha Beverages Co. 吉安娃哈哈饮料有限公司
Offshore companies
These offshore companies have been reported as being subsidiaries of the Wahaha Group, and have been seized in their respective domiciles:[16]
British Virgin Islands: Golden Dynasty Enterprise Ltd, Gold Factory Developments Ltd, Platinum Net Ltd, Sunworld Enterprises Ltd, Great Base International Ltd, Bountiful Gold Trading Ltd and Wintell Enterprises Ltd.
Samoa: Mega Source Investments Ltd and Honour Bright Investments Ltd
