We supply the necessary technologies

The following video shows a TV news on Henan TV:

Source: Henan TC (https://www.hntv.tv/news/1/2055135699801423873)

English Transcript

Henan Radio and Television Station, Legal Channel, bringing you Henan Legal Report. On today’s show, we focus on the high-profile trade secret infringement case involving Lomon Billions (LB) Group’s core technology of CP TiO2 (Chloride-Process Titanium Dioxide).

In late April 2026, the Yunnan Higher People’s Court handed down the second-instance ruling in the criminal proceedings over the trade secret infringement case of Yunnan Metallurgical Xinli Titanium Industry Co., Ltd., a subsidiary of LB Group. The court dismissed the appeal and upheld the original verdict. Three former senior executives involved, namely Liu XX, Zhao XX and Jiang XX, were convicted of trade secret infringement. They were sentenced to fixed-term imprisonment ranging from 6 to 7 years respectively, with a total fine of 32 million yuan. Their illegal gains over 27 million yuan were also recovered. This final ruling took immediate effect. The trade secret that drove the three defendants to take desperate risks refers to “the production technology of large-scale boiling CP TiO2” and its relevant technical details.

In 2019, LB Group, a leading enterprise in the China TiO2 industry, acquired Yunnan Xinli Titanium Industry Co., Ltd. During the transition period of the acquisition handover, some people targeted the enterprise’s core assets opportunistically.

Liu Hongxing (Chairman of Xinli): “These three individuals were all core staff of Yunnan Xinli originally and mastered the company’s top confidential information. However, they arbitrarily copied and retained the core technical drawings. After leaving their posts, they sold these intangible assets to another company at a price of 30 million yuan plus a 3% profit share. “

After resigning from Yunnan Xinli, the three soon joined Hebei Yanshan Iron and Steel Group Co., Ltd. as “a technical team” and took the lead in constructing a CP TiO2 production line. The infringement was exposed two years later.

Jin Xinlu (Minister of Legal Affairs Department, LB Group): “In 2021, our staff retrieved an announcement online, which mentioned that they planned to build a 500,000-ton CP TiO2 production line. The aerial landscape drawing published in the announcement was almost identical to our factory layout after identification by our professional technicians, which immediately aroused our vigilance.”

LB Group dispatched experts to conduct multiple investigations in Hebei. A trivial detail accidentally discovered finally confirmed that the core asset—the production technology and process of CP TiO2 of LB Group—had been illegally stolen.

“There was a very small detail in the design drawings. There was a flawed design on one of our equipments that was overlooked and never put into actual use. Yet they copied it word for word. It’s just like copying someone else’s homework and even copying their name on it.”

It is worth noting that LB Group has invested billions of yuan over the years in technology procurement and independent R&D, and has successfully developed its flagship core CP TiO₂ production technology, which brings the LB Group an annual revenue of 5 billion yuan. The illegal theft of such core confidential information not only causes direct economic losses to the group, but also disrupts industrial order and intensifies vicious industrial competition. Filing a police report became the only option for LB Group.

“Enterprises invest massive human, material and financial resources in R&D to develop new products. Infringing enterprises enter the market at zero cost, engage in cut-throat price competition, and drive out legitimate innovators. This makes law-abiding enterprises dedicated to independent innovation struggle to survive. Who will dare to engage in technological innovation in the future?”

After two years of meticulous investigation by public security authorities, in August 2024 the case was prosecuted by the procuratorate of Chuxiong Yi Autonomous Prefecture, Yunnan Province. The procuratorate accused the defendants of obtaining the trade secrets of Yunnan Xinli by improper means, violating confidentiality obligations, and disclosing as well as using the trade secrets. Given the extremely serious circumstances, they should be held criminally liable in accordance with the law. One of the core disputes between the two sides was whether the production line and construction technology of large-scale boiling CP TiO2 constituted a legally protected trade secret of the right holder.

Zhang Zewu (Lawyer, Beijing Hengdu Guangzhou Law Firm): “Take Chashao, a Cantonese barbecued pork delicacy, as an example. Every restaurant has its own unique flavor, which stems from exclusive recipes. Such recipes are exactly the trade secrets of the restaurants.”

Zhao Bo (Industry Expert) : “This technology has an extremely high technical barrier, we call it as Know-How. As far as I know, some domestic TiO2 manufacturers have failed to fully digest such technology even after 20 years. Their production lines were completed but never put into operation simply because they could not break through the technical bottlenecks. ”

“The most crucial evidence we relied on was legally fixed by public security organs during the investigation stage, especially the appraisal reports and evaluation reports issued by professional institutions. These pieces of evidence directly proved that the technology meets the statutory constituent elements of a trade secret with confidentiality, secrecy management and economic value.”

In October 2025, the Intermediate People’s Court of Chuxiong Yi Autonomous Prefecture, Yunnan Province issued the first-instance judgment. The court confirmed that the three defendants committed the crime of trade secret infringement with clear facts and sufficient evidence. They were sentenced to 6 to 7 years in prison respectively, with a total fine of 32 million yuan and recovered illegal gains of over 27 million yuan. Dissatisfied with the verdict, the three defendants filed an appeal to the Yunnan Higher People’s Court. In late April 2026, the Yunnan Higher People’s Court made the final ruling, dismissing the appeal and upholding the original judgment.

Zhao Chunlin (Director, Henan Bolian Law Firm): “Such severe substantive sentences and hefty fines mean that the illegal cost of infringement has risen sharply. Infringers will not only face huge fines but also imprisonment. It can be said that national laws have given clear guidance to enterprises and sent a strong signal of systematic legal protection.”

The infringement facts confirmed in the criminal judgment will serve as a key cornerstone for subsequent civil claims. LB Group’s rights protection campaign is far from over. Targeting the 500k tons of production capacity built by Hebei Yanshan Iron and Steel and its subsidiaries using stolen technology, LB Group will file a civil lawsuit to demand cessation of infringement and compensation of 1.311 billion yuan.

“We are pursuing this lawsuit not only for economic compensation, but also to safeguard the future of the innovation ecosystem. We aim to ensure that law-abiding innovators do not suffer losses, and enable Chinese manufacturing to dare and be willing to pursue independent innovation.”

LB Group’s rights protection action is never merely an internal matter of a single enterprise. It is a precise crackdown on the typical vicious cut-throat competition model of stealing trade secrets for imitation and dumping at low prices. With severe criminal sentences and heavy fines, the case sends a clear signal: the state is rectifying the cut-throat development model with the sword of the law, drastically raising the cost of illegal acts, and resolutely curbing the phenomenon of bad money drives out good. Enterprise competition should rely on technological innovation for upward development, rather than trade secret theft for unethical gains. Only by protecting the innovation ecosystem can we consolidate the foundation of high-quality development for Chinese manufacturing.

As of April this year, the criminal case has concluded with the final judgment upholding the original verdict, while the civil lawsuit is still under trial by the Yunnan Higher People’s Court. Our program will continue to follow up on the progress of the case.

Ti-Cons and LB Group filed a lawsuit with the Yunnan Provincial Supreme People’s Court alleging the violation of technical trade secrets. The court accepted the lawsuit on October 9, 2025. Plaintiffs are Yunnan Metallurgical Xinli Titanium and Ti-Cons. Defendants are Liu XXX, Jiang XXX, Zhao XXX and Hebei Yanshan Iron and Steel Group Co., Ltd. The amount claimed is 1,300,500,000 RMB.

On December 16, 2025, the Yunnan Provincial Supreme Court ruled on the defendant’s request in the civil case (see above) to transfer the venue to Hebei. The request was denied.

On February 26, 2026, Liu XXX, Jiang XXX, Zhao XXX and Yangang filed an appeal with the Supreme Court of the People’s Republic of China in Beijing against the ruling of the Supreme Court of Yunnan Province regarding the transfer of the venue in the civil case to Hebei.

On April 20, 2026, the Yunnan Provincial Supreme People’s Court issued its second-instance ruling regarding the first-instance convictions of Liu XXX, Jiang XXX, and Zhao XXX. The verdict was fully upheld, the sentences were not changed, and the ruling is final.

On April 23, 2026, the Supreme Court of the People’s Republic of China issued its ruling regarding the appeal of Liu XXX, Jiang XXX, Zhao XXX, and Hebei Yanshan against the Yunnan Provincial Supreme Court’s ruling concerning the transfer of the venue for the civil case to Hebei. The ruling was upheld, and the venue remains unchanged.

On October 7, the Chuxiong Intermediate People’s Court delivered the following verdicts:

Defendant Liu XXX was found guilty of violating trade secrets and sentenced to seven years in prison and a fine of 12 million RMB.

Defendant Zhao XXX was convicted of violating trade secrets and sentenced to seven years in prison and a fine of 10 million RMB.

Defendant Jiang XXX was convicted of violating trade secrets and sentenced to six years in prison and a fine of 10 million RMB.

The defendants filed for appeal with the High Court of Yunnan. Verdict is to be expected after Chinese new year 2026.

Ti-Cons is pleased to announce the successful relocation of its office to a new address at Bergisch Gladbacher Str. 1214 in Cologne. This strategic move underscores the company’s ongoing commitment to operational excellence.

The new office in the beautiful city of Cologne exemplifies the company’s dedication to fostering growth and innovation within a dynamic urban landscape. Ti-Cons expresses sincere appreciation for the continued support of its partners, clients, and stakeholders, and looks forward to furthering its success from this modern, well-appointed location.

Ti-Cons and LB Group filed a lawsuit for infringement of technical secrets with the Yunnan Provincial Higher People’s Court, which has accepted the case.

1. Parties

Plaintiff 1: Yunnan Metallurgical Xinli Titanium Co., Ltd.

Plaintiff 2: Ti-Cons Technology Consulting GmbH.

Plaintiff 3: Ti-Cons Weiland und Partner Management Consultants.

Defendant 1: Liu XXX.

Defendant 2: Jiang XXX.

Defendant 3: Zhao XXX.

Defendant 4: Hebei Yanshan Iron and Steel Group Co., Ltd. (hereinafter referred to as “Hebei Yanshan Iron and Steel Group”).

2. Facts of the Case and Grounds for the Action

The infringed technical secrets are the construction and production technology for a large-scale titanium dioxide chloride production line, which the plaintiff, Yunnan Xinli, imported and maintained strict confidentiality measures. From 2007 to 2019, defendants Liu XXX, Jiang XXX, Zhao XXX, and others held important leadership and technical positions at Yunnan Xinli.

Jiang XXX and Zhao XXX joined an affiliated company of Hebei Yangang in the second half of 2019 and provided services related to the planning, design, and construction of their company’s titanium dioxide chloride production line, using the plaintiff’s technical secrets and other information, until the incident occurred.

Because defendants Jiang XXX and Zhao XXX were suspected of colluding with other criminal suspects to infringe the plaintiff’s technical secrets, Yunnan Xinli filed a criminal complaint with the Lufeng City Public Security Bureau in Yunnan Province in 2022. The bureau formally opened the case that year and initiated criminal investigation procedures. On May 15, 2025, the Intermediate People’s Court of Chuxiong Yi Autonomous Prefecture, Yunnan Province, held a trial for the criminal case of Liu XXX, Jiang XXX, and Zhao XXX, who were first brought to trial, for the crime of infringing on trade secrets. [(2024) 云 23 刑初 20 号]. A verdict has yet to be rendered. The plaintiff argues that the defendants’ actions constitute joint infringement of the plaintiff’s rights.

3. Litigation Requests

(1) Order each defendant to immediately stop disclosing, using, or allowing others to use the plaintiff’s technical secrets involved in the case, and the period of cessation of infringement shall last until the date on which the information of the technical secrets involved in the case has become known to the public;

(2) Order each defendant to destroy the carriers containing the plaintiff’s technical secrets involved in the case, including mobile hard disks, USB flash drives, electronic documents, drawings, equipment, production lines, control systems, and other carriers containing the plaintiff’s technical secrets involved in the case, in a manner confirmed by the plaintiff or verifiable by the People’s Court;

(3) Order each defendant to publish a statement in a prominent position in the China Intellectual Property News, China Chemical Industry News, People’s Court News, or other national media designated by the People’s Court, apologizing to the plaintiff for its infringement and eliminating the impact. The specific content of the newspaper announcement shall be determined by the court;

(4) Order each defendant to jointly compensate the plaintiff for economic losses totaling RMB 1,300,500,000 (the amount is tentative, and the final amount will be increased based on the facts of the case investigated by the court);

(5) Order each defendant to jointly compensate the plaintiff for reasonable expenses of RMB 10,000,000 for rights protection;

(6) The court orders that the litigation costs of this case shall be borne by each defendant.

LB Group and Ti-Cons signed on September 1, 2025 the second contract for technical cooperation.

The fields of cooperation are:

• Throughput
• Quality
• Organization
• Environmental protection
• Smart plan

On Jan 6, 2022, Largo Titanio Ltd and Ti-Cons sign Contract for Know-How for FEED (Front End Engineering Design) for a 30,000 t/a sulphate plant.

Lomon Billions and Ti-Cons signed on May 27, 2020 a contract for technical cooperation.

Lomon Billions is the largest producer of TiO2 pigment in China and the third largest producer of TiO2 pigment in the World.

The fields of cooperation are:

• Throughput
• Quality
• Organization
• Environmental protection
• Smart plan

TNG ltd (Perth, Australia) and Ti-Cons GmbH signed on August 5, 2019 a contract for the delivery of the know-how package for the production of TiO₂ pigment for the Mount Peak project of TNG.

The technology will be used in the pigment section of the processing plant which is planned to be located in Darwin, Australia .The pigment plant will use the sulphate route and the planned capacity is 100,000 kt/a.

Ti-Cons will participate in the currently running FEED  study and, after successful financing of the project by TNG, in the subsequent construction, training and commissioning phase.

See as well https://www.tngltd.com.au/

We added a declaration regarding our intellectual properties.

We solemnly declare that the technology we transfer to our customers in the course of our business, whether in whole or in part, is our intellectual property.

Our customers are allowed to use it within the scope of the contract authorization and regulations. Other parties have no right to possess, plagiarize and use our technology, including documents and materials, in any form.

As for the possible illegal sale, possession, plagiarism and use of our technology, documents and materials, we will take the necessary legal means to investigate the legal and economic responsibilities of the relevant persons or parties.

Lomon Billions and Ti-Cons signed on February 28th, 2019 a letter of intent for further cooperation in the area technology transfer and production optimization

We founded the Ti-Cons GmbH registered at the District Court of Cologne with the number HRB 96538.

The GmbH will bundle the activities of Ti-Cons Weiland und Partner Management Consultants and the Dr. Bonath und Partner und Management Consultants in order to deliver even better benefit to our customers.

Note: GmbH is an abbreviation of the German phrase Gesellschaft mit beschränkter Haftung, which means “company with limited liability.” GmbH is the equivalent of “Ltd.” (limited) used in the United Kingdom, and is the most common form of incorporation in Germany.

Ti-Cons Weiland und Partner signed with Australian company TNG Limited (see http://www.tngltd.com.au/) a Binding Heads of Agreement for the supply of a know-how package for a TiO₂ pigment plant.

The raw material for the TiO₂ pigment plant is produced by the TIVAN® process, developed and owned by TNG, which produces, next to TiO₂, high-purity vanadium pentoxide (V₂O₅). The TiVAN® process is described here: http://www.tngltd.com.au/projects/mount_peake_fe_v_ti/tivan.phtml.

Ti-Cons intends to provide a commercial contract for the above-mentioned technology package including engineering, construction/procurement support, training and commissioning.

Ti-Cons took part on April 24-26, 2018 at the „2018 International Titanium Industry Green Manufacturing and Material Conference“.

Ti-Cons made a presentation with the title “Security of the CP process”.

During the 2017 Annual Meeting of China TiO₂ Industry in Chongqing on November 18-20, 2017, Christian Weiland, the managing partner of Ti-Cons, was interviewed by Mr. Albert Li from Industrial Minerals.

Photos of the conference can be viewed here.

The interview can be read here and down here:

1. What does Ti-Cons do?

We are consultants and technology provider for the production of TiO₂ pigment using both the sulphate and the chloride route including the necessary post treatment. We deliver the necessary engineering for construction, train the staff of the customer, do the start-up and provide after sales support.

2. Why did you come to China to attend this TiO₂ meeting in Chongqing?

Ti-Cons has successfully implemented the chloride process (CP) with two Chinese leading companies already, which are Yunnan Xinli and Lomon Billions in the past few years. We attended this meeting to meet TiO₂ producers which are interested in our technological expertise.

3. What do you think of the Chinese TiO₂ industry?

Right now, the Chinese government is not only encouraging CP technology which is more efficient, costs less energy and produces less wastes compared to traditional sulphate TiO₂ technology, but also is conducting severe environmental protection inspection throughout the year and it will get stricter.

In addition, CP technology has always been dominated by competitors outside China, and the Chinese producers are working hard for breakthrough but the status is not satisfactory right now. Now there are only four producers in China using CP technology but their output is very small compared to the sulphate route.

4. What is the position for Ti-Cons in China?

We think now is a good time for Ti-Cons to strengthen our position in China as we are the only successful TiO₂technology provider, at least for CP, and more TiO₂ companies are in talks with us, either needing consulting services or willing to establish a future cooperation.

5. What are the changes in recent years in the TiO₂ industry?

We can really see that environmental inspection had a great impact in the TiO₂ industry in China. In the past, when talking to a producer, we were asked “what is the fee for the technology, is it expensive, we don’t have enough fund, etc” and environmental aspects came afterwards. But now, people will ask us first “how effective can your technology deal with wastes and by-products?”. Now they care more about environmental issues than investment, but of course this is related to the good profits they made since 2016 when TiO₂ price kept rising. Let me note that our technology is state of the art regarding the environment too.

We, the partners of Ti-Cons, have a sad news to share. Dr. Jendro lost his fight against cancer and passed away on August 22, 2017.

Dr. Lailach and Dr. Jendro founded Ti-Cons in 2005 with the vision to offer the knowhow for the production of TiO2-pigment in China and to implement the first high-end CP plant in the PRC. The first projects were knowhow transfers in the area of SP and were very useful for him to understand the country and the local industry. In 2007, Dr. Jendro, C.J. Weiland and Dr. Fan could sign the first contract for the new CP plant, including PT, of Yunnan Xinli. The contract included the delivery of the detail engineering for CP, the basic engineering for PT, training, start-up and after sales support for a 60.000 tpy plant in Lufeng, Yunnan. In 2012, the second contract for the CP plant, including PT as well, was signed with Henan Billions (HB) for their 100.000 tpy plant in Jiaozuo. The scope of the delivery was similar to Xinli. In 2013, the plant of Xinli was successfully started up by Dr. Jendro and his partners. In 2015, the start-up of the plant of HB was completed by Dr. Jendro and his partners and the line is producing since then appreciable amount of product with, for China, unreached quality.

Ti-Cons will honor his memory by dedicating ourselves to continue the work of the “pioneer of CP technology in China”.

In a process, initiated by Dr. Jendro in 2016, Ti-Cons will strengthen their organization and their technology even more to meet the increasing demand of the world market.

Ti-Cons took part on April 20-22, 2017 at the „2017 International Titanium Industry Green Manufacturing and Material Conference“.

Ti-Cons was made a presentation with the title “Implementation of German CP Technology in China”.

Ti-Cons is pleased to announce the signature of a cooperation agreement with China ENFI Engineering Company, Beijing.

ENFI and Ti-Cons have successfully worked together for several years now. ENFI was part of both of our chloride projects and extended their expertise and responsibility in CP over the years. The cooperation which both sides committed to now was the next step to do.

The two parties will cooperate all over the world and exclusively for the Chinese market.

The field of cooperation includes the chloride process (CP) and the related post-treatment (PT) process. The cooperation can also include the sulphate process (SP).

The two parties will develop a common marketing and combine their products and services to satisfy the requirements of the market.

ENFI and Ti-Cons are sole project partners to each other for cooperation in China regarding the implementation of Ti-Cons’s CP technology for new lines. Project cooperation of new lines includes technology package, engineering, equipment supply, construction, training and commissioning.