Photo: Hifichem
Chinese chemical company Anshan Hifichem Co Ltd has filed a defamation lawsuit against rival Cinic Chemicals Shanghai Co Ltd, seeking 53.3 million yuan in damages, according to a stock exchange filing.
The lawsuit, filed in a Chinese court, comes after Cinic pursued, but has so far failed to secure, a 400-million-yuan trade secret claim against Hifichem over pigment production technology.
Hifichem, in its filing on December 24, accused Cinic and its legal representative Lu XX of damaging its reputation during the legal battle and described Cinic's core lawsuit as a "malicious" abuse of legal process.
The conflict dates back to December 2022, when Cinic first sued Hifichem at the Shanghai High People's Court, alleging theft of trade secrets related to producing certain high-performance organic pigments. It initially sought 200.47 million yuan.
According to Hifichem's filing, Cinic later withdrew that suit and refiled it in the Shanghai Intellectual Property Court in January 2024 without notifying Hifichem. The claimed damages in that suit fluctuated, starting at 470,000 yuan in mid-2024 before being raised to 200 million yuan, triggering a transfer back to the Shanghai High People’s Court. In December, Cinic raised its claim to the current 400 million yuan. The case is pending trial.
Hifichem attempted to have the claims dismissed by filing a "non-infringement" lawsuit in the Shenyang Intermediate People's Court, but that effort was blocked on jurisdictional grounds.
In a detailed rebuttal, Hifichem argued that the technologies in question are "publicly known industry knowledge" that have been commercially used for decades. It also made serious counter-allegations, asserting that the products Cinic associates with its trade secrets were "illegally produced" without required environmental permits.
"Profits derived from illegal production are not protected by law," Hifichem stated in the filing, arguing that Cinic's high valuation of the disputed technology, reportedly up to 150 million yuan, therefore lacks a legal basis.
Hifichem's defamation lawsuit demands that Cinic and Lu XX issue a public apology in major Chinese industry and financial newspapers for 15 consecutive days, alongside the financial compensation.
Anshan Hifichem Co Ltd is a Shenzhen-listed specialty chemical producer known for its high-performance organic pigments, with applications ranging from automotive coatings to plastics. The company has positioned itself as a key domestic player in the mid-to-high-end pigment market.
Cinic Chemicals is a global leader in high-performance pigments, particularly as the world's top producer of DPP and Anthraquinone pigments. It operates advanced manufacturing facilities in Shanghai and Taixing, supplying products for coatings, plastics, and specialty inks worldwide.
