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Hongsheng’s KELLYONE Relaunch Posts Weak Online Sales Amid Operational Pressure

Summarized by NextFin AI
  • Zong Fuli's new beverage brand "Guoran Bobo" under Hongsheng Group has generated only 50,000-to-100,000 yuan in sales over its first three months online, with total units sold remaining under 6,000.
  • Hongsheng's internal targets show significant shortfalls: national orders reached 2.3 billion yuan (66% of target, down 24% year-on-year) while shipments hit only 520 million yuan (15% of target, down 83%).
  • Management restructuring accompanied commercial pressure, including removal of heads across administration, sales, legal and production units, with Zong taking direct oversight of marketing.
  • Ongoing family litigation continues, with approximately 1.8 billion dollars frozen in an HSBC account pending Hangzhou proceedings involving claims from three half-siblings over offshore trusts.

NextFin News — Zong Fuli’s effort to rebuild a personal beverage brand under Hongsheng Group has so far produced modest commercial results. The company’s Douyin store for the new “Guoran Bobo” fruit soda has generated only limited sales in its first three months online, according to third-party monitoring data cited by multiple Chinese media outlets.

KELLYONE, named after Zong’s English name, was founded in 2016 and spent roughly a year largely dormant before returning in mid-2026 with the new carbonated juice drink. The product, offered in lemon and grapefruit flavors and positioned with real-juice and functional-ingredient claims, began limited distribution in Jiangsu, Zhejiang and Shanghai convenience and instant-retail channels in late May. The dedicated Douyin store opened in early June.

Hutun data reported by Interface News, 36Kr and other outlets show the store had accumulated roughly 1,000 to 1,500 followers by late August. Sales over the roughly three-month period were placed in the 50,000-to-100,000-yuan range across dozens of livestream sessions, with average session revenue near 1,000 yuan. Total units sold remained under 6,000, the strongest single SKU being a six-pack of the lemon variant. An unsweetened tea line under the same brand also appeared in the store with similarly limited volume.

Hongsheng continues to function as a major contract manufacturer linked to the Wahaha system while attempting to develop independent brands. An internal document circulating among media in May indicated that by early May national order reporting had reached 2.3 billion yuan, or 66 percent of target and down 24 percent year-on-year. Shipments stood at 520 million yuan, only 15 percent of target and down 83 percent from the prior-year period. Distributor fulfillment problems were noted as widespread.

Management changes have accompanied the commercial pressure. In May, Hongsheng reorganized several functions and removed or reassigned the previous heads of administration, sales, legal and production-related units, with Zong taking direct oversight of the marketing center. In late August, media reported that human-resources minister Kou Jing was removed from that post and reassigned to a section-chief role; a former regional deputy general manager, Liu Xiaojing, was named as replacement. The company has not issued a formal public explanation. Earlier in the year, reports also described plans to outsource non-production functions such as energy, property, warehousing and laboratory services as part of cost control.

Outside the operating business, legal matters continue. On July 21 the Hong Kong Court of Appeal dismissed an application by Zong Fuli and Jian Hao Ventures for leave to appeal a preservation order. The order keeps approximately 1.8 billion dollars in an HSBC account frozen pending the outcome of related proceedings in Hangzhou. The dispute involves claims by three half-siblings regarding offshore trusts allegedly established by the late Zong Qinghou. Shortly after the Hong Kong ruling, one of the half-siblings and their mother registered a new food company in Hangzhou, according to corporate-registry information reported in the press.

KELLYONE’s earlier history included higher-priced, shorter-shelf-life juices and later entries into sugar-free tea and sparkling drinks, supported at times by celebrity endorsements. The current Guoran Bobo line is priced far lower, closer to mass-market soft drinks, and carries explicit Hongsheng Group branding rather than Wahaha markings. Whether the lower price point and limited regional rollout can generate meaningful scale remains unproven after the first quarter of online activity.

Hongsheng’s dual role as manufacturer and aspiring brand owner leaves it exposed both to the soft performance of the broader Wahaha-linked distribution system and to the costs of building consumer recognition from a low base. The combination of weak early brand metrics, reported shortfalls against internal targets, successive management adjustments, and unresolved family litigation presents a constrained operating environment.

Further evidence will come from whether Guoran Bobo expands beyond its initial eastern China footprint and whether the internal reorganization produces measurable improvement in order fulfillment and shipments in the second half of the year.

Explore more exclusive insights at nextfin.ai.

Insights

What is the history of the KELLYONE brand under Hongsheng Group?

How does Hongsheng Group relate to the Wahaha distribution system?

What flavors are available in the new Guoran Bobo carbonated juice drink?

What are the sales performance metrics of the Guoran Bobo Douyin store?

How do third-party data platforms track online sales performance?

What operational pressures is Hongsheng facing in order fulfillment?

Why did Hongsheng reorganize management functions recently?

What changes occurred in the Hongsheng marketing center leadership?

What cost control measures has Hongsheng planned for non-production functions?

How did the Hong Kong Court of Appeal rule on the preservation order application?

How much money remains frozen in the HSBC account?

What is the status of the family litigation involving Zong Fuli?

What pricing strategy does the Guoran Bobo line adopt versus earlier products?

How does the new beverage positioning differ from mass-market soft drinks?

What products did KELLYONE offer before its recent relaunch?

How does the dual role of manufacturer and brand owner affect Hongsheng?

What are the risks of building consumer recognition from a low base?

Will the KELLYONE relaunch expand beyond the eastern China region?

How might the unresolved family dispute impact Hongsheng business stability?

What indicators will show improvement in Hongsheng second half performance?

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