Jianlibao Group

Jianlibao Group (Chinese: 健力宝集团) is a soft drink producer based in Foshan, Guangdong, China, established in 1984. In the 1990s, the Jianlibao drink was one of the best sellers in China, at par with Coca-Cola and Pepsi. However, poor management and stiff competition led to a total debt of more than 1 billion Renminbi yuan (US$121 million) in 2005. Under Zhanghai, Jianlibao was the sponsor of the Shenzhen Jianlibao football club between 2002 and 2005, who won the Chinese Super League title in 2004. The company also established the Jianlibao Youth Football Team in 1992, sending young athletes to Brazil for training in 1993.

Jianlibao Group was established in 1984 in Foshan, Guangdong, and developed as a producer of soft drinks. The business became associated with the Jianlibao beverage, which achieved substantial recognition in China during the 1990s. At its peak, the product was described as one of the country’s best sellers and was regarded as competitive with the domestic presence of Coca-Cola and Pepsi. This success made Jianlibao one of the more prominent Chinese beverage brands of the period. The group’s early development was linked to Li Jingwei, who had been director of Foshan Sanshui Distillery from 1984. The available material does not provide a complete account of the company’s original ownership structure, product formulation, distribution system, or manufacturing network, so those details are not included here. Jianlibao pursued visibility through sports as well as beverage sales. In 1992, the company and the Chinese Football Association signed an agreement concerning the establishment of the Jianlibao Youth Football Team. Young athletes born in 1977 and 1978 were selected through trials in Tianjin and Dalian. More than 80 candidates proceeded to a further selection stage in Beijing; over 40 then entered winter training and final selection in Wuzhou. A final group of 22 players travelled from Beijing to São Paulo, Brazil, in November 1993. The program represented an early and notable example of a Chinese commercial brand supporting an organized youth football development project with an overseas training component. The group also entered professional football sponsorship. Under Zhang Hai, who was chairman and president from 2002 to 2004, Jianlibao sponsored Shenzhen Jianlibao from 2002 through 2005. The club won the Chinese Super League in 2004, strengthening the association between the beverage group and elite Chinese football during the sponsorship period. The company’s fortunes subsequently declined. The reference material identifies poor management and strong competition as principal factors. In 2005, Jianlibao was reported to have total debt of more than 1 billion renminbi. That deterioration took place alongside major governance and legal controversies. Zhang Hai was arrested on March 24, 2005. In February 2007, he was sentenced by the Foshan Intermediate People’s Court to 15 years’ imprisonment for embezzlement and misappropriation of funds. The sentence was later reduced to 10 years on appeal in September 2008. He was released early in 2011 after issues concerning falsified materials related to claimed meritorious service, and the reference states that he subsequently fled abroad. Li Jingwei was sentenced on November 9, 2011, to 15 years’ imprisonment for embezzlement, with 150,000 yuan of personal property confiscated according to the cited material. He died from illness in Sanshui on April 22, 2013. The supplied sources do not establish whether Jianlibao Group remains active, how its ownership or management changed after the reported crisis, or what products and markets it currently serves. Its present corporate status is therefore unknown. Historically, the group is significant for the rapid rise of a Chinese soft-drink brand, its national-scale consumer recognition, its sports-development and football sponsorship activities, and the management and financial problems that undermined its position after its 1990s peak.

• 2005

  Debt crisis became public

  [1]Jianlibao Groupen.wikipedia.org

  The group was reported to have accumulated more than 1 billion renminbi in total debt amid management problems and competition.

• 2004

  Shenzhen Jianlibao won the Chinese Super League

  [1]Jianlibao Groupen.wikipedia.org

  The sponsored Shenzhen Jianlibao football club won the Chinese Super League title.

• 2002

  Shenzhen Jianlibao sponsorship began

  [1]Jianlibao Groupen.wikipedia.org

  Jianlibao began sponsoring Shenzhen Jianlibao during Zhang Hai’s period of leadership.

• 1993

  Youth team travelled to Brazil

  [1]Jianlibao Groupen.wikipedia.org

  The final 22 selected players travelled from Beijing to São Paulo for training after the youth-team selection process.

• 1992

  Youth football development agreement

  [1]Jianlibao Groupen.wikipedia.org

  Jianlibao Group and the Chinese Football Association agreed to put the Jianlibao Youth Football Team project into effect.

• 1984

  Jianlibao Group established

  [1]Jianlibao Groupen.wikipedia.org

  Jianlibao Group was established in Foshan, Guangdong, as a soft-drink producer.

A Chinese mass-market soft-drink producer whose flagship beverage became a nationally recognized domestic alternative to leading international cola and soft-drink brands.

• Soft drink

  Jianlibao beverage

  The flagship Jianlibao beverage was the product most closely associated with the group. It became one of China’s best-selling soft drinks during the 1990s and achieved a level of domestic recognition comparable with the leading international soft-drink brands then competing in China. The supplied material does not specify its complete product range, ingredients, packaging history, or current availability.

• 2011

  Li Jingwei conviction

  Li Jingwei was sentenced to 15 years for embezzlement, with personal property confiscated according to the cited reference.

  Source

• 2008

  Former Chairman Zhang Hai's Final Appeal Sentence Reduced to 10 Years for Embezzlement and Misappropriation of Funds

  In September 2008, the Guangdong High People's Court reduced the sentence of Zhang Hai, former chairman of Jianlibao Group, from 15 years at first instance to 10 years on final appeal. The case involved embezzlement and misappropriation of Jianlibao funds; the first-instance court found that he had embezzled more than 120.7 million yuan and misappropriated more than 86.44 million yuan.

  Source

• 2007

  Zhang Hai conviction

  Former chairman and president Zhang Hai was sentenced to 15 years for embezzlement and misappropriation of funds. The reference states that the sentence was reduced to 10 years on appeal in 2008.

  Source

• 2005

  Debt and management crisis

  Poor management and strong competition were associated with a deterioration in Jianlibao Group’s position. By 2005, the company was reported to have total debt exceeding 1 billion renminbi.

  Source

Read more

• 2002Shenzhen Jianlibao football sponsorship

  China

  Jianlibao sponsored the Shenzhen Jianlibao professional football club from 2002 to 2005, linking the beverage group to top-level Chinese football.

  Outcome. The club won the Chinese Super League title in 2004 during the sponsorship period.

  Source
• 1992Jianlibao Youth Football Team

  China · Brazil

  Jianlibao worked with the Chinese Football Association on a youth football project. Players were selected through regional and national trials, trained in China, and the final group travelled to Brazil in 1993.

  Outcome. The project created a branded youth football team and included overseas training in São Paulo. The supplied sources do not provide a complete account of its later sporting results.

  Source

• 2005

  Management and financial crisisOther

  Background

  The company faced intense soft-drink competition and was reported to have accumulated more than 1 billion renminbi in debt.

  Action taken

  The available reference records the crisis and the arrest of Zhang Hai but does not document a complete restructuring, sale, or insolvency process.

  Aftermath

  The group’s subsequent ownership, operating status, and financial outcome are not established by the supplied sources.

  Total reported debt. More than CNY 1 billion (2005)

  Source

• 2002

  Sponsor Shenzhen JianlibaoStrategy

  Background

  The group used professional football sponsorship to increase brand visibility during a period when Jianlibao remained a prominent Chinese beverage name.

  Action taken

  Jianlibao sponsored Shenzhen Jianlibao from 2002 to 2005.

  Aftermath

  The club won the Chinese Super League in 2004. The sponsorship later ended, while the company experienced a severe financial and governance crisis.

  Source

• 1992

  Support a national youth football programStrategy

  Background

  Jianlibao sought a prominent association with sport while building the visibility of its beverage brand in China.

  Action taken

  The group signed an agreement with the Chinese Football Association concerning the creation of the Jianlibao Youth Football Team and supported a selection and training pathway that culminated in travel to Brazil.

  Aftermath

  The program became a notable part of Jianlibao’s historical brand identity, although the supplied material does not document its full long-term results.

  Source

1. 1Jianlibao Groupen.wikipedia.org
2. 2Li Jingwei convictioncompanies.caixin.com
3. 3Li Jingwei convictionjingji.cntv.cn
4. 4Former Chairman Zhang Hai's Final Appeal Sentence Reduced to 10 Years for Embezzlement and Misappropriation of Fundschina.caixin.com