Longbai Group started a lawsuit

October 14th, Longbai Group (002601.SZ), a listed titanium dioxide company, announced that its controlling subsidiary, Yunnan XinLi,

had started a lawsuit with the Yunnan Provincial High People's Court alleging infringement of its chloride-process titanium dioxide technology secrets.

The defendants are former executives Liu Jianliang, Jiang Shuan, Zhao Zequan, and Hebei Yanshan Iron and Steel Group Co., Ltd.

The lawsuit seeks compensation totaling 1.311 billion RMB for economic losses and legal defense expenses.

Whether Longbai Group can win the lawsuit ? There are still some questions here:

1. Determination of the technical secrets. The court will need to further verify whether the technology is publicly known or

publicly used.

2. Former employees Liu Jianliang, Jiang Shuan, and Zhao Zequan were exposed to the technical secrets while serving in key

positions at Yunnan Xinli from 2007 to 2019. They only participated in the construction of the Hebei Yanshan Iron and Steel

chloride-process titanium dioxide project after leaving the XinLi company in 2019. Whether this constitutes infringement

requires a comprehensive assessment based on the technology transfer path, timing, and subjective intent.