The company's batch of executive changes has sparked industry discussion, while Wahaha's succession issue has drawn the attention of industry insiders. Recently, multiple executives at Hangzhou Wahaha Group Co., Ltd. (hereinafter referred to as "Wahaha") have undergone changes. In response, Zong Qinghou, Chairman and General Manager of Wahaha Group, stated in an interview with Cailian Press that the changes were due to "original directors retiring." The company's batch of executive changes has sparked industry discussion, and the succession issue has drawn the attention of industry insiders. Regarding the succession issue, Zong Qinghou did not reply to Cailian Press reporters' questions. However, he recently stated publicly that "for the second-generation succession of private enterprises, more than half will not do such a thing; property will definitely be inherited by their own children, but management does not necessarily have to be done by their children. Chinese enterprises will be managed by professional managers in the future." Batch of Director Changes Currently, among Wahaha's four directors, except for Wu Jianlin, Zhang Yiyong, Du Jianying, and Huang Minzhen have all ceased to serve as directors, replaced by Yu Qiangbing, Pan Jiajie, and Zhang Hui. In fact, Wahaha's personnel adjustments are not limited to this. Wahaha Group's subsidiary, Hangzhou Wahaha Beverage Co., Ltd. (hereinafter referred to as "Wahaha Beverage Company"), also previously adjusted its senior management. In April 2019, Zhang Honghui officially stepped down as General Manager of the company; Huang Minzhen withdrew from the board of directors, and Jiang Lijie was added as a director. At that time, some media reported that Wahaha explained the exits of Zhang Honghui and Huang Minzhen as normal retirements due to reaching retirement age. Zhu Danpeng, a researcher at the China Brand Research Institute, told Cailian Press reporters that the intensive executive changes at Wahaha are more about its self-optimization process. It is worth noting that Zong Qinghou, now 74, has not yet clarified his retirement plan. In April this year, according to media reports, Zong Qinghou proposed a plan to "prepare to step back from the front line." Subsequently, the company officially responded that "Mr. Zong (Zong Qinghou) currently has no specific retirement plan." Zong Fuli, who has been regarded by the outside world as Zong Qinghou's successor, has been serving as the Minister of Wahaha's Brand Public Relations Department since October 2018, overseeing the packaging and brand promotion of the company's products. Since her appointment, Wahaha has gradually adjusted its product and marketing strategies. In the view of an anonymous industry insider, Zong Fuli's entry into Wahaha may be laying the foundation for her future succession. According to data, in the early days of joining Wahaha, Zong Fuli served as Deputy Director of the Management Committee of Wahaha's Xiaoshan No. 2 Base and General Manager of Hangzhou Wahaha Kaqianna Daily Chemical Co., Ltd., and later served as President of Hangzhou Hongsheng Beverage Group Co., Ltd. "From Zong Fuli's resume, although she manages Hongsheng Group, she has not entered Wahaha's core management. Serving as the Minister of Wahaha's Public Relations Department may be a node for her to move towards succession," the insider pointed out to Cailian Press reporters. From the perspective of work attributes, Wahaha also hopes that Zong Fuli can solve the aging problem Wahaha faces in brand promotion to match the current needs of the new generation for products. Xu Xiongjun, a strategic positioning expert, said in an interview with Cailian Press reporters that Zong Qinghou has two thoughts on succession: one is for his daughter to take over, and the other is for management to take over. Judging from the current personnel changes, the possibility of management taking over is greater. Although his daughter Zong Fuli serves as the Minister of Public Relations, her position is relatively low. Performance Stabilization and Long-term Challenges Equally concerning as the succession issue is Wahaha's performance. After reaching its performance peak in 2013, Wahaha entered a downward track in the following years, only beginning to recover in 2018. Data shows that from 2013 to 2017, Wahaha's revenues were 78.28 billion yuan, 72.8 billion yuan, 67.7 billion yuan, 52.9 billion yuan, and 46.438 billion yuan respectively, and in 2018 it was 46.89 billion yuan. Regarding the decline in performance, Zong Fuli once publicly stated that after 2014, the rise of e-commerce and changes in consumption values brought challenges of innovation and upgrading to traditional consumer goods enterprises. During that stage, Wahaha failed to adjust in time, leading to a downward performance trend. "Looking at the current food and beverage industry, companies like Master Kong and Uni-President have mediocre performance. The slight recovery in the industry in the past two years is part of the overall industry environment. Wahaha's performance recovery may also be temporary," Xu Xiongjun told reporters. Zhu Danpeng also believes that Wahaha's performance stabilization is only temporary. If the company wants healthy development, relying solely on personnel changes has little effect. From a comprehensive view of the industry, channels, and consumption, Wahaha currently has many contradictions. Brand height and market positioning, product quality, and consumer preferences constrain the company's development in many aspects. Its performance truly recovering has a long way to go. Another industry insider pointed out to reporters that Wahaha's revenue growth last year is related to its transformation. The company's official website shows that Wahaha has gradually transformed its products into the health field, launching meal replacement powder, meal replacement biscuits, probiotic solid drinks, etc. Zong Qinghou once publicly stated that in 2019, it would continue to focus on developing products that address sub-health issues. In addition to innovating and upgrading its main business, it would also develop intelligent manufacturing. Furthermore, Zong Qinghou's attitude towards listing has undergone a significant shift. In 2017, Zong Qinghou's attitude towards listing changed from "Wahaha doesn't lack money and won't list" to "will also consider listing." By 2018, Zong Qinghou's statement changed to "Listing requires the right timing. If there is a large industry to invest in in the future, Wahaha will also list to raise funds." Zong Fuli's response was more direct. In an interview with media in May this year, she frankly stated, "Wahaha's listing is a very normal move. For the entire enterprise, it can achieve upstream and downstream integration through listing." To this end, the Zong father and daughter are also quietly preparing. In 2018, Wahaha conducted a buyback of employee shares, which was interpreted by the industry as paving the way for the company's listing. Once the tip is adopted, a payment of 400-2000 yuan will be made.