Fufeng Group (00546) wins lawsuit against Xinjiang Meihua, Meihua Biotech and Zhang Wei for infringing trade secrets in xanthan gum production

Zhitong Finance App News, Fufeng Group (00546) announced that in connection with the legal lawsuit brought by Shandong Fufeng Fermentation Co., Ltd. (plaintiff), a wholly-owned subsidiary of the company, against Xinjiang Meihua Amino Acid Co., Ltd. (Xinjiang Meihua, Meihua Biotechnology Group Co., Ltd., Meihua Biology Co., Ltd.) and Zhang Wei (Xinjiang Meihua, Meihua Biology, and Zhang Wei collectively referred to as the “defendant”), the plaintiff claimed that after leaving the plaintiff's office in early 2012, Zhang Wei leaked the knowledge he had mastered in the Xinjiang commercial production technology of xanthan gum during his time at the plaintiff's office Plum blossoms and plum blossom creatures. In 2014, the plaintiff filed a civil lawsuit against the defendant for infringing trade secrets in the production of xanthan gum.

After many court hearings, the Supreme People's Court handed down the following final ruling on January 9, 2024: the defendant must stop infringing on the plaintiff's trade secrets of xanthan gum production, including not disclosing, using and allowing others to use the xanthan gum production trade secrets involved in the case; and ordered the defendant to pay compensation of RMB 15 million for financial losses within 10 days from the date of the court's final judgment (that is, January 9, 2024).

The Supreme People's Court's ruling has entered into force. The plaintiff is considering applying to enforce the court order. The plaintiff is seeking legal advice from its Chinese legal counsel to take appropriate action.