Chapter 13 Jianlibao memorabilia

In 1984, Li Jingwei, director of Sanshui Distillery in Sanshui County, Guangdong Province, obtained a new type of sports drink formula and launched the "Jianlibao" beverage brand.Jianlibao became the drink of choice for the Chinese Olympic delegation, and was hailed as "China's magic water" by the Japanese media. In 1987, Guangdong Jianlibao Co., Ltd. was established.Jianlibao became the largest sponsor of the National Games that year and became famous. In 1991, Jianlibao established a branch in the United States to promote Jianlibao beverages across the United States, and spent huge sums of money to purchase an entire floor of the Empire State Building in New York.

In 1994, Jianlibao celebrated its 10th anniversary grandly, with product sales exceeding 1.8 billion yuan, ranking first in the national beverage and brewing industry. In 1997, the 38-storey Guangzhou Jianlibao Building was completed, Jianlibao headquarters moved to Guangzhou, and product sales exceeded 5 billion yuan. In April, Jianlibao was rated as one of the first batch of "China Famous Trademarks" by the State Administration for Industry and Commerce. In August, the China Beverage Association released industry data, and Jianlibao ranked first in terms of output, total output value, sales revenue, and tax and profit.

In the autumn of 1997, Jianlibao’s plan to list on the Hong Kong Stock Exchange was about to be approved. The Sanshui City Government refused to approve the purchase of the original H shares by the management team on the grounds that “they did not have a Hong Kong temporary residence permit, so they were not allowed to purchase the original H shares.” In anger, he gave up listing. In 1999, Li Jingwei proposed a plan to implement an employee shareholding cooperative system within the company. The management would raise 450 million yuan to buy the shares held by the government, but the plan was rejected by the government.

In 2001, Jianlibao's operating performance fell to 3.1 billion yuan, and the profits and taxes paid to the government also dropped from 100 million yuan to about 20 million yuan. In July, the Sanshui Municipal Government held a joint meeting on the transformation of Jianlibao. Ninety percent of the participating officials advocated selling Jianlibao, but it must not be sold to Li Jingwei's team. On January 15, 2002, the Sanshui Municipal Government transferred 75% of Jianlibao's shares to Zhejiang State Investment Corporation at a price of 338 million yuan, and 28-year-old Zhang Hai became the chairman of the group.

In May 2002, Jianlibao's new product "Fifth Season" was officially launched. In October 2002, the Guangdong Provincial People's Congress dismissed Li Jingwei's qualification as a deputy to the National People's Congress on charges of corruption. In November 2002, Jianlibao Group acquired Henan Baofeng Liquor Industry. In December, "Jianlibao Football Club" was established. In March 2003, Jianlibao Group invested 200 million yuan to launch three series of new products including "Bangguoqi". In August 2004, due to poor business performance, Zhang Hai was removed from the position of chairman and president of Jianlibao Group, and Zhu Weisha was appointed president.

In October 2004, Taiwan's Uni-President Group offered to acquire Jianlibao for US$100 million, but was unsuccessfully attacked by distributors. In November 2004, Zhang Hai's team transferred the shares to Li Zhida, but the Sanshui District government strongly intervened as a minority shareholder, and the transfer failed. On December 7, 2004, the Sanshui District Government came forward to lead Jianlibao to resume production. Li Jingwei, who was punished for "double regulations", appeared in a wheelchair in the auditorium of Jianlibao Group where the general staff meeting was being held.

In March 2005, Zhang Hai was criminally detained in Guangzhou. In February 2007, the Intermediate People's Court of Foshan City sentenced him to 15 years in prison for the crime of embezzlement and misappropriation of funds. In 2007, Taiwan Uni-President Group became the owner of Jianlibao.