Can selling bottled water really build a 530 billion yuan (about US$74 billion) empire? Zhong Shanshan has just topped the list of China’s richest people for the fourth time, but behind his legendary wealth, Nongfu Spring is facing an unprecedented test.
Ten years ago, few would have believed that bottled water could mint China’s wealthiest man. Yet, according to the newly released 2025 Hurun Rich List, Zhong, founder of Nongfu Spring, has reclaimed the top spot with a net worth of 530 billion yuan—outpacing ByteDance’s Zhang Yiming by an astonishing 60 billion.
Most people associate Zhong’s fortune solely with Nongfu Spring, but his empire is powered by two engines: bottled water and biopharmaceuticals. Zhong holds a combined 84 percent stake in Nongfu Spring (HK 09633), whose market capitalization reached 537.8 billion yuan as of October 2025. That accounts for roughly 451.7 billion yuan of his wealth.
Even after Yangshengtang, a related entity, withdrew as a shareholder in June, the Hurun List still treats those holdings as under Zhong’s control. He also owns 73.5 percent of Wantai Biological Pharmacy (A-Share 603392) through direct and indirect holdings. The company, valued at 71.1 billion yuan, adds another 52.3 billion yuan to his net worth.
Together, these two pillars form a powerful pairing: steady cash flow from beverages and explosive growth from vaccines. Nongfu Spring’s share price soared 90 percent this year amid Hong Kong’s market rebound, while Wantai Biological surged on expectations of its upcoming nine-valent HPV vaccine. The result was a 190 billion yuan increase in Zhong’s fortune in 2025. While internet and EV companies are still burning through cash chasing growth, Zhong’s “water plus health” model stands out for its resilience.
Nongfu Spring’s 2024 financial report, however, reveals a more complex picture. The company recorded 42.9 billion yuan in revenue and 12.1 billion yuan in net profit, representing steady year-on-year growth. Yet beneath the surface, its product mix has undergone a dramatic shift. Tea beverages generated 16.7 billion yuan in revenue, surpassing packaged water’s 15.9 billion for the first time. In 2023, packaged water still accounted for nearly half of total sales, but by 2024, its share dropped to 37.2 percent, while tea beverages climbed to 39 percent.
The standout performer was Oriental Leaf, Nongfu’s sugar-free tea brand. Once mocked as “the drink even dogs wouldn’t touch,” it now dominates China’s sugar-free tea segment with more than 50 percent market share. Its revenue nearly doubled in 2023 and grew another 90 percent in the first half of 2024. The transformation from niche product to national favorite took a decade of persistence and timing. By contrast, packaged water—the cornerstone of Zhong’s empire—declined sharply. Sales fell 21.3 percent, down 4.3 billion yuan from the previous year. Zhong admitted in the company’s annual report that Nongfu Spring had faced “unprecedented shocks and challenges.” Its market share slipped for three consecutive months, while public criticism about its “spring water” claims hurt consumer sentiment. The company’s gross margin dropped slightly from 59.5 percent to 58.1 percent, pressured by rising raw material prices and increased promotional costs.
Signs of recovery began to appear in the first half of 2025. Revenue rose 15.6 percent year-on-year to 25.6 billion yuan, while net profit jumped 22.2 percent to 7.6 billion. Packaged water sales rebounded to 9.4 billion yuan, and tea beverage revenue surpassed 10 billion yuan, marking a clear V-shaped recovery.
The secret behind Nongfu Spring’s endurance lies in its unique operating logic. Zhong built his company on three core principles: control of resources, patience in product innovation, and flexibility in focus. He realized early on that access to water sources would be the ultimate competitive moat. Nongfu Spring now operates 12 major water sources across China, from Qiandao Lake to Changbai Mountain, covering spring and mineral water types. Its “source-based production” model means factories are built within 500 kilometers of consumer markets, keeping logistics costs below 6 percent of revenue—half the industry average. This asset-light approach reduces risk and creates an inimitable barrier to entry. The company recently completed a 1.25 billion yuan project in Huangshan with an annual capacity of 1.6 million tons and is advancing six new water-source projects to further secure supply.
Nongfu Spring’s ability to cultivate long-term bestsellers is another key to its success. Oriental Leaf’s rise wasn’t an accident; the company bet early on the sugar-free tea market long before it became mainstream. This mix of patience and trend sensitivity has allowed Nongfu to stay relevant even as consumer preferences evolve. Unlike many competitors who chase short-term fads, Zhong believes in “sharpening a sword for ten years.”
Equally crucial is the company’s dual-engine structure. When bottled water hit a growth ceiling, tea beverages stepped in to drive expansion. Today, beverages account for more than 62 percent of total revenue. Zhong’s guiding philosophy is simple: focus on essential, high-frequency consumption. Whether it’s bottled water with annual per capita consumption of 50 liters or HPV vaccines for hundreds of millions of women, both sectors represent massive, defensible markets.
Looking ahead, Nongfu Spring has at least three major growth opportunities. The first is the continued expansion of its tea beverage line. China’s sugar-free tea segment has grown from just 1 percent of the overall beverage market in 2022 to 5 percent in 2023, and analysts believe it could double again. As long as Oriental Leaf maintains a majority share, Nongfu will continue to ride this wave. The company is also exploring functional and juice-based drinks to diversify its portfolio.
The second opportunity lies in globalization. Zhong announced at the start of 2025 that international expansion would become a strategic priority. With Nongfu’s strong brand image and product quality, Southeast Asia and Europe offer promising entry points. In markets where consumers value health and purity, the company’s “natural-source” narrative may resonate strongly. Competing with global giants like Coca-Cola and Evian will be tough, but Nongfu’s homegrown authenticity could be its edge.
The third opportunity is premiumization. From limited-edition teas to high-end mineral waters, Nongfu continues to climb the value chain. As China’s middle class grows and disposable income rises, the demand for premium beverages is surging. This trend not only lifts brand perception but also improves profitability by offsetting pressure from price wars in mass-market products.
Still, challenges abound. The first is intensifying competition. The sugar-free tea market has attracted heavyweights such as Suntory, Pepsi, and Genki Forest, squeezing growth margins. Oriental Leaf’s expansion slowed from 100 percent in 2023 to 32 percent in 2024. In bottled water, cost declines in PET materials have spurred aggressive price promotions. HSBC recently downgraded Nongfu’s stock from “Buy” to “Hold,” citing competitive headwinds that could cap earnings growth.
Another major concern is founder dependence. Zhong’s centralized management style has driven success but also created “key-person risk.” His son, board director Zhong Shuzi, holds foreign citizenship and does not participate in daily operations, leaving succession uncertain. The public-relations crisis of 2024—when online users accused the company of misleading labeling about “spring water”—highlighted how much Nongfu’s reputation is tied to its founder.
Policy and cost pressures are also mounting. Environmental regulations under China’s “Ten Water Policies” have increased compliance costs, while raw material and transportation prices remain volatile. Acquiring new water sources is becoming more challenging as ecological oversight tightens.
Zhong Shanshan’s fourth ascent to the top is a victory for the real economy in an era dominated by tech and finance. Nongfu Spring’s formula—control of scarce natural assets, patient brand cultivation, and dual-sector diversification—has proven remarkably resilient. But the capital market’s enthusiasm reflects confidence in its stability, not explosive growth.
In the next three years, the company’s future will depend on whether it can sustain its tea beverage leadership, achieve meaningful overseas expansion, and manage a smooth leadership transition. For investors, Nongfu Spring may not be the fastest-growing stock, but it remains a dependable anchor in China’s consumer sector. For consumers, seeing a domestic brand rise from a simple bottle of water to a diversified beverage giant is a point of pride.
In a world where attention spans are short and new business models appear daily, mastering one simple product and keeping it relevant for twenty years is already a remarkable achievement. Whether Zhong can top the list a fifth time may not matter as much as whether Nongfu Spring can continue proving that the real economy can deliver sustainable, long-term growth.
Zhong has built a model of enduring wealth by combining industrial discipline with long-term vision. But the road ahead will be anything but smooth.
Can a two-yuan bottle of water continue to support a hundred-billion-yuan market cap? How long can the Oriental Leaf growth story last? And will the company face another wave of public backlash? The answers to these questions will determine not just Zhong’s place on the rich list, but also how China’s real economy evolves in the decade ahead.
In the business world, there are no eternal champions—only those who adapt, endure, and keep moving forward.
(Note: 1 U.S. dollar equals 7.14 Chinese yuan.)
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