Hz info:On October 14, 2025, LB Group Co., Ltd. announced that its subsidiary, Yunnan Metallurgical Xinli Titanium Industry Co., Ltd., has filed a lawsuit with the Yunnan Provincial High People's Court over the alleged infringement of technological secrets related to chloride-process titanium dioxide production. The case has been accepted for filing.

According to the announcement, the total claim amounts to RMB 1.3105 billion, comprising RMB 1.3005 billion in provisional economic losses and RMB 10 million for litigation expenses. The plaintiffs include Yunnan Xinli and its two technical partners – Titanium Kang Technology Consulting Co., Ltd. and Titanium Kang Weilan & Partners Management Consulting Co., Ltd. The defendants are former executives of Yunnan Xinli, including Liu Jianliang, Jiang Shu'an, and Zhao Zequan, as well as Hebei Yanshan Iron & Steel Group Co., Ltd.

The case centers on the construction and production technology of Yunnan Xinli's large-scale chloride-process titanium dioxide production line, which was introduced and protected as confidential information. According to the announcement, the defendants Liu, Jiang, and Zhao held key leadership and technical positions at Yunnan Xinli between 2007 and 2019. Liu Jianliang previously served as the legal representative and chairman of Yunnan Xinli until June 21, 2019, and was also the head of a Yunnan provincial-level technology innovation team for chloride-process titanium dioxide. The announcement states that in the second half of 2019, after Jiang Shu'an and Zhao Zequan joined a company affiliated with Hebei Yanshan Steel, they allegedly used the technological secrets from their former company to plan, design, and construct a chloride-process titanium dioxide production line for their new employer.

It is noteworthy that Yunnan Xinli underwent a significant ownership change in 2019. On April 18 of that year, Yunnan Metallurgical Group Co., Ltd. publicly listed for transfer its 68.1% equity stake in Yunnan Xinli and related creditor's rights on the Beijing Equity Exchange. LB Group subsequently announced its intention to bid on May 13 and successfully acquired the assets at the reserve price of RMB 829 million on May 27, with the equity portion priced at RMB 1 and the creditor's rights at RMB 828.99 million. Following this acquisition, LB Group became the controlling shareholder of Yunnan Xinli and, through a business registration change on July 2, increased its stake from 68.10% to 98.39%. During this period of ownership change, Liu Jianliang transitioned in June 2019 to become the Party Committee Secretary, Director, and General Manager of Yunnan Metallurgical Group Investment Co., Ltd.

After gaining control, LB Group added sponge titanium production capacity through Yunnan Xinli, further integrating its industrial chain from titanium concentrate to titanium alloy. LB Group continued to acquire minority shareholdings, and by October 2025, its stake had reached approximately 99.58%. With LB Group's ongoing investment, Yunnan Xinli's 200,000-ton chloride-process titanium dioxide project commenced operation in 2023, establishing the company as a significant enterprise in Yunnan's titanium dioxide industry.

As the other party involved in the case, Hebei Yanshan Iron & Steel Group Co., Ltd. is advancing a 1-million-ton-per-year chloride-process titanium dioxide project through its subsidiary, Hebei Jicheng New Material Co., Ltd. With a total investment of RMB 16 billion, the project is located in the Nanpu Economic Development Zone of Caofeidian, Tangshan, Hebei, and represents a strategic shift for Hebei Yanshan Steel from traditional steel production to the chemical new materials sector. Reports indicate that the project utilizes world-class sub-nano-grade chloride-process titanium dioxide technology, characterized by short production cycles and continuous operation.

The project was launched as a key Hebei provincial project in March 2020. According to the plan, it will be constructed in three phases. The first phase, with an investment of RMB 3.785 billion, includes two production lines with an annual capacity of 80,000 tons each, supported by facilities producing 200,000 tons of titanium slag and 160,000 tons of synthetic rutile per year. In February 2024, significant progress was made in the first phase: the front-end 160,000-ton high-titanium slag and synthetic rutile工序 commenced operation, providing raw material support for titanium dioxide production, while the main 320,000-ton chloride-process titanium dioxide facility entered the equipment installation stage. Currently, the front-end raw material preparation环节 is operating steadily, whereas the main titanium dioxide production line remains under equipment installation and has not yet begun trial production.

The second phase is planned with an investment of RMB 5.236 billion, adding four new production lines, each with an annual capacity of 80,000 tons of chloride-process titanium dioxide, along with supporting facilities for 200,000 tons of titanium slag, 160,000 tons of synthetic rutile, and a 5.544-million-ton high-salinity wastewater comprehensive utilization line. The full operation of the first phase is expected to generate annual sales revenue of RMB 3.5 billion, tax and profit contributions of RMB 564 million, and create 1,052 new jobs. Timelines for the second and third phases have not been officially announced. It is reported that upon full completion, Hebei Yanshan Steel's chloride-process titanium dioxide is projected to capture over 50% of the domestic market share.

The case had previously entered criminal proceedings. In 2022, Yunnan Xinli filed a criminal complaint with the Lufeng Public Security Bureau regarding the alleged technological secret infringement, leading to a case registration. On May 15, 2025, the Chuxiong Yi Autonomous Prefecture Intermediate People's Court in Yunnan held a trial for Liu Jianliang, Jiang Shu'an, and Zhao Zequan on charges of suspected trade secret infringement; a verdict has not yet been reached.

Notably, in May 2025, Hebei Jicheng New Material Co., Ltd. preemptively filed a lawsuit with the Hebei Xiongan New Area Intermediate People's Court, seeking a "declaration of non-infringement of intellectual property rights" and naming Yunnan Xinli as the defendant. This case was heard on June 26, 2025, and remains pending.

Thus, the two parties have entered a phase of mutual litigation. In the civil lawsuit, Yunnan Xinli has submitted six claims, including requests for the defendants to immediately cease using the relevant technological secrets, destroy carriers containing the secrets, publish apologies in designated media, and bear compensation for economic losses and litigation expenses.