AsianFin -- Zhejiang Wahaha Beverage Co., Ltd.’s bottled water division has undergone significant adjustments, The Paper reported on Sunday, citing sources familiar with the matter.

Two additional insiders confirmed these developments to reporters. According to the sources, at the end of 2024, Wahaha Group Chairwoman Zong Fuli requested that the sales business of Zhejiang Wahaha’s bottled water be transferred to Hangzhou Xun’er Chengtong Trading Co., Ltd. The plan was formally implemented on March 25, 2025. By April 2025, distributors were instructed to place orders with Hangzhou Xun’er Chengtong Trading without any prior sales agreements, and shipments, invoicing, and the practical transfer of business were completed.

The insiders further noted that since April 2025, Zhejiang Wahaha Beverage Co., Ltd. no longer holds sales rights for its bottled water products. Instead, it now operates as a contract manufacturer for Hangzhou Xun’er Chengtong Trading. The trading company set a processing fee of 2.75 RMB per barrel, substantially lower than previous arrangements, causing a significant decline in Zhejiang Wahaha’s profits.