In 1991, with a team of only about 100 employees, Wahaha merged with Hangzhou Canned-Food Factory. The latter had about 2,000 employees then. The cost was 80 million RMB. Following the merge, Wahaha Food Group Co., Ltd. was established. The new company commenced to make profit, though the canned-food factory as its predecessor had posted an operating loss of 40 million RMB just three months prior. By the end of 1991, the revenue broke through a threshold of 100 million RMB for the first time, reaching 217 million RMB. Wahaha has turned into a large enterprise as a result.