Hangzhou-based Wahaha Group Co Chairman Zong Qinghou is reportedly considering an alliance with Taiwan.

Hangzhou-based Wahaha Group Co Chairman Zong Qinghou

On his five-day visit to Taiwan on Nov 26, Zong said he might establish an alliance with Taiwan’s health industry in building Hangzhou’s health business, the Economic Daily News reported, without citing any sources.

The report also said Zong is interested in Taiwan real estate.

In 1987, the sales department of school-run business of Shangcheng District of Hangzhou, the predecessor of Wahaha, was set up. Mr. Zong Qinghou, the founder of Wahaha, together with other two retired teachers started business from selling frozen sucker with a loan of ￥140 thousand.

In 2000, the company produced 2.24 million tons of beverage with a sales revenue of ￥5.4 billion, ￥1.27 billion of profit and tax and ￥0.96 billion of profit. The production accounted for 15% of the nation's output of beverage and 37% of the "Big Ten" of beverage industry. The output of the main products, such as bottled water, fruit milk, AD milk enriched with Ca, and mixed congee has been in the first place of the Chinese beverage industry for years, among which the output of milk product and bottled water can compete with other international big corporations.

Wahaha Group is now the biggest company in China’s beverage industry with total assets of 4.4 billion yuan and more than 40 subsidiaries covering over 16 provinces in the Chinese mainland.

By Lucy