HONG KONG, July 22 — Kelly Zong, long seen as the carefully groomed heir to China’s Wahaha beverage empire, is now at the centre of two high-stakes legal battles that could reshape the future of one of the country’s most iconic private companies.

For decades, Kelly Zong was known as the only child of the late billionaire Zong Qinghou, founder of Chinese beverage giant Hangzhou Wahaha Group Co, according to a Bloomberg report.

Her father’s efforts to groom her as his successor were praised as a model for succession during China’s one-child policy era.

Now, however, the so-called Wahaha “princess” is facing two overlapping legal battles that may shape China’s approach to inheritance law and affect Wahaha’s reputation.

In one case, three people claiming to be her half-siblings have asked a Hong Kong court to compel her to help establish three trusts worth US$2.1 billion.

The case, which is based on what the plaintiffs say were Qinghou’s instructions before his death, has triggered widespread attention on Chinese social media.

Separately, Kong is being sued by former Wahaha employees who want to void a 2018 share buyback, saying the repurchase price was unfairly low, according to sources familiar with the matter.

Wahaha’s labour union said the buyback had been approved by staff representatives and complied with legal requirements, in a statement posted on Weibo in September.

These disputes have renewed scrutiny of Wahaha’s leadership and shareholding structure following Qinghou’s death and could hinder Kelly’s efforts to publicly list the company.

The company is also of interest to the Chinese government, with a state-owned firm holding a 46 percent stake, while Kelly owns 29.4 per cent and the company’s union holds 24.6 percent, according to corporate data platform Qichacha.

“Chinese family business founders need to take careful note of the Wahaha case,” said Marleen Dieleman, a professor of family business at IMD in Singapore.

In court, the plaintiffs said Qinghou had issued handwritten instructions in January 2023 to set up three US$700 million trusts at HSBC in Hong Kong, saying “if the USD is not enough, convert yuan.”

Zong’s lawyer said she had agreed to the trust plan in principle, but added that “we agreed to set up the trusts from the start, but only on the condition that the trust assets would be clearly defined.”