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What do you think of those anonymous accounts on Weibo?
Xiucai80 (a famous blogger): Fake! Those accounts are set up by users who want viral hits. Wanda: I don’t need to prove whether those accounts are fake or not, but I firmly believe our family will be getting much more support than hate from the public right now.
What do you think about China’s dairy industry?
Wanda: We’re not a big player in this market, but I’m sure we’ll participate in it with our strength and expertise. We chose to invest in Maris because while many investors are interested in the market we’re going into, few of them have any real expertise or manufacturing know-how on how to make a profitable business out of this product. The entry barrier is really high. It’s just like when we got into soy sauce production – there were already tens of factories already producing it at that time, but only six years later did TINGZHI emerge as the leader after having separated itself from the pack.
What would you say to those who are still skeptical of Wanda’s business activities?
Is there any way we can earn your trust back? Luo Yonghao: To be honest, I don’t know how to convince them that our company is not fake. All I have is my reputation and principles. As a chairman of the board of directors of Wanda Group and as someone with a significant stake in Wanglaoji, I will never let this kind of thing happen again.
How did you choose Xiucai80 to host this Q&A session?
Wanda: We chose Xiucai80 because he is an independent media figure who doesn’t have any affiliations with the government or anyone else for that matter. We’ve known him for quite some time before this incident. His family has also stayed at one of our resort hotels in France, and his wife is a big fan of the late Chairman Mao Zedong — just like our chairman here.
Will Luo Yonghao step down as chairman?
Wanda: It’s still too early to tell. He may or may not do so. I’ll leave it up to him to decide when he feels ready to make such a decision. The most important thing right now is that he feels consoled by the warm support from family and friends so that he can recover quickly and then resume his leadership role within the company again.
It’s still too early to talk about the future, but I can confirm that he will remain our chairman for the time being.
What is the real reason behind Wanglaoji’s scandal?
Wanda: The three main reasons are human error, bad luck, and fake products from competitors. The woman who had her baby with the help of Wanglaoji’s fake reports is also an employee at one of our local subsidiaries. She was let go right after this incident came to light.
What should we watch out for as we consume dairy products?
Wanda: Before you buy a product, always check its manufacturing date first to make sure it hasn’t expired yet. Other than that, I don’t think there’s anything else you should worry about. Our company has never sold any substandard products in the past, so I believe no such problem will crop up again in the future either. As a parent myself, I feel outraged by this incident and it pains me more than anyone else that this happened to my child.
ONE: Will you give compensation to the woman who had her baby using Wanglaoji’s false reports?
Wanda: Yes, of course! As soon as possible! Our company is keeping in close contact with both the pregnant woman and her family. We’re waiting for them to come back home from their current trip first before we start discussing what kind of “compensation” they want us to give.
Will this incident affect your future plans for overseas acquisitions?
Luo Yonghao: Not at all. The scandal has nothing to do with our international presence or business model whatsoever; it was purely caused by a personnel problem within one of our local subsidiaries, so we will treat it is as such. Our overseas strategy will proceed as planned.
Can you explain exactly how many babies have been born with the help of Wanglaoji’s fake pregnancy reports?
Wanda: According to our internal data, this number should only be in the hundreds, and not over 1,000 as media outlets reported — and even that would only involve a few local subsidiaries. We’re now working with third-party agencies to get a clearer picture of the true volume of such incidents right now and will announce more details once we finish our investigation.
ONE: What kind of punishment will you mete out to those responsible for this incident? Wanda: I think it’s too early for us to discuss any concrete punishments just yet. Everyone just needs time to calm down and reflect on what has happened first. We need time to understand it better too. I can assure you that we will mete out severe punishments as necessary, whether they are criminal or administrative; we will use the full extent of the law in dealing with those responsible for this incident.
ONE: Didn’t you have a period during your contract negotiations where you were worried about how much money Yao Ming would make if he signed with Wanda?
Are you only worried about profit now once things have gone sour? Luo Yonghao: This is completely unrelated! These two things just so happen to coincide right now, but there is no relation whatsoever between them. It’s like saying that had Yao Ming joined the Houston Rockets, our company wouldn’t have sustained as many damages from the scandal, and that once Yao Ming joined the Shanghai Sharks, we’d be happy to pay him more money. These two things are separate processes and shouldn’t be linked in any way at all.
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Luo Yonghao: This is also a very complicated issue because of too many factors involved. So far, we’ve already frozen admission fees for those who want to remain indoors until 5 pm today (October 9) — but I don’t think this will last beyond tomorrow morning; we can only afford to do this for one more day since no one knows when this situation will end yet. Our company will also cover all living and travel expenses for those who remain inside the theme parks in Shanghai.
Luo Yonghao: I spent more than 20 years building up Wanglaoji just like my own baby, and now I have failed my child. So no matter what happens next, it is impossible for me to return to this role right away. It doesn’t make sense that a father would rush back into action at a moment like this after his business has been harshly criticized by everyone. Whoever leads Wanglaoji from here on out must be someone of unquestioned integrity whom we can all trust again. I have full confidence in our management team and my colleagues in this endeavor.