![[Hong Kong News]Nongfu Spring sends a tough lawyer’s letter to fight the Consumer Council? Not coming! Prince Ali puts the family office on hold indefinitely | Consumer Council | Nongfu Spring | Baishuishan | Bromate | Zhong Shanshan | Wahaha | Family Office | Dubai | Prince Ali | Office Building | Vacancy Rate | Commission | Rent](https://img.soundofhope.org/2024-07/nongfu-1721155941200.jpeg "[Hong Kong News]Nongfu Spring sends a tough lawyer’s letter to fight the Consumer Council? Not coming! Prince Ali puts the family office on hold indefinitely | Consumer Council | Nongfu Spring | Baishuishan | Bromate | Zhong Shanshan | Wahaha | Family Office | Dubai | Prince Ali | Office Building | Vacancy Rate | Commission | Rent")
Hong Kong’s Consumer Council recently released the results of a test on 30 bottled waters on the market. It was found that two types of bottled water from mainland China – Nongfu Spring and Baisui Mountain – contained levels of Bromate that were as high as the upper limit of EU standards. Excessive intake of Bromate may cause nausea and abdominal pain.
Nongfu Spring sent a lawyer’s letter to the Consumer Council, criticizing the report as misleading, unscientific and irresponsible. The company demanded immediate clarification and apology, threatening further action if these were not taken.
Nongfu Spring’s lawyer’s letter mainly argued that the Consumer Council misclassified Nongfu Spring’s product “natural water” as “natural mineral water” and evaluated it according to the EU’s “natural mineral water” standards instead of the EU’s “drinking water” safety standards. The letter claims that Nongfu Spring’s drinking water products strictly comply with mainland China and Hong Kong production standards, accusing the Consumer Council of applying third-party standards that should not be used for products sold in Hong Kong.
The letter also criticized the report’s assessment language as “deliberately misleading”. It stated that any standard is either “qualified” or “unqualified”. The Consumer Council’s use of the terms “upper limit” or “lower limit” in the report might mislead consumers regarding the product’s safety.
Nongfu Spring also questioned the Consumer Council’s statement that “multiple use” and excessive consumption of Bromate would cause nausea, etc. It argued that the Council failed to define “too much” and labeled their comments as “irresponsible” and “unprofessional”.
Nongfu Spring claims that the Consumer Council’s behavior has had a significant negative impact on the company. It demands immediate clarification, apology and remedial actions to address the impact, threatening further action if the Council fails to meet these demands.
Nongfu Spring’s Executive Director Han Linyou, accompanied by his lawyer, met with relevant personnel at the Consumer Council’s North Point Headquarters.
The Consumer Council responded by confirming receipt of Nongfu Spring’s letter and stated they are currently studying and following up on it.
The Consumer Council reiterated that the information released in its monthly articles, press releases and other communication documents clearly stated that all 30 tested samples did not contain any harmful substances exceeding the relevant WHO guideline values, and all samples were safe to drink. They emphasize that their report focused on the cost-effectiveness of each sample and the environmental impact of bottled water’s plastic bottles, not on product safety.
Established in 1996, Nongfu Spring is a well-known drinking water brand in mainland China. Zhong Shanshan has been China’s richest man for four consecutive years since 2021.
Nongfu Spring has long maintained that its products are sourced from natural water from Qiandao Lake in Zhejiang Province, claiming never to use “city tap water.” However, the quality of their products has been questioned multiple times.
As early as 2009, mainland media reported that the water quality of Qiandao Lake was deteriorating. A report to the China National Environmental Monitoring Center also stated that the water quality was “not suitable for drinking, but only for industrial use”. Nongfu Spring criticized this report as misleading and insisted that the lake water quality remained excellent.
In 2013, the then mainland media Beijing Times published a comprehensive report on Nongfu Spring, alleging that the company’s water source was seriously polluted and full of garbage, causing serious water quality issues, “not as good as tap water”. There were also reports of unknown floating objects in the company’s products.
However, Nongfu Spring vehemently denied these trade suspicions. After several years of entanglements with the case, with the reporter who published the news resigning and the Beijing Times ceasing publication, the case was eventually withdrawn and dismissed.
Recently, Nongfu Spring has faced more negative publicity. First, it was caught in the “Wahaha” incident leading to losses in sales and stock price. Currently, Nongfu Spring has also launched a price war in mainland China, facing criticism for becoming a “troublemaker” in the purified water market, “potentially causing market confusion and damaging the brand image.”
This week, following the Consumer Council’s report was released, Nongfu Spring’s stock price fell by nearly 3% on the 16th, closing at 32.5 Yuan. From its high of 48.8 Yuan in May this year, the stock has fallen by 33%. According to the Forbes real-time rich list, Zhong Shanshan retained his position as China’s richest man with US$51 billion, but his wealth decreased by 5%, or US$2.7 billion, from the previous day.
Prince Ali’s Family Office Indefinitely Suspended
Prince Ali (Sheikh Ali Rashed Ali Saeed Al Maktoum), a member of the Dubai royal family, was originally planning to open a Family Office in Hong Kong. However, according to Hong Kong media, Prince Ali has no plans to open a family office in Hong Kong in the “foreseeable future”.
The South China Morning Post quoted Prince Ali’s Dubai Office of Protocol and Security, stating that Prince Ali will not be opening a family office in Hong Kong in the “foreseeable future”. The statement emphasized that Prince Ali maintains a strong interest in exploring business investments and opportunities in Hong Kong, Mainland China and Southeast Asia. They also confirmed that the office will be working to strengthen ties with these regions through establishing business partnerships.
The representative declined to provide any explanation for the change in Prince Ali’s decision to open a Family Office in Hong Kong. The statement only mentioned that all family office operations must meet the highest quality standards.
Prince Ali, who hails from Dubai, had earlier announced his plans to open a $500 million Family Office in Hong Kong. The opening ceremony was initially scheduled for March 28th but was postponed to the end of May due to Prince Ali needing to return urgently to Dubai.
Later, media reports revealed that Prince Ali was also a singer, and his office website and LinkedIn profile were temporarily shut down before being “revived”. The removal of the family office sign also sparked speculation regarding the identity of the prince.
Prince Ali’s Family Office Chief Executive Eleanor Mak told the South China Morning Post in May that Prince Ali would return to Hong Kong on May 31st as planned. However, Marco Carenzi, head of protocol and security at the Dubai agency, later issued a statement saying that Mail Yirui lacked the authority to represent Prince Ali in making such a statement. Carenzi requested that all parties refrain from releasing further information until official communication with the prince’s office had been established.
On the 16th, our reporter accessed the official website of Alibaba office and discovered that it was still displaying a “under maintenance” notice.
Hong Kong’s office building market continues to be sluggish. Some real estate developers have been reluctant to raise their commission in order to rent out their commercial buildings.
Bloomberg quoted data from CBRE Group on the 16th, stating that Hong Kong’s office building vacancy rate, while at a record high, is expected to see an increase of approximately 709,000 square feet of new office buildings completed, equivalent to the area of nine football fields.
Reports indicate that the weakness in the real estate market has led to office building commission rates being extended to between 2 to 3 months’ worth of rent, with some even reaching 4 months. Several years ago, commission rates were only 1 month’s worth of rent. Real estate developers who have raised their commission rates include Cheung Kong Group, New World Development, Hongkong Land, etc.
Yan Huiping, Director of Corporate Client Services at Colliers Hong Kong, said that the last time similar rent increases were seen was during the SARS outbreak in 2003.
Last month, Colliers released its Hong Kong Office Building Tenant Survey 2024, revealing that office building tenants’ confidence in the business environment over the next 12 months has declined. Over 90% of tenants surveyed would consider paying a higher rent for office buildings. Nearly 30% of companies indicated they plan to reduce their office space this year.
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The most important means by which the Chinese Communist Party rules the people is deception. Maintaining large-scale broadcasts to China and continuously delivering the truth is to continuously inject hope into China. Voice of Hope sincerely invites you to join us in this effort. WelcomeClickLearn more.
Nongfu Spring Bottled Water Under Fire as Consumer Council Raises Bromate Concerns
Hong Kong’s Consumer Council recently released the results of a test on 30 bottled waters available in the market, highlighting that two brands from mainland China, Nongfu Spring and Baisui Mountain, contained detectable levels of bromate, reaching the upper limit of EU standards. Excessive intake of bromate can lead to nausea and abdominal pain. Nongfu Spring responded by sending a lawyer’s letter to the Consumer Council, criticizing the report as misleading, unscientific, and irresponsible, and demanding clarification and an immediate apology, threatening further action if these demands are not met.
Nongfu Spring Challenges Consumer Council Findings
Nongfu Spring’s lawyer’s letter centers on the Consumer Council’s misclassification of its product as “natural mineral water” instead of “natural water” and the subsequent application of EU standards for “natural mineral water” rather than EU “drinking water” safety standards. The letter asserts the company’s adherence to mainland China and Hong Kong’s production standards, accusing the Consumer Council of imposing third-party standards that are not applicable to products sold in Hong Kong.
The letter also criticizes the report’s evaluation language as “deliberately misleading,” arguing that any standard is either “qualified” or “unqualified.” It points to the Consumer Council’s use of “upper limit” and “lower limit” in the report as potentially misleading consumers regarding the product’s safety.
Nongfu Spring questions the Consumer Council’s claim of “multiple use” and excessive consumption of bromate leading to nausea, demanding clarification of the definition of “too much” and deeming the statement “irresponsible” and “unprofessional.”
Nongfu Spring claims the Consumer Council’s actions have significantly damaged the company’s reputation and demands immediate clarification, apologies, and efforts to mitigate the impact. The Consumer Council, in response, confirmed receipt of Nongfu Spring’s letter and stated it is currently being studied and followed up.
Consumer Council: Focus on Cost-Effectiveness and Environmental Impact
The Consumer Council reiterates that its report, which includes monthly articles, press releases, and other communication documents, clearly states that all 30 tested samples did not contain harmful substances exceeding relevant WHO guideline values. The Council emphasizes that all samples were deemed safe for consumption and the report primarily focused on cost-effectiveness and the environmental impact of bottled water plastic bottles, not the safety of the product itself.
Nongfu Spring’s Troubled History and Recent Challenges
Founded in 1996, Nongfu Spring is a well-known drinking water brand in mainland China. Zhong Shanshan, the company’s founder, has consistently been ranked as China’s richest man for four consecutive years since 2021. The company has long claimed that its water source originates from the natural water of Qiandao Lake in Zhejiang Province, emphasizing that it never utilizes “city tap water.” However, the quality of its products has been repeatedly questioned.
In 2009, mainland media reported the deteriorating water quality of Qiandao Lake. A report to the China National Environmental Monitoring Center even stated that the water quality was “not suitable for drinking, only for industrial use.” Nongfu Spring responded by criticizing the report as misleading and insisting on the lake’s excellent water quality.
In 2013, the Beijing Times, a mainland media outlet, produced an extensive report alleging that Nongfu Spring’s water source was severely polluted with garbage, leading to serious water quality problems, claiming the company’s water was “not as good as tap water.” Additional reports surfaced regarding unknown floating objects in the company’s products.
Nongfu Spring steadfastly denied the allegations of contamination. The case ultimately fell through due to the resignation of the reporting journalist and the discontinuation of the Beijing Times publication, leading to its withdrawal and dismissal.
Recently, Nongfu Spring has faced further negative news. First, the company was caught in the “Wahaha” incident, resulting in losses in both sales and stock price. Presently, Nongfu Spring has launched a price war within mainland China, drawing criticism for becoming a “troublemaker” within the purified water market, potentially causing market confusion and damaging its brand image.
Following the Consumer Council report’s release this week, Nongfu Spring’s stock price experienced a near 3% decline on the 16th, closing at 32.5 yuan. This represents a 33% drop from its high of 48.8 yuan in May of this year. According to the Forbes real-time rich list, Zhong Shanshan, despite maintaining his position as China’s richest man with US$51 billion, saw his wealth decrease by 5%, or US$2.7 billion, from the previous day.
Prince Ali’s Family Office in Hong Kong Suspended Indefinitely
Prince Ali (Sheikh Ali Rashed Ali Saeed Al Maktoum) from Dubai’s royal family, who initially planned to establish a family office in Hong Kong, has shifted course. Hong Kong media revealed that Prince Ali’s family office will not be opening in Hong Kong in the “foreseeable future.” The South China Morning Post, citing Prince Ali’s office in Dubai, confirmed this news. The office stated that while Prince Ali still retains interest in exploring business investments and opportunities in Hong Kong, mainland China, and Southeast Asia, the focus will be on strengthening ties through business partnerships within these regions.
The statement did not provide a reason for the change in plans. Prince Ali emphasizes that his family office operations must maintain the highest quality standards.
Previously, Prince Ali announced plans to open a $500 million family office in Hong Kong, scheduled to open on March 28. However, the opening ceremony was delayed to the end of May following Prince Ali indicated an urgent need to return to Dubai.
Media inquiries have uncovered Prince Ali’s past as a singer and raised questions regarding his identity due to the temporary closure and subsequent “revival” of his office website and LinkedIn profile. The removal of the family office sign also fueled speculation.
Eleanor Mak, Chief Executive of Prince Ali’s family office, informed the South China Morning Post in May that Prince Ali would return to Hong Kong on May 31 as planned. However, Marco Carenzi, head of protocol and security at Prince Ali’s Dubai office, later contradicted this statement, stating that Mai Yirui lacked the authority to represent Prince Ali. He urged all parties to refrain from releasing further information until official communication with the prince’s office.
As of the 16th, the Alibaba office official website remains under maintenance.
Hong Kong’s Sluggish Office Market Continues
Hong Kong’s office building market shows ongoing sluggishness, with some real estate developers hesitant to increase commission rates in an attempt to attract tenants.
Bloomberg, referencing data from CBRE Group, reported that Hong Kong’s office building vacancy rate remains high. However, approximately 709,000 square feet of new office buildings are expected to be completed, equivalent to the area of nine football fields.
The report highlights the weakness in the real estate market, with commission rates reaching 2 to 3 months of rent in some instances, with some landlords offering even 4 months. This contrasts with previous years when commission rates were typically just 1 month of rent. Among developers offering these higher commission rates are Cheung Kong Group, New World Development, and Hongkong Land.
Yan Huiping, Corporate Client Services Director at Colliers Hong Kong, notes that the last time similar rent hikes were observed was during the SARS outbreak in 2003.
Colliers’ Hong Kong Office Building Tenant Survey 2024 revealed a decline in tenants’ confidence in the business environment over the next 12 months. More than 90% of surveyed tenants will reduce their office space over the next year. Nearly 30% of these companies stated their intentions to reduce office space this year.
Addressing the greatest threat of our time Help end the CCP
The most important means by which the Chinese Communist Party rules the people is deception. Maintaining large-scale broadcasts to China and continuously delivering the truth is to continuously inject hope into China. Voice of Hope sincerely invites you to join us in this effort. WelcomeClickLearn more.
