Text | Chinese Business Tao Lue Yu Gang

In the past glory days, his coverage rate in the market terminals reached more than 90%, and he was a household name.

After climbing high and falling hard, he is now the only fugitive in the "New Fortune China 500 Rich List".

Chen Hongdao, this name may not often appear in the public eye, but everything he does is unforgettable.

During the 2008 Wenchuan earthquake, Chen Hongdao decided to donate 100 million yuan in the name of Jiaduobao Group without saying a word. In the national corporate donation rankings that year, Jiaduobao ranked third, followed by China Mobile and China Grid.

On the evening of May 19, an article called "Let Wong Lo Kat disappear from China's shelves, block it!" appeared on the Tianya Forum. 》's post, Wang Laoji, you are cruel! Donate 100 million... In order to rectify this arrogant company, buy out all Wanglaoji supermarkets! Buy a can last time! If you don’t buy it, please don’t like this post! "

As the news spread, countless consumers across the country wanted to buy up all Wong Lo Kat.

If it weren't for Chen Hongdao, the fate of herbal tea might be similar to that of Beijing Douzhi, just a niche drink in the regional market.

In 1997, Chen Hongdao, the operator of Hong Kong Wong Lo Kat, entered the mainland. He found that the mainland operation rights of Wong Lao Kat belonged to Guangzhou Pharmaceutical Group, and signed a 15-year lease contract for 4.5 million yuan per year. Chen Hongdao got the red can of Wong Lo Kat in the mainland. The exclusive rights to operate in the mainland have begun a "long-distance race".

China has no shortage of regionally-leading beverage brands. Beijing has Arctic Ocean, Shanghai's Zhengguang and Salt Soda, and Guangzhou has Asia Shashi. It does not have its own national beverage.

In 2007, Wanglaoji surpassed Coca-Cola and Pepsi with total sales of nearly 9 billion yuan, becoming the first popular beverage in China.

The good times did not last long, and the bright moments were fleeting. What followed was a difficult problem: the brand was rented after all, and the 15-year lease period was approaching in a blink of an eye. Unfortunately, the lease period has not yet expired, and the lawsuit has begun. Here it is.

It turns out that in order to continue using the trademark at the initial price, Chen Hongdao "bribed" Li Yimin, the then general manager of GPHL, whose daughter was seriously injured in an accident in Australia and needed about HK$3 million in urgent need. Treatment fees, lawyer fees, etc. Chen Hongdao "generally" helped to solve the financial problem.

There has been a lot of controversy about this case, and Chen Hongdao gave up during this period. Bao fled and returned to Hong Kong.

Since 2011, the legal battle between Hongdao, the parent company of Jiaduobao Group, and Guangzhou Pharmaceutical Group has been well known. In the past few years, Jiaduo has been involved in dozens of lawsuits. Baojun ended in failure, and the boss Chen Hongdao helplessly laughed at himself: "The first in selling herbal tea, the last in litigation. "

There are no winners in lawsuits. Those who win lose, and losers lose completely. Whether it is Guangdong Wanglaoji or Jiaduobao, which was run by Chen Hongdao, the business has plummeted.

The financial report shows that sales in 2018 were 9.487 billion yuan, which was about half of Wong Lo Kat’s peak period. In the first half of 2020, revenue dropped by 23.11% year-on-year, and profits dropped by 25%. On the other hand, Jiaduobao controlled by “fugitive” Chen Hongdao. The situation is worrying, and the net profit once turned negative.

The previous wave has hurt itself, and the latter wave has come. The latest valuation of Yuanqi Forest, which was registered and listed in 2016, is close to 30 billion yuan.

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