"The Whispers of a Legend" Has Really "Lost Out" to Nongfu Springs?
The beverage industry has always been considered an industry that will not decline, and Wahaha, which was founded in 1993, really "lost out" to Nongfu Springs? (Source: Hexun Financial WeChat account)
Chen Tuo Refutes the First Fortune Coming from Wahaha
Eating Watchers Don't Buy It
On March 3rd, Chen Tuo, the chairman and general manager of Nongfu Springs Co., Ltd. and the chairman of Shunli Health Co., Ltd., posted an article entitled "Chen Tuo: My Story with Zong Qinghou and Three Things" on WeChat account "Nongfu Springs", recalling his entrepreneurial experiences, working at Wahaha, and the different ideas and lawsuits between Nongfu Springs and Zong Qinghou. At the same time, he clarified the rumors about his first fortune coming from Wahaha.
Chen Tuo said, "I officially resigned from my post as a reporter for Zhejiang Daily in February 1988, and started doing business at sea. I had tried running a newspaper, growing mushrooms, and even selling window curtains, but none of these ventures were successful. During my entrepreneurial journey in Hainan, I discovered that around 1990, the real estate market in Hainan was just taking off, but there was no ability to process window curtains in Hainan. So, I established a company called Dacheng Window Curtains Co., Ltd. in Hainan and began selling window curtains from Hangzhou to Hainan and eventually expanded to Beijing's Wangfujing (600859). Therefore, the textile business was my first fortune, not the rumors about 'my first venture income coming from Wahaha'."
Many years later, during a sales conference at Nongfu Springs, I joked that when we didn't sell out of Wahaha in Hainan, it must have been sold to Guangdong. Who knows if we would have been recognized as a fake product today. I never received wages from Wahaha or got fired for selling out.
However, the comment section on Nongfu Springs' social media was not buying it, pointing out that Nongfu Springs' response was evasive and didn't address the key points of the rumors.
Nongfu Springs' Stock Price Continues to Fall...
Is Water Really a "Big Leg"?
On March 2nd, Hong Kong-listed Nongfu Springs closed at HK$42.4 per share, down 1.71%, with a cumulative fall of 5.25% over the past five trading days. (Source: Hexun Financial WeChat account)
Since Zong Qinghou's passing on February 25th, Nongfu Springs' stock price has continued to fall from HK$44.8 per share to HK$42.4 per share. The founder Chen Tuo's wealth also decreased, and Nongfu Springs thus found itself in a unprecedented crisis of reputation, all linked to Zong Qinghou's passing.
From 2021 to 2023, Chen Tuo continuously ranked as China's richest person for three consecutive years. Chen Tuo has also said, "Water and vaccine industries are the two sectors I will focus on in the future. Water is truly a 'big leg' because water products in the beverage industry can never decline.".
Bottled water is indeed a good business, especially for leading enterprises. According to data from the Research Institute of China's Industrial Development, the Chinese bottled water market scale grew from RMB 1.237 billion in 2014 to RMB 1.999 billion in 2019 and over RMB 2 trillion by 2021. In the next few years, the market size is expected to grow at a rate of 8% to 9%, reaching over RMB 3 trillion by 2025.
"The Whispers of a Legend" Has Really "Lost Out" to Nongfu Springs?
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