LB Group(SZ:002601) Shang Hai Zheng Quan Bao·2025-11-07 00:42Core Viewpoint - The recent court ruling regarding the commercial secret infringement case involving Longbai Group's subsidiary, Yunnan Yejin New Titanium Industry Co., Ltd., has significant implications for the company and the titanium dioxide industry as a whole [1][3]. Group 1: Legal Proceedings and Outcomes - The court sentenced three former employees for stealing proprietary technology related to titanium dioxide production, with prison terms ranging from 6 to 7 years and a total fine of 32 million yuan [3][8]. - The technology in question is considered a critical "bottleneck" technology in the titanium dioxide industry, which Longbai Group invested heavily in, totaling 2.717 billion yuan since its introduction in 2007 [4][10]. - The court has initiated civil liability proceedings against responsible parties, with the Yunnan Provincial High People's Court already accepting the case [9]. Group 2: Financial Impact on Longbai Group - Longbai Group reported fluctuations in its financial performance, with net profits of 4.676 billion yuan, 3.419 billion yuan, 3.226 billion yuan, and 2.169 billion yuan from 2021 to 2024 [10]. - For the first three quarters of the current year, the company achieved a revenue of 19.436 billion yuan, a year-on-year decrease of 6.86%, and a net profit of 1.674 billion yuan, down 34.68% year-on-year [10]. - The company has indicated that the criminal ruling has not yet taken effect, and the final judgment and subsequent execution results remain uncertain, potentially affecting current and future profits [10]. Group 3: Market Position - Longbai Group is recognized as a leading enterprise in the titanium dioxide industry, with its main products including titanium dioxide, sponge titanium, zirconium products, and lithium battery materials [10][11]. - As of November 6, the company's stock price was 17.90 yuan per share, with a total market capitalization of 42.7 billion yuan [11].