In April 2007, ZongQinghou, originator of Hangzhou Wahaha Group and executive of all its joint endeavors shaped with Danone, reveals insights about Danone's arrangement to purchase a 51% enthusiasm for Wahaha's non-joint endeavor backups and related elements that are possessed or oversaw by Zong's family intrigues. The revelation of what should be a prized formula starts off a progression of open allegations, trailed by claims by every accomplice against the other. From one perspective, Danone angrily answers that its takeover arrangement is grounded in a rupture of its contractual enthusiasm by Zong. Danone claims that Zong has been making a large number of the same items as the joint endeavors have under the same "Wahaha" trademark through a parallel system of creation offices that he or his family own or oversee. He likewise utilizes the joint wanders' conveyance channels for offering them. Then again, Zong contends that the "Wahaha" trademark has never formally been exchanged to the joint ventures and whines of Danone's absence of exertion all through. He additionally blames Danone for endeavoring to restraining infrastructures China's drink showcase by driving out national brands like Wahaha, which are a piece of China's social legacy and in this manner are the complete self of Chinese individuals. As a method for challenging, Zong leaves from his post as administrator at the joint endeavors. Danone then names Emmanuel Faber, administrator of Danone Asia Pacific, as the new director, yet the authenticity of this arrangement is denied by Wahaha. This case represents the contentions in premiums, practices and social values that outside financial specialists may experience with their nearby accomplices while working together in China. It likewise looks at the flow of income sharing, control rights and contract implementation in the middle of outside and local accomplices.
· PRICO'S PRO FORMA INCOME STATEMENT: MARKETING ONLY
· CYBERLAB'S PRO FORMA INCOME STATEMENT: MANUFACTURING ONLY
2. CyberLab Stake
3. Marketing Rights
4. The Patent