Move over Mukesh Ambani, your two-year reign as the richest person in Asia is over. And no, Jack Ma, you have not claimed that title again. There's a brand new richest person in Asia for 2021 and it's China's bottled water billionaire Zhong Shanshan. His net worth grew by more than $70 billion in 2020 to $77.8 billion. But Ambani shouldn't worry too much, he's still the richest person in India with a net worth of $76 billion. Meanwhile, Jack Ma has a few things to worry about besides losing the title of the richest in Asia. Mainly, what's going to happen to his $56 billion net worth now that the Chinese government is targeting him and his empire.
Zhong Shanshan's rise to riches is nothing short of remarkable. He has two primary income streams: Nongfu Spring bottled water, which generated $3.5 billion in revenue in 2019, and Beijing Wantai Biological Pharmacy Enterprise, which focuses on vaccines and hepatitis testing, earning $171 million in the same year. Both companies went public in 2020, with Nongfu Spring's $1.1 billion IPO in Hong Kong propelling Shanshan to become the third richest person in China almost overnight. His rapid ascent in wealth is a testament to his strategic business acumen and the booming market for health-related products.
Shanshan is often referred to as the "Lone Wolf" because he prefers to stay out of politics and business groups, rarely speaking to the media or making public appearances. Born in Hangzhou, China in 1954 during the Cultural Revolution, he faced significant challenges early in life. He dropped out of elementary school and later attended the Open University of China. Before founding his companies, he worked as a newspaper reporter, in construction, and as a beverage salesman in the 1980s, showcasing his diverse experiences that shaped his entrepreneurial journey.
Biography of Zhong Shanshan
| Attribute | Details |
|---|---|
| Name | Zhong Shanshan |
| Birth Year | 1954 |
| Birthplace | Hangzhou, China |
| Net Worth | $77.8 billion (2021) |
| Companies | Nongfu Spring, Beijing Wantai Biological Pharmacy Enterprise |
| Education | Open University of China |
| Ownership | 84% of Nongfu Spring, 75% of Beijing Wantai Biological Pharmacy Enterprise |
Key Business Ventures
Nongfu Spring was founded in 1996 at Qiandai Lake in the Zhanjiang province, which is known for its clean and abundant water sources. The company has built a strong brand with a well-known advertising campaign and the tagline "Tastes a bit sweet." This branding differentiates it from competitors by promoting the natural mineral content of its water, distinguishing it from the purified water offered by other companies. Additionally, at 65 years old, Zhong owns 84% of Nongfu Spring, which has expanded into flavored water, tea, and juice since its inception.
Through strategic growth and acquisitions, Nongfu Spring has emerged as the largest bottled water producer in China and ranks among the top three in the bottled juice and tea market. With a market value of $48 billion, it stands as a regional leader when compared to global giants like Coca-Cola and Pepsi, which have market caps of $249 billion and $192 billion, respectively. This impressive valuation highlights the demand for quality bottled beverages in the Chinese market.
Shanshan's other major venture, Beijing Wantai Biological Pharmacy Enterprise, specializes in COVID-19 test kits. The company's IPO in April on the Shanghai Stock Exchange further solidified his financial success. Owning 75% of this company, which is valued at around $9.4 billion, has significantly contributed to his wealth and influence in the health sector, especially during the ongoing global pandemic.
What You Will Learn
Key Takeaways
- Zhong Shanshan's rise to wealth and the dynamics of his two major companies.
- The impact of strategic IPOs on personal wealth in the business landscape.
- The significance of branding in the bottled water industry.
- Understanding the health sector's growth during the pandemic and its economic implications.
